[Federal Register Volume 79, Number 248 (Monday, December 29, 2014)]
[Rules and Regulations]
[Pages 77852-77854]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2014-30256]


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DEPARTMENT OF THE TREASURY

Office of the Comptroller of the Currency

12 CFR Parts 25 and 195

[Docket ID OCC-2014-0026]
RIN 1557-AD89

FEDERAL RESERVE SYSTEM

12 CFR Part 228

[Regulation BB; Docket No. R-1504]
RIN 7100-AE25

FEDERAL DEPOSIT INSURANCE CORPORATION

12 CFR Part 345

RIN 3064-AD90


Community Reinvestment Act Regulations

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

ACTION: Joint final rule; technical amendment.

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SUMMARY: The OCC, the Board, and the FDIC (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.

DATES: Effective January 1, 2015.

FOR FURTHER INFORMATION CONTACT:  OCC: Margaret Hesse, Senior Counsel, 
Community and Consumer Law Division, (202) 649-6350; Rima Kundnani, 
Attorney, Legislative and Regulatory Activities Division, (202) 649-
5490, for persons who are deaf or hard of hearing, TTY, (202) 649-5597; 
or Bobbie K. Kennedy, Bank Examiner, Compliance Policy Division, (202) 
649-5470, Office of the Comptroller of the Currency, 400 7th Street 
SW., Washington, DC 20219.
    Board: Amal S. Patel, Senior Supervisory Consumer Financial 
Services Analyst, (202) 912-7879; or Nikita Pastor, Counsel, (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: Patience R. Singleton, Senior Policy Analyst, Supervisory 
Policy Branch, Division of Depositor and Consumer Protection, (202) 
898-6859; or Richard M. Schwartz, Counsel, Legal Division, (202) 898-
7424, Federal Deposit Insurance Corporation, 550 17th Street NW., 
Washington, DC 20429.

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 banks and savings 
associations 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 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), 195.12(u)(2), 228.12(u)(2), and 345.12(u)(2). This 
adjustment formula was first adopted for CRA purposes by the OCC, the 
Board, and the FDIC on August 2, 2005, effective September 1, 2005. 70 
FR 44256 (Aug. 2, 2005). As explained in the Supplementary Information 
section of the Agencies' 2005 proposed rule, the Consumer Price Index 
also is used in other federal lending regulations, such as the Home 
Mortgage Disclosure Act. 70 FR 12148 (Mar. 11, 2005). See 12 U.S.C. 
2808; 12 CFR 203.2(e)(1)(i) (2006). On March 22, 2007, and effective 
July 1, 2007, the former Office of Thrift Supervision (OTS), the agency 
then responsible for regulating savings associations, adopted an annual 
adjustment formula consistent with that of the other federal banking 
agencies in its CRA rule previously set forth at 12 CFR 563e. 72 FR 
13429 (Mar. 22, 2007). Pursuant to the Dodd-Frank Wall Street Reform 
and Consumer Protection Act (Dodd-Frank Act),\1\ and effective July 21, 
2011, CRA rulemaking authority for federal and state savings 
associations was transferred from the OTS to the OCC, and the OCC 
subsequently republished, at 12 CFR 195, the CRA regulations applicable 
to those institutions.\2\ In addition, the Dodd-Frank Act transferred 
responsibility for

[[Page 77853]]

supervision of savings and loan holding companies and their non-
depository subsidiaries from the OTS to the Board, and the Board 
subsequently amended its CRA regulation to reflect this transfer of 
supervision authority.\3\
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    \1\ Public Law 111-203, 124 Stat. 1376 (2010).
    \2\ See OCC interim final rule, 76 FR 48950 (Aug. 9, 2011).
    \3\ See Board interim final rule, 76 FR 56508 (Sept. 13, 2011).
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    The threshold for small banks and small savings associations was 
revised most recently on December 30, 2013, and became effective 
January 1, 2014 (78 FR 79283 (Dec. 30, 2013)). The current CRA 
regulations provide that banks and savings associations that, as of 
December 31 of either of the prior two calendar years, had assets of 
less than $1.202 billion are small banks or small savings associations. 
Small banks and small savings associations with assets of at least $300 
million as of December 31 of both of the prior two calendar years and 
less than $1.202 billion as of December 31 of either of the prior two 
calendar years are intermediate small banks or intermediate small 
savings associations. 12 CFR 25.12(u)(1), 195.12(u)(1), 228.12(u)(1), 
and 345.12(u)(1). This joint final rule further revises these 
thresholds.
    During the period ending November 2014, the CPIW increased by 1.60 
percent. As a result, the Agencies are revising 12 CFR 25.12(u)(1), 
195.12(u)(1), 228.12(u)(1), and 345.12(u)(1) to make this annual 
adjustment. Beginning January 1, 2015, banks and savings associations 
that, as of December 31 of either of the prior two calendar years, had 
assets of less than $1.221 billion are small banks or small savings 
associations. Small banks and small savings associations with assets of 
at least $305 million as of December 31 of both of the prior two 
calendar years and less than $1.221 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 Web site of the 
Federal Financial Institutions Examination Council at http://www.ffiec.gov/cra/.

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 respective 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), 195.12(u)(1), 228.12(u)(1), and 
345.12(u)(1) are amended by adjusting the asset-size thresholds as 
provided for in Sec. Sec.  25.12(u)(2), 195.12(u)(2), 228.12(u)(2), and 
345.12(u)(2).
    Accordingly, because 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.
    The effective date of this joint final rule is January 1, 2015. 
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. Because 
this rule adjusts asset-size thresholds consistent with the procedural 
requirements of the CRA rules, the Agencies conclude that it is not 
substantive within the meaning of the APA's delayed effective date 
provision. Moreover, the Agencies find that there is good cause for 
dispensing with the delayed effective date requirement, even if it 
applied, because their current rules already provide notice that the 
small and intermediate small asset-size thresholds will be adjusted as 
of December 31 based on twelve-month data as of the end of November 
each year.

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 general 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

    In accordance with the Paperwork Reduction Act of 1995 (44 U.S.C. 
3506; 5 CFR 1320), the Agencies reviewed this final rule. No 
collections of information pursuant to the Paperwork Reduction Act are 
contained in the final rule.

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 the OCC to prepare a budgetary 
impact statement before promulgating any final rule for which a general 
notice of proposed rulemaking was published. As discussed above, the 
OCC has determined that the publication of a general notice of proposed 
rulemaking is unnecessary. Accordingly, this joint final rule is not 
subject to section 202 of the Unfunded Mandates Act.

List of Subjects

12 CFR Part 25

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

12 CFR Part 195

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

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.

Department of the Treasury

Office of the Comptroller of the Currency

12 CFR Chapter I

    For the reasons discussed in the SUPPLEMENTARY INFORMATION section, 
12 CFR parts 25 and 195 are 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 2908, and 3101 
through 3111.


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


Sec.  25.12  Definitions.

* * * * *

[[Page 77854]]

    (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 $1.221 billion. Intermediate small bank means a small bank 
with assets of at least $305 million as of December 31 of both of the 
prior two calendar years and less than $1.221 billion as of December 31 
of either of the prior two calendar years.
* * * * *

PART 195--COMMUNITY REINVESTMENT

0
3. The authority citation for part 195 continues to read as follows:

    Authority:  12 U.S.C. 1462a, 1463, 1464, 1814, 1816, 1828(c), 
2901 through 2908, and 5412(b)(2)(B).


0
4. Revise Sec.  195.12(u)(1) to read as follows:


Sec.  195.12  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 $1.221 
billion. Intermediate small savings association means a small savings 
association with assets of at least $305 million as of December 31 of 
both of the prior two calendar years and less than $1.221 billion as of 
December 31 of either of the prior two calendar years.
* * * * *

Federal Reserve System

12 CFR Chapter II

    For the reasons set forth in the Supplementary Information section, 
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
5. 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
6. 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 $1.221 billion. Intermediate small bank means a small bank 
with assets of at least $305 million as of December 31 of both of the 
prior two calendar years and less than $1.221 billion as of December 31 
of either of the prior two calendar years.
* * * * *

Federal Deposit Insurance Corporation

12 CFR Chapter III

Authority and Issuance

    For the reasons set forth in the Supplementary Information section, 
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
7. The authority citation for part 345 continues to read as follows:

    Authority:  12 U.S.C. 1814-1817, 1819-1820, 1828, 1831u and 
2901-2908, 3103-3104, and 3108(a).


0
8. 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 $1.221 billion. Intermediate small bank means a small bank 
with assets of at least $305 million as of December 31 of both of the 
prior two calendar years and less than $1.221 billion as of December 31 
of either of the prior two calendar years.
* * * * *

    Dated: December 17, 2014.
Amy S. Friend,
Senior Deputy Comptroller and Chief Counsel.

    By order of the Board of Governors of the Federal Reserve 
System, acting through the Secretary of the Board under delegated 
authority, December 18, 2014.
Robert deV. Frierson,
Secretary of the Board.

    By order of the Board of Directors.

    Dated at Washington, DC, this 18th day of December, 2014.

Federal Deposit Insurance Corporation.
Robert E. Feldman,
Executive Secretary.
[FR Doc. 2014-30256 Filed 12-24-14; 8:45 am]
BILLING CODE 4810-33-P; 6210-01-P; 6714-01-P