[Federal Register Volume 82, Number 11 (Wednesday, January 18, 2017)]
[Rules and Regulations]
[Pages 5354-5356]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2016-31928]


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DEPARTMENT OF THE TREASURY

Office of the Comptroller of the Currency

12 CFR Parts 25 and 195

[Docket ID OCC-2016-0031]
RIN 1557-AE11

FEDERAL RESERVE SYSTEM

12 CFR Part 228

[Regulation BB; Docket No. R-1554]
RIN 7100-AE64

FEDERAL DEPOSIT INSURANCE CORPORATION

12 CFR Part 345

RIN 3064-AD90


Community Reinvestment Act Regulations

AGENCY: 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 for Urban Wage 
Earners and Clerical Workers (CPI-W). The FDIC is also amending its CRA 
Notice requirements to reflect two technical changes concerning the 
manner in which the agency will receive public comments considered in 
the CRA examination process.

DATES: Effective January 18, 2017.

FOR FURTHER INFORMATION CONTACT: 
    OCC: Emily Boyes, Attorney, Community and Consumer Law Division, 
(202) 649-6350; Marta E. Stewart-Bates, 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, Senior 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 
CRA 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 CPI-W, not seasonally adjusted, for each 12-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). The Agencies noted that the CPI-W is also used 
in connection with other federal laws, such as the Home Mortgage 
Disclosure Act. See 12 U.S.C. 2808; 12 CFR 1003.2. On March 22, 2007, 
and effective July 1, 2007, the former Office of Thrift Supervision, 
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\ 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 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 supervisory 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 in December 2015 and became effective January 1, 
2016. 80 FR 81162 (Dec. 29, 2015). 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 $1.216 billion 
are small banks or small savings associations. Small banks and small 
savings associations with assets of at least $304 million as of 
December 31 of both of the prior two calendar years and less than 
$1.216 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 revises these thresholds.
    During the 12-month period ending November 2016, the CPI-W 
increased by 0.84 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 18, 2017, banks and savings 
associations that, as of December 31 of either of the prior two 
calendar years, had assets of less than $1.226 billion are small banks 
or small savings associations. Small banks and small savings 
associations with assets of at least $307 million as of December 31 of 
both of the prior two calendar years and less than $1.226 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

[[Page 5355]]

current and historical asset-size thresholds on the Web site of the 
Federal Financial Institutions Examination Council at http://www.ffiec.gov/cra/.
    The FDIC is also amending its CRA Notice requirements located at 
Appendix B to Part 345. The current appendix states that Regional 
Managers are the proper agency officials responsible for both making 
available, upon request, lists of the banks scheduled for CRA 
examination in any particular quarter and receiving any public comment 
regarding the CRA performance of any of those banks. Since that 
language was published, a technical change was made to the responsible 
official's title from Regional Manager to Regional Director. In 
addition, since the original notice requirements were written, there 
has been the creation of a Web page to receive public comments 
electronically. The amendments made in this notice reflect those two 
changes. The associated changes to the CRA notice requirements will 
compel covered institutions to print and post the revised CRA notices 
in their main and branch offices.

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). As a result, Sec. Sec.  25.12(u)(1), 195.12(u)(1), 
228.12(u)(1), and 345.12(u)(1) of the Agencies' respective CRA 
regulations 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, the Agencies' rules provide no discretion as to the 
computation or timing of the revisions to the asset-size criteria. 
Furthermore, revising the FDIC's CRA Notice requirements to reflect the 
two referenced changes to the manner in which the agency will receive 
public comments considered in the CRA examination process is a 
technical and non-substantive revision. For these reasons, 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 18, 2017. 
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 12-month data as of the end of November each 
year.

Regulatory Flexibility Act

    The Regulatory Flexibility Act (RFA) does not apply to a rulemaking 
when 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

    The Paperwork Reduction Act of 1995 (44 U.S.C. 3501-3521) states 
that no agency may conduct or sponsor, nor is the respondent required 
to respond to, an information collection unless it displays a currently 
valid Office of Management and Budget (OMB) control number. The 
Agencies have determined that this final rule does not create any new, 
or revise any existing, collections of information pursuant to the 
Paperwork Reduction Act. Consequently, no information collection 
request will be submitted to the OMB for review.

Unfunded Mandates Reform Act of 1995

    Section 202 of the Unfunded Mandates Reform Act of 1995 (Unfunded 
Mandates Act), 2 U.S.C. 1532, 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 preamble, the Office of 
Comptroller of the Currency amends 12 CFR parts 25 and 195, the Board 
of Governors of the Federal Reserve System amends part 228 of chapter 
II, and Board of Directors of the Federal Deposit Insurance Corporation 
amends part 345 of chapter III of title 12 of the Code of Federal 
Regulations 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. Section 25.12 is amended by revising paragraph (u)(1) to read as 
follows:


Sec.  25.12  Definitions.

* * * * *
    (u) * * *

[[Page 5356]]

    (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 $1.226 
billion. Intermediate small bank means a small bank with assets of at 
least $307 million as of December 31 of both of the prior two calendar 
years and less than $1.226 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. Section 195.12 is amended by revising paragraph (u)(1) to read as 
follows:


Sec.  195.12  Definitions.

* * * * *
    (u) * * *
    (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 $1.226 billion. Intermediate small 
savings association means a small savings association with assets of at 
least $307 million as of December 31 of both of the prior two calendar 
years and less than $1.226 billion as of December 31 of either of the 
prior two calendar years.
* * * * *

Federal Reserve System

12 CFR Chapter II

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. Section 228.12 is amended by revising paragraph Sec.  228.12(u)(1).
    The revision is set forth below:


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 $1.226 billion. Intermediate small bank means a small bank 
with assets of at least $307 million as of December 31 of both of the 
prior two calendar years and less than $1.226 billion as of December 31 
of either of the prior two calendar years.

Federal Deposit Insurance Corporation

12 CFR Chapter III

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. Section 345.12 is amended by revising paragraph (u)(1) to read as 
follows:


Sec.  345.12  Definitions.

* * * * *
    (u) * * *
    (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 $1.226 
billion. Intermediate small bank means a small bank with assets of at 
least $307 million as of December 31 of both of the prior two calendar 
years and less than $1.226 billion as of December 31 of either of the 
prior two calendar years.
* * * * *

0
9. Appendix B to part 345 is amended by revising the fourth and fifth 
paragraphs of section (a) and the fifth and sixth paragraphs of section 
(b) to read as follows:

Appendix B to Part 345--CRA Notice

    (a) * *

Community Reinvestment Act Notice

* * * * *
    At least 30 days before the beginning of each quarter, the FDIC 
publishes a nationwide list of the banks that are scheduled for CRA 
examination in that quarter. This list is available from the 
Regional Director, FDIC (address). You may send written comments 
about our performance in helping to meet community credit needs to 
(name and address of official at bank) and FDIC Regional Director. 
You may also submit comments electronically through the FDIC's Web 
site at www.fdic.gov/regulations/cra. Your letter, together with any 
response by us, will be considered by the FDIC in evaluating our CRA 
performance and may be made public.
    You may ask to look at any comments received by the FDIC 
Regional Director. You may also request from the FDIC Regional 
Director an announcement of our applications covered by the CRA 
filed with the FDIC. We are an affiliate of (name of holding 
company), a bank holding company. You may request from the (title of 
responsible official), Federal Reserve Bank of _______(address) an 
announcement of applications covered by the CRA filed by bank 
holding companies.
* * * * *
    (b) * * *

Community Reinvestment Act Notice

* * * * *
    At least 30 days before the beginning of each quarter, the FDIC 
publishes a nationwide list of the banks that are scheduled for CRA 
examination in that quarter. This list is available from the 
Regional Director, FDIC (address). You may send written comments 
about our performance in helping to meet community credit needs to 
(name and address of official at bank) and the FDIC Regional 
Director. You may also submit comments electronically through the 
FDIC's Web site at www.fdic.gov/regulations/cra. Your letter, 
together with any response by us, will be considered by the FDIC in 
evaluating our CRA performance and may be made public.
    You may ask to look at any comments received by the FDIC 
Regional Director. You may also request from the FDIC Regional 
Director an announcement of our applications covered by the CRA 
filed with the FDIC. We are an affiliate of (name of holding 
company), a bank holding company. You may request from the (title of 
responsible official), Federal Reserve Bank of _______(address) an 
announcement of applications covered by the CRA filed by bank 
holding companies.
* * * * *

    Dated: December 16, 2016.
Amy S. Friend,
Senior Deputy Comptroller and Chief Counsel.

    By order of the Board of Governors of the Federal Reserve 
System, December 28, 2016.

Robert deV. Frierson,
Secretary of the Board.
    By order of the Board of Directors.

    Dated at Washington, DC, this 16th day of December, 2016.

Federal Deposit Insurance Corporation.
Robert E. Feldman,
Executive Secretary.
[FR Doc. 2016-31928 Filed 1-17-17; 8:45 am]
 BILLING CODE 4810-33-P; 6210-01-P; 6714-01-P