[Federal Register Volume 86, Number 238 (Wednesday, December 15, 2021)]
[Rules and Regulations]
[Pages 71328-71354]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2021-27171]



[[Page 71327]]

Vol. 86

Wednesday,

No. 238

December 15, 2021

Part III





 Department of the Treasury





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Office of the Comptroller of the Currency





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12 CFR Part 25





Community Reinvestment Act Regulations; Final Rule

  Federal Register / Vol. 86 , No. 238 / Wednesday, December 15, 2021 / 
Rules and Regulations  

[[Page 71328]]


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DEPARTMENT OF THE TREASURY

Office of the Comptroller of the Currency

12 CFR Part 25

[Docket No. OCC-2021-0014]
RIN 1557-AF12


Community Reinvestment Act Regulations

AGENCY: Office of the Comptroller of the Currency, Treasury.

ACTION: Final rule.

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SUMMARY: The Comptroller of the Currency is adopting a final Community 
Reinvestment Act (CRA) rule that is based largely on the 1995 CRA 
rules, as revised, that were issued by the Office of the Comptroller of 
the Currency (OCC), Board of Governors of the Federal Reserve System 
(Board), and Federal Deposit Insurance Corporation (FDIC). This final 
rule applies to national banks and savings associations. This action 
rescinds the CRA final rule published by the OCC on June 5, 2020, and 
facilitates the OCC's planned future issuance of updated interagency 
CRA rules with the Board and FDIC.

DATES: This final rule is effective on January 1, 2022. The compliance 
date for Sec. Sec.  25.43 and 25.44 is April 1, 2022. The compliance 
date for the remainder of the rule is January 1, 2022.

FOR FURTHER INFORMATION CONTACT: Emily Boyes, Counsel, Karen McSweeney, 
Special Counsel, Heidi Thomas, Special Counsel, or Kevin Behne, Senior 
Attorney, Chief Counsel's Office, (202) 649-5490; or Vonda Eanes, 
Director for CRA and Fair Lending Policy, or Karen Bellesi, Director 
for Community Development, Bank Supervision Policy, (202) 649-5470, 
Office of the Comptroller of the Currency, 400 7th Street SW, 
Washington, DC 20219.

SUPPLEMENTARY INFORMATION:

I. Background

    Congress enacted the Community Reinvestment Act (CRA) \1\ in 1977 
to encourage insured depository institutions (IDI) \2\ to help meet the 
credit needs of their entire communities, including low- and moderate-
income (LMI) neighborhoods, consistent with the safe and sound 
operation of the IDIs.\3\ Specifically, Congress found that ``(1) 
regulated financial institutions are required by law to demonstrate 
that their deposit facilities serve the convenience and needs of the 
communities in which they are chartered to do business; (2) the 
convenience and needs of communities include the need for credit 
services as well as deposit services; and (3) regulated financial 
institutions have continuing and affirmative obligation[s] to help meet 
the credit needs of the local communities in which they are 
chartered.'' \4\
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    \1\ Public Law 95-128, 91 Stat. 1147 (1977) (codified at 12 
U.S.C. 2901 et seq. (as amended)).
    \2\ The CRA uses the term ``regulated financial institution,'' 
which it defines to mean an ``insured depository institution'' as 
defined in 12 U.S.C. 1813(c)(2). See 12 U.S.C. 2902(2).
    \3\ 12 U.S.C. 2903(a)(1). Congress enacted the CRA to promote 
access to credit by encouraging IDIs to serve their entire 
communities. During this period, Congress also enacted fair lending 
laws to address fairness and access to housing and credit. For 
example, in 1968, Congress passed a law that later became known as 
the Fair Housing Act to prohibit discrimination in renting or buying 
a home. See 42 U.S.C. 3601 et seq. (as amended). In 1974, Congress 
passed the Equal Credit Opportunity Act to prohibit creditors from 
discriminating against an applicant on the basis of race, color, 
religion, national origin, sex, marital status, or age. See 15 
U.S.C. 1691 et seq. (as amended). These fair lending laws provide a 
legal basis for prohibiting discriminatory lending practices, such 
as redlining. See Interagency Fair Lending Examination Procedures, 
p. iv (Aug. 2009), available at https://www.ffiec.gov/PDF/fairlend.pdf.
    \4\ 12 U.S.C. 2901(a).
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    The Office of the Comptroller of the Currency (OCC or Agency),\5\ 
Board of Governors of the Federal Reserve System (Board), and Federal 
Deposit Insurance Corporation (FDIC) (collectively, Agencies),\6\ along 
with the Federal Home Loan Bank Board, first issued rules to implement 
the CRA in 1978.\7\ The Agencies, along with the Office of Thrift 
Supervision (OTS), significantly revised and clarified the CRA rules in 
1995 (1995 Rules).\8\ On September 5, 2018, the OCC published an 
Advance Notice of Proposed Rulemaking (ANPR) as part of its renewed 
efforts to update the CRA regulatory framework.\9\ On January 9, 2020, 
the OCC and FDIC published a joint CRA Notice of Proposed 
Rulemaking,\10\ and on June 5, 2020, the OCC adopted the rule in final 
form (June 2020 Rule).\11\ The June 2020 Rule applied to national 
banks, Federal savings associations, and State savings associations 
(collectively, banks).\12\
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    \5\ The OCC is the primary regulator for national banks and 
Federal savings associations.
    \6\ In addition to the Agencies, Congress also charged the 
Office of Thrift Supervision (OTS) and its predecessor agency, the 
Federal Home Loan Bank Board, with implementing the CRA. The OTS had 
CRA rulemaking and examination authority for all savings 
associations. The OTS's rulemaking authority for CRA transferred to 
the OCC in Title III of the Dodd-Frank Wall Street Reform and 
Consumer Protection Act, Public Law 111-203, 124 Stat. 1376, 1522 
(2010) (Dodd-Frank Act). See also 12 U.S.C. 2905. With respect to 
CRA examination authority, the OCC examines Federal savings 
associations, and the FDIC examines State savings associations. See 
Sec. 312(b) of the Dodd-Frank Act.
    \7\ 43 FR 47144 (Oct. 12, 1978).
    \8\ 60 FR 22156 (May 4, 1995). As used herein, the term ``1995 
Rules'' refers to the regulatory framework adopted by the Agencies 
and the OTS in 1995 and any revisions the Agencies and OTS made to 
that regulatory framework (e.g., 70 FR 44256 (Aug. 2, 2005) and 75 
FR 61035 (Oct. 4, 2010)), except for the changes made by the OCC in 
the June 2020 Rule. The 1995 Rules were codified in 12 CFR parts 25, 
563e (recodified as 195), 228, and 345.
    \9\ The OCC worked with the Board and FDIC on this ANPR. 83 FR 
45053.
    \10\ 85 FR 1204.
    \11\ 85 FR 34734.
    \12\ As used herein, the term ``bank'' or ``banks'' also 
includes uninsured Federal branches that result from an acquisition 
described in section 5(a)(8) of the International Banking Act of 
1978. 12 U.S.C. 3103(a)(8).
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    The June 2020 Rule took effect October 1, 2020, although several of 
its more material components had compliance dates of either January 1, 
2023, or January 1, 2024.\13\ To implement certain provisions of the 
June 2020 Rule with a compliance date of January 1, 2023, the OCC 
published a Notice of Proposed Rulemaking on December 4, 2020, 
(December 2020 NPR), which proposed an approach to determine the 
benchmarks, thresholds, and minimums in the June 2020 Rule's 
performance standards.\14\ In connection with the December 2020 NPR, 
the OCC also published a CRA information collection survey (Information 
Collection) \15\ to obtain the data necessary to calibrate the June 
2020 Rule's performance standards.
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    \13\ 12 CFR 25.01(c)(4).
    \14\ 85 FR 78258.
    \15\ 85 FR 81270 (Dec. 15, 2020).
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    On May 18, 2021, the OCC announced that it was reconsidering the 
June 2020 Rule.\16\ At the same time, the OCC announced that it did not 
plan to finalize the December 2020 NPR and was discontinuing the 
Information Collection.\17\ Collectively, these actions have enabled an 
orderly reconsideration of the June 2020 Rule and provided banks with 
the flexibility to deploy resources in response to the COVID-19 
pandemic.
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    \16\ See OCC Bulletin 2021-24, Community Reinvestment Act: 
Implementation of the June 2020 Final Rule, available at https://www.occ.gov/news-issuances/bulletins/2021/bulletin-2021-24.html.
    \17\ Id.
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    Although the OCC issued the June 2020 Rule independently, the 
Agencies' joint CRA regulatory reform efforts have spanned the past 
decade.\18\ In 2018, the

[[Page 71329]]

Agencies engaged with stakeholders, including civil rights 
organizations, community groups, members of Congress, academics, and 
IDIs, to obtain their perspectives and feedback on the CRA and 
potential improvements to the CRA regulatory framework. Separately, the 
Board explored ways to modernize the CRA regulatory framework to 
address changes in the banking industry, which culminated with the 
Board's publication of an ANPR on October 19, 2020 (Board ANPR).\19\
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    \18\ For example, in 2014, pursuant to the Economic Growth and 
Regulatory Paperwork Reduction Act of 1996 (EGRPRA), the Agencies 
began a decennial review of all of their rules, with input from the 
public, to identify outdated, unnecessary, or unduly burdensome 
rules and to consider how to reduce regulatory burden on IDIs, while 
at the same time ensuring the safety and soundness of these 
institutions and the financial system. Public Law 104-208, 110 Stat. 
3009 (1996) (codified at 12 U.S.C. 3311). In 2017, the Agencies 
issued a report to Congress that included a summary of the public 
comments and recommendations received during the EGRPRA review, 
including those that addressed the CRA regulatory framework. See 
Federal Financial Institutions Examination Council, Joint Report to 
Congress. Economic Growth and Regulatory Paperwork Reduction Act, 
pp. 41-48 (Mar. 3, 2017), available at https://www.ffiec.gov/pdf/2017_FFIEC_EGRPRA_Joint-Report_to_Congress.pdf.
    \19\ 85 FR 66410.
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    Throughout all of the Agencies' CRA modernization efforts, 
stakeholders have repeatedly stressed the importance of the Agencies 
issuing a single set of CRA rules applicable to all IDIs. On July 20, 
2021, after considering (1) the disproportionate impacts of the 
pandemic on LMI communities, (2) the comments provided on the Board 
ANPR, and (3) the OCC's experience with implementation of the June 2020 
Rule, the OCC announced it would propose to rescind the June 2020 
Rule.\20\ On the same day, the Agencies announced that they are working 
together to strengthen and modernize the rules implementing the 
CRA.\21\ This final rule is an important step in this interagency 
process because it reestablishes generally uniform rules that apply to 
all IDIs. Thus, it better positions the Agencies to identify joint 
solutions to the common issues affecting IDIs and the communities they 
serve.
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    \20\ NR 2021-76, OCC Statement on Rescinding its 2020 Community 
Reinvestment Act Rule, available at https://www.occ.gov/news-issuances/news-releases/2021/nr-occ-2021-76.html.
    \21\ NR 2021-77, Interagency Statement on Community Reinvestment 
Act Joint Agency Action, available at https://www.occ.gov/news-issuances/news-releases/2021/nr-ia-2021-77.html.
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II. Proposed Rule

    On September 8, 2021, the OCC issued its proposal to rescind the 
June 2020 Rule and replace it with rules for banks largely based on the 
1995 Rules (Proposal or Proposed Rule).\22\ The Proposal would have 
aligned the OCC's CRA rules with the Board's and FDIC's CRA rules, 
thereby reinstituting the regulatory uniformity for IDIs that existed 
prior to the June 2020 Rule and facilitating the ongoing interagency 
work to modernize the CRA rules. The OCC explained in the Proposal that 
any future interagency CRA rules would replace any final rule(s) the 
Agency issues pursuant to the Proposal.\23\
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    \22\ NR 2021-94, OCC Issues Proposal to Rescind its 2020 
Community Reinvestment Act Rule (Sept. 8, 2021), available at 
https://www.occ.gov/news-issuances/news-releases/2021/nr-occ-2021-94.html. See also 86 FR 52026 (Sept. 17, 2021).
    \23\ 86 FR 52026, 52027.
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    The purpose of the Proposed Rule was to (1) create consistent and 
transparent CRA rules for banks; (2) limit CRA-related burden on banks, 
banks' communities, and examiners; and (3) ensure that the OCC 
continues to encourage banks to help meet the credit needs of their 
entire communities, including LMI neighborhoods, consistent with safe 
and sound operations. A description of the Proposal and the comments 
the OCC received is set forth below.

A. Overview

    The Proposed Rule would have provided different performance tests 
and standards for banks of different sizes, structures, and operations. 
Specifically, the Proposed Rule would have provided an assessment 
method for (1) small banks that would be streamlined and would 
emphasize lending performance; (2) intermediate small banks (ISB) that 
would consider lending and community development (CD) activities (i.e., 
loans, investments, and services); (3) large, retail banks that would 
focus on lending, investment, and service performance; and (4) 
wholesale and limited purpose banks that would be based on CD 
activities. The Proposed Rule also would have given any bank, 
regardless of its size or business strategy, the option for the 
appropriate Federal banking agency to evaluate it under a strategic 
plan.\24\
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    \24\ As noted previously, the OCC has CRA examination authority 
for Federal savings associations, and the FDIC has CRA examination 
authority for State savings associations. See supra note 6. 
References in this final rule to ``appropriate Federal banking 
agency'' are intended to reflect this distinction.
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    Under the proposed performance tests and standards, the appropriate 
Federal banking agency would have considered a bank's performance 
context in assessing its CRA performance. Specifically, the Agency 
would have reviewed (1) demographic and economic data about the bank's 
assessment area(s) and information about its local economic conditions; 
(2) the bank's major business products and strategies; and (3) its 
financial condition, including its capacity and ability to lend or 
invest in its community. The Agency also would have reviewed any 
information a bank chose to provide about lending, investment, and 
service opportunities in its assessment area(s). Performance context 
also would have included any other information the appropriate Federal 
banking agency deemed relevant.
    The Proposed Rule would have required a bank to identify one or 
more assessment area(s) where the appropriate Federal banking agency 
would evaluate its CRA performance. In most cases, the Proposed Rule 
would have required a bank to delineate as its assessment area(s) the 
town, city, county, or other political subdivision or a metropolitan 
statistical area (MSA) where (1) its main office, branch(es), and 
deposit-taking automated teller machines (ATMs) are located and (2) a 
substantial portion of its loans are made. A bank's assessment area(s) 
would not have needed to coincide with the boundaries of one or more 
political subdivisions or MSAs so long as the assessment area(s) was 
one that (1) the bank reasonably could have served; (2) satisfied 
applicable regulatory requirements; (3) did not reflect illegal 
discrimination; and (4) did not arbitrarily exclude LMI geographies 
(i.e., census tracts).
    Under the Proposed Rule, large banks \25\ (and in some 
circumstances, other banks) would have needed to collect, maintain, and 
report certain data related to the proposed performance tests and 
standards. The OCC would have made this data available through 
individual and aggregate disclosure statements. In addition, banks 
would have made CRA-related information available in their public files 
and posted CRA notices in specified locations.
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    \25\ The term ``large banks'' is used in CRA guidance related to 
the 1995 Rules to describe banks that exceed the ISB asset-size 
threshold.
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    For a more detailed description of the 1995 Rules, on which the 
Proposed Rule was largely based, see the Supplemental Information 
sections of the Federal Register documents in which the 1995 Rules were 
issued.\26\
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    \26\ See supra note 8.
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B. Summary of Key Provisions

    The following is a summary of key provisions of the Proposed Rule.
    1. Performance Tests and Standards.\27\
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    \27\ The proposed performance tests and standards applicable to 
a bank would have been based on the bank's asset size. The proposed 
asset-size thresholds for determining whether a bank would be a 
large bank, ISB, or small bank under the Proposed Rule would have 
been adjusted annually and aligned with the current asset-size 
thresholds in the Board's and FDIC's rules. See 12 CFR parts 228 and 
345.

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[[Page 71330]]

    [cir] Small bank \28\ performance standards would have included a 
retail lending test for assessing CRA performance. The small bank 
lending test could also have included consideration of CD loans. 
Qualified investments and CD services could have been considered at the 
bank's option for an ``outstanding'' rating, but only if the bank met 
or exceeded the lending test criteria in the small bank performance 
standards.
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    \28\ Under the Proposed Rule, ``small bank'' means a bank that, 
as of December 31 of either of the prior two calendar years, had 
assets of less than $1.322 billion. ``ISB'' means a small bank with 
assets of at least $330 million as of December 31 of both of the 
prior two calendar years and less than $1.322 billion as of December 
31 of either of the prior two calendar years. See 12 CFR 25.12(u), 
of the Proposed Rule.
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    [cir] The ISB \29\ performance standards would have included an 
assessment of CRA performance under the small bank retail lending test 
and a CD test. Under the ISB CD test, the appropriate Federal banking 
agency would have evaluated all CD activities together.
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    \29\ Id.
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    [cir] Large bank (i.e., banks that exceed the ISB asset-size 
threshold) \30\ lending and service tests would have considered both 
retail and CD activity, while the large bank investment test would have 
focused on qualified investments as defined in the Proposed Rule.
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    \30\ Id.
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    [cir] The appropriate Federal banking agency would have evaluated 
wholesale and limited purpose banks under a CD test that considered 
activities (1) within a bank's broader statewide or regional area(s) 
that includes a bank's assessment area(s) as activities that benefit 
the bank's assessment area(s) and (2) outside of the bank's broader 
statewide or regional area that includes a bank's assessment area(s) if 
the bank had been responsive to needs in its assessment area(s).
    [cir] Any bank could have elected to be evaluated under a strategic 
plan that set out measurable goals for lending, investment, and 
services, as applicable, to achieve a ``satisfactory'' or 
``outstanding'' rating. The bank would have developed its strategic 
plan with community input, and the appropriate Federal banking agency 
would have needed to approve the bank's plan.
    2. Discriminatory or Other Illegal Credit Practices (DOICP). Under 
the Proposal, the appropriate Federal banking agency's evaluation of a 
bank's CRA performance would have been adversely affected by evidence 
of DOICPs, including violations of the Equal Credit Opportunity Act; 
\31\ Fair Housing Act; \32\ Homeownership and Equity Protection Act; 
\33\ the prohibition against unfair or deceptive acts or practices in 
section 5 of the Federal Trade Commission Act; \34\ section 8 of the 
Real Estate Settlement Procedures Act; \35\ and the Truth in Lending 
Act.\36\ The list of discriminatory or other illegal credit practices 
in the Proposal was not exhaustive, and the OCC also would have 
considered credit-related violations of the Military Lending Act (MLA) 
and Servicemembers Civil Relief Act (SCRA) \37\ based on guidance that 
predates the June 2020 Rule.\38\
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    \31\ 15 U.S.C. 1691 et seq.
    \32\ 42 U.S.C. 3601 et seq.
    \33\ Public Law 103-325, 108 Stat. 2190 (1994) (codified at 15 
U.S.C. 1601-02; 15 U.S.C. 1639-41).
    \34\ 15 U.S.C. 45.
    \35\ 12 U.S.C. 2607.
    \36\ 15 U.S.C. 1601-1667f (as amended).
    \37\ See 10 U.S.C. 987 and 50 U.S.C. 3901 et seq., respectively.
    \38\ See OCC PPM 5000-43, Impact of Evidence of Discriminatory 
or Other Illegal Credit Practices on Community Reinvestment Act 
Ratings (Aug. 15, 2018).
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    3. Retail and CD Activities. The appropriate Federal banking agency 
would have evaluated banks' CRA performance based on (1) retail lending 
(i.e., home mortgage loans, small business loans, small farm loans, and 
consumer loans, as applicable) and CD loans; (2) qualified investments; 
and (3) CD services, as each of these terms would have been defined in 
the Proposed Rule and considered in the applicable performance tests 
and standards.
    4. Assessment Area(s).
    [cir] A bank would have delineated assessment area(s) that 
generally--
    [ssquf] Included the geographies where the bank has its main 
office, branch(es), and deposit-taking ATMs (as applicable), as well as 
any surrounding geographies where the bank has originated or purchased 
a substantial portion of its loans; and
    [ssquf] Consisted of one or more MSAs, metropolitan divisions, or 
political subdivisions with a bank permitted to adjust the boundaries 
of its assessment area(s) to include only the portion of the political 
subdivision that the bank could reasonably be expected to serve.
    [cir] Assessment area(s) would have been required to:
    [ssquf] Consist of whole geographies;
    [ssquf] Not reflect illegal discrimination;
    [ssquf] Not arbitrarily exclude LMI geographies; and
    [ssquf] Not extend substantially beyond an MSA or State boundary 
unless the bank's assessment area(s) was in a multistate MSA.
    5. Data Collection, Recordkeeping, and Reporting.
    [cir] Banks, other than small banks, would have collected, 
maintained, and reported certain data related to small business loans, 
small farm loans, CD loans, and assessment areas. Banks, other than 
small banks, that are subject to the Home Mortgage Disclosure Act of 
1975 (HMDA) reporting requirements \39\ also would have reported 
certain information related to home mortgage lending outside of the 
MSA(s) where a bank has a home or branch office (or outside any MSA). 
The Proposed Rule also would have included certain optional data 
collection and reporting provisions.
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    \39\ 12 U.S.C. 2801 et seq.
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    [cir] The Proposed Rule would have reinstated requirements 
regarding the content and location of the public file and public 
notices that were revised or eliminated in the June 2020 Rule.
    6. Ratings. The appropriate Federal banking agency would have 
determined a bank's CRA rating as provided in proposed appendix A.
    7. Integration of National Bank and Savings Association Rules. The 
Proposed Rule would have reinstated separate rules for national banks 
(at 12 CFR part 25, subparts A through E and appendices A and B) and 
savings associations (at 12 CFR part 195, subparts A through C and 
appendices A and B). The June 2020 Rule integrated these rules in 12 
CFR part 25.
    8. Transition Period. The Proposed Rule would have required banks 
to comply with the final rule as of the effective date with no option 
to follow any provisions in the June 2020 Rule during the period 
between when the OCC would adopt the Proposed Rule in final form and 
the Agencies would adopt updated interagency CRA rules in final 
form.\40\ The Proposal discussed whether the OCC should address certain 
transition considerations in the final rule.
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    \40\ The period of time between the effective date of this final 
rule and the effective date of final updated interagency CRA rules 
is referred to herein as the ``interim period.''
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III. Comments on the Proposed Rule

    The OCC received 62 comment letters on the Proposed Rule, the 
majority of which generally supported rescinding the June 2020 Rule and 
the ongoing interagency effort to issue updated CRA rules. These 
comments addressed a wide range of issues and came from a variety of 
stakeholders and interested parties, including the banking industry, 
community and other advocacy groups, State and local governments, and 
the general public. The discussion below

[[Page 71331]]

identifies the significant issues raised by these commenters and 
explains how the OCC addresses these issues in the final rule. This 
final rule will provide certainty to stakeholders, eliminate burden 
associated with continuing to transition to the June 2020 Rule, and 
better position the OCC to engage in an interagency rulemaking process 
to update and modernize the CRA rules.
    Transition Provisions. The OCC proposed to replace the June 2020 
Rule with rules for banks based on the 1995 Rules. The Proposed Rule 
included a description of several transition considerations that the 
OCC was contemplating to provide for a smooth transition from the June 
2020 Rule. Although commenters generally supported rescission of the 
June 2020 Rule, they expressed opposing views on replacing the June 
2020 Rule with rules based on the 1995 Rules. Community groups and 
other commenters generally supported the Proposal for reasons including 
(1) the OCC should not have independently promulgated the June 2020 
Rule; (2) there would be confusion and inconsistent CRA evaluations if 
there were different CRA regulatory regimes applicable to different 
types of IDIs; (3) the June 2020 Rule is not yet fully effective, which 
lessens the impact of its rescission; (4) uniformity of CRA rules for 
all IDIs during the interim period would facilitate the ongoing 
interagency rulemaking process; and (5) the June 2020 Rule both failed 
to ensure that banks meet their local communities' banking needs and 
disincentivized investment in LMI communities and communities of color. 
One commenter suggested that the final rule should return banks to the 
1995 Rules but include certain innovations from the June 2020 Rule, 
including deposit-based assessment areas and the list of qualifying 
activities.
    In contrast, industry and trade associations generally opposed 
transitioning back to the 1995 Rules. Some of these commenters stated 
that banks have already changed their CRA programs to comply with the 
June 2020 Rule and another transition would be burdensome. They 
requested that the OCC balance the benefits of interagency uniformity 
with the need to minimize the disruption--for both banks and their CRA 
reinvestment partners--that will result if the OCC adopts the Proposed 
Rule. Similarly, others asserted that implementing the Proposed Rule 
would be disruptive, wasteful, and confusing. They recommended that the 
OCC minimize the number of regulatory transitions, the burden, and the 
confusion that would result from multiple rule changes.\41\
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    \41\ One commenter also expressed concern that reinstatement of 
the 1995 Rules could lead to regressive financial policies in low-
income communities and suggested that the OCC consider lessons from 
the financial crisis and solicit feedback from the most affected 
communities.
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    Several of these commenters requested that, during the interim 
period, the OCC (1) retain the provisions of the June 2020 Rule with a 
compliance date of October 1, 2020, and (2) revert to the 1995 Rules 
only for provisions of the June 2020 Rule with a compliance date of 
January 1, 2023, or January 1, 2024. Several commenters also requested 
that the OCC provide banks with flexibility to continue to utilize 
aspects of the June 2020 Rule or the 1995 Rules during the interim 
period, including by (1) providing consideration for all activities 
that qualify under either the June 2020 Rule or the 1995 Rules and (2) 
allowing banks that were in the process of transitioning to the June 
2020 Rule to retain the CRA programs they have in place as long as 
their programs comply with either the 1995 Rules or the June 2020 Rule.
    After considering the comments on transition issues, the OCC is 
adopting the final rule largely without modification from the Proposed 
Rule and with a delayed compliance date for two provisions: All banks 
will need to comply with the rule by January 1, 2022, with the 
exception of the public file and public notice provisions (Sec. Sec.  
25.43 and 25.44 of the final rule). As discussed below, banks will need 
to comply with Sec. Sec.  25.43 and 25.44 by April 1, 2022. 
Notwithstanding commenters' concerns regarding the burden for banks to 
transition back to a rule based on the 1995 Rules, it is the view of 
the OCC that this burden will be limited because the June 2020 Rule has 
only been partially implemented. Further, the alternatives suggested by 
the commenters would create confusion. For example, allowing banks the 
flexibility to elect to operate under either the June 2020 Rule or the 
1995 Rules would create confusion for stakeholders regarding which 
regulatory framework applied during banks' CRA evaluations. It also 
would undermine the goal of a consistent set of rules for all IDIs and 
could delay the issuance of the Agencies' updated interagency CRA rule. 
For example, creating a hybrid regulatory framework that leverages 
aspects of both the June 2020 Rule and the 1995 Rules could increase 
the supervisory burden and draw OCC resources away from the interagency 
CRA rulemaking efforts.
    By finalizing this rule with an effective date of January 1, 2022, 
and a compliance date of April 1, 2022, for Sec. Sec.  25.43 and 25.44, 
all IDIs will be subject to the same general regulatory framework at 
the earliest reasonable date, which will facilitate the Agencies' 
issuance of updated interagency CRA rules. To address concerns 
regarding the burden associated with this decision, the OCC will afford 
banks the implementation flexibility permitted by the transition 
provisions of the final rule and the Interagency Questions and Answers 
Regarding Community Reinvestment (Q&As) for the 1995 Rules \42\ and 
other CRA guidance, including the application of performance context. 
For example, in evaluating a bank's performance from October 1, 2020, 
through the interim period, the OCC will consider the impact that 
regulatory changes had on the bank's ability to engage in qualifying 
activities as part of its performance context. In addition, the final 
rule's delayed compliance date of April 1, 2022, for the public file 
and public notice provisions will ease burden associated with this 
final rule.
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    \42\ 81 FR 48506 (July 25, 2016).
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    Qualifying Activities. The Proposed Rule would have replaced the 
qualifying activities criteria in the June 2020 Rule with the 1995 
Rules' home mortgage loan, small business loan, small farm loan, 
consumer loan, and CD definitions. The Proposed Rule also would have 
replaced the definitions related to the qualifying activities criteria 
in the June 2020 Rule with the applicable definitions under the 1995 
Rules. The Proposed Rule would have eliminated June 2020 Rule 
definitions that did not exist in the 1995 Rules.
    The Proposal also explained that banks would receive consideration 
in their CRA examinations for activities that met the qualifying 
activities criteria or definitions in effect at the time that the banks 
conducted the activities.\43\ Under the final rule, as was also the 
case under the June 2020 Rule, a CRA activity may include a legally 
binding

[[Page 71332]]

commitment to lend or invest. A legally binding commitment will be 
considered to have been conducted on the date that the commitment is 
legally binding on the bank. This practice is consistent with the OCC's 
longstanding treatment under the 1995 Rules of legally binding 
commitments.\44\ Therefore, under the final rule, a legally binding 
commitment to lend or invest will be considered under the CRA 
regulatory framework that was in effect at the time the commitment 
became legally binding on the bank.
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    \43\ For example, if a bank originated a loan or entered into a 
legally binding commitment to lend on December 20, 2021, to build a 
charter school in which 40 percent of the students received free or 
reduced price school lunch, that loan would receive consideration in 
a bank's CRA examination even if the CRA examination took place 
after the effective date of the final rule (January 1, 2022) because 
this activity is a qualifying activity under the June 2020 Rule. See 
June 2020 Rule, 12 CFR 25.04(c)(5)(i). However, if the bank made the 
same loan or entered into the same legally binding commitment to 
lend on January 20, 2022, that loan or commitment would not qualify 
under the CD definitions in the final rule, and, therefore, would 
not receive consideration in a future CRA examination. See 12 CFR 
25.12(g) and (h) of this final rule.
    \44\ See 12 CFR 25.21-27 of this final rule. See also Q&A Sec.  
__.23(e); Q&A Sec.  __.26(b)-4.
---------------------------------------------------------------------------

    The OCC asked whether its proposal to consider activities based on 
whether they qualified at the time the bank (1) conducted the 
activities or (2) entered into a legally binding commitment to conduct 
the activities was a reasonable approach to address the proposed 
changes to the activities that would receive consideration in CRA 
examinations.
    Many commenters supported the elimination of the June 2020 Rule's 
qualifying activities criteria in the final rule and returning to the 
definitions in the 1995 Rules.\45\ Other commenters advocated retaining 
the June 2020 Rule's qualifying activities criteria, asserting that 
their elimination would negatively affect banks' communities. For 
example, one commenter asserted that the broader definition of 
qualifying activities in the June 2020 Rule provides an incentive for 
banks to engage in activities that benefit communities, including LMI 
and underserved persons, and that this result is consistent with the 
CRA's intent.\46\ Another commenter suggested that retaining the June 
2020 Rule's approach for qualifying activities would minimize 
disruptions in ongoing investment decisions. Other commenters supported 
retaining the current framework because of the burdens associated with 
changing regulatory regimes. One commenter suggested that the OCC give 
CRA consideration to any activity that qualifies under either the 1995 
Rules or June 2020 Rule.
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    \45\ One commenter suggested that, if legally permissible, the 
OCC should retroactively discount the expanded activities under the 
June 2020 Rule, particularly if done in the normal course of 
business, and all expanded activities should be re-evaluated to 
assess whether they benefitted the intended beneficiaries of the 
CRA.
    \46\ One of these commenters specifically objected to 
reinstating the 1995 Rules' CD services definition, asserting that 
there are many CRA volunteer services that provide tremendous 
benefits to banks' communities but do not focus on providing 
financial services to these communities.
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    Many commenters expressed support for the proposal to provide 
consideration for activities based on whether they qualified at the 
time the activities were conducted or subject to a legally binding 
commitment, with some commenters describing this approach as both 
reasonable and appropriate. One community group stated that it would be 
unfair to revoke consideration for activities that qualified at the 
time that the activities were conducted.
    After considering the comments, the OCC is adopting the retail 
lending, CD, and related definitions as proposed and adopts the 
proposed treatment of consideration for activities under the CRA. This 
outcome ensures that, going forward, (1) banks will receive 
consideration for activities that the Agencies have collectively 
recognized help to meet community credit needs; (2) consistent rules 
will apply to all IDIs; (3) banks will receive credit for dollars that 
are already legally committed; and (4) the OCC is likely to be able to 
more effectively work with the Board and the FDIC to determine the 
types of activities that should receive consideration under an updated 
interagency CRA rule. The final rule includes a provision in subpart D 
that explains when activities qualify for CRA consideration in CRA 
examinations based on the rule in effect at the time that the 
activities were conducted.
    Confirmation Process. The June 2020 Rule included a confirmation 
process for qualifying activities that permits banks and other 
interested parties to request OCC confirmation that a loan, investment, 
or service is consistent with that rule's qualifying activities 
criteria prior to engaging in the activity. Under the Proposed Rule, 
the OCC would have removed the qualifying activities confirmation 
process from the rule and replaced it with OCC procedures that would be 
operationally similar to the June 2020 Rule's confirmation process, but 
the OCC would have adapted the substance to conform to the 1995 Rules. 
The OCC requested comment on this approach.
    Both industry and community group commenters expressed support for 
retaining a confirmation process. One industry commenter noted that, 
regardless of whether the process is included in the final rule, 
retaining a confirmation process would be the least disruptive outcome 
for banks and interested parties. A community organization noted that 
any confirmation process should be equally accessible to community-
based organizations and banks. Another community group stated that any 
OCC delay in issuing guidance on the final rule's confirmation process 
should not affect banks' responsibilities to comply with the rule as of 
its effective date.
    Given the broad support for a confirmation process in general and 
the clarity provided by the June 2020 Rule's confirmation process, the 
OCC is adopting the proposed approach and will provide guidance on the 
scope and mechanics of this CD activity confirmation process.\47\
---------------------------------------------------------------------------

    \47\ As of January 1, 2022, confirmation letters issued under 
the June 2020 Rule for qualifying activities that a bank has not yet 
engaged in, or entered into a legally binding commitment for, would 
no longer serve as OCC confirmation that an activity qualifies for 
CRA consideration. Nonetheless, the activity may still receive CRA 
consideration if it meets the CD definitions and other requirements 
of the final rule.
---------------------------------------------------------------------------

    Illustrative List. The June 2020 Rule provided an illustrative list 
of examples of CRA qualifying activities. The OCC indicated in the 
Proposal that it would maintain this list on its website to help banks 
determine whether activities conducted while the June 2020 Rule was in 
effect are eligible for CRA consideration. While the OCC received few 
comments on this topic, all of those who commented supported the 
proposed approach of continuing to maintain the list of examples.\48\ 
The OCC believes that it may be useful to banks and other interested 
parties to continue to have access to the June 2020 Rule's illustrative 
list; therefore, the OCC will continue to make the list available on 
the Agency's website. After January 1, 2022, banks that newly engage in 
the activities on the illustrative list will only receive CRA 
consideration if the activities also meet the retail or CD definitions 
in the final rule.
---------------------------------------------------------------------------

    \48\ One commenter requested that the OCC preserve the four 
illustrative examples of qualifying activities that involve access 
to digital services as part of any amended guidance on CRA 
qualifying activities. These examples will remain on the 
illustrative list; however, new activities consistent with these 
examples that are conducted after January 1, 2022 will only receive 
consideration to the extent that they also are consistent with the 
retail or CD definitions in the final rule.
---------------------------------------------------------------------------

    Bank Asset-Size Thresholds. The June 2020 Rule increased the bank 
asset-size thresholds for determining small, intermediate, and general 
performance standards banks from the thresholds for determining small, 
ISB, and large banks under the 1995 Rules.\49\ This increase

[[Page 71333]]

changed some banks' asset-size categories (e.g., certain banks that 
were ISBs under the 1995 Rules are small banks under the 2020 Rule, and 
certain banks that were large banks under the 1995 Rules became 
intermediate banks under the June 2020 Rule). Under the Proposed Rule, 
the OCC would have reinstated the bank asset-size thresholds of the 
1995 Rules.\50\ For banks that would have transitioned from small banks 
to ISBs as a result of this, under the Proposal, the OCC would have 
considered this change in assessing the bank's performance context. 
Although the proposed reinstatement of bank asset-size thresholds would 
have applied as of January 1, 2022, the Proposal described a transition 
period for the new data collection, recordkeeping, and reporting 
requirements for intermediate banks that would return to being 
designated as large banks or newly become designated as large banks, 
which is addressed in more detail below.
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    \49\ Prior to the enactment of the June 2020 Rule, (1) small 
banks were banks with less than $326 million in assets; (2) ISBs 
were banks with assets between $326 million but less than $1.305 
billion; and (3) large banks were banks with assets of $1.305 
billion and above. Under the June 2020 Rule, (1) small banks are 
banks with assets up to $600 million; (2) intermediate banks are 
banks with assets of greater than $600 million and up to $2.5 
billion; and (3) general performance banks (referred to as large 
banks under the 1995 Rules' framework) are banks with greater than 
$2.5 billion in assets. As proposed, (1) small banks would have been 
banks of less than $330 million in assets; (2) ISBs would have been 
banks with assets between $330 million and less than $1.322 billion; 
and (3) large banks would have been banks with assets of $1.322 
billion and above.
    \50\ The bank asset-size thresholds in this final rule reflect 
the adjusted thresholds issued by the Board and FDIC on December 17, 
2020, effective January 1, 2021. See, e.g., FDIC PR 140-2020, 
Agencies Release Annual CRA Asset-Size Threshold Adjustments for 
Small and Intermediate Small Institutions, available at https://www.fdic.gov/news/press-releases/2020/pr20140.html. The Agencies 
make annual adjustments to the bank asset-size thresholds based on 
the change in the average of the Consumer Price Index for Urban Wage 
Earners and Clerical Workers (CPI-W), not seasonally adjusted, for 
each 12-month period ending in November. The adjusted thresholds are 
typically available mid- to late-December and are effective January 
1 of the following year. Once the Agencies determine the annual 
adjustment for calendar year 2022, the OCC will publicize the 
updated bank asset-size thresholds.
---------------------------------------------------------------------------

    The OCC received several comments on the proposed changes to the 
bank asset-size thresholds. Generally, industry commenters did not 
support the proposed changes, noting that banks recently adjusted their 
CRA programs to satisfy the June 2020 Rule and that the Proposed Rule 
would require another set of adjustments and associated burden (e.g., 
small banks that become ISBs would be subject to a CD test; 
intermediate banks that become large banks would be subject to separate 
lending, investment, and service tests and to new or reinstated data 
collection, recordkeeping, and reporting requirements).
    Commenters also noted that reinstating the 1995 Rules' bank asset-
size thresholds and then revising them again in a future interagency 
rulemaking would both be wasteful and burdensome, in part due to 
institutions' limited staff. One commenter also asserted that the 
asset-size thresholds under the 1995 Rules were too low, do not reflect 
the current banking industry, and should not be reinstated. Another 
commenter noted that the proposed asset-size thresholds are problematic 
because many banks now have inflated balance sheets due to government 
programs related to the COVID-19 pandemic.
    Other commenters stated that an immediate effective date for the 
reinstated asset-size thresholds would require banks to quickly modify 
their current procedures and processes (e.g., purchasing CRA software; 
educating specific lines of business about the new requirements; 
updating job aids; and implementing new requirements and testing 
processes). Several commenters suggested that banks that would have to 
comply with new standards or tests under a final rule (e.g., the ISB 
performance standards or large bank lending, investment, and services 
tests) should be provided with additional time to comply. One commenter 
supported a transition period for banks that were below the 1995 Rules' 
large bank asset-size threshold prior to the June 2020 Rule's effective 
date but now exceed the proposed large bank asset-size threshold. This 
commenter suggested a one-year transition, a two-year transition, or 
retaining the June 2020 Rule's bank asset-size thresholds for the 
duration of the interim period.
    Community groups and other commenters generally supported the 
Proposal to revert to the 1995 Rules' asset-size thresholds. These 
commenters suggested that it should not be overly burdensome for banks 
to transition back to their former bank types because many banks likely 
retained their reporting infrastructure and software programs.
    After considering these comments, the OCC is adopting the Proposed 
Rule's bank asset-size thresholds without modification. Therefore, any 
shift by banks to a new bank type (i.e., small bank, ISB, or large 
bank) will be based on the final rule's definitions and effective 
January 1, 2022. Reinstating the 1995 Rules' asset-size thresholds is 
one way that the final rule establishes a consistent rule applicable to 
all IDIs, which, as discussed elsewhere in this preamble, will likely 
facilitate the interagency CRA rulemaking process. The final rule's 
consideration of performance context should provide sufficient 
flexibility to address commenters' concerns about the burden associated 
with being evaluated under new tests and standards. For example, the 
OCC will consider a bank's need to change its CRA procedures and 
processes (e.g., reallocating staff and other resources; initiating or 
increasing its CD activities; or purchasing new software) when 
evaluating the bank under the final rule's applicable performance tests 
and standards. Furthermore, as discussed below, the OCC will provide 
banks that will be large banks for the first time under the final rule 
with additional time to comply with the rule's data requirements.
    Data Collection, Recordkeeping, and Reporting Requirements for 
Banks Transitioning from Intermediate Banks to Large Banks. Under the 
June 2020 Rule, banks with assets between $1.305 billion and $2.5 
billion changed bank type from large bank (their classification under 
the 1995 Rules) to intermediate bank. As a result, these banks were no 
longer subject to large bank data collection and recordkeeping 
requirements starting in 2021, and, under the June 2020 Rule, they 
would not have been subject to large bank data reporting requirements 
in 2022.
    Under the Proposed Rule, the OCC would have (1) treated banks that 
exceeded the ISB asset-size threshold \51\ as large banks and (2) 
applied the large bank data requirements to banks that were designated 
as intermediate banks under the June 2020 Rule beginning one year from 
the final rule's effective date (one-year proposed grace period).\52\ 
This treatment is consistent with the OCC's general practice under the 
1995 Rules.
---------------------------------------------------------------------------

    \51\ See supra note 28.
    \52\ Under the June 2020 Rule, banks that exceeded the 
intermediate bank threshold remained subject to the 1995 Rules' data 
collection, recordkeeping, and reporting requirements, and, 
therefore, the Proposed Rule would not have imposed new requirements 
on these banks.
---------------------------------------------------------------------------

    As discussed above, industry commenters generally objected to the 
proposed changes to the bank asset-size thresholds largely because of 
the burden associated with the data requirements for the banks subject 
to new data requirements (e.g., purchasing new software to comply with 
the applicable data requirements). Several commenters recommended that 
the OCC retain the June 2020 Rule's bank asset-size thresholds for the 
interim period. Others requested additional transition time to comply 
with the Proposed Rule's data requirements, or flexibility from the OCC 
when assessing an affected bank's data integrity. For example, one 
commenter suggested that the OCC apply a ``good faith'' standard in 
evaluating CRA performance during the interim period, including by (1) 
not issuing a ``Needs to Improve'' rating based on inaccuracies or 
deficiencies in

[[Page 71334]]

an affected bank's data if the bank demonstrates its program was 
developed and administered in good faith and (2) giving the bank a 
reasonable period of time to correct inaccuracies or deficiencies prior 
to issuing the bank's final performance evaluation rating.
    Conversely, community groups generally supported the immediate 
reinstatement of the 1995 Rules' large bank data requirements for all 
large banks as of the effective date of the final rule. One commenter 
noted that this data is critical for assessing whether the bank is 
meeting community needs, and there should be no delay in providing it 
to the public. The OCC also received a comment suggesting different 
treatment for those banks that were large banks prior to the June 2020 
Rule (redesignated large banks) and those banks that would, under the 
Proposal, be large banks for the first time (newly designated large 
banks).\53\
---------------------------------------------------------------------------

    \53\ As of September 30, 2021, approximately 36 OCC-regulated 
redesignated large banks and 31 OCC-regulated newly designated large 
banks would exceed the ISB threshold of the final rule and, 
therefore, be considered large banks under the final rule.
---------------------------------------------------------------------------

    Because redesignated large banks have prior experience with the 
data requirements in the 1995 Rules, it does not appear to be necessary 
to provide them with a grace period for compliance with the large bank 
data collection, recordkeeping, and reporting requirements. The OCC 
notes that, although the final rule requires redesignated large banks 
to report calendar year 2022 data by March 1, 2023--a period of 14 
months from the final rule's effective date--it contains no specific 
date during 2022 by which redesignated large banks must actually 
commence the applicable data collection and recordkeeping. Therefore, a 
redesignated large bank does not need to have its data collection and 
recordkeeping systems in place by January 1, 2022, to be in compliance 
with the final rule.\54\
---------------------------------------------------------------------------

    \54\ The OCC is not requiring data reporting for calendar year 
2021 for any redesignated or newly designated large banks. OCC 
guidance provided that intermediate banks under the June 2020 Rule 
that were formerly large banks under the 1995 Rules were exempt from 
data collection and recording requirements for calendar year 2021 
and reporting requirements for calendar year 2022. See OCC Bulletin 
2020-99, Community Reinvestment Act: Key Provisions of the June 2020 
CRA Rule and Frequently Asked Questions (Nov. 9, 2020), available at 
https://www.occ.gov/news-issuances/bulletins/2020/bulletin-2020-99.html. Therefore, although one commenter expressed an interest in 
having redesignated large banks report 2021 data, it would be 
unreasonable for banks expressly exempt from data collection and 
recordkeeping requirements in calendar year 2021 to be expected to 
report that data by March 1, 2022. This approach is consistent with 
the 1995 Rules, which did not require banks that were small banks or 
ISBs in the prior calendar year to report data.
---------------------------------------------------------------------------

    In addition, the OCC intends to work with these redesignated large 
banks over the next year to ensure they are on track to report calendar 
year 2022 data by March 1, 2023, and to provide them with any necessary 
flexibility in terms of missing information or other limited error 
tolerances for calendar year 2022 data. However, the error tolerances 
afforded these banks will only last one year and the data collection, 
recordkeeping, and reporting systems and processes of redesignated 
large banks must be fully functional by January 1, 2023, including with 
respect to data integrity. This approach should provide a sufficient 
transition period to appropriately balance the need for CRA data from 
redesignated large banks under the final rule with the practical 
challenges these banks may encounter.
    In contrast, the OCC has determined it is appropriate to apply the 
proposed grace period approach to newly designated large banks. These 
banks do not have the same prior experience with the data collection, 
recordkeeping, and reporting requirements under the 1995 Rules, and it 
is reasonable to provide them with additional time to establish the 
systems and processes necessary to comply with the final rule's data 
requirements. Therefore, the OCC is providing these banks with a one-
year grace period during which they will not be subject to the final 
rule's data requirements. Specifically, the OCC will require these 
banks to comply with the large bank data collection and recordkeeping 
requirements beginning on January 1, 2023, and report calendar year 
2023 data consistent with the large bank reporting requirements by 
March 1, 2024. Additionally, the OCC will evaluate these banks under 
the final rule's ISB lending and CD tests until they report the data 
necessary to evaluate them under the rule's large bank lending, 
investment, and service tests.
    Affiliate Activities. The June 2020 Rule does not specifically 
address how the CRA activities of bank affiliates are treated but 
states that only activities conducted by a bank qualify for CRA 
consideration. In January 2021, the OCC issued an interpretive letter 
that limited the consideration of affiliate activities (IL 1177).\55\ 
Under the Proposed Rule, the OCC would have considered a bank's 
affiliate's CRA activities consistent with the affiliate treatment 
provisions in the 1995 Rules, which permitted banks to elect to include 
affiliate activities in their CRA evaluations, subject to certain 
limitations.\56\ As explained in the Proposal, the OCC also would have 
rescinded IL 1177.
---------------------------------------------------------------------------

    \55\ The policy announced in that interpretive letter was set to 
take effect April 1, 2022, and provided that a bank would not have 
received CRA consideration for affiliate activities (including 
activities conducted by the nonbank parent and sister companies of 
the bank) unless the bank could demonstrate that it provided 
financing for or otherwise supported the qualifying activities of 
the affiliates. See IL 1177, OCC Senior Deputy Comptroller and Chief 
Counsel's Interpretation: Community Reinvestment Act Qualifying 
(CRA) Activities Conducted by a National Bank's or Savings 
Association's Subsidiaries and Affiliates, Including Nonbank Parent 
and Sister Companies of a National Bank or Savings Association Under 
Certain Circumstances, Can Receive CRA Credit Under the June 2020 
CRA Final Rule (Jan. 4, 2021), available at https://www.occ.gov/topics/charters-and-licensing/interpretations-and-actions/2021/int1177.pdf.
    \56\ See Sec. Sec.  25.22(c), 25.23(c), 25.24(c), 25.25(d), and 
25.27(c)(3) of the Proposed Rule. See also Q&A Sec.  __.22(c)(2)(i)-
1; Q&A Sec.  __.22(c)(2)(ii)-1; Q&A Sec.  __.22(c)(2)(ii)-2; Q&A 
Sec.  __.24(e)-1; and Q&A Sec.  __.26-1.
---------------------------------------------------------------------------

    Commenters that addressed affiliate activities generally supported 
the OCC's proposed treatment of these activities, and the OCC adopts 
the Proposed Rule as final on this issue. This decision should be 
generally nondisruptive relative to the alternatives because it (1) 
enables banks to retain their existing business models for engaging in 
CRA activities; (2) ensures that banks receive consideration for CRA-
qualifying activities; and (3) promotes banks' continued efforts to 
serve their communities. Consequently, as of January 1, 2022, this 
final rule supersedes IL 1177, and banks may receive consideration for 
affiliate activities as provided for in the final rule.\57\
---------------------------------------------------------------------------

    \57\ Consistent with this statement, the OCC will officially 
rescind IL 1177 as of January 1, 2022.
---------------------------------------------------------------------------

    Strategic Plans. As explained in the Proposal, the June 2020 Rule 
revised the requirements for strategic plans by, among other things, 
permitting banks to include target market assessment areas in their 
strategic plans. The OCC proposed to allow banks to maintain strategic 
plans that the Agency had approved under the June 2020 Rule, including 
plans that contained target market assessment areas.\58\ Although not 
addressed in the Proposal, the OCC

[[Page 71335]]

had provided in guidance regarding the June 2020 Rule that banks could 
establish goals for CRA-qualifying activities conducted outside of 
their assessment areas.\59\
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    \58\ The OCC stated in the Proposal that permitting strategic 
plan banks to maintain their target market assessment areas was not 
inconsistent with proposed 12 CFR 25.41 and would cause the least 
disruption during the transition from the OCC's June 2020 Rule to 
any future interagency final rules. The OCC notes that there are 
currently no banks with strategic plans, or strategic plans pending 
OCC approval by December 31, 2021, that include goals established 
for target market assessment areas. As a result, the remaining 
discussion of strategic plan transition issues focuses on issues 
other than target market assessment areas.
    \59\ Pursuant to OCC Bulletin 2020-99, a bank operating under an 
approved strategic plan could receive consideration for qualifying 
activities conducted outside of its assessment area(s) by 
establishing a separate goal for those activities. The OCC would 
judge the goal for outside qualifying activities independently of 
the goals established for delineated assessment area(s). These 
outside activities could elevate bank performance from satisfactory 
to outstanding but could not compensate for less than satisfactory 
overall performance inside a bank's assessment area(s). Poor 
performance in one area could not be offset by performance that 
exceeds plan goals in another area.
---------------------------------------------------------------------------

    Several commenters supported maintaining strategic plans approved 
under the June 2020 Rule with one commenter generally advocating for 
maintaining the status quo for portions of the June 2020 Rule. One 
commenter supported maintaining these plans but only if the strategic 
plan period is already in effect. A few commenters expressed concern 
about how these strategic plans would be affected if the final rule 
rescinds the June 2020 Rule's qualifying activities criteria, with some 
recommending that affected banks be permitted to continue to rely on 
those criteria while the plan is in effect.\60\ In contrast, a 
community group commenter suggested that the OCC work with banks to 
modify strategic plans including target market assessment areas. The 
commenter noted that although this would put additional burden on the 
OCC and banks, it would not be unreasonable considering the 
circumstances and that it is not wholly sensible that banks would 
utilize strategic plans based on a rule that no longer applies.
---------------------------------------------------------------------------

    \60\ The challenges associated with meeting strategic plan goals 
was one reason commenters requested that, during the interim period, 
the OCC retain either (1) the provisions of the June 2020 Rule with 
an October 1, 2020, compliance date or (2) the qualifying activities 
criteria and related definitions.
---------------------------------------------------------------------------

    Under the final rule, strategic plans approved under the June 2020 
Rule may remain in effect but these plans must comply with the 
provisions of the final rule, as applicable.\61\ This application of 
the final rule to strategic plans would put all banks--those with 
strategic plans and those without--on a level playing field. Because 
banks will be subject to the applicable aspects of the final rule, the 
guidance that permitted banks to develop outside of assessment areas 
goals is no longer applicable.\62\ Specifically, for strategic plans, 
the final rule provides that the OCC will consider a bank's record of 
helping to meet the credit needs of its assessment area(s). Therefore, 
provisions in strategic plans that include goals for activities outside 
a bank's assessment area(s) will no longer be applicable, and the OCC 
will no longer evaluate these activities when assessing the bank's 
performance. Because the final rule does not address assessing 
performance outside of a bank's assessment area(s), the OCC will not 
rate a bank ``Needs to Improve'' or ``Substantial Noncompliance'' 
solely for failure to meet goals established under the June 2020 Rule 
for any area(s) outside of its assessment area(s).
---------------------------------------------------------------------------

    \61\ Approved strategic plans will remain in effect for the 
duration of the term set out in the plan, unless otherwise amended.
    \62\ See supra note 59.
---------------------------------------------------------------------------

    In addition, the OCC is committed to minimizing burden on banks 
transitioning to the final rule by giving them the appropriate 
flexibility permitted under the final rule, Q&As and other CRA 
guidance, and longstanding OCC policy in evaluating their performance 
relative to the goals outlined in strategic plans approved under the 
June 2020 Rule. Therefore, the OCC will continue to consider a bank's 
activities in the broader statewide or regional area(s) that include a 
bank's assessment area(s), consistent with the guidance in the 
Q&As.\63\
---------------------------------------------------------------------------

    \63\ Q&A Sec.  __.12(h)-6.
---------------------------------------------------------------------------

    Nonetheless, if a bank is concerned that it will not be able to 
meet the measurable goals specified in its strategic plan due to the 
regulatory changes in the final rule, the bank may request to amend its 
strategic plan based on the process outlined in Sec.  25.27(h) of the 
final rule. While the OCC will not require any bank to amend its 
strategic plan, the OCC will work expeditiously with banks that request 
amendments. This approach will enable the OCC to balance its interest 
in reestablishing consistency with respect to the CRA rules with banks' 
individual circumstances.
    CRA Activities Outside of a Bank's Assessment Area(s). The June 
2020 Rule provides for nationwide consideration of qualifying 
activities for banks evaluated under the general performance standards. 
As explained in guidance addressing implementation of the June 2020 
Rule, if certain conditions are met during the period transitioning 
from the 1995 Rules to the June 2020 Rule, an OCC-regulated bank could 
receive consideration for qualifying activities conducted outside of 
its assessment area(s), even if those activities do not directly or 
indirectly serve its assessment area(s).\64\
---------------------------------------------------------------------------

    \64\ See OCC Bulletin 2020-99.
---------------------------------------------------------------------------

    Under the Proposed Rule, the OCC would have considered a bank's 
activities outside of its assessment area(s) in limited circumstances 
and generally not on a nationwide basis, consistent with the 1995 Rules 
and the Q&As. The OCC requested comment, however, on whether it should 
continue to consider bank activities that do not directly or indirectly 
serve either a bank's assessment area(s) or the broader statewide or 
regional area(s) that include the bank's assessment area(s). For 
commenters who supported consideration for those activities, the OCC 
also requested comment on what conditions, if any, should apply.
    Several community group commenters supported limiting consideration 
for activities that do not directly or indirectly serve either a bank's 
assessment area(s) or the broader statewide or regional area(s) that 
include a bank's assessment area(s). The commenters noted that the 
Agencies should have the same rules and apply the same standards to 
activities conducted outside of the assessment areas of the IDIs they 
supervise. One community group commenter also stated that consideration 
of these activities should end on the effective date of the final rule. 
In contrast, some industry commenters asserted that the OCC should 
continue to consider activities conducted outside of banks' assessment 
areas.
    The final rule does not provide for consideration of activities 
that do not directly or indirectly serve either a bank's assessment 
area(s) or the broader statewide or regional area(s) that include a 
bank's assessment area(s). This approach is more consistent with the 
approach taken by the 1995 Rules and likely will enable the OCC to work 
more effectively with the Board and the FDIC in the interagency 
rulemaking process on a consistent approach for the geographic 
consideration of CD activities.\65\
---------------------------------------------------------------------------

    \65\ Under the final rule, banks may receive consideration for 
investments in nationwide funds consistent with the guidance in Q&A 
Sec.  __.23(a)-2.
---------------------------------------------------------------------------

    Public File. The June 2020 Rule included requirements for the 
content and location of a bank's public file that differed from those 
in the 1995 Rules. The Proposed Rule would have restored the public 
file content and location requirements in the 1995 Rules. As such, the 
Proposed Rule would have required banks to (1) include additional 
information in their public files; (2) make all the information in 
their public file available at their main offices and, if an interstate 
bank, at one branch office in each State; and (3) make more limited 
information available at each

[[Page 71336]]

branch. Because the Proposed Rule would have imposed these additional 
public file content and location requirements, the OCC requested 
comment on whether banks would need additional time to comply and, if 
so, whether three months after the final rule's effective date would be 
sufficient time.
    Some industry commenters suggested that, under the final rule, 
banks should be given the flexibility to comply with the public file 
requirements of either the 1995 Rules or June 2020 Rule. They argued 
that this flexibility would reduce the burden for banks that very 
recently transitioned to the June 2020 Rule's public file requirements. 
One industry commenter suggested that banks should have four months to 
comply if the rules are finalized as proposed. In contrast, other 
commenters suggested that three months was sufficient for banks to make 
these changes, with some noting that the proposed approach was to 
revert to a well understood and established process.
    The final rule adopts the three-month transition provision for 
compliance with the final rule's public file requirements as proposed. 
Therefore, banks will be required to comply with the final rule's 
public file requirements by April 1, 2022. This transition period 
should strike an appropriate balance between providing community groups 
and other interested parties with access to the information that banks 
will have to provide in their public files under the final rule and 
ensuring that banks have adequate time to update their public files in 
accordance with the requirements of the final rule.
    Public Notice. The June 2020 Rule's public notice requirements 
differed from the 1995 Rules' requirements. Under the Proposed Rule, 
the 1995 Rules' public notice content and location requirements would 
have been restored, requiring each bank to provide the public notice 
content set out in appendix B of the Proposed Rule and place the notice 
in (1) the public lobby of its main office and (2) each branch, if any. 
Although the Proposed Rule would not have provided a transition period 
for complying with this provision, the OCC requested comment on this 
issue.
    Some industry commenters suggested that the OCC should permit banks 
to comply with the public notice requirements under either the 1995 
Rules or June 2020 Rule because it would be burdensome for banks that 
already transitioned to the June 2020 Rule's public notice requirement. 
One commenter requested four months for banks to make necessary 
changes, to the extent the OCC does not permit banks to use either the 
June 2020 Rule's or 1995 Rules' requirements as requested. In contrast, 
one commenter opposed any transition period.
    The OCC agrees that it would be unduly burdensome to require banks 
to comply with the public notice requirements as of the January 1, 
2022, effective date. Therefore, banks will be required to comply with 
the public notice requirements three months after the effective date of 
the final rule, April 1, 2022. The three-month delayed compliance date 
for the final rule's public notice provisions will mitigate burden 
associated with the revised content and location requirements while 
ensuring that interested parties are appropriately provided with the 
requisite notice.
    DOICP. Prior to issuing the June 2020 Rule, OCC policy provided 
that the Agency would consider a bank's violation of the MLA or SCRA in 
its CRA examination of that bank.\66\ The June 2020 Rule codified this 
policy by including MLA and SCRA violations in the non-exhaustive, 
enumerated list of DOICPs included in the rule that the OCC considers 
in evaluating a bank's CRA performance.
---------------------------------------------------------------------------

    \66\ See supra note 38.
---------------------------------------------------------------------------

    Under the Proposed Rule, the codification of this policy would be 
rescinded. The OCC did not intend, however, for this change to have a 
substantive effect. Because the list of violations included in the 
Proposed Rule is non-exhaustive, the OCC would have continued to 
consider violations of the MLA and SCRA consistent with its 
longstanding policy.\67\
---------------------------------------------------------------------------

    \67\ Id.
---------------------------------------------------------------------------

    The OCC received only one comment on this issue that opposed the 
change. This commenter stated that MLA and SCRA are designed to create 
a national standard of conduct and CRA evaluations should assess banks' 
compliance with these laws. As noted above, the OCC would have 
continued to consider MLA and SCRA violations under the Proposed Rule. 
Because one of the OCC's primary goals in issuing the Proposed Rule was 
to re-establish consistent rules for all IDIs, and because it is not 
necessary to include MLA and SCRA violations in the rule for the 
appropriate Federal banking agency to consider them in CRA 
examinations, the OCC adopts the Proposed Rule as final on this issue.
    Publication of CRA Performance Evaluations. One community group 
commenter suggested that the OCC should instruct banks to make CRA 
exams more prominent on their websites and that all applications for 
new charters or for a change in control include publicly released CRA 
plans available from the banks and the regulatory agencies. The OCC has 
elected not to make this change at this time given the interest in 
reestablishing consistent requirements for all IDIs.
    Integration of National Bank and Savings Association Rules. Under 
the June 2020 Rule, there is currently a single CRA rule that applies 
to both national banks and savings associations, located at 12 CFR part 
25. The Proposed Rule would have reverted back to separate CRA rules 
for national banks and savings associations, 12 CFR part 25 and 12 CFR 
part 195, respectively, as was the case under the 1995 Rules. These 
separate rules, originally issued on an interagency basis, are 
materially the same, with only a few differences, described below.
    The OCC sought input from commenters on whether it should retain 
the integrated rule or reinstate separate rules. Commenters did not 
provide significant input on this issue. One industry commenter opposed 
integration if it would prevent or deter the Agency from implementing a 
final rule that would allow OCC-regulated banks to continue to operate 
under the June 2020 Rule, and a member of the public expressed general 
support for separate rules. The OCC notes that integrating the national 
bank and savings association CRA rules will not affect the timing of 
the final rule's implementation.
    As a general matter, the OCC has integrated many of its national 
bank and savings association rules for a variety of reasons, including 
to reduce regulatory duplication and clarify when the same substantive 
rule applies to both types of entities.\68\ For these same reasons, the 
final rule maintains the integration of the national bank and savings 
association CRA rules in a single CRA rule. Furthermore, keeping an 
integrated rule will cause less confusion for stakeholders. The OCC 
also notes that integrating the CRA rules in this final rule will 
simplify the process of amending the OCC's CRA rule during the 
interagency rulemaking process and negate the need for OCC-specific 
integration provisions in the updated interagency rulemaking. 
Therefore, the OCC is not adopting the proposed separate rules for 
national banks and savings associations but is instead adopting an 
integrated CRA rule. Specifically, the final rule sets out, in 12

[[Page 71337]]

CFR part 25, subparts A through E \69\ and appendices A and B, the CRA 
rule applicable to both national banks and savings associations. This 
integration should not have a material impact on any bank or any other 
person or entity.
---------------------------------------------------------------------------

    \68\ See, e.g., 79 FR 28393 (May 16, 2014); 80 FR 43240 (July 
21, 2015).
    \69\ Subpart E, Prohibition Against Use of Interstate Branches 
Primarily for Deposit Production, only applies to national banks.
---------------------------------------------------------------------------

    Parts 25 and 195 under the 1995 Rules contained two substantive 
differences that were retained in the Proposed Rule. First, the 
Proposed Rule contained a small difference with respect to the effect 
of a national bank's CRA performance on an application for a deposit 
facility compared to a savings association's application. Under the CRA 
statute, the Agencies must take into account an institution's CRA 
performance record when evaluating an ``application for a deposit 
facility.'' \70\ The statute defines an ``application for a deposit 
facility'' to include the ``establishment of a domestic branch or other 
facility with the ability to accept deposits.'' \71\ Consistent with 
the 1995 Rules, proposed Sec.  25.29(a)(1) stated that the OCC would 
take into account an applicant bank's CRA performance record in 
considering an application to establish a ``domestic branch,'' while 
proposed Sec.  195.29(a)(1) would have permitted the appropriate 
Federal banking agency to consider this record in a savings 
association's application to establish a ``domestic branch or other 
facility that would be authorized to take deposits.'' Second, proposed 
Sec.  25.29(b) would have required an application for a national bank 
charter filed by an applicant other than an IDI to include a 
description of the how the applicant will meet its CRA objectives and 
the OCC to take into account this description in considering the 
application. The Proposed Rule did not include a similar requirement 
for an IDI applicant for a national bank charter. The Proposed Rule for 
savings associations, Sec.  195.29(b), differed from the Proposed Rule 
for national banks by including this requirement for every applicant 
for a savings association charter, not just non-IDI applicants. The OCC 
is including in the final rule separate provisions to reflect these 
differences for national banks and savings associations.
---------------------------------------------------------------------------

    \70\ 12 U.S.C. 2903(a)(2).
    \71\ 12 U.S.C. 2902(3).
---------------------------------------------------------------------------

    The final rule also includes a number of non-substantive or 
technical changes to proposed part 25 and its appendices to reflect the 
integration of the national bank and savings association rules. For 
example, Sec.  25.11(c)(1)(ii) of the final rule explains that the OCC 
has the authority to prescribe these rules for national banks, Federal 
savings associations, and State savings associations and to enforce 
these rules for national banks and Federal savings associations. It 
further explains that the FDIC has the authority to enforce these rules 
for State savings associations. Section 25.11(c)(1)(iii) of the final 
rule explains that the phrase ``appropriate Federal banking agency'' 
will mean the OCC when the institution is a national bank or Federal 
savings association and the FDIC when the institution is a State 
savings association. This allows a single rule to apply to different 
institutions.
    The final rule also revises the proposed definition of ``bank'' in 
Sec.  25.12(e) to include a definition of ``banks or savings 
associations'' and a definition of ``banks and savings associations.'' 
Revising the proposed definition of the term ``bank,'' as opposed to 
adding a separate definition for ``savings associations,'' preserves in 
the final rule the numbering convention that is used in the Q&As. 
However, because ``bank'' and ``savings association'' are not 
separately defined, the final rule also revises Sec. Sec.  25.29 and 
25.44 to use the terms ``insured national bank'' and ``savings 
association'' in the parts of those section that apply to only one type 
of institution. Lastly, the final rule does not include proposed 12 CFR 
part 195.
    Interagency Rulemaking. The OCC received a number of comments on 
the June 2020 Rule and recommendations and ideas for the Agencies' 
efforts to develop updated interagency CRA rules. Such comments are 
outside the scope of the current rulemaking. The OCC will share these 
comments with the Board and FDIC, as they are more relevant to the 
interagency rulemaking process.
    Technical Changes. The OCC proposed a technical correction to an 
error in the 1995 Rules' cross-reference to the definition of ``foreign 
bank'' at 12 CFR 25.62(a)(2) by replacing ``12 CFR 28.11(j)'' with ``12 
CFR 28.11(i).'' The Agency received no comments on this change and 
adopts the correction as proposed.
    The final rule also includes three other technical corrections. 
First, the final rule corrects the 1995 Rules' cross-reference to the 
definition of ``Federal branch'' in 12 CFR 25.62(c) by replacing ``12 
CFR 28.11(i)'' with ``12 CFR 28.11(h).'' Second, the final rule 
corrects the 1995 Rules' cross-reference to the definition of the 
``home State of the foreign bank'' in 12 CFR 25.62(d)(4)(i) by 
replacing ``12 CFR 28.11(o)'' with ``12 CFR 28.11(n).'' Third, in 
appendix B, the final rule replaces (1) the reference to ``Comptroller 
of the Currency'' with ``Office of the Comptroller of the Currency 
(OCC)'' and (2) references to the ``Comptroller'' and ``Deputy 
Comptroller'' with ``OCC.''

IV. The Final Rule

    For the reasons discussed above, the OCC finalizes the rule as 
proposed, except as discussed above.\72\
---------------------------------------------------------------------------

    \72\ As referenced throughout this preamble, the final rule 
incorporates the guidance in the Q&As and any other applicable 
guidance related to the 1995 Rules.
---------------------------------------------------------------------------

V. Regulatory Analyses

A. Paperwork Reduction Act

    Certain provisions of the final rule contain ``collection of 
information'' requirements within the meaning of the Paperwork 
Reduction Act (PRA) of 1995.\73\ In accordance with the requirements of 
the PRA, the OCC may not conduct or sponsor, and a respondent is not 
required to respond to, an information collection unless it displays a 
currently valid Office of Management and Budget (OMB) control number. 
The OCC submitted the information collection requirements to OMB in 
connection with the Proposed Rule and received pre-approval under OMB 
Control No. 1557-0160.
---------------------------------------------------------------------------

    \73\ 44 U.S.C. 3501 et seq.
---------------------------------------------------------------------------

    Under the final rule:
     12 CFR 25.25(b)--Requests for designation as a wholesale 
or limited-purpose bank shall be made in writing with the OCC at least 
three months prior to the proposed effective date of the designation.
     12 CFR 25.27--Strategic plans shall be submitted at least 
three months prior to proposed effective dates. Plans shall include 
measurable goals and address all the performance categories. Plans 
shall include a description of informal efforts to solicit public 
suggestions, any written public comments received, and if revised 
pursuant to public comment, a copy of the initial plan. Amendments to 
plans shall be submitted in the case of a change in material 
circumstances.
     12 CFR 25.42(a)--Large banks shall collect and maintain 
certain small business and small farm loan data in a machine-readable 
form and report it annually pursuant to 12 CFR 25.42(b)(1).
     12 CFR 25.42(b)(2)--Large banks shall report annually in 
machine readable form the aggregate number and aggregate amount of 
community development loans originated or purchased.
     12 CFR 25.42(b)(3)--A large bank, if subject to reporting 
under HMDA, shall report the location of each home mortgage loan 
application, origination,

[[Page 71338]]

or purchase outside the MSAs where the bank has a home or branch 
office.
     12 CFR 25.42(c)(1)--Each bank shall collect and maintain 
in machine readable form certain data for consumer loans originated or 
purchased by the bank for consideration under the lending test. Under 
12 CFR 25.42(c)(2)-(4), other information shall be included concerning 
a bank's lending performance, including additional loan distribution 
data.
     12 CFR 25.42(d)--A bank that elects to have the OCC 
consider loans by an affiliate, for purposes of the lending or 
community development test or an approved strategic plan, shall 
collect, maintain, and report the data that the bank would have 
collected, maintained, and reported pursuant to 12 CFR 25.42(a)-(c), 
had the loans been originated or purchased by the bank. For home 
mortgage loans, the bank shall also be prepared to identify the home 
mortgage loans reported under HMDA by the affiliate.
     12 CFR 25.42(e)--A bank that elects to have the OCC 
consider community development loans by a consortium or a third party, 
for purposes of the lending or community development tests or an 
approved strategic plan, shall report for those loans the data that the 
bank would have reported under 12 CFR 25.42(b)(2), had the loans been 
originated or purchased by the bank.
     12 CFR 25.42(f)--Small banks that qualify for evaluation 
under the small bank performance standards but elect evaluation under 
the lending, investment, and service tests shall collect, maintain, and 
report the data required for other banks under 12 CFR 25.42(a) and 
25.42(b).
     12 CFR 25.42(g)--A bank, except a bank that was a small 
bank during the prior calendar year, shall collect and report to the 
OCC by March 1 of each year a list for each assessment area showing the 
geographies within the area.
     12 CFR 25.43(a)--A bank shall maintain a public file that 
contains certain specified details: All written comments and responses; 
a copy of the public section of the bank's most recent CRA performance 
evaluation; a list of the bank's branches; a list of the branches 
opened or closed; a list of services offered; and a map of each 
assessment area delineated by the bank.
     12 CFR 25.43(b)--A large bank shall include in its public 
files certain information pertaining to the institution and its 
affiliates, if applicable, for each of the prior two calendar years. If 
the bank has elected to have one or more categories of its consumer 
loans considered under the lending test, for each of these categories, 
it shall include the number and amount of loans: To low-, moderate-, 
middle-, and upper-income individuals; located in low-, moderate-, 
middle-, and upper-income census tracts; and located inside and outside 
the bank's assessment area(s); and its CRA Disclosure Statement. A bank 
required to report home mortgage loan data pursuant to 12 CFR part 1003 
shall include a written notice that the institution's HMDA Disclosure 
Statement may be obtained on the Consumer Financial Protection Bureau's 
(Bureau's) website. A bank that elected to have the OCC consider the 
mortgage lending of an affiliate shall include the name of the 
affiliate and a written notice that the affiliate's HMDA Disclosure 
Statement may be obtained at the Bureau's website. A small bank or a 
bank that was a small bank during the prior calendar year shall 
include: Its loan-to-deposit ratio for each quarter of the prior 
calendar year and, at its option, additional data on its loan-to-
deposit ratio; and the information required for other banks by 12 CFR 
24.43(b)(1), if it has elected to be evaluated under the lending, 
investment, and service tests. A bank that has been approved to be 
assessed under a strategic plan shall include in its public file a copy 
of that plan. A bank that received a less than ``Satisfactory'' rating 
during its most recent examination shall include in its public file a 
description of its current efforts to improve its performance in 
helping to meet the credit needs of its entire community. The bank 
shall update the description quarterly.
     12 CFR 25.43(c)-(e)--A bank shall make available to the 
public for inspection upon request and at no cost to the public the 
information required in these provisions at the main office or branch 
as specified. Upon request, a bank shall provide copies, either on 
paper or in another form acceptable to the person making the request, 
of the information in its public file. A bank shall ensure that this 
information is current as of April 1 of each year.
    OCC Title of Information Collection: Community Reinvestment Act.
    Frequency: On Occasion.
    Affected Public: Businesses or other for-profit.
    Total estimated annual burden: 113,351 hours.
    Comments continue to be invited on:
    a. Whether the collections of information are necessary for the 
proper performance of the OCC's functions, including whether the 
information has practical utility;
    b. The accuracy or the estimate of the burden of the information 
collections, including the validity of the methodology and assumptions 
used;
    c. Ways to enhance the quality, utility, and clarity of the 
information to be collected;
    d. Ways to minimize the burden of the information collections on 
respondents, including through the use of automated collection 
techniques or other forms of information technology; and
    e. Estimates of capital or startup costs and costs of operation, 
maintenance, and purchase of services to provide information.

B. Regulatory Flexibility Act

    The Regulatory Flexibility Act (RFA) \74\ requires an agency, in 
connection with a final rule, to prepare a Final Regulatory Flexibility 
Analysis describing the impact of the rule on small entities (defined 
by the Small Business Administration for purposes of the RFA to include 
commercial banks and savings institutions with total assets of $600 
million or less and trust companies with total assets of $41.5 million 
or less) or to certify that the rule will not have a significant 
economic impact on a substantial number of small entities. The RFA does 
not required this analysis, however, if the agency certifies that the 
final rule will not have a significant economic impact on a substantial 
number of small entities and publishes its certification and a short 
explanatory statement in the Federal Register, along with its rule.
---------------------------------------------------------------------------

    \74\ 5 U.S.C. 601 et seq.
---------------------------------------------------------------------------

    The final rule will impact approximately 669 small entities. The 
OCC estimates the annual cost for small entities to comply with the 
final rule will be approximately $1,824 per bank ($114 per hour x 16 
hours). In general, the OCC classifies the economic impact on an 
individual small entity as significant if the total estimated impact in 
one year is greater than 5 percent of the small entity's total annual 
salaries and benefits or greater than 2.5 percent of the small entity's 
total non-interest expense. Based on these thresholds, the OCC 
estimates that, if implemented, the final rule will have a significant 
economic impact on zero small entities, which is not a substantial 
number. Therefore, the OCC certifies that the final rule will not have 
a significant economic impact on a substantial number of small 
entities.

C. Unfunded Mandates Reform Act of 1995

    Pursuant to the Unfunded Mandates Reform Act of 1995,\75\ the OCC 
considers whether a final rule includes

[[Page 71339]]

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 (adjusted for inflation). The OCC 
estimates that expenditures associated with the mandates in the final 
rule will be roughly $6.2 million and, therefore, concludes the rule 
will not result in an expenditure of $100 million or more annually 
(adjusted for inflation) by State, local, and tribal governments, or by 
the private sector.
---------------------------------------------------------------------------

    \75\ 2 U.S.C. 1532.
---------------------------------------------------------------------------

D. Administrative Procedure Act

    Pursuant to section 553(b)(3)(B) of the Administrative Procedure 
Act (APA),\76\ general notice and the opportunity for public comment 
are not required with respect to a rulemaking when an ``agency for good 
cause finds (and incorporates the finding and a brief statement of 
reasons therefor in the rules issued) that notice and public procedure 
thereon are impracticable, unnecessary, or contrary to the public 
interest.'' \77\ As described in the final rule's SUPPLEMENTARY 
INFORMATION section, the final rule includes a few technical amendments 
that the OCC did not include in its Proposed Rule. Because these 
amendments are not substantive and merely correct cross-references and 
a reference to the OCC, the OCC believes that public notice of these 
changes is unnecessary and, therefore, that it has good cause to adopt 
these changes without notice and comment.
---------------------------------------------------------------------------

    \76\ 5 U.S.C. 551 et seq.
    \77\ 5 U.S.C. 553(b)(3)(B).
---------------------------------------------------------------------------

    Under the APA, an agency is required to provide a 30-day delayed 
effective date when publishing a substantive rule, with certain 
exceptions including for good cause.\78\ The OCC believes it has good 
cause to issue this final rule without a 30-day delayed effective date 
for several reasons.
---------------------------------------------------------------------------

    \78\ 5 U.S.C. 553(d).
---------------------------------------------------------------------------

    First, the OCC's CRA evaluations for banks consider CRA activities 
in full calendar year increments (i.e., January 1-December 31). A 30-
day delayed effective date would cause the final rule to take effect 
after the start of the 2022 calendar year. This would cause a bank to 
be subject to two different regulatory regimes during any three-year 
examination period that includes 2022, including different approaches 
to the activities that receive consideration in CRA evaluations and 
different data collection, recordkeeping, and reporting requirements. 
As was the OCC's experience with the June 2020 Rule, this would result 
in more complicated written CRA performance evaluations, create 
confusion for banks and other stakeholders reviewing CRA performance 
evaluations, and make it more difficult to compare CRA performance 
across the banking industry.\79\ Second, data collected on a calendar-
year basis is more useful to stakeholders than data collected for a 
partial year. Finally, banks currently are required to comply with many 
of the provisions in the 1995 Rules, which this final rule reinstates, 
because the June 2020 Rule is only partially in effect. Therefore, 
banks will not have to make changes to adjust to these provisions of 
the final rule.
---------------------------------------------------------------------------

    \79\ The June 2020 Rule had an effective date of October 1, 
2020, which resulted in two regulatory regimes applying during 
calendar year 2020.
---------------------------------------------------------------------------

    For these reasons, the OCC finds that there is good cause to 
publish this rule without a 30-day delayed effective date.

E. Riegle Community Development and Regulatory Improvement Act of 1994

    Under the Riegle Community Development and Regulatory Improvement 
Act of 1994 (RCDRIA), in determining the effective date and 
administrative compliance requirements for new rules that impose 
additional reporting, disclosure, or other requirements on IDIs, the 
OCC must consider, consistent with principles of safety and soundness 
and the public interest, any administrative burdens that such rules 
will place on depository institutions, including small depository 
institutions, and customers of depository institutions, as well as the 
benefits of such rules.\80\ In addition, the RCDRIA requires new rules 
and amendments to rules that impose additional reporting, disclosure, 
or other new requirements on IDIs generally to take effect on the first 
day of a calendar quarter that begins on or after the date on which the 
rules are published in final form.\81\ The OCC has determined that this 
final rule will impose additional reporting, disclosure, or other new 
requirements on IDIs and considered the rule's burdens and benefits in 
determining its effective date and the administrative compliance 
requirements. The final rule's effective date provisions are consistent 
with the requirements of the RCDRIA.
---------------------------------------------------------------------------

    \80\ 12 U.S.C. 4802(a).
    \81\ 12 U.S.C. 4802(b).
---------------------------------------------------------------------------

F. Congressional Review Act

    The Congressional Review Act provides that if the OMB makes a 
determination that a final rule constitutes a ``major rule,'' the rule 
may not take effect until at least 60 days following its 
publication.\82\ The Congressional Review Act defines ``major rule'' as 
any rule that the Administrator of the Office of Information and 
Regulatory Affairs of the OMB finds has resulted in or is likely to 
result in--(A) an annual effect on the economy of $100,000,000 or more; 
(B) a major increase in costs or prices for consumers, individual 
industries, Federal, State, or local government agencies or geographic 
regions; or (C) significant adverse effects on competition, employment, 
investment, productivity, innovation, or on the ability of United 
States-based enterprises to compete with foreign based enterprises in 
domestic and export markets.\83\ The OCC has submitted the final rule 
to the OMB for this major rule determination. As required by the 
Congressional Review Act, the OCC will also submit the final rule and 
other appropriate reports to Congress and the Government Accountability 
Office for review.\84\
---------------------------------------------------------------------------

    \82\ 5 U.S.C. 801.
    \83\ 5 U.S.C. 804(2).
    \84\ 5 U.S.C. 801.
---------------------------------------------------------------------------

List of Subjects in 12 CFR Part 25

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

Authority and Issuance

0
For the reasons discussed in the preamble, and under the authority of 
12 U.S.C. 93a, the Office of the Comptroller of the Currency revises 12 
CFR part 25 as follows:

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

Subpart A--General
Sec.
25.11 Authority, purposes, and scope.
25.12 Definitions.
Subpart B--Standards for Assessing Performance
25.21 Performance tests, standards, and ratings, in general.
25.22 Lending test.
25.23 Investment test.
25.24 Service test.
25.25 Community development test for wholesale or limited purpose 
banks and savings associations.
25.26 Small bank and savings association performance standards.
25.27 Strategic plan.
25.28 Assigned ratings.
25.29 Effect of CRA performance on applications.
Subpart C--Records, Reporting, and Disclosure Requirements
25.41 Assessment area delineation.

[[Page 71340]]

25.42 Data collection, reporting, and disclosure.
25.43 Content and availability of public file.
25.44 Public notice by banks and savings associations.
25.45 Publication of planned examination schedule.
Subpart D--Transition Provisions
25.51 Consideration of Bank Activities.
25.52 Strategic Plan Retention.
Subpart E--Prohibition Against Use of Interstate Branches Primarily for 
Deposit Production
25.61 Purpose and scope.
25.62 Definitions.
25.63 Loan-to-deposit ratio screen.
25.64 Credit needs determination.
25.65 Sanctions.

Appendix A to Part 25--Ratings

Appendix B to Part 25--CRA Notice

    Authority:  12 U.S.C. 21, 22, 26, 27, 30, 36, 93a, 161, 215, 
215a, 481, 1462a, 1463, 1464, 1814, 1816, 1828(c), 1835a, 2901 
through 2908, 3101 through 3111, and 5412(b)(2)(B).

Subpart A--General


Sec.  25.11   Authority, purposes, and scope.

    (a) Authority and OMB control number--(1) Authority. The authority 
for subparts A, B, C, D, and E is 12 U.S.C. 21, 22, 26, 27, 30, 36, 
93a, 161, 215, 215a, 481, 1462a, 1463, 1464, 1814, 1816, 1828(c), 
1835a, 2901 through 2908, 3101 through 3111, and 5412(b)(2)(B).
    (2) OMB control number. The information collection requirements 
contained in this part were approved by the Office of Management and 
Budget under the provisions of 44 U.S.C. 3501 et seq. and have been 
assigned OMB control number 1557-0160.
    (b) Purposes. In enacting the Community Reinvestment Act (CRA), the 
Congress required each appropriate Federal financial supervisory agency 
to assess an institution's record of helping to meet the credit needs 
of the local communities in which the institution is chartered, 
consistent with the safe and sound operation of the institution, and to 
take this record into account in the agency's evaluation of an 
application for a deposit facility by the institution. This part is 
intended to carry out the purposes of the CRA by:
    (1) Establishing the framework and criteria by which the Office of 
the Comptroller of the Currency (OCC) or the Federal deposit Insurance 
Corporation (FDIC), as appropriate, assesses a bank's or savings 
association's record of helping to meet the credit needs of its entire 
community, including low- and moderate-income neighborhoods, consistent 
with the safe and sound operation of the bank or savings association; 
and
    (2) Providing that the OCC takes that record into account in 
considering certain applications.
    (c) Scope--(1) General. (i) Subparts A, B, C, and D, and Appendices 
A and B, apply to all banks and savings associations except as provided 
in paragraphs (c)(2) and (3) of this section. Subpart E only applies to 
banks.
    (ii) With respect to subparts A, B, C, and D, and Appendices A and 
B--
    (A) The OCC has the authority to prescribe these regulations for 
national banks, Federal savings associations, and State savings 
associations and has the authority to enforce these regulations for 
national banks and Federal savings associations.
    (B) The FDIC has the authority to enforce these regulations for 
State savings associations.
    (iii) With respect to subparts A, B, C, and D, and appendix A, 
references to appropriate Federal banking agency will mean the OCC when 
the institution is a national bank or Federal savings association and 
the FDIC when the institution is a State savings association.
    (2) Federal branches and agencies. (i) This part applies to all 
insured Federal branches and to any Federal branch that is uninsured 
that results from an acquisition described in section 5(a)(8) of the 
International Banking Act of 1978 (12 U.S.C. 3103(a)(8)).
    (ii) Except as provided in paragraph (c)(2)(i) of this section, 
this part does not apply to Federal branches that are uninsured, 
limited Federal branches, or Federal agencies, as those terms are 
defined in part 28 of this chapter.
    (3) Certain special purpose banks and savings associations. This 
part does not apply to special purpose banks or special purpose savings 
associations that do not perform commercial or retail banking services 
by granting credit to the public in the ordinary course of business, 
other than as incident to their specialized operations. These banks or 
savings associations include banker's banks, as defined in 12 U.S.C. 24 
(Seventh), and banks or savings associations that engage only in one or 
more of the following activities: Providing cash management controlled 
disbursement services or serving as correspondent banks or savings 
associations, trust companies, or clearing agents.


Sec.  25.12   Definitions.

    For purposes of subparts A, B, C, and D, and Appendices A and B, of 
this part, the following definitions apply:
    (a) Affiliate means any company that controls, is controlled by, or 
is under common control with another company. The term ``control'' has 
the meaning given to that term in 12 U.S.C. 1841(a)(2), and a company 
is under common control with another company if both companies are 
directly or indirectly controlled by the same company.
    (b) Area median income means:
    (1) The median family income for the MSA, if a person or geography 
is located in an MSA, or for the metropolitan division, if a person or 
geography is located in an MSA that has been subdivided into 
metropolitan divisions; or
    (2) The statewide nonmetropolitan median family income, if a person 
or geography is located outside an MSA.
    (c) Assessment area means a geographic area delineated in 
accordance with Sec.  25.41.
    (d) Automated teller machine (ATM) means an automated, unstaffed 
banking facility owned or operated by, or operated exclusively for, the 
bank or savings association at which deposits are received, cash 
dispersed, or money lent.
    (e)(1) Bank or savings association means, except as provided in 
Sec.  25.11(c), a national bank (including a Federal branch as defined 
in part 28 of this chapter) with Federally insured deposits or a 
savings association;
    (2) Bank and savings association means, except as provided in Sec.  
25.11(c), a national bank (including a Federal branch as defined in 
part 28 of this chapter) with Federally insured deposits and a savings 
association.
    (f) Branch means a staffed banking facility authorized as a branch, 
whether shared or unshared, including, for example, a mini-branch in a 
grocery store or a branch operated in conjunction with any other local 
business or nonprofit organization.
    (g) Community development means:
    (1) Affordable housing (including multifamily rental housing) for 
low- or moderate-income individuals;
    (2) Community services targeted to low- or moderate-income 
individuals;
    (3) Activities that promote economic development by financing 
businesses or farms that meet the size eligibility standards of the 
Small Business Administration's Development Company or Small Business 
Investment Company programs (13 CFR 121.301) or have gross annual 
revenues of $1 million or less; or
    (4) Activities that revitalize or stabilize--
    (i) Low-or moderate-income geographies;
    (ii) Designated disaster areas; or
    (iii) Distressed or underserved nonmetropolitan middle-income

[[Page 71341]]

geographies designated by the Board of Governors of the Federal Reserve 
System, FDIC, and the OCC, based on--
    (A) Rates of poverty, unemployment, and population loss; or
    (B) Population size, density, and dispersion. Activities revitalize 
and stabilize geographies designated based on population size, density, 
and dispersion if they help to meet essential community needs, 
including needs of low- and moderate-income individuals.
    (h) Community development loan means a loan that:
    (1) Has as its primary purpose community development; and
    (2) Except in the case of a wholesale or limited purpose bank or 
savings association:
    (i) Has not been reported or collected by the bank or savings 
association or an affiliate for consideration in the bank's or savings 
association's assessment as a home mortgage, small business, small 
farm, or consumer loan, unless the loan is for a multifamily dwelling 
(as defined in Sec.  1003.2(n) of this title); and
    (ii) Benefits the bank's or savings association's assessment 
area(s) or a broader statewide or regional area(s) that includes the 
bank's or savings association's assessment area(s).
    (i) Community development service means a service that:
    (1) Has as its primary purpose community development;
    (2) Is related to the provision of financial services; and
    (3) Has not been considered in the evaluation of the bank's or 
savings association's retail banking services under Sec.  25.24(d).
    (j) Consumer loan means a loan to one or more individuals for 
household, family, or other personal expenditures. A consumer loan does 
not include a home mortgage, small business, or small farm loan. 
Consumer loans include the following categories of loans:
    (1) Motor vehicle loan, which is a consumer loan extended for the 
purchase of and secured by a motor vehicle;
    (2) Credit card loan, which is a line of credit for household, 
family, or other personal expenditures that is accessed by a borrower's 
use of a ``credit card,'' as this term is defined in Sec.  1026.2 of 
this title;
    (3) Other secured consumer loan, which is a secured consumer loan 
that is not included in one of the other categories of consumer loans; 
and
    (4) Other unsecured consumer loan, which is an unsecured consumer 
loan that is not included in one of the other categories of consumer 
loans.
    (k) Geography means a census tract delineated by the United States 
Bureau of the Census in the most recent decennial census.
    (l) Home mortgage loan means a closed-end mortgage loan or an open-
end line of credit as these terms are defined under Sec.  1003.2 of 
this title, and that is not an excluded transaction under Sec.  
1003.3(c)(1) through (10) and (13) of this title.
    (m) Income level includes:
    (1) Low-income, which means an individual income that is less than 
50 percent of the area median income, or a median family income that is 
less than 50 percent, in the case of a geography.
    (2) Moderate-income, which means an individual income that is at 
least 50 percent and less than 80 percent of the area median income, or 
a median family income that is at least 50 and less than 80 percent, in 
the case of a geography.
    (3) Middle-income, which means an individual income that is at 
least 80 percent and less than 120 percent of the area median income, 
or a median family income that is at least 80 and less than 120 
percent, in the case of a geography.
    (4) Upper-income, which means an individual income that is 120 
percent or more of the area median income, or a median family income 
that is 120 percent or more, in the case of a geography.
    (n) Limited purpose bank or savings association means a bank or 
savings association that offers only a narrow product line (such as 
credit card or motor vehicle loans) to a regional or broader market and 
for which a designation as a limited purpose bank or savings 
association is in effect, in accordance with Sec.  25.25(b).
    (o) Loan location. A loan is located as follows:
    (1) A consumer loan is located in the geography where the borrower 
resides;
    (2) A home mortgage loan is located in the geography where the 
property to which the loan relates is located; and
    (3) A small business or small farm loan is located in the geography 
where the main business facility or farm is located or where the loan 
proceeds otherwise will be applied, as indicated by the borrower.
    (p) Loan production office means a staffed facility, other than a 
branch, that is open to the public and that provides lending-related 
services, such as loan information and applications.
    (q) Metropolitan division means a metropolitan division as defined 
by the Director of the Office of Management and Budget.
    (r) MSA means a metropolitan statistical area as defined by the 
Director of the Office of Management and Budget.
    (s) Nonmetropolitan area means any area that is not located in an 
MSA.
    (t) Qualified investment means a lawful investment, deposit, 
membership share, or grant that has as its primary purpose community 
development.
    (u) Small bank or savings association--(1) Definition. Small bank 
or savings association means a bank or savings association that, as of 
December 31 of either of the prior two calendar years, had assets of 
less than $1.322 billion. Intermediate small bank or savings 
association means a small bank or savings association with assets of at 
least $330 million as of December 31 of both of the prior two calendar 
years and less than $1.322 billion as of December 31 of either of the 
prior two calendar years.
    (2) Adjustment. The dollar figures in paragraph (u)(1) of this 
section shall be adjusted annually and published by the appropriate 
Federal banking agency, based on the year-to-year change in the average 
of the Consumer Price Index for Urban Wage Earners and Clerical 
Workers, not seasonally adjusted, for each twelve-month period ending 
in November, with rounding to the nearest million.
    (v) Small business loan means a loan included in ``loans to small 
businesses'' as defined in the instructions for preparation of the 
Consolidated Report of Condition and Income.
    (w) Small farm loan means a loan included in ``loans to small 
farms'' as defined in the instructions for preparation of the 
Consolidated Report of Condition and Income.
    (x) Wholesale bank or savings association means a bank or savings 
association that is not in the business of extending home mortgage, 
small business, small farm, or consumer loans to retail customers, and 
for which a designation as a wholesale bank or savings association is 
in effect, in accordance with Sec.  25.25(b).

Subpart B--Standards for Assessing Performance


Sec.  25.21   Performance tests, standards, and ratings, in general.

    (a) Performance tests and standards. The appropriate Federal 
banking agency assesses the CRA performance of a bank or savings 
association in an examination as follows:
    (1) Lending, investment, and service tests. The appropriate Federal 
banking agency applies the lending, investment, and service tests, as 
provided in Sec. Sec.  25.22 through 25.24, in evaluating the 
performance of a bank or savings association, except as provided in

[[Page 71342]]

paragraphs (a)(2), (3), and (4) of this section.
    (2) Community development test for wholesale or limited purpose 
banks and savings associations. The appropriate Federal banking agency 
applies the community development test for a wholesale or limited 
purpose bank or savings association, as provided in Sec.  25.25, except 
as provided in paragraph (a)(4) of this section.
    (3) Small bank and savings association performance standards. The 
appropriate Federal banking agency applies the small bank or savings 
association performance standards as provided in Sec.  25.26 in 
evaluating the performance of a small bank or savings association or a 
bank or savings association that was a small bank or savings 
association during the prior calendar year, unless the bank or savings 
association elects to be assessed as provided in paragraphs (a)(1), 
(2), or (4) of this section. The bank or savings association may elect 
to be assessed as provided in paragraph (a)(1) of this section only if 
it collects and reports the data required for other banks or savings 
associations under Sec.  25.42.
    (4) Strategic plan. The appropriate Federal banking agency 
evaluates the performance of a bank or savings association under a 
strategic plan if the bank or savings association submits, and the 
appropriate Federal banking agency approves, a strategic plan as 
provided in Sec.  25.27.
    (b) Performance context. The appropriate Federal banking agency 
applies the tests and standards in paragraph (a) of this section and 
also considers whether to approve a proposed strategic plan in the 
context of:
    (1) Demographic data on median income levels, distribution of 
household income, nature of housing stock, housing costs, and other 
relevant data pertaining to a bank's or savings association's 
assessment area(s);
    (2) Any information about lending, investment, and service 
opportunities in the bank's or savings association's assessment area(s) 
maintained by the bank or savings association or obtained from 
community organizations, state, local, and tribal governments, economic 
development agencies, or other sources;
    (3) The bank's or savings association's product offerings and 
business strategy as determined from data provided by the bank or 
savings association;
    (4) Institutional capacity and constraints, including the size and 
financial condition of the bank or savings association, the economic 
climate (national, regional, and local), safety and soundness 
limitations, and any other factors that significantly affect the bank's 
or savings association's ability to provide lending, investments, or 
services in its assessment area(s);
    (5) The bank's or savings association's past performance and the 
performance of similarly situated lenders;
    (6) The bank's or savings association's public file, as described 
in Sec.  25.43, and any written comments about the bank's or savings 
association's CRA performance submitted to the bank or savings 
association or the appropriate Federal banking agency; and
    (7) Any other information deemed relevant by the appropriate 
Federal banking agency.
    (c) Assigned ratings. The appropriate Federal banking agency 
assigns to a bank or savings association one of the following four 
ratings pursuant to Sec.  25.28 and appendix A of this part: 
``outstanding''; ``satisfactory''; ``needs to improve''; or 
``substantial noncompliance'' as provided in 12 U.S.C. 2906(b)(2). The 
rating assigned by the appropriate Federal banking agency reflects the 
bank's or savings association's record of helping to meet the credit 
needs of its entire community, including low- and moderate-income 
neighborhoods, consistent with the safe and sound operation of the bank 
or savings association.
    (d) Safe and sound operations. This part and the CRA do not require 
a bank or savings association to make loans or investments or to 
provide services that are inconsistent with safe and sound operations. 
To the contrary, the appropriate Federal banking agency anticipates 
banks and savings associations can meet the standards of this part with 
safe and sound loans, investments, and services on which the banks and 
savings associations expect to make a profit. Banks and savings 
associations are permitted and encouraged to develop and apply flexible 
underwriting standards for loans that benefit low- or moderate-income 
geographies or individuals, only if consistent with safe and sound 
operations.
    (e) Low-cost education loans provided to low-income borrowers. In 
assessing and taking into account the record of a bank or savings 
association under this part, the appropriate Federal banking agency 
considers, as a factor, low-cost education loans originated by the bank 
or savings association to borrowers, particularly in its assessment 
area(s), who have an individual income that is less than 50 percent of 
the area median income. For purposes of this paragraph, ``low-cost 
education loans'' means any education loan, as defined in section 
140(a)(7) of the Truth in Lending Act (15 U.S.C. 1650(a)(7)) (including 
a loan under a State or local education loan program), originated by 
the bank or savings association for a student at an ``institution of 
higher education,'' as that term is generally defined in sections 101 
and 102 of the Higher Education Act of 1965 (20 U.S.C. 1001 and 1002) 
and the implementing regulations published by the U.S. Department of 
Education, with interest rates and fees no greater than those of 
comparable education loans offered directly by the U.S. Department of 
Education. Such rates and fees are specified in section 455 of the 
Higher Education Act of 1965 (20 U.S.C. 1087e).
    (f) Activities in cooperation with minority- or women-owned 
financial institutions and low-income credit unions. In assessing and 
taking into account the record of a nonminority-owned and nonwomen-
owned bank or savings association under this part, the appropriate 
Federal banking agency considers as a factor capital investment, loan 
participation, and other ventures undertaken by the bank or savings 
association in cooperation with minority- and women-owned financial 
institutions and low-income credit unions. Such activities must help 
meet the credit needs of local communities in which the minority- and 
women-owned financial institutions and low-income credit unions are 
chartered. To be considered, such activities need not also benefit the 
bank's or savings association's assessment area(s) or the broader 
statewide or regional area(s) that includes the bank's or savings 
association's assessment area(s).


Sec.  25.22   Lending test.

    (a) Scope of test. (1) The lending test evaluates a bank's or 
savings association's record of helping to meet the credit needs of its 
assessment area(s) through its lending activities by considering a 
bank's or savings association's home mortgage, small business, small 
farm, and community development lending. If consumer lending 
constitutes a substantial majority of a bank's or savings association's 
business, the appropriate Federal banking agency will evaluate the 
bank's or savings association's consumer lending in one or more of the 
following categories: motor vehicle, credit card, other secured, and 
other unsecured loans. In addition, at a bank's or savings 
association's option, the appropriate Federal banking agency will 
evaluate one or more categories of consumer lending, if the bank or 
savings association has collected and maintained, as required in Sec.  
25.42(c)(1),

[[Page 71343]]

the data for each category that the bank or savings association elects 
to have the appropriate Federal banking agency evaluate.
    (2) The appropriate Federal banking agency considers originations 
and purchases of loans. The appropriate Federal banking agency will 
also consider any other loan data the bank or savings association may 
choose to provide, including data on loans outstanding, commitments and 
letters of credit.
    (3) A bank or savings association may ask the appropriate Federal 
banking agency to consider loans originated or purchased by consortia 
in which the bank or savings association participates or by third 
parties in which the bank or savings association has invested only if 
the loans meet the definition of community development loans and only 
in accordance with paragraph (d) of this section. The appropriate 
Federal banking agency will not consider these loans under any 
criterion of the lending test except the community development lending 
criterion.
    (b) Performance criteria. The appropriate Federal banking agency 
evaluates a bank's or savings association's lending performance 
pursuant to the following criteria:
    (1) Lending activity. The number and amount of the bank's or 
savings association's home mortgage, small business, small farm, and 
consumer loans, if applicable, in the bank's or savings association's 
assessment area(s);
    (2) Geographic distribution. The geographic distribution of the 
bank's or savings association's home mortgage, small business, small 
farm, and consumer loans, if applicable, based on the loan location, 
including:
    (i) The proportion of the bank's or savings association's lending 
in the bank's or savings association's assessment area(s);
    (ii) The dispersion of lending in the bank's or savings 
association's assessment area(s); and
    (iii) The number and amount of loans in low-, moderate-, middle-, 
and upper-income geographies in the bank's or savings association's 
assessment area(s);
    (3) Borrower characteristics. The distribution, particularly in the 
bank's or savings association's assessment area(s), of the bank's or 
savings association's home mortgage, small business, small farm, and 
consumer loans, if applicable, based on borrower characteristics, 
including the number and amount of:
    (i) Home mortgage loans to low-, moderate-, middle-, and upper-
income individuals;
    (ii) Small business and small farm loans to businesses and farms 
with gross annual revenues of $1 million or less;
    (iii) Small business and small farm loans by loan amount at 
origination; and
    (iv) Consumer loans, if applicable, to low-, moderate-, middle-, 
and upper-income individuals;
    (4) Community development lending. The bank's or savings 
association's community development lending, including the number and 
amount of community development loans, and their complexity and 
innovativeness; and
    (5) Innovative or flexible lending practices. The bank's or savings 
association's use of innovative or flexible lending practices in a safe 
and sound manner to address the credit needs of low- or moderate-income 
individuals or geographies.
    (c) Affiliate lending. (1) At a bank's or savings association's 
option, the appropriate Federal banking agency will consider loans by 
an affiliate of the bank or savings association, if the bank or savings 
association provides data on the affiliate's loans pursuant to Sec.  
25.42.
    (2) The appropriate Federal banking agency considers affiliate 
lending subject to the following constraints:
    (i) No affiliate may claim a loan origination or loan purchase if 
another institution claims the same loan origination or purchase; and
    (ii) If a bank or savings association elects to have the 
appropriate Federal banking agency consider loans within a particular 
lending category made by one or more of the bank's or savings 
association's affiliates in a particular assessment area, the bank or 
savings association shall elect to have the appropriate Federal banking 
agency consider, in accordance with paragraph (c)(1) of this section, 
all the loans within that lending category in that particular 
assessment area made by all of the bank's or savings association's 
affiliates.
    (3) The appropriate Federal banking agency does not consider 
affiliate lending in assessing a bank's or savings association's 
performance under paragraph (b)(2)(i) of this section.
    (d) Lending by a consortium or a third party. Community development 
loans originated or purchased by a consortium in which the bank or 
savings association participates or by a third party in which the bank 
or savings association has invested:
    (1) Will be considered, at the bank's or savings association's 
option, if the bank or savings association reports the data pertaining 
to these loans under Sec.  25.42(b)(2); and
    (2) May be allocated among participants or investors, as they 
choose, for purposes of the lending test, except that no participant or 
investor:
    (i) May claim a loan origination or loan purchase if another 
participant or investor claims the same loan origination or purchase; 
or
    (ii) May claim loans accounting for more than its percentage share 
(based on the level of its participation or investment) of the total 
loans originated by the consortium or third party.
    (e) Lending performance rating. The appropriate Federal banking 
agency rates a bank's or savings association's lending performance as 
provided in appendix A of this part.


Sec.  25.23   Investment test.

    (a) Scope of test. The investment test evaluates a bank's or 
savings association's record of helping to meet the credit needs of its 
assessment area(s) through qualified investments that benefit its 
assessment area(s) or a broader statewide or regional area that 
includes the bank's or savings association's assessment area(s).
    (b) Exclusion. Activities considered under the lending or service 
tests may not be considered under the investment test.
    (c) Affiliate investment. At a bank's or savings association's 
option, the appropriate Federal banking agency will consider, in its 
assessment of a bank's or savings association's investment performance, 
a qualified investment made by an affiliate of the bank or savings 
association, if the qualified investment is not claimed by any other 
institution.
    (d) Disposition of branch premises. Donating, selling on favorable 
terms, or making available on a rent-free basis a branch of the bank or 
savings association that is located in a predominantly minority 
neighborhood to a minority depository institution or women's depository 
institution (as these terms are defined in 12 U.S.C. 2907(b)) will be 
considered as a qualified investment.
    (e) Performance criteria. The appropriate Federal banking agency 
evaluates the investment performance of a bank or savings association 
pursuant to the following criteria:
    (1) The dollar amount of qualified investments;
    (2) The innovativeness or complexity of qualified investments;
    (3) The responsiveness of qualified investments to credit and 
community development needs; and
    (4) The degree to which the qualified investments are not routinely 
provided by private investors.
    (f) Investment performance rating. The appropriate Federal banking 
agency

[[Page 71344]]

rates a bank's or savings association's investment performance as 
provided in appendix A of this part.


Sec.  25.24   Service test.

    (a) Scope of test. The service test evaluates a bank's or savings 
association's record of helping to meet the credit needs of its 
assessment area(s) by analyzing both the availability and effectiveness 
of a bank's or savings association's systems for delivering retail 
banking services and the extent and innovativeness of its community 
development services.
    (b) Area(s) benefitted. Community development services must benefit 
a bank's or savings association's assessment area(s) or a broader 
statewide or regional area that includes the bank's or savings 
association's assessment area(s).
    (c) Affiliate service. At a bank's or savings association's option, 
the appropriate Federal banking agency will consider, in its assessment 
of a bank's or savings association's service performance, a community 
development service provided by an affiliate of the bank or savings 
association, if the community development service is not claimed by any 
other institution.
    (d) Performance criteria--retail banking services. The appropriate 
Federal banking agency evaluates the availability and effectiveness of 
a bank's or savings association's systems for delivering retail banking 
services, pursuant to the following criteria:
    (1) The current distribution of the bank's or savings association's 
branches among low-, moderate-, middle-, and upper-income geographies;
    (2) In the context of its current distribution of the bank's or 
savings association's branches, the bank's or savings association's 
record of opening and closing branches, particularly branches located 
in low- or moderate-income geographies or primarily serving low- or 
moderate-income individuals;
    (3) The availability and effectiveness of alternative systems for 
delivering retail banking services (e.g., ATMs, ATMs not owned or 
operated by or exclusively for the bank or savings association, banking 
by telephone or computer, loan production offices, and bank-at-work or 
bank-by-mail programs) in low- and moderate-income geographies and to 
low- and moderate-income individuals; and
    (4) The range of services provided in low-, moderate-, middle-, and 
upper-income geographies and the degree to which the services are 
tailored to meet the needs of those geographies.
    (e) Performance criteria--community development services. The 
appropriate Federal banking agency evaluates community development 
services pursuant to the following criteria:
    (1) The extent to which the bank or savings association provides 
community development services; and
    (2) The innovativeness and responsiveness of community development 
services.
    (f) Service performance rating. The appropriate Federal banking 
agency rates a bank's or savings association's service performance as 
provided in appendix A of this part.


Sec.  25.25   Community development test for wholesale or limited 
purpose banks and savings associations.

    (a) Scope of test. The appropriate Federal banking agency assesses 
a wholesale or limited purpose bank's or savings association's record 
of helping to meet the credit needs of its assessment area(s) under the 
community development test through its community development lending, 
qualified investments, or community development services.
    (b) Designation as a wholesale or limited purpose bank or savings 
association. In order to receive a designation as a wholesale or 
limited purpose bank or savings association, a bank or savings 
association shall file a request, in writing, with the appropriate 
Federal banking agency, at least three months prior to the proposed 
effective date of the designation. If the appropriate Federal banking 
agency approves the designation, it remains in effect until the bank or 
savings association requests revocation of the designation or until one 
year after the appropriate Federal banking agency notifies the bank or 
savings association that the it has revoked the designation on its own 
initiative.
    (c) Performance criteria. The appropriate Federal banking agency 
evaluates the community development performance of a wholesale or 
limited purpose bank or savings association pursuant to the following 
criteria:
    (1) The number and amount of community development loans (including 
originations and purchases of loans and other community development 
loan data provided by the bank or savings association, such as data on 
loans outstanding, commitments, and letters of credit), qualified 
investments, or community development services;
    (2) The use of innovative or complex qualified investments, 
community development loans, or community development services and the 
extent to which the investments are not routinely provided by private 
investors; and
    (3) The bank's or savings association's responsiveness to credit 
and community development needs.
    (d) Indirect activities. At a bank's or savings association's 
option, the appropriate Federal banking agency will consider in its 
community development performance assessment:
    (1) Qualified investments or community development services 
provided by an affiliate of the bank or savings association, if the 
investments or services are not claimed by any other institution; and
    (2) Community development lending by affiliates, consortia and 
third parties, subject to the requirements and limitations in Sec.  
25.22(c) and (d).
    (e) Benefit to assessment area(s)--(1) Benefit inside assessment 
area(s). The appropriate Federal banking agency considers all qualified 
investments, community development loans, and community development 
services that benefit areas within the bank's or savings association's 
assessment area(s) or a broader statewide or regional area that 
includes the bank's or savings association's assessment area(s).
    (2) Benefit outside assessment area(s). The appropriate Federal 
banking agency considers the qualified investments, community 
development loans, and community development services that benefit 
areas outside the bank's or savings association's assessment area(s), 
if the bank or savings association has adequately addressed the needs 
of its assessment area(s).
    (f) Community development performance rating. The appropriate 
Federal banking agency rates a bank's or savings association's 
community development performance as provided in appendix A of this 
part.


Sec.  25.26   Small bank and savings association performance standards.

    (a) Performance criteria--(1) Small banks and savings associations 
that are not intermediate small banks or savings associations. The 
appropriate Federal banking agency evaluates the record of a small bank 
or savings association that is not, or that was not during the prior 
calendar year, an intermediate small bank or savings association, of 
helping to meet the credit needs of its assessment area(s) pursuant to 
the criteria set forth in paragraph (b) of this section.
    (2) Intermediate small banks and savings associations. The 
appropriate Federal banking agency evaluates the record of a small bank 
or savings association that is, or that was during the prior calendar 
year, an intermediate small bank or savings association, of helping to 
meet the credit needs of its

[[Page 71345]]

assessment area(s) pursuant to the criteria set forth in paragraphs (b) 
and (c) of this section.
    (b) Lending test. A small bank's or savings association's lending 
performance is evaluated pursuant to the following criteria:
    (1) The bank's or savings association's loan-to-deposit ratio, 
adjusted for seasonal variation, and, as appropriate, other lending-
related activities, such as loan originations for sale to the secondary 
markets, community development loans, or qualified investments;
    (2) The percentage of loans and, as appropriate, other lending-
related activities located in the bank's or savings association's 
assessment area(s);
    (3) The bank's or savings association's record of lending to and, 
as appropriate, engaging in other lending-related activities for 
borrowers of different income levels and businesses and farms of 
different sizes;
    (4) The geographic distribution of the bank's or savings 
association's loans; and
    (5) The bank's or savings association's record of taking action, if 
warranted, in response to written complaints about its performance in 
helping to meet credit needs in its assessment area(s).
    (c) Community development test. An intermediate small bank's or 
savings association's community development performance also is 
evaluated pursuant to the following criteria:
    (1) The number and amount of community development loans;
    (2) The number and amount of qualified investments;
    (3) The extent to which the bank or savings association provides 
community development services; and
    (4) The bank's or savings association's responsiveness through such 
activities to community development lending, investment, and services 
needs.
    (d) Small bank or savings association performance rating. The 
appropriate Federal banking agency rates the performance of a bank or 
savings association evaluated under this section as provided in 
appendix A of this part.


Sec.  25.27   Strategic plan.

    (a) Alternative election. The appropriate Federal banking agency 
will assess a bank's or savings association's record of helping to meet 
the credit needs of its assessment area(s) under a strategic plan if:
    (1) The bank or savings association has submitted the plan to the 
appropriate Federal banking agency as provided for in this section;
    (2) The appropriate Federal banking agency has approved the plan;
    (3) The plan is in effect; and
    (4) The bank or savings association has been operating under an 
approved plan for at least one year.
    (b) Data reporting. The appropriate Federal banking agency 's 
approval of a plan does not affect the bank's or savings association's 
obligation, if any, to report data as required by Sec.  25.42.
    (c) Plans in general--(1) Term. A plan may have a term of no more 
than five years, and any multi-year plan must include annual interim 
measurable goals under which the appropriate Federal banking agency 
will evaluate the bank's or savings association's performance.
    (2) Multiple assessment areas. A bank or savings association with 
more than one assessment area may prepare a single plan for all of its 
assessment areas or one or more plans for one or more of its assessment 
areas.
    (3) Treatment of affiliates. Affiliated institutions may prepare a 
joint plan if the plan provides measurable goals for each institution. 
Activities may be allocated among institutions at the institutions' 
option, provided that the same activities are not considered for more 
than one institution.
    (d) Public participation in plan development. Before submitting a 
plan to the appropriate Federal banking agency for approval, a bank or 
savings association shall:
    (1) Informally seek suggestions from members of the public in its 
assessment area(s) covered by the plan while developing the plan;
    (2) Once the bank or savings association has developed a plan, 
formally solicit public comment on the plan for at least 30 days by 
publishing notice in at least one newspaper of general circulation in 
each assessment area covered by the plan; and
    (3) During the period of formal public comment, make copies of the 
plan available for review by the public at no cost at all offices of 
the bank or savings association in any assessment area covered by the 
plan and provide copies of the plan upon request for a reasonable fee 
to cover copying and mailing, if applicable.
    (e) Submission of plan. The bank or savings association shall 
submit its plan to the appropriate Federal banking agency at least 
three months prior to the proposed effective date of the plan. The bank 
or savings association shall also submit with its plan a description of 
its informal efforts to seek suggestions from members of the public, 
any written public comment received, and, if the plan was revised in 
light of the comment received, the initial plan as released for public 
comment.
    (f) Plan content--(1) Measurable goals. (i) A bank or savings 
association shall specify in its plan measurable goals for helping to 
meet the credit needs of each assessment area covered by the plan, 
particularly the needs of low- and moderate-income geographies and low- 
and moderate-income individuals, through lending, investment, and 
services, as appropriate.
    (ii) A bank or savings association shall address in its plan all 
three performance categories and, unless the bank or savings 
association has been designated as a wholesale or limited purpose bank 
or savings association, shall emphasize lending and lending-related 
activities. Nevertheless, a different emphasis, including a focus on 
one or more performance categories, may be appropriate if responsive to 
the characteristics and credit needs of its assessment area(s), 
considering public comment and the bank's or savings association's 
capacity and constraints, product offerings, and business strategy.
    (2) Confidential information. A bank or savings association may 
submit additional information to the appropriate Federal banking agency 
on a confidential basis, but the goals stated in the plan must be 
sufficiently specific to enable the public and the appropriate Federal 
banking agency to judge the merits of the plan.
    (3) Satisfactory and outstanding goals. A bank or savings 
association shall specify in its plan measurable goals that constitute 
``satisfactory'' performance. A plan may specify measurable goals that 
constitute ``outstanding'' performance. If a bank or savings 
association submits, and the appropriate Federal banking agency 
approves, both ``satisfactory'' and ``outstanding'' performance goals, 
the appropriate Federal banking agency will consider the bank or 
savings association eligible for an ``outstanding'' performance rating.
    (4) Election if satisfactory goals not substantially met. A bank or 
savings association may elect in its plan that, if the bank or savings 
association fails to meet substantially its plan goals for a 
satisfactory rating, the appropriate Federal banking agency will 
evaluate the bank's or savings association's performance under the 
lending, investment, and service tests, the community development test, 
or the small bank or savings association performance standards, as 
appropriate.
    (g) Plan approval--(1) Timing. The appropriate Federal banking 
agency will act upon a plan within 60 calendar days after the 
appropriate Federal banking agency receives the complete plan and other 
material required under paragraph

[[Page 71346]]

(e) of this section. If the appropriate Federal banking agency fails to 
act within this time period, the plan shall be deemed approved unless 
the appropriate Federal banking agency extends the review period for 
good cause.
    (2) Public participation. In evaluating the plan's goals, the 
appropriate Federal banking agency considers the public's involvement 
in formulating the plan, written public comment on the plan, and any 
response by the bank or savings association to public comment on the 
plan.
    (3) Criteria for evaluating plan. The appropriate Federal banking 
agency evaluates a plan's measurable goals using the following 
criteria, as appropriate:
    (i) The extent and breadth of lending or lending-related 
activities, including, as appropriate, the distribution of loans among 
different geographies, businesses and farms of different sizes, and 
individuals of different income levels, the extent of community 
development lending, and the use of innovative or flexible lending 
practices to address credit needs;
    (ii) The amount and innovativeness, complexity, and responsiveness 
of the bank's or savings association's qualified investments; and
    (iii) The availability and effectiveness of the bank's or savings 
association's systems for delivering retail banking services and the 
extent and innovativeness of the bank's or savings association's 
community development services.
    (h) Plan amendment. During the term of a plan, a bank or savings 
association may request the appropriate Federal banking agency to 
approve an amendment to the plan on grounds that there has been a 
material change in circumstances. The bank or savings association shall 
develop an amendment to a previously approved plan in accordance with 
the public participation requirements of paragraph (d) of this section.
    (i) Plan assessment. The appropriate Federal banking agency 
approves the goals and assesses performance under a plan as provided 
for in appendix A of this part.


Sec.  25.28   Assigned ratings.

    (a) Ratings in general. Subject to paragraphs (b) and (c) of this 
section, the appropriate Federal banking agency assigns to a bank or 
savings association a rating of ``outstanding,'' ``satisfactory,'' 
``needs to improve,'' or ``substantial noncompliance'' based on the 
bank's or savings association's performance under the lending, 
investment and service tests, the community development test, the small 
bank or savings association performance standards, or an approved 
strategic plan, as applicable.
    (b) Lending, investment, and service tests. The appropriate Federal 
banking agency assigns a rating for a bank or savings association 
assessed under the lending, investment, and service tests in accordance 
with the following principles:
    (1) A bank or savings association that receives an ``outstanding'' 
rating on the lending test receives an assigned rating of at least 
``satisfactory'';
    (2) A bank or savings association that receives an ``outstanding'' 
rating on both the service test and the investment test and a rating of 
at least ``high satisfactory'' on the lending test receives an assigned 
rating of ``outstanding''; and
    (3) No bank or savings association may receive an assigned rating 
of ``satisfactory'' or higher unless it receives a rating of at least 
``low satisfactory'' on the lending test.
    (c) Effect of evidence of discriminatory or other illegal credit 
practices. (1) The appropriate Federal banking agency 's evaluation of 
a bank's or savings association's CRA performance is adversely affected 
by evidence of discriminatory or other illegal credit practices in any 
geography by the bank or savings association or in any assessment area 
by any affiliate whose loans have been considered as part of the bank's 
or savings association's lending performance. In connection with any 
type of lending activity described in Sec.  25.22(a), evidence of 
discriminatory or other credit practices that violate an applicable 
law, rule, or regulation includes, but is not limited to:
    (i) Discrimination against applicants on a prohibited basis in 
violation, for example, of the Equal Credit Opportunity Act or the Fair 
Housing Act;
    (ii) Violations of the Home Ownership and Equity Protection Act;
    (iii) Violations of section 5 of the Federal Trade Commission Act;
    (iv) Violations of section 8 of the Real Estate Settlement 
Procedures Act; and
    (v) Violations of the Truth in Lending Act provisions regarding a 
consumer's right of rescission.
    (2) In determining the effect of evidence of practices described in 
paragraph (c)(1) of this section on the bank's or savings association's 
assigned rating, the appropriate Federal banking agency considers the 
nature, extent, and strength of the evidence of the practices; the 
policies and procedures that the bank or savings association (or 
affiliate, as applicable) has in place to prevent the practices; any 
corrective action that the bank or savings association (or affiliate, 
as applicable) has taken or has committed to take, including voluntary 
corrective action resulting from self-assessment; and any other 
relevant information.


Sec.  25.29   Effect of CRA performance on applications.

    (a) CRA performance. Among other factors, the appropriate Federal 
banking agency takes into account the record of performance under the 
CRA of each applicant bank or savings association, and for applications 
under 10(e) of the Home Owners' Loan Act (12 U.S.C. 1467a(e)), of each 
proposed subsidiary savings association, in considering an application 
for:
    (1) The establishment of:
    (i) A domestic branch for insured national banks; or
    (ii) A domestic branch or other facility that would be authorized 
to take deposits for savings associations;
    (2) The relocation of the main office or a branch;
    (3) The merger or consolidation with or the acquisition of assets 
or assumption of liabilities of an insured depository institution 
requiring approval under the Bank Merger Act (12 U.S.C. 1828(c)); and
    (4) The conversion of an insured depository institution to a 
national bank or Federal savings association charter; and
    (5) Acquisitions subject to section 10(e) of the Home Owners' Loan 
Act (12 U.S.C. 1467a(e)).
    (b) Charter application. (1) An applicant (other than an insured 
depository institution) for a national bank charter shall submit with 
its application a description of how it will meet its CRA objectives. 
The OCC takes the description into account in considering the 
application and may deny or condition approval on that basis.
    (2) An applicant for a Federal savings association charter shall 
submit with its application a description of how it will meet its CRA 
objectives. The appropriate Federal banking agency takes the 
description into account in considering the application and may deny or 
condition approval on that basis.
    (c) Interested parties. The appropriate Federal banking agency 
takes into account any views expressed by interested parties that are 
submitted in accordance with the applicable comment procedures in 
considering CRA performance in an application listed in paragraphs (a) 
and (b) of this section.

[[Page 71347]]

    (d) Denial or conditional approval of application. A bank's or 
savings association's record of performance may be the basis for 
denying or conditioning approval of an application listed in paragraph 
(a) of this section.
    (e) Insured depository institution. For purposes of this section, 
the term ``insured depository institution'' has the meaning given to 
that term in 12 U.S.C. 1813.

Subpart C--Records, Reporting, and Disclosure Requirements


Sec.  25.41   Assessment area delineation.

    (a) In general. A bank or savings association shall delineate one 
or more assessment areas within which the appropriate Federal banking 
agency evaluates the bank's or savings association's record of helping 
to meet the credit needs of its community. The appropriate Federal 
banking agency does not evaluate the bank's or savings association's 
delineation of its assessment area(s) as a separate performance 
criterion, but the appropriate Federal banking agency reviews the 
delineation for compliance with the requirements of this section.
    (b) Geographic area(s) for wholesale or limited purpose banks or 
savings associations. The assessment area(s) for a wholesale or limited 
purpose bank or savings association must consist generally of one or 
more MSAs or metropolitan divisions (using the MSA or metropolitan 
division boundaries that were in effect as of January 1 of the calendar 
year in which the delineation is made) or one or more contiguous 
political subdivisions, such as counties, cities, or towns, in which 
the bank or savings association has its main office, branches, and 
deposit-taking ATMs.
    (c) Geographic area(s) for other banks and savings association. The 
assessment area(s) for a bank or savings association other than a 
wholesale or limited purpose bank or savings association must:
    (1) Consist generally of one or more MSAs or metropolitan divisions 
(using the MSA or metropolitan division boundaries that were in effect 
as of January 1 of the calendar year in which the delineation is made) 
or one or more contiguous political subdivisions, such as counties, 
cities, or towns; and
    (2) Include the geographies in which the bank or savings 
association has its main office, its branches, and its deposit-taking 
ATMs, as well as the surrounding geographies in which the bank or 
savings association has originated or purchased a substantial portion 
of its loans (including home mortgage loans, small business and small 
farm loans, and any other loans the bank or savings association 
chooses, such as those consumer loans on which the bank or savings 
association elects to have its performance assessed).
    (d) Adjustments to geographic area(s). A bank or savings 
association may adjust the boundaries of its assessment area(s) to 
include only the portion of a political subdivision that it reasonably 
can be expected to serve. An adjustment is particularly appropriate in 
the case of an assessment area that otherwise would be extremely large, 
of unusual configuration, or divided by significant geographic 
barriers.
    (e) Limitations on the delineation of an assessment area. Each 
bank's or savings associations assessment area(s):
    (1) Must consist only of whole geographies;
    (2) May not reflect illegal discrimination;
    (3) May not arbitrarily exclude low- or moderate-income 
geographies, taking into account the bank's or savings association's 
size and financial condition; and
    (4) May not extend substantially beyond an MSA boundary or beyond a 
state boundary unless the assessment area is located in a multistate 
MSA. If a bank or savings association serves a geographic area that 
extends substantially beyond a state boundary, the bank or savings 
association shall delineate separate assessment areas for the areas in 
each state. If a bank or savings association serves a geographic area 
that extends substantially beyond an MSA boundary, the bank or savings 
association shall delineate separate assessment areas for the areas 
inside and outside the MSA.
    (f) Banks and savings association serving military personnel. 
Notwithstanding the requirements of this section, a bank or savings 
association whose business predominantly consists of serving the needs 
of military personnel or their dependents who are not located within a 
defined geographic area may delineate its entire deposit customer base 
as its assessment area.
    (g) Use of assessment area(s). The appropriate Federal banking 
agency uses the assessment area(s) delineated by a bank or savings 
association in its evaluation of the bank's or savings association's 
CRA performance unless the appropriate Federal banking agency 
determines that the assessment area(s) do not comply with the 
requirements of this section.


Sec.  25.42   Data collection, reporting, and disclosure.

    (a) Loan information required to be collected and maintained. A 
bank or savings association, except a small bank or savings 
association, shall collect, and maintain in machine readable form (as 
prescribed by the appropriate Federal banking agency) until the 
completion of its next CRA examination, the following data for each 
small business or small farm loan originated or purchased by the bank 
or savings association:
    (1) A unique number or alpha-numeric symbol that can be used to 
identify the relevant loan file;
    (2) The loan amount at origination;
    (3) The loan location; and
    (4) An indicator whether the loan was to a business or farm with 
gross annual revenues of $1 million or less.
    (b) Loan information required to be reported. A bank or savings 
association, except a small bank or savings association or a bank or 
savings association that was a small bank or savings association during 
the prior calendar year, shall report annually by March 1 to the 
appropriate Federal banking agency in machine readable form (as 
prescribed by the appropriate Federal banking agency) the following 
data for the prior calendar year:
    (1) Small business and small farm loan data. For each geography in 
which the bank or savings association originated or purchased a small 
business or small farm loan, the aggregate number and amount of loans:
    (i) With an amount at origination of $100,000 or less;
    (ii) With amount at origination of more than $100,000 but less than 
or equal to $250,000;
    (iii) With an amount at origination of more than $250,000; and
    (iv) To businesses and farms with gross annual revenues of $1 
million or less (using the revenues that the bank or savings 
association considered in making its credit decision);
    (2) Community development loan data. The aggregate number and 
aggregate amount of community development loans originated or 
purchased; and
    (3) Home mortgage loans. If the bank or savings association is 
subject to reporting under part 1003 of this title, the location of 
each home mortgage loan application, origination, or purchase outside 
the MSAs in which the bank or savings association has a home or branch 
office (or outside any MSA) in accordance with the requirements of part 
1003 of this title.
    (c) Optional data collection and maintenance--(1) Consumer loans. A 
bank or savings association may collect

[[Page 71348]]

and maintain in machine readable form (as prescribed by the appropriate 
Federal banking agency) data for consumer loans originated or purchased 
by the bank or savings association for consideration under the lending 
test. A bank or savings association may maintain data for one or more 
of the following categories of consumer loans: Motor vehicle, credit 
card, other secured, and other unsecured. If the bank or savings 
association maintains data for loans in a certain category, it shall 
maintain data for all loans originated or purchased within that 
category. The bank or savings association shall maintain data 
separately for each category, including for each loan:
    (i) A unique number or alpha-numeric symbol that can be used to 
identify the relevant loan file;
    (ii) The loan amount at origination or purchase;
    (iii) The loan location; and
    (iv) The gross annual income of the borrower that the bank or 
savings association considered in making its credit decision.
    (2) Other loan data. At its option, a bank or savings association 
may provide other information concerning its lending performance, 
including additional loan distribution data.
    (d) Data on affiliate lending. A bank or savings association that 
elects to have the appropriate Federal banking agency consider loans by 
an affiliate, for purposes of the lending or community development test 
or an approved strategic plan, shall collect, maintain, and report for 
those loans the data that the bank or savings association would have 
collected, maintained, and reported pursuant to paragraphs (a), (b), 
and (c) of this section had the loans been originated or purchased by 
the bank or savings association. For home mortgage loans, the bank or 
savings association shall also be prepared to identify the home 
mortgage loans reported under part 1003 of this title by the affiliate.
    (e) Data on lending by a consortium or a third party. A bank or 
savings association that elects to have the appropriate Federal banking 
agency consider community development loans by a consortium or third 
party, for purposes of the lending or community development tests or an 
approved strategic plan, shall report for those loans the data that the 
bank or savings association would have reported under paragraph (b)(2) 
of this section had the loans been originated or purchased by the bank 
or savings association.
    (f) Small banks and savings associations electing evaluation under 
the lending, investment, and service tests. A bank or savings 
association that qualifies for evaluation under the small bank or 
savings association performance standards but elects evaluation under 
the lending, investment, and service tests shall collect, maintain, and 
report the data required for other banks or savings association 
pursuant to paragraphs (a) and (b) of this section.
    (g) Assessment area data. A bank or savings association, except a 
small bank or savings association or a bank or savings association that 
was a small bank or savings association during the prior calendar year, 
shall collect and report to the appropriate Federal banking agency by 
March 1 of each year a list for each assessment area showing the 
geographies within the area.
    (h) CRA Disclosure Statement. The appropriate Federal banking 
agency prepares annually for each bank or savings association that 
reports data pursuant to this section a CRA Disclosure Statement that 
contains, on a state-by-state basis:
    (1) For each county (and for each assessment area smaller than a 
county) with a population of 500,000 persons or fewer in which the bank 
or savings association reported a small business or small farm loan:
    (i) The number and amount of small business and small farm loans 
reported as originated or purchased located in low-, moderate-, middle-
, and upper-income geographies;
    (ii) A list grouping each geography according to whether the 
geography is low-, moderate-, middle-, or upper-income;
    (iii) A list showing each geography in which the bank or savings 
association reported a small business or small farm loan; and
    (iv) The number and amount of small business and small farm loans 
to businesses and farms with gross annual revenues of $1 million or 
less;
    (2) For each county (and for each assessment area smaller than a 
county) with a population in excess of 500,000 persons in which the 
bank or savings association reported a small business or small farm 
loan:
    (i) The number and amount of small business and small farm loans 
reported as originated or purchased located in geographies with median 
income relative to the area median income of less than 10 percent, 10 
or more but less than 20 percent, 20 or more but less than 30 percent, 
30 or more but less than 40 percent, 40 or more but less than 50 
percent, 50 or more but less than 60 percent, 60 or more but less than 
70 percent, 70 or more but less than 80 percent, 80 or more but less 
than 90 percent, 90 or more but less than 100 percent, 100 or more but 
less than 110 percent, 110 or more but less than 120 percent, and 120 
percent or more;
    (ii) A list grouping each geography in the county or assessment 
area according to whether the median income in the geography relative 
to the area median income is less than 10 percent, 10 or more but less 
than 20 percent, 20 or more but less than 30 percent, 30 or more but 
less than 40 percent, 40 or more but less than 50 percent, 50 or more 
but less than 60 percent, 60 or more but less than 70 percent, 70 or 
more but less than 80 percent, 80 or more but less than 90 percent, 90 
or more but less than 100 percent, 100 or more but less than 110 
percent, 110 or more but less than 120 percent, and 120 percent or 
more;
    (iii) A list showing each geography in which the bank or savings 
association reported a small business or small farm loan; and
    (iv) The number and amount of small business and small farm loans 
to businesses and farms with gross annual revenues of $1 million or 
less;
    (3) The number and amount of small business and small farm loans 
located inside each assessment area reported by the bank or savings 
association and the number and amount of small business and small farm 
loans located outside the assessment area(s) reported by the bank or 
savings association; and
    (4) The number and amount of community development loans reported 
as originated or purchased.
    (i) Aggregate disclosure statements. The OCC, in conjunction with 
the Board of Governors of the Federal Reserve System and the FDIC, 
prepares annually, for each MSA or metropolitan division (including an 
MSA or metropolitan division that crosses a state boundary) and the 
nonmetropolitan portion of each state, an aggregate disclosure 
statement of small business and small farm lending by all institutions 
subject to reporting under this part or parts 228 or 345 of this title. 
These disclosure statements indicate, for each geography, the number 
and amount of all small business and small farm loans originated or 
purchased by reporting institutions, except that the appropriate 
Federal banking agency may adjust the form of the disclosure if 
necessary, because of special circumstances, to protect the privacy of 
a borrower or the competitive position of an institution.
    (j) Central data depositories. The appropriate Federal banking 
agency makes the aggregate disclosure statements, described in 
paragraph (i) of

[[Page 71349]]

this section, and the individual bank or savings association CRA 
Disclosure Statements, described in paragraph (h) of this section, 
available to the public at central data depositories. The appropriate 
Federal banking agency publishes a list of the depositories at which 
the statements are available.


Sec.  25.43   Content and availability of public file.

    (a) Information available to the public. A bank or savings 
association shall maintain a public file that includes the following 
information:
    (1) All written comments received from the public for the current 
year and each of the prior two calendar years that specifically relate 
to the bank's or savings association's performance in helping to meet 
community credit needs, and any response to the comments by the bank or 
savings association, if neither the comments nor the responses contain 
statements that reflect adversely on the good name or reputation of any 
persons other than the bank or savings association or publication of 
which would violate specific provisions of law;
    (2) A copy of the public section of the bank's or savings 
association's most recent CRA Performance Evaluation prepared by the 
appropriate Federal banking agency. The bank or savings association 
shall place this copy in the public file within 30 business days after 
its receipt from the appropriate Federal banking agency;
    (3) A list of the bank's or savings association's branches, their 
street addresses, and geographies;
    (4) A list of branches opened or closed by the bank or savings 
association during the current year and each of the prior two calendar 
years, their street addresses, and geographies;
    (5) A list of services (including hours of operation, available 
loan and deposit products, and transaction fees) generally offered at 
the bank's or savings association's branches and descriptions of 
material differences in the availability or cost of services at 
particular branches, if any. At its option, a bank or savings 
association may include information regarding the availability of 
alternative systems for delivering retail banking services (e.g., ATMs, 
ATMs not owned or operated by or exclusively for the bank or savings 
association, banking by telephone or computer, loan production offices, 
and bank-at-work or bank-by-mail programs);
    (6) A map of each assessment area showing the boundaries of the 
area and identifying the geographies contained within the area, either 
on the map or in a separate list; and
    (7) Any other information the bank or savings association chooses.
    (b) Additional information available to the public--(1) Banks and 
savings associations other than small banks or savings associations. A 
bank or savings association, except a small bank or savings association 
or a bank or savings association that was a small bank or savings 
association during the prior calendar year, shall include in its public 
file the following information pertaining to the bank or savings 
association and its affiliates, if applicable, for each of the prior 
two calendar years:
    (i) If the bank or savings association has elected to have one or 
more categories of its consumer loans considered under the lending 
test, for each of these categories, the number and amount of loans:
    (A) To low-, moderate-, middle-, and upper-income individuals;
    (B) Located in low-, moderate-, middle-, and upper-income census 
tracts; and
    (C) Located inside the bank's or savings association's assessment 
area(s) and outside the bank's or savings association's assessment 
area(s); and
    (ii) The bank's or savings association's CRA Disclosure Statement. 
The bank or savings association shall place the statement in the public 
file within three business days of its receipt from the appropriate 
Federal banking agency.
    (2) Banks and savings associations required to report Home Mortgage 
Disclosure Act (HMDA) data. A bank or savings association required to 
report home mortgage loan data pursuant part 1003 of this title shall 
include in its public file a written notice that the institution's HMDA 
Disclosure Statement may be obtained on the Consumer Financial 
Protection Bureau's (Bureau's) website at www.consumerfinance.gov/hmda. 
In addition, a bank or savings association that elected to have the 
appropriate Federal banking agency consider the mortgage lending of an 
affiliate shall include in its public file the name of the affiliate 
and a written notice that the affiliate's HMDA Disclosure Statement may 
be obtained at the Bureau's website. The bank or savings association 
shall place the written notice(s) in the public file within three 
business days after receiving notification from the Federal Financial 
Institutions Examination Council of the availability of the disclosure 
statement(s).
    (3) Small banks and savings associations. A small bank or savings 
association or a bank or savings association that was a small bank or 
savings association during the prior calendar year shall include in its 
public file:
    (i) The bank's or savings association's loan-to-deposit ratio for 
each quarter of the prior calendar year and, at its option, additional 
data on its loan-to-deposit ratio; and
    (ii) The information required for other banks or savings 
associations by paragraph (b)(1) of this section, if the bank or 
savings association has elected to be evaluated under the lending, 
investment, and service tests.
    (4) Banks and savings associations with strategic plans. A bank or 
savings association that has been approved to be assessed under a 
strategic plan shall include in its public file a copy of that plan. A 
bank or savings association need not include information submitted to 
the appropriate Federal banking agency on a confidential basis in 
conjunction with the plan.
    (5) Banks and savings associations with less than satisfactory 
ratings. A bank or savings association that received a less than 
satisfactory rating during its most recent examination shall include in 
its public file a description of its current efforts to improve its 
performance in helping to meet the credit needs of its entire 
community. The bank or savings association shall update the description 
quarterly.
    (c) Location of public information. A bank or savings association 
shall make available to the public for inspection upon request and at 
no cost the information required in this section as follows:
    (1) At the main office and, if an interstate bank or savings 
association, at one branch office in each state, all information in the 
public file; and
    (2) At each branch:
    (i) A copy of the public section of the bank's or savings 
association's most recent CRA Performance Evaluation and a list of 
services provided by the branch; and
    (ii) Within five calendar days of the request, all the information 
in the public file relating to the assessment area in which the branch 
is located.
    (d) Copies. Upon request, a bank or savings association shall 
provide copies, either on paper or in another form acceptable to the 
person making the request, of the information in its public file. The 
bank or savings association may charge a reasonable fee not to exceed 
the cost of copying and mailing (if applicable).
    (e) Updating. Except as otherwise provided in this section, a bank 
or savings association shall ensure that the information required by 
this section is current as of April 1 of each year.

[[Page 71350]]

Sec.  25.44   Public notice by banks and savings associations.

    A bank or savings association shall provide in the public lobby of 
its main office and each of its branches the appropriate public notice 
set forth in appendix B of this part. Only a branch of a bank or 
savings association having more than one assessment area shall include 
the bracketed material in the notice for branch offices. Only an 
insured national bank that is an affiliate of a holding company shall 
include the next to the last sentence of the notices. An insured 
national bank shall include the last sentence of the notices only if it 
is an affiliate of a holding company that is not prevented by statute 
from acquiring additional banks. Only a savings association that is an 
affiliate of a holding company shall include the last two sentences of 
the notices.


Sec.  25.45   Publication of planned examination schedule.

    The appropriate Federal banking agency publishes at least 30 days 
in advance of the beginning of each calendar quarter a list of banks 
and savings associations scheduled for CRA examinations in that 
quarter.

Subpart D--Transition Provisions


Sec.  25.51   Consideration of Bank Activities.

    (a) In assessing a bank's CRA performance, the appropriate Federal 
banking agency will consider any loan, investment, or service that was 
eligible for CRA consideration at the time the bank conducted the 
activity.
    (b) Notwithstanding paragraph (a), in assessing a bank's CRA 
performance, the appropriate Federal banking agency will consider any 
loan or investment that was eligible for CRA consideration at the time 
the bank entered into a legally binding commitment to make the loan or 
investment.


Sec.  25.52  Strategic Plan Retention.

    A bank or savings association strategic plan approved by the 
appropriate Federal banking agency and in effect as of December 31, 
2021, remains in effect, except that provisions of the plan that are 
not consistent with this part in effect as of January 1, 2022, are 
void, unless amended pursuant to Sec.  25.27.

Subpart E--Prohibition Against Use of Interstate Branches Primarily 
for Deposit Production


Sec.  25.61  Purpose and scope.

    (a) Purpose. The purpose of this subpart is to implement section 
109 (12 U.S.C. 1835a) of the Riegle-Neal Interstate Banking and 
Branching Efficiency Act of 1994 (Interstate Act).
    (b) Scope. (1) This subpart applies to any national bank that has 
operated a covered interstate branch for a period of at least one year, 
and any foreign bank that has operated a covered interstate branch that 
is a Federal branch for a period of at least one year.
    (2) This subpart describes the requirements imposed under 12 U.S.C. 
1835a, which requires the appropriate Federal banking agencies (the 
OCC, the Board of Governors of the Federal Reserve System, and the 
FDIC) to prescribe uniform rules that prohibit a bank from using any 
authority to engage in interstate branching pursuant to the Interstate 
Act, or any amendment made by the Interstate Act to any other provision 
of law, primarily for the purpose of deposit production.


Sec.  25.62  Definitions.

    For purposes of this subpart, the following definitions apply:
    (a) Bank means, unless the context indicates otherwise:
    (1) A national bank; and
    (2) A foreign bank as that term is defined in 12 U.S.C. 3101(7) and 
12 CFR 28.11(i).
    (b) Covered interstate branch means:
    (1) Any branch of a national bank, and any Federal branch of a 
foreign bank, that:
    (i) Is established or acquired outside the bank's home State 
pursuant to the interstate branching authority granted by the 
Interstate Act or by any amendment made by the Interstate Act to any 
other provision of law; or
    (ii) Could not have been established or acquired outside of the 
bank's home State but for the establishment or acquisition of a branch 
described in paragraph (b)(1)(i) of this section; and
    (2) Any bank or branch of a bank controlled by an out-of-State bank 
holding company.
    (c) Federal branch means Federal branch as that term is defined in 
12 U.S.C. 3101(6) and 12 CFR 28.11(h).
    (d) Home State means:
    (1) With respect to a State bank, the State that chartered the 
bank;
    (2) With respect to a national bank, the State in which the main 
office of the bank is located;
    (3) With respect to a bank holding company, the State in which the 
total deposits of all banking subsidiaries of such company are the 
largest on the later of:
    (i) July 1, 1966; or
    (ii) The date on which the company becomes a bank holding company 
under the Bank Holding Company Act;
    (4) With respect to a foreign bank:
    (i) For purposes of determining whether a U.S. branch of a foreign 
bank is a covered interstate branch, the home State of the foreign bank 
as determined in accordance with 12 U.S.C. 3103(c) and 12 CFR 28.11(n); 
and
    (ii) For purposes of determining whether a branch of a U.S. bank 
controlled by a foreign bank is a covered interstate branch, the State 
in which the total deposits of all banking subsidiaries of such foreign 
bank are the largest on the later of:
    (A) July 1, 1966; or
    (B) The date on which the foreign bank becomes a bank holding 
company under the Bank Holding Company Act.
    (e) Host State means a State in which a covered interstate branch 
is established or acquired.
    (f) Host state loan-to-deposit ratio generally means, with respect 
to a particular host state, the ratio of total loans in the host state 
relative to total deposits from the host state for all banks (including 
institutions covered under the definition of ``bank'' in 12 U.S.C. 
1813(a)(1)) that have that state as their home state, as determined and 
updated periodically by the appropriate Federal banking agencies and 
made available to the public.
    (g) Out-of-State bank holding company means, with respect to any 
State, a bank holding company whose home State is another State.
    (h) State means state as that term is defined in 12 U.S.C. 
1813(a)(3).
    (i) Statewide loan-to-deposit ratio means, with respect to a bank, 
the ratio of the bank's loans to its deposits in a state in which the 
bank has one or more covered interstate branches, as determined by the 
OCC.


Sec.  25.63  Loan-to-deposit ratio screen.

    (a) Application of screen. Beginning no earlier than one year after 
a covered interstate branch is acquired or established, the OCC will 
consider whether the bank's statewide loan-to-deposit ratio is less 
than 50 percent of the relevant host State loan-to-deposit ratio.
    (b) Results of screen. (1) If the OCC determines that the bank's 
statewide loan-to-deposit ratio is 50 percent or more of the host state 
loan-to-deposit ratio, no further consideration under this subpart is 
required.
    (2) If the OCC determines that the bank's statewide loan-to-deposit 
ratio is less than 50 percent of the host state loan-to-deposit ratio, 
or if reasonably available data are insufficient to calculate the 
bank's statewide loan-to-deposit ratio, the OCC will make a credit 
needs determination for the bank as provided in Sec.  25.64.

[[Page 71351]]

Sec.  25.64  Credit needs determination.

    (a) In general. The OCC will review the loan portfolio of the bank 
and determine whether the bank is reasonably helping to meet the credit 
needs of the communities in the host state that are served by the bank.
    (b) Guidelines. The OCC will use the following considerations as 
guidelines when making the determination pursuant to paragraph (a) of 
this section:
    (1) Whether covered interstate branches were formerly part of a 
failed or failing depository institution;
    (2) Whether covered interstate branches were acquired under 
circumstances where there was a low loan-to-deposit ratio because of 
the nature of the acquired institution's business or loan portfolio;
    (3) Whether covered interstate branches have a high concentration 
of commercial or credit card lending, trust services, or other 
specialized activities, including the extent to which the covered 
interstate branches accept deposits in the host state;
    (4) The CRA ratings received by the bank, if any;
    (5) Economic conditions, including the level of loan demand, within 
the communities served by the covered interstate branches;
    (6) The safe and sound operation and condition of the bank; and
    (7) The OCC's CRA regulations (subparts A through D of this part) 
and interpretations of those regulations.


Sec.  25.65  Sanctions.

    (a) In general. If the OCC determines that a bank is not reasonably 
helping to meet the credit needs of the communities served by the bank 
in the host state, and that the bank's statewide loan-to-deposit ratio 
is less than 50 percent of the host state loan-to-deposit ratio, the 
OCC:
    (1) May order that a bank's covered interstate branch or branches 
be closed unless the bank provides reasonable assurances to the 
satisfaction of the OCC, after an opportunity for public comment, that 
the bank has an acceptable plan under which the bank will reasonably 
help to meet the credit needs of the communities served by the bank in 
the host state; and
    (2) Will not permit the bank to open a new branch in the host state 
that would be considered to be a covered interstate branch unless the 
bank provides reasonable assurances to the satisfaction of the OCC, 
after an opportunity for public comment, that the bank will reasonably 
help to meet the credit needs of the community that the new branch will 
serve.
    (b) Notice prior to closure of a covered interstate branch. Before 
exercising the OCC's authority to order the bank to close a covered 
interstate branch, the OCC will issue to the bank a notice of the OCC's 
intent to order the closure and will schedule a hearing within 60 days 
of issuing the notice.
    (c) Hearing. The OCC will conduct a hearing scheduled under 
paragraph (b) of this section in accordance with the provisions of 12 
U.S.C. 1818(h) and 12 CFR part 19.

Appendix A to Part 25--Ratings

    (a) Ratings in general. (1) In assigning a rating, the 
appropriate Federal banking agency evaluates a bank's or savings 
association's performance under the applicable performance criteria 
in this part, in accordance with Sec. Sec.  25.21 and 25.28. This 
includes consideration of low-cost education loans provided to low-
income borrowers and activities in cooperation with minority- or 
women-owned financial institutions and low-income credit unions, as 
well as adjustments on the basis of evidence of discriminatory or 
other illegal credit practices.
    (2) A bank's or savings association's performance need not fit 
each aspect of a particular rating profile in order to receive that 
rating, and exceptionally strong performance with respect to some 
aspects may compensate for weak performance in others. The bank's or 
savings association's overall performance, however, must be 
consistent with safe and sound banking practices and generally with 
the appropriate rating profile as follows.
    (b) Banks and savings associations evaluated under the lending, 
investment, and service tests--(1) Lending performance rating. The 
appropriate Federal banking agency assigns each bank's or savings 
association's lending performance one of the five following ratings.
    (i) Outstanding. The appropriate Federal banking agency rates a 
bank's or savings association's lending performance ``outstanding'' 
if, in general, it demonstrates:
    (A) Excellent responsiveness to credit needs in its assessment 
area(s), taking into account the number and amount of home mortgage, 
small business, small farm, and consumer loans, if applicable, in 
its assessment area(s);
    (B) A substantial majority of its loans are made in its 
assessment area(s);
    (C) An excellent geographic distribution of loans in its 
assessment area(s);
    (D) An excellent distribution, particularly in its assessment 
area(s), of loans among individuals of different income levels and 
businesses (including farms) of different sizes, given the product 
lines offered by the bank or savings association;
    (E) An excellent record of serving the credit needs of highly 
economically disadvantaged areas in its assessment area(s), low-
income individuals, or businesses (including farms) with gross 
annual revenues of $1 million or less, consistent with safe and 
sound operations;
    (F) Extensive use of innovative or flexible lending practices in 
a safe and sound manner to address the credit needs of low- or 
moderate-income individuals or geographies; and
    (G) It is a leader in making community development loans.
    (ii) High satisfactory. The appropriate Federal banking agency 
rates a bank's or savings association's lending performance ``high 
satisfactory'' if, in general, it demonstrates:
    (A) Good responsiveness to credit needs in its assessment 
area(s), taking into account the number and amount of home mortgage, 
small business, small farm, and consumer loans, if applicable, in 
its assessment area(s);
    (B) A high percentage of its loans are made in its assessment 
area(s);
    (C) A good geographic distribution of loans in its assessment 
area(s);
    (D) A good distribution, particularly in its assessment area(s), 
of loans among individuals of different income levels and businesses 
(including farms) of different sizes, given the product lines 
offered by the bank or savings association;
    (E) A good record of serving the credit needs of highly 
economically disadvantaged areas in its assessment area(s), low-
income individuals, or businesses (including farms) with gross 
annual revenues of $1 million or less, consistent with safe and 
sound operations;
    (F) Use of innovative or flexible lending practices in a safe 
and sound manner to address the credit needs of low- or moderate-
income individuals or geographies; and
    (G) It has made a relatively high level of community development 
loans.
    (iii) Low satisfactory. The appropriate Federal banking agency 
rates a bank's or savings association's lending performance ``low 
satisfactory'' if, in general, it demonstrates:
    (A) Adequate responsiveness to credit needs in its assessment 
area(s), taking into account the number and amount of home mortgage, 
small business, small farm, and consumer loans, if applicable, in 
its assessment area(s);
    (B) An adequate percentage of its loans are made in its 
assessment area(s);
    (C) An adequate geographic distribution of loans in its 
assessment area(s);
    (D) An adequate distribution, particularly in its assessment 
area(s), of loans among individuals of different income levels and 
businesses (including farms) of different sizes, given the product 
lines offered by the bank or savings association;
    (E) An adequate record of serving the credit needs of highly 
economically disadvantaged areas in its assessment area(s), low-
income individuals, or businesses (including farms) with gross 
annual revenues of $1 million or less, consistent with safe and 
sound operations;
    (F) Limited use of innovative or flexible lending practices in a 
safe and sound manner to address the credit needs of low- or 
moderate-income individuals or geographies; and
    (G) It has made an adequate level of community development 
loans.
    (iv) Needs to improve. The appropriate Federal banking agency 
rates a bank's or

[[Page 71352]]

savings association's lending performance ``needs to improve'' if, 
in general, it demonstrates:
    (A) Poor responsiveness to credit needs in its assessment 
area(s), taking into account the number and amount of home mortgage, 
small business, small farm, and consumer loans, if applicable, in 
its assessment area(s);
    (B) A small percentage of its loans are made in its assessment 
area(s);
    (C) A poor geographic distribution of loans, particularly to 
low- or moderate-income geographies, in its assessment area(s);
    (D) A poor distribution, particularly in its assessment area(s), 
of loans among individuals of different income levels and businesses 
(including farms) of different sizes, given the product lines 
offered by the bank or savings association;
    (E) A poor record of serving the credit needs of highly 
economically disadvantaged areas in its assessment area(s), low-
income individuals, or businesses (including farms) with gross 
annual revenues of $1 million or less, consistent with safe and 
sound operations;
    (F) Little use of innovative or flexible lending practices in a 
safe and sound manner to address the credit needs of low- or 
moderate-income individuals or geographies; and
    (G) It has made a low level of community development loans.
    (v) Substantial noncompliance. The appropriate Federal banking 
agency rates a bank's or savings association's lending performance 
as being in ``substantial noncompliance'' if, in general, it 
demonstrates:
    (A) A very poor responsiveness to credit needs in its assessment 
area(s), taking into account the number and amount of home mortgage, 
small business, small farm, and consumer loans, if applicable, in 
its assessment area(s);
    (B) A very small percentage of its loans are made in its 
assessment area(s);
    (C) A very poor geographic distribution of loans, particularly 
to low- or moderate-income geographies, in its assessment area(s);
    (D) A very poor distribution, particularly in its assessment 
area(s), of loans among individuals of different income levels and 
businesses (including farms) of different sizes, given the product 
lines offered by the bank or savings association;
    (E) A very poor record of serving the credit needs of highly 
economically disadvantaged areas in its assessment area(s), low-
income individuals, or businesses (including farms) with gross 
annual revenues of $1 million or less, consistent with safe and 
sound operations;
    (F) No use of innovative or flexible lending practices in a safe 
and sound manner to address the credit needs of low- or moderate-
income individuals or geographies; and
    (G) It has made few, if any, community development loans.
    (2) Investment performance rating. The appropriate Federal 
banking agency assigns each bank's or savings association's 
investment performance one of the five following ratings.
    (i) Outstanding. The appropriate Federal banking agency rates a 
bank's or savings association's investment performance 
``outstanding'' if, in general, it demonstrates:
    (A) An excellent level of qualified investments, particularly 
those that are not routinely provided by private investors, often in 
a leadership position;
    (B) Extensive use of innovative or complex qualified 
investments; and
    (C) Excellent responsiveness to credit and community development 
needs.
    (ii) High satisfactory. The appropriate Federal banking agency 
rates a bank's or savings association's investment performance 
``high satisfactory'' if, in general, it demonstrates:
    (A) A significant level of qualified investments, particularly 
those that are not routinely provided by private investors, 
occasionally in a leadership position;
    (B) Significant use of innovative or complex qualified 
investments; and
    (C) Good responsiveness to credit and community development 
needs.
    (iii) Low satisfactory. The appropriate Federal banking agency 
rates a bank's or savings association's investment performance ``low 
satisfactory'' if, in general, it demonstrates:
    (A) An adequate level of qualified investments, particularly 
those that are not routinely provided by private investors, although 
rarely in a leadership position;
    (B) Occasional use of innovative or complex qualified 
investments; and
    (C) Adequate responsiveness to credit and community development 
needs.
    (iv) Needs to improve. The appropriate Federal banking agency 
rates a bank's or savings association's investment performance 
``needs to improve'' if, in general, it demonstrates:
    (A) A poor level of qualified investments, particularly those 
that are not routinely provided by private investors;
    (B) Rare use of innovative or complex qualified investments; and
    (C) Poor responsiveness to credit and community development 
needs.
    (v) Substantial noncompliance. The appropriate Federal banking 
agency rates a bank's or savings association's investment 
performance as being in ``substantial noncompliance'' if, in 
general, it demonstrates:
    (A) Few, if any, qualified investments, particularly those that 
are not routinely provided by private investors;
    (B) No use of innovative or complex qualified investments; and
    (C) Very poor responsiveness to credit and community development 
needs.
    (3) Service performance rating. The appropriate Federal banking 
agency assigns each bank's or savings association's service 
performance one of the five following ratings.
    (i) Outstanding. The appropriate Federal banking agency rates a 
bank's or savings association's service performance ``outstanding'' 
if, in general, the bank or savings association demonstrates:
    (A) Its service delivery systems are readily accessible to 
geographies and individuals of different income levels in its 
assessment area(s);
    (B) To the extent changes have been made, its record of opening 
and closing branches has improved the accessibility of its delivery 
systems, particularly in low- or moderate-income geographies or to 
low- or moderate-income individuals;
    (C) Its services (including, where appropriate, business hours) 
are tailored to the convenience and needs of its assessment area(s), 
particularly low- or moderate-income geographies or low- or 
moderate-income individuals; and
    (D) It is a leader in providing community development services.
    (ii) High satisfactory. The appropriate Federal banking agency 
rates a bank's or savings association's service performance ``high 
satisfactory'' if, in general, the bank or savings association 
demonstrates:
    (A) Its service delivery systems are accessible to geographies 
and individuals of different income levels in its assessment 
area(s);
    (B) To the extent changes have been made, its record of opening 
and closing branches has not adversely affected the accessibility of 
its delivery systems, particularly in low- and moderate-income 
geographies and to low- and moderate-income individuals;
    (C) Its services (including, where appropriate, business hours) 
do not vary in a way that inconveniences its assessment area(s), 
particularly low- and moderate-income geographies and low- and 
moderate-income individuals; and
    (D) It provides a relatively high level of community development 
services.
    (iii) Low satisfactory. The appropriate Federal banking agency 
rates a bank's or savings association's service performance ``low 
satisfactory'' if, in general, the bank or savings association 
demonstrates:
    (A) Its service delivery systems are reasonably accessible to 
geographies and individuals of different income levels in its 
assessment area(s);
    (B) To the extent changes have been made, its record of opening 
and closing branches has generally not adversely affected the 
accessibility of its delivery systems, particularly in low- and 
moderate-income geographies and to low- and moderate-income 
individuals;
    (C) Its services (including, where appropriate, business hours) 
do not vary in a way that inconveniences its assessment area(s), 
particularly low- and moderate-income geographies and low- and 
moderate-income individuals; and
    (D) It provides an adequate level of community development 
services.
    (iv) Needs to improve. The appropriate Federal banking agency 
rates a bank's or savings association's service performance ``needs 
to improve'' if, in general, the bank or savings association 
demonstrates:
    (A) Its service delivery systems are unreasonably inaccessible 
to portions of its assessment area(s), particularly to low- or 
moderate-income geographies or to low- or moderate-income 
individuals;
    (B) To the extent changes have been made, its record of opening 
and closing branches has adversely affected the accessibility its 
delivery systems, particularly in low- or moderate-income 
geographies or to low- or moderate-income individuals;
    (C) Its services (including, where appropriate, business hours) 
vary in a way

[[Page 71353]]

that inconveniences its assessment area(s), particularly low- or 
moderate-income geographies or low- or moderate-income individuals; 
and
    (D) It provides a limited level of community development 
services.
    (v) Substantial noncompliance. The appropriate Federal banking 
agency rates a bank's or savings association's service performance 
as being in ``substantial noncompliance'' if, in general, the bank 
or savings association demonstrates:
    (A) Its service delivery systems are unreasonably inaccessible 
to significant portions of its assessment area(s), particularly to 
low- or moderate-income geographies or to low- or moderate-income 
individuals;
    (B) To the extent changes have been made, its record of opening 
and closing branches has significantly adversely affected the 
accessibility of its delivery systems, particularly in low- or 
moderate-income geographies or to low- or moderate-income 
individuals;
    (C) Its services (including, where appropriate, business hours) 
vary in a way that significantly inconveniences its assessment 
area(s), particularly low- or moderate-income geographies or low- or 
moderate-income individuals; and
    (D) It provides few, if any, community development services.
    (c) Wholesale or limited purpose banks. The appropriate Federal 
banking agency assigns each wholesale or limited purpose bank's or 
savings association's community development performance one of the 
four following ratings.
    (1) Outstanding. The appropriate Federal banking agency rates a 
wholesale or limited purpose bank's or savings association's 
community development performance ``outstanding'' if, in general, it 
demonstrates:
    (i) A high level of community development loans, community 
development services, or qualified investments, particularly 
investments that are not routinely provided by private investors;
    (ii) Extensive use of innovative or complex qualified 
investments, community development loans, or community development 
services; and
    (iii) Excellent responsiveness to credit and community 
development needs in its assessment area(s).
    (2) Satisfactory. The appropriate Federal banking agency rates a 
wholesale or limited purpose bank's or savings association's 
community development performance ``satisfactory'' if, in general, 
it demonstrates:
    (i) An adequate level of community development loans, community 
development services, or qualified investments, particularly 
investments that are not routinely provided by private investors;
    (ii) Occasional use of innovative or complex qualified 
investments, community development loans, or community development 
services; and
    (iii) Adequate responsiveness to credit and community 
development needs in its assessment area(s).
    (3) Needs to improve. The appropriate Federal banking agency 
rates a wholesale or limited purpose bank's or savings association's 
community development performance as ``needs to improve'' if, in 
general, it demonstrates:
    (i) A poor level of community development loans, community 
development services, or qualified investments, particularly 
investments that are not routinely provided by private investors;
    (ii) Rare use of innovative or complex qualified investments, 
community development loans, or community development services; and
    (iii) Poor responsiveness to credit and community development 
needs in its assessment area(s).
    (4) Substantial noncompliance. The appropriate Federal banking 
agency rates a wholesale or limited purpose bank's or savings 
association's community development performance in ``substantial 
noncompliance'' if, in general, it demonstrates:
    (i) Few, if any, community development loans, community 
development services, or qualified investments, particularly 
investments that are not routinely provided by private investors;
    (ii) No use of innovative or complex qualified investments, 
community development loans, or community development services; and
    (iii) Very poor responsiveness to credit and community 
development needs in its assessment area(s).
    (d) Banks and savings associations evaluated under the small 
bank and savings association performance standards--(1) Lending test 
ratings. (i) Eligibility for a satisfactory lending test rating. The 
appropriate Federal banking agency rates a small bank's or savings 
association's lending performance ``satisfactory'' if, in general, 
the bank or savings association demonstrates:
    (A) A reasonable loan-to-deposit ratio (considering seasonal 
variations) given the bank's or savings association's size, 
financial condition, the credit needs of its assessment area(s), and 
taking into account, as appropriate, other lending-related 
activities such as loan originations for sale to the secondary 
markets and community development loans and qualified investments;
    (B) A majority of its loans and, as appropriate, other lending-
related activities, are in its assessment area;
    (C) A distribution of loans to and, as appropriate, other 
lending-related activities for individuals of different income 
levels (including low- and moderate-income individuals) and 
businesses and farms of different sizes that is reasonable given the 
demographics of the bank's or savings association's assessment 
area(s);
    (D) A record of taking appropriate action, when warranted, in 
response to written complaints, if any, about the bank's or savings 
association's performance in helping to meet the credit needs of its 
assessment area(s); and
    (E) A reasonable geographic distribution of loans given the 
bank's or savings association's assessment area(s).
    (ii) Eligibility for an ``outstanding'' lending test rating. A 
small bank or savings association that meets each of the standards 
for a ``satisfactory'' rating under this paragraph and exceeds some 
or all of those standards may warrant consideration for a lending 
test rating of ``outstanding.''
    (iii) Needs to improve or substantial noncompliance ratings. A 
small bank or savings association may also receive a lending test 
rating of ``needs to improve'' or ``substantial noncompliance'' 
depending on the degree to which its performance has failed to meet 
the standard for a ``satisfactory'' rating.
    (2) Community development test ratings for intermediate small 
banks and savings associations--(i) Eligibility for a satisfactory 
community development test rating. The appropriate Federal banking 
agency rates an intermediate small bank's or savings association's 
community development performance ``satisfactory'' if the bank or 
savings association demonstrates adequate responsiveness to the 
community development needs of its assessment area(s) through 
community development loans, qualified investments, and community 
development services. The adequacy of the bank's or savings 
association's response will depend on its capacity for such 
community development activities, its assessment area's need for 
such community development activities, and the availability of such 
opportunities for community development in the bank's or savings 
association's assessment area(s).
    (ii) Eligibility for an outstanding community development test 
rating. The appropriate Federal banking agency rates an intermediate 
small bank's or savings association's community development 
performance ``outstanding'' if the bank or savings association 
demonstrates excellent responsiveness to community development needs 
in its assessment area(s) through community development loans, 
qualified investments, and community development services, as 
appropriate, considering the bank's or savings association's 
capacity and the need and availability of such opportunities for 
community development in the bank's or savings association's 
assessment area(s).
    (iii) Needs to improve or substantial noncompliance ratings. An 
intermediate small bank or savings association may also receive a 
community development test rating of ``needs to improve'' or 
``substantial noncompliance'' depending on the degree to which its 
performance has failed to meet the standards for a ``satisfactory'' 
rating.
    (3) Overall rating--(i) Eligibility for a satisfactory overall 
rating. No intermediate small bank or savings association may 
receive an assigned overall rating of ``satisfactory'' unless it 
receives a rating of at least ``satisfactory'' on both the lending 
test and the community development test.
    (ii) Eligibility for an outstanding overall rating. (A) An 
intermediate small bank or savings association that receives an 
``outstanding'' rating on one test and at least ``satisfactory'' on 
the other test may receive an assigned overall rating of 
``outstanding.''
    (B) A small bank or savings association that is not an 
intermediate small bank or savings association that meets each of 
the standards for a ``satisfactory'' rating under the lending test 
and exceeds some or all of those

[[Page 71354]]

standards may warrant consideration for an overall rating of 
``outstanding.'' In assessing whether a bank's or savings 
association's performance is ``outstanding,'' the appropriate 
Federal banking agency considers the extent to which the bank or 
savings association exceeds each of the performance standards for a 
``satisfactory'' rating and its performance in making qualified 
investments and its performance in providing branches and other 
services and delivery systems that enhance credit availability in 
its assessment area(s).
    (iii) Needs to improve or substantial noncompliance overall 
ratings. A small bank or savings association may also receive a 
rating of ``needs to improve'' or ``substantial noncompliance'' 
depending on the degree to which its performance has failed to meet 
the standards for a ``satisfactory'' rating.
    (e) Strategic plan assessment and rating--(1) Satisfactory 
goals. The appropriate Federal banking agency approves as 
``satisfactory'' measurable goals that adequately help to meet the 
credit needs of the bank's or savings association's assessment 
area(s).
    (2) Outstanding goals. If the plan identifies a separate group 
of measurable goals that substantially exceed the levels approved as 
``satisfactory,'' the appropriate Federal banking agency will 
approve those goals as ``outstanding.''
    (3) Rating. The appropriate Federal banking agency assesses the 
performance of a bank or savings association operating under an 
approved plan to determine if the bank or savings association has 
met its plan goals:
    (i) If the bank or savings association substantially achieves 
its plan goals for a satisfactory rating, the appropriate Federal 
banking agency will rate the bank's or savings association's 
performance under the plan as ``satisfactory.''
    (ii) If the bank or savings association exceeds its plan goals 
for a satisfactory rating and substantially achieves its plan goals 
for an outstanding rating, the appropriate Federal banking agency 
will rate the bank's or savings association's performance under the 
plan as ``outstanding.''
    (iii) If the bank or savings association fails to meet 
substantially its plan goals for a satisfactory rating, the 
appropriate Federal banking agency will rate the bank or savings 
association as either ``needs to improve'' or ``substantial 
noncompliance,'' depending on the extent to which it falls short of 
its plan goals, unless the bank or savings association elected in 
its plan to be rated otherwise, as provided in Sec.  25.27(f)(4).

Appendix B to Part 25--CRA Notice

    (a) Notice for main offices and, if an interstate bank and 
savings association, one branch office in each state.

Community Reinvestment Act Notice

    Under the Federal Community Reinvestment Act (CRA), the [Office 
of the Comptroller of the Currency (OCC) or Federal Deposit 
Insurance Corporation (FDIC), as appropriate] evaluates our record 
of helping to meet the credit needs of this community consistent 
with safe and sound operations. The [OCC or FDIC, as appropriate] 
also takes this record into account when deciding on certain 
applications submitted by us.

Your Involvement is Encouraged

    You are entitled to certain information about our operations and 
our performance under the CRA, including, for example, information 
about our branches, such as their location and services provided at 
them; the public section of our most recent CRA Performance 
Evaluation, prepared by the [OCC or FDIC, as appropriate]; and 
comments received from the public relating to our performance in 
helping to meet community credit needs, as well as our responses to 
those comments. You may review this information today.
    At least 30 days before the beginning of each quarter, the [OCC 
or FDIC, as appropriate] publishes a nationwide list of the banks 
and savings associations that are scheduled for CRA examination in 
that quarter. This list is available from the [OCC or FDIC, as 
appropriate], at [address]. You may send written comments about our 
performance in helping to meet community credit needs to [name and 
address of official at bank or savings association] and to the [OCC 
or FDIC, as appropriate], at [address]. Your letter, together with 
any response by us, will be considered by the [OCC or FDIC, as 
appropriate] in evaluating our CRA performance and may be made 
public.
    You may ask to look at any comments received by the [OCC or 
FDIC, as appropriate]. You may also request from the [OCC or FDIC, 
as appropriate] an announcement of our applications covered by the 
CRA filed with the [OCC or FDIC, as appropriate]. We are an 
affiliate of [name of holding company], a [bank holding company or 
savings and loan holding company, as appropriate]. 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 or savings and loan holding 
companies, as appropriate].
    (b) Notice for branch offices.

Community Reinvestment Act Notice

    Under the Federal Community Reinvestment Act (CRA), the 
[Comptroller of the Currency (OCC) and Federal Deposit Insurance 
Corporation (FDIC), as appropriate] evaluates our record of helping 
to meet the credit needs of this community consistent with safe and 
sound operations. The [OCC or FDIC, as appropriate] also takes this 
record into account when deciding on certain applications submitted 
by us.

Your Involvement is Encouraged

    You are entitled to certain information about our operations and 
our performance under the CRA. You may review today the public 
section of our most recent CRA evaluation, prepared by the [OCC or 
FDIC, as appropriate], and a list of services provided at this 
branch. You may also have access to the following additional 
information, which we will make available to you at this branch 
within five calendar days after you make a request to us: (1) A map 
showing the assessment area containing this branch, which is the 
area in which the [OCC or FDIC, as appropriate] evaluates our CRA 
performance in this community; (2) information about our branches in 
this assessment area; (3) a list of services we provide at those 
locations; (4) data on our lending performance in this assessment 
area; and (5) copies of all written comments received by us that 
specifically relate to our CRA performance in this assessment area, 
and any responses we have made to those comments. If we are 
operating under an approved strategic plan, you may also have access 
to a copy of the plan.
    [If you would like to review information about our CRA 
performance in other communities served by us, the public file for 
our entire [bank or savings association, as appropriate] is 
available at [name of office located in state], located at 
[address].]
    At least 30 days before the beginning of each quarter, the [OCC 
or FDIC, as appropriate] publishes a nationwide list of the banks 
and savings associations that are scheduled for CRA examination in 
that quarter. This list is available from the [OCC or FDIC, as 
appropriate] at [address]. You may send written comments about our 
performance in helping to meet community credit needs to [name and 
address of official at bank or savings association, as appropriate] 
and to the [OCC or FDIC, as appropriate] at [address]. Your letter, 
together with any response by us, will be considered by the [OCC or 
FDIC, as appropriate] in evaluating our CRA performance and may be 
made public.
    You may ask to look at any comments received by the [OCC or 
FDIC, as appropriate]. You may also request from the [OCC or FDIC, 
as appropriate] an announcement of our applications covered by the 
CRA filed with the [OCC or FDIC, as appropriate]. We are an 
affiliate of [name of holding company], a [bank holding company or 
savings and loan holding company, as appropriate]. 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 or savings and loan holding 
companies, as appropriate].

Michael J. Hsu,
Acting Comptroller of the Currency.
[FR Doc. 2021-27171 Filed 12-14-21; 8:45 am]
BILLING CODE 4810-33-P