[Federal Register Volume 91, Number 4 (Wednesday, January 7, 2026)]
[Notices]
[Pages 509-510]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2026-00042]
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FEDERAL RESERVE SYSTEM
FEDERAL DEPOSIT INSURANCE CORPORATION
Community Reinvestment Act Regulations Asset-Size Thresholds
AGENCY: Board of Governors of the Federal Reserve System (Board);
Federal Deposit Insurance Corporation (FDIC).
ACTION: Announcement of 2026 asset-size thresholds.
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SUMMARY: Under their Community Reinvestment Act (CRA) regulations, the
Board and the FDIC (collectively, the Agencies) annually adjust the
asset-size thresholds used to define ``small bank'' and ``intermediate
small bank.'' As required by the CRA regulations, the adjustment to the
threshold amounts is based on the annual percentage change in the
Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-
W). Applying this annual inflation adjustment methodology, the Agencies
are announcing that, from January 7, 2026 through December 31, 2026,
``small bank'' will mean a bank that, as of December 31 of either of
the prior two calendar years, had assets of less than $1.649 billion;
and ``intermediate small bank'' will mean a small bank with assets of
at least $412 million as of December 31 of both of the prior two
calendar years and less than $1.649 billion as of December 31 of either
of the prior two calendar years.
DATES: These asset-size thresholds are in effect from January 7, 2026
through December 31, 2026.
FOR FURTHER INFORMATION CONTACT:
Board: Amal S. Patel, Senior Counsel, Division of Consumer and
Community Affairs; or Cody Gaffney, Counsel, Legal Division, Board of
Governors of the Federal Reserve System at (202) 452-2412. For the
hearing impaired and users of Telecommunications Device for the Deaf
(TDD) and TTY-TRS, please call 711 from any telephone, anywhere in the
United States.
FDIC: Patience R. Singleton, Senior Policy Analyst, Supervisory
Policy Branch, Division of Depositor and Consumer Protection, (202)
898-6859, [email protected]; Cassandra Duhaney, Counsel, (202) 898-
6804, [email protected]; or Alys V. Brown, Senior Attorney, (202) 898-
3565, [email protected], Legal Division, Federal Deposit Insurance
Corporation, 550 17th Street NW, Washington, DC 20429.
SUPPLEMENTARY INFORMATION:
Community Reinvestment Act Asset-Size Thresholds
Under the current CRA regulations,\1\ ``small bank'' currently
means a bank that, as of December 31 of either of the prior two
calendar years, had assets of less than $1.609 billion; and
``intermediate small bank'' means a small bank with assets of at least
$402 million as of December 31 of both of the prior two calendar years
and less than $1.609 billion as of December 31 of either of the prior
two calendar years.\2\ Pursuant to the annual inflation adjustment
methodology described below, the Agencies are announcing that from
January 7, 2026 through December 31, 2026,\3\ ``small bank'' will mean
a bank that, as of December 31 of either of the prior two calendar
years, had assets of less than $1.649 billion; and ``intermediate small
bank'' will mean a small bank with assets of at least $412 million as
of December 31 of both of the prior two calendar years and less than
$1.649 billion as of December 31 of either of the prior two calendar
years.\4\
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\1\ In October 2023, the Agencies and the Office of the
Comptroller of the Currency (OCC) jointly issued a final rule to
amend their Community Reinvestment Act regulations. See 89 FR 6574
(Feb. 1, 2024). Although the final rule was intended to take effect
on April 1, 2024, the final rule has been challenged in litigation,
and the final rule is currently enjoined. As such, the legacy CRA
regulations (referred to in this notice as the ``current CRA
regulations'') remain in effect. The text of the current CRA
regulations may be found: (i) in the 2022, 2023, or 2024 bound
versions of title 12 of the Code of Federal Regulations; (ii) in the
historical version of the Electronic Code of Federal Regulations
(eCFR) as of March 29, 2024; or (iii) in appendix G of the final
rule, as published in the eCFR on February 1, 2024.
\2\ See 89 FR 106480 (Dec. 30, 2024).
\3\ Although these annual inflation adjustments are intended to
take effect on January 1 of each year, this inflation adjustment may
take effect on a later date to the extent that delays in the
availability of certain CPI-W data that were necessary to determine
this inflation adjustment affect the timing of the publication of
this inflation adjustment in the Federal Register. Please refer to
the effective date indicated at the top of this notice.
\4\ Historically, the Agencies have announced these annual
inflation adjustments via rulemakings that amend the ``small bank''
and ``intermediate small bank'' definitions in their CRA
regulations. See, e.g., 88 FR 87895 (Dec. 20, 2023) (implementing
annual inflation adjustments for 2024). However, because the eCFR
has been updated to reflect the text of the October 2023 CRA final
rule, and because the October 2023 CRA final rule is currently
enjoined, the Agencies have determined that this document (rather
than a rulemaking) is the best vehicle for announcing the annual
inflation adjustments for 2026. On July 16, 2025, the agencies
issued a proposed rule that would rescind the October 2023 CRA final
rule, as amended, and replace it with the current CRA regulations
(i.e., the regulations in effect on March 29, 2024), with conforming
amendments to the agencies' definitions of ``small bank'' and
``intermediate small bank.'' See 90 FR 34086 (July 18, 2025).
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Calculation Methodology
The Agencies' CRA regulations establish CRA performance standards
for small banks and intermediate small banks. The CRA regulations
define small and intermediate small banks by reference to asset-size
criteria expressed in dollar amounts, and they further require the
Agencies to publish annual adjustments to these dollar figures based on
the year-to-year change in the average of the CPI-W, not seasonally
adjusted, for each 12-month period ending in November, with rounding to
the nearest million.\5\ This adjustment formula was first adopted for
CRA purposes by the Agencies and the OCC in 2005.\6\
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\5\ See 12 CFR 228.12(u)(2) and 345.12(u)(2) of the current CRA
regulations. Due to the fall 2025 Federal government shutdown, no
CPI-W data for October 2025 is available; as a result, the Agencies
necessarily made the adjustment to the threshold amounts using 11
months of available CPI-W data over the course of the relevant 12-
month period.
\6\ The OCC adjusts the asset-size criteria for institutions
that are subject to OCC-issued CRA regulations, including national
banks and Federal and State savings associations, separately from
the Agencies.
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During the 12-month period ending November 2025, the CPI-W
increased by 2.51 percent. Because the year-to-year change in the CPI-W
was non-zero, the Agencies are making this annual adjustment. Beginning
January 7, 2026, banks that, as of December 31 of either of the prior
two calendar years, had assets of less than $1.649 billion are
[[Page 510]]
small banks. Small banks with assets of at least $412 million as of
December 31 of both of the prior two calendar years and less than
$1.649 billion as of December 31 of either of the prior two calendar
years are intermediate small banks.
The Agencies publish current and historical asset-size thresholds
on the website of the Federal Financial Institutions Examination
Council.\7\
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\7\ See https://www.ffiec.gov/cra/examinations.htm (``Current
and Historical Asset-Size Thresholds and Examples'').
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By order of the Board of Governors of the Federal Reserve System,
acting through the Deputy Secretary of the Board under delegated
authority.
Benjamin W. McDonough,
Deputy Secretary of the Board.
Federal Deposit Insurance Corporation.
Dated at Washington, DC, on December 23, 2025.
Debra A. Decker,
Executive Secretary.
[FR Doc. 2026-00042 Filed 1-6-26; 8:45 am]
BILLING CODE 6210-01-P; 6714-01-P