FDIC: Community Reinvestment Act (CRA) Performance Ratings -

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Area median income means:

    1. The median family income for the MSA, if a person or geography is located in an MSA; or
    2. The statewide non-metropolitan median family income, if a person or geography is located outside an MSA.

Assessment area: one or more geographical areas within which a bank is evaluated on its record of helping to meet community credit needs, including those designated as low- and moderate-income. The assessment area will generally consist of one or more MSAs or one or more contiguous political subdivisions, such as counties, cities, or towns. The assessment area will include geographies where the bank has its main office, its branches, and deposit taking ATMs, as well as surrounding geographies in which the bank has originated or purchased a majority of its loans.

Bank: any national bank, State bank, District bank, any Federal branch and insured branch and any former savings association that has converted from a savings association charter; and is a Savings Association Insurance Fund member.

Bank Certification Number: a number assigned to banks that are approved for insured status by the FDIC.

Block: small areas bounded on all sides by visible features such as streets, roads, streams, or railroad tracks, and invisible features like a city or town boundaries or property lines. Blocks are subdivisions of census tracts or block numbering areas (BNA), and are assigned a unique three-digit number.

Block Group: clusters of blocks within a census tract or BNA, having a four-digit number and a three-digit suffix. The four-digit number corresponds to the same number given to the census tract or BNA in which it is located.

Block Numbering Areas (BNAs): statistical subdivisions of a county for grouping and numbering blocks in non-metropolitan counties where local census statistical area committees have not established census tracts. BNAs do not cross county lines.

Branch: 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. The term "branch" only includes a "domestic branch" as that term is defined in Federal Regulations

(12 U.S.C. 1813(o)).

Bridge Bank: a new national bank organized by the Corporation in accordance with Federal Regulations.

Census Tract (CTs): small subdivisions of metropolitan and other densely populated counties. Census tract boundaries do not cross county lines; however, they may cross the boundaries of metropolitan statistical areas. They usually have between 2,500 and 8,000 persons, and their physical size varies widely depending upon population density. Census tracts are designed to be homogeneous with respect to population characteristics, economic status, and living conditions to allow for statistical comparisons.

Cert: see Bank Certification Number

Consolidated Metropolitan Statistical Area (CMSA): a consolidated metropolitan statistical area as defined by the Director of the Office of Management and Budget.

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 or have gross annual revenues of $1 million or less; or
    4. Activities that revitalize or stabilize low- or moderate-income geographies.


Community development loan: a loan that;

    1. Has as its primary purpose community development; and
    2. Except in the case of a wholesale or limited purpose bank:

(i) Has not been reported or collected by the bank or an affiliate for consideration in the bank's assessment as a home mortgage, small business, small farm, or consumer loan, unless it is a multifamily dwelling loan (as described in Appendix A to Part 203 of this title); and
(ii) Benefits the bank's assessment area(s) or a broader statewide or regional area that includes the bank's assessment area(s).


Community development service: 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 retail banking services under Federal Regulations. § 345.24(d)

 

Consumer loan: 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 Federal Regulation § 226.2
    3. Home equity loan, which is a consumer loan secured by a residence of the borrower;
    4. Other secured consumer loan, which is a secured consumer loan that is not included in one of the other categories of consumer loans; and
    5. Other unsecured consumer loan, which is an unsecured consumer loan that is not included in one of the other categories of consumer loans.

Depository Institution: any bank or savings association.

District Bank: any State bank operating under the Code of Law of the District of Columbia.

Family: includes a householder and one or more other persons living in the same household who are related to the householder by birth, marriage, or adoption. The number of family households always equals the number of families; however, a family household may also include non-relatives living with the family. Families are classified by type as either a married-couple family or other family which is further classified into "male householder" (a family with a male householder and no wife present) or "female householder" (a family with a female householder and no husband present).

Family Income: includes the income of all members of a family that are age 15 and older.

Federal Depository Institution: any national bank, any Federal savings association, and any Federal branch.

Federal Financial Institutions Examination Council: (Council) was established on March 10, 1979. The Council is a formal interagency body empowered to prescribe uniform principles, standards, and report forms for the federal examination of financial institutions by the Board of Governors of the Federal Reserve System (FRB), the Federal Deposit Insurance Corporation (FDIC), the National Credit Union Administration (NCUA), the Office of the Comptroller of the Currency (OCC), and the Office of Thrift Supervision (OTS) and to make recommendations to promote uniformity in the supervision of financial institutions.

Federal Savings Association: any Federal savings association or Federal savings bank which is chartered under section 5 of the Home Owners' Loan Act.

FFIEC: see Federal Financial Institutions Examination Council

Geography: a census tract or a block numbering area delineated by the United States Bureau of the Census in the most recent decennial census.


Home mortgage loan: a "home improvement loan" or a "home purchase loan" as defined in Federal Regulations

§ 203.2

Home Mortgage Disclosure Loan Application Register (HMDA LAR): the HMDA LARs record all applications received for residential purchase, refinance, home improvement, and temporary-to-permanent construction loans.

Household: includes all persons occupying a housing unit. Persons not living in households are classified as living in group quarters. In 100 percent tabulations, the count of households always equals the count of occupied housing units.

Household Income: includes the income of the householder and all other persons that are age 15 and older in the household, whether related to the householder or not. Because many households consist of only one person, median household income is usually less than median family income.

Housing Unit: includes a house, an apartment, a mobile home, a group of rooms, or a single room that is occupied as separate living quarters.

HUD Adjusted Income Data: the U.S. Department of Housing and Urban Development (HUD) issue annual estimates that update median family income from the metropolitan and non-metropolitan areas. HUD starts with the most recent U.S. Census data and factors in information from other sources to arrive at an annual estimate that more closely reflects current economic conditions.

Insured Bank: any bank (including a foreign bank having an insured branch) the deposits of which are insured in accordance with the provisions of this Act; and the term "noninsured bank" means any bank the deposits of which are not so insured.

Insured Depository Institution: any bank or savings association the deposits of which are insured by the Corporation pursuant to this Act. Insured Depository Institution also includes any uninsured branch or agency of a foreign bank or a commercial lending company owned or controlled by a foreign bank for purposes of section 8 of this Act.

Large Bank: any bank not otherwise defined as a small bank, unless requested designation and received approval as wholesale or limited-purpose institutions or have been approved for evaluation under a strategic plan.


Limited purpose bank: a bank 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 is in effect, in accordance with Federal Regulations.
§ 345.25(b)

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.

Loan production office: 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.

Low-Income: individuals and geographies having a median family income less than 50 percent of the area median income.

Median Income: the median income divides the income distribution into two equal parts, one having incomes above the median and other having incomes below the median.

Metropolitan Statistical Area (MSA): one or more large population centers and adjacent communities that have a high degree of economic and social integration. Each MSA must contain either a place with a minimum population of 50,000 of Census Bureau-defined urbanized area and a total MSA population of at least 100,000 (75,000 in New England). An MSA comprises one or more central counties and may include one or more outlying counties that have close economic and social relationships with the central county. In New England, MSA’s are composed of cities and towns rather than whole counties.

Middle-Income: individuals and geographies having a median family income of at least 80 percent and less than 120 percent of the area median income.

Moderate-Income: individuals and geographies having a median family income of at least 50 percent and less than 80 percent of the area median income.

Mutual Savings Bank: a bank without capital stock transacting a savings bank business, the net earnings of which inure wholly to the benefit of its depositors after payment of obligations for any advances by its organizers.

National Member Bank: any national bank which is a member of the Federal Reserve System.

National Nonmember Bank: any national bank which;

    1. is located in any territory of the United States, Puerto Rico, Guam, American Samoa, the Virgin Islands, or the Northern Mariana Islands; and
    2. is not a member of the Federal Reserve System.

Non-metropolitan Statistical Area: all areas outside of metropolitan statistical areas (MSA). The definition of non-metropolitan statistical area is not consistent with the definition of rural areas. Urban and rural classifications cut across the other hierarchies; for example, there is generally both urban and rural territory within both metropolitan and non-metropolitan statistical areas.

Owner-Occupied Units: includes units occupied by the owner or co-owner, even if the unit has not been fully paid for or is mortgaged.

Poverty Level: federal government bases this on income thresholds that vary by family size and composition and does not take into account noncash benefits.

Primary Metropolitan Statistical Area (PMSA): a large urbanized county or cluster of counties that demonstrate very strong internal economic and social links, in addition to close ties to other portions of the larger area.

Public Evaluation: an explanation of the uniform four-tiered rating system that the FDIC and other federal banking agencies use to assess the CRA performance of each regulated bank and savings institution.

Qualified Investments: a qualified investment is defined as any lawful investment, deposit, membership share, or grant that has as its primary purpose community development to support the following endeavors:

    1. affordable housing;
    2. community services targeting low- and moderate-income individuals;
    3. activities that promote economic development by financing small farms and small businesses; and
    4. activities that revitalize or stabilize low- and moderate-income geographies.

Remote service facility (RSF): an automated, unstaffed banking facility owned or operated by, or operated exclusively for, the bank, such as an automated teller machine, cash dispensing machine, point-of-sale terminal, or other remote electronic facility, at which deposits are received, cash dispersed, or money lent.

Rural Area: territories, populations, and housing units that are not classified as urban.

Savings Association: any Federal savings association, any State savings association, and any corporation (other than a bank) that the Board of Directors and the Director of the Office of Thrift Supervision jointly determine to be operating in substantially the same manner as a savings association.

Savings Bank: a bank (including a mutual savings bank) which transacts its ordinary banking business strictly as a savings bank under State laws imposing special requirements on such banks governing the manner of investing their funds and of conducting their business.

Small bank: a bank that, as of December 31 of either of the prior two calendar years, had total assets of less than $250 million and was independent or an affiliate of a holding company that, as of December 31 of either of the prior two calendar years, had total banking and thrift assets of less than $1 billion.

Small Business Administration (SBA): government agency formed over 40 years ago to help businesses get started and to help them grow once they are in business. The SBA will guaranty loans to small businesses that meet certain qualifications up to 80 percent in its 7(a) Guaranteed Loan Program. Other terms involved in the Guaranty Program are considered a benefit to small businesses and are unconventional. The SBA’s Low Documentation (Low-Doc) Loan program is for small business loans less than $100,000 and puts more emphasis on character, credit history, and projected cash flow over percentage of equity and collateral offered. It also offers less processing time considering the "low documentation" needed to approve the loan.

Small business loan: a loan included in "loans to small businesses" as defined in the instructions for preparation of the Consolidated Report of Condition and Income.


Small farm loan: a loan included in "loans to small farms" as defined in the instructions for preparation of the Consolidated Report of Condition and Income.

State bank: any bank, banking association, trust company, savings bank, industrial bank (or similar depository institution which the Board of Directors finds to be operating substantially in the same manner as an industrial bank), or other banking institution which;

    1. is engaged in the business of receiving deposits, other than trust funds (as defined in this section); and
    2. is incorporated under the laws of any State or which is operating under the Code of Law for the District of Columbia (except a national bank),
      including any cooperative bank or other unincorporated bank the deposits of which were insured by the Corporation on the day before the date of the enactment of the Financial Institutions Reform, Recovery, and Enforcement Act of 1989.

State depository institution: any State bank, any State savings association, and any insured branch which is not a Federal branch.


State Member Bank: any State bank which is a member of the Federal Reserve System.

State Nonmember Bank: any State bank which is not a member of the Federal Reserve System.

State Savings Association: any building and loan association, savings and loan association, or homestead association; or any cooperative which is organized and operating according to the laws of the State in which it is chartered or organized.

Upper-Income: individuals and geographies having a median family income of 120 percent or more of the area median income.


Urban Area: all territories, populations, and housing units in urbanized areas and in places of 2,500 or more persons outside urbanized areas. More specifically, "urban" consists of territory, persons, and housing units in: places of 2,500 or more persons incorporated as cities, villages, boroughs (except in Alaska and New York), and towns (except in the New England states, New York, and Wisconsin) but excluding the rural portions of "extended cities"; census designated place of 2,500 or more persons; and other territory, incorporated or unincorporated, including in urbanized areas.

Wholesale bank: a bank 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 is in effect, in accordance with Federal Regulations. § 345.25(b)

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