§__.26(b)(2) – 1
Q: Must a small institution have a majority of its lending in its assessment area(s) to receive a satisfactory performance rating?
A1. No. The percentage of loans and, as appropriate, other lending-related activities located in the institution’s assessment area(s) is but one of the performance criteria upon which small institutions are evaluated. If the percentage of loans and other lending-related activities in an institution’s assessment area(s) is less than a majority, then the institution does not meet the standards for satisfactory performance only under this criterion. The effect on the overall performance rating of the institution, however, is considered in light of the performance context, including information regarding economic conditions; loan demand; the institution’s size, financial condition, business strategies, and branching network; and other aspects of the institution’s lending record.
Source: Interagency Questions & Answers Regarding Community Reinvestment | July 2016