Intermediate Small Institutions

Intermediate Small Institutions | Examination Scope

1- The retail lending and community development opportunities in the different assessment areas, particularly areas where the need for credit and community development activities is significant; a – The level of the institution’s activity in the different assessment areas, including in low- and moderate-income areas, designated disaster areas, or distressed or underserved non-metropolitan middle-income geographies…

Intermediate Small Institutions | Performance Context

1 – Review standardized worksheets and other agency information sources to obtain relevant demographic, economic, and loan data, to the extent available, for each assessment area under review. 2 – Obtain for review the Consolidated Reports of Condition (Call Reports) / Thrift Financial Reports (TFR), Uniform Bank Performance Reports (UBPR) / Uniform Thrift Performance Reports…

Intermediate Small Institutions | Assessment Area

1 – Review the institution’s stated assessment area(s) to ensure that it: a – Consists of one or more MSAs/MDs or contiguous political subdivisions (e.g., counties, cities, or towns); b – Includes the geographies where the institution has its main office, branches, and deposit-taking ATMs, as well as the surrounding geographies in which the institution…

Intermediate Small Institutions | Lending Test Performance Criteria | Loan-to-Deposit Analysis

1 – From data contained in Call Reports / TFRs, or UBPRs / UTPRs, calculate the average loan-to-deposit ratio since the last examination by adding the quarterly loan-to-deposit ratios and dividing by the number of quarters. 2 – Evaluate whether the institution’s average loan-to-deposit ratio is reasonable in light of information from the performance context…

Intermediate Small Institutions | Lending Test Performance Criteria | Comparison of Credit Extended Inside and Outside of Assessment Area(s)

1 – If available, review HMDA data, automated loan reports, and any other reports that may have been generated by the institution to analyze the extent of lending inside and outside of the assessment area(s). If a report generated by the institution is used, test the accuracy of the output. 2 – If loan reports…

Intermediate Small Institutions | Lending Test Performance Criteria | Distribution of Credit within Assessment Area(s)

1 – Determine whether the number and income distribution of geographies in the assessment area(s) are sufficient for a meaningful analysis of the geographic distribution of the institution’s loans in its assessment area(s). 2 – If a geographic distribution analysis of the institution’s loans would be meaningful and the necessary geographic information (street address or…

Intermediate Small Institutions | Lending Test Performance Criteria | Review of Complaints

1 – Review all complaints relating to the institution’s CRA performance received by the institution (these should all be contained in the institution’s public file) and those that were received by its supervisory agency. 2 – If there were any complaints, evaluate the institution’s record of taking action, if warranted, in response to written complaints…

Intermediate Small Institutions | Lending Test | Ratings Matrix

  CHARACTERISTIC   OUTSTANDING   SATISFACTORY   NEEDS TO IMPROVE   SUBSTANTIAL NONCOMPLIANCE   Loan-to-deposit ratio   The loan-to-deposit ratio is more than reasonable (considering seasonal variations and taking into account lending-related activities) given the institution’s size, financial condition, and assessment area credit needs.   The loan-to-deposit ratio is reasonable (considering seasonal variations and taking…

Intermediate Small Institutions | Community Development Test

An institution should appropriately assess the needs in its community, engage in different types of community development activities based on those needs and the institution’s capacities, and take reasonable steps to apply its community development resources strategically to meet those needs. The flexibility inherent in the community development test allows intermediate small institutions to focus…

Intermediate Small Institutions | Community Development Test | Rating Matrix

  OUTSTANDING   SATISFACTORY   NEEDS TO IMPROVE   SUBSTANTIAL NONCOMPLIANCE   The institution’s community development performance 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 institution’s capacity and the need and availability of such opportunities for community development…

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