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A Guide to CRA Data Collection and Reporting

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					A Guide to
CRA Data Collection
and Reporting
Federal Financial Institutions
Examination Council


      January 2001
                                               This user’s guide was prepared by


                                                                 CRA/HMDA Systems
                                                                 Information Technology
                                                                 Board of Governors of the Federal Reserve System


                                               for the        Federal Financial Institutions
                                                              Examination Council




A Guide to CRA Data Collection and Reporting                                                                        2
                                               Foreword 4
Contents                                       Executive Summary: Compliance Responsibilities 5
                                                 Purpose of CRA     5
                                                 Who Must Report 5
                                                 When to Report     5
                                                 Reporting Requirements 6
                                                 File Specifications and Edit Validations   6
                                               Collecting the Data 8
                                                 Composite Loan Data         8
                                                 Other Loan Data     14
                                                 Consumer Loans         14
                                               Reporting the Data 16
                                                 Reporting Tools 16
                                                 Internet Resources      19
                                                 Data Automation Cycle 19
                                                 Public Availability of Data      22
                                               Glossary 23
                                               Appendix A—
                                                Regulation BB: Community Reinvestment 26
                                               Appendix B—
                                                Schedule RC-C, Part II.
                                                Loans to Small Businesses and Small Farms 46
                                                 General Instructions        46
                                                 Loans to Small Businesses 49
                                                 Agricultural Loans to Small Farms     52
                                                 Examples of Reporting in Schedule RC-C, Part II     54
                                               Appendix C—
                                                Thrift Financial Report Instruction Manual and Form 60
                                                 Loans to Small Businesses and Small Farms      60
                                               Appendix D—
                                                U.S. Bureau of the Census Regional Offices 64




A Guide to CRA Data Collection and Reporting                                                              3
Foreword




                                               In response to numerous          Users of this guide should be
                                               requests and inquiries, the      aware of its limitations. It
                                               Federal Financial Institutions   relates only to the collection,
                                               Examination Council (FFIEC)      maintenance, and reporting of
                                               has developed this guide for     small-business and small-farm
                                               Community Reinvestment Act       loan data and to the collection,
                                               (CRA) data reporters. Data       maintenance, and reporting
                                               collection, maintenance, and     (as applicable) of other loan
                                               reporting are important          data (except data on home
                                               aspects of large-institution     mortgage loans) that may be
                                               evaluations under CRA. This      considered during CRA
                                               guide can be used as a           evaluations. Although this
                                               resource when collecting and     guide addresses many issues
                                               maintaining data, creating a     relating to these matters, new
                                               submission, and posting          issues arise often; they should
                                               lending data in the CRA public   be directed to the CRA
                                               file. It is designed to reduce   Assistance Line at (202) 872-
                                               burden on the approximately      7584 or crahelp@frb.gov.
                                               2,000 financial institutions     Use of this guide is not a
                                               subject to the reporting         substitute for familiarity with
                                               requirements of the CRA          the CRA regulations and the
                                               regulations.                     interagency questions and
                                                                                answers (Qs&As) that inter-
                                                                                pret those regulations. The
                                                                                regulations and Qs&As may
                                                                                be revised from time to time,
                                                                                and you should consult them
                                                                                to determine whether this
                                                                                edition of the guide reflects
                                                                                the most recent revisions.
                                                                                Both are available on the
                                                                                FFIEC’s Internet site at
                                                                                www.ffiec.gov/cra.




A Guide to CRA Data Collection and Reporting                                                                   4
Executive                                      Purpose of CRA                              option for institutions with approved
                                                                                           strategic plans.
Summary:                                       The Community Reinvestment Act of
Compliance                                     1977 (CRA) is implemented by                The Consumer Compliance Task
                                               regulations of the Office of the
Responsibilities                               Comptroller of the Currency (OCC),
                                                                                           Force of the FFIEC promotes
                                                                                           consistency in the implementation of
                                               the Board of Governors of the               the CRA regulations by periodically
                                               Federal Reserve System (Board),             publishing interagency Qs&As and
                                               the Federal Deposit Insurance               examination procedures and by
                                               Corporation (FDIC), and the Office of       facilitating uniform data reporting.
                                               Thrift Supervision (OTS)
                                               (collectively, the agencies) in 12
                                               CFR parts 25, 228, 345, and 563e.           Who Must Report
                                               The CRA regulations require that
                                                                                           All state member banks, state
                                               information on business, farm, and
                                                                                           nonmember banks, national banks,
                                               community development lending by
                                                                                           and savings associations that are not
                                               large insured depository institutions
                                                                                           small or special-purpose institutions
                                               be made available to the public.
                                                                                           are subject to the data collection and
                                                                                           reporting requirements of the CRA.
                                               CRA directs the agencies to
                                                                                           For the purpose of collecting and
                                               encourage insured depository
                                                                                           reporting small business and small-
                                               institutions to help meet the credit
                                                                                           farm loan data, a small institution is a
                                               needs of the communities in which
                                                                                           bank or thrift that, as of December 31
                                               they are chartered. CRA does not
                                                                                           of either of the prior two calendar
                                               prohibit any activity, nor is it intended
                                                                                           years, had total assets of less than
                                               to encourage unsafe or unsound
                                                                                           $250 million and was independent or
                                               practices or the allocation of credit.
                                                                                           an affiliate of a holding company
                                                                                           that, as of December 31 of either of
                                               CRA requires that each insured
                                                                                           the prior two calendar years, had
                                               depository institution’s record in
                                                                                           total banking and thrift assets of less
                                               helping to meet the credit needs of
                                                                                           than $1 billion. Institutions that are
                                               its entire community, including low-
                                                                                           not small are considered large
                                               and moderate-income neighbor-
                                                                                           institutions (see the glossary,
                                               hoods, be assessed periodically.
                                                                                           beginning on page 23, for
                                               That record is taken into account
                                                                                           definitions).
                                               when considering an institution’s
                                               applications for deposit facilities,
                                               including mergers and acquisitions.
                                                                                           When to Report
                                               The CRA regulations contain                 Data for a given year must be
                                               different evaluation methods for            submitted to the Board, the
                                               different types of institutions: the        designated processor for all of the
                                               lending, investment, and service            agencies, by March 1 of the following
                                               tests for large retail institutions; the    year.
                                               community development test for
                                               wholesale or limited-purpose
                                                                                           Merging Institutions
                                               institutions; the streamlined
                                               performance standards for small             Following are three scenarios
                                               institutions; and the strategic-plan        describing data collection and



A Guide to CRA Data Collection and Reporting                                                                                       5
                                                                               Executive Summary: Compliance Responsibilities




reporting responsibilities for the             Institutions                               Reporting
calendar year of a merger and for              with No Small-Business
subsequent years.                              or Small-Farm Loans                        Requirements
                                               An institution that has not purchased      At a minimum, institutions must
Scenario One                                   or originated any small-business or        submit, in electronic format:
                                               small-farm loans during the reporting
Two institutions are exempt from                                                          · a transmittal sheet,
                                               period would not submit the
CRA collection and reporting                                                              · a definition of its assessment
                                               composite loan records for small-
requirements because of asset size.                                                         area(s),
                                               business or small-farm loans.
The institutions merge. No data                                                           · a record of its community
collection is required for the year in         However, all institutions subject to
                                                                                            development (CD) loans. (If an
                                               data reporting requirements must
which the merger takes place,                                                               institution does not have CD loans
                                               submit the information discussed
regardless of the resulting asset                                                           to report, the record should be sent
                                               below under “Reporting
size. Data collection would begin                                                           with “0” in the CD loan composite
                                               Requirements.”
after two consecutive years in which                                                        data fields); and
the combined institution had year-                                                        · information on small-business and
                                               Lenders Covered by Home
end assets of at least $250 million or                                                      small-farm loans, if applicable
                                               Mortgage Disclosure Act
was part of a holding company that
                                               If an institution is not required to       CRA data are aggregated on the
had year-end banking and thrift
assets of at least $1 billion.                 collect home mortgage loan data by         census tract level, and each tract
                                               the Home Mortgage Disclosure Act           represents one record in an entire
                                               (HMDA), it need not collect home           data submission. For example:
Scenario Two
                                               mortgage loan data under the CRA.          · Six different small-business loans
Institution A, an institution required         Examiners will sample an institu-            made in the same census tract
to collect and report data, and                tion’s home mortgage loans to                would count as one composite
Institution B, an exempt institution,          evaluate its home mortgage lending.          record.
merge. Institution A is the surviving          If an institution wants to ensure that     · Six different small-farm loans,
institution. For the year of the               examiners consider all of its home           three in one census tract and three
merger, data collection is required            mortgage loans, it may collect and           in another, would count as two
for Institution A’s transactions. Data         maintain data on these loans.                composite records.
collection is optional for the
transactions of the previously                 Modification, extension and
                                               consolidation agreements (MECAs)
exempt institution. For the following                                                     File Specifications
year, all transactions of the surviving        are transactions in which an
institution must be collected and              institution obtains loans from             and Edit Validations
reported.                                      another institution without actually
                                                                                          The FFIEC makes available free
                                               purchasing or refinancing the loans.
                                                                                          CRA data preparation software to
                                               In some states, MECAs, which are
Scenario Three                                                                            any institution that wishes to use it.
                                               not considered loan refinancings
                                                                                          The software includes some basic
Two institutions, each of which is             because the existing loan
                                                                                          analytical reports regarding an
required to collect and report the             obligations are not satisfied and
                                                                                          institution’s data. To obtain a copy of
data, merge. Data collection is                replaced, are common. Although
                                                                                          the latest version of the software,
required for the entire year of the            these transactions are not
                                                                                          contact the CRA Assistance Line at
merger and for subsequent years, so            considered to be purchases or
                                                                                          (202) 872-7584.
long as the surviving institution is not       refinancings, as those terms have
exempt. The surviving institution              been interpreted under CRA, they           If an institution finds that the
may file either a consolidated                 do achieve the same results. An            FFIEC’s software does not meet its
submission or separate submissions             institution may present information        needs, it may create a data
for the year of the merger but must            about its MECA activities to               submission using the File
file a consolidated report for                 examiners for consideration under          Specifications and Edit Validation
subsequent years.                              the lending test as “other loan data.”     Rules that have been set forth to


A Guide to CRA Data Collection and Reporting                                                                                    6
                                                                            Executive Summary: Compliance Responsibilities




assist with electronic data
submissions. For information about             Syntactical (S) — Records that contain errors that may prevent them
specific electronic formatting proce-          from being uploaded to the FFIEC database. These errors range from
dures, contact the CRA Assistance              incorrect activity years to duplicate property locations, which indicate that
Line at (202) 872-7584 or click on             the property combination for that record identifier was used more than
“How to File” at www.ffiec.gov/cra.            once. These records will not be reflected in your disclosure statement
                                               until the appropriate corrections have been made.
File Specifications
                                               Validity (V) — Records containing incorrect information. The most
Institutions that develop their own            common validity errors are incorrect census tract/BNA numbers. These
programs must follow the precise               records will not be reflected in your disclosure statement until the
format laid out in the CRA File                appropriate corrections have been made.
Specifications. This file format
should be incorporated into an                 Quality (Q) — Loan information that, while it may pass all syntactical and
automated system to ensure an                  validity edits, is nevertheless statistically unusual and is subject to further
error-free data submission.                    investigation or review to confirm correctness. For a majority of the quality
                                               edits, if the data are correct, no changes are necessary and the data will
Edit Validation Rules                          be reflected.
When an institution chooses to
create an electronic data
submission, it must edit its data
using the CRA Edit Validation Rules.
These rules are designed to ensure
data integrity and to prevent errors.
CRA edit validations are divided into
three edit types: syntactical, validity,
and quality. Each type corresponds
to errors of a different degree of
severity, and each must be
thoroughly understood to ensure that
the data are accurate and complete.




A Guide to CRA Data Collection and Reporting                                                                                     7
Collecting the                                 Composite Loan                            include the geographies in which its
                                                                                         main office, branches, and deposit-
Data                                           Data                                      taking ATMs are located as well as
                                               Transmittal Sheet                         the surrounding geographies in
                                                                                         which it has originated or purchased
                                               The transmittal sheet is used to          a substantial portion of its loans.
                                               identify each institution. Institutions   Please refer to section __.41 of the
                                               are asked to provide a reporter’s         regulations and the interagency
                                               identification (RID) number. This         Qs&As for further guidance,
                                               number corresponds to the                 particularly Q&A __.41(e)(4)–1,
                                               certificate number for FDIC-              which explains limitations on the
                                               supervised institutions, the docket       size of assessment areas.
                                               number for institutions supervised
                                               by the OTS, and the charter number        Note: When you are entering
                                               for OCC-supervised institutions. If an    information about small-business
                                               institution is supervised by the          and small-farm loans, you need to
                                               Board, the Research, Statistics,          provide MSA, state, county, and
                                               Supervision and Regulation, and           tract/BNA information to indicate the
                                               Discount and Credit (RSSD)                location of the loan. The information
                                               Number is used. Board-supervised          that you provide in the loan data
                                               institutions that do not know their       entry screens is not your assess-
                                               RSSD numbers should contact               ment area(s). This is simply the
                                               the CRA Assistance Line at (202)          loan’s location.
                                               872-7584 or crahelp@frb.gov to
                                                                                         Assessment Area(s) Reporting
                                               obtain it.
                                                                                         If your assessment area(s) includes
                                               The transmittal sheet provides
                                                                                         an entire MSA, you should report:
                                               valuable institution and contact
                                               information. It is important that the
                                               institution’s name, contact name,                                         Census
                                                                                         Include/                        Tract/
                                               address, phone number, and fax            Exclude MSA    State   County   BNA
                                               number be correct since all future
                                                                                         +       0520   NA      NA       NA
                                               correspondence will be based on
                                               that information. Because area            If your assessment area(s) includes
                                               codes are subject to change, it is        an MSA less one county, you should
                                               important to review phone and fax         report:
                                               numbers for accuracy before data
                                               submission.                                                               Census
                                                                                         Include/                        Tract/
                                                                                         Exclude MSA    State   County   BNA
                                               Assessment Area(s)
                                               Delineation                               +       0520   NA      NA       NA
                                                                                         -       0520   NA      151      NA
                                               For institutions other than those
                                               designated as wholesale or limited-       If your assessment area(s) includes
                                               purpose (see the glossary),               or consists of an entire county, you
                                               assessment areas must consist             should report:
                                               generally of one or more metro-
                                               politan statistical areas (MSAs) or                                       Census
                                                                                         Include/                        Tract/
                                               one or more contiguous political          Exclude MSA    State   County   BNA
                                               subdivisions such as counties,
                                                                                         +       0520   13      089      NA
                                               cities, or towns. An institution must



A Guide to CRA Data Collection and Reporting                                                                                  8
                                                                                                            Collecting the Data




For more assessment area(s)                    regarding the community develop-          meaning given to that term in 12
delineation examples, please refer             ment purpose and location of the          U.S.C. 1841(a)(2), and a company is
to the CRA Edits, which can be                 community development loans that          under common control with another
found at www.ffiec.gov/cra/                    they report at the time of their          company if both companies are
edits.htm.                                     examination.                              directly or indirectly controlled by the
                                                                                         same company.
Community Development                          Note: If an institution is not a
Loans                                          wholesale or limited-purpose              An institution is not required to
                                               institution, it cannot designate a loan   collect information on affiliate loans.
Institutions subject to data reporting                                                   However, an institution that elects to
                                               as a community development loan if
requirements must report the                                                             have its regulator consider loans by
                                               the loan has already been reported
aggregate number and amount of                                                           an affiliate, for purposes of the
                                               or collected by the institution or an
community development loans                    affiliate as a small-business, small-     lending or community development
originated or purchased during the                                                       test or an approved strategic plan,
                                               farm, consumer, or home mortgage
prior calendar year.                                                                     must collect, maintain, and report for
                                               loan (except in the case of a
                                               multifamily dwelling loan, which may      those loans the data that the
A community development loan has
                                               be considered a community                 institution would have collected,
community development as its
                                               development loan as well as a home        maintained, and reported had the
primary purpose. As defined in the
                                               mortgage loan). Further, except for       loans been originated or purchased
regulations, “community develop-
                                               multifamily affordable housing loans,     by the institution.
ment” means—
                                               if a loan meets the definition of a       An institution may elect to have only
· affordable housing (including                small-business, small-farm,               a particular category of an affiliate’s
  multifamily rental housing) for low-         consumer, or home mortgage loan,          lending considered. The basic
  or moderate-income individuals;              retail institutions must collect and      categories of loans are home
· community services targeted to               report the loan in this manner. Retail    mortgage loans, small-business
  low- or moderate-income                      institutions may not choose to            loans, small-farm loans, community
  individuals;                                 collect and report it as a community      development loans, and the five
· activities that promote economic             development loan.                         categories of consumer loans (motor
  development by financing                                                               vehicle loans, credit card loans,
                                               Primary Purpose
  businesses or farms that meet the                                                      home equity loans, other secured
  size eligibility standards of the            As long as the primary purpose of         loans, and other unsecured loans).
  Small Business Administration’s              the loan is community development,
  Development Company or Small                 the full amount of the institution’s      Affiliate’s Home Mortgage
  Business Investment Company                  loan should be included in its report     Lending
  programs (13 CFR 121.301) or                 of aggregate community develop-
  have gross annual revenues of $1             ment lending. A loan has a primary        If an institution elects to have an
  million or less; or                          purpose of community development          affiliate’s home mortgage lending
· activities that revitalize or stabilize      when it is designed for the express       considered in its CRA evaluation and
  low- or moderate-income                      purpose of community development.         the affiliate is a HMDA reporter, the
  geographies.                                 Refer to the interagency Qs&As for        institution must be prepared to
                                               further discussion of primary             identify those loans reported by its
In addition to having a community              purpose, particularly Q&A __.12(i)        affiliate under 12 CFR part 203
development purpose, a community               and 563e.12(h)–7.                         (Regulation C, implementing HMDA).
development loan must also benefit                                                       At its option, the institution may
the institution’s assessment area(s)                                                     either provide examiners with the
or a broader statewide or regional
                                               Affiliate Loans
                                                                                         affiliate’s entire HMDA disclosure
area that includes the institution’s           Affiliate means any company that          statement or just those portions
assessment area(s). Institutions               controls, is controlled by, or is under   covering the loans in its assessment
should be prepared to provide                  common control with another               area(s) that it is electing to have
examiners with information                     company. The term “control” has the       considered. If the affiliate is not



A Guide to CRA Data Collection and Reporting                                                                                   9
                                                                                                             Collecting the Data




required by HMDA to report home                  choose, for purposes of the              primarily lends in low- and
mortgage loans, the institution must             lending test, except that no             moderate-income areas or to low-
provide sufficient data concerning               participant or investor:                 and moderate-income individuals in
the affiliate’s home mortgage loans              — may claim a loan origination or        order to promote community
to enable the examiners to apply the                loan purchase if another              development, the institution may
performance tests.                                  participant or investor claims        claim a pro rata share of the CDC’s
                                                    the same loan origination or          loans as community development
Constraints on the Consideration                    purchase; or                          loans. The institution’s pro rata share
of Affiliate Lending                             — may claim loans accounting for         is based on its percentage of equity
No affiliate may claim a loan                       more than its percentage share        ownership in the CDC. See Q&A
origination or loan purchase if                     (based on the level of its            __.22(d)–1. More information
another institution claims the same                 participation or investment) of       concerning consideration of an
loan origination or purchase.                       the total loans originated or         equity or equity-type investment
However, an institution can count as                purchased by the consortium or        under the investment test and both
a purchase a loan originated by an                  third party.                          the lending and investment tests can
affiliate that the institution                                                            be found in Q&A __.23(b)–1.
                                               In some circumstances, an
subsequently purchases, or count as            institution may invest in a third party,   Evaluation of Loans Made
an origination a loan later sold to an         such as a community development            by Consortia or Third Parties
affiliate, provided the same loans are         bank, that is also an insured              under the Lending Test
not sold several times to inflate their        depository institution and is thus         Loans originated or purchased by
value for CRA purposes.                        subject to CRA requirements.               consortia in which an institution
If an institution elects to have its           However, if the financial institution      participates or by third parties in
supervisory agency consider loans              and the third party are not affiliates,    which an institution invests will only
within a particular lending category           the third party may receive                be considered if they qualify as
made by one or more of the                     consideration for the community            community development loans and
institution’s affiliates in a particular       development loans it originates, and       will be considered only under the
assessment area(s), the institution            the financial institution that invested    community development criterion of
must elect to have the agency                  in the third party may also receive        the lending test. However, loans
consider all loans within that lending         consideration for its pro rata share of    originated directly on the books of an
category in that particular                    the same community development             institution or purchased by the
assessment area(s) made by all of              loans under Q&A __.22(d)–3.                institution are considered to have
the institution’s affiliates.                  Equity and Equity-Type                     been made or purchased directly by
                                               Investments in a Third Party               the institution, even if the institution
Consortium/                                                                               originated or purchased the loans as
                                               If an institution has made an equity
Third-Party Loans                                                                         a result of its participation in a loan
                                               or equity-type investment in a third
Community development loans                    party, community development loans         consortium. These loans would be
originated or purchased by a                   made by the third party may be             considered under the appropriate
consortium in which an institution             considered under the lending test.         lending-test criteria, depending on
participates or by a third party in            On the other hand, asset-backed and        the type of loan. See Q&A
which the institution has invested:            debt securities that do not represent      __.22(d)–2.
                                               an equity-type interest in a third party
· will be considered, at the
  institution’s option, if the institution     will not be considered under the
                                               lending test unless the securities are
  reports the aggregate number and
                                               booked by the purchasing institution
  aggregate amount of consortium/
                                               as a loan.
  third party loans originated or
  purchased; and                               For example, if an institution
· may be allocated among                       purchases stock in a community
  participants or investors, as they           development corporation (CDC) that


A Guide to CRA Data Collection and Reporting                                                                                   10
                                                                                                            Collecting the Data




Small-Business                                 as those whose original amounts            Original Amount
and Small-Farm Loans                           are $500,000 or less and were              vs. Purchase Amount
The CRA regulations require a large            reported as either “Loans to finance       When collecting and reporting
institution to collect and maintain, in        agricultural production and other          information on purchased small-
electronic format, until the                   loans to farmers” or “Loans secured        business and small-farm loans, an
completion of its next CRA                     by farmland.”                              institution collects and reports the
examination, the following data for            The location of a small-business or        amount of the loan at origination,
each small-business or small-farm              small-farm loan must be maintained         not at the time of purchase. This is
loan originated or purchased by the            by census tract or block numbering         consistent with the Call Report and
institution:                                   area. In addition, supplemental            TFR guidelines, which use the
                                               information contained in the file          “original amount of the loan” to
· a unique number or alphanumeric
                                               specifications includes a date             determine (1) whether a loan should
  symbol that can be used to identify
                                               associated with the origination or         be reported as a “loan to a small
  the relevant loan file;
                                               purchase and whether the loan was          business” or a “loan to a small farm”
· the loan amount at origination;
                                               originated or purchased by an              and (2) in which loan-size category a
· the loan location; and
                                               affiliate.                                 loan should be reported. When
· an indicator of whether the loan
                                                                                          assessing the volume of small-
  was to a business or farm with               It is the original amount of a loan, not   business and small-farm loan
  gross annual revenues of $1                  the annual revenue of a business or        purchases for purposes of evaluating
  million or less                              farm, that determines the                  lending-test performance under
Institutions are required to collect           classification of a loan as a small-       CRA, however, examiners will
and report only those commercial               business or small-farm loan. The           evaluate an institution’s activity
loans that are included in “loans to           sections of the Call Report and            based on the amounts at purchase.
small business,” as defined in the             TFR relating to small-business
                                               and small-farm loans are included          Refinances and Renewals
instructions for preparation of the
Consolidated Report of Condition               in this guide as Appendices B
                                                                                          Data collected in 2000 and reported
and Income (Schedule RC-C,                     and C.
                                                                                          in 2001. An institution collects and
part II, of the Consolidated Report of                                                    reports information about
Condition and Income (Call Report)             Aggregate Reporting                        refinancings but does not collect and
or Schedule SB of the Thrift                                                              report information about renewals. A
                                               An institution subject to data
Financial Report (TFR), as                                                                refinancing typically involves the
                                               reporting requirements must report
applicable).                                                                              satisfaction of an existing obligation
                                               the aggregate number and amount of
                                                                                          that is replaced by a new obligation
                                               loans for each geography in which it
   “It is the original amount of a                                                        undertaken by the same borrower.
                                               originated or purchased a small-
   loan, not the annual revenue                                                           When an institution refinances a
                                               business or small-farm loan. Loans
   of a business or farm, that                                                            loan, it is considered a new
                                               to businesses and farms are
   determines the classification                                                          origination, and loan data should be
                                               reported by origination amounts of
   of a loan as a small-business                                                          collected and reported, if otherwise
   or small-farm loan.”                        · $100,000 or less,                        required. Consistent with HMDA,
                                               · more than $100,000 but less than         however, if under the original loan
                                                 or equal to $250,000, and                agreement the institution is
Small-business loans are defined as
                                               · more than $250,000.                      unconditionally obligated to refinance
those whose original amounts are $1
                                                                                          the loan subject to conditions within
million or less and that were reported         Institutions must also report loans to
                                                                                          the borrower’s control, the institution
on the institution’s Call Report or            businesses and farms with gross
                                                                                          should not report these events as
TFR as either “Loans secured by                annual revenues of $1 million or
                                                                                          originations.
nonfarm or nonresidential real                 less, using the revenues that the
estate” or “Commercial and industrial          institution considered in making its       For purposes of CRA data collection
loans.” Small-farm loans are defined           credit decisions.                          and reporting requirements, the



A Guide to CRA Data Collection and Reporting                                                                                  11
                                                                                                          Collecting the Data




extension of the maturity of an                this example, the institution should      Loans to Fisheries
existing loan is a renewal and is not          report both the $5,000 increase and       and Forestries
considered a loan origination.                 the renewal or refinancing of the         Instructions for part I of the Call
Therefore, institutions should not             $15,000 as originations for that year.    Report and Schedule SB of the
collect and report data on loan                                                          TFR include loans “made for the
                                               However, the institution may report
renewals.                                                                                purpose of financing fisheries and
                                               the $5,000 increase together with
Data collected in 2001 and                     the renewal or refinancing of the         forestries, including loans to
subsequent years. An institution               $15,000 as one origination for that       commercial fishermen” as a
should collect information about               year.                                     component of the definition of
small-business and small-farm loans                                                      “Loans to finance agricultural
that it refinances or renews as loan           Lines of Credit                           production and other loans to
originations. (A refinancing generally                                                   farmers.” Part II of Schedule RC-C
                                               Institutions must collect and report
occurs when the existing loan                                                            of the Call Report and Schedule
                                               data on lines of credit in the same
obligation or note is satisfied and a                                                    SB of the TFR, which serve as the
                                               way that they provide data on loan
new note is written, while a renewal                                                     basis of the definition for small-
                                               originations. Lines of credit are
is an extension of the term of a loan.                                                   business and small-farm loans in the
                                               considered originated at the time the
However, for purposes of small-                                                          regulation, capture both “Loans to
                                               line is approved or increased; and
business and small-farm CRA data                                                         finance agricultural production and
                                               an increase is considered a new
collection and reporting, it is no                                                       other loans to farmers” and “Loans
                                               origination.
longer necessary to distinguish                                                          secured by farmland.” These loans
between the two.) When reporting               Generally, the full amount of the         are reported as small-business or
small-business and small-farm data,            credit line is the amount that is         small-farm loans.
however, an institution may report             considered originated. In the case of
only one origination (including a              an increase to an existing line, the
renewal or refinancing treated as an           amount of the increase is the             Home Equity Lines
origination) per loan per year, unless         amount that is considered originated      of Credit Used Predominantly
an increase in the loan amount is              and that amount should be reported.       for Small-Business Purposes
granted.                                       For renewals of line of credit, the       Institutions that have chosen to
                                               rules are as follows:                     report home equity lines of credit
If an institution increases the
amount of a small-business or                                                            under HMDA report only the portion
                                               Data collected in 2000 and reported
small-farm loan when it extends the            in 2001. Like loan renewals,              of a home equity line used for
term of the loan, it should always                                                       home improvement purposes. That
                                               renewals of lines of credit are not
report the amount of the increase as                                                     portion of the loan would then be
                                               considered loan originations and
a small-business or small-farm loan                                                      consid-ered when examiners
                                               should not be collected or reported.
origination. The institution should                                                      evaluate home mortgage lending. If
report only the amount of the                  Data collected in 2001 and subse-         the line meets the regulatory
increase if the original or remaining          quent years. Renewals of lines of         definition of a “community
amount of the loan has already                 credit for small-business, small-farm,    development loan,” the institution
been reported one time that year.              or consumer purposes should be            should collect and report information
                                               collected and reported, if appli-         on the entire line as a community
For example, a financial institution           cable, in the same manner as              development loan. If the line does
makes a term loan for $25,000;                 renewals of small-business or small-      not qualify as a community
principal payments have resulted in            farm loans (see Q&A __.42(a)–5).          development loan, the institution
a present outstanding balance of               Institutions that are HMDA reporters      has the option of collecting and
$15,000. In the next year, the                 continue to collect and report home       maintaining (but not reporting) the
customer requests an additional                equity lines of credit at their option,   entire line of credit as “Other
$5,000, which is approved, and a               in accordance with the requirements       secured lines/loans for purposes of
new note is written for $20,000. In            of 12 CFR part 203.                       small business.”



A Guide to CRA Data Collection and Reporting                                                                               12
                                                                                                           Collecting the Data




Credit Cards Issued                            Gross Annual Revenues                    of the entity’s parent or a subsidiary
to Small Businesses                                                                     corporation of the parent as well,
                                               The regulations do not require
If an institution agrees to issue credit                                                then the institution would aggregate
                                               institutions to request or consider
cards to a business’s employees,                                                        the revenues of both corporations to
                                               revenue information when making a
the institution reports all of the credit                                               determine whether the revenues are
                                               loan; however, if institutions do
card lines opened on a particular                                                       $1 million or less. Alternatively, if the
                                               gather this information from their
date for that single business as one                                                    institution considered the revenues
                                               borrowers, they should collect and
small-business loan origination                                                         of only the entity to which the loan is
                                               report the gross annual revenue,
rather than reporting each individual                                                   actually extended, the institution
                                               rather than the adjusted gross
credit card line, assuming the                                                          should rely solely upon whether
                                               annual revenue, of their small-
criteria in the small-business loan                                                     gross annual revenues are above or
                                               business or small-farm borrowers.
definition in the regulation are met.                                                   below $1 million for that entity.
                                               The purpose of small-business and
The credit card program’s amount at            small-farm data collection is to         However, if the institution considered
origination is the sum of all of the           enable examiners and the public to       and relied on revenues or income of
employee/business credit cards’                judge whether the institution is         a cosigner or guarantor that is not an
credit limits opened on a particular           lending to small businesses and          affiliate of the borrower, such as a
date. If subsequently issued credit            farms or whether it is only making       sole proprietor, it should not adjust
cards increase the small-business              small loans to larger businesses and     the borrower’s revenues for
credit line, the added amount is               farms.                                   reporting purposes.
reported as a new origination.
                                               The CRA regulations similarly do         For a start-up business, the
Lending Outside the United States              not require institutions to verify       institution should use the actual
                                               revenue amounts; thus, institutions      gross annual revenue to date
An institution may collect data about                                                   (including $0 if a new business has
                                               may rely on the gross annual
small-business and small-farm loans
                                               revenue amount provided by               had no revenue to date). Although
located outside the United States;
                                               borrowers in the ordinary course of      start-up businesses will provide the
however, it cannot report these data
                                               business. If an institution does not     institution with pro forma projected
because the FFIEC CRA data
                                               collect gross annual revenue             revenue figures, these figures may
collection software will not accept                                                     not accurately reflect actual gross
                                               information for its small-business
data concerning loan locations
                                               and small-farm borrowers, it would       revenue.
outside the United States.
                                               not indicate on the CRA data
                                               collection software that the gross       Loan Location
Multiple Loan Originations
                                               annual revenues of the borrower are
to the Same Business                                                                    Prudent banking practices dictate
                                               $1 million or less. The institution
                                                                                        that an institution know the location
If an institution originates multiple          should enter the code indicating
                                                                                        of its customers and loan collateral.
loans to the same business, the                “revenues not known” on the
                                                                                        Therefore, institutions typically will
loans should be collected and                  individual loan portion of the data
                                                                                        know the actual location of their
reported as separate originations              collection software or on an
                                                                                        borrowers or loan collateral beyond
rather than combined and reported              internally developed system.
                                                                                        an address consisting only of a post
as they are on the Call Report or
                                                                                        office box.
TFR, which reflect loans outstanding,          Generally, an institution should rely
rather than originations. However, if          on the revenues that it considered in    Many borrowers have street
institutions originate multiple loans to       making its credit decision when          addresses in addition to post office
the same business solely to                    indicating whether a small-business      box numbers or rural route and box
artificially inflate the number or             or small-farm borrower had gross         numbers. Institutions should ask
volume of loans evaluated for CRA              annual revenues of $1 million or less.   their borrowers to provide the street
lending performance, the agencies              For example, in the case of affiliated   address of the main business facility
may combine these loans for                    businesses, such as a parent             or farm or the location where the
purposes of evaluation under the               corporation and its subsidiary, if the   loan proceeds otherwise will be
CRA.                                           institution considered the revenues      applied. Moreover, in many cases in


A Guide to CRA Data Collection and Reporting                                                                                  13
                                                                                                            Collecting the Data




which the borrower’s address                   free of charge by the FFIEC               institution that chooses to collect
consists only of a rural route number          provides that an institution may          and maintain information on
or post office box, the institution            collect this information to               consumer loans collects the gross
knows the location (i.e., the census           supplement its small-business             annual income of all primary
tract or block numbering area) of the          lending data by choosing the loan         obligors for consumer loans, to the
borrower or loan collateral. Once the          type “Other secured lines/loans for       extent that the institution considered
institution has this information, it           purposes of small business,” in the       the income of the obligors when
should assign a census tract or                individual loan data. (The title of the   making the decision to extend credit.
block numbering area to that                   loan type, “Other secured lines of        Primary obligors include co-
location (geocode) and report that             credit for purposes of small              applicants and co-borrowers,
information as required under the              business,” which was found in the         including cosigners. An institution
regulations.                                   instructions accompanying the 1996        does not, however, collect the
                                               data collection software, has been        income of guarantors on consumer
For loans originated or purchased in
                                               changed to “Other secured lines/          loans, because guarantors are only
1998 or later, if the institution cannot
                                               loans for purposes of small               secondarily liable for the debt.
determine the borrower’s street
                                               business” in order to accurately
address, and does not know the                                                           If consumer lending constitutes a
                                               reflect that lines of credit and loans
census tract or block numbering area                                                     substantial majority of an institu-
                                               may be reported under this loan
it should report the borrower’s state,                                                   tion’s business, its supervisory
                                               type.) This information should be
county, MSA, if applicable, and “NA,”                                                    agency will evaluate the institution’s
                                               maintained at the institution but
for “not available,” in lieu of a census                                                 consumer lending in one or more of
                                               should not be submitted for central
tract or block numbering area code.                                                      the following categories: motor
                                               reporting purposes.
                                                                                         vehicle, credit card, home-equity,
Other Loan Data                                Loan Commitments                          other secured, and other unsecured
                                               and Letters of Credit                     loans. In addition, at an institution’s
Schedule RC-C, part II, of the Call                                                      option, its supervisory agency will
Report and Schedule SB of the                  Institutions are not required to
                                                                                         evaluate one or more categories of
                                               collect data on loan commitments
TFR do not allow financial                                                               consumer lending, if the institution
                                               and letters of credit. They may,
institutions to report loans for                                                         has collected and maintained, as
                                               however, provide for examiner
commercial and industrial purposes                                                       required in section __.42(c)(1), the
                                               consideration information on letters
that are secured by residential real                                                     data for each category that the
estate. Loans extended to small                of credit and commitments.
                                                                                         institution elects to have its
businesses with gross annual                                                             supervisory agency evaluate.
                                               Commercial
revenues of $1 million or less may,
                                               and Consumer Leases                       Where an institution collects data for
however, be secured by residential
real estate. If these loans promote            Commercial and consumer leases            loans in a certain category, it must
community development, as defined              are not considered small-business         collect data for all loans originated
in the regulations, the institution            or small-farm loans or consumer           or purchased within that category.
should collect and report information          loans for purposes of the data            The institution must maintain these
about these loans as community                 collection requirements for               data separately for each category
development loans. Otherwise, at an            commercial or consumer loans.             for which it chooses to collect data.
institution’s option, it may collect and       However, if an institution wishes to      The data collected and maintained
maintain data concerning loans,                collect and maintain data about           should include for each loan:
purchases, and lines of credit                 leases, it may provide these data to
                                                                                         · a unique number or alphanumeric
extended to small businesses and               examiners as “other loan data.”
                                                                                           symbol that can be used to identify
secured by residential real estate for                                                     the relevant loan file;
consideration in the CRA evaluation
                                               Consumer Loans                            · the loan amount at origination or
of its small-business lending.
                                                                                           purchase;
To facilitate this optional data               There are no data reporting require-      · the loan location; and
collection, the software distributed           ments for consumer loans. An              · the gross annual income of the


A Guide to CRA Data Collection and Reporting                                                                                  14
                                                                                                          Collecting the Data




  borrower that the institution                underwriting decision in connection       The purpose of collecting income
  considered in making its credit              with a consumer loan, the institution     data on consumer loans is to enable
  decision.                                    does not need to collect income           examiners to determine the
                                               information. On the other hand, if        distribution based on borrower
Generally, guidance concerning
                                               institutions gather this information      characteristics, including the
collection of data on small-business
                                               from their borrowers, the agencies        number and amount of consumer
and small-farm loans—including, for
                                               expect them to collect the borrowers’     loans to low-, moderate-, middle-,
example, guidance regarding
                                               gross annual income for purposes of       and upper-income borrowers, as
collecting loan location data and
                                               CRA.                                      determined on the basis of gross
data in connection with refinanced
                                                                                         annual income, particularly in the
or renewed loans—will also apply to
                                               Further, if the institution routinely     institution’s assessment area(s).
consumer loans.
                                               collects, but does not verify, a
                                                                                         An institution can list “0” in the
                                               borrower’s income when making a
Borrower Income                                                                          income field on consumer loans
                                               credit decision, it need not verify the
                                                                                         made to its employees when
The CRA does not require                       income for purposes of data
                                                                                         collecting data for CRA purposes, as
institutions to request or consider            maintenance. Institutions may rely
                                                                                         the institution would be permitted to
income information when making a               on the gross annual income amount
                                                                                         do under HMDA.
loan. If an institution does not               provided by borrowers in the
consider income when making an                 ordinary course of business.




A Guide to CRA Data Collection and Reporting                                                                               15
Reporting                                      Reporting Tools                             state, county, and census tract/BNA
                                                                                           codes for street addresses. In
the Data                                       FFIEC Data Entry Software                   addition, some demographic
                                               The CRA Data Entry software is              information (mainly population and
                                               provided free of charge by the              income) can be obtained for a
                                               FFIEC to help financial institutions        particular census tract/BNA. The
                                               automate the filing of their CRA            Internet address is
                                               data. The software includes editing         www.ffiec.gov/geocode.
                                               and reporting features to help verify,
                                               complete, and analyze data. Data            Sources of Geographic
                                               created using this package can be           Information
                                               easily exported onto a diskette and
                                                                                           The following sources may help you
                                               mailed or transmitted by e-mail to
                                                                                           report geographic data accurately.
                                               the Board.
                                                                                           Information about
                                               Any institution that is interested in       MSA Boundaries
                                               receiving a copy of the software
                                               may:                                        You can obtain information on
                                                                                           current and historical MSA
                                               · send a written request to                 boundaries at www.census.gov by
                                                 Federal Reserve Board                     selecting Subjects A–Z, then M,
                                                 Attn: CRA Processing                      then Metropolitan Areas, then
                                                 1709 New York Avenue, 5th Floor           Metropolitan Definitions.
                                                 Washington, DC 20006
                                                 or                                        CRA uses the term MSA—
                                                                                           metropolitan statistical area—for
                                               · send an e-mail request to                 MSAs, CMSAs (consolidated
                                                 crahelp@frb.gov                           metropolitan statistical areas), and
                                                 or                                        PMSAs (primary metropolitan
                                                                                           statistical areas). MSAs, CMSAs,
                                               · leave a voice-mail request on the
                                                                                           and PMSAs are components of
                                                 CRA Assistance Line at
                                                                                           metropolitan areas, or MAs. The
                                                 (202) 872-7584.
                                                                                           Office of Management and Budget,
                                               Please be sure to include a contact         which defines their geographic
                                               name, mailing address, and a phone          boundaries, and the Census Bureau
                                               number where you may be reached.            refer to the generic term MA.
                                               The geocoding utility is included in        To determine MSA boundaries for
                                               this software; the use of this utility by   future years, you may need to obtain
                                               an institution is optional. If you wish     FIPS PUB 8-5, Metropolitan
                                               to use it, your institution will be         Statistical Areas. Contact:
                                               required to purchase the                      National Technical Information
                                               geographical data, which is                     Services
                                               available only on CD-ROM from PCi             U.S. Department of Commerce
                                               Services, Inc. (PCi), of Boston,              Port Royal Road
                                               Massachusetts. A PCi Services                 Springfield, VA 22161
                                               order form can be downloaded from             (703) 487-4650
                                               the FFIEC’s CRA website at
                                                                                           A list of all valid census tract
                                               www.ffiec.gov/cra/softinfo.htm.
                                                                                           numbers (and BNA designations) in
                                               The FFIEC also has an Internet site         each MSA is available for a fee from
                                               that allows users to retrieve MSA,          the Board’s HMDA Assistance Line


A Guide to CRA Data Collection and Reporting                                                                                  16
                                                                                                          Reporting the Data




at (202) 452-2016. The list will help
ensure that you are using only valid
census tract numbers; however, the
list is not a tool for geocoding your
CRA data.
The FFIEC Census Data CD-ROM
also contains census tract number
information as well as other
informative census and demographic
data. To order this software, contact
the HMDA Assistance Line at (202)
452-2016.

Census Bureau Products
The following products for deter-
mining the correct 1990 census tract
number for a given property are                Illustration 1: LandView®III
available from the Census Bureau.
LandView III                                   Ordering information and a fully          Census Tract/Block Numbering Area
                                               functional copy of the software with      Outline Maps
LandView III is Census Bureau CD-
ROM desktop mapping software                   a single county’s map and data (you       If you prefer paper maps, you may
product. It runs on Windows® 3.1,              can specify the county) can be            use the 1990 Census Tract/Block
Windows 95, Windows 98, Windows                downloaded from the Census                Numbering Area Outline Maps for
2000, and Macintosh operating                  Bureau’s website at                       the counties within the MSAs for
systems. LandView III shows a                  www.census.gov/geo/www/tiger.             which you are reporting (see
detailed network of roads
(containing address information
where available), rivers, and
railroads, along with jurisdictional
and statistical boundaries (including
census tracts). The information is
based upon the Census Bureau’s
TIGER/Line 1995 files, which reflect
the street network and address
ranges known to the Census Bureau
as of the fall of 1995. Besides
producing custom map views that
display selected user-specified map
information (see Illustration 1),
LandView also provides the
capability of displaying the FIPS
state and county codes, census tract
or block numbering area codes, and
block group codes for any location
that a user points to on the map.
This product can be ordered from
the Census Bureau Customer
Service Center.                                Illustration 2: 1990 Census Tract Outline Map


A Guide to CRA Data Collection and Reporting                                                                                 17
                                                                                                                                       Reporting the Data




                                                                                                                    product is now available on
 TIGER/Census Tract Street Index®—Ver. 2, Part A                                               Fairfax County, VA
                          From         To   Street   Tract or   ZIP                              103rd    FIPS
                                                                                                                    CD-ROM.
 Street Name           Address    Address   Side     BNA        Code    Area Name                Cong.    Code
 Barkley Dr               3100       3699   Both     4401.98    22031   Mantua CDP               11       49144     The TIGER/CTSI Version 2 has
 Bark Tree Ct             8285       8367   Odd      4924       22153   Lorton CDP               08       47064
 Bark Tree Ct             8300       8354   Even     4924       22153   Lorton CDP               08       47064
                                                                                                                    certain limitations:
 Barkwood Ct
 Barley Rd
                          9500
                          3100
                                     9599
                                     3199
                                            Both
                                            Both
                                                     4405
                                                     4619.98
                                                                22032
                                                                22031   Oakton CDP
                                                                                                 11
                                                                                                 11       58472
                                                                                                                    · Address-range and street
 Barley Wk                7400       7416   Both     4502       22042   Jefferson CDP            11       40584       information are current through
 Barlow Rd                  900       948   Both     4162       22060   Fort Belvoir CDP         08       29008
 Barnack Dr               6700       7021   Both     4314       22152   West Springfield CDP     08       84976       April 1990. This means that
 Barnacle Pl              7000       7009   Both     4324       22015   Burke CDP                11       11464       addresses or streets added since
 Barnard Ct               3100       3150   Both     4617.98    22031   Merrifield CDP           11       51192
 Barnesdale Path          6300       6536   Even     4911       22020                            10                   that time are not shown.
 Barnesdale Path          6301       6533   Odd      4911       22022                            10
 Barnesville Rd          13704      13910   Even     4825       22070                            10                 · The index does not contain
 Barney Rd                3800       3843   Both     4901       22021                            10                   address-range information for
 Barnsbury Ct             9900       9939   Both     4619.98    22031   Oakton CDP               11       58472
                                                                                                                      areas with rural-type addresses
                                                                                                                      (such as RFD addresses).
Illustration 3: 1990 TIGER/Census Tract Street Index®
                                                                                                                    The Census Bureau is currently
                                                                                                                    preparing the TIGER/CTSI Version 3
                                                                                                                    products for public release. These
Illustration 2). Besides showing                            Index (TIGER/CTSI) for the county                       products will reflect the street
numbers for census tracts (and                              in which the property is located                        network and address ranges known
BNAs) within a particular county,                           (Illustration 3).                                       to the Census Bureau as of summer
these maps display the boundaries                                                                                   of 1997. Check the Census TIGER
and names of the features used as                           The TIGER/CTSI enables you to                           page, www.census.gov/geo/www/
census tract boundaries and the                             determine the census tract numbers                      tiger, for the current status.
names of any counties or other                              for properties that use city-style
                                                                                                                    A special HMDA order form available
subdivisions.                                               street addresses. It is arranged by
                                                                                                                    from the Bureau of the Census tells
                                                            county within each MSA. The
The outline maps are sold by the                                                                                    you how to obtain the TIGER/CTSI
                                                            TIGER/CTSI provides the street
Census Bureau’s Customer                                                                                            for selected counties. To obtain the
                                                            name, including prefix or suffix
Services Center in county packages.                                                                                 HMDA order form for the TIGER/
                                                            direction (such as “north”) and street
On average, there are four map                                                                                      CTSI, the outline maps, and
                                                            type (such as “street” or “avenue”),
sheets per metropolitan county. The                                                                                 LandView III, contact:
                                                            address range, and corresponding
map sheets are oversized—gener-                                                                                       Customer Services Center
                                                            census tract number. Within a
ally 36 by 42 inches—and map                                                                                          Bureau of the Census
                                                            county, numbered streets (for
scales vary to minimize the number                                                                                    Washington, DC 20233
                                                            example, 9th, 10th) precede the
of map sheets. Maps may include                                                                                       (301) 457-4100
                                                            streets listed alphabetically.
one or more insets of densely settled
areas.                                                                                                              To obtain detailed information about
                                                            The TIGER/CTSI shows the census                         geographic products:
The outline maps do not show                                tract number for each side of the
                                                                                                                      Geography Division—
streets, street names, or address                           street and, where applicable,                               Products and Services Staff
ranges within a census tract. You will                      provides the county subdivision                           Bureau of the Census
therefore need to use the maps in                           (town, township) and place codes for                      Washington, DC 20233
combination with up-to-date local                           each street and address range. The                        (301) 457-1128
street maps available in your local                         latter may be helpful in determining
                                                                                                                      tiger@census.gov
market, and to use a marker pen to                          the census tract number when
highlight on the street map the                             streets with identical names and                        You also may contact the Census
boundaries of each census tract                             address ranges are located in                           Bureau regional office serving your
according to the outline map.                               different parts of the county. (County                  state as listed in appendix D of this
                                                            subdivision and place codes and                         guide. The costs of the census
TIGER/Census Tract Street Index®
                                                            their corresponding names are listed                    materials will vary, depending on the
Use the TIGER/Census Tract Street                           in the back of TIGER/CTSI.) This                        size of the county.


A Guide to CRA Data Collection and Reporting                                                                                                          18
                                                                                                              Reporting the Data




The Census Bureau is not able to               Data submissions should be mailed          Institution Register
assist in preparing data to meet               to:                                        Summary (IRS)
CRA requirements or in determining               Federal Reserve Board
                                                                                          Confirmation
the appropriate census tract                     Attn: CRA Processing                     If an institution provides an error-
numbers for individual addresses.                1709 New York Avenue, 5th Floor          free submission, it will receive an
Geographic information is available              Washington, DC 20006                     IRS (see Illustration 5). The IRS is
from the FFIEC’s website at                                                               used as a final confirmation of the
                                               Data submitted via e-mail should be
www.ffiec.gov/geocode.                                                                    data that have been sent. The
                                               encrypted using the FFIEC’s
                                               Internet Submission Software, which        institution’s CRA officer or individual
                                               accompanies the FFIEC’s Data               responsible for submitting CRA data
Internet Resources                                                                        must sign the form included with the
                                               Entry Software and sent to
The Census Bureau offers a                     crasub@frb.gov.                            IRS and fax it to the Board at (202)
subscription service that allows                                                          530-6234.
                                               After an institution’s data have been
users on-line access to information
                                               received and loaded, the data are          Data Resubmission
contained in TIGER/CTSI. Institu-
                                               run through a batch process to
tions that have an occasional need                                                        Resubmissions are prepared by an
                                               check for any errors or discrep-
to determine tract numbers in parts                                                       institution if the institution identifies
                                               ancies. The data automation cycle
of the country other than where they                                                      errors or needs to make changes to
                                               has three steps that all reporting
primarily do business might be                                                            data that have already been
                                               institutions must complete for
interested in using this service.                                                         submitted. If the resubmission is
                                               successful CRA data submission.
To access this Internet site, enter            These steps, described below, are          made after the CRA data have been
www.census.gov and select                      edit report review, institution register   aggregated and made publicly
CenStats Censtore, then                        summary confirmation, and data             available, the institution must send a
CenStats, then test drive. The test            resubmission.                              complete resubmission, and should
drive page gives basic information                                                        state that it is a “complete
about the service and has links to             Edit Report Review                         resubmission.” After the receipt of
detailed descriptions of TIGER/CTSI                                                       the resubmission, new edit or IRS
                                               The edit report gives an institution       reports will be distributed.
Version 2. The link at the top of each
                                               an opportunity to verify submitted
page gives a sample of the informa-
                                               statistics and provides the institution    Automatic Faxback
tion you can expect.
                                               with a listing of errors that were         System
To obtain more detailed                        discovered during the editing cycle.
demographic information on the                 Illustration 4 is an example of an edit    The CRA data process includes an
Internet, you can access census                report with errors. Because CRA            automatic faxback feature to make
data through the FFIEC’s website at            submissions are electronically             transmission of correspondence
http://www.ffiec.gov/webcensus/                based, the institution that submitted      simpler and to reduce paper usage.
ffieccensus.htm.                               these data would have to correct its       The faxback system uses the fax
                                               errors and send a complete                 number provided by the institution
                                               resubmission. The resubmission             on its transmittal sheet to send the
Data Automation                                replaces the institution’s previous        edit reports, institution register
                                                                                          summary, and any other
Cycle                                          submission.
                                                                                          correspondence.
Data must be submitted to the
Board, designated processor for all
the agencies, no later than March 1.




A Guide to CRA Data Collection and Reporting                                                                                    19
                                                                                                   20XX COMMUNITY REINVESTMENT ACT (CRA)                   Rundate: 01/28/20XX
                                                                                                               EDIT REPORT                                   Runtime: 20:00:08
                                                                                     Agency: 1-OCC            Region: 2          Respondent ID: 0000063903   Page:    1

                                                      CRA COMPLIANCE BANK                           Contact: JOHN DOE REPORTER                              Phone: XXX-XXX-XXXX
                                                      100 MAIN STREET                                                                                       Fax:    XXX-XXX-XXXX
                                                      ANYWHERE USA 80260-0000                                                                               Tax ID: XX-XXXXXXX
                                                      ————————————
                                                      SMALL BUSINESS LOANS - 4
                                                      ————————————
                                                                                                              Number Loans/Total Loan Amount (000s)
                                                                                                                                              Revenues        Affiliate
                                                        MSA/ST/CTY/TR-BNA                    <= $100K     $100K to $250K      > $250K          <= $1M           Loans

                                                      0480/37/021/0200.00 Originated: 000001/00000006 000000/00000000 000000/00000000     000001/00000006       /




A Guide to CRA Data Collection and Reporting
                                                                           Purchased: 000000/00000000 000000/00000000 000000/00000000     000000/00000000       /
                                                                          Total(O+P):                                                     000001/00000006 000000/00000000
                                                           ERROR(S):
                                                            V320 Census Tract-BNA missing or does not = a valid census tract-BNA for       the MSA/state/county combo

                                                      0480/37/021/0500.00 Originated: 000001/00000017 000000/00000000 000000/00000000     000001/00000017       /
                                                                           Purchased: 000000/00000000 000000/00000000 000000/00000000     000000/00000000       /
                                                                          Total(O+P):                                                     000001/00000017 000000/00000000
                                                           ERROR(S):
                                                            V320 Census Tract-BNA missing or does not = a valid census tract-BNA for       the MSA/state/county combo

                                                      1520/37/119/0000.00 Originated: 000001/00000015 000000/00000000 000000/00000000     000000/00000000       /
                                                                           Purchased: 000000/00000000 000000/00000000 000000/00000000     000000/00000000       /
                                                                          Total(O+P):                                                     000000/00000000 000000/00000000
                                                           ERROR(S):
                                                            V320 Census Tract-BNA missing or does not = a valid census tract-BNA for       the MSA/state/county combo

                                                      1520/37/190/0060.01 Originated: 000001/00000028 000000/00000000 000000/00000000 000001/00000028       /
                                                                           Purchased: 000000/00000000 000000/00000000 000000/00000000 000000/00000000       /
                                                                          Total(O+P):                                                 000001/00000028 000000/00000000
                                                           ERROR(S):
                                                              V310 County is missing or state/county does not equal a valid combination




                                               Illustration 4: Edit report with errors




20
                                                                                                                                                                                   Reporting the Data
                                                                                                                                                       Reporting the Data




                                                  20XX COMMUNITY REINVESTMENT ACT (CRA)                         Rundate: 03/18/20XX
                                                                                               INSTITUTION REGISTER SUMMARY (IRS)                       Runtime:   20:01:17
                                                                             Agency: 2-FRB             Region: 5          Respondent ID: 0000891276     Page:      1

                                                  FIRST NATIONAL COMPLIANCE                Contact: JENNY REGULATOR                                Phone: XXX-XXX-XXXX
                                                  106 S. LAFAYETTE STREET                                                                          Fax:    XXX-XXX-XXXX
                                                  SOMEWHERE USA 14587                                                                              Tax ID: XX-XXXXXXX
                                                  ________________________________________________________________________________________________________________________
                                                                                                     Small Business        Small Farm         Community    Consortium/
                                                                                                         Loans               Loans            Dev. Loans   Third Party
                                                  # of Tracts/BNAs with Loans                                29                 12

                                                  Total # of Loans on File                                    596                  29                     3             0
                                                  Total Loan Amounts on File (000s)                         31640                 925                 56480             0

                                                  Total # of Originated Loans on File                         596                  29
                                                  Total Originated Ln Amounts on File (000s)                31640                 925

                                                  Total # of Affiliate Loans on File                            0                   0                    0
                                                  Total Affiliate Ln Amounts on File (000s)                     0                   0                    0

                                                  Small Business or Farm Loans
                                                  Loans with <= $1 Million in Revenues
   The Institution Register                          Number                                                   287                  11
                                                     Total Loan Amount (000s)                               11651                 149
   Summary (IRS) is used by                       Small Business or Farm Loans <= $100K
                                                     Number                                                   522                  27
   each reporting institution to                     Total Loan Amount (000s)                               11550                 687

   verify and confirm CRA                         Small Bus. or Farm Lns > $100K To $250K
                                                     Number                                                     44                  2
   statistics.                                       Total Loan Amount (000s)                                 7284                238

                                                  Small Business or Farm Loans > $250K
                                                     Number                                                 30                   0
                                                     Total Loan Amount (000s)                            12806                   0
                                                  ________________________________________________________________________________________________________________________

                                                  — ASSESSMENT AREA —
                                                                               Total   Number of Assessment Areas                                  1
                                                                               Total   MSAs in All Assessment Areas                                0
                                                                               Total   non-MSA areas by state in All Assessment Areas              1
                                                                               Total   COUNTIES in All Assessment Areas                            1
                                                                               Total   TRACTS-BNAS in All Assessment Areas                        15




                                                                                             20XX COMMUNITY REINVESTMENT ACT (CRA)                     Rundate:    03/18/20XX
                                                                                              INSTITUTION REGISTER SUMMARY (IRS)                       Runtime:    20:01:17
                                                                            Agency: 2-FRB             Region: 5          Respondent ID: 0000891276                 Page:     2

                                                 FIRST NATIONAL COMPLIANCE                                   Contact: JENNY REGULATOR               Phone: XXX-XXX-XXXX
                                                 ________________________________________________________________________________________________________________________

                                                                    To ensure that your individual disclosure statement and the aggregate
                                                                    reports, represent accurate data, the statistics on the enclosed report(s)
                                                                    should be verified with your institution’s records.

                                                                    To satisfy these requirements, please complete ONE of the following two steps:

                                                                        1. If you agree with the statistics given on the Institution Register Summary,
                                                                           please complete the following section.

                                                                          I have verified the accuracy of the statistics with our records and found
                                                                          them to be in agreement.

                                                                          ____________________________________ ____________________________________
                                                                                       Signature                               Date

                                                                        2. If there are any discrepancies in the statistics, please fax the
                                                                           corrections to (202) 530-6234. An analyst will be in contact with
                                                                           you in order to resolve these discrepancies. However, if discrepancies are
                                                                           known, a corrected file should be sent to the address listed below:

                                                                    ATTN: CRA Processing
                                                                    Federal Reserve Board
                                                                    1709 New York Avenue, NW
                                                                    Fifth Floor
                                                                    Washington, D.C. 20006


                                                  Thank you for your prompt attention in this matter.




                                               Illustration 5: Institution Register Summary




A Guide to CRA Data Collection and Reporting                                                                                                                                     21
                                                                                                           Reporting the Data




Public Availability                            category, for the prior two calendar   institution may retain a copy of the
                                               years, the number and amount of        FFIEC compact disc in its public file.
of Data                                        loans:                                 When a consumer requests an
                                               · to low-, moderate-, middle-, and     institution’s public file, the institution
Disclosure Statements                            upper-income individuals;            must be able to print its CRA
Institutions that are required to make         · located in low-, moderate-,          disclosure statement readily from
annual public disclosure of their                middle-, and upper-income census     either the compact disc or a
small-business, small-farm, and                  tracts; and                          duplicate of the compact disc.
community development lending                  · located inside and outside the
                                                                                      If the request is at a branch other
activity will receive, by September              institution’s assessment area(s).
                                                                                      than the main office or the
15, a CD-ROM containing the
                                                                                      designated branch office in each
disclosure statement for that                  Aggregate Tables
                                                                                      state that holds the complete public
institution. The CRA Aggregate and             The CRA Aggregate and Disclosure       file, the institution should provide the
Disclosure CD-ROM contains the                 CD-ROM provides access to              CRA disclosure statement on paper,
disclosure statement for that                  aggregate tables covering the          or in another format acceptable to
institution and reports for all other          lending activity of all institutions   the requestor, within five calendar
institutions that have reported CRA            subject to CRA for each MSA and        days.
data for that year. Most large                 non-MSA portion of each state as
institutions are required to keep a            well as national aggregate tables      Aggregate
CRA disclosure statement for the               covering the lending activity of all   and Disclosure
two prior calendar years in their              institutions nationwide.               on the Internet
public files.
                                                                                      The CRA aggregate and disclosure
If a large institution (except one that        Aggregate and Disclosure               data can be found on the Internet at
was small in the prior calendar year)          CD-Rom Provided
                                                                                      www.ffiec.gov/webcraad/
has elected to have one or more                by the FFIEC
                                                                                      craaggr.htm.
                                               in the Public File
categories of its consumer loans
considered under the lending test, it          Rather than printing a hard copy of
must also make available for each              the CRA disclosure statement, an




A Guide to CRA Data Collection and Reporting                                                                                 22
Glossary                                       Affiliate. Any company that controls,        consumer loans on which the
                                               is controlled by, or is under common         bank elects to have its
                                               control with another company. The            performance assessed).
                                               term “control” has the meaning given      An assessment area(s) must consist
                                               to that term in 12 U.S.C. 1841(a)(2),     only of whole geographies, may not
                                               and a company is under common             reflect illegal discrimination, may not
                                               control with another company if both      arbitrarily exclude low- or moderate-
                                               companies are directly or indirectly      income geographies, taking into
                                               controlled by the same company.           account the institution’s size and
                                                                                         financial condition, and may not
                                               Area median income.                       extend substantially beyond a CMSA
                                               · The median family income for the        boundary or beyond a state
                                                 MSA, if a person or geography is        boundary unless the assessment
                                                 located in an MSA or                    area(s) is located in a multistate
                                               · the statewide nonmetropolitan           MSA. An institution may adjust the
                                                 median family income, if a person       boundaries of its assessment area(s)
                                                 or geography is located outside an      to include only the portion of a
                                                 MSA.                                    political subdivision that it
                                                                                         reasonably can be expected to
                                               Assessment area(s). One or more           serve.
                                               geographic area(s) delineated by an
                                               institution and (if delineated in
                                                                                         Automated teller machine (ATM).
                                               compliance with the regulation) used
                                                                                         An automated, unstaffed banking
                                               by the regulatory agency in
                                                                                         facility owned or operated by, or
                                               evaluating the institution’s record of
                                                                                         operated exclusively for, the bank at
                                               helping to meet the credit needs of
                                                                                         which deposits are received, cash
                                               its community. The assessment
                                                                                         dispersed, or money lent.
                                               area(s) for an institution other than a
                                               wholesale or limited-purpose
                                               institution must:                         Block numbering area (BNA). The
                                               · consist generally of one or more        Bureau of Census, in conjunction
                                                  MSAs (using the MSA boundaries         with state agencies, has established
                                                  that were in effect as of January 1    BNAs as statistical subdivisions of
                                                  of the calendar year in which the      counties in which census tracts have
                                                  delineation is made) or one or         not been established. BNAs are
                                                  more contiguous political              generally identified in census data
                                                  subdivisions, such as counties,        by numbers in the range 9501 to
                                                  cities, or towns; and                  9989.99. (For purposes of the CRA,
                                               · include the geographies in which        an institution may use BNA or
                                                  the bank has its main office, its      Census Tracts, as both are
                                                  branches, and its deposit-taking       “geographies”).
                                                  ATMs, as well as the surrounding
                                                  geographies in which the bank has      Branch. A staffed banking facility
                                                  originated or purchased a              authorized as a branch, whether
                                                  substantial portion of its loans       shared or unshared, including, for
                                                  (including home mortgage loans,        example, a minibranch in a grocery
                                                  small-business and small-farm          store or a branch operated in
                                                  loans, and any other loans the         conjunction with any other local
                                                  bank chooses, such as those            business or nonprofit organization.



A Guide to CRA Data Collection and Reporting                                                                                 23
                                                                                                                     Glossary




Census tract. A small, relatively                collected by the institution or an       the other categories of consumer
permanent statistical subdivision of             affiliate for consideration in the       loans
a county in a metropolitan area or a             institution’s assessment as a
selected nonmetropolitan county                  home mortgage, small-business,         Edit report. A report generated by
designed to be a relatively homo-                small-farm, or consumer loan,          the FFIEC and faxed to CRA
geneous unit with respect to popula-             unless it is a multifamily-dwelling    reporters based on their data
tion characteristics, economic                   loan; and                              submissions. The edit report lists
status, and living conditions. Census            — benefits the institution’s           and describes errors found in the
tracts usually contain between 2,500             assessment area(s) or a broader        submitted data.
and 8,000 inhabitants. Census tract              statewide or regional area that
                                                                                        Geography. Geography means a
numbers generally range from 0001                includes the institution’s
                                                                                        census tract or a block numbering
through 9499.99 and are unique                   assessment area(s).
                                                                                        area delineated by the United States
within a county. Institutions are
                                                                                        Bureau of the Census in the most
currently required to use census tract
                                               Community development service.           recent decennial census.
numbers from the 1990 census
                                               A service that has as its primary
series.                                                                                 Home mortgage loan. A “home
                                               purpose community development, is
                                               related to the provision of financial    improvement loan” or a “home
CMSA. A consolidated metropolitan                                                       purchase loan” as defined in the
                                               services, and has not been
statistical area as defined by the                                                      Board’s Regulation C (12 CFR part
                                               considered in the evaluation of the
director of the Office of Management                                                    203), which implements Home
                                               institution’s retail banking services.
and Budget.                                                                             Mortgage Disclosure Act.

Community development.                         Consumer loan. A loan to one or          Income level. Income levels
· affordable housing (including                more individuals for household,          include:
  multifamily rental housing) for low-         family, or other personal                · Low-income, which means an
  or moderate-income individuals;              expenditures. A consumer loan does         individual income that is less than
· community services targeted to               not include a home mortgage, small-        50 percent of the area median
  low- or moderate-income                      business, or small-farm loan.              income, or a median family income
  individuals;                                 Consumer loans include the follow-         that is less than 50 percent, in the
· activities that promote economic             ing categories of loans:                   case of a geography;
  development by financing                     · Motor vehicle loan, which is a         · Moderate-income, which means an
  businesses or farms that meet the              consumer loan extended for the           individual income that is at least 50
  size eligibility standards of the              purchase of and secured by a             percent and less than 80 percent
  Small Business Administration’s                motor vehicle;                           of the area median income, or a
  Development Company or Small                 · Credit card loan, which is a line of     median family income that is at
  Business Investment Company                    credit for household, family, or         least 50 and less than 80 percent,
  programs (13 CFR 121.301) or                   other personal expenditures that is      in the case of a geography;
  have gross annual revenues of $1               accessed by a borrower’s use of a      · Middle-income, which means an
  million or less; or                            credit card;                             individual income that is at least 80
· activities that revitalize or stabilize      · Home equity loan, which is a             percent and less than 120 percent
  low- or moderate-income                        consumer loan secured by a               of the area median income, or a
  geographies.                                   residence of the borrower;               median family income that is at
                                               · Other secured consumer loan,             least 80 and less than 120 percent,
Community development loan. A                    which is a secured consumer loan         in the case of a geography; and
loan that:                                       that is not included in one of the     · Upper-income, which means an
· has as its primary purpose                     other categories of consumer             individual income that is 120
  community development; and                     loans; and                               percent or more of the area
· except in the case of a wholesale            · Other unsecured consumer loan,           median income, or a median family
  or limited-purpose institution:                which is an unsecured consumer           income that is 120 percent or
  — has not been reported or                     loan that is not included in one of      more, in the case of a geography.


A Guide to CRA Data Collection and Reporting                                                                                24
                                                                                                                     Glossary




Institution Register Summary                   MSA. A metropolitan statistical area      Special-purpose institution. An
(IRS). A report generated by the               or a primary metropolitan statistical     institution that does not perform
FFIEC and faxed to CRA reporters               area (PMSA) as defined by the             commercial or retail banking
based on the data they submitted.              Director of the Office of                 services by granting credit to the
The first page of the IRS lists the            Management and Budget.                    public in the ordinary course of
number and total dollar amounts of                                                       business, other than as incident to
small-business, small-farm,                    Qualified investment. A lawful            its specialized operations. These
community development and                      investment, deposit, membership           institutions include banker’s banks
consortium/third party loans in the            share, or grant that has as its           as defined in 12 USC 24 (Seventh),
data submission. If the loan                   primary purpose community                 and institutions that engage in only
information is correct, CRA reporters          development.                              one or more of the following
sign the second page of the IRS and                                                      activities: providing cash-
fax it to (202) 530-6234.                      Small institution. An institution that,   management controlled-
                                               as of December 31 of either of the        disbursement services or serving as
Large institution. An institution              prior two calendar years, had total       correspondent institutions, trust
other than a small institution.                assets of less than $250 million and      companies, or clearing agents.
Limited-purpose institution. An                was independent or an affiliate of a
institution that offers only a narrow          holding company that, as of               Wholesale institution. An institution
product line (such as credit card or           December 31 of either of the prior        that is not in the business of
motor vehicle loans) to a regional or          two calendar years, had total             extending home mortgage, small-
broader market and for which a                 banking and thrift assets of less than    business, small-farm, or consumer
designation as a limited-purpose               $1 billion.                               loans to retail customers, and for
institution from its supervisory                                                         which a designation as a wholesale
                                               Small-business loan. A loan
agency is in effect.                                                                     institution from its supervisory
                                               included in “loans to small
                                                                                         agency is in effect.
                                               businesses” as defined in the
Loan location.
                                               instructions in the institution’s
· A consumer loan is located in the
                                               “Consolidated Report of Condition
  geography where the borrower
                                               and Income” (Call Report) or “Thrift
  resides.
                                               Financial Report” (TFR).
· A home mortgage loan is located
  in the geography where the                   Small-farm loan. A loan included in
  property to which the loan relates           “loans to small farms” as defined in
  is located.                                  the instructions in the institution’s
· A small-business or small-farm               “Consolidated Report of Condition
  loan is located in the geography             and Income” (Call Report) or “Thrift
  where the main business facility or          Financial Report” (TFR).
  farm is located or where the loan
  proceeds otherwise will be
  applied, as indicated by the
  borrower.




A Guide to CRA Data Collection and Reporting                                                                               25
Appendix A—                                      SUBPART A—GENERAL                                 institution, and to take this record
                                                                                                   into account in the agency’s
Regulation BB:                                   SECTION 228.11—                                   evaluation of an application for a
Community                                        Authority, Purposes,                              deposit facility by the institution. This
                                                 and Scope
Reinvestment                                                                                       part is intended to carry out the
                                                                                                   purposes of the CRA by—
                                                 (a) Authority. The Board of
As amended effective July 1, 1997*               Governors of the Federal Reserve                     (1) establishing the framework
                                                 System (the Board) issues this part†                 and criteria by which the Board
                                                 to implement the Community                           assesses a bank’s record of
                                                 Reinvestment Act (12 USC 2901 et                     helping to meet the credit needs
   Subpart A—General                                                                                  of its entire community, including
                                                 seq.) (CRA). The regulations
   Section                                       comprising this part are issued under                low- and moderate-income
   228.11 Authority, purposes, and                                                                    neighborhoods, consistent with
                                                 the authority of the CRA and under
           scope
                                                 the provisions of the United States                  the safe and sound operation of
   228.12 Definitions
                                                 Code authorizing the Board—                          the bank; and
   Subpart B—Standards for                                                                            (2) providing that the Board takes
                                                     (1) to conduct examinations of
   Assessing Performance
                                                     state-chartered banks that are                   that record into account in
   228.21 Performance tests,                                                                          considering certain applications.
          standards, and ratings, in
                                                     members of the Federal Reserve
          general                                    System (12 USC 325);
   228.22 Lending test                               (2) to conduct examinations of                (c) Scope.
   228.23 Investment test                            bank holding companies and their                 (1) General. This part applies to
   228.24 Service test                               subsidiaries (12 USC 1844); and                  all banks except as provided in
   228.25 Community development                                                                       paragraph (c)(3) of this section.
                                                     (3) to consider applications for—
          test for wholesale or
                                                        (i) domestic branches by state                (2) Foreign bank acquisitions.
          limited-purpose banks
   228.26 Small-bank performance                        member banks (12 USC 321);                    This part also applies to an
          standards                                     (ii) mergers in which the                     uninsured state branch (other than
   228.27 Strategic plan                                resulting bank would be a state               a limited branch) of a foreign bank
   228.28 Assigned ratings                              member bank (12 USC                           that results from an acquisition
   228.29 Effect of CRA                                                                               described in section 5(a)(8) of the
          performance on
                                                        1828(c));
                                                        (iii) formations of, acquisitions             International Banking Act of 1978
          applications
                                                        of banks by, and mergers of,                  (12 USC 3103(a)(8)). The terms
   Subpart C—Records, Reporting,                                                                      “state branch” and “foreign bank”
                                                        bank holding companies (12
   and Disclosure Requirements
                                                        USC 1842); and                                have the same meanings as in
   228.41 Assessment-area                                                                             section 1(b) of the International
          delineation                                   (iv) the acquisition of savings
   228.42 Data collection, reporting,                   associations by bank holding                  Banking Act of 1978 (12 USC
          and disclosure                                companies (12 USC 1843).                      3101 et seq.); the term “uninsured
   228.43 Content and availability of                                                                 state branch” means a state
          public file                            (b) Purposes. In enacting the CRA,                   branch the deposits of which are
   228.44 Public notice by banks                 the Congress required each                           not insured by the Federal
   228.45 Publication of planned                 appropriate federal financial                        Deposit Insurance Corporation;
          examination schedule                   supervisory agency to assess an                      the term “limited branch” means a
   Appendix A—Ratings                            institution’s record of helping to meet              state branch that accepts only
   Appendix B—CRA Notice                         the credit needs of the local                        deposits that are permissible for a
                                                 communities in which the institution                 corporation organized under
                                                 is chartered, consistent with the safe               section 25A of the Federal
   * Regulation BB is the Board’s regulation
implementing the CRA. The OCC, FDIC, and         and sound operation of the                           Reserve Act (12 USC 611 et
OTS have adopted substantially similar                                                                seq.).
regulations, which appear at 12 CFR parts
25, 345, and 563e. The four regulations differ     †
                                                                                                      (3) Certain special-purpose
                                                     The words “this part,” as used herein, mean
primarily in sections 11 and 29 and in           Regulation BB (Code of Federal Regulations,          banks. This part does not apply to
appendix B.                                      title 12, chapter II, part 228).                     special-purpose banks that do not


A Guide to CRA Data Collection and Reporting                                                                                             26
                                                                          Appendix A—Regulation BB: Community Reinvestment




   perform commercial or retail                (e) Bank means a state member                (2) except in the case of a
   banking services by granting                bank as that term is defined in              wholesale or limited-purpose
   credit to the public in the ordinary        section 3(d)(2) of the Federal               bank—
   course of business, other than as           Deposit Insurance Act (12 USC                   (i) has not been reported or
   incident to their specialized               1813(d)(2)), except as provided in              collected by the bank or an
   operations. These banks include             section 228.11(c)(3), and includes an           affiliate for consideration in the
   banker’s banks, as defined in 12            uninsured state branch (other than a            bank’s assessment as a home
   USC 24 (Seventh), and banks that            limited branch) of a foreign bank               mortgage, small business,
   engage only in one or more of the           described in section 228.11(c)(2).              small farm, or consumer loan,
   following activities: providing                                                             unless it is a multifamily
                                               (f) Branch means a staffed banking
   cash-management controlled-                                                                 dwelling loan (as described in
                                               facility approved as a branch,
   disbursement services or serving                                                            appendix A to part 203 of this
                                               whether shared or unshared,
   as correspondent banks, trust                                                               chapter); and
                                               including, for example, a minibranch
   companies, or clearing agents.                                                              (ii) benefits the bank’s
                                               in a grocery store or a branch
                                                                                               assessment area(s) or a
                                               operated in conjunction with any
                                                                                               broader statewide or regional
                                               other local business or nonprofit
SECTION 228.12—                                                                                area that includes the bank’s
                                               organization.
Definitions                                                                                    assessment area(s).
                                               (g) CMSA means a consolidated
For purposes of this part, the                                                           (j) Community development service
                                               metropolitan statistical area as
following definitions apply:                                                             means a service that—
                                               defined by the director of the Office
(a) Affiliate means any company                of Management and Budget.                     (1) has as its primary purpose
that controls, is controlled by, or is                                                       community development;
under common control with another              (h) Community development                     (2) is related to the provision of
company. The term “control” has the            means—                                        financial services; and
meaning given to that term in 12                  (1) affordable housing (including          (3) has not been considered in
USC 1841(a)(2), and a company is                  multifamily rental housing) for low-       the evaluation of the bank’s retail
under common control with another                 or moderate-income individuals;            banking services under section
company if both companies are                     (2) community services targeted            228.24(d).
directly or indirectly controlled by the          to low- or moderate-income
                                                  individuals;                           (k) Consumer loan means a loan to
same company.
                                                  (3) activities that promote            one or more individuals for house-
(b) Area median income means—                     economic development by                hold, family, or other personal
   (1) the median family income for               financing businesses or farms that     expenditures. A consumer loan does
   the MSA, if a person or geography              meet the size eligibility standards    not include a home mortgage, small
   is located in an MSA; or                       of the Small Business                  business, or small farm loan.
   (2) the statewide nonmetropolitan              Administration’s Development           Consumer loans include the
   median family income, if a person              Company or Small Business              following categories of loans:
   or geography is located outside                Investment Company programs                (1) Motor vehicle loan, which is a
   an MSA.                                        (13 CFR 121.301) or have gross             consumer loan extended for the
                                                  annual revenues of $1 million or           purchase of and secured by a
(c) Assessment area means a
                                                  less; or                                   motor vehicle;
geographic area delineated in
                                                  (4) activities that revitalize or          (2) Credit card loan, which is a
accordance with section 228.41.
                                                  stabilize low- or moderate-income          line of credit for household, family,
(d) Automated teller machine (ATM)                geographies.                               or other personal expenditures
means an automated, unstaffed                                                                that is accessed by a borrower’s
banking facility owned or operated             (i) Community development loan                use of a “credit card,” as this term
by, or operated exclusively for, the           means a loan that—                            is defined in section 226.2 of this
bank at which deposits are received,               (1) has as its primary purpose            chapter;
cash dispersed, or money lent.                     community development; and                (3) Home-equity loan, which is a



A Guide to CRA Data Collection and Reporting                                                                                   27
                                                                          Appendix A—Regulation BB: Community Reinvestment




   consumer loan secured by a                    median income, or a median              assets of less than $250 million and
   residence of the borrower;                    family income that is 120 percent       was independent or an affiliate of a
   (4) Other secured consumer loan,              or more, in the case of a               holding company that, as of
   which is a secured consumer loan              geography.                              December 31 of either of the prior
   that is not included in one of the                                                    two calendar years, had total
                                               (o) Limited-purpose bank means a
   other categories of consumer                                                          banking and thrift assets of less than
                                               bank that offers only a narrow
   loans; and                                                                            $1 billion.
                                               product line (such as credit card or
   (5) Other unsecured consumer
                                               motor vehicle loans) to a regional or     (u) Small-business loan means a
   loan, which is an unsecured
                                               broader market and for which a            loan included in “loans to small
   consumer loan that is not included
                                               designation as a limited-purpose          businesses” as defined in the
   in one of the other categories of
                                               bank is in effect, in accordance with     instructions for preparation of the
   consumer loans.
                                               section 228.25(b).                        Consolidated Report of Condition
(l) Geography means a census tract                                                       and Income.
                                               (p) Loan location. A loan is located
or a block numbering area                                                                (v) Small-farm loan means a loan
                                               as follows:
delineated by the United States                                                          included in “loans to small farms” as
                                                  (1) a consumer loan is located in
Bureau of the Census in the most                                                         defined in the instructions for
                                                  the geography where the borrower
recent decennial census.                          resides;                               preparation of the Consolidated
                                                  (2) a home mortgage loan is            Report of Condition and Income.
(m) Home mortgage loan means a
“home-improvement loan” or a                      located in the geography where
                                                                                         (w) Wholesale bank means a bank
“home-purchase loan” as defined in                the property to which the loan
                                                                                         that is not in the business of
section 203.2 of this chapter.                    relates is located; and
                                                                                         extending home mortgage, small-
                                                  (3) a small-business or small-
                                                                                         business, small-farm, or consumer
(n) Income level includes:                        farm loan is located in the
                                                                                         loans to retail customers, and for
   (1) Low-income, which means an                 geography where the main
                                                                                         which a designation as a wholesale
   individual income that is less than            business facility or farm is located
                                                                                         bank is in effect, in accordance with
   50 percent of the area median                  or where the loan proceeds
                                                                                         section 228.25(b).
   income, or a median family                     otherwise will be applied, as
   income that is less than 50                    indicated by the borrower.
   percent, in the case of a                                                             SUBPART B—STANDARDS
                                               (q) Loan production office means a
   geography.                                                                            FOR ASSESSING
                                               staffed facility, other than a branch,
   (2) Moderate-income, which                                                            PERFORMANCE
                                               that is open to the public and that
   means an individual income that
                                               provides lending-related services,        SECTION 228.21—
   is at least 50 percent and less
                                               such as loan information and              Performance Tests,
   than 80 percent of the area
                                               applications.                             Standards, and Ratings,
   median income, or a median
   family income that is at least 50           (r) MSA means a metropolitan
                                                                                         in General
   and less than 80 percent, in the            statistical area or a primary             (a) Performance tests and
   case of a geography.                        metropolitan statistical area as          standards. The Board assesses the
   (3) Middle-income, which means              defined by the director of the Office     CRA performance of a bank in an
   an individual income that is at             of Management and Budget.                 examination as follows:
   least 80 percent and less than 120                                                       (1) Lending, investment, and
                                               (s) Qualified investment means a
   percent of the area median                                                               service tests. The Board applies
                                               lawful investment, deposit,
   income, or a median family                                                               the lending, investment, and
                                               membership share, or grant that has
   income that is at least 80 and less                                                      service tests, as provided in
                                               as its primary purpose community
   than 120 percent, in the case of a                                                       sections 228.22 through 228.24,
                                               development.
   geography.                                                                               in evaluating the performance of a
   (4) Upper-income, which means               (t) Small bank means a bank that,            bank, except as provided in
   an individual income that is 120            as of December 31 of either of the           paragraphs (a)(2), (a)(3), and
   percent or more of the area                 prior two calendar years, had total          (a)(4) of this section.


A Guide to CRA Data Collection and Reporting                                                                                   28
                                                                         Appendix A—Regulation BB: Community Reinvestment




   (2) Community development test                local, and tribal governments,         operations. To the contrary, the
   for wholesale or limited-purpose              economic-development agencies,         Board anticipates banks can meet
   banks. The Board applies the                  or other sources;                      the standards of this part with safe
   community development test for a              (3) the bank’s product offerings       and sound loans, investments, and
   wholesale or limited-purpose                  and business strategy as               services on which the banks expect
   bank, as provided in section                  determined from data provided by       to make a profit. Banks are permitted
   228.25, except as provided in                 the bank;                              and encouraged to develop and
   paragraph (a)(4) of this section.             (4) institutional capacity and         apply flexible underwriting standards
   (3) Small-bank performance                    constraints, including the size and    for loans that benefit low- or
   standards. The Board applies the              financial condition of the bank, the   moderate-income geographies or
   small-bank performance                        economic climate (national,            individuals, only if consistent with
   standards as provided in section              regional, and local), safety-and-      safe and sound operations.
   228.26 in evaluating the                      soundness limitations, and any
   performance of a small bank or a              other factors that significantly
   bank that was a small bank during             affect the bank’s ability to provide   SECTION 228.22—
   the prior calendar year, unless the           lending, investments, or services      Lending Test
   bank elects to be assessed as                 in its assessment area(s);
                                                                                        (a) Scope of test.
   provided in paragraphs (a)(1),                (5) the bank’s past performance
                                                                                           (1) The lending test evaluates a
   (a)(2), or (a)(4) of this section.            and the performance of similarly
                                                                                           bank’s record of helping to meet
   The bank may elect to be                      situated lenders;
                                                                                           the credit needs of its assessment
   assessed as provided in                       (6) the bank’s public file, as
                                                                                           area(s) through its lending
   paragraph (a)(1) of this section              described in section 228.43, and
                                                                                           activities by considering a bank’s
   only if it collects and reports the           any written comments about the
                                                                                           home mortgage, small-business,
   data required for other banks                 bank’s CRA performance
                                                                                           small-farm, and community
   under section 228.42.                         submitted to the bank or the
                                                                                           development lending. If consumer
   (4) Strategic plan. The Board                 Board; and
                                                                                           lending constitutes a substantial
   evaluates the performance of a                (7) any other information deemed
                                                                                           majority of a bank’s business, the
   bank under a strategic plan if the            relevent by the Board.
                                                                                           Board will evaluate the bank’s
   bank submits, and the Board
                                               (c) Assigned ratings. The Board             consumer lending in one or more
   approves, a strategic plan as
                                               assigns to a bank one of the                of the following categories: motor
   provided in section 228.27.
                                               following four ratings pursuant to          vehicle, credit card, home-equity,
(b) Performance context. The Board             section 228.28 and appendix A of            other secured, and other
applies the tests and standards in             this part: “outstanding”; “satis-           unsecured loans. In addition, at a
paragraph (a) of this section and              factory”; “needs to improve”; or            bank’s option, the Board will
also considers whether to approve a            “substantial noncompliance” as              evaluate one or more categories
proposed strategic plan in the                 provided in 12 USC 2906(b)(2). The          of consumer lending, if the bank
context of—                                    rating assigned by the Board reflects       has collected and maintained, as
   (1) demographic data on median              the bank’s record of helping to meet        required in section 228.42(c)(1),
   income levels, distribution of              the credit needs of its entire              the data for each category that the
   household income, nature of                 community, including low- and               bank elects to have the Board
   housing stock, housing costs, and           moderate-income neighborhoods,              evaluate.
   other relevant data pertaining to a         consistent with the safe and sound          (2) The Board considers
   bank’s assessment area(s);                  operation of the bank.                      originations and purchases of
   (2) any information about lending,                                                      loans. The Board will also
   investment, and service                     (d) Safe and sound operations. This         consider any other loan data the
   opportunities in the bank’s                 part and the CRA do not require a           bank may choose to provide,
   assessment area(s) maintained               bank to make loans or investments           including data on loans
   by the bank or obtained from                or to provide services that are             outstanding, commitments, and
   community organizations, state,             inconsistent with safe and sound            letters of credit.


A Guide to CRA Data Collection and Reporting                                                                               29
                                                                          Appendix A—Regulation BB: Community Reinvestment




   (3) A bank may ask the Board to               characteristics, including the               assessment area, the bank
   consider loans originated or                  number and amount of—                        shall elect to have the Board
   purchased by consortia in which                  (i) home mortgage loans to                consider, in accordance with
   the bank participates or by third                low-, moderate-, middle-, and             paragraph (c)(1) of this section,
   parties in which the bank has                    upper-income individuals;                 all the loans within that lending
   invested only if the loans meet the              (ii) small-business and small-            category in that particular
   definition of community                          farm loans to businesses and              assessment area made by all
   development loans and only in                    farms with gross annual                   of the bank’s affiliates.
   accordance with paragraph (d) of                 revenues of $1 million or less;        (3) The Board does not consider
   this section. The Board will not                 (iii) small-business and small-        affiliate lending in assessing a
   consider these loans under any                   farm loans by loan amount at           bank’s performance under
   criterion of the lending test except             origination; and                       paragraph (b)(2)(i) of this section.
   the community development                        (iv) consumer loans, if
                                                                                         (d) Lending by a consortium or a
   lending criterion.                               applicable, to low-, moderate-,
                                                                                         third party. Community development
                                                    middle-, and upper-income
(b) Performance criteria. The Board                                                      loans originated or purchased by a
                                                    individuals;
evaluates a bank’s lending                                                               consortium in which the bank
                                                 (4) Community development
performance pursuant to the                                                              participates or by a third party in
                                                 lending. The bank’s community
following criteria:                                                                      which the bank has invested—
                                                 development lending, including
    (1) Lending activity. The number                                                        (1) will be considered, at the
                                                 the number and amount of
    and amount of the bank’s home                                                           bank’s option, if the bank reports
                                                 community development loans,
    mortgage, small-business, small-                                                        the data pertaining to these loans
                                                 and their complexity and
    farm, and consumer loans, if                                                            under section 228.42(b)(2); and
                                                 innovativeness; and
    applicable, in the bank’s                                                               (2) may be allocated among
                                                 (5) Innovative or flexible lending
    assessment area(s);                                                                     participants or investors, as they
                                                 practices. The bank’s use of
    (2) Geographic distribution. The                                                        choose, for purposes of the
                                                 innovative or flexible lending
    geographic distribution of the                                                          lending test, except that no
                                                 practices in a safe and sound
    bank’s home mortgage, small-                                                            participant or investor—
                                                 manner to address the credit
    business, small-farm, and                                                                  (i) may claim a loan origination
                                                 needs of low- or moderate-income
    consumer loans, if applicable,                                                             or loan purchase if another
                                                 individuals or geographies.
    based on the loan location,                                                                participant or investor claims
    including—                                 (c) Affiliate lending.                          the same loan origination or
       (i) the proportion of the bank’s           (1) At a bank’s option, the Board            purchase; or
       lending in the bank’s                      will consider loans by an affiliate          (ii) may claim loans accounting
       assessment area(s);                        of the bank, if the bank provides            for more than its percentage
       (ii) the dispersion of lending in          data on the affiliate’s loans                share (based on the level of its
       the bank’s assessment area(s);             pursuant to section 228.42.                  participation or investment) of
       and                                        (2) The Board considers affiliate            the total loans originated by the
       (iii) the number and amount of             lending subject to the following             consortium or third party.
       loans in low-, moderate-,                  constraints:
                                                                                         (e) Lending-performance rating. The
       middle-, and upper-income                     (i) no affiliate may claim a loan
                                                                                         Board rates a bank’s lending
       geographies in the bank’s                     origination or loan purchase if
                                                                                         performance as provided in appendix
       assessment area(s);                           another institution claims the
                                                                                         A of this part.
    (3) Borrower characteristics. The                same loan origination or
    distribution, particularly in the                purchase; and
    bank’s assessment area(s), of the                (ii) if a bank elects to have the
                                                                                         SECTION 228.23—
                                                                                         Investment Test
    bank’s home mortgage, small-                     Board consider loans within a
    business, small-farm, and                        particular lending category         (a) Scope of test. The investment
    consumer loans, if applicable,                   made by one or more of the          test evaluates a bank’s record of
    based on borrower                                bank’s affiliates in a particular   helping to meet the credit needs of



A Guide to CRA Data Collection and Reporting                                                                                   30
                                                                          Appendix A—Regulation BB: Community Reinvestment




its assessment area(s) through                 performance as provided in appendix         (3) the availability and
qualified investments that benefit its         A of this part.                             effectiveness of alternate systems
assessment area(s) or a broader                                                            for delivering retail banking
statewide or regional area that                                                            services (e.g., ATMs, ATMs not
includes the bank’s assessment                 SECTION 228.24—                             owned or operated by or
area(s).                                       Service Test                                exclusively for the bank, banking
                                                                                           by telephone or computer, loan
(b) Exclusion. Activities considered           (a) Scope of test. The service test
                                                                                           production offices, and bank-at-
under the lending or service tests             evaluates a bank’s record of helping
                                                                                           work or bank-by-mail programs) in
may not be considered under the                to meet the credit needs of its
                                                                                           low- and moderate-income
investment test.                               assessment area(s) by analyzing
                                                                                           geographies and to low- and
                                               both the availability and effective-
(c) Affiliate investment. At a bank’s                                                      moderate-income individuals; and
                                               ness of a bank’s systems for
option, the Board will consider, in its                                                    (4) the range of services provided
                                               delivering retail banking services and
assessment of a bank’s investment                                                          in low-, moderate-, middle-, and
                                               the extent and innovativeness of its
performance, a qualified investment                                                        upper-income geographies and
                                               community development services.
made by an affiliate of the bank, if                                                       the degree to which the services
the qualified investment is not                (b) Area(s) benefitted. Community           are tailored to meet the needs of
claimed by any other institution.              development services must benefit a         those geographies.
                                               bank’s assessment area(s) or a
(d) Disposition of branch premises.            broader statewide or regional area        (e) Performance criteria—
Donating, selling on favorable terms,          that includes the bank’s assessment       community development services.
or making available on a rent-free             area(s).                                  The Board evaluates community
basis a branch of the bank that is                                                       development services pursuant to
located in a predominantly minority            (c) Affiliate service. At a bank’s        the following criteria:
neighborhood to a minority                     option, the Board will consider, in its      (1) the extent to which the bank
depository institution or women’s              assessment of a bank’s service               provides community development
depository institution (as these terms         performance, a community                     services; and
are defined in 12 USC 2907(b)) will            development service provided by an           (2) the innovativeness and
be considered as a qualified                   affiliate of the bank, if the community      responsiveness of community
investment.                                    development service is not claimed           development services.
                                               by any other institution.
(e) Performance criteria. The Board                                                      (f) Service-performance rating. The
                                               (d) Performance criteria—retail
evaluates the investment                                                                 Board rates a bank’s service
performance of a bank pursuant to              banking services. The Board
                                                                                         performance as provided in appendix
                                               evaluates the availability and
the following criteria:                                                                  A of this part.
                                               effectiveness of a bank’s systems for
   (1) the dollar amount of qualified
                                               delivering retail banking services,
   investments;
                                               pursuant to the following criteria:
   (2) the innovativeness or                                                             SECTION 228.25—
   complexity of qualified                        (1) the current distribution of the
                                                                                         Community Development
                                                  bank’s branches among low-,
   investments;                                                                          Test for Wholesale or
                                                  moderate-, middle-, and upper-
   (3) the responsiveness of                                                             Limited-Purpose Bank
                                                  income geographies;
   qualified investments to credit and
                                                  (2) in the context of its current      (a) Scope of test. The Board
   community development needs;
                                                  distribution of the bank’s             assesses a wholesale or limited-
   and
                                                  branches, the bank’s record of         purpose bank’s record of helping to
   (4) the degree to which the
                                                  opening and closing branches,          meet the credit needs of its
   qualified investments are not
                                                  particularly branches located in       assessment area(s) under the
   routinely provided by private
                                                  low- or moderate-income                community development test through
   investors.
                                                  geographies or primarily serving       its community development lending,
(f) Investment-performance rating.                low- or moderate-income                qualified investments, or community
The Board rates a bank’s investment               individuals;                           development services.


A Guide to CRA Data Collection and Reporting                                                                              31
                                                                         Appendix A—Regulation BB: Community Reinvestment




(b) Designation as a wholesale or                (2) community development                community development loans, or
limited-purpose bank. In order to                lending by affiliates, consortia and     qualified investments;
receive a designation as a wholesale             third parties, subject to the            (2) the percentage of loans and,
or limited-purpose bank, a bank shall            requirements and limitations in          as appropriate, other lending-
file a request, in writing, with the             section 228.22(c) and (d).               related activities located in the
Board, at least three months prior to                                                     bank’s assessment area(s);
                                               (e) Benefit to assessment area(s).
the proposed effective date of the                                                        (3) the bank’s record of lending to
                                                  (1) Benefit inside assessment
designation. If the Board approves                                                        and, as appropriate, engaging in
                                                  area(s). The Board considers all
the designation, it remains in effect                                                     other lending-related activities for
                                                  qualified investments, community
until the bank requests revocation of                                                     borrowers of different income
                                                  development loans, and
the designation or until one year                                                         levels and businesses and farms
                                                  community development services
after the Board notifies the bank that                                                    of different sizes;
                                                  that benefit areas within the
the Board has revoked the                                                                 (4) the geographic distribution of
                                                  bank’s assessment area(s) or a
designation on its own initiative.                                                        the bank’s loans; and
                                                  broader statewide or regional area
                                                                                          (5) the bank’s record of taking
(c) Performance criteria. The Board               that includes the bank’s
                                                                                          action, if warranted, in response
evaluates the community                           assessment area(s).
                                                                                          to written complaints about its
development performance of a                      (2) Benefit outside assessment
                                                                                          performance in helping to meet
wholesale or limited-purpose bank                 area(s). The Board considers the
                                                                                          credit needs in its assessment
pursuant to the following criteria:               qualified investments, community
                                                                                          area(s).
   (1) the number and amount of                   development loans, and
   community development loans                    community development services        (b) Small-bank performance rating.
   (including originations and                    that benefit areas outside the        The Board rates the performance of
   purchases of loans and other                   bank’s assessment area(s), if the     a bank evaluated under this section
   community development loan data                bank has adequately addressed         as provided in appendix A of this
   provided by the bank, such as                  the needs of its assessment           part.
   data on loans outstanding,                     area(s).
   commitments, and letters of                                                          SECTION 228.27—
                                               (f) Community development
   credit), qualified investments, or                                                   Strategic Plan
                                               performance rating. The Board rates
   community development services;
                                               a bank’s community development           (a) Alternative election. The Board
   (2) the use of innovative or
                                               performance as provided in appendix      will assess a bank’s record of
   complex qualified investments,
                                               A of this part.                          helping to meet the credit needs of
   community development loans, or
                                                                                        its assessment area(s) under a
   community development services
                                                                                        strategic plan if—
   and the extent to which the                 SECTION 228.26—
                                                                                            (1) the bank has submitted the
   investments are not routinely               Small-Bank Performance
                                                                                            plan to the Board as provided for
   provided by private investors; and          Standards
                                                                                            in this section;
   (3) the bank’s responsiveness to
                                               (a) Performance criteria. The Board          (2) the Board has approved the
   credit and community
                                               evaluates the record of a small bank,        plan;
   development needs.
                                               or a bank that was a small bank              (3) the plan is in effect; and
(d) Indirect activities. At a bank’s           during the prior calendar year, of           (4) the bank has been operating
option, the Board will consider in its         helping to meet the credit needs of          under an approved plan for at
community development                          its assessment area(s) pursuant to           least one year.
performance assessment:                        the following criteria:
                                                                                        (b) Data reporting. The Board’s
   (1) qualified investments or                    (1) the bank’s loan-to-deposit
                                                                                        approval of a plan does not affect the
   community development services                  ratio, adjusted for seasonal
                                                                                        bank’s obligation, if any, to report
   provided by an affiliate of the                 variation and, as appropriate,
                                                                                        data as required by section 228.42.
   bank, if the investments or                     other lending-related activities,
   services are not claimed by any                 such as loan originations for sale   (c) Plans in general.
   other institution; and                          to the secondary markets,               (1) Term. A plan may have a term


A Guide to CRA Data Collection and Reporting                                                                                32
                                                                         Appendix A—Regulation BB: Community Reinvestment




   of no more than five years, and             shall submit its plan to the Board at      public and the Board to judge the
   any multiyear plan must include             least three months prior to the            merits of the plan.
   annual interim measurable goals             proposed effective date of the plan.       (3) Satisfactory and outstanding
   under which the Board will                  The bank shall also submit with its        goals. A bank shall specify in its
   evaluate the bank’s performance.            plan a description of its informal         plan measurable goals that
   (2) Multiple assessment areas. A            efforts to seek suggestions from           constitute “satisfactory”
   bank with more than one                     members of the public, any written         performance. A plan may specify
   assessment area may prepare a               public comment received, and, if the       measurable goals that constitute
   single plan for all of its                  plan was revised in light of the           “outstanding” performance. If a
   assessment areas or one or more             comment received, the initial plan as      bank submits, and the Board
   plans for one or more of its                released for public comment.               approves, both “satisfactory” and
   assessment areas.                                                                      “outstanding” performance goals,
                                               (f) Plan content.
   (3) Treatment of affiliates.                                                           the Board will consider the bank
                                                  (1) Measurable goals.
   Affiliated institutions may prepare                                                    eligible for an “outstanding”
                                                     (i) A bank shall specify in its
   a joint plan if the plan provides                                                      performance rating.
                                                     plan measurable goals for
   measurable goals for each                                                              (4) Election if satisfactory goals
                                                     helping to meet the credit
   institution. Activities may be                                                         not substantially met. A bank may
                                                     needs of each assessment
   allocated among institutions at the                                                    elect in its plan that, if the bank
                                                     area covered by the plan,
   institutions’ option, provided that                                                    fails to meet substantially its plan
                                                     particularly the needs of low-
   the same activities are not                                                            goals for a satisfactory rating, the
                                                     and moderate-income
   considered for more than one                                                           Board will evaluate the bank’s
                                                     geographies and low- and
   institution.                                                                           performance under the lending,
                                                     moderate-income individuals,
(d) Public participation in plan                                                          investment, and service tests, the
                                                     through lending, investment,
development. Before submitting a                                                          community development test, or
                                                     and services, as appropriate.
plan to the Board for approval, a                                                         the small-bank performance
                                                     (ii) A bank shall address in its
bank shall—                                                                               standards, as appropriate.
                                                     plan all three performance
   (1) informally seek suggestions                   categories and, unless the         (g) Plan approval.
   from members of the public in its                 bank has been designated as a         (1) Timing. The Board will act
   assessment area(s) covered by                     wholesale or limited-purpose          upon a plan within 60 calendar
   the plan while developing the                     bank, shall emphasize lending         days after the Board receives the
   plan;                                             and lending-related activities.       complete plan and other material
   (2) once the bank has developed                   Nevertheless, a different             required under paragraph (d) of
   a plan, formally solicit public                   emphasis, including a focus on        this section. If the Board fails to
   comment on the plan for at least                  one or more performance               act within this time period, the
   30 days by publishing notice in at                categories, may be appropriate        plan shall be deemed approved
   least one newspaper of general                    if responsive to the                  unless the Board extends the
   circulation in each assessment                    characteristics and credit            review period for good cause.
   area covered by the plan; and                     needs of its assessment               (2) Public participation. In
   (3) during the period of formal                   area(s), considering public           evaluating the plan’s goals, the
   public comment, make copies of                    comment and the bank’s                Board considers the public’s
   the plan available for review by                  capacity and constraints,             involvement in formulating the
   the public at no cost at all offices              product offerings, and business       plan, written public comment on
   of the bank in any assessment                     strategy.                             the plan, and any response by the
   area covered by the plan and                   (2) Confidential information. A          bank to public comment on the
   provide copies of the plan upon                bank may submit additional               plan.
   request for a reasonable fee to                information to the Board on a            (3) Criteria for evaluating plan.
   cover copying and mailing, if                  confidential basis, but the goals        The Board evaluates a plan’s
   applicable.                                    stated in the plan must be               measurable goals using the
(e) Submission of plan. The bank                  sufficiently specific to enable the      following criteria, as appropriate:



A Guide to CRA Data Collection and Reporting                                                                                33
                                                                           Appendix A—Regulation BB: Community Reinvestment




      (i) the extent and breadth of            “satisfactory,” “needs to improve,” or     SECTION 228.29—Effect
      lending or lending-related               “substantial noncompliance” based          of CRA Performance
      activities, including, as                on the bank’s performance under the        on Applications
      appropriate, the distribution of         lending, investment, and service           (a) CRA performance. Among other
      loans among different                    tests, the community development           factors, the Board takes into account
      geographies, businesses and              test, the small-bank performance           the record of performance under the
      farms of different sizes, and            standards, or an approved strategic        CRA of—
      individuals of different income          plan, as applicable.                          (1) each applicant bank for the—
      levels, the extent of community                                                           (i) establishment of a domestic
                                               (b) Lending, investment, and service
      development lending, and the                                                              branch by a state member
                                               tests. The Board assigns a rating for
      use of innovative or flexible                                                             bank; and
                                               a bank assessed under the lending,
      lending practices to address                                                              (ii) merger, consolidation,
                                               investment, and service tests in
      credit needs;                                                                             acquisition of assets, or
                                               accordance with the following
      (ii) the amount and                                                                       assumption of liabilities
                                               principles:
      innovativeness, complexity,                                                               requiring approval under the
                                                  (1) a bank that receives an
      and responsiveness of the                                                                 Bank Merger Act (12 USC
                                                  “outstanding” rating on the lending
      bank’s qualified investments;                                                             1828(c)) if the acquiring,
                                                  test receives an assigned rating of
      and                                                                                       assuming, or resulting bank is
                                                  at least “satisfactory”;
      (iii) the availability and                                                                to be a state member bank;
                                                  (2) a bank that receives an
      effectiveness of the bank’s                                                               and
                                                  “outstanding” rating on both the
      systems for delivering retail                                                          (2) each insured depository
                                                  service test and the investment
      banking services and the extent                                                        institution (as defined in 12 USC
                                                  test and a rating of at least “high
      and innovativeness of the                                                              1813) controlled by an applicant
                                                  satisfactory” on the lending test
      bank’s community development                                                           and subsidiary bank or savings
                                                  receives an assigned rating of
      services.                                                                              association proposed to be
                                                  “outstanding”; and
(h) Plan amendment. During the                    (3) no bank may receive an                 controlled by an applicant—
term of a plan, a bank may request                assigned rating of “satisfactory” or          (i) to become a bank holding
the Board to approve an amendment                 higher unless it receives a rating            company in a transaction that
to the plan on grounds that there has             of at least “low satisfactory” on the         requires approval under section
been a material change in                         lending test.                                 3 of the Bank Holding
circumstances. The bank shall                                                                   Company Act (12 USC 1842);
develop an amendment to a                      (c) Effect of evidence of                        (ii) to acquire ownership or
previously approved plan in                    discriminatory or other illegal credit           control of shares or all or
accordance with the public                     practices. Evidence of discriminatory            substantially all of the assets of
participation requirements of                  or other illegal credit practices                a bank, to cause a bank to
paragraph (d) of this section.                 adversely affects the Board’s                    become a subsidiary of a bank
                                               evaluation of a bank’s performance.              holding company, or to merge
(i) Plan assessment. The Board                 In determining the effect on the                 or consolidate a bank holding
approves the goals and assesses                bank’s assigned rating, the Board                company with any other bank
performance under a plan as                    considers the nature and extent of               holding company in a trans-
provided for in appendix A of this             the evidence, the policies and                   action that requires approval
part.                                          procedures that the bank has in                  under section 3 of the Bank
                                               place to prevent discriminatory or               Holding Company Act (12 USC
                                               other illegal credit practices, any              1842); and
SECTION 228.28—                                corrective action that the bank has              (iii) to own, control, or operate
Assigned Ratings
                                               taken or has committed to take,                  a savings association in a
(a) Ratings in general. Subject to             particularly voluntary corrective                transaction that requires
paragraphs (b) and (c) of this                 action resulting from self-                      approval under section 4 of the
section, the Board assigns to a bank           assessment, and other relevant                   Bank Holding Company Act (12
a rating of “outstanding,”                     information.                                     USC 1843).


A Guide to CRA Data Collection and Reporting                                                                                   34
                                                                         Appendix A—Regulation BB: Community Reinvestment




(b) Interested parties. In considering         boundaries that were in effect as of       (1) must consist only of whole
CRA performance in an application              January 1 of the calendar year in          geographies;
described in paragraph (a) of this             which the delineation is made) or          (2) may not reflect illegal
section, the Board takes into account          one or more contiguous political           discrimination;
any views expressed by interested              subdivisions, such as counties,            (3) may not arbitrarily exclude
parties that are submitted in                  cities, or towns, in which the bank        low- or moderate-income
accordance with the Board’s Rules              has its main office, branches, and         geographies, taking into account
of Procedure set forth in part 262 of          deposit-taking ATMs.                       the bank’s size and financial
this chapter.                                                                             condition; and
                                               (c) Geographic area(s) for other
                                                                                          (4) may not extend substantially
(c) Denial or conditional approval of          banks. The assessment area(s) for a
                                                                                          beyond a CMSA boundary or
application. A bank’s record of                bank other than a wholesale or
                                                                                          beyond a state boundary unless
performance may be the basis for               limited-purpose bank must—
                                                                                          the assessment area is located in
denying or conditioning approval of               (1) consist generally of one or
                                                                                          a multistate MSA. If a bank serves
an application listed in paragraph (a)            more MSAs (using the MSA
                                                                                          a geographic area that extends
of this section.                                  boundaries that were in effect as
                                                                                          substantially beyond a state
                                                  of January 1 of the calendar year
(d) Definitions. For purposes of                                                          boundary, the bank shall delineate
                                                  in which the delineation is made)
paragraph (a)(2) of this section,                                                         separate assessment areas for
                                                  or one or more contiguous
“bank,” “bank holding company,”                                                           the areas in each state. If a bank
                                                  political subdivisions, such as
“subsidiary,” and “savings                                                                serves a geographic area that
                                                  counties, cities, or towns; and
association” have the meanings                                                            extends substantially beyond a
                                                  (2) include the geographies in
given to those terms in section 2 of                                                      CMSA boundary, the bank shall
                                                  which the bank has its main office,
the Bank Holding Company Act (12                                                          delineate separate assessment
                                                  its branches, and its deposit-
USC 1841).                                                                                areas for the areas inside and
                                                  taking ATMs, as well as the
                                                                                          outside the CMSA.
                                                  surrounding geographies in which
SUBPART C—RECORDS,
REPORTING, AND                                    the bank has originated or            (f) Banks serving military personnel.
DISCLOSURE                                        purchased a substantial portion of    Notwithstanding the requirements of
REQUIREMENTS                                      its loans (including home             this section, a bank whose business
                                                  mortgage loans, small-business        predominantly consists of serving
SECTION 228.41—                                   and small-farm loans, and any         the needs of military personnel or
Assessment-Area                                   other loans the bank chooses,         their dependents who are not located
Delineation                                       such as those consumer loans on       within a defined geographic area
                                                  which the bank elects to have its     may delineate its entire deposit-
(a) In general. A bank shall
                                                  performance assessed).                customer base as its assessment
delineate one or more assessment
                                                                                        area.
areas within which the Board eval-             (d) Adjustments to geographic
uates the bank’s record of helping to          area(s). A bank may adjust the           (g) Use of assessment area(s). The
meet the credit needs of its com-              boundaries of its assessment area(s)     Board uses the assessment area(s)
munity. The Board does not evaluate            to include only the portion of a         delineated by a bank in its evaluation
the bank’s delineation of its assess-          political subdivision that it            of the bank’s CRA performance
ment area(s) as a separate perform-            reasonably can be expected to            unless the Board determines that the
ance criterion, but the Board reviews          serve. An adjustment is particularly     assessment area(s) do not comply
the delineation for compliance with            appropriate in the case of an            with the requirements of this section.
the requirements of this section.              assessment area that otherwise
                                               would be extremely large, of unusual     SECTION 228.42—Data
(b) Geographic area(s) for
                                               configuration, or divided by             Collection, Reporting, and
wholesale or limited-purpose banks.
                                               significant geographic barriers.         Disclosure
The assessment area(s) for a
wholesale or limited-purpose bank              (e) Limitations on the delineation of    (a) Loan information required to be
must consist generally of one or               an assessment area. Each bank’s          collected and maintained. A bank,
more MSAs (using the MSA                       assessment area(s)—                      except a small bank, shall collect,

A Guide to CRA Data Collection and Reporting                                                                               35
                                                                         Appendix A—Regulation BB: Community Reinvestment




and maintain in machine-readable                 aggregate amount of community            information concerning its lending
form (as prescribed by the Board)                development loans originated or          performance, including additional
until the completion of its next CRA             purchased; and                           loan-distribution data.
examination, the following data for              (3) Home mortgage loans. If the
                                                                                        (d) Data on affiliate lending. A bank
each small-business or small-farm                bank is subject to reporting under
                                                                                        that elects to have the Board
loan originated or purchased by the              part 203 of this chapter, the
                                                                                        consider loans by an affiliate, for
bank:                                            location of each home mortgage
                                                                                        purposes of the lending or
   (1) a unique number or                        loan application, origination, or
                                                                                        community development test or an
   alphanumeric symbol that can be               purchase outside the MSAs in
                                                                                        approved strategic plan, shall collect,
   used to identify the relevant loan            which the bank has a home or
                                                                                        maintain, and report for those loans
   file;                                         branch office (or outside any
                                                                                        the data that the bank would have
   (2) the loan amount at origination;           MSA) in accordance with the
                                                                                        collected, maintained, and reported
   (3) the loan location; and                    requirements of part 203 of this
                                                                                        pursuant to paragraphs (a), (b), and
   (4) an indicator whether the loan             chapter.
                                                                                        (c) of this section had the loans been
   was to a business or farm with
                                               (c) Optional data collection and         originated or purchased by the bank.
   gross annual revenues of $1
                                               maintenance.                             For home mortgage loans, the bank
   million or less.
                                                  (1) Consumer loans. A bank may        shall also be prepared to identify the
(b) Loan information required to be               collect and maintain in machine-      home mortgage loans reported under
reported. A bank, except a small                  readable form (as prescribed by       part 203 of this chapter by the
bank or a bank that was a small                   the Board) data for consumer          affiliate.
bank during the prior calendar year,              loans originated or purchased by
shall report annually by March 1 to               the bank for consideration under      (e) Data on lending by a consortium
the Board in machine-readable form                the lending test. A bank may          or a third party. A bank that elects to
(as prescribed by the Board) the                  maintain data for one or more of      have the Board consider community
following data for the prior calendar             the following categories of           development loans by a consortium
year:                                             consumer loans: motor vehicle,        or third party, for purposes of the
    (1) Small-business and small-                 credit card, home-equity, other       lending or community development
    farm loan data. For each                      secured, and other unsecured. If      tests or an approved strategic plan,
    geography in which the bank                   the bank maintains data for loans     shall report for those loans the data
    originated or purchased a small-              in a certain category, it shall       that the bank would have reported
    business or small-farm loan, the              maintain data for all loans           under paragraph (b)(2) of this
    aggregate number and amount of                originated or purchased within        section had the loans been
    loans—                                        that category. The bank shall         originated or purchased by the bank.
       (i) with an amount at                      maintain data separately for each
                                                                                        (f) Small banks electing evaluation
       origination of $100,000 or less;           category, including for each
                                                                                        under the lending, investment, and
       (ii) with amount at origination            loan—
                                                                                        service tests. A bank that qualifies
       of more than $100,000 but less                (i) a unique number or             for evaluation under the small-bank
       than or equal to $250,000;                    alphanumeric symbol that can
                                                                                        performance standards but elects
       (iii) with an amount at                       be used to identify the relevant
                                                                                        evaluation under the lending,
       origination of more than                      loan file;
                                                                                        investment, and service tests shall
       $250,000; and                                 (ii) the loan amount at
                                                                                        collect, maintain, and report the data
       (iv) to businesses and farms                  origination or purchase;           required for other banks pursuant to
       with gross annual revenues of                 (iii) the loan location; and
                                                                                        paragraphs (a) and (b) of this
       $1 million or less (using the                 (iv) the gross annual income of
                                                                                        section.
       revenues that the bank                        the borrower that the bank
       considered in making its credit               considered in making its credit    (g) Assessment-area data. A bank,
       decision);                                    decision.                          except a small bank or a bank that
    (2) Community development loan                (2) Other loan data. At its option,   was a small bank during the prior
    data. The aggregate number and                a bank may provide other              calendar year, shall collect and



A Guide to CRA Data Collection and Reporting                                                                                36
                                                                     Appendix A—Regulation BB: Community Reinvestment




report to the Board by March 1 of                 median income of less than 10       loans located inside each
each year a list for each assessment              percent, 10 or more but less        assessment area reported by the
area showing the geographies within               than 20 percent, 20 or more but     bank and the number and amount
the area.                                         less than 30 percent, 30 or         of small-business and small-farm
                                                  more but less than 40 percent,      loans located outside the
(h) CRA disclosure statement. The                 40 or more but less than 50         assessment area(s) reported by
Board prepares annually for each                  percent, 50 or more but less        the bank; and
bank that reports data pursuant to                than 60 percent, 60 or more but     (4) the number and amount of
this section a CRA disclosure                     less than 70 percent, 70 or         community development loans
statement that contains, on a state-              more but less than 80 percent,      reported as originated or
by-state basis—                                   80 or more but less than 90         purchased.
   (1) for each county (and for each              percent, 90 or more but less
   assessment area smaller than a                 than 100 percent, 100 or more     (i) Aggregate disclosure statements.
   county) with a population of                   but less than 110 percent, 110    The Board, in conjunction with the
   500,000 persons or fewer in which              or more but less than 120         Office of the Comptroller of the
   the bank reported a small-                     percent, and 120 percent or       Currency, the Federal Deposit
   business or small-farm loan—                   more;                             Insurance Corporation, and the
      (i) the number and amount of                (ii) a list grouping each         Office of Thrift Supervision, prepares
      small-business and small-farm               geography in the county or        annually, for each MSA (including an
      loans reported as originated or             assessment area according to      MSA that crosses a state boundary)
      purchased located in low-,                  whether the median income in      and the non-MSA portion of each
      moderate-, middle-, and upper-              the geography relative to the     state, an aggregate disclosure
      income geographies;                         area median income is less        statement of small-business and
      (ii) a list grouping each                   than 10 percent, 10 or more but   small-farm lending by all institutions
      geography according to                      less than 20 percent, 20 or       subject to reporting under this part or
      whether the geography is low-,              more but less than 30 percent,    parts 25, 345, or 563e of this title.
      moderate-, middle-, or upper-               30 or more but less than 40       These disclosure statements
      income;                                     percent, 40 or more but less      indicate, for each geography, the
      (iii) a list showing each                   than 50 percent, 50 or more but   number and amount of all small-
      geography in which the bank                 less than 60 percent, 60 or       business and small-farm loans
      reported a small-business or                more but less than 70 percent,    originated or purchased by reporting
      small-farm loan; and                        70 or more but less than 80       institutions, except that the Board
      (iv) the number and amount of               percent, 80 or more but less      may adjust the form of the disclosure
      small-business and small-farm               than 90 percent, 90 or more but   if necessary, because of special
      loans to businesses and farms               less than 100 percent, 100 or     circumstances, to protect the privacy
      with gross annual revenues of               more but less than 110 percent,   of a borrower or the competitive
      $1 million or less;                         110 or more but less than 120     position of an institution.
   (2) for each county (and for each              percent, 120 percent or more;
   assessment area smaller than a                 (iii) a list showing each         (j) Central data depositories. The
   county) with a population in                   geography in which the bank       Board makes the aggregate
   excess of 500,000 persons in                   reported a small-business or      disclosure statements, described in
   which the bank reported a small-               small-farm loan; and              paragraph (i) of this section, and the
   business or small-farm loan—                   (iv) the number and amount of     individual bank CRA disclosure
      (i) the number and amount of                small-business and small-farm     statements, described in paragraph
      small-business and small-farm               loans to businesses and farms     (h) of this section, available to the
      loans reported as originated or             with gross annual revenues of     public at central data depositories.
      purchased located in                        $1 million or less;               The Board publishes a list of the
      geographies with median                  (3) the number and amount of         depositories at which the statements
      income relative to the area              small-business and small-farm        are available.



A Guide to CRA Data Collection and Reporting                                                                            37
                                                                          Appendix A—Regulation BB: Community Reinvestment




SECTION 228.43—Content                           retail banking services (e.g.,            (2) Banks required to report
and Availability of Public                       ATMs, ATMs not owned or                   Home Mortgage Disclosure Act
File                                             operated by or exclusively for the        (HMDA) data. A bank required to
(a) Information available to the                 bank, banking by telephone or             report home mortgage loan data
public. A bank shall maintain a public           computer, loan production offices,        pursuant to part 203 of this
file that includes the following                 and bank-at-work or bank-by-mail          chapter shall include in its public
information:                                     programs);                                file a copy of the HMDA
    (1) all written comments received            (6) a map of each assessment              disclosure statement provided by
    from the public for the current              area showing the boundaries of            the Federal Financial Institutions
    year and each of the prior two               the area and identifying the              Examination Council pertaining to
    calendar years that specifically             geographies contained within the          the bank for each of the prior two
    relate to the bank’s performance             area, either on the map or in a           calendar years. In addition, a
    in helping to meet community                 separate list; and                        bank that elected to have the
    credit needs, and any response to            (7) any other information the bank        Board consider the mortgage
    the comments by the bank, if                 chooses.                                  lending of an affiliate for any of
    neither the comments nor the               (b) Additional information available        these years shall include in its
    responses contain statements that          to the public.                              public file the affiliate’s HMDA
    reflect adversely on the good                 (1) Banks other than small banks.        disclosure statement for those
    name or reputation of any persons             A bank, except a small bank or a         years. The bank shall place the
    other than the bank or publication            bank that was a small bank during        statement(s) in the public file
    of which would violate specific               the prior calendar year, shall           within three business days after
    provisions of law;                            include in its public file the           its receipt.
    (2) a copy of the public section of           following information pertaining to      (3) Small banks. A small bank or
    the bank’s most recent CRA                    the bank and its affiliates, if          a bank that was a small bank
    performance evaluation prepared               applicable, for each of the prior        during the prior calendar year
    by the Board. The bank shall                  two calendar years:                      shall include in its public file—
    place this copy in the public file                (i) if the bank has elected to           (i) the bank’s loan-to-deposit
    within 30 business days after its                 have one or more categories of           ratio for each quarter of the
    receipt from the Board;                           its consumer loans considered            prior calendar year and, at its
    (3) a list of the bank’s branches,                under the lending test, for each         option, additional data on its
    their street addresses, and                       of these categories, the number          loan-to-deposit ratio; and
    geographies;                                      and amount of loans—                     (ii) the information required for
    (4) a list of branches opened or                      (A) to low-, moderate-,              other banks by paragraph
    closed by the bank during the                         middle-, and upper-income            (b)(1) of this section, if the bank
    current year and each of the prior                    individuals;                         has elected to be evaluated
    two calendar years, their street                      (B) located in low-,                 under the lending, investment,
    addresses, and geographies;                           moderate-, middle-, and              and service tests.
    (5) a list of services (including                     upper-income census tracts;      (4) Banks with strategic plans. A
    hours of operation, available loan                    and                              bank that has been approved to
    and deposit products, and                             (C) located inside the           be assessed under a strategic
    transaction fees) generally offered                   bank’s assessment area(s)        plan shall include in its public file
    at the bank’s branches and                            and outside the bank’s           a copy of that plan. A bank need
    descriptions of material                              assessment area(s); and          not include information submitted
    differences in the availability or                (ii) the bank’s CRA disclosure       to the Board on a confidential
    cost of services at particular                    statement. The bank shall            basis in conjunction with the plan.
    branches, if any. At its option, a                place the statement in the           (5) Banks with less-than-
    bank may include information                      public file within three business    satisfactory ratings. A bank that
    regarding the availability of                     days of its receipt from the         received a less-than-satisfactory
    alternative systems for delivering                Board.                               rating during its most recent



A Guide to CRA Data Collection and Reporting                                                                                   38
                                                                            Appendix A—Regulation BB: Community Reinvestment




   examination shall include in its            part. Only a branch of a bank having        lending, investment, and service
   public file a description of its            more than one assessment area               tests.
   current efforts to improve its              shall include the bracketed material           (1) Lending performance rating.
   performance in helping to meet              in the notice for branch offices. Only         The Board assigns each bank’s
   the credit needs of its entire              a bank that is an affiliate of a holding       lending performance one of the
   community. The bank shall update            company shall include the next-to-             five following ratings.
   the description quarterly.                  the-last sentence of the notices. A                (i) Outstanding. The Board
                                               bank shall include the last sentence               rates a bank’s lending
(c) Location of public information. A
                                               of the notices only if it is an affiliate          performance “outstanding” if, in
bank shall make available to the
                                               of a holding company that is not                   general, it demonstrates—
public for inspection upon request
                                               prevented by statute from acquiring                    (A) excellent
and at no cost the information
                                               additional banks.                                      responsiveness to credit
required in this section as follows:
   (1) at the main office and, if an                                                                  needs in its assessment
   interstate bank, at one branch              SECTION 228.45—                                        area(s), taking into account
   office in each state, all information
                                               Publication of Planned                                 the number and amount of
                                               Examination Schedule                                   home mortgage, small-
   in the public file; and
   (2) at each branch:                         The Board publishes at least 30 days                   business, small-farm, and
       (i) a copy of the public section        in advance of the beginning of each                    consumer loans, if
       of the bank’s most recent CRA           calendar quarter a list of banks                       applicable, in its assessment
       performance evaluation and a            scheduled for CRA examinations in                      area(s);
       list of services provided by the        that quarter.                                          (B) a substantial majority of
       branch; and                                                                                    its loans are made in its
       (ii) within five calendar days of                                                              assessment area(s);
       the request, all the information        APPENDIX A—Ratings                                     (C) an excellent geographic
       in the public file relating to the                                                             distribution of loans in its
                                               (a) Ratings in general.                                assessment area(s);
       assessment area in which the
                                                  (1) In assigning a rating, the
       branch is located.                                                                             (D) an excellent distribution,
                                                  Board evaluates a bank’s
                                                                                                      particularly in its assessment
(d) Copies. Upon request, a bank                  performance under the applicable
                                                                                                      area(s), of loans among
shall provide copies, either on paper             performance criteria in this part, in               individuals of different
or in another form acceptable to the              accordance with section 228.21,
                                                                                                      income levels and
person making the request, of the                 and section 228.28, which
                                                                                                      businesses (including farms)
information in its public file. The               provides for adjustments on the
                                                                                                      of different sizes, given the
bank may charge a reasonable fee                  basis of evidence of                                product lines offered by the
not to exceed the cost of copying                 discriminatory or other illegal
                                                                                                      bank;
and mailing (if applicable).                      credit practices.
                                                                                                      (E) an excellent record of
                                                  (2) A bank’s performance need
(e) Updating. Except as otherwise                                                                     serving the credit needs of
                                                  not fit each aspect of a particular
provided in this section, a bank shall                                                                highly economically
                                                  rating profile in order to receive
ensure that the information required                                                                  disadvantaged areas in its
                                                  that rating, and exceptionally
by this section is current as of April 1                                                              assessment area(s), low-
                                                  strong performance with respect
of each year.                                                                                         income individuals, or
                                                  to some aspects may compensate
                                                                                                      businesses (including farms)
                                                  for weak performance in others.
                                                                                                      with gross annual revenues
SECTION 228.44—Public                             The bank’s overall performance,
                                                                                                      of $1 million or less,
Notice by Banks                                   however, must be consistent with
                                                                                                      consistent with safe and
                                                  safe and sound banking practices
A bank shall provide in the public                                                                    sound operations;
                                                  and generally with the appropriate
lobby of its main office and each of                                                                  (F) extensive use of
                                                  rating profile as follows.
its branches the appropriate public                                                                   innovative or flexible lending
notice set forth in appendix B of this         (b) Banks evaluated under the                          practices in a safe and



A Guide to CRA Data Collection and Reporting                                                                                     39
                                                                       Appendix A—Regulation BB: Community Reinvestment




           sound manner to address                  low- or moderate-income                  of low- or moderate-income
           the credit needs of low- or              individuals or geographies;              individuals or geographies;
           moderate-income individuals              and                                      and
           or geographies; and                      (G) it has made a relatively             (G) it has made an
           (G) it is a leader in making             high level of community                  adequate level of community
           community development                    development loans.                       development loans.
           loans.                              (iii) Low satisfactory. The                (iv) Needs to improve. The
      (ii) High satisfactory. The              Board rates a bank’s lending               Board rates a bank’s lending
      Board rates a bank’s lending             performance “low satisfactory”             performance “needs to
      performance “high satisfactory”          if, in general, it demonstrates—           improve” if, in general, it
      if, in general, it demonstrates—              (A) adequate                          demonstrates—
           (A) good responsiveness to               responsiveness to credit                 (A) poor responsiveness to
           credit needs in its                      needs in its assessment                  credit needs in its assess-
           assessment area(s), taking               area(s), taking into account             ment area(s), taking into
           into account the number and              the number and amount of                 account the number and
           amount of home mortgage,                 home mortgage, small-                    amount of home mortgage,
           small-business, small-farm,              business, small-farm, and                small-business, small-farm,
           and consumer loans, if                   consumer loans, if applica-              and consumer loans, if
           applicable, in its assessment            ble, in its assessment                   applicable, in its assessment
           area(s);                                 area(s);                                 area(s);
           (B) a high percentage of its             (B) an adequate percentage               (B) a small percentage of its
           loans are made in its                    of its loans are made in its             loans are made in its
           assessment area(s);                      assessment area(s);                      assessment area(s);
           (C) a good geographic                    (C) an adequate geographic               (C) a poor geographic
           distribution of loans in its             distribution of loans in its             distribution of loans, particu-
           assessment area(s);                      assessment area(s);                      larly to low- or moderate-
           (D) a good distribution,                 (D) an adequate                          income geographies, in its
           particularly in its assessment           distribution, particularly in its        assessment area(s);
           area(s), of loans among                  assessment area(s), of loans             (D) a poor distribution,
           individuals of different                 among individuals of                     particularly in its assessment
           income levels and                        different income levels and              area(s), of loans among
           businesses (including farms)             businesses (including farms)             individuals of different
           of different sizes, given the            of different sizes, given the            income levels and busi-
           product lines offered by the             product lines offered by the             nesses (including farms) of
           bank;                                    bank;                                    different sizes, given the
           (E) a good record of serving             (E) an adequate record of                product lines offered by the
           the credit needs of highly               serving the credit needs of              bank;
           economically disadvantaged               highly economically                      (E) a poor record of serving
           areas in its assessment                  disadvantaged areas in its               the credit needs of highly
           area(s), low-income                      assessment area(s), low-                 economically disadvantaged
           individuals, or businesses               income individuals, or                   areas in its assessment
           (including farms) with gross             businesses (including farms)             area(s), low-income
           annual revenues of $1                    with gross annual revenues               individuals, or businesses
           million or less, consistent              of $1 million or less,                   (including farms) with gross
           with safe and sound                      consistent with safe and                 annual revenues of $1
           operations;                              sound operations;                        million or less, consistent
           (F) use of innovative or                 (F) limited use of innovative            with safe and sound
           flexible lending practices in a          or flexible lending practices            operations;
           safe and sound manner to                 in a safe and sound manner               (F) little use of innovative or
           address the credit needs of              to address the credit needs              flexible lending practices in a


A Guide to CRA Data Collection and Reporting                                                                             40
                                                                        Appendix A—Regulation BB: Community Reinvestment




           safe and sound manner to                   consistent with safe and             (iii) Low satisfactory. The
           address the credit needs of                sound operations;                    Board rates a bank’s
           low- or moderate-income                    (F) no use of innovative or          investment performance “low
           individuals or geographies;                flexible lending practices in a      satisfactory” if, in general, it
           and                                        safe and sound manner to             demonstrates—
           (G) it has made a low level                address the credit needs of               (A) an adequate level of
           of community development                   low- or moderate-income                   qualified investments,
           loans.                                     individuals or geographies;               particularly those that are
      (v) Substantial noncompliance.                  and                                       not routinely provided by
      The Board rates a bank’s                        (G) it has made few, if any,              private investors, although
      lending performance as being                    community development                     rarely in a leadership
      in “substantial noncompliance”                  loans.                                    position;
      if, in general, it demonstrates—         (2) Investment-performance                       (B) occasional use of
           (A) a very poor                     rating. The Board assigns each                   innovative or complex
           responsiveness to credit            bank’s investment performance                    qualified investments; and
           needs in its assessment             one of the five following ratings.               (C) adequate respon-
           area(s), taking into account           (i) Outstanding. The Board                    siveness to credit and
           the number and amount of               rates a bank’s investment                     community development
           home mortgage, small-                  performance “outstanding” if, in              needs.
           business, small-farm, and              general, it demonstrates—                (iv) Needs to improve. The
           consumer loans, if applica-                (A) an excellent level of            Board rates a bank’s invest-
           ble, in its assessment                     qualified investments,               ment performance “needs to
           area(s);                                   particularly those that are          improve” if, in general, it
           (B) a very small percentage                not routinely provided by            demonstrates—
           of its loans are made in its               private investors, often in a             (A) a poor level of qualified
           assessment area(s);                        leadership position;                      investments, particularly
           (C) a very poor geographic                 (B) extensive use of                      those that are not routinely
           distribution of loans, particu-            innovative or complex                     provided by private
           larly to low- or moderate-                 qualified investments; and                investors;
           income geographies, in its                 (C) excellent responsive-                 (B) rare use of innovative or
           assessment area(s);                        ness to credit and com-                   complex qualified invest-
           (D) a very poor distribution,              munity development needs.                 ments; and
           particularly in its assessment         (ii) High satisfactory. The                   (C) poor responsiveness to
           area(s), of loans among                Board rates a bank’s                          credit and community
           individuals of different               investment performance “high                  development needs.
           income levels and busi-                satisfactory” if, in general, it         (v) Substantial noncompliance.
           nesses (including farms) of            demonstrates—                            The Board rates a bank’s
           different sizes, given the                 (A) a significant level of           investment performance as
           product lines offered by the               qualified investments,               being in “substantial noncom-
           bank;                                      particularly those that are          pliance” if, in general, it
           (E) a very poor record of                  not routinely provided by            demonstrates—
           serving the credit needs of                private investors, occasion-              (A) few, if any, qualified
           highly economically                        ally in a leadership position;            investments, particularly
           disadvantaged areas in its                 (B) significant use of                    those that are not routinely
           assessment area(s), low-                   innovative or complex                     provided by private
           income individuals, or                     qualified investments; and                investors;
           businesses (including farms)               (C) good responsiveness to                (B) no use of innovative or
           with gross annual revenues                 credit and community                      complex qualified invest-
           of $1 million or less,                     development needs.                        ments; and



A Guide to CRA Data Collection and Reporting                                                                              41
                                                                     Appendix A—Regulation BB: Community Reinvestment




           (C) very poor responsive-                have been made, its record               particularly low- and
           ness to credit and commu-                of opening and closing                   moderate-income geogra-
           nity development needs.                  branches has not adversely               phies and low- and
   (3) Service-performance rating.                  affected the accessibility of            moderate-income individ-
   The Board assigns each bank’s                    its delivery systems,                    uals; and
   service performance one of the                   particularly in low- and                 (D) it provides an adequate
   five following ratings.                          moderate-income geogra-                  level of community
      (i) Outstanding. The Board                    phies and to low- and                    development services.
      rates a bank’s service                        moderate-income                     (iv) Needs to improve. The
      performance “outstanding” if, in              individuals;                        Board rates a bank’s service
      general, the bank                             (C) its services (including,        performance “needs to
      demonstrates—                                 where appropriate, business         improve” if, in general, the bank
           (A) its service-delivery                 hours) do not vary in a way         demonstrates—
           systems are readily                      that inconveniences its                  (A) its service-delivery
           accessible to geographies                assessment area(s),                      systems are unreasonably
           and individuals of different             particularly low- and                    inaccessible to portions of its
           income levels in its                     moderate-income geogra-                  assessment area(s),
           assessment area(s);                      phies and low- and                       particularly to low- or
           (B) to the extent changes                moderate-income individ-                 moderate-income geogra-
           have been made, its record               uals; and                                phies or to low- or moderate-
           of opening and closing                   (D) it provides a relatively             income individuals;
           branches has improved the                high level of community                  (B) to the extent changes
           accessibility of its delivery            development services.                    have been made, its record
           systems, particularly in low-       (iii) Low satisfactory. The                   of opening and closing
           or moderate-income geogra-          Board rates a bank’s service                  branches has adversely
           phies or to low- or moderate-       performance “low satisfactory”                affected the accessibility of
           income individuals;                 if, in general, the bank                      its delivery systems,
           (C) its services (including,        demonstrates—                                 particularly in low- or
           where appropriate, business              (A) its service-delivery                 moderate-income geogra-
           hours) are tailored to the               systems are reasonably                   phies or to low- or moderate-
           convenience and needs of                 accessible to geographies                income individuals;
           its assessment area(s),                  and individuals of different             (C) its services (including,
           particularly low- or                     income levels in its                     where appropriate, business
           moderate-income geogra-                  assessment area(s);                      hours) vary in a way that
           phies or low- or moderate-               (B) to the extent changes                inconveniences its assess-
           income individuals; and                  have been made, its record               ment area(s), particularly
           (D) it is a leader in providing          of opening and closing                   low- or moderate-income
           community development                    branches has generally not               geographies or low- or
           services.                                adversely affected the                   moderate-income
      (ii) High satisfactory. The                   accessibility of its delivery            individuals; and
      Board rates a bank’s service                  systems, particularly in low-            (D) it provides a limited
      performance “high satisfactory”               and moderate-income                      level of community
      if, in general, the bank                      geographies and to low- and              development services.
      demonstrates—                                 moderate-income                     (v) Substantial noncompliance.
           (A) its service-delivery                 individuals;                        The Board rates a bank’s
           systems are accessible to                (C) its services (including,        service performance as being
           geographies and individuals              where appropriate, business         in “substantial noncompliance”
           of different income levels in            hours) do not vary in a way         if, in general, the bank
           its assessment area(s);                  that inconveniences its             demonstrates—
           (B) to the extent changes                assessment area(s),                      (A) its service-delivery


A Guide to CRA Data Collection and Reporting                                                                             42
                                                                        Appendix A—Regulation BB: Community Reinvestment




         systems are unreasonably                 (ii) extensive use of innovative          (iii) poor responsiveness to
         inaccessible to significant              or complex qualified invest-              credit and community
         portions of its assessment               ments, community develop-                 development needs in its
         area(s), particularly to low-            ment loans, or community                  assessment area(s).
         or moderate-income                       development services; and              (4) Substantial noncompliance.
         geographies or to low- or                (iii) excellent responsiveness         The Board rates a wholesale or
         moderate-income                          to credit and community                limited-purpose bank’s community
         individuals;                             development needs in its               development performance in
         (B) to the extent changes                assessment area(s).                    “substantial noncompliance” if, in
         have been made, its record            (2) Satisfactory. The Board rates         general, it demonstrates—
         of opening and closing                a wholesale or limited-purpose               (i) few, if any, community
         branches has significantly            bank’s community development                 development loans, community
         adversely affected the                performance “satisfactory” if, in            development services, or
         accessibility of its delivery         general, it demonstrates—                    qualified investments, partic-
         systems, particularly in low-            (i) an adequate level of                  ularly investments that are not
         or moderate-income geogra-               community development loans,              routinely provided by private
         phies or to low- or moderate-            community development                     investors;
         income individuals;                      services, or qualified invest-            (ii) no use of innovative or
         (C) its services (including,             ments, particularly investments           complex qualified investments,
         where appropriate, business              that are not routinely provided           community development loans,
         hours) vary in a way that                by private investors;                     or community development
         significantly inconveniences             (ii) occasional use of innova-            services; and
         its assessment area(s),                  tive or complex qualified                 (iii) very poor responsiveness
         particularly low- or                     investments, community                    to credit and community
         moderate-income geogra-                  development loans, or                     development needs in its
         phies or low- or moderate-               community development                     assessment area(s).
         income individuals; and                  services; and                        (d) Banks evaluated under the
         (D) it provides few, if any,             (iii) adequate responsiveness        small-bank performance standards.
         community development                    to credit and community              The Board rates the performance of
         services.                                development needs in its             each bank evaluated under the
                                                  assessment area(s).                  small-bank performance standards
(c) Wholesale or limited-purpose               (3) Needs to improve. The Board         as follows.
banks. The Board assigns each                  rates a wholesale or limited-              (1) Eligibility for a satisfactory
wholesale or limited-purpose bank’s            purpose bank’s community                   rating. The Board rates a bank’s
community development perfor-                  development performance as                 performance “satisfactory” if, in
mance one of the four following                “needs to improve” if, in general, it      general, the bank demonstrates—
ratings.                                       demonstrates—                                 (i) a reasonable loan-to-
   (1) Outstanding. The Board rates               (i) a poor level of community              deposit ratio (considering
   a wholesale or limited-purpose                 development loans, community               seasonal variations) given the
   bank’s community development                   development services, or                   bank’s size, financial condition,
   performance “outstanding” if, in               qualified investments,                     the credit needs of its assess-
   general, it demonstrates—                      particularly investments that              ment area(s), and taking into
      (i) a high level of community               are not routinely provided by              account, as appropriate,
      development loans, community                private investors;                         lending-related activities such
      development services, or                    (ii) rare use of innovative or             as loan originations for sale to
      qualified investments,                      complex qualified investments,             the secondary markets and
      particularly investments that               community development loans,               community development loans
      are not routinely provided by               or community development                   and qualified investments;
      private investors;                          services; and                              (ii) a majority of its loans and,



A Guide to CRA Data Collection and Reporting                                                                               43
                                                                           Appendix A—Regulation BB: Community Reinvestment




       as appropriate, other lending-             “substantial noncompliance”              APPENDIX B—CRA Notice
       related activities are in its              depending on the degree to which
                                                                                           (a) Notice for main offices and, if an
       assessment area(s);                        its performance has failed to meet
                                                                                           interstate bank, one branch office in
       (iii) a distribution of loans to           the standards for a “satisfactory”
                                                                                           each state.
       and, as appropriate, other                 rating.
       lending-related activities for                                                        COMMUNITY REINVESTMENT ACT
                                               (e) Strategic-plan assessment and                       NOTICE
       individuals of different income
                                               rating.
       levels (including low- and                                                             Under the Federal Community
                                                  (1) Satisfactory goals. The Board
       moderate-income individuals)                                                        Reinvestment Act (CRA), the Federal
                                                  approves as “satisfactory”               Reserve Board (Board) evaluates our
       and businesses and farms of
                                                  measurable goals that adequately         record of helping to meet the credit
       different sizes that is
                                                  help to meet the credit needs of         needs of this community consistent with
       reasonable given the
                                                  the bank’s assessment area(s).           safe and sound operations. The Board
       demographics of the bank’s
                                                  (2) Outstanding goals. If the plan       also takes this record into account when
       assessment area(s);
                                                  identifies a separate group of           deciding on certain applications
       (iv) a record of taking                    measurable goals that                    submitted by us.
       appropriate action, as                     substantially exceed the levels             Your involvement is encouraged.
       warranted, in response to                  approved as “satisfactory,” the             You are entitled to certain information
       written complaints, if any, about          Board will approve those goals as        about our operations and our
       the bank’s performance in                  “outstanding.”
                                                                                           performance under the CRA, including,
       helping to meet the credit                                                          for example, information about our
                                                  (3) Rating. The Board assesses
       needs of its assessment                                                             branches, such as their location and
                                                  the performance of a bank                services provided at them; the public
       area(s); and                               operating under an approved plan         section of our most recent CRA
       (v) a reasonable geographic                to determine if the bank has met         performance evaluation, prepared by the
       distribution of loans given the            its plan goals:                          Federal Reserve Bank of_____(Reserve
       bank’s assessment area(s).                     (i) If the bank substantially        Bank); and comments received from the
   (2) Eligibility for an outstanding                 achieves its plan goals for a        public relating to our performance in
   rating. A bank that meets each of                  satisfactory rating, the Board       helping to meet community credit needs,
   the standards for a “satisfactory”                 will rate the bank’s                 as well as our responses to those
   rating under this paragraph and                    performance under the plan as        comments. You may review this
   exceeds some or all of those                       “satisfactory.”                      information today.
   standards may warrant                                                                      At least 30 days before the beginning
                                                      (ii) If the bank exceeds its plan
                                                                                           of each quarter, the Federal Reserve
   consideration for an overall rating                goals for a satisfactory rating
                                                                                           System publishes a list of the banks that
   of “outstanding.” In assessing                     and substantially achieves its       are scheduled for CRA examination by
   whether a bank’s performance is                    plan goals for an outstanding        the Reserve Bank in that quarter. This
   “outstanding,” the Board                           rating, the Board will rate the      list is available from (title of responsible
   considers the extent to which the                  bank’s performance under the         official), Federal Reserve Bank
   bank exceeds each of the                           plan as “outstanding.”               of_____(address). You may send written
   performance standards for a                        (iii) If the bank fails to meet      comments about our performance in
   “satisfactory” rating and its                      substantially its plan goals for a   helping to meet community credit needs
   performance in making qualified                    satisfactory rating, the Board       to (name and address of official at bank)
   investments and its performance                    will rate the bank as either         and (title of responsible official), Federal
   in providing branches and other                    “needs to improve” or                Reserve Bank of_____ (address). Your
   services and delivery systems                                                           letter, together with any response by us,
                                                      “substantial noncompliance,”
   that enhance credit availability in                                                     will be considered by the Federal
                                                      depending on the extent to
                                                                                           Reserve System in evaluating our CRA
   its assessment area(s).                            which it falls short of its plan     performance and may be made public.
   (3) “Needs to improve” or                          goals, unless the bank elected          You may ask to look at any comments
   “substantial noncompliance”                        in its plan to be rated              received by the Reserve Bank. You may
   ratings. A bank also may receive                   otherwise, as provided in            also request from the Reserve Bank an
   a rating of “needs to improve” or                  section 228.27(f)(4).                announcement of our applications



A Guide to CRA Data Collection and Reporting                                                                                        44
                                                                             Appendix A—Regulation BB: Community Reinvestment




covered by the CRA filed with the              by the Federal Reserve Bank of_____               At least 30 days before the beginning
Reserve Bank. We are an affiliate of           (address), and a list of services provided    of each quarter, the Federal Reserve
(name of holding company), a bank              at this branch. You may also have             System publishes a list of the banks that
holding company. You may request from          access to the following additional            are scheduled for CRA examination by
(title of responsible official), Federal       information, which we will make               the Reserve Bank in that quarter. This
Reserve Bank of_____(address) an               available to you at this branch within five   list is available from (title of responsible
announcement of applications covered           calendar days after you make a request        official), Federal Reserve Bank of_____
by the CRA filed by bank holding               to us: (1) a map showing the                  (address). You may send written
companies.                                     assessment area containing this branch,       comments about our performance in
                                               which is the area in which the Board          helping to meet community credit needs
                                               evaluates our CRA performance in this         to (name and address of official at bank)
(b) Notice for branch offices.                 community; (2) information about our          and (title of responsible official), Federal
 COMMUNITY REINVESTMENT ACT                    branches in this assessment area; (3) a       Reserve Bank of_____ (address). Your
           NOTICE                              list of services we provide at those          letter, together with any response by us,
                                               locations; (4) data on our lending            will be considered by the Federal
Under the Federal Community                    performance in this assessment area;          Reserve System in evaluating our CRA
Reinvestment Act (CRA), the Federal            and (5) copies of all written comments        performance and may be made public.
Reserve Board (Board) evaluates our            received by us that specifically relate to        You may ask to look at any comments
record of helping to meet the credit           our CRA performance in its assessment         received by the Reserve Bank. You may
needs of this community consistent with        area, and any responses we have made          also request from the Reserve Bank an
safe and sound operations. The Board           to those comments. If we are operating        announcement of our applications
also takes this record into account when       under an approved strategic plan, you         covered by the CRA filed with the
deciding on certain applications               may also have access to a copy of the         Reserve Bank. We are an affiliate of
submitted by us.                               plan.                                         (name of holding company), a bank
  Your involvement is encouraged.                 [If you would like to review information   holding company. You may request from
  You are entitled to certain information      about our CRA performance in other            (title of responsible official), Federal
about our operations and our                   communities served by us, the public file     Reserve Bank of_____ (address) an
performance under the CRA. You may             for our entire bank is available at (name     announcement of applications covered
review today the public section of our         of office located in state), located at       by the CRA filed by bank holding
most recent CRA evaluation, prepared           (address).]                                   companies.




A Guide to CRA Data Collection and Reporting                                                                                          45
Appendix B—                                    General Instructions                       dormitories, clubs, lodges,
                                                                                          association buildings, “homes” for
Schedule RC-C,                                 Schedule RC-C, part II, is to be           aged persons and orphans, golf
Part II                                        completed only as of the June 30           courses, recreational facilities,
                                               report date.                               and similar properties.
Loans to Small                                                                            Exclude loans for nonfarm
Businesses and                                 Schedule RC-C, part II, requests           nonresidential property
                                               information on the number and
Small Farms                                    amount currently outstanding of
                                                                                          construction and land
September 1997                                                                            development purposes with
                                               “loans to small businesses” and
                                                                                          original maturities of 60 months
                                               “loans to small farms,” as defined         or less (report in Schedule RC-C,
                                               below. This information is being
                                                                                          part I, item 1.a).*
                                               collected pursuant to Section 122 of
                                               the Federal Deposit Insurance              4 Commercial and industrial
                                               Corporation Improvement Act of             loans. Report (on the FFIEC 031,
                                               1991.                                      in columns A and B, as
                                                                                          appropriate) loans for commercial
                                               For purposes of this schedule,             and industrial purposes to sole
                                               “loans to small businesses”                proprietorships, partnerships,
                                               consist of the following:                  corporations, and other business
                                                  (1) Loans with original amounts of      enterprises, whether secured
                                                  $1 million or less that have been       (other than by real estate) or
                                                  reported in Schedule RC-C, part         unsecured, single-payment or
                                                  I, item 1.e (column B on the            installment. On the FFIEC 031,
                                                  FFIEC 031), “Loans secured by           032, and 033, report in the
                                                  nonfarm nonresidential                  appropriate subitem commercial
                                                  properties” (in domestic offices),      and industrial loans to U.S. and
                                                  and                                     non-U.S. addressees.
                                                  (2) Loans with original amounts of      Commercial and industrial loans
                                                  $1 million or less that have been       may take the form of direct or
                                                  reported in Schedule RC-C, part         purchased loans. Include the
                                                  I, item 4, “Commercial and              reporting bank’s own
                                                  industrial loans,” on the FFIEC         acceptances that it holds in its
                                                  034; item 4.a, “Commercial and
                                                  industrial loans to U.S.
                                                  addressees,” on the FFIEC 032           *As of 3/31/01, the following change to item
                                                                                       1(a) of Part I is effective: Item 1.a.
                                                  and 033; and item 4.a, column B,     “Construction, land development, and
                                                  “Commercial and industrial loans     other land loans”—At present, the Call
                                                  to U.S. addressees” in domestic      Report instruction for “Construction and land
                                                                                       development” loans directs banks to exclude
                                                  offices, on the FFIEC 031.           from this loan category (a) loans to acquire
                                                                                       and hold vacant land and (b) construction
                                                 1.e Secured by nonfarm                loans with original maturities greater than 60
                                                 nonresidential properties.            months. These two types of loans are
                                                 Report (on the FFIEC 031, in          currently reported in items 1.b through 1.e of
                                                                                       Schedule RC-C, part I, as loans secured by
                                                 column B) loans secured by real       farmland, 1–4 family residential properties,
                                                 estate as evidenced by                multifamily residential properties, or nonfarm
                                                 mortgages or other liens on           nonresidential properties, as appropriate. The
                                                                                       revised definitions for the five categories of
                                                 business and industrial               “Loans secured by real estate” will require
                                                 properties, hotels, motels,           land loans and long-term construction loans
                                                 churches, hospitals, educational      to be reported in recaptioned item 1.a.
                                                                                       “construction, land development, and other
                                                 and charitable institutions,
                                                                                       land loans.”


A Guide to CRA Data Collection and Reporting                                                                                       46
                                               Appendix B—Schedule RC-C, Part II. Loans to Small Businesses and Small Farms




   portfolio when the account party                 commercial and industrial                loans guaranteed by foreign
   is a commercial or industrial                    purposes (when farmers                   governmental institutions.
   enterprise. Also include loans to                operate a business enterprise            (13) Overnight lending for
   individuals for commercial,                      as well as a farm).                      commercial and industrial
   industrial, and professional                     (5) Loans supported by letters           purposes.
   purposes but not for investment                  of commitment from the                Exclude from commercial and
   or personal expenditure                          Agency for International              industrial loans:
   purposes. Exclude all commercial                 Development.                             (1) Loans secured by real
   and industrial loans held for                    (6) Loans made to finance                estate, even if for commercial
   trading.                                         construction that are not                and industrial purposes (report
   Include loans of the types listed                secured by real estate.                  in Schedule RC-C, part I,
   below. These descriptions may                    (7) Loans to merchants or                item1).
   overlap and are not all inclusive.               dealers on their own                     (2) Loans to depository
      (1) Loans for commercial,                     promissory notes secured by              institutions (report in Schedule
      industrial, and professional                  the pledge of their own                  RC-C, part I, item 2).
      purposes to:                                  installment paper.                       (3) Loans to nondepository
         (a) mining, oil- and gas-                  (8) Loans extended under                 financial institutions such as
         producing, and quarrying                   credit cards and related plans           real estate investment trusts,
         companies;                                 that are readily identifiable as         mortgage companies, and
         (b) manufacturing                          being issued in the name of a            insurance companies (report
         companies of all kinds,                    commercial or industrial                 as all other loans in Schedule
         including those which                      enterprise.                              RC-C, part I, item 8 on the
         process agricultural                       (9) Dealer flooring or floor-plan        FFIEC 034; item 9 on the
         commodities;                               loans.                                   FFIEC 031, 032, and 033).
         (c) construction companies;                (10) Loans collateralized by             (4) Loans for the purpose of
         (d) transportation and                     production payments (e.g., oil           purchasing or carrying
         communications companies                   or mining production                     securities (report in Schedule
         and public utilities;                      payments). Treat as a loan to            RC-C, part I, item 8 on the
         (e) wholesale and retail                   the original seller of the               FFIEC 034; item 9 on the
         trade enterprises and other                production payment rather                FFIEC 031, 032, and 033).
         dealers in commodities;                    than to the holder of the                (5) Loans for the purpose of
         (f) cooperative associations               production payment. For                  financing agricultural
         including farmers’                         example, report in this item, as         production, whether made to
         cooperatives;                              a loan to an oil company, a              farmers or to nonagricultural
         (g) service enterprises such               loan made to a nonprofit                 businesses (report in Schedule
         as hotels, motels, laundries,              organization collateralized by           RC-C, part I, item 3).
         automotive service stations,               an oil production payment; do            (6) Loans to nonprofit organi-
         and nursing homes and                      not include in Schedule RC-C,            zations, such as hospitals or
         hospitals operated for profit;             part I, item 8 on the FFIEC 034          educational institutions (report
         (h) insurance agents; and                  or item 9 on the FFIEC 031,              as all other loans in Schedule
         (i) practitioners of law,                  032, and 033 as a loan to the            RC-C, part I, item 8 on the
         medicine, and public                       nonprofit organization.                  FFIEC 034; item 9 on the
         accounting.                                (11) Loans and participations            FFIEC 031, 032, and 033),
      (2) Loans for the purpose of                  in loans secured by conditional          except those for which oil or
      financing capital expenditures                sales contracts made to                  mining production payments
      and current operations.                       finance the purchase of                  serve as collateral which are to
      (3) Loans to business enter-                  commercial transportation                be reported in this item.
      prises guaranteed by the Small                equipment.                               (7) Holdings of acceptances
      Business Administration.                      (12) Commercial and industrial           accepted by other banks
      (4) Loans to farmers for


A Guide to CRA Data Collection and Reporting                                                                              47
                                               Appendix B—Schedule RC-C, Part II. Loans to Small Businesses and Small Farms




      (report in Schedule RC-C,                  pasture land, whether tillable or          (2) Loans and advances made
      part I, item 5).                           not and whether wooded or not.             for the purpose of financing
      (8) Holdings of own                        Include loans secured by farm-             fisheries and forestries,
      acceptances when the account               land that are guaranteed by the            including loans to commercial
      party is another bank (report in           Farmers Home Administration                fishermen.
      Schedule RC-C, part I, item 2)             (FmHA) or by the Small Business            (3) Agricultural notes and other
      or a foreign government or                 Administration (SBA) and that are          notes of farmers that the bank
      official institution (report in            extended, serviced, and collected          has discounted for, or pur-
      Schedule RC-C, part I, item 8              by any party other than FmHA or            chased from, merchants and
      on the FFIEC 034; item 7 on                SBA. Exclude, however, loans               dealers, either with or without
      the FFIEC 031, 032, and 033).              extended, serviced, collected,             recourse to the seller.
      (9) Equipment trust certificates           and insured by FmHA (report in             (4) Loans to farmers that are
      (report in Schedule RC-B,                  Schedule RC-B, item 2.a,                   guaranteed by the Farmers
      item 5, “Other debt securities”).          Securities “Issued by U.S.                 Home Administration (FmHA)
      (10) Any commercial or                     Government agencies”). Also                or by the Small Business
      industrial loans held by the               exclude loans for farm property            Administration (SBA) and that
      reporting bank for trading                 construction and land develop-             are extended, serviced, and
      (report in Schedule RC, item 5,            ment purposes with original                collected by a party other than
      “Trading assets”).                         maturities of 60 months or less            the FmHA or SBA.
                                                 (report in Schedule RC-C, part I,
For purposes of this schedule,                                                               (5) Loans and advances to
                                                 item 1.a).
“loans to small farms” consist of                                                            farmers for purchases of farm
the following:                                   3 Loans to finance agricultural             machinery, equipment, and
   (1) Loans with original amounts of            production and other loans to               implements.
   $500,000 or less that have been               farmers. Report (on the FFIEC               (6) Loans and advances to
   reported in Schedule RC-C, part               031, in columns A and B, as                 farmers for all other purposes
   I, item 1.b (column B on the                  appropriate) loans for the                  associated with the
   FFIEC 031), “Loans secured by                 purpose of financing agricultural           maintenance or operations of
   farmland (including farm                      production. Include such loans              the farm, including purchases
   residential and other improve-                whether secured (other than by              of private passenger auto-
   ments)” (in domestic offices), and            real estate) or unsecured and               mobiles and other retail
   (2) Loans with original amounts of            whether made to farm and ranch              consumer goods and
   $500,000 or less that have been               owners and operators (including             provisions for the living
   reported in Schedule RC-C, part               tenants) or to nonfarmers. All              expenses of farmers or
   I, item 3 (column B on the FFIEC              other loans to farmers, other than          ranchers and their families.
   031), “Loans to finance agri-                 those excluded below, should                Loans to farmers for house-
   cultural production and other                 also be reported in this item.              hold, family, and other personal
   loans to farmers” (in domestic                Include as loans to finance                 expenditures (including credit
   offices).                                     agricultural production and other           cards and related plans) that
   1.b Secured by farmland.                      loans to farmers:                           are not readily identifiable as
   Report (on the FFIEC 031, in                     (1) Loans and advances made              being made to farmers need
   column B) loans secured by                       for the purpose of financing             not be broken out of Schedule
   farmland and improvements                        agricultural production,                 RC-C, part I, item 6 for
   thereon, as evidenced by                         including the growing and                inclusion in this item.
   mortgages or other liens.                        storing of crops, the marketing       Exclude from loans to finance
   Farmland includes all land known                 or carrying of agricultural           agricultural production and other
   to be used or usable for                         products by the growers               loans to farmers:
   agricultural purposes, such as                   thereof, and the breeding,               (1) Loans secured by real
   crop and livestock production.                   raising, fattening, or marketing         estate (report in Schedule
   Farmland includes grazing or                     of livestock.                            RC-C, part I, item 1).



A Guide to CRA Data Collection and Reporting                                                                              48
                                               Appendix B—Schedule RC-C, Part II. Loans to Small Businesses and Small Farms




      (2) Loans to farmers for                   credit or loan commitment was          to one borrower as separate
      commercial and industrial                  most recently approved,                individual loans.
      purposes, e.g., when a farmer              extended, or renewed prior to the
      is operating a business                    report date. However, if the           A bank that offers “corporate” or
      enterprise as well as a farm               amount currently outstanding as        “business” credit card programs
      (report in Schedule RC-C,                  of the report date exceeds this        under which credit cards are issued
      part I, item 4).                           size, the “original amount” is the     to one or more of a company’s
      (3) Loans to farmers for the               amount currently outstanding on        employees for business-related use
      purpose of purchasing or                   the report date.                       should treat each company’s
      carrying stocks, bonds, and                (2) For loan participations and        program as a single extension of
      other securities (report as all            syndications, the “original            credit to that company. The credit
      other loans in Schedule RC-C,              amount” of the loan participation      limits for all of the individual credit
      part I, item 8, on the FFIEC               or syndication is the entire           cards issued to the company’s
      034; report as loans for                   amount of the credit originated by     employees should be totalled and
      purchasing or carrying                     the lead lender.                       this total should be treated as the
      securities in Schedule RC-C,               (3) For all other loans, the           “original amount” of the “corporate”
      part I, item 9, on the FFIEC               “original amount” is the total         or “business” credit card program
      031, 032, and 033).                        amount of the loan at origination      established for this company. The
      (4) Loans to farmers secured               or the amount currently                company’s program should be
      by oil or mining production                outstanding as of the report date,     reported as one loan and the
      payments (report in Schedule               whichever is larger.                   amount currently outstanding would
      RC-C, part I, item 4).                                                            be the sum of the credit card
      (5) Notes insured by the                 The “amount currently                    balances as of the June 30 report
      Farmers Home Administration              outstanding” for a loan is its           date on each of the individual credit
      (FmHA) and instruments                   carrying value, i.e., the amount at      cards issued to the company’s
      (certificates of beneficial              which the loan is reported in            employees. However, when
      ownership, insured note                  Schedule RC-C, part I, item 1.b, 1.e,    aggregated data for each individual
      insurance contracts) repre-              3, or 4, above.                          company in a “corporate” or
      senting an interest in FmHA-             Except as noted below for                “business” credit card program are
      insured notes (report in                 “corporate” or “business” credit card    not readily determinable from the
      Schedule RC-B, item 2.a,                 programs, when determining               bank’s credit card records, the bank
      Securities “Issued by U.S.               “original amounts” and reporting the     should develop reasonable
      Government agencies”). Such              number and amount currently              estimates of the number of
      notes and instruments are                outstanding for a category of loans      “corporate” or “business” credit card
      backed by loans made,                    in this part II, multiple loans to one   programs in existence as of the
      serviced, and collected by the           borrower should be combined and          June 30 report date, the “original
      Farmers Home Administration              reported on an aggregate basis           amounts” of these programs, and
      and were issued prior to                 rather than as separate individual       the “amounts currently outstanding”
      January 1, 1975.                         loans to the extent that the loan        for these programs and should then
                                               systems in which the bank’s              report information about these
The following guidelines should be
                                               business and/or farm loan data are       programs on the basis of its
used to determine the “original
                                               maintained can provide aggregate         reasonable estimates. In no case
amount” of a loan:
                                               individual borrower data without         should the individual credit cards
  (1) For loans drawn down under
                                               undue cost to the reporting institu-     issued to a company’s employees
  lines of credit or loan
                                               tion. However, if the burden of such     under a “corporate” or “business”
  commitments, the “original
                                               aggregation would be excessive, the      credit card program be reported as
  amount” of the loan is the size of
                                               institution may report multiple loans    separate individual loans to small
  the line of credit or loan
  commitment when the line of                                                           businesses.




A Guide to CRA Data Collection and Reporting                                                                                 49
                                               Appendix B—Schedule RC-C, Part II. Loans to Small Businesses and Small Farms




Loans                                              dollar volume of your bank’s              RC-C, part I, item 1.e (column B
                                                   loans in each of these two                on the FFIEC 031), “Loans
to Small Businesses                                categories has “original                  secured by nonfarm
Item                                               amounts” (as described above in           nonresidential properties” (in
No. Caption and Instructions                       the General Instructions to this          domestic offices).
                                                   part II) of $100,000 or less, place
1   Indicate in the appropriate box                                                      2.b Number of “Commercial and
                                                   an “X” in the box marked “YES,”
    at the right whether all or                                                              industrial loans (to U.S.
    substantially all of the dollar                complete items 2.a and 2.b
                                                                                             addressees)” (in domestic
                                                   below, skip items 3 and 4, and
    volume of your bank’s “Loans                                                             offices) reported in Schedule
                                                   go to item 5.
    secured by nonfarm                                                                       RC-C, part I, item 4. Count the
    nonresidential properties” (in                 If your bank has no loans                 number of individual loans
    domestic offices) reported in                  outstanding in both of these two          currently outstanding whose
    Schedule RC-C, part I, item                    loan categories, place an “X” in          carrying values add up to the
    1.e, and all or substantially all              the box marked “NO,” skip items           amount reported in Schedule
    of the dollar volume of your                   2 through 4, and go to item 5.            RC-C, part I, item 4 (column B
    bank’s “Commercial and                         Otherwise, place an “X” in the            on the FFIEC 031), “Commercial
    industrial loans (to U.S.                      box marked “NO,” skip items 2.a           and industrial loans (to U.S.
    addressees)” (in domestic                      and 2.b, complete items 3 and 4           addressees)” (in domestic
    offices) reported in Schedule                  below, and go to item 5.                  offices).
    RC-C, part I, item 4, have
                                               2   Report the total number of            3   Number and amount currently
    original amounts of $100,000
                                                   loans currently outstanding               outstanding of “Loans
    or less.
                                                   for each of the following                 secured by nonfarm
    If: (a) the average size of the                Schedule RC-C, part I, loan               nonresidential properties” (in
    amount currently outstanding for               categories. Multiple loans to             domestic offices) reported in
    your bank’s “Loans secured by                  one borrower should be                    Schedule RC-C, part I, item
    nonfarm nonresidential                         combined and reported on an               1.e. See the General
    properties” (in domestic offices)              aggregate basis rather than as            Instructions to this part II for the
    as reported in Schedule RC-C,                  separate individual loans to the          guidelines for determining the
    part I, above, is $100,000 or                  extent that the loan systems in           “original amount” of a loan.
    less, and                                      which the bank’s business and/            Multiple loans to one borrower
    (b) the average size of the                    or farm loan data are maintained          should be combined and
    amount currently outstanding for               can provide aggregate individual          reported on an aggregate basis
    your bank’s “Commercial and                    borrower data without undue               rather than as separate
    industrial loans (to U.S.                      cost to the reporting institution.        individual loans to the extent
    addressees)” (in domestic                      However, if the burden of such            that the loan systems in which
    offices) as reported in Schedule               aggregation would be excessive,           the bank’s business and/or farm
    RC-C, part I, above, is $100,000               the institution may report                loan data are maintained can
    or less, and                                   multiple loans to one borrower            provide aggregate individual
    (c) your lending officers’                     as separate individual loans.             borrower data without undue
    knowledge of your bank’s loans             2.a Number of “Loans secured by               cost to the reporting institution.
    or other relevant information                  nonfarm nonresidential                    However, if the burden of such
    pertaining to “Loans secured by                properties” (in domestic                  aggregation would be excessive,
    nonfarm nonresidential                         offices) reported in Schedule             the institution may report
    properties” (in domestic offices)              RC-C, part I, item 1.e. Count the         multiple loans to one borrower
    and “Commercial and industrial                 number of individual loans                as separate individual loans.
    loans (to U.S. addressees)” (in                currently outstanding whose               The sum of the amounts
    domestic offices) indicates that               carrying values add up to the             currently outstanding reported in
    all or substantially all of the                amount reported in Schedule               items 3.a through 3.c, column B,



A Guide to CRA Data Collection and Reporting                                                                                  50
                                               Appendix B—Schedule RC-C, Part II. Loans to Small Businesses and Small Farms




    must be less than or equal to                  carrying values were included in         “business” credit card programs.
    Schedule RC-C, part I, item 1.e                the amount reported in column            Multiple loans to one borrower
    (column B on the FFIEC 031).                   B for this item (i.e., those “Loans      should be combined and
                                                   secured by nonfarm                       reported on an aggregate basis
3.a With original amounts of                       nonresidential properties” (in           rather than as separate
    $100,000 or less. Add up the                   domestic offices) with “original         individual loans to the extent
    total carrying value of all                    amounts” of more than                    that the loan systems in which
    currently outstanding “Loans                   $100,000 through $250,000).              the bank’s business and/or farm
    secured by nonfarm                             Report this number in column A.          loan data are maintained can
    nonresidential properties” (in                                                          provide aggregate individual
    domestic offices) with “original           3.c With original amounts of more            borrower data without undue
    amounts” of $100,000 or less                   than $250,000 through                    cost to the reporting institution.
    and report this total amount in                $1,000,000. Add up the total             However, if the burden of such
    column B. Do not add up the                    carrying value of all currently          aggregation would be excessive,
    “original amounts” of each of                  outstanding “Loans secured by            the institution may report
    these loans and report the total               nonfarm nonresidential                   multiple loans to one borrower
    original amount in column B.                   properties” (in domestic offices)        as separate individual loans.
    Count the number of individual                 with “original amounts” of more          The sum of the amounts
    “Loans secured by nonfarm                      than $250,000 through                    currently outstanding reported in
    nonresidential properties” (in                 $1,000,000 and report this total         items 4.a through 4.c, column B,
    domestic offices) whose carrying               amount in column B. Do not add           must be less than or equal to
    values were included in the                    up the “original amounts” of             Schedule RC-C, part I, item 4 on
    amount reported in column B for                each of these loans and report           the FFIEC 034, item 4.a on the
    this item (i.e., those “Loans                  the total original amount in             FFIEC 032 and 033, and item
    secured by nonfarm                             column B.                                4.a, column B on the FFIEC
    nonresidential properties” (in                 Count the number of individual           031.
    domestic offices) with “original               “Loans secured by nonfarm
    amounts” of $100,000 or less).                                                       4.a With original amounts of
                                                   nonresidential properties” (in
    Report this number in column A.                                                          $100,000 or less. Add up the
                                                   domestic offices) whose carrying
                                                                                             total carrying value of all
                                                   values were included in the
3.b With original amounts of more                                                            currently outstanding
                                                   amount reported in column B for
    than $100,000 through                                                                    “Commercial and industrial loans
                                                   this item (i.e., those “Loans
    $250,000. Add up the total                                                               (to U.S. addressees)” (in
                                                   secured by nonfarm
    carrying value of all currently                                                          domestic offices) with “original
                                                   nonresidential properties” (in
    outstanding “Loans secured by                                                            amounts” of $100,000 or less
                                                   domestic offices) with “original
    nonfarm nonresidential                                                                   and report this total amount in
                                                   amounts” of more than $250,000
    properties” (in domestic offices)                                                        column B. Do not add up the
                                                   through $1,000,000). Report this
    with “original amounts” of more                                                          “original amounts” of each of
                                                   number in column A.
    than $100,000 through                                                                    these loans and report the total
    $250,000 and report this total             4   Number and amount currently               original amount in column B.
    amount in column B. Do not add                 outstanding of “Commercial               Count the number of individual
    up the “original amounts” of                   and industrial loans (to U.S.            “Commercial and industrial loans
    each of these loans and report                 addressees)” (in domestic                (to U.S. addressees)” (in
    the total original amount in                   offices) reported in Schedule            domestic offices) whose carrying
    column B.                                      RC-C, part I, item 4. See the            values were included in the
                                                   General Instructions to this part        amount reported in column B for
    Count the number of individual                 II for the guidelines for                this item (i.e., those “Commercial
    “Loans secured by nonfarm                      determining the “original                and industrial loans (to U.S.
    nonresidential properties” (in                 amount” of a loan and for the            addressees)” (in domestic
    domestic offices) whose                        treatment of “corporate” or              offices) with “original amounts”

A Guide to CRA Data Collection and Reporting                                                                               51
                                               Appendix B—Schedule RC-C, Part II. Loans to Small Businesses and Small Farms




    of $100,000 or less). Report this              domestic offices) whose                 offices) as reported in Schedule
    number in column A.                            carrying values were included in        RC-C, part I, above, is $100,000
4.b With original amounts of more                  the amount reported in column           or less, and
    than $100,000 through                          B for this item (i.e., those            (c) your lending officers’
    $250,000. Add up the total                     “Commercial and industrial              knowledge of your bank’s loans
    carrying value of all currently                loans (to U.S. addressees)” (in         or other relevant information
    outstanding “Commercial and                    domestic offices) with “original        pertaining to “Loans secured by
    industrial loans (to U.S.                      amounts” of more than                   farmland (including farm residen-
    addressees)” (in domestic                      $250,000 through $1,000,000).           tial and other improvements” (in
    offices) with “original amounts”               Report this number in column A.         domestic offices) and your
    of more than $100,000 through                                                          “Loans to finance agricultural
    $250,000 and report this total                                                         production and other loans to
                                               Agricultural Loans                          farmers” (in domestic offices)
    amount in column B. Do not add
    up the “original amounts” of each          to Small Farms                              indicates that all or substantially
    of these loans and report the                                                          all of the dollar volume of your
                                               Item
    total original amount in                   No. Caption and Instructions                bank’s loans in each of these
    column B.                                                                              two categories has “original
                                               5   Indicate in the appropriate box         amounts” (as described above in
    Count the number of individual                 at the right whether all or             the General Instructions to this
    “Commercial and industrial loans               substantially all of the dollar         part II) of $100,000 or less,
    (to U.S. addressees)” (in                      volume of your bank’s “Loans
    domestic offices) whose                        secured by farmland                     place an “X” in the box marked
    carrying values were included in               (including farm residential and         “YES,” complete items 6.a and
    the amount reported in column                  other improvements)” (in                6.b below, and do not complete
    B for this item (i.e., those                   domestic offices) reported in           items 7 and 8 below.
    “Commercial and industrial                     Schedule RC-C, part I, item
    loans (to U.S. addressees)” (in                                                        If your bank has no loans
                                                   1.b, and all or substantially all
    domestic offices) with “original                                                       outstanding in both of these two
                                                   of the dollar volume of your
    amounts” of more than                                                                  loan categories, place an “X” in
                                                   bank’s “Loans to finance
    $100,000 through $250,000).                                                            the box marked “NO,” and do not
                                                   agricultural production and
    Report this number in column A.                                                        complete items 6 through 8.
                                                   other loans to farmers” (in
4.c With original amounts of more                  domestic offices) reported in           Otherwise, place an “X” in the
    than $250,000 through                          Schedule RC-C, part I, item 3,          box marked “NO,” skip items 6.a
    $1,000,000. Add up the total                   have original amounts of                and 6.b, and complete items 7
    carrying value of all currently                $100,000 or less.                       and 8 below.
    outstanding “Commercial and                    If: (a) the average size of the
    industrial loans (to U.S.                      amount currently outstanding for    6   Report the total number of
    addressees)” (in domestic                      your bank’s “Loans secured by           loans currently outstanding
    offices) with “original amounts”               farmland (including farm                for each of the following
    of more than $250,000 through                  residential and other improve-          Schedule RC-C, part I, loan
    $1,000,000 and report this total               ments)” (in domestic offices) as        categories. Multiple loans to
    amount in column B. Do not add                 reported in Schedule RC-C, part         one borrower should be
    up the “original amounts” of each              I, above, is $100,000 or less,          combined and reported on an
    of these loans and report the                  and                                     aggregate basis rather than as
    total original amount in                                                               separate individual loans to the
                                                   (b) the average size of the
    column B.                                                                              extent that the loan systems in
                                                   amount currently outstanding for
                                                                                           which the bank’s business and/
    Count the number of individual                 your bank’s “Loans to finance
                                                                                           or farm loan data are maintained
    “Commercial and industrial loans               agricultural production and other
                                                                                           can provide aggregate individual
    (to U.S. addressees)” (in                      loans to farmers” (in domestic
                                                                                           borrower data without undue


A Guide to CRA Data Collection and Reporting                                                                               52
                                               Appendix B—Schedule RC-C, Part II. Loans to Small Businesses and Small Farms




    cost to the reporting institution.             Multiple loans to one borrower           outstanding “Loans secured by
    However, if the burden of such                 should be combined and                   farmland (including farm
    aggregation would be excessive,                reported on an aggregate basis           residential and other improve-
    the institution may report                     rather than as separate                  ments” (in domestic offices) with
    multiple loans to one borrower                 individual loans to the extent           “original amounts” of more than
    as separate individual loans.                  that the loan systems in which           $100,000 through $250,000 and
                                                   the bank’s business and/or farm          report this total amount in
6.a Number of “Loans secured by
                                                   loan data are maintained can             column B. Do not add up the
    farmland (including farm
                                                   provide aggregate individual             “original amounts” of each of
    residential and other
                                                   borrower data without undue              these loans and report the total
    improvements)” (in domestic                    cost to the reporting institution.       original amount in column B.
    offices) reported in Schedule
                                                   However, if the burden of such           Count the number of individual
    RC-C, part I, item 1.b. Count
                                                   aggregation would be excessive,          “Loans secured by farmland
    the number of individual loans
                                                   the institution may report               (including farm residential and
    currently outstanding whose
                                                   multiple loans to one borrower           other improvements)” (in
    carrying values add up to the                  as separate individual loans.
    amount reported in Schedule                                                             domestic offices) whose carrying
    RC-C, part I, item 1.b (column B                                                        values were included in the
                                               7.a With original amounts of
    on the FFIEC 031), “Loans                                                               amount reported in column B for
                                                   $100,000 or less. Add up the
    secured by farmland (including                                                          this item (i.e., those “Loans
                                                   total carrying value of all
    farm residential and other                                                              secured by farmland (including
                                                   currently outstanding “Loans
    improvements)” (in domestic                                                             farm residential and other
                                                   secured by farmland (including
    offices).                                                                               improvements)” (in domestic
                                                   farm residential and other
                                                                                            offices) with “original amounts”
                                                   improvements)” (in domestic
6.b Number of “Loans to finance                                                             of more than $100,000 through
                                                   offices) with “original amounts”
    agricultural production and                                                             $250,000). Report this number
                                                   of $100,000 or less and report
    other loans to farmers” (in                                                             in column A.
                                                   this total amount in column B.
    domestic offices) reported in
                                                   Do not add up the “original          7.c With original amounts of more
    Schedule RC-C, part I, item 3.
                                                   amounts” of each of these loans          than $250,000 through
    Count the number of individual
                                                   and report the total original            $500,000. Add up the total
    loans currently outstanding
                                                   amount in column B.                      carrying value of all currently
    whose carrying values add up to
                                                   Count the number of individual           outstanding “Loans secured by
    the amount reported in Schedule
                                                   “Loans secured by farmland               farmland (including farm
    RC-C, part I, item 3 (column B
                                                   (including farm residential and          residential and other improve-
    on the FFIEC 031), “Loans to
                                                   other improvements” (in                  ments)” (in domestic offices) with
    finance agricultural production
                                                   domestic offices) whose carrying         “original amounts” of more than
    and other loans to farmers” (in
                                                   values were included in the              $250,000 through $500,000 and
    domestic offices).
                                                   amount reported in column B for          report this total amount in
7   Number and amount currently                    this item (i.e., those “Loans            column B. Do not add up the
    outstanding of “Loans                          secured by farmland (including           “original amounts” of each of
    secured by farmland                            farm residential and other               these loans and report the total
    (including farm residential and                improvements)” (in domestic              original amount in column B.
    other improvements)” (in                       offices) with “original amounts”         Count the number of individual
    domestic offices) reported in                  of $100,000 or less). Report this        “Loans secured by farmland
    Schedule RC-C, part I, item                    number in column A.                      (including farm residential and
    1.b. See the General                                                                    other improvements)” (in
                                               7.b With original amounts of more
    Instructions to this part II for the                                                    domestic offices) whose carrying
                                                   than $100,000 through
    guidelines for determining the                                                          values were included in the
                                                   $250,000. Add up the total
    “original amount” of a loan.                                                            amount reported in column B for
                                                   carrying value of all currently



A Guide to CRA Data Collection and Reporting                                                                               53
                                               Appendix B—Schedule RC-C, Part II. Loans to Small Businesses and Small Farms




    this item (i.e., those “Loans                  and report this total amount in         than $250,000 through
    secured by farmland (including                 column B. Do not add up the             $500,000. Add up the total
    farm residential and other                     “original amounts” of each of           carrying value of all currently
    improvements)” (in domestic                    these loans and report the total        outstanding “Loans to finance
    offices) with “original amounts”               original amount in column B.            agricultural production and other
    of more than $250,000 through                                                          loans to farmers” (in domestic
                                                   Count the number of individual
    $500,000). Report this number in                                                       offices) with “original amounts”
                                                   “Loans to finance agricultural
    column A.                                                                              of more than $250,000 through
                                                   production and other loans to
                                                                                           $500,000 and report this total
                                                   farmers” (in domestic offices)
8   Number and amount currently                                                            amount in column B. Do not add
                                                   whose carrying values were
    outstanding of “Loans to                                                               up the “original amounts” of each
                                                   included in the amount reported
    finance agricultural                                                                   of these loans and report the
                                                   in column B for this item (i.e.,
    production and other loans to                                                          total original amount in
                                                   those “Loans to finance agricul-
    farmers” (in domestic offices)                                                         column B.
                                                   tural production and other loans
    reported in Schedule RC-C,                                                             Count the number of individual
                                                   to farmers” (in domestic offices)
    part I, item 3. See the General                                                        “Loans to finance agricultural
                                                   with “original amounts” of
    Instructions to this part II for the                                                   production and other loans to
                                                   $100,000 or less). Report this
    guidelines for determining the                                                         farmers” (in domestic offices)
                                                   number in column A.
    “original amount” of a loan.                                                           whose carrying values were
    Multiple loans to one borrower             8.b With original amounts of more           included in the amount reported
    should be combined and                         than $100,000 through                   in column B for this item (i.e.,
    reported on an aggregate basis                 $250,000. Add up the total              those “Loans to finance
    rather than as separate                        carrying value of all currently         agricultural production and other
    individual loans to the extent                 outstanding “Loans to finance           loans to farmers” (in domestic
    that the loan systems in which                 agricultural production and other       offices) with “original amounts”
    the bank’s business and/or farm                loans to farmers” (in domestic          of more than $250,000 through
    loan data are maintained can                   offices) with “original amounts”        $500,000). Report this number
    provide aggregate individual                   of more than $100,000 through           in column A.
    borrower data without undue                    $250,000 and report this total
    cost to the reporting institution.             amount in column B. Do not add      Examples
    However, if the burden of such                 up the “original amounts” of
    aggregation would be excessive,                each of these loans and report      of Reporting
    the institution may report                     the total original amount in        in Schedule RC-C,
    multiple loans to one borrower                 column B.
    as separate individual loans.
                                                                                       Part II
                                                   Count the number of individual
    The sum of the amounts                         “Loans to finance agricultural      (1) A bank has a “Loan secured by
    currently outstanding reported in              production and other loans to       nonfarm nonresidential property”
    items 8.a through 8.c, column B,               farmers” (in domestic offices)      which has a carrying value on the
    must be less than or equal to                  whose carrying values were          June 30 report date of $70,000 and
    Schedule RC-C, part I, item 3                  included in the amount reported     this amount is included in Schedule
    (column B on the FFIEC 031).                   in column B for this item (i.e.,    RC-C, part I, item 1.e. The bank
                                                   those “Loans to finance agricul-    made this loan to the borrower in the
8.a With original amounts of
                                                   tural production and other loans    original amount of $75,000, so it
    $100,000 or less. Add up the
                                                   to farmers” (in domestic offices)   would be considered a “loan to a
    total carrying value of all
                                                   with “original amounts” of more     small business” and would be
    currently outstanding “Loans to                                                    reported in Schedule RC-C, part II.
                                                   than $100,000 through
    finance agricultural production
                                                   $250,000). Report this number in    Because the original amount of the
    and other loans to farmers” (in
                                                   column A.                           loan is $100,000 or less, the bank
    domestic offices) with “original
                                                                                       would report the $70,000 amount
    amounts” of $100,000 or less               8.c With original amounts of more


A Guide to CRA Data Collection and Reporting                                                                              54
                                               Appendix B—Schedule RC-C, Part II. Loans to Small Businesses and Small Farms




currently outstanding in part II, item         Nevertheless, based on the entire        amount of the entire credit exceeds
3.a, column B.                                 amount of the credit that was            $1,000,000, the loan would not be
                                               originated by the bank, the loan         considered a “loan to a small
(2) The bank has a second “Loan
                                               would be considered a “loan to a         business” and would not be reported
secured by nonfarm nonresidential
                                               small business” and would be             in Schedule RC-C, part II.
property” which has a carrying value
                                               reported in Schedule RC-C, part II.
on the June 30 report date of                                                           (7) The bank has a “Loan secured
                                               Because the original amount of the
$60,000 and this amount is included                                                     by nonfarm nonresidential property”
                                               entire loan is $500,000 which falls
in Schedule RC-C, part I, item 1.e.                                                     and a “Commercial and industrial
                                               within the more than $250,000
The bank made this loan to the                                                          loan” to the same borrower. The first
                                               through $1,000,000 range, the bank
borrower in the original amount of                                                      loan has a carrying value on the
                                               would report the $90,000 amount
$125,000, so it would be considered                                                     June 30 report date of $375,000 and
                                               currently outstanding in part II, item
a “loan to a small business” and                                                        this amount is included in Schedule
                                               4.c, column B.
would be reported in Schedule                                                           RC-C, part I, item 1.e. This “Loan
RC-C, part II. Because the original            (5) The bank has a third                 secured by nonfarm nonresidential
amount of the loan falls within the            “Commercial and industrial loan”         property” was made in the original
more than $100,000 through                     which has a carrying value on the        amount of $400,000. The second
$250,000 range, the bank would                 June 30 report date of $55,000 and       loan has a carrying value on the
report the $60,000 amount currently            this amount is included in Schedule      June 30 report date of $650,000 and
outstanding in part II, item 3.b,              RC-C, part I, item 4. This loan          this amount is included in Schedule
column B.                                      represents a participation               RC-C, part I, item 4. This “Commer-
                                               purchased by the bank from another       cial and industrial loan” was made in
(3) The bank has a “Commercial and
                                               lender. The original amount of the       the original amount of $750,000.
industrial loan” which has a carrying
                                               entire credit is $750,000 and the
value on the June 30 report date of                                                     Case I: The bank’s loan system can
                                               bank’s original share of this credit
$200,000 and this amount is                                                             provide aggregate individual
                                               was $75,000. Based on the entire
included in Schedule RC-C, part I,                                                      borrower data without undue cost to
                                               amount of the credit that was
item 4. The bank made this loan to                                                      the reporting institution. The loan
                                               originated by the other lender, the
the borrower in the original amount                                                     system indicates that this borrower’s
                                               loan would be considered a “loan to
of $250,000, so it would be                                                             two loans have a combined original
                                               a small business” and would be
considered a “loan to a small                                                           amount of $1,150,000 and therefore
                                               reported in Schedule RC-C, part II.
business” and would be reported in                                                      the loans would not be considered
                                               Because the original amount of the
Schedule RC-C, part II. Because the                                                     “loans to a small business” and
                                               entire credit is $750,000 which falls
original amount of the loan is exactly                                                  would not be reported in Schedule
                                               within the more than $250,000
$250,000 which is the upper end of                                                      RC-C, part II.
                                               through $1,000,000 range, the bank
the more than $100,000 through
                                               would report the $55,000 amount          Case II: The bank’s loan system
$250,000 range, the bank would
                                               currently outstanding in part II, item   cannot provide aggregate individual
report the $200,000 amount
                                               4.c, column B.                           borrower data without undue cost to
currently outstanding in part II, item
4.b, column B.                                                                          the reporting institution. Therefore,
                                               (6) The bank has another
                                                                                        the borrower’s two loans would be
(4) The bank has a second                      “Commercial and industrial loan”
                                                                                        treated as separate loans for
“Commercial and industrial loan”               and it has a carrying value on the
                                                                                        purposes of Schedule RC-C, part II.
which has a carrying value on the              June 30 report date of $120,000.
                                                                                        Based on its $400,000 original
June 30 report date of $90,000 and             This amount is included in Schedule
                                                                                        amount, the “Loan secured by
this amount is included in Schedule            RC-C, part I, item 4. This loan
                                                                                        nonfarm nonresidential property”
RC-C, part I, item 4. The bank made            represents a participation
                                                                                        would be considered a “loan to a
this loan to the borrower in the               purchased by the bank from another
                                                                                        small business” and would be
original amount of $500,000 and                lender. The original amount of the
                                                                                        reported in Schedule RC-C, part II.
sold loan participations for $400,000          entire credit is $1,250,000 and the
                                                                                        Because the original amount of the
while retaining $100,000.                      bank’s original share of this credit
                                                                                        loan falls within the more than
                                               was $250,000. Because the original


A Guide to CRA Data Collection and Reporting                                                                               55
                                               Appendix B—Schedule RC-C, Part II. Loans to Small Businesses and Small Farms




$250,000 through $1,000,000                    two loans have a combined original       one loan for purposes of part II, item
range, the bank would report the               amount of $310,000 and therefore         7.a, column A.
$375,000 amount currently                      the two loans together would be
                                                                                        (9) The bank has one final “Loan
outstanding in part II, item 3.c,              considered a single “loan to a small
                                                                                        secured by farmland” which has a
column B, and count this loan as               farm” and would be reported in
                                                                                        carrying value on the June 30 report
one loan for purposes of part II, item         Schedule RC-C, part II. Because the
                                                                                        date of $5,000 and this amount is
3.c, column A. Since the                       original amount of the two combined
                                                                                        included in Schedule RC-C, part I,
“Commercial and industrial loan” is            loans falls within the more than
                                                                                        item 1.b. The bank made this loan to
being handled separately and its               $250,000 through $500,000 range,
                                                                                        the borrower in the original amount
original amount is $750,000, it                the bank would report the $275,000
                                                                                        of $300,000, so it would be
would also be considered a “loan to            combined total of the amounts
                                                                                        considered a “loan to a small farm”
a small business” and would be                 currently outstanding for the two
                                                                                        and would be reported in Schedule
reported in Schedule RC-C, part II.            loans in part II, item 7.c, column B,
                                                                                        RC-C, part II. Because the original
Because the original amount of this            and count these two loans to the
                                                                                        amount of the loan falls within the
loan falls within the more than                same borrower as one loan for
                                                                                        more than $250,000 through
$250,000 through $1,000,000                    purposes of part II, item 7.c,
                                                                                        $500,000 range, the bank would
range, the bank would report the               column A.
                                                                                        report the $5,000 amount currently
$650,000 amount currently
                                               Case II: The bank’s loan system          outstanding in part II, item 7.c,
outstanding in part II, item 4.c,
                                               cannot provide aggregate individual      column B.
column B, and count this loan as
                                               borrower data without undue cost to
one loan for purposes of part II, item                                                  (10) The bank has granted a
                                               the reporting institution. Therefore,
4.c, column A.                                                                          $150,000 line of credit to a farmer
                                               the borrower’s two loans would be
                                                                                        that is not secured by real estate.
(8) The bank has a “Loan secured               treated as separate loans for
                                                                                        The farmer has received advances
by farmland (including farm                    purposes of Schedule RC-C, part II.
                                                                                        twice under this line of credit and,
residential and other improvements)”           Based on its $260,000 original
                                                                                        rather than having signed a single
which has a carrying value on the              amount, the first lien loan would be
                                                                                        note for the entire $150,000 amount
June 30 report date of $225,000.               considered a “loan to a small farm”
                                                                                        of the line of credit, has signed
The bank made this loan to the                 and would be reported in Schedule
                                                                                        separate notes for each advance.
borrower in the original amount of             RC-C, part II. Because the original
                                                                                        One note is in the original amount of
$260,000 and the loan is secured by            amount of the loan falls within the
                                                                                        $30,000 and the other is in the
a first lien on the borrower’s                 more than $250,000 through
                                                                                        original amount of $50,000. The
farmland. The bank has a second                $500,000 range, the bank would
                                                                                        carrying values of the two notes on
“Loan secured by farmland” to this             report the $225,000 amount
                                                                                        the June 30 report date are the
same borrower and it is secured by             currently outstanding in part II, item
                                                                                        same as their original amounts and
a second lien on the borrower’s                7.c, column B, and count this loan
                                                                                        these amounts are included in
property. This second lien loan has a          as one loan for purposes of part II,
                                                                                        Schedule RC-C, part I, item 3. For
carrying value of $50,000 and the              item 7.c, column A. Since the
                                                                                        loans drawn down under lines of
original amount of the loan is the             second lien loan is being handled
                                                                                        credit, the original amount of the
same as its carrying value. The                separately and its original amount is
                                                                                        loan is the size of the line of credit
carrying values of both loans (the             $50,000, it would also be
                                                                                        when it was most recently approved,
$225,000 first lien loan and the               considered a “loan to a small farm”
                                                                                        extended, or renewed prior to the
$50,000 second lien loan) are                  and would be reported in Schedule
                                                                                        report date. In this case, the line of
included in Schedule RC-C, part I,             RC-C, part II. Because the original
                                                                                        credit was most recently approved
item 1.b.                                      amount of this loan is less than
                                                                                        for $150,000.
                                               $100,000, the bank would report the
Case I: The bank’s loan system can
                                               $50,000 amount currently                 Case I: The bank’s loan system can
provide aggregate individual
                                               outstanding in part II, item 7.a,        provide aggregate individual
borrower data without undue cost to
                                               column B, and count this loan as         borrower data for multiple advances
the reporting institution. The loan
                                                                                        under lines of credit without undue
system indicates that this borrower’s


A Guide to CRA Data Collection and Reporting                                                                               56
                                               Appendix B—Schedule RC-C, Part II. Loans to Small Businesses and Small Farms




cost to the reporting institution.             the line of credit was most recently    to the farmer under the line of credit
Thus, even though a separate note              approved for $150,000, this             as one loan for purposes of part II,
was signed each time the farmer                $150,000 original amount for the line   item 8.b, column A.
borrowed under the line of credit, the         of credit would be considered a “loan
                                                                                       Case II: The bank’s loan system
loan system combines all information           to a small farm” that would be
                                                                                       cannot provide aggregate individual
about the farmer’s separate                    reported in Schedule RC-C, part II.
                                                                                       borrower data for lines of credit
borrowings under the line of credit.           Therefore, the original amount of the
                                                                                       without undue cost to the reporting
Therefore, the loan system indicates           line of credit falls within the more
                                                                                       institution. Therefore, the farmer’s
that the farmer has a line of credit for       than $100,000 through $250,000
                                                                                       two notes under the line of credit
$150,000 and that the amount                   range and the bank would report the
                                                                                       would be treated as separate loans
currently outstanding under the line           $80,000 combined total of the
                                                                                       for purposes of Schedule RC-C, part
of credit for the combined carrying            amounts currently outstanding for
                                                                                       II. The original amount of the line of
values of the two borrowings under             the two notes in part II, item 8.b,
                                                                                       credit is $150,000 and each of the
the line of credit is $80,000. Because         column B, and count these two notes
                                                                                       two notes would be considered a
                                                                                       “loan to a small farm” that would be
                                                                                       reported in Schedule RC-C, part II.
                                                                                       Because each of the two notes
                                                                                       indicates that it is part of a $150,000
                                                                                       line of credit and the $150,000
                                                                                       original amount of the line of credit
                                                                                       falls within the more than $100,000
                                                                                       through $250,000 range, the bank
                                                                                       would report both the $30,000 and
                                                                                       $50,000 amounts currently
                                                                                       outstanding in part II, item 8.b,
                                                                                       column B, and count these as two
                                                                                       loans for purposes of part II, item
                                                                                       8.b, column A.

                                                                                       (11) The bank has one other “Loan
                                                                                       to finance agricultural production
                                                                                       and other loans to a farmer” which
                                                                                       has a carrying value on the June 30
                                                                                       report date of $75,000 and this
                                                                                       amount is included in Schedule RC-
                                                                                       C, part I, item 3. The bank made this
                                                                                       loan to the borrower in the original
                                                                                       amount of $100,000, so it would be
                                                                                       considered a “loan to a small farm”
                                                                                       and would be reported in Schedule
                                                                                       RC-C, part II. Because the original
                                                                                       amount of the loan is exactly
                                                                                       $100,000 which is the upper end of
                                                                                       the $100,000 or less range, the
                                                                                       bank would report the $75,000
                                                                                       amount currently outstanding in part
                                                                                       II, item 8.a, column B.




A Guide to CRA Data Collection and Reporting                                                                               57
                                                                  Appendix B—Schedule RC-C, Part II. Loans to Small Businesses and Small Farms

                                                                                                                                                                  FFIEC 031
                                                                                                                                                                  Page RC-8a


                                                                                                                                                                       18a
    Schedule RC-C—Continued
    Part II. Loans to Small Businesses and Small Farms

    Schedule RC-C, Part II is to be reported only with the June Report of Condition.

    Report the number and amount currently outstanding as of June 30 of business loans with “original amounts” of $1,000,000 or less and
    farm loans with “original amounts” of $500,000 or less. The following guidelines should be used to determine the “original amount” of a
    loan: (1) For loans drawn down under lines of credit or loan commitments, the “original amount” of the loan is the size of the line of credit
    or loan commitment when the line of credit or loan commitment was most recently approved, extended, or renewed prior to the report
    date. However, if the amount currently outstanding as of the report date exceeds this size, the “original amount” is the amount currently
    outstanding on the report date. (2) For loan participations and syndications, the “original amount” of the loan participation or syndication is
    the entire amount of the credit originated by the lead lender. (3) For all other loans, the “original amount” is the total amount of the loan at
    origination or the amount currently outstanding as of the report date, whichever is larger.


    Loans to Small Businesses
    1. Indicate in the appropriate box at the right whether all or substantially all of the dollar
       volume of your bank’s “Loans secured by nonfarm nonresidential properties” in domestic
       offices reported in Schedule RC-C, part I, item 1.e, column B, and all or substantially all
       of the dollar volume of your bank’s “Commercial and industrial loans to U.S. addressees”
       in domestic offices reported in Schedule RC-C, part I, item 4.a, column B, have original                                                         C418      ◄
       amounts of $100,000 or less (If your bank has no loans outstanding in both of these two                                                 YES        NO
                                                                                                                                        RCON
       loan categories, place an “X” in the box marked “NO.”) .......................................................................   6999                      1.
    If YES, complete items 2.a and 2.b below, skip items 3 and 4, and go to item 5.
    If NO and your bank has loans outstanding in either loan category, skip items 2.a and 2.b, complete items 3 and 4 below, and go
    to item 5.
    If NO and your bank has no loans outstanding in both loan categories, skip items 2 through 4, and go to item 5.
    2. Report the total number of loans currently outstanding for each of the                                    Number of Loans
                                                                                                               RCON
       following Schedule RC-C, part I, loan categories:                                                       0000
                                                                                                               RCON
       a. “Loans secured by nonfarm nonresidential properties” in domestic                                     0000
                                                                                                               RCON
           offices reported in Schedule RC-C, part I, item 1.e, column B                                        0000
                                                                                                               RCON
           (Note: Item 1.e, column B, divided by the number of loans should                                    0000
                                                                                                               RCON
           NOT exceed $100,000.)............................................................................   5562                     2.a.
                                                                                                               RCON
       b. “Commercial and industrial loans to U.S. addressees” in domestic                                     0000
                                                                                                               RCON
           offices reported in Schedule RC-C, part I, item 4.a, column B                                        0000
                                                                                                               RCON
           (Note: Item 4.a, column B, divided by the number of loans should                                    0000
                                                                                                               RCON
           NOT exceed $100,000.)............................................................................   5563                     2.b.

                                                                                                                      (Column A)               (Column B)
                                                                                                                                                 Amount
                                                                                                                                                Currently
                                                   Dollar Amounts in Thousands                                   Number of Loans               Outstanding
    3. Number and amount currently outstanding of “Loans secured by                                                                             Bil   Mil Thou
                                                                                                               RCON                     RCON
       nonfarm nonresidential properties” in domestic offices reported in                                       0000                     0000
                                                                                                               RCON                     RCON
       Schedule RC-C, part I, item 1.e, column B (sum of items 3.a through 3.c                                 0000                     0000
                                                                                                               RCON                     RCON
       must be less than or equal to Schedule RC-C, part I, item 1.e, column B):                               0000                     0000
                                                                                                               RCON                     RCON
       a. With original amounts of $100,000 or less .............................................              5564                     5565                     3.a.
                                                                                                               RCON                     RCON
       b. With original amounts of more than $100,000 through $250,000 ..........                              5566                     5567                     3.b.
                                                                                                               RCON                     RCON
       c. With original amounts of more than $250,000 through $1,000,000 .......                               5568                     5569                     3.c.
                                                                                                               RCON                     RCON
    4. Number and amount currently outstanding of “Commercial and                                              0000                     0000
                                                                                                               RCON                     RCON
       industrial loans to U.S. addressees” in domestic offices reported in                                     0000                     0000
                                                                                                               RCON                     RCON
       Schedule RC-C, part I, item 4.a, column B (sum of items 4.a through 4.c                                 0000                     0000
                                                                                                               RCON                     RCON
       must be less than or equal to Schedule RC-C, part I, item 4.a, column B):                               0000                     0000
                                                                                                               RCON                     RCON
       a. With original amounts of $100,000 or less .............................................              5570                     5571                     4.a.
                                                                                                               RCON                     RCON
       b. With original amounts of more than $100,000 through $250,000 ..........                              5572                     5573                     4.b.
                                                                                                               RCON                     RCON
       c. With original amounts of more than $250,000 through $1,000,000 .......                               5574                     5575                     4.c.


A Guide to CRA Data Collection and Reporting                                                                                                                                   58
                                                                 Appendix B—Schedule RC-C, Part II. Loans to Small Businesses and Small Farms

                                                                                                                                                             FFIEC 031
                                                                                                                                                             Page RC-8b


   Legal Title of Bank                                                                                                                                            18b
   FDIC Certificate Number




   Schedule RC-C—Continued
   Part II. Continued

   Agricultural Loans to Small Farms
   5. Indicate in the appropriate box at the right whether all or substantially all of the dollar
      volume of your bank’s “Loans secured by farmland (including farm residential and other
      improvements)” in domestic offices reported in Schedule RC-C, part I, item 1.b, column B,
      and all or substantially all of the dollar volume of your bank’s “Loans to finance agricultural
      production and other loans to farmers” in domestic offices reported in Schedule RC-C, part I,
      item 3, column B, have original amounts of $100,000 or less (If your bank has no loans                                              YES          NO
                                                                                                                                  RCON
      outstanding in both of these two loan categories, place an “X” in the box marked “NO.”)...................                  6860                       5.

   If YES, complete items 6.a and 6.b below, and do not complete items 7 and 8.
   If NO and your bank has loans outstanding in either loan category, skip items 6.a and 6.b and complete items 7 and 8 below.
   If NO and your bank has no loans outstanding in both loan categories, do not complete items 6 through 8.

   6. Report the total number of loans currently outstanding for each of the                                    Number of Loans
                                                                                                              RCON
      following Schedule RC-C, part I, loan categories:                                                       0000
                                                                                                              RCON
      a. “Loans secured by farmland (including farm residential and other                                     0000
                                                                                                              RCON
          improvements)” in domestic offices reported in Schedule RC-C,                                        0000
                                                                                                              RCON
          part I, item 1.b, column B (Note: Item 1.b, column B, divided by                                    0000
                                                                                                              RCON
          the number of loans should NOT exceed $100,000.) ...............................                    5576                6.a.
                                                                                                              RCON
      b. “Loans to finance agricultural production and other loans to farmers” in                              0000
                                                                                                              RCON
          domestic offices reported in Schedule RC-C, part I, item 3, column B                                 0000
                                                                                                              RCON
          (Note: Item 3, column B, divided by the number of loans should                                      0000
                                                                                                              RCON
          NOT exceed $100,000.)............................................................................   5577                6.b.

                                                                                                                     (Column A)          (Column B)
                                                                                                                                           Amount
                                                                                                                                          Currently
                                                                  Dollar Amounts in Thousands                   Number of Loans          Outstanding
   7. Number and amount currently outstanding of “Loans secured by                                                                        Bil   Mil Thou
                                                                                                              RCON                RCON
      farmland (including farm residential and other improvements)” in                                        0000                0000
                                                                                                              RCON                RCON
      domestic offices reported in Schedule RC-C, part I, item 1.b,                                            0000                0000
                                                                                                              RCON                RCON
      column B (sum of items 7.a through 7.c must be less than or equal to                                    0000                0000
                                                                                                              RCON                RCON
      Schedule RC-C, part I, item 1.b, column B):                                                             0000                0000
                                                                                                              RCON                RCON
      a. With original amounts of $100,000 or less .............................................              5578                5579                      7.a.
                                                                                                              RCON                RCON
      b. With original amounts of more than $100,000 through $250,000 ..........                              5580                5581                      7.b.
                                                                                                              RCON                RCON
      c. With original amounts of more than $250,000 through $500,000 ..........                              5582                5583                      7.c.
                                                                                                              RCON                RCON
   8. Number and amount currently outstanding of “Loans to finance                                             0000                0000
                                                                                                              RCON                RCON
      agricultural production and other loans to farmers” in domestic offices                                  0000                0000
                                                                                                              RCON                RCON
      reported in Schedule RC-C, part I, item 3, column B (sum of                                             0000                0000
                                                                                                              RCON                RCON
      items 8.a through 8.c must be less than or equal to Schedule RC-C,                                      0000                0000
                                                                                                              RCON                RCON
      part I, item 3, column B):                                                                              0000                0000
                                                                                                              RCON                RCON
      a. With original amounts of $100,000 or less .............................................              5584                5585                      8.a.
                                                                                                              RCON                RCON
      b. With original amounts of more than $100,000 through $250,000 ..........                              5586                5587                      8.b.
                                                                                                              RCON                RCON
      c. With original amounts of more than $250,000 through $500,000 ..........                              5588                5589                      8.c.




A Guide to CRA Data Collection and Reporting                                                                                                                            59
Appendix C—                                    Loans                                      3. For all other loans, the “original
                                                                                             amount” is the total amount of the
Thrift Financial                               to Small Businesses                           loan at origination or the amount
Report                                         and Small Farms                               currently outstanding as of the
Instruction                                    The following data is to be
                                                                                             report date, whichever is larger.

Manual                                         completed for the savings                  The “amount outstanding” is the
                                               association and its consolidated
and Form                                       subsidiaries annually at June 30 to
                                                                                          amount reported on Schedule SC as
                                                                                          of the report date and should be
                                               comply with Section 122 of the FDIC        reported net of loans in process,
Schedule SB—
                                               Improvement Act.                           specific valuation allowances, and
Consolidated Small Business Loans
                                               This schedule will not be completed        yield adjustments (to the extent
March 1998                                                                                possible).
                                               if (a) the reporting association and its
                                               consolidated subsidiaries have no
                                               loans reported on SC260, 300, 303,         Report the actual number of loans.
                                               or 306; or (b) the only business loans     Do not round to the nearest
                                               of the reporting association and its       thousand.
                                               consolidated subsidiaries have
                                                                                          Do not include loans to subsidiaries
                                               “original amounts” (as defined below)
                                               in excess of $1 million and/or the         eliminated in consolidation.
                                               only farm loans have “original
                                                                                          Except as noted below for
                                               amounts” (as defined below) in
                                                                                          “corporate” or “business” credit card
                                               excess of $500 thousand.
                                                                                          programs, when determining
                                               In reporting the number and amount         “original amounts” and reporting the
                                               currently outstanding of business          number and amount currently
                                               loans with “original amounts” of $1        outstanding for a category of loans
                                               million or less and farm loans with        in this schedule, multiple loans to
                                               “original amounts” of $500 thousand        one borrower should be combined
                                               or less, the following guidelines          and reported on an aggregate
                                               should be used:                            basis rather than as separate
                                                                                          individual loans, to the extent that
                                               1. For loans drawn down under
                                                                                          the loan systems in which the
                                                  lines of credit or loan commit-
                                                                                          reported data are maintained can
                                                  ments, the “original amount” of
                                                                                          provide aggregate individual
                                                  the loan is the amount when the
                                                                                          borrower data without undue cost to
                                                  line of credit or loan commitment
                                                                                          the association. However, if the
                                                  was most recently approved,
                                                                                          burden of such aggregation would
                                                  extended, or renewed prior to the
                                                                                          be excessive, the association may
                                                  report date. However, if the
                                                                                          report multiple loans to one
                                                  amount currently outstanding as
                                                                                          borrower as separate indvidual
                                                  of the report date exceeds this
                                                                                          loans.
                                                  size, the “original amount” is the
                                                  amount currently outstanding.
                                                                                          An association that offers
                                               2. For loan participations and
                                                                                          “corporate” or “business” credit card
                                                  syndications, the “original
                                                                                          programs under which credit cards
                                                  amount” of the loan participation
                                                                                          are issued to one or more of a
                                                  or syndication is the entire
                                                                                          company’s employees for business-
                                                  amount of the credit originated by
                                                                                          related use should treat each
                                                  the lead lender.
                                                                                          company’s entire credit card


A Guide to CRA Data Collection and Reporting                                                                                 60
                                                               Appendix C—Thrift Financial Report Instruction Manual and Form




program as a single extension of               SB100:                                    loans have “original amounts” (as
credit. The credit limits for all of the       Does the reporting association            described above) of $100 thousand
individual credit cards issued to the          have any loans secured primarily          or less, indicate “yes” and complete
company’s employees should be                  by farms reported on SC260 or             the following lines, 200 and 210,
totaled, and this total should be              any loans to finance agricultural         only. Otherwise, indicate “no” and
treated as the “original amount” of            production or other loans to              complete lines 300 through 450.
the “corporate” or “business” credit           farmers reported on SC300, 303,
card program established for this              or 306?                                   SB200:
company. The company’s program                 This question should be answered          Number of loans reported on line
should be reported as one loan and             “Yes” only if the agricultural and farm   SC260
the amount currently outstanding               loans had original amounts, as            Report the actual number (do not
would be the sum of the credit card            defined above, of $500 thousand or        round to thousands) of loans
balances as of the June 30 report              less.                                     reported on SC260 (Permanent
date on each of the individual credit                                                    Mortgages on Nonresidential
                                               If yes, complete lines 300 through
cards issued to the company’s                                                            Property). This line is only
                                               650 (do not complete 110 through
employees. However, when                                                                 completed if line 100 is “no” and 110
                                               210). If no, complete the following
aggregated data for each individual            item, 110.                                is “yes”; i.e., all of the loans reported
company is a “corporate” or                                                              on SC260, 300, 303, and 306 are
“business” credit card program are             SB110:                                    nonfarm loans and substantially all
not readily determinable from the              Are all or substantially all of the       of the “original amounts” of the loans
association’s credit card records, the         association’s commercial loans            are $100 thousand or less.
association should develop                     (Schedule SC lines 260, 300, 303,
reasonable estimates of the number             and 306) loans with original              SB210:
of “corporate” or “business” credit            amounts of $100,000 or less?              Number of loans reported on
card programs in existence as of the                                                     SC300, 303, and 306
                                               If (a) the average size of the amount
report date, the “original amounts” of
                                               currently outstanding for your            Report the actual number (do not
these programs, and the “amounts
                                               association’s commercial, nonfarm         round to thousands) of loans
currently outstanding” of these
                                               loans reported on Schedule SC             reported on SC300, 303, and 306
programs and should then report
                                               lines 260, 300, 303, and 306 is $100      (Nonmortgage Commercial Loans).
information about these programs
                                               thousand or less and (b) your             This line is only completed if line
on the basis of its reasonable
                                               lending officers’ knowledge of your       100 is “no” and 110 is “yes”; i.e., all
estimates. In no case should
                                               association’s loans or other relevant     of the loans reported on SC260,
individual credit cards issued to a
                                               information pertaining to commercial      300, 303, and 306 are nonfarm
company’s employees under a
                                               loans indicates that all or               loans and substantially all of the
“corporate” or “business” credit card
                                               substantially all of the dollar volume    “original amounts” of the loans are
program be reported as separate
                                               of your association’s commercial          $100 thousand or less.
individual loans to small businesses.




Number and Amount Outstanding of Permanent Mortgage Loans
Secured by Nonfarm, Nonresidential Properties
Reported on SC260
Number of Loans with Original Amounts of:                            Outstanding Balance with Original Amounts of:

SB300: $100,000 or less                                              SB310: $100,000 or less
SB320: Greater than $100,000 thru $250,000                           SB330: Greater than $100,000 thru $250,000
SB340: Greater than $250,000 thru $1 million                         SB350: Greater than $250,000 thru $1 million


A Guide to CRA Data Collection and Reporting                                                                                   61
                                               Appendix C—Thrift Financial Report Instruction Manual and Form




Number and Amount Outstanding of Nonmortgage, Nonagricultural Commercial Loans
Reported on SC300, 303, and 306
Number of Loans with Original Amounts of:           Outstanding Balance with Original Amounts of:

SB400: $100,000 or less                             SB410: $100,000 or less
SB420: Greater than $100,000 thru $250,000          SB430: Greater than $100,000 thru $250,000
SB440: Greater than $250,000 thru $1 million        SB450: Greater than $250,000 thru $1 million


Number and Amount Outstanding of Loans Secured Primarily by Farms
Reported on SC260
Number of Loans with Original Amounts of:           Outstanding Balance with Original Amounts of:

SB500: $100,000 or less                             SB510: $100,000 or less
SB520: Greater than $100,000 thru $250,000          SB530: Greater than $100,000 thru $250,000
SB540: Greater than $250,000 thru $500,000          SB550: Greater than $250,000 thru $500,000


Number and Amount Outstanding of Nonmortgage, Commercial Loans
to Finance Agricultural Production and Other Nonmortgage Commercial Loans to Farmers
Reported on SC300, 303, and 306
Number of Loans with Original Amounts of:           Outstanding Balance with Original Amounts of:

SB600: $100,000 or less                             SB610: $100,000 or less
SB620: Greater than $100,000 thru $250,000          SB630: Greater than $100,000 thru $250,000
SB640: Greater than $250,000 thru $500,000          SB650: Greater than $250,000 thru $500,000




A Guide to CRA Data Collection and Reporting                                                              62
                                                                                                                              Appendix C—Thrift Financial Report Instruction Manual and Form



   For informational purposes only:
   not for data entry                                                                                                                    Office of Thrift Supervision
   Association __________________________                                                                                                2000 Thrift Financial Report
   Docket Number _______________________                                                                 Schedule SB — Consolidated Small Business Loans
   Report Date _____________________ , 2000



   The following data is to be completed annually at June 30 to comply with Section 122                                                                                                                                   Annually
    of the FDIC Improvement Act:

   Loans to Small Businesses and Small Farms:
    Does the reporting association have any loans secured primarily by farms reported on
     SC260 or any loans to finance agricultural production or other loans to farmers                                                                                       Line                                      Yes           No
     reported on SC300, 303, or 306? .................................................................................................................................... SB100


     If 100 is yes, complete lines 300 through 650 (Do not complete 110 thru 210). If no,
       complete the following item, 110.

     Are all or substantially all of the association’s commercial loans (Schedule SC lines 260,                                                                                                                      Yes           No
      300, 303, and 306) loans with original amounts of $100,000 or less?..................................................... SB110

     If 110 is yes, complete the following lines, 200 and 210, only. If no, complete lines 300
     through 450, only.

     Number of loans reported on lines:                                                                                                                                                                             Actual Number
      SC260................................................................................................................................................................................................ SB200
      SC300, 303, and 306 ............................................................................................................................................................... SB210
                                                                                                                                                                                                                     Outstanding
   Number and amount outstanding of permanent mortgage                                                                                                      Number of Loans                                           Balance
    loans secured by nonfarm, nonresidential properties
                                                                                                                                                                                                      (Report in Thousands of Dollars)
    reported on SC260:
    With original amounts of:                                                                                                                                      Actual Number                                    Bil      Mil     Thou
      $100,000 or less .......................................................................................................             SB300                                                     SB310
      Greater than $100,000 thru $250,000 ........................................................                                         SB320                                                     SB330
      Greater than $250,000 thru $1 million ........................................................                                       SB340                                                     SB350


   Number and amount outstanding of nonmortgage,
    nonagricultural commercial loans reported on SC300, 303,
    and 306:
    With original amounts of:
     $100,000 or less .......................................................................................................              SB400                                                     SB410
     Greater than $100,000 thru $250,000 ........................................................                                          SB420                                                     SB430
     Greater than $250,000 thru $1 million ........................................................                                        SB440                                                     SB450


   Number and amount outstanding of loans secured primarily
    by farms reported on SC260:
    With original amounts of:
     $100,000 or less .......................................................................................................              SB500                                                     SB510
     Greater than $100,000 thru $250,000 ........................................................                                          SB520                                                     SB530
     Greater than $250,000 thru $500,000 ........................................................                                          SB540                                                     SB550


   Number and amount outstanding of nonmortgage,
    commercial loans to finance agricultural production and
    other nonmortgage commercial loans to farmers reported on
    SC300, 303, and 306:
    With original amounts of:
     $100,000 or less .......................................................................................................              SB600                                                     SB610
     Greater than $100,000 thru $250,000 ........................................................                                          SB620                                                     SB630
     Greater than $250,000 thru $500,000 ........................................................                                          SB640                                                     SB650




A Guide to CRA Data Collection and Reporting                                                                                                                                                                                                63
Appendix D—                                    For census information, contact a      Kansas City
                                               regional office of the Bureau of the
U.S. Census                                    Census as indicated below. The list
                                                                                      (913) 551-6728
                                                                                      Arkansas, Iowa, Kansas, Minnesota,
Bureau                                         shows the states covered by each
                                                                                      Missouri, Oklahoma
Regional Offices                               regional office.
                                                                                      Los Angeles
                                               Atlanta
                                                                                      (818) 904-6393
                                               (404) 730-3832
                                                                                      Southern California (Fresno,
                                               Alabama, Florida, Georgia              Imperial, Inyo, Kern, Kings, Los
   To place an order for any                                                          Angeles, Madera, Mariposa, Merced,
   census product, contact:                    Boston                                 Monterey, Orange, Riverside, San
                                               (617) 424-0500                         Bernardino, San Diego, San Benito,
   Customer Services Center
                                                                                      San Luis Obispo, Santa Barbara,
   Bureau of the Census                        Connecticut, Massachusetts, Maine,     Tulare, and Ventura counties),
   Washington, DC 20233                        New Hampshire, New York                Hawaii
   (301) 457-4100                              (excluding New York City and
                                               Nassau, Rockland, Suffolk, and         New York
   For the FIPS PUB 8-5,                       Westchester counties), Puerto Rico,
                                                                                      (212) 264-3860
   containing information about                Rhode Island, Vermont
   MSAs, contact:                                                                     New Jersey (including only Bergen,
                                                                                      Essex, Hudson, Morris, Middlesex,
   National Technical Information              Charlotte
                                                                                      Passaic, Somerset, Sussex, Union,
     Service                                   (704) 344-6142                         and Warren counties), New York
   U.S. Department of Commerce
                                               Kentucky, North Carolina, South        (including only New York City and
   5285 Port Royal Road
                                               Carolina, Tennessee, Virginia          Nassau, Rockland, Suffolk, and
   Springfield, VA 22161
                                                                                      Westchester counties)
   (703) 487-4650
                                               Chicago
                                                                                      Philadelphia
                                               (708) 562-1350
                                                                                      (215) 656-7550
                                               Illinois, Indiana, Wisconsin
                                                                                      District of Columbia, Delaware,
                                                                                      Maryland, New Jersey (all counties
                                               Dallas                                 except those listed under New York),
                                               (214) 640-4400                         Pennsylvania
                                               Louisiana, Mississippi, Texas
                                                                                      Seattle

                                               Denver                                 (206) 553-5837
                                               (303) 969-6750                         Alaska, Northern California (all
                                                                                      counties except those listed under
                                               Arizona, Colorado, Montana,
                                                                                      Los Angeles), Idaho, Oregon,
                                               Nebraska, Nevada, New Mexico,
                                                                                      Washington
                                               North Dakota, South Dakota, Utah,
                                               Wyoming

                                               Detroit
                                               (313) 259-1158
                                               Michigan, Ohio, West Virginia




A Guide to CRA Data Collection and Reporting                                                                               64

				
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Description: In response to numerous requests and inquiries, the Federal Financial Institutions Examination Council (FFIEC) has developed this guide for Community Reinvestment Act (CRA) data reporters. Data collection, maintenance, and reporting are important aspects of large-institution evaluations under CRA