§__.25(e) Wholesale or Limited Purpose Institution Investment in Nationwide Fund
§__.25(e) – 1 Q: How do examiners evaluate a wholesale or limited purpose institution’s qualified investment in a fund that invested in projects nationwide and which has a primary purpose of community development, as this is defined in the regulations? A1. If examiners find that a wholesale or limited purpose institution has adequately addressed the needs of its…
§__.25(f) Wholesale or Limited Purpose Institution Performance Rating
§__.25(f) – 1 Q: Must a wholesale or limited purpose institution engage in all three categories of community development activities (lending, investment, and service) to perform well under the community development test? A1. No, a wholesale or limited purpose institution may perform well under the community development test by engaging in one or more of these activities….
§__.26 Small Institution Performance Standards for Affiliate Activities
§__.26 – 1 Q: When evaluating a small or intermediate small institution’s performance, will examiners consider, at the institution’s request, retail and community development loans originated or purchased by affiliates, qualified investments made by affiliates, or community development services provided by affiliates? A1. Yes. However, a small institution that elects to have examiners consider affiliate activities must…
§__.26(a)(2) Intermediate Small Institution Determination
§__.26(a)(2) – 1 Q: When is an institution examined as an intermediate small institution? A1. When a small institution has met the intermediate small institution asset threshold delineated in 12 CFR .12(u)(1) for two consecutive calendar year-ends, the institution may be examined under the intermediate small institution examination procedures. The regulation does not specify an additional lag period…
§__.26(b) Small Institution Lending-Related Activities
§__.26(b) – 1 Q: May examiners consider, under one or more of the performance criteria of the small institution performance standards, lending-related activities, such as community development loans and lending-related qualified investments, when evaluating a small institution? A1. Yes. Examiners can consider “lending-related activities,” including community development loans and lending-related qualified investments, when evaluating the first four…
§__.26(b) Appropriate Small Institution Lending-Related Activities
§__.26(b) – 2 Q: What is meant by “as appropriate” when referring to the fact that lending-related activities will be considered, “as appropriate,” under the various small institutions performance criteria? A2. “As appropriate” means that lending-related activities will be considered when it is necessary to determine whether an institution meets or exceeds the standards for a satisfactory…
§__.26(b) Small Institution Purchases of Consortium Loans
§__.26(b) – 3 Q: When evaluating a small institution’s lending performance, will examiners consider, at the institution’s request, community development loans originated or purchased by a consortium in which the institution participates or by a third party in which the institution has invested? A3. Yes. However, a small institution that elects to have examiners consider community development…
§__.26(b) Small Institution Loan Originations and Purchases
§__.26(b) – 4 Q: Under the small institution lending test performance standards, will examiners consider both loan originations and purchases? A4. Yes, consistent with the other assessment methods in the regulation, examiners will consider both loans originated and purchased by the institution. Likewise, examiners may consider any other loan data the small institution chooses to provide, including…
§__.26(b) Small Institution Qualified Investments
§__.26(b) – 5 Q: Under the small institution lending test performance standards, how will qualified investments be considered for purposes of determining whether a small institution receives a satisfactory CRA rating? A5. The small institution lending test performance standards focus on lending and other lending-related activities. Therefore, examiners will consider only lending- related qualified investments for the…
§__.26(b)(1) Loan-to-Deposit Ratio Calculation
§__.26(b)(1) – 1 Q: How is the loan-to-deposit ratio calculated? A1. A small institution’s loan-to-deposit ratio is calculated in the same manner that the Uniform Bank Performance Report (UBPR) determines the ratio. It is calculated by dividing the institution’s net loans and leases by its total deposits. The ratio is found in the Liquidity and Investment Portfolio section…