§__.22(b)(2) & (3) – 4
Q: When will examiners consider loans (other than community development loans) made outside an institution’s assessment area(s)?
A4. Consideration will be given for loans to low- and moderate-income persons and small business and farm loans outside of an institution’s assessment area(s), provided the institution has adequately addressed the needs of borrowers within its assessment area(s). The Agencies will apply this consideration not only to loans made by large retail institutions being evaluated under the lending test, but also to loans made by small and intermediate small institutions being evaluated under their respective performance standards. Loans to low- and moderate-income persons and small businesses and farms outside of an institution’s assessment area(s), however, will not compensate for poor lending performance within the institution’s assessment area(s).
Source: Interagency Questions & Answers Regarding Community Reinvestment | July 2016