§25.24. Community development financing test. — Inbound Citations

(a) Under the Community Development Financing Test in § 25.24, the Community Development Services Test in § 25.25, and the Community Development Financing Test for Limited Purpose Banks and Savings Associations in § 25.26, the appropriate Federal banking agency evaluates the extent to which a bank's or savings association's community development loans, community development investments, and community development services are impactful and responsive in meeting community development needs in each facility-based assessment area and, as applicable, each State, multistate MSA, and the nationwide area. The appropriate Federal banking agency evaluates the impact and responsiveness of a bank's or savings association's community development loans, community development investments, or community development services based on paragraph (b) of this section, and may take into account performance context information pursuant to § 25.21(d).

(1) To evaluate the performance of a large bank or savings association, the appropriate Federal banking agency applies the Retail Lending Test in § 25.22, the Retail Services and Products Test in § 25.23, the Community Development Financing Test in § 25.24, and the Community Development Services Test in § 25.25.

(A) A large bank or savings association must include the Community Development Financing Test in § 25.24 in its plan.

(i) For each of the applicable performance tests pursuant to §§ 25.22 through 25.26 and 25.30, the appropriate Federal banking agency assigns conclusions and associated test performance scores of “Outstanding,” “High Satisfactory,” “Low Satisfactory,” “Needs to Improve,” or “Substantial Noncompliance” for the performance of a bank or savings association in each State and multistate MSA, as applicable pursuant to paragraph (c) of this section, and for the institution.

(2) The appropriate Federal banking agency may adjust a small bank or savings association rating from “Satisfactory” to “Outstanding” at the institution level where the bank or savings association requests and receives additional consideration for activities that would qualify pursuant to the Retail Services and Products Test in § 25.23, the Community Development Financing Test in § 25.24, or the Community Development Services Test in § 25.25.

(1) The appropriate Federal banking agency evaluates an intermediate bank's or savings association's record of helping to meet the credit needs of its entire community pursuant to the Retail Lending Test in § 25.22 and the Intermediate Bank and Savings Association Community Development Test as provided in paragraph (a)(2) of this section, unless an intermediate bank or savings association opts to be evaluated pursuant to the Community Development Financing Test in § 25.24.

(B) An intermediate bank or savings association that opts to be evaluated under the Community Development Financing Test in § 25.24 must collect and maintain in the format used by the bank or savings association in the normal course of business, until the completion of the bank's or savings association's next CRA examination in which the data are evaluated, the data listed in paragraph (a)(5)(ii) of this section for community development loans and community development investments originated, purchased, refinanced, renewed, or modified by the bank or savings association during the evaluation period.

(i) On January 1, 2026, §§ 25.12 through 25.30, 25.42(a), 25.43, and 25.44; the data collection and maintenance requirements in § 25.42(c) through (f); and appendices A through F to this part become applicable.

(iii) Delivering retail banking services, as described in § 25.24(d) of appendix G to 12 CFR part 25;

(iv) Providing community development services, as described in § 25.24(e) of appendix G to 12 CFR part 25;

(2) The appropriate Federal banking agency considers a bank's or savings association's community development financing performance in the nationwide area using the metrics and benchmarks in paragraphs (e)(2)(i) through (iv) of this section and a review of the impact and responsiveness of the bank's or savings association's community development loans and community development investments in paragraph (e)(2)(v) of this section.

(i) The Bank Nationwide Community Development Financing Metric measures the dollar volume of the bank's or savings association's community development loans and community development investments that benefit or serve all or part of the nationwide area compared to deposits in the bank or savings association located in the nationwide area, calculated pursuant to paragraph II.j of appendix B to this part.

(ii) The appropriate Federal banking agency compares the Bank Nationwide Community Development Financing Metric to the following benchmarks:

(A) The Nationwide Community Development Financing Benchmark measures the dollar volume of community development loans and community development investments that benefit or serve all or part of the nationwide area for all large depository institutions compared to the deposits located in the nationwide area for all large depository institutions, calculated pursuant to paragraph II.k of appendix B to this part.

(B) The Nationwide Weighted Assessment Area Community Development Financing Benchmark is the weighted average of the bank's or savings association's Assessment Area Community Development Financing Benchmarks for each facility-based assessment area within the nationwide area, calculated pursuant to paragraph II.l of appendix B to this part.

(iii) For a large bank or savings association that had assets greater than $10 billion as of December 31 in both of the prior two calendar years, the Bank Nationwide Community Development Investment Metric measures the dollar volume of the bank's or savings association's community development investments that benefit or serve all or part of the nationwide area, excluding mortgage-backed securities, compared to the deposits in the bank or savings association located in the nationwide area, calculated pursuant to paragraph II.m of appendix B to this part.

(A) For a large bank or savings association that had assets greater than $10 billion as of December 31 in both of the prior two calendar years, the appropriate Federal banking agency compares the Bank Nationwide Community Development Investment Metric to the Nationwide Community Development Investment Benchmark. This comparison may only contribute positively to the bank's or savings association's Community Development Financing Test conclusion for the institution.

(B) The Nationwide Community Development Investment Benchmark measures the dollar volume of community development investments that benefit or serve all or part of the nationwide area, excluding mortgage-backed securities, of all large depository institutions that had assets greater than $10 billion as of December 31 in both of the prior two calendar years compared to deposits located in the nationwide area for those depository institutions, calculated pursuant to paragraph II.n of appendix B to this part.

(v) The appropriate Federal banking agency reviews the impact and responsiveness of the bank's or savings association's community development loans and community development investments that benefit or serve the nationwide area, as provided in § 25.15.

(2) The appropriate Federal banking agency considers a bank's or savings association's community development financing performance in the nationwide area using the metrics and benchmarks in paragraphs (e)(2)(i) through (iv) of this section and a review of the impact and responsiveness of the bank's or savings association's community development loans and community development investments in paragraph (e)(2)(v) of this section.

(i) The Bank Nationwide Community Development Financing Metric measures the dollar volume of the bank's or savings association's community development loans and community development investments that benefit or serve all or part of the nationwide area compared to deposits in the bank or savings association located in the nationwide area, calculated pursuant to paragraph II.j of appendix B to this part.

(ii) The appropriate Federal banking agency compares the Bank Nationwide Community Development Financing Metric to the following benchmarks:

(A) The Nationwide Community Development Financing Benchmark measures the dollar volume of community development loans and community development investments that benefit or serve all or part of the nationwide area for all large depository institutions compared to the deposits located in the nationwide area for all large depository institutions, calculated pursuant to paragraph II.k of appendix B to this part.

(B) The Nationwide Weighted Assessment Area Community Development Financing Benchmark is the weighted average of the bank's or savings association's Assessment Area Community Development Financing Benchmarks for each facility-based assessment area within the nationwide area, calculated pursuant to paragraph II.l of appendix B to this part.

(iii) For a large bank or savings association that had assets greater than $10 billion as of December 31 in both of the prior two calendar years, the Bank Nationwide Community Development Investment Metric measures the dollar volume of the bank's or savings association's community development investments that benefit or serve all or part of the nationwide area, excluding mortgage-backed securities, compared to the deposits in the bank or savings association located in the nationwide area, calculated pursuant to paragraph II.m of appendix B to this part.

(A) For a large bank or savings association that had assets greater than $10 billion as of December 31 in both of the prior two calendar years, the appropriate Federal banking agency compares the Bank Nationwide Community Development Investment Metric to the Nationwide Community Development Investment Benchmark. This comparison may only contribute positively to the bank's or savings association's Community Development Financing Test conclusion for the institution.

(B) The Nationwide Community Development Investment Benchmark measures the dollar volume of community development investments that benefit or serve all or part of the nationwide area, excluding mortgage-backed securities, of all large depository institutions that had assets greater than $10 billion as of December 31 in both of the prior two calendar years compared to deposits located in the nationwide area for those depository institutions, calculated pursuant to paragraph II.n of appendix B to this part.

(v) The appropriate Federal banking agency reviews the impact and responsiveness of the bank's or savings association's community development loans and community development investments that benefit or serve the nationwide area, as provided in § 25.15.

(2) The appropriate Federal banking agency considers a bank's or savings association's community development financing performance in the nationwide area using the metrics and benchmarks in paragraphs (e)(2)(i) through (iv) of this section and a review of the impact and responsiveness of the bank's or savings association's community development loans and community development investments in paragraph (e)(2)(v) of this section.

(i) The Bank Nationwide Community Development Financing Metric measures the dollar volume of the bank's or savings association's community development loans and community development investments that benefit or serve all or part of the nationwide area compared to deposits in the bank or savings association located in the nationwide area, calculated pursuant to paragraph II.j of appendix B to this part.

(ii) The appropriate Federal banking agency compares the Bank Nationwide Community Development Financing Metric to the following benchmarks:

(A) The Nationwide Community Development Financing Benchmark measures the dollar volume of community development loans and community development investments that benefit or serve all or part of the nationwide area for all large depository institutions compared to the deposits located in the nationwide area for all large depository institutions, calculated pursuant to paragraph II.k of appendix B to this part.

(B) The Nationwide Weighted Assessment Area Community Development Financing Benchmark is the weighted average of the bank's or savings association's Assessment Area Community Development Financing Benchmarks for each facility-based assessment area within the nationwide area, calculated pursuant to paragraph II.l of appendix B to this part.

(iii) For a large bank or savings association that had assets greater than $10 billion as of December 31 in both of the prior two calendar years, the Bank Nationwide Community Development Investment Metric measures the dollar volume of the bank's or savings association's community development investments that benefit or serve all or part of the nationwide area, excluding mortgage-backed securities, compared to the deposits in the bank or savings association located in the nationwide area, calculated pursuant to paragraph II.m of appendix B to this part.

(A) For a large bank or savings association that had assets greater than $10 billion as of December 31 in both of the prior two calendar years, the appropriate Federal banking agency compares the Bank Nationwide Community Development Investment Metric to the Nationwide Community Development Investment Benchmark. This comparison may only contribute positively to the bank's or savings association's Community Development Financing Test conclusion for the institution.

(B) The Nationwide Community Development Investment Benchmark measures the dollar volume of community development investments that benefit or serve all or part of the nationwide area, excluding mortgage-backed securities, of all large depository institutions that had assets greater than $10 billion as of December 31 in both of the prior two calendar years compared to deposits located in the nationwide area for those depository institutions, calculated pursuant to paragraph II.n of appendix B to this part.

(v) The appropriate Federal banking agency reviews the impact and responsiveness of the bank's or savings association's community development loans and community development investments that benefit or serve the nationwide area, as provided in § 25.15.

(2) The appropriate Federal banking agency considers a bank's or savings association's community development financing performance in the nationwide area using the metrics and benchmarks in paragraphs (e)(2)(i) through (iv) of this section and a review of the impact and responsiveness of the bank's or savings association's community development loans and community development investments in paragraph (e)(2)(v) of this section.

(i) The Bank Nationwide Community Development Financing Metric measures the dollar volume of the bank's or savings association's community development loans and community development investments that benefit or serve all or part of the nationwide area compared to deposits in the bank or savings association located in the nationwide area, calculated pursuant to paragraph II.j of appendix B to this part.

(ii) The appropriate Federal banking agency compares the Bank Nationwide Community Development Financing Metric to the following benchmarks:

(A) The Nationwide Community Development Financing Benchmark measures the dollar volume of community development loans and community development investments that benefit or serve all or part of the nationwide area for all large depository institutions compared to the deposits located in the nationwide area for all large depository institutions, calculated pursuant to paragraph II.k of appendix B to this part.

(B) The Nationwide Weighted Assessment Area Community Development Financing Benchmark is the weighted average of the bank's or savings association's Assessment Area Community Development Financing Benchmarks for each facility-based assessment area within the nationwide area, calculated pursuant to paragraph II.l of appendix B to this part.

(iii) For a large bank or savings association that had assets greater than $10 billion as of December 31 in both of the prior two calendar years, the Bank Nationwide Community Development Investment Metric measures the dollar volume of the bank's or savings association's community development investments that benefit or serve all or part of the nationwide area, excluding mortgage-backed securities, compared to the deposits in the bank or savings association located in the nationwide area, calculated pursuant to paragraph II.m of appendix B to this part.

(A) For a large bank or savings association that had assets greater than $10 billion as of December 31 in both of the prior two calendar years, the appropriate Federal banking agency compares the Bank Nationwide Community Development Investment Metric to the Nationwide Community Development Investment Benchmark. This comparison may only contribute positively to the bank's or savings association's Community Development Financing Test conclusion for the institution.

(B) The Nationwide Community Development Investment Benchmark measures the dollar volume of community development investments that benefit or serve all or part of the nationwide area, excluding mortgage-backed securities, of all large depository institutions that had assets greater than $10 billion as of December 31 in both of the prior two calendar years compared to deposits located in the nationwide area for those depository institutions, calculated pursuant to paragraph II.n of appendix B to this part.

(v) The appropriate Federal banking agency reviews the impact and responsiveness of the bank's or savings association's community development loans and community development investments that benefit or serve the nationwide area, as provided in § 25.15.