(a) Community Development Services Test.
(1) In general. Pursuant to section 228.21, the Community Development Services Test
evaluates a bank’s record of helping to meet the community development
services needs of its entire community.
(2) Allocation. The Board considers information provided by the bank and may consider
publicly available information and information provided by government
or community sources that demonstrates that a community development
service benefits or serves a facility-based assessment area, state,
or multistate MSA, or the nationwide area.
(b) Facility-based assessment area evaluation. The Board evaluates a bank’s community development services
performance in a facility-based assessment area and assigns a conclusion
for a facility-based assessment area, by considering one or more of
the following:
(1) The number of community development services attributable to
each type of community development described in section 228.13(b)
through (l);
(2) The capacities in which a bank’s or its affiliate’s
board members or employees serve (e.g., board member of a nonprofit
organization, technical assistance, financial education, general volunteer);
(3) Total hours of community
development services performed by the bank;
(4) Any other evidence demonstrating that
the bank’s community development services are responsive to
community development needs, such as the number of low- and moderate-income
individuals that are participants, or number of organizations served;
and
(5) The impact and
responsiveness of the bank’s community development services
that benefit or serve the facility-based assessment area, as provided
in section 228.15.
(c) State, multistate MSA, or nationwide area evaluation. The Board evaluates a bank’s community development services
performance in a state or multistate MSA, as applicable, or nationwide
area, and assigns a conclusion for those areas, based on the following
two components:
(1) Component one—Weighted average
of facility-based assessment area performance in a state, multistate
MSA, or nationwide area. The Board considers the weighted average
of the performance scores corresponding to the bank’s Community
Development Services Test conclusions for its facility-based assessment
areas within a state, multistate MSA, or the institution pursuant
to section IV of appendix B to this part.
(2) Component
two—Evaluation of community development services outside of
facility-based assessment areas. The Board may adjust upwards
the conclusion based on the weighted average derived under paragraph
(c)(1) of this section and an evaluation of the bank’s community
development services performed outside of its facility-based assessment
areas pursuant to section 228.19, which may consider one or more of
the factors in paragraphs (b)(1) through (5) of this section.
(d) Community Development
Services Test performance conclusions and ratings.
(1) Conclusions. Pursuant to section 228.28
and appendix C to this part, the Board assigns conclusions for a bank’s
Community Development Services Test performance in each facility-based
assessment area, each state or multistate MSA, as applicable, and
for the institution. In assigning conclusions under this performance
test, the Board may consider performance context information as provided
in section 228.21(d).
(2) Ratings. Pursuant to section 228.28
and appendix D to this part, the Board incorporates a bank’s
Community Development Services Test conclusions into its state or
multistate MSA ratings, as applicable, and its institution rating.
