Current through Register Vol. 46, No. 12, March 20, 2024
(a) Alternative
election. The Department will assess a banking institution's record of helping
to meet the credit needs of its assessment area(s) under a strategic plan if:
(1) the banking institution has submitted the
plan to the Department as provided for in this section;
(2) the Department has approved the
plan;
(3) the plan is in effect;
and
(4) the banking institution has
been operating under an approved plan for at least one year.
(b) Data reporting. The Banking
Department's approval of a plan does not affect the banking institution's
obligation, if any, to report other required data.
(c) Plans in general.
(1) Term. A plan may have a term of no more
than five years, and any multi-year plan must include annual interim measurable
goals under which the Department will evaluate the banking institution's
performance.
(2) Multiple
assessment areas. A banking institution with more than one assessment area may
prepare a single plan for all of its assessment areas or one or more plans for
one or more of its assessment areas.
(3) Treatment of affiliates. Affiliated
institutions may prepare a joint plan if the plan provides measurable goals for
each institution. Activities may be allocated among institutions at the
institutions' option, provided that the same activities are not considered for
more than one institution.
(d) Public participation in plan development.
Before submitting a plan to the Banking Department for approval, a banking
institution shall:
(1) informally seek
suggestions from members of the public in its assessment area(s) covered by the
plan while developing the plan;
(2)
once the banking institution has developed a plan, formally solicit public
comment on the plan for at least 30 days by publishing notice in at least one
newspaper of general circulation in each assessment area covered by the plan;
and
(3) during the period of formal
public comment, make copies of the plan available for review by the public at
no cost at all offices of the banking institution in any assessment area
covered by the plan and provide copies of the plan upon request for a
reasonable fee to cover copying and mailing, if applicable.
(e) Submission of plan. The
banking institution shall submit its plan to the Banking Department at least
three months prior to the proposed effective date of the plan. The banking
institution shall also submit with its plan a description of its informal
efforts to seek suggestions from members of the public, any written public
comment received, and, if the plan was revised in light of the comment
received, the initial plan as released for public comment.
(f) Plan content. The content of the plan
shall be as follows:
(1) Measurable goals.
(i) A banking institution shall specify in
its plan measurable goals for helping to meet the credit needs of each
assessment area covered by the plan, particularly the needs of low- and
moderate-income geographies, low and moderate-income individuals, and minority-
and women-owned businesses, through lending, investment, and services, as
appropriate.
(ii) A banking
institution shall address in its plan all three performance categories and,
unless the banking institution has been designated as a wholesale or limited
purpose banking institution, shall emphasize lending and lending-related
activities. Nevertheless, a different emphasis, including a focus on one or
more performance categories, may be appropriate if responsive to the
characteristics and credit needs of its assessment area(s), considering public
comment and the banking institution's capacity and constraints, product
offerings, and business strategy.
(2) Confidential information. A banking
institution may submit additional information to the Department on a
confidential basis, but the goals stated in the plan must be sufficiently
specific to enable the public and the Department to judge the merits of the
plan.
(3) Satisfactory and
outstanding goals. A banking institution shall specify in its plan measurable
goals that constitute "satisfactory" performance. A plan may specify measurable
goals that constitute "outstanding" performance. If a banking institution
submits, and the Department approves, both "satisfactory" and "outstanding"
performance goals, the Department will consider the banking institution
eligible for an "outstanding" performance rating.
(4) Election if satisfactory goals not
substantially met. A banking institution may elect in its plan that, if the
banking institution fails to meet substantially its plan goals for a
satisfactory rating, the Department will evaluate the banking institution's
performance under the lending, investment, and service tests, the community
development test, or the small banking institution performance standards, as
appropriate.
(g) Plan
approval. Approval of a plan shall be as follows:
(1) Timing. The Department will act upon a
plan within 60 calendar days after receipt of the complete plan and other
material required under subdivision (e) of this section. If the Department
fails to act within this time period, the plan shall be deemed approved unless
the Department extends the review period for good cause.
(2) Public participation. In evaluating the
plan's goals, the Department considers the public's involvement in formulating
the plan, written public comment on the plan, and any response by the banking
institution to public comment on the plan.
(3) Criteria for evaluating plan. The
Department evaluates a plan's measurable goals using the following criteria, as
appropriate:
(i) the extent and breadth of
lending or lending-related activities, including, as appropriate, the
distribution of loans among different geographies, businesses and farms of
different sizes, and individuals of different income levels, the extent of
lending to minority- and women-owned businesses, the extent of community
development lending, and the use of innovative or flexible lending practices to
address credit needs;
(ii) the
amount and innovativeness, complexity, and responsiveness of the banking
institution's qualified investments; and
(iii) the availability and effectiveness of
the banking institution's systems for delivering retail banking services and
the extent and innovativeness of the banking institution's community
development services.
(h) Plan amendment. During the term of a
plan, a banking institution may request the Banking Department to approve an
amendment(s) to the plan on grounds that there has been a material change in
circumstances. The banking institution shall develop an amendment(s) to a
previously approved plan in accordance with the public participation
requirements of subdivision (d) of this section.