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Federal Register / Vol. 86, No. 178 / Friday, September 17, 2021 / Proposed Rules circumstances where there was a low loan-to-deposit ratio because of the nature of the acquired institutions business or loan portfolio;
3 Whether covered interstate branches have a high concentration of commercial or credit card lending, trust services, or other specialized activities, including the extent to which the covered interstate branches accept deposits in the host state;
4 The CRA ratings received by the bank, if any;
5 Economic conditions, including the level of loan demand, within the communities served by the covered interstate branches;
6 The safe and sound operation and condition of the bank; and 7 The OCCs CRA regulations subparts A through D of this part and interpretations of those regulations.
25.65

Sanctions.

a In general. If the OCC determines that a bank is not reasonably helping to meet the credit needs of the communities served by the bank in the host state, and that the banks statewide loan-to-deposit ratio is less than 50
percent of the host state loan-to-deposit ratio, the OCC:
1 May order that a banks covered interstate branch or branches be closed unless the bank provides reasonable assurances to the satisfaction of the OCC, after an opportunity for public comment, that the bank has an acceptable plan under which the bank will reasonably help to meet the credit needs of the communities served by the bank in the host state; and 2 Will not permit the bank to open a new branch in the host state that would be considered to be a covered interstate branch unless the bank provides reasonable assurances to the satisfaction of the OCC, after an opportunity for public comment, that the bank will reasonably help to meet the credit needs of the community that the new branch will serve.
b Notice prior to closure of a covered interstate branch. Before exercising the OCCs authority to order the bank to close a covered interstate branch, the OCC will issue to the bank a notice of the OCCs intent to order the closure and will schedule a hearing within 60
days of issuing the notice.
c Hearing. The OCC will conduct a hearing scheduled under paragraph b of this section in accordance with the provisions of 12 U.S.C. 1818h and 12
CFR part 19.
Appendix A to Part 25Ratings a Ratings in general. 1 In assigning a rating, the OCC evaluates a banks
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performance under the applicable performance criteria in this part, in accordance with 25.21 and 25.28. This includes consideration of low-cost education loans provided to low-income borrowers and activities in cooperation with minorityor women-owned financial institutions and low-income credit unions, as well as adjustments on the basis of evidence of discriminatory or other illegal credit practices.
2 A banks performance need not fit each aspect of a particular rating profile in order to receive that rating, and exceptionally strong performance with respect to some aspects may compensate for weak performance in others. The banks overall performance, however, must be consistent with safe and sound banking practices and generally with the appropriate rating profile as follows.
b Banks evaluated under the lending, investment, and service tests1 Lending performance rating. The OCC assigns each banks lending performance one of the five following ratings.
i Outstanding. The OCC rates a banks lending performance outstanding if, in general, it demonstrates:
A Excellent responsiveness to credit needs in its assessment areas, taking into account the number and amount of home mortgage, small business, small farm, and consumer loans, if applicable, in its assessment areas;
B A substantial majority of its loans are made in its assessment areas;
C An excellent geographic distribution of loans in its assessment areas;
D An excellent distribution, particularly in its assessment areas, of loans among individuals of different income levels and businesses including farms of different sizes, given the product lines offered by the bank;
E An excellent record of serving the credit needs of highly economically disadvantaged areas in its assessment areas, low-income individuals, or businesses including farms with gross annual revenues of $1 million or less, consistent with safe and sound operations;
F Extensive use of innovative or flexible lending practices in a safe and sound manner to address the credit needs of lowor moderate-income individuals or geographies;
and G It is a leader in making community development loans.
ii High satisfactory. The OCC rates a banks lending performance high satisfactory if, in general, it demonstrates:
A Good responsiveness to credit needs in its assessment areas, taking into account the number and amount of home mortgage, small business, small farm, and consumer loans, if applicable, in its assessment areas;
B A high percentage of its loans are made in its assessment areas;
C A good geographic distribution of loans in its assessment areas;
D A good distribution, particularly in its assessment areas, of loans among individuals of different income levels and businesses including farms of different sizes, given the product lines offered by the bank;

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E A good record of serving the credit needs of highly economically disadvantaged areas in its assessment areas, low-income individuals, or businesses including farms with gross annual revenues of $1 million or less, consistent with safe and sound operations;
F Use of innovative or flexible lending practices in a safe and sound manner to address the credit needs of lowor moderateincome individuals or geographies; and G It has made a relatively high level of community development loans.
iii Low satisfactory. The OCC rates a banks lending performance low satisfactory if, in general, it demonstrates:
A Adequate responsiveness to credit needs in its assessment areas, taking into account the number and amount of home mortgage, small business, small farm, and consumer loans, if applicable, in its assessment areas;
B An adequate percentage of its loans are made in its assessment areas;
C An adequate geographic distribution of loans in its assessment areas;
D An adequate distribution, particularly in its assessment areas, of loans among individuals of different income levels and businesses including farms of different sizes, given the product lines offered by the bank;
E An adequate record of serving the credit needs of highly economically disadvantaged areas in its assessment areas, low-income individuals, or businesses including farms with gross annual revenues of $1 million or less, consistent with safe and sound operations;
F Limited use of innovative or flexible lending practices in a safe and sound manner to address the credit needs of lowor moderate-income individuals or geographies;
and G It has made an adequate level of community development loans.
iv Needs to improve. The OCC rates a banks lending performance needs to improve if, in general, it demonstrates:
A Poor responsiveness to credit needs in its assessment areas, taking into account the number and amount of home mortgage, small business, small farm, and consumer loans, if applicable, in its assessment areas;
B A small percentage of its loans are made in its assessment areas;
C A poor geographic distribution of loans, particularly to lowor moderate-income geographies, in its assessment areas;
D A poor distribution, particularly in its assessment areas, of loans among individuals of different income levels and businesses including farms of different sizes, given the product lines offered by the bank;
E A poor record of serving the credit needs of highly economically disadvantaged areas in its assessment areas, low-income individuals, or businesses including farms with gross annual revenues of $1 million or less, consistent with safe and sound operations;
F Little use of innovative or flexible lending practices in a safe and sound manner to address the credit needs of lowor moderate-income individuals or geographies;
and
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