Small Institution Performance Standards

(1) Performance Criteria. (a) Small institutions with Assets of Less than $250 million. The Commissioner evaluates the record of a small institution that is not, or that was not during the prior calendar year, an intermediate small institution, of helping to meet the credit needs of its assessment area pursuant to the criteria set forth in paragraph (2) of this section. (b) Intermediate Small Institutions. The Commissioner evaluates the record of a small institution that is, or that was during the prior calendar year, an intermediate small institution, of helping to meet the credit needs of its assessment area(s) pursuant to the criteria set forth in paragraphs (2) and (3) of this section. A credit union that is, or that was during the prior calendar year an intermediate small institution will be evaluated pursuant to the criteria set forth in paragraph (2) of this section and under the service test as provided in 209 CMR 46.24. (2) Lending Test. A small institution’s lending performance is evaluated pursuant to the following criteria: (a) the institution's loan-to-deposit ratio, adjusted for seasonal variation and, as appropriate, other lending-related activities, such as loan originations for sale to the secondary markets, community development loans, or qualified investments; (b) the percentage of loans and, as appropriate, other lending-related activities located in the institution's assessment area(s); (c) the institution's record of lending to and, as appropriate, engaging in other lending- related activities for borrowers of different income levels and businesses and farms of different sizes; (d) the geographic distribution of the institution's loans, provided, however that a credit union shall be evaluated in the context of its relevant membership by-law provisions; and (e) the institution's record of taking action, if warranted, in response to written complaints about its performance in helping to meet credit needs in its assessment area(s) and its performance with regard to fair lending policies and practices. (3) Community Development Test. An intermediate small institution’s community development performance is also evaluated pursuant to the following criteria: (a) The number and amount of community development loans; (b) The number and amount of qualified investments; (c) The extent to which the institution provides community development services; and (d) The institution’s responsiveness through such activities to community development lending, investment, and service needs. (4) Small Institution Performance Rating. The Commissioner rates the performance of an institution evaluated under 209 CMR 46.26 as provided in 209 CMR 46.61 (Ratings).