Ratings

(1) Ratings in General. (a) In assigning a rating, the Commissioner evaluates an institution's performance under the applicable performance criteria in 209 CMR 46.00, in accordance with 209 CMR 46.21, and 209 CMR 46.28. This includes consideration of low-cost education loans provided to low-income borrowers and activities in cooperation with minority- or 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. (b) An institution's 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 institution's overall performance, however, must be consistent with safe and sound banking practices and generally with the appropriate rating profile as follows. (2) Institutions Evaluated under the Lending, Investment, and Service Tests. (a) Lending Performance Rating. The Commissioner assigns each institution's lending performance one of the five following ratings. 1. Outstanding. The Commissioner rates an institution's lending performance "outstanding" if, in general, it demonstrates: a. Excellent responsiveness to credit needs in its assessment area(s), taking into account the number and amount of home mortgage, small business, small farm, and consumer loans, if applicable, in its assessment area(s); b. A substantial majority of its loans are made in its assessment area(s); c. An excellent geographic distribution of loans in its assessment area(s); d. An excellent distribution, particularly in its assessment area(s), of loans among individuals of different income levels and businesses (including farms) of different sizes, given the product lines offered by the institution; e. An excellent record of serving the credit needs of highly economically disadvantaged areas in its assessment area(s), low-income individuals, including loans to assist existing low- and moderate-income residents to be able to remain in their neighborhoods, 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 low- and moderate-income individuals or geographies; g. It is a leader in making community development loans; h. There is no evidence of loans that show an undue concentration and a systematic pattern of lending resulting in the loss of affordable housing units; and i. An excellent record relative to fair lending policies and practices. 2. High Satisfactory. The Commissioner rates an institution's lending performance "high satisfactory" if, in general, it demonstrates: a. Good responsiveness to credit needs in its assessment area(s), taking into account the number and amount of home mortgage, small business, small farm, and consumer loans, if applicable, in its assessment area(s); b. A high percentage of its loans are made in its assessment area(s); c. A good geographic distribution of loans in its assessment area(s); d. A good distribution, particularly in its assessment area(s), of loans among individuals of different income levels and businesses (including farms) of different sizes, given the product lines offered by the institution; e. A good record of serving the credit needs of highly economically disadvantaged areas in its assessment area(s), low-income individuals, including loans to assist existing low- and moderate-income residents to be able to remain in their neighborhoods, 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 low- and moderate-income individuals or geographies; g. It has made a relatively high level of community development loans; h. There is no evidence of loans that show an undue concentration and a systematic pattern of lending resulting in the loss of affordable housing units; and i. A good record relative to fair lending policies and practices. 3. Satisfactory. The Commissioner rates an institution's lending performance "satisfactory" if, in general, it demonstrates: a. Adequate responsiveness to credit needs in its assessment area(s), taking into account the number and amount of home mortgage, small business, small farm, and consumer loans, if applicable, in its assessment area(s); b. An adequate percentage of its loans are made in its assessment area(s); c. An adequate geographic distribution of loans in its assessment area(s); d. An adequate distribution, particularly in its assessment area(s), of loans among individuals of different income levels and businesses (including farms) of different sizes, given the product lines offered by the institution; e. An adequate record of serving the credit needs of highly economically disadvantaged areas in its assessment area(s), low-income individuals, including loans to assist existing low- and moderate-income residents to be able to remain in their neighborhoods, 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 low- and moderate-income individuals or geographies; g. It has made an adequate level of community development loans; h. There is no evidence of loans that show an undue concentration and a systematic pattern of lending resulting in the loss of affordable housing units; and i. An adequate record relative to fair lending policies and practices. 4. Needs to Improve. The Commissioner rates an institution's lending performance "needs to improve" if, in general, it demonstrates: a. Poor responsiveness to credit needs in its assessment area(s), taking into account the number and amount of home mortgage, small business, small farm, and consumer loans, if applicable, in its assessment area(s); b. A small percentage of its loans are made in its assessment area(s); c. A poor geographic distribution of loans, particularly to low- and moderate-income geographies, in its assessment area(s); d. A poor distribution, particularly in its assessment area(s), of loans among individuals of different income levels and businesses (including farms) of different sizes, given the product lines offered by the institution; e. A poor record of serving the credit needs of highly economically disadvantaged areas in its assessment area(s), low-income individuals, including loans to assist existing low- and moderate-income residents to be able to remain in their neighborhoods, 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 low- and moderate-income individuals or geographies; g. It has made a low level of community development loans; h. There is possible evidence of loans that show an undue concentration and a systematic pattern of lending resulting in the loss of affordable housing units; and i. A poor record relative to fair lending policies and practices. 5. Substantial Noncompliance. The Commissioner rates an institution's lending performance as being in "substantial noncompliance" if, in general, it demonstrates: a. A very poor responsiveness to credit needs in its assessment area(s), taking into account the number and amount of home mortgage, small business, small farm, and consumer loans, if applicable, in its assessment area(s); b. A very small percentage of its loans are made in its assessment area(s); c. A very poor geographic distribution of loans, particularly to low- and moderate-income geographies, in its assessment area(s); d. A very poor distribution, particularly in its assessment area(s), of loans among individuals of different income levels and businesses (including farms) of different sizes, given the product lines offered by the institution; e. A very poor record of serving the credit needs of highly economically disadvantaged areas in its assessment area(s), low-income individuals, including loans to assist existing low- and moderate-income residents to be able to remain in their neighborhoods, or businesses (including farms) with gross annual revenues of $1 million or less, consistent with safe and sound operations; f. No use of innovative or flexible lending practices in a safe and sound manner to address the credit needs of low- and moderate-income individuals or geographies; g. It has made few, if any, community development loans; h. Origination of loans that show an undue concentration and a systematic pattern of lending resulting in the loss of affordable housing units; and i. A very poor record relative to fair lending policies and practices. (b) Investment Performance Rating. The Commissioner assigns each institution's investment performance one of the five following ratings. 1. Outstanding. The Commissioner rates an institution's investment performance "outstanding" if, in general, it demonstrates: a. An excellent level of qualified investments, particularly those that are not routinely provided by private investors, often in a leadership position; b. Extensive use of innovative or complex qualified investments; and c. Excellent responsiveness to credit and community development needs. 2. High Satisfactory. The Commissioner rates an institution's investment performance "high satisfactory" if, in general, it demonstrates: a. A significant level of qualified investments, particularly those that are not routinely provided by private investors, occasionally in a leadership position; b. Significant use of innovative or complex qualified investments; and c. Good responsiveness to credit and community development needs. 3. Satisfactory. The Commissioner rates an institution's investment performance "satisfactory" if, in general, it demonstrates: a. An adequate level of qualified investments, particularly those that are not routinely provided by private investors, although rarely in a leadership position; b. Occasional use of innovative or complex qualified investments; and c. Adequate responsiveness to credit and community development needs. 4. Needs to Improve. The Commissioner rates an institution's investment performance "needs to improve" if, in general, it demonstrates: a. A poor level of qualified investments, particularly those that are not routinely provided by private investors; b. Rare use of innovative or complex qualified investments; and c. Poor responsiveness to credit and community development needs. 5. Substantial Noncompliance. The Commissioner rates an institution's investment performance as being in "substantial noncompliance" if, in general, it demonstrates: a. Few, if any, qualified investments, particularly those that are not routinely provided by private investors; b. No use of innovative or complex qualified investments; and c. Very poor responsiveness to credit and community development needs. (c) Service Performance Rating. The Commissioner assigns each institution's service performance one of the five following ratings. 1. Outstanding. The Commissioner rates an institution's service performance "outstanding" if, in general, the institution demonstrates: a. Its service delivery systems are readily accessible to geographies and individuals of different income levels in its assessment area(s); b. To the extent changes have been made, its record of opening and closing branches has improved the accessibility of its delivery systems, particularly in low- and moderate- income geographies or to low- and moderate-income individuals; c. Its services (including, where appropriate, business hours) are tailored to the convenience and needs of its assessment area(s), particularly low- and moderate-income geographies or low- and moderate-income individuals; and d. It is a leader in providing community development services. 2. High Satisfactory. The Commissioner rates an institution's service performance "high satisfactory" if, in general, the institution demonstrates: a. Its service delivery systems are accessible to geographies and individuals of different income levels in its assessment area(s); b. To the extent changes have been made, its record of opening and closing branches has not adversely affected the accessibility of its delivery systems, particularly in low- and moderate-income geographies and to low- and moderate-income individuals; c. Its services (including, where appropriate, business hours) do not vary in a way that inconveniences its assessment area(s), particularly low- and moderate-income geographies and low- and moderate-income individuals; and d. It provides a relatively high level of community development services. 3. Satisfactory. The Commissioner rates an institution's service performance "satisfactory" if, in general, the institution demonstrates: a. Its service delivery systems are reasonably accessible to geographies and individuals of different income levels in its assessment area(s); b. To the extent changes have been made, its record of opening and closing branches has generally not adversely affected the accessibility of its delivery systems, particularly in low- and moderate-income geographies and to low- and moderate-income individuals; c. Its services (including, where appropriate, business hours) do not vary in a way that inconveniences its assessment area(s), particularly low- and moderate-income geographies and low- and moderate-income individuals; and d. It provides an adequate level of community development services. 4. Needs to Improve. The Commissioner rates an institution's service performance "needs to improve" if, in general, the institution demonstrates: a. Its service delivery systems are unreasonably inaccessible to portions of its assessment area(s), particularly to low- and moderate-income geographies or to low- and moderate- income individuals; b. To the extent changes have been made, its record of opening and closing branches has adversely affected the accessibility its delivery systems, particularly in low- and moderate-income geographies or to low- and moderate- income individuals; c. Its services (including, where appropriate, business hours) vary in a way that inconveniences its assessment area(s), particularly low- and moderate-income geographies or low- and moderate-income individuals; and d. It provides a limited level of community development services. 5. Substantial Noncompliance. The Commissioner rates an institution's service performance as being in "substantial noncompliance" if, in general, the institution demonstrates: a. Its service delivery systems are unreasonably inaccessible to significant portions of its assessment area(s), particularly to low- and moderate-income geographies or to low- and moderate-income individuals; b. To the extent changes have been made, its record of opening and closing branches has significantly adversely affected the accessibility of its delivery systems, particularly in low- and moderate-income geographies or to low- and moderate-income individuals; c. Its services (including, where appropriate, business hours) vary in a way that significantly inconveniences its assessment area(s), particularly low- and moderate- income geographies or low- and moderate-income individuals; and d. It provides few, if any, community development services. (3) Wholesale or Limited Purpose Institutions. The Commissioner assigns each wholesale or limited purpose institution's community development performance one of the five following ratings. (a) Outstanding. The Commissioner rates a wholesale or limited purpose institution's community development performance "outstanding" if, in general, it demonstrates: 1. A high level of community development loans, community development services, or qualified investments, particularly investments that are not routinely provided by private investors; 2. Extensive use of innovative or complex qualified investments, community development loans, or community development services; and 3. Excellent responsiveness to credit and community development needs in its assessment area(s). (b) High Satisfactory. The Commissioner rates a wholesale or limited purpose institution's community development performance "high satisfactory" if, in general, it demonstrates: 1. A significant level of community development loans, community development services or qualified investments, particularly investments that are not routinely provided by private investors; 2. Frequent use of innovative or complex qualified investments, community development loans or community development services; and 3. High responsiveness to credit and community development needs in its assessment area(s). (c) Satisfactory. The Commissioner rates a wholesale or limited purpose institution's community development performance "satisfactory" if, in general, it demonstrates: 1. An adequate level of community development loans, community development services, or qualified investments, particularly investments that are not routinely provided by private investors; 2. Occasional use of innovative or complex qualified investments, community development loans, or community development services; and 3. Adequate responsiveness to credit and community development needs in its assessment area(s). (d) Needs to Improve. The Commissioner rates a wholesale or limited purpose institution's community development performance as "needs to improve" if, in general, it demonstrates: 1. A poor level of community development loans, community development services, or qualified investments, particularly investments that are not routinely provided by private investors; 2. Rare use of innovative or complex qualified investments, community development loans, or community development services; and 3. Poor responsiveness to credit and community development needs in its assessment area(s). (e) Substantial Noncompliance. The Commissioner rates a wholesale or limited purpose institution's community development performance in "substantial noncompliance" if, in general, it demonstrates: 1. Few, if any, community development loans, community development services, or qualified investments, particularly investments that are not routinely provided by private investors; 2. No use of innovative or complex qualified investments, community development loans, or community development services; and 3. Very poor responsiveness to credit and community development needs in its assessment area(s). (4) Institutions Evaluated under the Small Institution Performance Standards. (1) Lending Test Ratings. (a) Eligibility for a Satisfactory Rating. The Commissioner rates a small institution's performance "satisfactory" if, in general, the institution demonstrates: 1. A reasonable loan-to-deposit ratio (considering seasonal variations) given the institution's size, financial condition, the credit needs of its assessment area(s), and taking into account, as appropriate, lending-related activities such as loan originations for sale to the secondary markets and community development loans and qualified investments; 2. A majority of its loans and, as appropriate, other lending-related activities are in its assessment area(s); 3. A distribution of loans to and, as appropriate, other lending related-activities for individuals of different income levels (including low- and moderate-income individuals) and businesses and farms of different sizes that is reasonable given the demographics of the institution's assessment area(s); 4. A record of taking appropriate action, as warranted, in response to written complaints, if any, about the institution's performance in helping to meet the credit needs of its assessment area(s) and reasonable performance with regard to fair lending policies and practices; and 5. A reasonable geographic distribution of loans given the institution's assessment area(s). (b) Eligibility for a High Satisfactory or an Outstanding Rating. A small institution that meets each of the standards for a "satisfactory" rating under this paragraph and exceeds some or all of those standards may warrant consideration for an overall rating of "high satisfactory" or "outstanding." (c) Needs to Improve or Substantial Noncompliance Ratings. A small institution also may receive a rating of "needs to improve" or "substantial noncompliance" depending on the degree to which its performance has failed to meet the standards for a "satisfactory" rating. (d) Community Development Test Ratings for Intermediate Small Institutions -- Eligibility for a Satisfactory Community Development Test Rating. The Commissioner rates an intermediate small institution’s community development performance “satisfactory” if the institution demonstrates adequate responsiveness to the community development needs of its assessment area(s) or a broader statewide or regional area that includes the institution’s assessment area(s) through community development loans, qualified investments, and community development services. The adequacy of the institution’s response will depend on its capacity for such community development activities, its assessment area’s need for such community development activities, and the availability of such opportunities for community development in the institution’s assessment area(s). (e) Community Development Test Ratings for Intermediate Small Institutions -- Eligibility for an Outstanding Community Development Test Rating. The Commissioner rates an intermediate small institution’s community development performance “outstanding” if the institution demonstrates excellent responsiveness to community development needs in its assessment area(s) through community development loans, qualified investments, and community development services, as appropriate, considering the institution’s capacity and the need and availability of such opportunities for community development in the institution’s assessment area(s). (f) Community Development Test Ratings for Intermediate Small Institutions -- Needs to Improve or Substantial Noncompliance Rating. An intermediate small institution may also receive a community development test rating of “needs to improve” or “substantial noncompliance” depending on the degree to which its performance has failed to meet the standards for a “satisfactory” rating. (5) Service Test Rating for Credit Unions that are Intermediate Small Institutions. A credit union that is an intermediate small institution will be rated under the service test in accordance with 209 CMR 46.61(2)(c). (6) Overall Rating. (a) Eligibility for a Satisfactory Overall Rating. No intermediate small institution may receive an assigned overall rating of “satisfactory” unless it receives a rating of at least “satisfactory” on both tests. (b) Eligibility for an Outstanding Overall Rating. 1. An intermediate small institution that receives an “outstanding” rating on one test and at least “satisfactory” on the other test may receive an assigned overall rating of “outstanding.” 2. A small institution that is not an intermediate small institution that meets each of the standards for a “satisfactory” rating under the lending test and exceeds some or all of those standards may warrant consideration for an overall rating of “outstanding.” In assessing whether an institution’s performance is “outstanding,” the Commissioner considers the extent to which the institution exceeds each of the performance standards for a “satisfactory” rating and its performance in making qualified investments and its performance in providing branches and other services and delivery systems that enhance credit availability in its assessment area(s). (c) Needs to Improve or Substantial Noncompliance Overall Rating. A small institution may also receive a rating of “needs to improve” or “substantial noncompliance” depending on the degree to which its performance has failed to meet the standards for a “satisfactory” rating. (7) Strategic Plan Assessment and Rating. (a) Satisfactory Goals. The Commissioner approves as "satisfactory" measurable goals that adequately help to meet the credit needs of the institution's assessment area(s). (b) Outstanding Goals. If the plan identifies a separate group of measurable goals that substantially exceed the levels approved as "satisfactory," the Commissioner will approve those goals as "outstanding." (c) Rating. The Commissioner assesses the performance of an institution operating under an approved plan to determine if the institution has met its plan goals: 1. If the institution substantially achieves its plan goals for a satisfactory rating, the Commissioner will rate the institution's performance under the plan as "satisfactory." 2. If the institution achieves all of its goals for a satisfactory rating, and exceeds some or all of its plan goals for a satisfactory rating, the Commissioner will rate the institution under the plan as "high satisfactory." 3. If the institution exceeds its plan goals for a satisfactory rating and substantially achieves its plan goals for an outstanding rating, the Commissioner will rate the institution's performance under the plan as "outstanding." 4. If the institution fails to meet substantially its plan goals for a satisfactory rating, the Commissioner will rate the institution as either "needs to improve" or "substantial noncompliance," depending on the extent to which it falls short of its plan goals, unless the institution elected in its plan to be rated otherwise, as provided in 209 CMR 46.27(6)(d). (8) Credit Unions Evaluated under the Lending and Service Tests. (a) Lending Performance Rating. The Commissioner assigns each credit union's lending performance one of the five following ratings. 1. Outstanding. The Commissioner rates a credit union's lending performance "outstanding" if, in general, it demonstrates: a. Excellent responsiveness to credit needs in its assessment area(s), taking into account the number and amount of home mortgage, and consumer loans, if applicable, in its assessment area(s); b. A substantial majority of its loans are made in its assessment area(s); c. An excellent geographic distribution of loans in its assessment area(s), provided however, a geographic analysis is relevant in the context of the credit union's membership by-law provisions; d. An excellent distribution, particularly in its assessment area(s), of loans among members of different income levels, given the product lines offered by the credit union; e. An excellent record of serving the credit needs of highly economically disadvantaged areas in its assessment area(s), and low-income members, including loans and other efforts to assist existing low- and moderate-income members to be able to remain in their neighborhoods, 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 low- and moderate-income members or geographies; g. There is no evidence of loans that show an undue concentration and a systematic pattern of lending resulting in the loss of affordable housing units; and h. An excellent record relative to fair lending policies and practices. 2. High Satisfactory. The Commissioner rates a credit union's lending performance "high satisfactory" if, in general, it demonstrates: a. Good responsiveness to credit needs in its assessment area(s), taking into account the number and amount of home mortgage, and consumer loans, if applicable, in its assessment area(s); b. A high percentage of its loans are made in its assessment area(s); c. A good geographic distribution of loans in its assessment area(s), provided however, a geographic analysis is relevant in the context of the credit union's membership by-law provisions; d. A good distribution, particularly in its assessment area(s), of loans among members of different income levels, given the product lines offered by the credit union; e. A good record of serving the credit needs of highly economically disadvantaged areas in its assessment area(s), and low-income members, including loans and other efforts to assist existing low- and moderate-income members to be able to remain in their neighborhoods, 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 low- and moderate-income members or geographies; g. There is no evidence of loans that show an undue concentration and a systematic pattern of lending resulting in the loss of affordable housing units; and h. A good record relative to fair lending policies and practices. 3. Satisfactory. The Commissioner rates a credit union's lending performance "satisfactory" if, in general, it demonstrates: a. Adequate responsiveness to credit needs in its assessment area(s), taking into account the number and amount of home mortgage, and consumer loans, if applicable, in its assessment area(s); b. An adequate percentage of its loans are made in its assessment area(s); c. An adequate geographic distribution of loans in its assessment area(s), provided however, a geographic analysis is relevant in the context of the credit union's membership by-law provisions; d. An adequate distribution, particularly in its assessment area(s), of loans among members of different income levels, given the product lines offered by the credit union; e. An adequate record of serving the credit needs of highly economically disadvantaged areas in its assessment area(s), and low-income members, including loans and other efforts to assist existing low- and moderate-income members to be able to remain in their neighborhoods, 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 low- and moderate-income members or geographies; g. There is no evidence of loans that show an undue concentration and a systematic pattern of lending resulting in the loss of affordable housing units; and h. An adequate record relative to fair lending policies and practices. 4. Needs to Improve. The Commissioner rates a credit union's lending performance "needs to improve" if, in general, it demonstrates: a. Poor responsiveness to credit needs in its assessment area(s), taking into account the number and amount of home mortgage, and consumer loans, if applicable, in its assessment area(s); b. A small percentage of its loans are made in its assessment area(s); c. A poor geographic distribution of loans, particularly to low- and moderate-income geographies, in its assessment area(s), provided however, a geographic analysis is relevant in the context of the credit union's membership by-law provisions; d. A poor distribution, particularly in its assessment area(s), of loans among members of different income levels, given the product lines offered by the credit union; e. A poor record of serving the credit needs of highly economically disadvantaged areas in its assessment area(s), and low-income members, including loans and other efforts to assist existing low- and moderate-income members to be able to remain in their neighborhoods, 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 low- and moderate-income members or geographies; g. There is possible evidence of loans that show an undue concentration and a systematic pattern of lending resulting in the loss of affordable housing units; and h. A poor record relative to fair lending policies and practices. 5. Substantial Noncompliance. The Commissioner rates a credit union's lending performance as being in "substantial noncompliance" if, in general, it demonstrates: a. A very poor responsiveness to credit needs in its assessment area(s), taking into account the number and amount of home mortgage, and consumer loans, if applicable, in its assessment area(s); b. A very small percentage of its loans are made in its assessment area(s); c. A very poor geographic distribution of loans, particularly to low- and moderate-income geographies, in its assessment area(s), provided however, a geographic analysis is relevant in the context of the credit union's membership by-law provisions; d. A very poor distribution, particularly in its assessment area(s), of loans among members of different income levels, given the product lines offered by the credit union; e. A very poor record of serving the credit needs of highly economically disadvantaged areas in its assessment area(s), and low-income members, including loans and other efforts to assist existing low- and moderate-income members to be able to remain in their neighborhoods, , consistent with safe and sound operations; f. No use of innovative or flexible lending practices in a safe and sound manner to address the credit needs of low- and moderate-income members or geographies; g. Origination of loans that show an undue concentration and a systematic pattern of lending resulting in the loss of affordable housing units; and h. A very poor record relative to fair lending policies and practices. (b) Service Performance Rating. The Commissioner assigns each credit union's service performance one of the five following ratings. 1. Outstanding. The Commissioner rates a credit union's service performance "outstanding" if, in general, the credit union demonstrates: a. Its service delivery systems are readily accessible to members and geographies of different income levels in its assessment area(s); b. To the extent changes have been made, its record of opening and closing branches has improved the accessibility of its delivery systems, particularly to low- and moderate- income members or in low- and moderate-income geographies; c. Its services (including, where appropriate, business hours) are tailored to the convenience and needs of its assessment area(s), particularly low- and moderate-income members or in low- and moderate-income geographies; and d. It is a leader in providing community development services. 2. High Satisfactory. The Commissioner rates a credit union's service performance "high satisfactory" if, in general, the credit union demonstrates: a. Its service delivery systems are accessible to members and geographies of different income levels in its assessment area(s); b. To the extent changes have been made, its record of opening and closing branches has not adversely affected the accessibility of its delivery systems, particularly to low- and moderate-income members and in low- and moderate-income geographies; c. Its services (including, where appropriate, business hours) do not vary in a way that inconveniences its assessment area(s), particularly low- and moderate-income members and low- and moderate-income geographies; and d. It provides a relatively high level of community development services. 3. Satisfactory. The Commissioner rates a credit union's service performance "satisfactory" if, in general, the credit union demonstrates: a. Its service delivery systems are reasonably accessible to members and geographies of different income levels in its assessment area(s); b. To the extent changes have been made, its record of opening and closing branches has generally not adversely affected the accessibility of its delivery systems, particularly to low- and moderate-income members and in low- and moderate-income geographies; c. Its services (including, where appropriate, business hours) do not vary in a way that inconveniences its assessment area(s), particularly low- and moderate-income members and low- and moderate-income geographies; and d. It provides an adequate level of community development services. 4. Needs to Improve. The Commissioner rates a credit union's service performance "needs to improve" if, in general, the credit union demonstrates: a. Its service delivery systems are unreasonably inaccessible to portions of its assessment area(s), particularly to low- and moderate-income members or to low- and moderate- income geographies; b. To the extent changes have been made, its record of opening and closing branches has adversely affected the accessibility its delivery systems, particularly to low- and moderate- income members or in low- and moderate-income geographies; c. Its services (including, where appropriate, business hours) vary in a way that inconveniences its assessment area(s), particularly low- and moderate-income members or low- and moderate-income geographies; and d. It provides a limited level of community development services. 5. Substantial Noncompliance. The Commissioner rates a credit union's service performance as being in "substantial noncompliance" if, in general, the credit union demonstrates: a. Its service delivery systems are unreasonably inaccessible to significant portions of its assessment area(s), particularly to low- and moderate-income members or to low- and moderate-income geographies; b. To the extent changes have been made, its record of opening and closing branches has significantly adversely affected the accessibility of its delivery systems, particularly to low- and moderate-income members or in low- and moderate-income geographies; c. Its services (including, where appropriate, business hours) vary in a way that significantly inconveniences its assessment area(s), particularly low- and moderate- income members or low- and moderate-income geographies; and d. It provides few, if any, community development services. (c) Other Eligible Criteria for a High Satisfactory or an Outstanding Rating. A credit union that achieves at least a "satisfactory" rating under the lending and service tests may warrant consideration for an overall rating of "high satisfactory" or "outstanding." In assessing whether a credit union 's performance is "high satisfactory" or "outstanding," the Commissioner will also consider the credit union's performance in making qualified investments and community development loans to the extent authorized under law. (9) Component Test Ratings. The Commissioner shall develop, by written policy or directive, a matrix system which sets forth the methodology for aggregating an institution's scores on the lending, service, and investment tests to arrive at an assigned rating.