§ 228.25 Community development services test.

(a) Community Development Services Test—(1) In general. Pursuant to § 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 § 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 § 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 § 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 § 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 § 228.21(d). (2) Ratings. Pursuant to § 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.