Federal Deposit Insurance Corporation
550 17th Street NW, Washington, DC 20429-9990
Financial Institution Letter
FIL-18-2008
March 10, 2008
Community Reinvestment Act
Annual Asset-Size Threshold Adjustment
Summary: The FDIC, the Federal Reserve Board, the Office of the Comptroller of the Currency and the Office of Thrift
Supervision have published the attached joint final rule amending the Community Reinvestment Act (CRA) to make the
annual adjustment to the asset-size threshold used to define "small bank" and "intermediate small bank" under the Act.
The final rule also corrects a paragraph heading that is inaccurate as a result of annual revisions to the small institution
threshold.
Distribution:
FDIC-Supervised Banks (Commercial and Savings)
Suggested Routing:
Chief Executive Officers
CRA Officers
Compliance Officers
Related Topics:
Community Reinvestment Act
Attachment:
Joint Final Rule - PDF (PDF Help)
Contact:
Deirdre Foley, Senior Policy Analyst, Compliance Policy
Section, dfoley@fdic.gov or (202) 898-6612; or Susan
van den Toorn, Counsel, svandentoorn@fdic.gov or
(202) 898-8707
Note:
FDIC financial institution letters (FILs) may be accessed
from the FDIC's Web site
at www.fdic.gov/news/news/financial/2008/index.html.
To receive FILs electronically, please
visit http://www.fdic.gov/about/subscriptions/fil.html.
Paper copies of FDIC financial institution letters may be
obtained through the FDIC's Public Information Center,
3501 Fairfax Drive, E-1002, Arlington, VA 22226 (1-877-
275-3342 or 703-562-2200).
Highlights:
• The federal banking agencies have amended their
CRA regulations to publish an increase in the
asset-size threshold to be used to define "small
bank" and "intermediate small bank." The increase
is based on the annual percentage change in the
Consumer Price Index (CPI).
• As a result of the 2.7 percent increase in the CPI
for the period ending in November 2007, the
definitions of small and intermediate small banks
for CRA examinations have changed as follows:
o "Small bank" or "small savings association"
means a bank that, as of December 31 of
either of the prior two calendar years, had
assets of less than $1.061 billion.
o "Intermediate small bank" or "intermediate
small savings association" means a small
bank with assets of at least $265 million as
of December 31 of both of the prior two
calendar years, and less than $1.061 billion
as of December 31 of either of the prior two
calendar years.
• These asset-size threshold adjustments took effect
on January 1, 2008.
• The final rule also revised the paragraph headings
found at 12 C.F.R. § 345.26 ("Small banks with
assets of less than $250 million"). As a result of the
annual adjustments to the dollar amount threshold
for small institutions, the threshold of $250 million
described in the paragraph heading is inaccurate.
• Current and historical asset-size thresholds are
published on the Federal Financial Institutions
Examination Council's Web site
at www.ffiec.gov/cra/.Inactive
550 17th Street NW, Washington, DC 20429-9990
Financial Institution Letter
FIL-18-2008
March 10, 2008
Community Reinvestment Act
Annual Asset-Size Threshold Adjustment
Summary: The FDIC, the Federal Reserve Board, the Office of the Comptroller of the Currency and the Office of Thrift
Supervision have published the attached joint final rule amending the Community Reinvestment Act (CRA) to make the
annual adjustment to the asset-size threshold used to define "small bank" and "intermediate small bank" under the Act.
The final rule also corrects a paragraph heading that is inaccurate as a result of annual revisions to the small institution
threshold.
Distribution:
FDIC-Supervised Banks (Commercial and Savings)
Suggested Routing:
Chief Executive Officers
CRA Officers
Compliance Officers
Related Topics:
Community Reinvestment Act
Attachment:
Joint Final Rule - PDF (PDF Help)
Contact:
Deirdre Foley, Senior Policy Analyst, Compliance Policy
Section, dfoley@fdic.gov or (202) 898-6612; or Susan
van den Toorn, Counsel, svandentoorn@fdic.gov or
(202) 898-8707
Note:
FDIC financial institution letters (FILs) may be accessed
from the FDIC's Web site
at www.fdic.gov/news/news/financial/2008/index.html.
To receive FILs electronically, please
visit http://www.fdic.gov/about/subscriptions/fil.html.
Paper copies of FDIC financial institution letters may be
obtained through the FDIC's Public Information Center,
3501 Fairfax Drive, E-1002, Arlington, VA 22226 (1-877-
275-3342 or 703-562-2200).
Highlights:
• The federal banking agencies have amended their
CRA regulations to publish an increase in the
asset-size threshold to be used to define "small
bank" and "intermediate small bank." The increase
is based on the annual percentage change in the
Consumer Price Index (CPI).
• As a result of the 2.7 percent increase in the CPI
for the period ending in November 2007, the
definitions of small and intermediate small banks
for CRA examinations have changed as follows:
o "Small bank" or "small savings association"
means a bank that, as of December 31 of
either of the prior two calendar years, had
assets of less than $1.061 billion.
o "Intermediate small bank" or "intermediate
small savings association" means a small
bank with assets of at least $265 million as
of December 31 of both of the prior two
calendar years, and less than $1.061 billion
as of December 31 of either of the prior two
calendar years.
• These asset-size threshold adjustments took effect
on January 1, 2008.
• The final rule also revised the paragraph headings
found at 12 C.F.R. § 345.26 ("Small banks with
assets of less than $250 million"). As a result of the
annual adjustments to the dollar amount threshold
for small institutions, the threshold of $250 million
described in the paragraph heading is inaccurate.
• Current and historical asset-size thresholds are
published on the Federal Financial Institutions
Examination Council's Web site
at www.ffiec.gov/cra/.Inactive