Appeals of Material Supervisory Determinations: Guidelines & Decisions
SARC-95-08 (December 19, 1995)
The Supervision Appeals Review Committee (Committee) of the Federal Deposit Insurance Corporation (FDIC), on November 30, 1995, considered your appeal of the Community Reinvestment ACT (CRA) rating issued to [Bank] (Bank), pursuant to the Compliance Examination Report (Report) as of February 27, 1995.
The Committee, after a review of the material submitted with the appeal and the additional material submitted in response to the Committees request of September 22, 1995, has concluded that the CRA rating should be affirmed. This decision is considered a final supervisory determination by the FDIC.
The Committee reached its determination after due consideration of the information presented by the Bank, the material contained in the examination workpapers and other material available to the examiner. While it was evident to the Committee that the Bank has made considerable progress in its ascertainment and marketing efforts, the overall lending performance of the Bank remains in need of improvement.
In reaching its determination, the Committee noted that the overall demographics of the Banks market area and the level of competition within that market indicated an economy that has been expanding and thereby offering opportunities for credit expansion consistent with safe and sound banking practices. It also took particular note of the history of the Bank in surviving the economic downturn during the previous decade. The Committee also noted, however, that the CRA requires an institution to help meet the credit needs of its entire community and that the Banks performance in its response to those credit needs has not been as robust as it could have been.
The Committee was encouraged to learn that the Bank continues to take affirmative actions to increase its marketing activities and to explore ways to increase its lending performance while maintaining safe and sound credit standards. The Committee encourages the Bank to continue those efforts and carefully review them in relation to the new revisions to the CRA that will become effective in January 1996. The Committee also encourages the Bank to contact the Community Affairs Officer at its Dallas Regional Office, Mr. Eloy Villafranca, (214) 220-3320, for any special assistance the Bank believes may be needed to improve its lending performance.
The Committee has also taken note that the Report of Examination and the Public Evaluation of the Banks performance with CRA contained inaccurate or misleading statements made by the examiner. The committee concurred with staffs request to make corrections to the Public Evaluation so that it factually and accurately describes the performance of the Bank. A revised Public Evaluation correcting those inaccurate or misleading statements will be provided to the Bank for inclusion in its public file.
By direction of Supervision Appeals Review Committee of the Federal Deposit Insurance Corporation.