1. Assessment Areas Must Reflect the Bank'S Actual Footprint
Opening a branch may change the communities included in a bank's assessment areas. Under the currently applied CRA framework, these areas generally cover offices, branches, deposit-taking ATMs, and surrounding locations with substantial lending. Banks must also respect geographic boundaries. The broader Community Reinvestment Act page explains the underlying statute.
Check Geographic Boundaries Across States
Assessment areas generally cannot extend substantially across state or metropolitan-area boundaries, except as permitted for multistate metropolitan areas.
- Map main offices, branches, and deposit-taking ATMs against census tracts.
- Check whether separate assessment areas are required on either side of a boundary.
- Avoid arbitrary exclusions of low- or moderate-income areas.
Keep Local Maps and Records Aligned
One headquarters team may overlook a local branch change. Give each market clear responsibility for updating maps and explaining lending patterns.
- Compare branch openings and closures with current assessment-area maps.
- Retain local credit-needs and economic-context information.
- Record the reasons for boundary decisions and later revisions.
2. Choose Examination Records Based on the Applicable Test
Bank size and business model affect CRA examinations. Regulators continue to apply the pre-2023 framework rather than the enjoined modernization rule. Classification depends on asset levels over two prior year-ends. Verify the current threshold and supervising agency before preparing an examination file.
Confirm the Bank'S Evaluation Category
Different categories face different performance tests. Specialized banks and institutions with approved strategic plans may follow alternative procedures.
| Category | Usual Evaluation |
|---|---|
| Small bank | Streamlined lending test |
| Intermediate small bank | Lending and community development tests |
| Large bank | Lending, investment, and service tests |
In 2026, intermediate-small-bank status generally requires at least $412 million in assets at both prior year-ends and less than $1.649 billion at either year-end.
Prepare Traceable Lending Evidence
Examiners need to understand what the bank did and why. Reconcile loan records before explanations become part of the examination file.
- Check loan categories, borrower records, and geographic coding.
- Verify qualifying community development activities where relevant.
- Explain lending results in light of local needs and available capacity.
3. Review Cra Exposure before Branch or Merger Applications
Regulators consider a bank's CRA record when reviewing certain applications, but a favorable rating does not guarantee approval. Public evaluations, unresolved concerns, and proposed footprint changes can affect the review. Include CRA questions in wider banking and financial institutions planning.
Examine Ratings and Pending Concerns
Read the public evaluation before setting a transaction timetable. A completed corrective measure should have supporting records.
- Identify findings involving particular assessment areas.
- Preserve evidence of corrective work and subsequent performance.
- Map how the proposed transaction changes the combined footprint.
Keep Fair Lending Issues Distinct
CRA performance and unlawful credit discrimination are different questions, even when regulators examine overlapping loan data.
- Separate CRA findings from potential ECOA or Fair Housing Act violations.
- Check whether lending records support each distinct analysis.
- Preserve regulator requests and responses to public comments.
4. Respond to Findings under the Rules in Force
A disputed loan figure or assessment-area map needs a specific, documented answer. The 2023 modernization rule remains unimplemented under an injunction. Agencies proposed further CRA changes in 2026, but proposed requirements do not replace current examination standards. Separate today's obligations from possible future changes.
Trace Disputes to Their Source
A coding mistake calls for a correction; a substantive lending concern calls for an explanation grounded in performance context.
- Compare questioned figures with original loan and location records.
- Explain verified corrections without rewriting the historical record.
- Address remaining concerns under the applicable evaluation test.
Prepare Accurate Agency Responses
Distinguish what the bank has completed from what it plans to do. Supervisors may revisit those statements in later reviews.
- Assign responsibility for answering examiner questions.
- Retain supporting exhibits and agency correspondence.
- Assess whether separate regulatory investigations issues require legal review.
5. Frequently Asked Questions
Does online lending create an assessment area in every state?
Not automatically under the currently applied framework. Assessment-area rules primarily address specified facilities and lending geography rather than every borrower's location.
Can a bank use a CRA strategic plan?
Eligible banks may seek approval of a strategic plan through the applicable public participation and regulatory review procedures.
Does an Outstanding CRA rating guarantee merger approval?
No. Regulators consider CRA performance alongside other legal requirements and the facts of the application.
Are the 2026 proposed CRA changes mandatory now?
No. A proposed rule does not impose new obligations unless adopted and made applicable through the required process.
6. Discuss Multistate Cra Planning with Sjkp
A branch opening or examination request can reveal gaps between a bank's maps and lending records. SJKP's attorneys can assess assessment-area decisions, review examination findings, and prepare responses to regulatory questions. Contact SJKP to discuss your institution's current obligations and next decisions.
15 May, 2026
