[Kimberly Boatwright, CAMS, CRCM]

This questions has a few complications.

1. You indicate you are new to CRA. Is your bank new? Has the assessment area already been defined and established by your BOD? Are you needing to make adjustments for growth? Changing markets? Or are you traying to establish an FBAA under the new rules? What is your bank size?
2. Making loans in other counties is not reason enough to make adjustments to your AA. Consideration needs to be given to:
a. The percentage of loans out side your Bank defined AA. Is it significant enough to adjust the boundaries? If you are starting to see more than 25-30% outside your AA then you are going to need to make an adjustment.
b. Are any of the counties that are adjacent/contiguous LMI? if they are you will definitely want to include those. If they are not, you will want to understand why loans are being made there and if it appears you only services Moderate and High net worth areas.
c. If you are intermediate or Small can your bank reasonably serve these new areas?
3. You can only create an assessment area if: the geographic area that can reasonably be served by each of a bank’s locations, including its main office, any branches, and deposit-taking ATMs. It has to have a deposit taking facility in it. I’m not sure that would be true of a trade area.

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• This reply was modified 12 months ago by Kimberly Boatwright, CAMS, CRCM.

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