PUBLIC DISCLOSURE
February 5, 2019
Community State Bank
Certificate Number: 17551
207 South Main Street
Paton, Iowa 50217
Federal Deposit Insurance Corporation
Division of Depositor and Consumer Protection
Kansas City Regional Office
1100 Walnut Street, Suite 2100
Kansas City, Missouri 64106
This document is an evaluation of this institution’s record of meeting the credit needs of its entire community, including low- and moderate-income neighborhoods, consistent with safe and sound operation of the institution. This evaluation is not, nor should it be construed as, an assessment of the financial condition of this institution. The rating assigned to this institution does not represent an analysis, conclusion, or opinion of the federal financial supervisory agency concerning the safety and soundness of this financial institution.
TABLE OF CONTENTS
Institution Rating
Scope of Evaluation
Description of Institution
Description of Assessment Area
Conclusions on Performance Criteria
Discriminatory or Other Illegal Credit Practices Review
Glossary
Institution Rating
INSTITUTION’S CRA RATING: This institution is rated Satisfactory. An institution in this group has a satisfactory record of helping to meet the credit needs of its assessment area, including low- and moderate-income neighborhoods, in a manner consistent with its resources and capabilities.
Community State Bank’s satisfactory Community Reinvestment Act (CRA) performance under the Lending Test supports the overall rating. Examiners did not identify any evidence of discriminatory or other illegal credit practices. The following points summarize the bank’s performance.
- The loan-to-deposit ratio is reasonable given the institution’s size, financial condition, and the assessment area credit needs.
- The bank made a substantial majority of its small farm loans in the assessment area.
- The distribution of borrowers reflects an overall reasonable level of lending among farms of different sizes.
- The assessment area does not contain any low- or moderate-income geographies. Therefore, examiners did not evaluate the geographic distribution of loans.
- The institution did not receive any CRA-related complaints since the previous evaluation; therefore, this factor did not affect the CRA rating.
Scope of Evaluation
General Information
This evaluation covers the period from the prior evaluation dated February 19, 2013, to the current evaluation dated February 5, 2019. Examiners used the Interagency Small Institution Examination Procedures to evaluate the bank’s CRA performance. These procedures considered the institution’s performance according to the following Lending Test criteria.
- Loan-to-deposit ratio
- Assessment area concentration
- Borrower profile
- Geographic distribution
- Response to CRA-related complaints
Loan Products Reviewed
Agricultural loans, including loans secured by farmland, is the bank’s largest loan category, representing 71.9 percent of total loans according to the December 31, 2018 Consolidated Reports of Condition and Income (Call Report). Commercial and industrial loans, including loans secured by nonfarm nonresidential properties, account for the second largest loan category, at 17.3 percent, and 1-4 family residential loans are the third largest category, representing 5.5 percent of total loans. The remainder of the loan portfolio is comprised of consumer loans at 5.3 percent.
Bank records show that the loan mix changed somewhat since the prior evaluation based on the December 31, 2012 Call Report. While agricultural loan volume slightly decreased by 1.0 percent, commercial loan volume increased by 8.6 percent. Residential and consumer loan volume decreased by 6.3 and 1.3 percent respectively. Management indicated that the slight increase in commercial loan volume is attributed to a large commercial loan originated in 2017, and the decrease in residential real estate loans is attributed to the bank’s 2015 decision to refer home mortgage loans to Iowa Bankers Mortgage Corporation.
Based on Call Report data and bank records, examiners concluded that Community State Bank’s primary product type is small farm loans, which is consistent with bank management’s stated lending focus and business strategy. Home mortgage, small business, and consumer loans do not represent a major product line and are not emphasized according to the battle’s business strategy. To confirm, examiners noted that for loan originations from January 1, 2018, through December 31, 2018, 116 small farm loans totaling approximately $9.2 million were originated, accounting for 91.3 percent of the universe of loans by number and 86.7 percent by dollar volume. In comparison, ottly 8 small business loans totaling $1.3 million, accounting for 6.3 percent by number and 12.2 percent by dollar volume, and 3 home mortgage loans totaling $117 thousand, accounting for 2.4 percent by number and 1.1 percent by dollar volume, were originated in 2018. To analyze the bank’s performance under the Borrower Profile criterion, examiners selected a sample of 47 small farm loans totaling approximately $2.9 million originated in 2018. This sample was considered representative of the bank’s performance during the entire evaluation period. D&B data for 2018 provided a standard of comparison for the sampled small farm loans.
For CRA evaluation purposes, small farm and small business loans are defined using definitions in the Call Report. These definitions, as well as that for home mortgage loans, are detailed in the Glossary at the end of this document. Examiners obtained the data necessary for this evaluation from an automated loan download, individual customer loan files, and bank management. Examiners reviewed the number and dollar volume of small farm loans. While the number and dollar volume of loans are presented, examiners emphasized performance by number of loans, which is a better indicator of the number of farms served.
Description of Institution
Background
Community State Bank is a privately-owned institution headquartered in Paton, Iowa, and has no affiliates. The institution received a “Satisfactory” rating at its preceding FDIC Performance Evaluation dated February 19, 2013, based on Interagency Small Institution Examination Procedures.
Operations
Community State Barile operates from its sole location in Paton, Iowa. The bank did not open or close any branches and no merger or acquisition activities have occurred since the previous evaluation. Lending products and services offered include agricultural, commercial, residential real estate, and consumer loans, with a primary business focus on agricultural lending. The bank refers home mortgage loans to the secondary market. The bank provides a variety of deposit related products that include checking, savings, money market accounts, and certificates of deposit. Alternative balancing services include online and telephone banking. Community State Bank does not operate any automated teller machines.
Ability and Capacity
Community State Bank’s December 31, 2018 Call Report reflected total assets of $46.1 million, total loans of $16.6 million, and total deposits of $38.0 million. Total assets increased 12.6 percent, total loans increased by 15.5 percent, and total deposits increased by 14.6 percent since the previous evaluation. Management attributed deposit growth to a strong agricultural economy in the years leading up to the previous evaluation, a loyal depositor base that has been able to consistently profit in recent years, and competitive deposit rates. The loan portfolio distribution is reflected in the following table.
Loan Portfolio Distribution as of 12/31/2018
| Loan Category | $(000s) | % |
|---|---|---|
| Construction and Land Development | 0 | 0 |
| Secured by Farmland | 2135 | 12.9 |
| Secured by 1-4 Family Residential Properties | 909 | 5.5 |
| Secured by Multifamily (5 or more) Residential Properties | 0 | 0 |
| Secured by Nonfarm Nonresidential Properties | 1908 | 11.5 |
| Total Real Estate Loans | 4952 | 29.9 |
| Commercial and Industrial Loans | 965 | 5.8 |
| Agricultural Loans | 9792 | 59.0 |
| Consumer Loans | 875 | 5.3 |
| Other Loans | 0 | 0 |
| Lease: Financing Receivables (net of unearned income) | 0 | 0.0 |
| Less: Unearned Income | (0) | (0.0) |
| Total Loans | 16,584 | 100.0 |
Examiners did not identify any financial, legal, or other impediments that affect the bank’s ability to meet assessment area credit needs.
Description of Assessment Area
The CRA requires each financial institution to define one or more assessment areas within which its CRA performance will be evaluated. Community State Bank designated nine census tracts in its assessment area in central Iowa, a nonmetropolitan area. The assessment area includes all four Greene County census tracts 801, 802, 803, and 805; census tracts 103 and 104 in the southern portion of Webster County; census tract 9605 in the southwest portion of Han1ilton County; and census tracts 207 and 201 in the northern portion of Boone County. The assessment area has not changed since the previous evaluation. The following sections discuss demographic and economic information for the assessment area. This information was considered in evaluating the bank’s lending performance.
Economic and Demographic Data
According to 2015 American Community Survey (ACS) data, the assessment area is comprised of 8 middle-income census tracts and 1 upper-income census tract (census tract 201 in Boone County). Since the previous evaluation, three census tracts had income classification changes between the 2010 U.S. Census and the 2015 ACS data. Specifically, the 2010 U.S. Census designated census tracts 207, 802, and 803 as upper income. All three census tracts were reclassified as middle-income in response to the ACS. The bank’s sole office is located in middle-income census tract 801 in northern Greene County, near the intersection of Boone, Hamilton, and Webster counties. The following table illustrates select demographic characteristics of the assessment area.
Demographic Information of the Assessment Area
| Demographic Characteristics | # | Low % of # | Moderate % of # | Middle % of # | Upper % of # | NA* % of # |
|---|---|---|---|---|---|---|
| Geographies (Census Tracts) | 9 | 0.0 | 0.0 | 88.9 | 11.1 | 0.0 |
| Population by Geography | 24,265 | 0.0 | 0.0 | 88.6 | 11.4 | 0.0 |
| Housing Units by Geography | 11,564 | 0.0 | 0.0 | 88.7 | 11.3 | 0.0 |
| Owner-Occupied Units by Geography | 7,939 | 0.0 | 0.0 | 88.2 | 11.8 | 0.0 |
| Occupied Rental Units by Geography | 2,266 | 0.0 | 0.0 | 89.6 | 10.4 | 0.0 |
| Vacant Units by Geography | 1,359 | 0.0 | 0.0 | 89.5 | 10.5 | 0.0 |
| Businesses by Geography | 1,961 | 0.0 | 0.0 | 85.7 | 14.3 | 0.0 |
| Farms by Geography | 596 | 0.0 | 0.0 | 86.7 | 13.3 | 0.0 |
| Family Distribution by Income Level | 6,886 | 18.3 | 17.7 | 23.6 | 40.4 | 0.0 |
| Household Distribution by Income Level | 10,205 | 23.9 | 15.7 | 19.6 | 40.8 | 0.0 |
| Median Family Income – Nonmetropolitan Iowa | $61,934 | Median Housing Value | $104,065 | |||
| Median Gross Rent | $579 | |||||
| Families Below Poverty Level | 8.0% | |||||
As shown above, the population in the assessment area in 2015 was 24,265. Some of the communities in the assessment area include Dayton, Grand Junction, Jefferson, Paton, Stratford, and Ogden.
The analysis of small farm loans under the Borrower Profile criterion compares the distribution of farms by the gross annual revenue level. According to 2018 D&B data, there were 596 farms in the assessment area. The gross annual revenues for these farms are listed below.
- 97.8 percent have $1 million or less
- 1.3 percent has more than $1 million
- 0.8 percent have unknown revenues
According to 2018 D&B data, the largest industries in the assessment area as a percentage of total industries are: services at 33.1 percent; agriculture, forestry, and fishing at 23.3 percent; and retail trade at 8.9 percent. In addition, 78.7 percent of area farms and businesses have 4 or fewer employees, and 89.9 percent operate from a single location.
The 2012 Agricultural Census data shows that approximately 48 percent of all agricultural operations in the counties within the assessment area do not borrow, thus no more than 52 percent of agricultural operations in the assessment area have credit needs. The data also shows that 58 percent of the farmers in the counties within the assessment area are classified as full time farmers, indicating that the remaining 42 percent likely have other sources of revenue.
A comparison of 2007 and 2012 Agricultural Census reports reveals that the number of farms increased by 1.0 percent, and the average size of farms decreased by 7.0 percent in Boone County. The number of farms in Greene County decreased by 5.0 percent; with the average size farm increased by 6.0 percent. The number of Hamilton County farms decreased by 14.0 percent; and 9.0 percent by the average size of farms. Lastly, the nun1ber of farms in Webster County decreased by 12.0 percent; with the average size of farms increasing by 2.0 percent. During the same period, the State of Iowa reported a 5.0 percent decrease in the number of farms, and a 4.0 percent increase in the average size of farms.
The assessment area’s unemployment rate is relatively low, reflecting a healthy economy. As illustrated in the following table, the unemployment rates for the counties in the assessment area generally declined from 2016 to 2018, similar to the State of Iowa and the nation as a whole. The unemployment rates of the assessment area counties are similar to the rate for Iowa and well below the national rate.
Average Unemployment Rates
| Area | 2016 | 2017 | 2018 |
|---|---|---|---|
| % | % | % | |
| Boone County | 2.8 | 2.5 | 2.2 |
| Greene County | 3.1 | 2.8 | 2.3 |
| Hamilton County | 3.8 | 3.3 | 2.7 |
| Webster County | 4.0 | 3.8 | 3.2 |
| Iowa Average | 3.6 | 3.1 | 2.6 |
| National Average | 4.9 | 4.4 | 3.8 |
Competition
The market for financial services is highly competitive in the assessment area. According to the FDIC’s June 2018 Deposit Market Share Report data, there were 20 financial institutions operating 46 offices in Boone, Greene, Hamilton, and Webster counties. These institutions range from small community banks to larger financial institutions operating branch locations in the area. Community State Bank ranks 17th with 1.7 percent of the deposit market share.
Community Contact
As part of the evaluation process, examiners contact third parties active in the assessment area to help identify credit and community development needs. This information assists examiners in determining whether local financial institutions are responsive to these needs. It also shows what credit and community development opportunities are available. In conjunction with a recent evaluation, examiners contacted an economic development representative familiar with the counties that make up the assessment area.
The community contact said that the economy is relatively stable but several counties have had declining populations for the last decade. The unemployment rate is low and there are not enough qualified workers for some employment openings. The contact said there are a few new companies in surrounding counties that have created movement in the workforce by offering higher paying jobs. The contact also said that there are many low-income jobs where the workforce can only afford to rent. The contact indicated that with the unemployment rate being so low, fewer individuals take the risk of opening new businesses, and that there is little to no low- and moderate-income housing available, including rentals. The contact said that the area is dependent on the agricultural economy and that farmers are not doing well as a result of the trade tariffs. Farmers are also concerned about declining crop prices. Overall, the contact said that farm credit is the primary credit need, with limited demand for business and home mortgage loans. Lastly, the contact indicated that community organizations and institutions should support low- and moderate-income housing opportunities that become available.
Considering the information from the community contact, bank management, and demographic and economic data, examiners determined that small farm loans are the primary credit need of the assessment area, and to a lesser extent, small business and home mortgage credit needs.
Conclusions on Performance Criteria
LENDING TEST
Community State Bank’s performance under the Lending Test is reasonable. The bank’s reasonable Loan-to-Deposit Ratio and Borrower Profile performance primarily support this conclusion.
Loan-to-Deposit Ratio
Community State Bank’s loan-to-deposit ratio is reasonable considering the bank’s size, financial condition, and assessment area credit needs. As shown in the following table, Community State Bank’s net loan-to-deposit ratio, calculated from Call Report data, averaged
39.9 percent over the past 23 calendar quarters from March 31, 2013, to September 30, 2018. The ratio has steadily climbed over the review period from a low of 25.7 percent as of March 31, 2013, to a high of 50.5 percent as of December 31, 2015.
Examiners compared the bank’s average net loan-to-deposit ratio to three comparable institutions to help evaluate its reasonableness. Comparable institutions were selected based on their asset size, geographic location, or lending focus. The following table provides details.
Loan to Deposit Ratio Comparison
| Bank | Total Assets as of 09/30/18 $(000s) | Average Not Loan-to-Deposit Ratio (%) |
|---|---|---|
| Community State Bank, Paton, Iowa | 43,255 | 39.9 |
| Boone Bank & Trust Co., Boone, Iowa | 141,990 | 50.6 |
| Security Savings Bank, Gowrie, Iowa | 124,896 | 64.7 |
| Manson State Bank, Manson, Iowa | 34,078 | 41.3 |
Community State Bank’s average net loan-to-deposit ratio is the lowest of the comparable and lower than the 49.0 percent recorded at the previous evaluation. However, examiners considered an increasing quarterly trend in the ratio since the last evaluation, and the following context information when evaluating this criterion. As mentioned earlier, management indicated that the increase in deposits from the prior evaluation is due to a strong agricultural economy in years 2006-2012, a loyal depositor base that has been able to consistently profit in recent years, and competitive deposit rates. Management further indicated that the slight increase in lending (relative to deposits) is due to a “soft” agricultural economy; the types of loans requested by farmers have shifted to shorter terms and lines of credit, which may not be reflected in the most recent Call Report data; operating lines of credit are paid down after harvest and will increase noticeably in November and December as agricultural cooperatives in the area offer incentives to encourage farmers to pre-pay for 2019 inputs (reflected in noticeable, cyclical spikes of the loan to-deposit ratio in year-end Call Report data); and a significant amount of loans, approximately 7.5% of the banks agricultural portfolio at the time, was unexpectedly paid off in early 2017.
Management indicated that they will originate loans to all qualified borrowers; however, they have not been aggressively seeking new loan customers due to the depressed agricultural economy. Management stated inquiries for home mortgage loans are approximately 3-4 per year and will be referred when eligible; oftentimes, the residential real estate in question will involve acreage with outbuildings that is ineligible for the secondary market. When the bank is unable to originate an agricultural loan due to a borrower’s request for a long-term fixed-rate loan, the bank will refer the loan.
Assessment Area Concentration
The bank made a substantial majority of its small farm loans, by number and dollar volume, within its assessment area, reflecting management’s commitment to lend within the local communities. See the following table.
Lending Inside and Outside of the Assessment Area
| Number of Loans | Dollar Amount of Loans ($(000s) | ||||||||||
| Loan Category | Inside | Outside | Total | Inside | Outside | Total | |||||
| # | % | # | % | # | $ | % | $ | % | $(000s) | ||
| Small Farm | 113 | 97.4 | 3 | 2.6 | 116 | 8,878 | 96.8 | 289 | 3.2 | 9,167 | |
Borrower Profile
Overall, the distribution of borrowers reflects reasonable penetration among farms of different revenue sizes. Examiners focused on the percentage, by number, of small farm loans with gross annual revenues of $1 million or less. A sample of loans originated inside the assessment area was analyzed.
The distribution of small farm borrowers reflects reasonable penetration of loans to farms with gross annual revenues of $1 million or less. The following table shows that 97.8 percent of the sampled small farm loans were originated to farms with gross annual revenues of $1 million or less. This performance is consistent with the 2018 D&B data.
Distribution of Small Farm Loans by Gross Annual Revenue Category
| Gross Revenue Level | % of Farms | # | % | $(000s) | % |
|---|---|---|---|---|---|
| <=$1,000,000 | 97.8 | 45 | 97.8 | 2,430 | 89.3 |
| >1,000,000 | 1.3 | 1 | 2.2 | 290 | 10.7 |
| Revenue Not Available | 0.8 | 0 | 0.0 | 0 | 0.0 |
| Total | 100.0 | 46 | 100.0 | 2,720 | 100.0 |
Geographic Distribution
The assessment area does not contain any low- or moderate-income geographies. Therefore, examiners did not evaluate the geographic distribution of loans as a review would not have resulted in meaningful conclusions.
Response to Complaints
The bank did not receive any CRA-related complaints since the previous evaluation; therefore, this criterion did not affect the CRA rating.
Discriminatory or Other Illegal Credit Practices Review
Examiners did not identify any evidence of discriminatory or other illegal credit practices; therefore, this area of review did not affect the institution’s overall CRA rating.
Glossary
Aggregate Lending: The number of loans originated and purchased by all reporting lenders in specified income categories as a percentage of the aggregate number of loans originated and purchased by all reporting lenders in the metropolitan area/assessment area.
Area Median Income: The median family income for the MSA, if a person or geography is located in an MSA; or the statewide nonmetropolitan median family income, if a person or geography is located outside an MSA.
Assessment Area: A geographic area delineated by the bank under the requirements of the Community Reinvestment Act.
Census Tract: A small, relatively permanent statistical subdivision of a county or equivalent entity. The primary purpose of census tracts is to provide a stable set of geographic units for the presentation of statistical data. Census tracts generally have a population size between 1,200 and 8,000 people, with an optimum size of 4,000 people. Census tract boundaries generally follow visible and identifiable features, but they may follow nonvisible legal boundaries in some instances. State and county boundaries always are census tract boundaries.
Combined Statistical Area (CSA): A combination of several adjacent metropolitan statistical areas or micropolitan statistical areas or a mix of the two, which are linked by economic ties.
Consumer Loan(s): A loan(s) to one or more individuals for household, family, or other personal expenditures. A consumer loan does not include a home mortgage, small business, or small farm loan. This definition includes the following categories: motor vehicle loans, credit card loans, home equity loans, other secured consumer loans, and other unsecured consumer loans.
Core Based Statistical Area (CBSA): The county or counties or equivalent entities associated with at least one core (urbanized area or urban cluster) of at least 10,000 population, plus adjacent counties having a high degree of social and economic integration with the core as measured through commuting ties with the counties associated with the core. Metropolitan and Micropolitan Statistical Areas are the two categories of CBSAs.
Family: Includes a householder and one or more other persons living in the same household who are related to the householder by birth, marriage, or adoption. The number of family households always equals the number of families; however, a family household may also include non-relatives living with the family. Families are classified by type as either a married-couple family or other family. Other family is further classified into “male householder” (a family with a male householder and no wife present) or “female householder” (a family with a female householder and no husband present).
Family Income: Includes the income of all members of a family that are age 15 and older.
FFIEC-Estimated Income Data: The Federal Financial Institutions Examination Council (FFIEC) issues annual estimates which update median family income from the metropolitan and nonmetropolitan areas. The FFIEC uses American Community Survey data and factors in information from other sources to arrive at an annual estimate that more closely reflects current economic conditions.
Full-Scope Review: A full-scope review is accomplished when examiners complete all applicable interagency examination procedures for an assessment area. Performance under applicable tests is analyzed considering performance context, quantitative factors (for example, geographic distribution, borrower profile, and total number and dollar amount of investments), and qualitative factors (for example, innovativeness, complexity, and responsiveness).
Geography: A census tract delineated by the United States Bureau of the Census in the most recent decennial census.
Home Mortgage Disclosure Act (HMDA): The statute that requires certain mortgage lenders that do business or have banking offices in a metropolitan statistical area to file annual summary reports of their mortgage lending activity. The reports include such data as the race, gender, and the income of applicants; the amount of loan requested; and the disposition of the application (approved, denied, and withdrawn).
Home Mortgage Disclosure Loan Application Register (HMDA LAR): The HMDA LARs record all applications: received for residential purchase, refinance, home improvement, and temporary-to-permanent construction loans.
Home Mortgage Loans: Includes home purchase and home improvement loans as defined in the HMDA regulation. This definition also includes multi-family (five or more families) dwelling loans, loans to purchase manufactured homes, and refinancing of home improvement and home purchase loans.
Household: Includes all persons occupying a housing unit. Persons not living in households are classified as living in group quarters. In 100 percent tabulations, the count of households always equals the count of occupied housing units.
Household Income: Includes the income of the householder and all other persons that are age 15 and older in the household, whether related to the householder or not. Because many households are only one person, median household income is usually less than median family income.
Housing Unit: Includes a house, an apartment, a mobile home, a group of rooms, or a single room that is occupied as separate living quarters.
Limited-Scope Review: A limited scope review is accomplished when examiners do not complete all applicable interagency examination procedures for an assessment area. Performance under applicable tests is often analyzed using only quantitative factors (for example, geographic distribution, borrower profile, total number and dollar amount of investments, and branch distribution).
Low-Income: Individual income that is less than 50 percent of the area median income, or a median family income that is less than 50 percent in the case of a geography.
Market Share: The number of loans originated and purchased by the institution as a percentage of the aggregate number of loans originated and purchased by all reporting lenders in the metropolitan area/assessment area.
Median Income: The median income divides the income distribution into two equal parts, one having incomes above the median and other having incomes below the median.
Metropolitan Division (MD): A county or group of counties within a CBSA that contain(s) an urbanized area with a population of at least 2.5 million. A MD is one or more main/secondary counties representing an employment center or centers, plus adjacent counties associated with the main/secondary county or counties through commuting ties.
Metropolitan Statistical Area (MSA): CBSA associated with at least one urbanized area having a population of at least 50,000. The MSA comprises the central county or counties or equivalent entities containing the core, plus adjacent outlying counties having a high degree of social and economic integration with the central county or counties as measured through commuting.
Micropolitan Statistical Area: CBSA associated with at least one urbanized area having a population of at least 10,000, but less than 50,000.
Middle-Income: Individual income that is at least 80 percent and less than 120 percent of the area median income, or a median family income that is at least 80 and less than 120 percent in the case of a geography.
Moderate-Income: Individual income that is at least 50 percent and less than 80 percent of the area median income, or a median family income that is at least 50 and less than 80 percent in the case of a geography.
Multi-family: Refers to a residential structure that contains five or more units.
Nonmetropolitan Area: All areas outside of metropolitan areas. The definition of nonmetropolitan area is not consistent with the definition of rural areas. Urban and rural classifications cut across the other hierarchies. For example, there is generally urban and rural territory within metropolitan and nonmetropolitan areas.
Owner-Occupied Units: Includes units occupied by the owner or co-owner, even if the unit has not been fully paid for or is mortgaged.
Rated Area: A rated area is a state or multistate metropolitan area. For an institution with domestic branches in only one state, the institution’s CRA rating would be the state rating. If an institution maintains domestic branches in more than one state, the institution will receive a rating for each state in which those branches are located. If an institution maintains domestic branches in two or more states within a multistate metropolitan area, the institution will receive a rating for the multistate metropolitan area.
Rural Area: Territories, populations, and housing units that are not classified as urban.
Small Business Loan: A loan included in “loans to small businesses” as defined in the Consolidated Report of Condition and Income (Call Report). These loans have original amounts of $1 million or less and are either secured by nonfarm nonresidential properties or are classified as commercial and industrial loans.
Small Farm Loan: A loan included in “loans to small farms” as defined in the instructions for preparation of the Consolidated Report of Condition and Income (Call Report). These loans have original amounts of $500,000 or less and are either secured by farmland, including farm residential and other improvements, or are classified as loans to finance agricultural production and other loans to farmers.
Upper-Income: Individual income that is 120 percent or more of the area median income, or a median family income that is 120 percent or more in the case of a geography.
Urban Area: All territories, populations, and housing units in urbanized areas and in places of 2,500 or more persons outside urbanized areas. More specifically, “urban” consists of territory, persons, m1d housing units in places of 2,500 or more persons incorporated as cities, villages, boroughs (except in Alaska and New York), and towns (except in the New England states, New York, and Wisconsin).
“Urban” excludes the rural portions of “extended cities”; census designated place of 2,500 or more persons; and other territory, incorporated or unincorporated, including in urbanized areas.