Section 25.26 - Small bank and savings association performance standards(a)Performance criteria -(1)Small banks and savings associations that are not intermediate small banks or savings associations. The appropriate Federal banking agency evaluates the record of a small bank or savings association that is not, or that was not during the prior calendar year, an intermediate small bank or savings association, of helping to meet the credit needs of its assessment area(s) pursuant to the criteria set forth in paragraph (b) of this section.(2)Intermediate small banks and savings associations. The appropriate Federal banking agency evaluates the record of a small bank or savings association that is, or that was during the prior calendar year, an intermediate small bank or savings association, of helping to meet the credit needs of its assessment area(s) pursuant to the criteria set forth in paragraphs (b) and (c) of this section.(b)Lending test. A small bank's or savings association's lending performance is evaluated pursuant to the following criteria: (1) The bank's or savings association's loan-to-deposit ratio, adjusted for seasonal variation, and, as appropriate, other lending-related activities, such as loan originations for sale to the secondary markets, community development loans, or qualified investments;(2) The percentage of loans and, as appropriate, other lending-related activities located in the bank's or savings association's assessment area(s);(3) The bank's or savings association's record of lending to and, as appropriate, engaging in other lending-related activities for borrowers of different income levels and businesses and farms of different sizes;(4) The geographic distribution of the bank's or savings association's loans; and(5) The bank's or savings association's record of taking action, if warranted, in response to written complaints about its performance in helping to meet credit needs in its assessment area(s).(c)Community development test. An intermediate small bank's or savings association's community development performance also is evaluated pursuant to the following criteria:(1) The number and amount of community development loans;(2) The number and amount of qualified investments;(3) The extent to which the bank or savings association provides community development services; and(4) The bank's or savings association's responsiveness through such activities to community development lending, investment, and services needs.(d)Small bank or savings association performance rating. The appropriate Federal banking agency rates the performance of a bank or savings association evaluated under this section as provided in appendix A of this part.