COMMUNITY SAVINGS BANK

101 E. Union St.

Edgewood, Iowa 52042

 

ASSESSMENT AREA

Clayton County:  All Census Tracts

Delaware County: All Census Tracts

Linn County:  All Census Tracts

Dubuque County:  Census Tracts 0102.01, 0102.02, 0104.00, and 0105.00

(March 2018 gls)

 

OFFICE CLOSINGS AND OPENINGS DURING THE PAST TWO YEARS

Greeley Office at 107 Front St. Greeley, IA was closed February 14, 2020

Manchester Office at 201 E. Main St., Manchester, IA was closed February 17, 2020

Manchester Office at 211 E. Main St., Manchester, IA was opened February 18, 2020

(3/2020 gls)

 

LOAN TO DEPOSIT RATIO

March 31, 2020 - 85%

June 30, 2020 – 86%

September 30, 2020 – 88%

December 31, 2020 – 85%

(3/2021 kjb) 

 

HOME MORTGAGE DISCLOSURE ACT NOTICE

 The HMDA data about our residential mortgage lending are available online for review. The data shows geographic distribution of loans and applications; ethnicity, race, sex, age, and income of applicants and borrowers; and information about loan approvals and denials. HMDA data for many other financial institutions are also available online. For more information, visit the Consumer Financial Protection Bureau’s Website (www.consumerfinance.gov/hmda).

(03/2021 kjb)

 

COMMUNITY SAVINGS BANK BRANCHES

Cedar Rapids*                                         Monday thru Friday         Saturday

3414 Mount Vernon Road SE                   9:00 AM – 5:00 PM         8:30 AM – 11:00 AM

Cedar Rapids, Iowa 52403     

Phone: 319-363-0577

Fax: 319-363-0578

MSA 16300, Census Tract .00016  

 

Coggon*                                   Monday thru Thursday/Lobby                Friday/Lobby                            Saturday/Lobby     

203 East Main Street                9:00 AM – 4:00 PM                                9:00 AM – 5:00PM                    8:30 AM – 11:00 AM

PO Box 139                                

Coggon, Iowa 52218                 Monday thru Thursday/Drive-Up           Friday/Drive-Up                        Saturday/Drive-Up

Phone: 319-435-2551               8:30 AM – 4:00PM                                 8:30 AM – 5:00 PM                  8:30 AM – 11:00 AM

Fax: 319-435-2555                                                                          

MSA 16300, Census Tract 0101.00

Dyersville*                                  Monday thru Thursday                            Friday                                           Saturday

1211 12th Avenue SE               8:30 AM – 4:00 PM                                     8:30 AM – 5:00PM                    8:30 AM – 11:00 AM

Suite 103

Dyersville, Iowa 52040

Phone: 563-875-6296

Fax: 563-875-6272

MSA 20220, Census Tract 0105.00

Earlville*                                     Monday thru Thursday                             Friday                                           Saturday

106 Northern Avenue              9:00 AM – 3:00 PM                                     9:00 AM – 4:00 PM                   8:30 AM – 11:00 AM

Earlville, Iowa 52041

Phone: 563-923-3145

Fax: 563-923-4945

MSA NA (outside of MSA), Census Tract 9501.00

 

Edgewood*                               Monday thru Friday                                                                                         Saturday

101 East Union Street              9:00 AM – 3:00 PM                                                                                           8:30 AM – 11:00 AM

Edgewood, Iowa 52042

Phone: 563-928-6425

Fax: 563-928-6240                   

MSA NA (outside of MSA), Census Tract 9502.00

 

Garnavillo*                                 Monday thru Thursday/Lobby                Friday                                           Saturday

101 South Main Street            8:30 AM – 4:00 PM                                     8:30 AM – 5:00PM                    Not Open

Garnavillo, Iowa 52049

Phone: 563-964-2341

Fax: 563-964-2485

MSA NA (outside of MSA), Census Tract 0701.00

 

Guttenberg*                              Monday thru Thursday                             Friday                                          Saturday

502 South Highway 52             8:30 AM – 4:00 PM                                     8:30 AM – 5:00 PM                   Not Open

Guttenberg, Iowa 52052

Phone: 563-252-1048

MSA NA (outside of MSA), Census Tract 0704.00

 

Manchester*                              Monday thru Thursday                             Friday                                           Saturday

221 East Main Street                9:00 AM – 4:00 PM                                    9:00 AM – 5:00 PM                   8:30 AM – 11:00 AM

Manchester, Iowa 52057

Phone: 563-927-4014

Fax: 563-927-2411

MSA NA (outside of MSA), Census Tract 9503.00

 

Marion*                                      Monday thru Friday                                                                                         Saturday

1295 Blairs Ferry Road            8:30 AM – 5:00 PM                                                                                           Not Open

Marion, Iowa 52302

Phone: 319-447-2551

Fax: 319-447-2556

MSA 16300, Census Tract 0003.00

 

Robins*                                       Monday thru Friday                                                                                         Saturday

101 Robins Square Court        9:00 AM – 5:00 PM                                                                                           8:30 AM – 11:00 AM

Robins, Iowa 52328

Phone: 319-294-2783

Fax: 319-294-2784

MSA 16300, Census Tract 0002.06

 

*24 Hour ATM Available

 

COMMUNITY SAVINGS BANK TOUCH SCREEN LOCATIONS

 

Cedar Rapids*                                              Monday thru Friday                                                                       Saturday

3414 Mount Vernon Road SE                   8:30 AM – 5:00 PM                                                                         8:30 AM – 11:00 AM

Cedar Rapids, Iowa 52403     

Phone: 319-363-0577

Fax: 319-363-0578

MSA 16300, Census Tract .00016                                                                                                     

 

Guttenberg*                                                Monday thru Friday                                                                       Saturday

502 South Highway 52                               8:30 AM – 5:00 PM                                                                         8:30 AM – 11:00 AM               

Guttenberg, Iowa 52052

Phone: 563-252-1048

MSA NA (outside of MSA), Census Tract 0704.00

 

Manchester*                                                Monday thru Friday                                                                       Saturday

221 East Main Street                                  8:30 AM – 5:00 PM                                                                        8:30 AM – 11:00 AM Manchester, Iowa 52057

Phone: 563-927-4014

Fax: 563-927-2411

MSA NA (outside of MSA), Census Tract 9503.00

 

(03/2021 kjb)

 

COMMUNITY SAVINGS BANK SERVICE CHARGE MENU

 

Account activity printout (current month) *                                                                         $1.87

Account balancing assistance ($10.00 min.) per hour *                                                   $18.69

Account Closed within 90 days *                                                                                               $14.01

(Charge not applicable to the following checking account types:

Simply Free Checking, Classic 50 Checking, VIP Direct Checking,

Ultimate Interest Checking, Simply Free Business Checking,

Business Interest Checking and Commercial Checking.)

 

Account Research ($10.00 min.)/per hour                                                                            $18.69

Bank Sweep Manager                                                                                                                     $28.00

Cashier’s Check – (non CSB Bankclub Member)                                                                  $5.00

Check Cashing non-customer ($5.00 min.)                                                                            3% of amount

Coin Counting non-customers ($5.00 min.)                                                                           5% of amount

Copy of extra statement * (per month)                                                                                  $1.87

Counter Checks                                                                                                                                  $1.00 per 5 checks

CSB Debit Card- Annual Fee * (2 card limit)                                                                          $12.00

CSB Debit Card Replacement * (per card)                                                                              $18.69

CSB Debit Card Chargeback Research * (per hour)                                                            $18.69

CSB Debit Card Hotcard * (includes re-issuance fee)                                                        $18.69

Fax (per page)                                                                                                                                     $2.00

Foreign/Canadian deposited items *                                                                                       $23.37

Garnishments/Levies                                                                                                                      $50.00

Gift Card                                                                                                                                                $4.95

Inactive Account Fee (balance less $100.00 & no activity for 90 days)                     $10.00

(Charge not applicable to the following checking account types:

Simply Free Checking, Classic 50 Checking, VIP Direct Checking,

Ultimate Interest Checking, Simply Free Business Checking,

Business Interest Checking and Commercial Checking, Savings, and

Money Market accounts)

 

Medallion Signature                                                                                                                        $10.00

Mortgage amortization schedule                                                                                              $10.00

Night Deposit Key Deposit/Lost                                                                                                 $25.00

Night Deposit Bag (Locking)                                                                                                         $25.00

Night Deposit Bag (Zipper)                                                                                                           $5.00

Notary (Non-customer)                                                                                                                  $2.00

Overdraft – per item (Consumer limit of 5 per day) ***                                                 $30.00

Outgoing ACH Recurring (per item)                                                                                          $5.00

Personal Money Order (under $5000.00)– (non CSB Bankclub Member)               $3.00

Photocopy (Black/White)                                                                                                              $.25

Photocopy (Color)                                                                                                                             $.50

Pre-Authorized Automatic Transfer to avoid Overdraft Charge*                                $4.67

Returned deposited item-charge back- waived if use Checkmarc collection         $4.00

Return Item (NSF)                                                                                                                             $30.00

Safe Deposit (Replacement key)                                                                                                $15.00

 

Select Line of Credit- Annual Fee                                                                                               $40.00

Special Statement cut-off*                                                                                                           $4.67

Special Statement handling (waived if E-statement) *                                                    $4.67

Stop Payment*                                                                                                                                   $28.04

Travel Card Purchase Card                                                                                                            $9.95

Travel Card Reload Card                                                                                                                $4.95

Wire Transfer Domestic outgoing                                                                                             $25.00

Wire Transfer International Outgoing                                                                                     $50.00

Undeliverable Mail Fee                                                                                                                  $3.00

Personalized Checks, cost will vary.

*Applicable service charges are subject to Iowa State tax, Local Option tax, and Iowa School Local Option Tax

***Overdrafts can be created by check, in-person withdrawal, ATM withdrawal, or other electronic means.

Feb 1, 2021

(03/2021 kjb)

 

COMMUNITY SAVINGS BANK MORTGAGE LOAN PROGRAMS

 

The following mortgage loan programs are offered by Community Savings Bank:

  • Conventional Uninsured (Less than 80% LTV Loans)
  • Conventional Insured (Loans with LTV’s of greater than 80% insured by Private Mortgage Insurance)
  • In-house Mortgages (For borrowers that may not meet secondary market investor guidelines at the current time)
  • IFA FirstHome & IFA FirstHome Plus and Homes for Iowans and Homes for Iowans Plus (Offered through Iowa Finance Authority IFA) Offers low or no down payment fixed rate programs to qualified borrowers.
  • IFA Grants are available in conjunction with IFA FirstHome Plus and IFA Homes for Iowans Plus programs for qualified borrowers. We work with IBMC (Iowa Bankers Mortgage Corporation) for the grant programs.
  • FHLB HomeStart Grant-Funds are available for $7,500 Down Payment Assistance Grants to qualified low-income first-time homeowner households.
  • Mortgage Credit Certificates (MCC’s) Allows the borrower to receive a Federal Tax Credit for a percentage of the interest paid on their home loan. This is funded from year to year by the Iowa Legislature.
  • MHOA Military Home Ownership Assistance Grants administered by the Iowa Finance Authority.
  • USDA Rural Development Guarantee Loans Zero percent down 30-year mortgage with a RD Guarantee instead of PMI
  • Agri-Access Rural Living Loan This program is for rural homes that appraisals may not meet the standard secondary market criteria due to number of acres. We work with IBMC for this program.
  • HOAP Program (forgivable grant for improvements—offered through cities)
  • Community Seconds Program for cities that are offering incentive to build or rehab in certain parts of the city.
  • OSWAP (Onsite Wastewater Assistance Program) Low-interest loans for on-site septic system replacement.

We are able to offer most loan programs offered through the following secondary market investors: Conforming, non-conforming loans and government loans.

Fannie Mae, Universal Lending, AgriAccess, Iowa Finance Authority and Iowa Bankers Mortgage Corporation.

Additionally, we are always looking for new investors, and new programs, that will help a wider variety of borrowers with their mortgage financing needs. This would include low-income borrowers, borrowers with better incomes but no/low down payment, borrowers seeking jumbo financing, and everyone in-between.

 

(03/2021 kjb)

 

COMMUNITY SAVINGS BANK SERVICES PROVIDED

 

Checking Accounts                                                   Savings Accounts                                                       Wealth Management                                                                                 

Individual Retirement Accounts                         Private Business Account Manager                   Money Orders

 

Cashier’s Checks                                                        Stop Payment Orders                                              Wire Transfer Service

 

Overdraft Protection                                               Corporate Sweep Manager                                  Private Education Loans

 

Gov’t Guaranteed Student Loan Access          Direct Deposit                                                             ACH Origination

 

Safe Deposit Box                                                       Night Deposit Box                                                     SHAZAM Debit Cards

 

Escrow Service                                                           Notary Service                                                            Tax Collection Service

 

Purchase & Sales of Securities                            Fax Service                                                                   Mobile Banking

 

US Savings Bonds through TreasuryDirect.Gov                                                                                     Mobile Deposit                     

 

Internet Online Banking & Bill Pay                    Pop Money                                                                  Mobile Website

 

Telephone Money Line Banking                         Merchant Remote Capture                                   Direct Business Loans

 

Website Savings Account Applications           Website Consumer Loan Application               Gift Cards

 

Website Mortgage Loan Applications              Credit Cards through Elan                                     Direct Consumer Loans

 

Mortgage Bot Consumer Mortgage Applications                                                                                 Direct Agricultural Loans

 

Website Business Loan Applications                Residential Mortgage Loans                                 HELOC   

 

Merchant Card Processing                                   

 

**We are an Equal Housing Lender and Member FDIC

(03/2021 kjb)

 

 

COMMUNITY SAVINGS BANK DEPOSIT PRODUCTS

 

Personal Checking

 

Simply Free Checking

*Free gift may be reported on a 1099-INT or 1099-MISC. Free gift offer only good on personal and business accounts; corporate accounts do not qualify for these plans.

**Up to $10 credit for checks and debit cards from another financial institution given at the time the checks/debit cards are presented.

VIP Direct Checking

*Free gift may be reported on a 1099-INT or 1099-MISC. Free gift offer only good on personal and business accounts; corporate accounts do not qualify for these plans.

**Up to $10 credit for checks and debit cards from another financial institution given at the time the checks/debit cards are presented.

Ultimate Interest Checking

*Free gift may be reported on a 1099-INT or 1099-MISC. Free gift offer only good on personal and business accounts; corporate accounts do not qualify for these plans.

**Up to $10 credit for checks and debit cards from another financial institution given at the time /the checks/debit cards are presented.

Classic 50 Senior Checking

*Free gift may be reported on a 1099-INT or 1099-MISC. Free gift offer only good on personal and business accounts; corporate accounts do not qualify for these plans.

**Up to $10 credit for checks and debit cards from another financial institution given at the time the checks/debit cards are presented.

Personal Savings

                  Regular Savings Account

Star Plus Money Market Account

Christmas Club Account

  • Set aside little by little, year-round for holiday expenses
  • Competitive interest on entire balance
  • No monthly service fee
  • No minimum balance requirements
  • Make deposits at any time, in any amount you feel comfortable with
  • Avoid holiday-induced debt and stress
  • Funds automatically deposited to a Community Savings Bank account in November*
  • Early withdrawal will result in a penalty*
  • Free online banking
  • Free mobile banking with mobile deposit
  • Free e-statements
  • Free telephone banking
  • $1 minimum deposit to open

*All interest earned will be credited annually. You will forfeit all accrued interest if the account is closed prior to it being credited to your account. Minimum deposit to open the account is $1.00.

Vacation Club Account

  • Set aside little by little, year-round for vacation expenses
  • Competitive interest on entire balance
  • No monthly service fee
  • No minimum balance requirements
  • Make deposits at any time, in any amount you feel comfortable with
  • Rest easy right from the start; avoid unnecessary debt
  • Funds automatically deposited to a Community Savings Bank account in May*
  • Early withdrawal will result in a penalty*
  • Free online banking
  • Free mobile banking with mobile deposit
  • Free e-statements
  • Free telephone banking
  • $1 minimum deposit to open

*All interest earned will be credited annually. You will forfeit all accrued interest if the account is closed prior to it being credited to your account. Minimum deposit to open the account is $1.00.

Youth Savings Account

  • Available to young savers up to 12 years old
  • Competitive interest on entire balance
  • No monthly service fee
  • No minimum balance requirements
  • Establishes the importance and know-how of saving money from an early age
  • Make deposits to enter to win Kids Club prizes every month
  • Get invitations to Kids Club events
  • Learn financial skills with online games
  • Free online banking
  • Free mobile banking with mobile deposit
  • Free e-statements
  • Free telephone banking
  • $50 minimum deposit to open

Play Games — Get Skills

Teach kids ages 5 to 18 financial literacy with online games and activities. Visit BankingKids.com to find puzzles, coloring pages, and more!

                  Health Savings Account (HSA)

  • Greater personal control over healthcare management and expenses
  • Prepare for qualified medical expenses
  • Earn interest above standard savings on entire balance
  • Receive higher rates on larger deposits
  • An HSA provides triple tax savings:
    • Tax deductions when you contribute to your account
    • Tax-free earnings through investment
    • Tax-free withdrawals for qualified medical, dental, vision expenses, and more*
  • Contributions are tax-free and can be made by you, your employer, or a third party
  • Funds can be withdrawn at any time**
  • No monthly service fee
  • No minimum balance requirements
  • Unused funds remain in account year after year; no "use it or lose it" policy
  • Keep your HSA in your name, regardless of career or life changes
  • Federally insured by FDIC
  • $50 minimum deposit to open

Eligibility

Most adults under 65 who are not enrolled in Medicare and are covered under a high-deductible health plan (HDHP) can qualify for an HSA, but it is up to the account holders to determine their own eligibility. Please contact your tax advisor for further eligibility requirements.

*Consult a tax advisor.

**You can withdraw funds at any time for any purpose. However, if funds are withdrawn for reasons other than qualified medical expenses, the amount withdrawn will be included as taxable income, and is subject to a 10% penalty.

                  First-Time Homebuyer Savings Accounts

The State of Iowa has established an Iowa First-Time Homebuyer Savings Account program, which may offer tax advantages on savings for qualified home purchases in Iowa. Accounts may be established by qualifying first-time homebuyers or by others on behalf of qualifying first-time homebuyers. It is important to understand the requirements of the program and you may want to consult your tax advisor.

Learn More About First-Time Homebuyers Savings Account

Home Buyer Savings Includes:

  • No minimum to open.
  • Earn variable interest rates.
  • May claim a deduction for Iowa individual income.

You can learn more about this program by visiting https://tax.iowa.gov/ and searching First-Time Homebuyer Savings Account.

Certificates of Deposit (CDs)

  • Fixed rates, higher than regular savings
  • Receive higher rates by selecting a longer term
  • Provides more guarantee than other risky investments
  • Set aside for future savings goals
  • A wide range of terms available (from 90 days to 5 years)
  • No setup or maintenance fees
  • Early withdrawals subject to penalty*
  • $1,000 minimum deposit to open

*Early withdrawals may result in penalties. Penalties vary depending on the CD.

Individual Retirement Accounts (IRAs)

  • Competitive interest above standard savings rates
  • Traditional and Roth IRA options
  • No setup fees
  • No monthly or annual maintenance fees
  • $5,500 contribution limit per year
  • Additional $1,000 "catch-up" contribution allowed for ages 50+
  • Funds can be used to purchase CDs within IRA
  • No minimum deposit to open

Traditional & Roth IRAs

Traditional IRA

  • No income limits to open
  • No minimum contribution requirement
  • Contributions are tax deductible on state and federal income tax*
  • Earnings are tax deferred until withdrawal (when usually in lower tax bracket)
  • Withdrawals can begin at age 59½
  • Early withdrawals subject to penalty**
  • Mandatory withdrawals at age 70½

Roth IRA

  • Income limits to be eligible to open Roth IRA***
  • Contributions are NOT tax deductible
  • Earnings are 100% tax free at withdrawal*
  • Principal contributions can be withdrawn without penalty*
  • Withdrawals on interest can begin at age 59½
  • Early withdrawals on interest subject to penalty**
  • No mandatory distribution age
  • No age limit on making contributions as long as you have earned income

*Subject to some minimal conditions. Consult a tax advisor. 

**Certain exceptions apply, such as healthcare, purchasing first home, etc.

***Consult a tax advisor.

COVERDELL ESA

College isn’t getting any cheaper. That makes saving for your child’s education so important. Our Coverdell Education Savings Account (ESA) provides a safe, tax-free place to set funds aside — and earn competitive interest. 

  • Set aside funds for your child's education
  • No setup or annual fee
  • Dividends grow tax-free
  • Withdrawals are tax-free and penalty-free when used for qualified education expenses*
  • Designated beneficiary must be under 18 when contributions are made
  • To contribute to an ESA, certain income limits apply**
  • Contributions are not tax deductible
  • $2,000 maximum annual contribution per child
  • The money must be withdrawn by the time he or she turns 30***
  • The ESA may be transferred without penalty to another member of the family
  • $250 minimum deposit to open

*Qualified expenses include tuition and fees, books, supplies, board, etc.

**Consult your tax advisor to determine your contribution limit.

***Those earnings are subject to income tax and a 10% penalty.

Business Checking Accounts

Simply Free Business Checking

*Free gift may be reported on a 1099-INT or 1099-MISC. Free gift offer only good on personal and business accounts; corporate accounts do not qualify for these plans.

**Up to $10 credit for checks and debit cards from another financial institution given at the time the checks/debit cards are presented.

Business Interest Checking

*Free gift may be reported on a 1099-INT or 1099-MISC. Free gift offer only good on personal and business accounts; corporate accounts do not qualify for these plans.

**Up to $10 credit for checks and debit cards from another financial institution given at the time the checks/debit cards are presented.

Commercial Checking

*Free gift may be reported on a 1099-INT or 1099-MISC. Free gift offer only good on personal and business accounts; corporate accounts do not qualify for these plans.

**Up to $10 credit for checks and debit cards from another financial institution given at the time the checks/debit cards are presented.

***Earnings credit based on balance requirements.

Business Savings Accounts

                  Regular Business Savings Account

Business Star Plus Money Market Account

  • Competitive, tiered interest
    • Higher balances earn higher rates
    • Interest accrued daily and paid monthly
  • Enjoy flexibility with enhanced access to funds, including direct check writing:
    • Unlimited in-person withdrawals or by mail
    • 6 free transactions per month by pre-authorized automatic, telephone, checks, drafts, debit cards, or other similar order; $5 per transaction in excess thereafter
  • Avoid the $10.00 monthly service fee by maintaining a $2,500 minimum daily balance
  • Free online banking & bill pay
  • Free mobile banking with mobile deposit
  • Free e-statements
  • Free telephone banking
  • Free Mastercard® debit card
  • $2,500 minimum deposit to open

Business Retirement Accounts

                  Simplified Employee Pension (SEP IRA)

  • Ideal for businesses of any size or self-employed individuals
  • Gain the respect of your employees
  • Help employees reach their retirement savings goals
  • Employee always has complete ownership of all SEP IRA money
  • Earn competitive interest on entire balance
  • Contributions are tax deductible; your business pays no taxes on earnings
    • Contributions made only by the employer
    • Only self-employed may make contributions on their own behalf
  • Little to no documents to file with government
  • Inexpensive to set up and operate
  • Flexible annual contributions – good plan if cash flow is unpredictable
  • Can contribute up to 25% of each participant's annual compensation (earned income)
    • Or, up to the maximum allowable limit for current plan year, whichever is less
    • Must contribute equally for all employees
  • Employee must first establish a traditional IRA, in which the employer will deposit SEP contributions
  • No minimum deposit to open

Savings Incentive Match Plan for Employees (SIMPLE IRA)

  • Available to any small business – generally with 100 or fewer employees
  • Gain the respect of your employees
    • Employees have the option to make self-contributions
    • Help employees reach their retirement savings goals
    • Employee always has complete ownership of all SIMPLE IRA money
  • Earns a competitive interest rate
  • Employer must not have any other retirement plan
  • Minimal paperwork necessary; no filing requirements
  • Inexpensive to set up and operate
  • Lower contribution limits than some other retirement options
  • Employees share responsibility of growing their retirement
  • Each year, employer is required to contribute:
    • Matching contribution up to 3% of compensation, or
    • 2% non-elective contribution for each eligible employee
  • No minimum deposit to open

COMMUNITY SAVINGS BANK LOAN PRODUCTS

Personal Loans

Home Mortgage Loans

  • Competitive rates for home purchase, refinance, or construction
  • Several financing programs available
  • Loan advisors with working knowledge of the local real estate market

Home Equity Loans

  • Competitive rates for short-term or ongoing needs
  • The existing equity in your home is used as collateral
  • Term loan and line of credit options available

Parent Refinance Loan

Student Loans

  • Competitive rates for higher education expenses
  • Private* and Federal student loan options available

Student Loan Consolidation

  • Competitive rates to consolidate and refinance one or multiple loans
  • One easy payment to manage
  • Private and Federal loans are eligible for consolidation

Auto Loans

  • Competitive rates on new or used vehicles*
  • A wide range of terms customized to your unique situation
  • Pre-approval available for extra bargaining power

Personal Term Loans

  • Competitive rates for a wide variety of personal needs
  • Repayment terms customized to fit your unique needs
  • Local decision-making and processing

Business Loans

Small Business Administration (SBA) Loans

  • Government-assisted financing for qualifying businesses
  • A wide range of lending options available
  • Generally lower down payments and extended terms

Business Term Loans

  • Competitive rates for a wide range of business expenses
  • Repayment terms customized to your business needs
  • Local decision-making and processing

Business Lines of Credit

  • Competitive rates for long-term or seasonal business needs
  • Funds available right as you need them
  • Only pay interest on the part that's used

Accounts Receivables Financing

  • Unlocks working capital and enhances cash flow
  • Provides quick access to cash when you need it
  • More flexibility than traditional financing

Commercial Real Estate Loans

  • Competitive rates to build, buy or refinance commercial properties
  • Available for owner-occupied or investment properties
  • Loan advisors with working knowledge of the local real estate market

 

Agricultural Loans

Equipment Loans

  • Competitive rates for new or used equipment
  • Meet needs without cutting into working capital or savings
  • Avoid lapsed periods in production and outdated equipment

 

Agriculture Real Estate Loans

  • Competitive rates to buy or refinance agriculture properties
  • Repayment terms customized to fit your operation's needs
  • Loan advisors with working knowledge of the local real estate market

Operating Lines of Credit

  • Competitive rates for long-term or seasonal agriculture needs
  • Funds available right as you need them
  • Only pay interest on the part that's used

(03/2021 kjb)

 

COMMUNITY SAVINGS BANK ASSESSMENT AREA MAP 2018

 

Community Savings Bank Assessment Map

 

 

 

PUBLIC DISCLOSURE

 

 

May 15, 2018

 

 

 

COMMUNITY REINVESTMENT ACT PERFORMANCE EVALUATION

 

 

Community Savings Bank Certificate Number: 14633

 

101 E Union Street Edgewood, Iowa 52042

 

 

 

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............................................................................................................................. 1

Scope of Evaluation......................................................................................................................... 2

Description of Institution................................................................................................................. 4

Description of Assessment Areas.................................................................................................... 5

Conclusions on Performance Criteria - Institution....................................................................... 16

Discriminatory or Other Illegal Credit Practices Review............................................................... 22

Conclusions on Performance Criteria -Non-MSA Assessment Area............................................ 23

Conclusions on Performance Criteria -Cedar Rapids MSA Assessment Area.............................. 28

Conclusions on Performance Criteria -  Dubuque MSA Assessment Area................................... 33

Glossary.......................................................................................................................................... 36

 

INSTITUTION RATING

 

INSTITUTION'S CRA RATING: This institution is rated Satisfactory.

An institution in this category has a satisfactory record of helping to meet the credit needs of its assessment areas (AAs), including low- and moderate-income (LMI) neighborhoods, in a manner consistent with its resources and capabilities.

 

Community Savings Bank's (CSB) satisfactory Community Reinvestment Act (CRA) performance under the Lending Test and Community Development 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 Lending Test is rated Satisfactory.

 

  • The loan-to-deposit (LTD) ratio is reasonable given the institution's size, financial condition, and AA credit needs.

 

  • The bank made a majority of its small farm, small business, and home mortgage loans in the AAs.

 

  • The geographic distribution of loans reflects an overall reasonable dispersion throughout the AAs.

 

  • The distribution of borrowers reflects an overall reasonable penetration of loans among farms and businesses of different sizes and individuals of different income levels.

 

  • The institution did not receive any CRA-related complaints since the previous evaluation; therefore, this factor did not affect the Lending Test rating.

 

The Community Development Test is rated Satisfactory.

 

  • The institution demonstrated adequate responsiveness to the community development needs in its AAs through community development loans, qualified investments, and community development services, as appropriate. Examiners considered the institution's capacity and the need and availability of such opportunities for community development in the AAs.

 

 

 

General Information


SCOPE OF EVALUATION

 

This evaluation covers the period from the prior evaluation dated July 14, 2015, to the current evaluation dated May 15, 2018. Examiners used the Interagency Intermediate Small Institution Examination Procedures to evaluate CSB's CRA performance. These procedures include two tests: the CRA Small Bank Lending Test and the Community Development Test. Banks must achieve at least a Satisfactory rating under each test to obtain an overall Satisfactory rating. This evaluation does not include any lending activity performed by affiliates.

 

The Lending Test considered the institution's performance according to the following criteria.

 

  • Loan-to-deposit ratio
  • Assessment area concentration
  • Geographic distribution
  • Borrower profile
  • Response to CRA-related complaints

 

The Community Development Test considered the following factors.

 

  • Number and dollar amount of community development loans, qualified investments and community development services.
  • The responsiveness of such activities to the community development needs of the assessment area

 

CSB has defined one contiguous AA in Iowa; however, for this evaluation an analysis was performed as ifthere were three separate AAs. The AAs will be referred to as the Non-MSA AA, the Cedar Rapids MSA AA, and the Dubuque MSA AA. The Non-MSA AA consists of the counties of Clayton and Delaware in their entirety. The Cedar Rapids MSA AA consists of Linn County in its entirety; the Dubuque MSA AA consists of four census tracts (CT) in Dubuque County. All AAs are described in more detail under "Description of Assessment Areas." All three AAs received full-scope reviews after considering factors such as the bank's prior CRA performance evaluation, available community contact materials, reported lending data, and demographic data on each AA.

 

Loan Products Reviewed

Examiners determined that the bank's major product lines are small farm, small business, and home mortgage loans. This conclusion considered the bank's business strategy, the number and dollar volume ofloans originated during the evaluation period, and a review of the bank's Consolidated Report of Condition and Income (Call Report). Consumer lending does not represent a major product line, so examiners did not review consumer lending activity for this evaluation.

 

Bank records indicated that the lending focus and product mix remained consistent throughout the evaluation period. Examiners reviewed a sample of small farm and small business loans originated between January 1, 2017, and December 31, 2017. This sample is considered

representative of the bank's performance during the entire evaluation period. There has been limited agricultural lending in the Cedar Rapids and Dubuque MSA AAs during the sample period. Therefore, small farm lending was not evaluated for these AAs.

 

Additionally, this evaluation considered all home mortgage loans reported on CSB's 2016 and 2017 Home Mortgage Disclosure Act (HMDA) Loan Application Registers (LARs).

 

Loan Products Reviewed

 

Loan Category

Universe

Reviewed

#

$(000s)

#

$(000s)

Small Farm

271

26,330

38

4,164

Small Business

353

35,141

83

8,385

Home Mortgage

714

80,733

714

80,733

Source: Bank Records.fiw n ll l/ 2017 rhrough 12/31/2017; HMDA reported dara.for 2016 and 2017

 

Although all AAs received full-scope evaluations, the Non-MSA and the Cedar Rapids MSA AAs hold the majority of the loans, deposits, and locations for the institution; therefore, greater weight was given to the conclusions derived from these AAs. The following table provides detailed information on loans, deposits, and office locations by AA.

 

Assessment Area Breakdown of Loans, Deposits, and Branches

 

Assessment Area

Loans

Deposits

Branches

$(000s)

%

$(000s)

%

#

%

Non-MSAAA

321,195

69.6

260

75.1

6

54.5

CRMSAAA

11 8,804

25.7

76

22.0

4

36.4

DBQMSAAA

21,784

4.7

10

2.9

 

9.1

Total

461,783

100.0

346

100.9

1

100.0

Source: Bank Records; FDJC Summary o.f Deposits (6/30/17)

 

For the Lending Test, examiners reviewed the number and dollar volume of small farm, small business, and home mortgage loans . While number and dollar volume ofloans are presented, examiners emphasized performance by number of loans because the number of loans is a better indicator of the number of operations and individuals served.

 

For the Community Development Test, management provided data on community development loans, qualified investments, and community development services since the prior CRA evaluation. Three similarly-situated intermediate small banks were referenced to provide context in the analysis of CSB's performance. These institutions were selected based upon similarities in asset size, business focus, and types of area served. Evaluations of the comparable banks were performed during CSB's evaluation period.

 

DESCRIPTION OF INSTITUTION

 

Background

CSB, a subsidiary of Community Financial Corporation, Edgewood, Iowa is a community bank headquartered in Edgewood, Iowa. Through common ownership, CSB is affiliated with Community Financial Business Trust IL There were no loans originated by this affiliate to be considered for this CRA Performance Evaluation. The bank' s CRA performance was rated "Satisfactory" at the previous evaluation dated July 14, 2015, using Intermediate Small Bank Performance Evaluation procedures.

 

Operations

In addition to the main office in Edgewood, Iowa, the institution operates six full-service branches in Dyersville, Earlville, Greeley, Manchester, Cedar Rapids, and Robins, Iowa. In April 2016, CSB added a branch office in Guttenberg. CSB acquired Garnavillo Savings Bank in October 2015, and acquired Linn County State Bank in June 2016. Branch offices were added in Coggon and Marion as a result of this acquisition. The bank has not closed any branch locations since the previous evaluation. CSB owns and operates ten deposit-taking automated teller machines (ATMs) throughout the AAs.

 

The bank offers a wide array of deposit products to meet consumer and business banking needs including checking, savings, and certificates of deposit accounts. CSB also participates in Certificate of Deposit Account Registry Services (CDARS) and offers merchant processing, trust, and wealth management services. Additionally, Internet banking, electronic bill payment, electronic periodic statements, and mobile banking are offered.

 

Various loan products including commercial, agricultural, home mortgage, and consumer loans are offered. CSB has utilized special financing alternatives offered through the following entities: Small Business Administration (SBA); United States Department of Agriculture (USDA) Rural Housing Development; Farm Service Agency (FSA); Federal Housing Administration; Veteran's Administration; East Central Intergovernmental Association; and Iowa Finance Authority (IFA). These programs are generally designed to assist small businesses, small farmers, veterans, and other individuals that may not qualify for loans through conventional financing methods. Secondary market financing options are also available for qualifying home mortgage loans.

 

Ability and Capacity

As of the March 31, 2018, Consolidated Reports oflncome and Condition (Call Report), the institution reported total assets of $430,808,000; total deposits of $350,075,000; total loans of

$323,530,000; and total securities of $71,166,000. From September 30, 2015, to March 31, 2018, loans have increased by 33.8 percent, contributing to total asset growth of 34.5 percent during the period. Deposits also increased by 36.8 percent during this timeframe.

 

Since the previous CRA evaluation, loan categories within the loan portfolio remained stable relative to total loan volume . Residential real estate loans (including multi-family) increased 3.3 percent, agricultural loans decreased 2.4 percent, and commercial loans decreased 4.4 percent.

The bank's loan portfolio is i11ustrated in the fo11owing table .

 

Loan Portfolio Distribution as of 3/31/2017

Loan Category

$(000s)

%

Construction and Land Development

21,606

6.7

Secured by Farmland

68,100

21.1

1-4 Family Residential

38,949

12.0

Multi-family (5 or more) Residential

3,838

1.2

Commercial Real Estate

54,740

16.9

Total Real Estate Loans

187,233

57.9

Commercial and Industrial

58,495

18.1

Agricultural

54,738

16.9

Consumer

8,631

2.7

Other

14,433

4.4

Less: Unearned Income

0

0.0

Total Loans

323,530

100.0

Source: Reports of Condition and i ncome

 

Examiners did not identify any financial, legal, or other impediments that affect the bank's ability to meet its AA credit or community development needs.

 

DESCRIPTION OF ASSESSMENT AREAS

 

CSB has three distinct, contiguous AAs in Eastern Iowa. The delineated areas encompass CSB's offices. There have been no changes to the AA delineations since the prior evaluation.

 

Economic and Demographic Data

The combined AAs include 59 census tracts (CTs). The Non-MSA AA consists of Clayton (CT 701.00-706.00), and Delaware (CTs 95.01-95.04) counties in their entirety. The Cedar Rapids MSA AA consists of all 45 CTs of Linn County. The Dubuque MSA AA includes four CTs in Dubuque County (CTs 102.01, 102.02, 104.00, and 105.00).

 

CT numbers are based on the 2015 ACS data. Of these geographies, 2 are considered low­ income, 11 moderate-income, 37 middle-income, and 8 upper-income CTs. One CT in the Cedar Rapids MSA is considered a no-income CT. All CTs in Clayton County are identified as underserved non-metropolitan middle-income geographies.  This underserved designation (due to remote location) has not changed since the prior evaluation. No other areas are considered distressed or underserved.

 

The bank's Edgewood (main) office is located in the Non-MSA AA in Delaware County, CT 9502.00 (upper-income). Other office locations within the Non-MSA AA are the Garnavillo office is located in Clayton County CT 701.00 (middle-income), the Earlville office is located in Delaware County CT 9501.00 (middle-income), the Greeley office is located in Delaware County CT 9501.00 (middle-income), the Manchester office is located in Delaware County CT 9503.00 (middle-income), and the Guttenberg office is located in Clayton County CT 704.00 (middle-income).

 

 

There are four office locations in the Cedar Rapids MSA AA, all in Linn County. The Robins office is located in CT 2.06 (upper-income), the Marion office is located in CT 3.00 (middle­ income), the Mt Vernon Rd office is located in CT 16.00 (middle-income), and the Coggan office is located in CT 101.00 (middle-income). There is one office located in the Dubuque MSA AA. The Dyersville office is located in Dubuque County CT 105.00 (middle-income) .

 

Geographies experienced change between the 2010 Census and the 2015 ACS U.S. Census data. The 2010 Census data is applied to 2016 loan transactions, and the ACS data is applied to 2017 loan transactions.

 

Examiners referenced demographic data from both the 2010 U.S. Census data and the 2015 American Community Survey (ACS) data for this evaluation. Activities that occurred during or prior to calendar year 2016 were compared to demographics based on the 2010 U.S. Census data. Activities that occurred during or after calendar year 2017 were compared to demographics based on the 2015 ACS data. The description of the AAs will present relevant information based on the 2015 ACS data, but significant differences from the 2010 U.S. Census data will be noted. The following sections discuss demographic and economic information for each AA.

 

The next table illustrates select demographic characteristics of the combined AAs.

 

Demographic Information of the Assessment Area

Assessment Area: Combined

Demographic Characteristics

 

#

Low

% of#

Moderate

% of#

Middle

% of#

Upper

% of#

NA*

% of#

Geographies (Census Tracts)

59

3.4

18.6

62.7

13.6

1.7

Population by Geography

270,683

1.4

15.8

64.1

17.6

1.1

Housing Units by Geography

118,303

1.5

17.0

65.7

14.9

0.8

Owner-Occupied Units by Geography

81,687

0.7

13.8

66.3

19.0

0.2

Occupied Rental Units by Geography

27,163

3.4

26.4

61.8

5.7

2.6

Vacant Units by Geography

9,453

2.7

17.6

71.8

6.2

1.7

Businesses by Geography

17,868

3.2

12.8

61.4

18.0

4.5

Farms by Geography

1,842

0.2

3.1

80.2

16.5

0.1

Family Distribution by Income Level

69,911

18.0

17.5

23.9

40.6

0.0

Household Distribution by Income Level

108,850

22.5

16.3

18.7

42.6

0.0

Median Family Income MSA - 16300 Cedar Rapids, IA MSA

$75,812

Median Housing Value

$146,651

Median Family Income MSA - 20220 Dubuque, IA MSA

$68,157

Median Gross Rent

$663

Median Family Income Non-MSAs - IA

$61,934

Families Below Poverty Level

6.2%

Source: 2010 U.S. Census & 2015 ACS Census and 2017 D&B Data Due to rounding, totals may not equal 100.0

(*) The NA category consists of geographies that have not been assigned an income classification.

 

The 2016 and 2017 FFIEC updated median family income level is used to analyze home mortgage loans under the Borrower Profile criterion. The low-, moderate-, middle-, and upper­ income categories are presented in the following table for each of the areas considered for evaluation purposes.

 

Median Family Income Ranges

Median Family Incomes

Low

<50%

Moderate 50% to <80%

Middle 80% to <120%

Upper 2120%

Cedar Rapids, IA MSA Median Family Income (16300)

2016 ($75,800)

<$37,900

$37,900 to <$60,640

$60,640 to <$90,960

2$90,960

2017 ($78,300)

<$39,150

$39,150 to <$62,640

$62,640 to <$93,960

2$93,960

Dubuque, IA MSA Median Family Income (20220)

2016 ($67,400)

<$33,700

$33,700 to <$53,920

$53,920 to <$80,880

2$80,880

2017 ($66,400)

<$33,200

$33,200 to <$53,120

$53,120 to <$79,680

2$ 79,680

IA Non-Metropolitan Median Family Income (99999)

2016 ($63,300)

<$31,650

$31,650 to <$50,640

$50,640 to <$75,960

2$75,960

2017 ($63,900)

<$31,950

$31,950 to <$51,120

$51,120 to <$76,680

2$76,680

Source: FFTEC

 

Non-MSAAA

Economic and Demographic Data

The Non-MSA AA is comprised of 10 CTs; 9 middle- and 1 upper-income geographies in Clayton, and Delaware counties. All of the CTs in Clayton County remain designated as underserved non-metropolitan middle-income geographies. The next table illustrates select demographic characteristics of the Non-MSA AA.

 

Demographic Information of the Assessment Area

Assessment Area: Non-MSA AA

Demographic Characteristics

 

#

Low

% of#

Moderate

% of#

Middle

% of#

Upper

%of#

NA*

% of#

Geographies (Census Tracts)

10

0.0

0.0

90.0

10.0

0.0

Population by Geography

35,313

0.0

0.0

91.7

8.3

0.0

Housing Units by Geography

17 ,056

0.0

0.0

92.4

7.6

0.0

Owner-Occupied Units by Geography

11 , 545

0.0

0.0

91.2

8.8

0.0

Occupied Rental Units by Geography

3,036

0.0

0.0

93.5

6.5

0.0

Vacant Units by Geography

2,475

0.0

0.0

96.2

3.8

0.0

Businesses by Geography

2,636

0.0

0.0

92.0

8.0

0.0

Farms by Geography

853

0.0

0.0

90.7

9.3

0.0

Family Distribution by Income Level

10,018

17.9

17.1

23.4

41.5

0.0

Household Distribution by Income Level

14,581

20.3

16.6

19.5

43.6

0.0

Median Family Income Non-MSAs - TA

$ 61 ,9 34

Median Housing Value

$119,229

 

Median Gross Rent

$572

Families Below Poverty Level

6.9%

Source: 2010 U.S. Census & 2015 ACS Census and 2017 D&B Data Due to rounding, totals may not equal 100.0

(*) The NA catego1y co n sists of geographies that have not bee n assigned an income classi fication.

 

The analysis of small business and small farm loans under the Borrower Profile criterion compares the distribution of businesses by gross annual revenues (GARs).

 

According to 2017 D&B data, there were 2,636 businesses and 853 farms in the AA. Gross annual revenues (GARs) for these businesses and farms are listed below. The analysis of small business and small farm loans under the Borrower Profile criterion compares the distribution of businesses and farms by GAR level.

 

Businesses

  • 82.1 percent reported GARs of $1,000,000 or less.
  • 5.3 percent reported GARs of more than $1,000,000.
  • 12.6 percent have unknown revenues.

 

Farms

  • 99.1 percent reported GARs of $1,000,000or less.
  • 0.6 percent reported GARs of more $1,000,000.
  • 0.3 percent have unknown revenues.

 

Further, according to 2017 D&B data, service industries represent the largest portion of businesses and farms at 32.9 percent; followed Agriculture, Forestry, and Fishing (24.5 percent); and by Retail Trade (10.7 percent). Additionally, 79.0 percent of AA businesses and farms have four or fewer employees, and 89.8 percent operate from a single location.

 

Based upon 2015 ACS data, there are 17,056 housing units in this AA. Of these, 67.7 percent are owner-occupied, 17.8 percent are occupied rental units, and 14.5 percent are vacant. The Geographic Distribution criterion compares home mortgage loans to the distribution of owner­ occupied housing units.

 

A comparison of2007 and 2012 Census of Agriculture reports revealed that the number of farms in Clayton County decreased by 5.0 percent, while the average size of operation increased by 2.0 percent. In Delaware County the number of farms decreased by 9.0 percent, while the average size of operation increased by 17.0 percent. For the same period, the State oflowa reported a

    1. percent decrease in the number of farms and a 4.0 percent increase in the average size of farms.

 

According to information reported by Iowa Workforce Development as of April 2018, unemployment rates in Clayton and Delaware Counties were 3.6 and 2.1 percent, respectively. This is a decrease in the unemployment rates of 3.8 and 2.6 percent, respectively, reported in April 2017. The State oflowa reported an adjusted unemployment rate of2.8 percent in April 2018, which was a decrease from the 3.3 percent rate in April 2017.

Competition

The FDIC Deposit Market Share Report as of June 2017 reflects 12 FDIC-insured institutions operating from 26 locations within the counties that comprise the Non-MSA AA. These institutions range from small community banks to larger financial institutions operating branch locations in the area. CSB ranked second with 14.4 percent of deposit market share within this

 

area. Agricultural financing competition also comes from non-bank entities with options for operating, machinery, and land loans. Overall, the AA is considered very competitive.

 

There is a high level of competition for home mortgage loans. Based on 2016 HMDA data, 82 lenders reported a total of 1,055 residential mortgage loans originated or purchased. CSB ranked 1st out of this group of lenders, with a market share of 18.8 percent.

 

Community Contact

As part of the evaluation process, examiners referenced a community contact with an individual that has expertise and knowledge about the AA to assist in identifying the area's credit needs.

This information helps determine whether local financial institutions are responsive to area needs. Examiners referenced a contact made with a representative of a government-sponsored organization operating in the Non-MSA AA.  This contact made the following observations: The agricultural economy is not as strong as in recent years, especially dairy operations. The commercial economy is strong due to the number of manufacturing jobs in the area. Finally, the contact indicated that there are various needs for affordable housing depending on the locale, such as single family homes, rentals, and elderly housing. The demand for homes in the area appears to be driving prices upward.

 

Credit and Community Development Needs and Opportunities

Considering information from the community contact, bank management, as well as demographic and economic data, examiners determined that agricultural, commercial, and home mortgage loans represent primary credit needs for the AA. The AA has community development needs including affordable housing and opportunities for first-time home buyers. Overall, the contact indicated that credit needs are being met, and there is good involvement by local financial institutions.

 

Cedar Rapids MSA AA

 

Economic and Demographic Data

The Cedar Rapids MSA AA includes all 45 CTs in Linn County. According to the 2015 ACS, these CTs reflect the following income designations: 2 low-, 11 moderate-, 25 middle-, 6 upper-, and 1 no-income CT. Compared to the 2010 U.S. Census, the following changes in income designations have occurred: the number of low-, moderate-, and middle- and no- income tracts increased by one each, and upper-income tracts decreased by four. The following table illustrates select demographic characteristics of the AA.

 

Demographic Information of the Assessment Area

Assessment  Area: CR MSA AA

Demographic Characteristics

#

Low

% of#

Moderate

% of#

Middle

% of#

Upper

% of#

NA*

% of#

Geographies (Census Tracts)

45

4.4

24.4

55.6

13.3

2.2

Population by Geography

216,640

1.8

19.8

59.1

18.0

1.4

Housing Units by Geography

94,058

1.9

21.4

60.4

15.2

1.1

Owner-Occupied Units by Geography

64,274

0.9

17.6

61.5

19.8

0.2

Occupied Rental Units by Geography

23,044

4.0

31.2

56.9

4.9

3.1

Vacant U nits by Geography

6,740

3.8

24.7

62.8

6.2

2.4

Businesses by Geography

13,998

4.1

16.4

54.7

19.0

5.8

Farms by Geography

760

0.4

7.5

67.1

24.9

0.1

Family Distribution by Income Level

54,653

18.6

17.7

23.8

39.9

0.0

Household Distribution by Income Level

87,318

23.4

16.3

18.6

41.7

0.0

Median Family Income MSA - 16300 Cedar Rapid s, TA MSA

$75,81 2

Median Housin g Value

$149,515

 

Median Gross Rent

$676

Families Below Poverty Level

6.3%

Source: 2010 U.S. Census & 2015 ACS Census and 2017 D&B Daia Due to rounding, totals may not equal 100.0

(*) The NA categmy consists of geographies that have not been assigned an income classification.

 

The analysis of small business and small farm loans under the Borrower Profile criterion compares the distribution of businesses by gross annual revenues (GARs).

 

According to 2017 D&B data, there were 13,998 businesses and 760 farms in the AA. Gross annual revenues (GARs) for these businesses and farms are listed below. The analysis of small business and small farm loans under the Borrower Profile criterion compares the distribution of businesses and farms by GAR level.

 

Businesses

      • 80.2 percent reported GARs of $1,000,000 or less.
      • 7.5 percent reported GARs of more than $1,000,000.
      • 12.3 percent have unknown revenues.

 

Farms

      • 97.1 percent reported GARs of $1,000, 000 or less.
      • 1.6 percent reported GARs of more $1,000,000.
      • 1.3 percent have unknown revenues.

 

Further, according to 2017 D&B data, service industries represent the largest portion of businesses and farms at 44.1 percent; followed by Retail Trade (13.1 percent); and by Finance, Insurance, and Real Estate (9.9 percent). Additionally, 68.8 percent of AA businesses and farms have four or fewer employees, and 86.2 percent operate from a single location.

 

Based upon 2015 American Community Survey (ACS) data, there are 94,058 housing units in this AA. Of these, 68.3 percent are owner-occupied, 24.5 percent are occupied rental units, and

7.2 percent are vacant. The Geographic Distribution criterion compares home mortgage loans to the distribution of owner-occupied housing units.

 

A comparison of2007 and 2012 Census of Agriculture reports revealed that the number of farms in Linn County decreased by 1.0 percent, while the average size of operation increased by 2.0 percent. For the same period, the State oflowa reported a 5.0 percent decrease in the number of farms and a 4.0 percent increase in the average size of farms.

 

According to information reported by Iowa Workforce Development as of April 2018, the unemployment rate in Linn County was 2.7 percent. This is a decrease from 3.3 percent reported in April 2017. The State oflowa reported an overall unemployment rate of 2.8 percent in April 2018, a decrease from 3.3 percent in April 2017.

 

Competition

The FDIC Deposit Market Share Report as of June 2017 reflects 14 FDIC-insured institutions operating from 76 locations within Linn County. These institutions range from small community banks to larger financial institutions operating branch locations in the area. Overall, CSB ranked 14th with a 1.59 percent of deposit market share within this area. Overall, the AA is considered very competitive.

 

There is also a high level of competition for home mortgage loans among several banks, credit unions, and non-depository mortgage lenders. Based on 2016 HMDA data, 218 lenders reported a total of 11,380 residential mortgage loans originated or purchased. CSB ranked 31st, holding a

    1. percent market share. The institutions with a higher market share include two large credit unions, and one larger local financial institution. These institutions account for 36.5 percent of total home mortgage lending in the AA.

 

Community Contact

As part of the evaluation process, examiners referenced a community contact with an individual that has expertise and knowledge about the AA to assist in identifying the area's credit needs.

This information helps determine whether local financial institutions are responsive to area needs. Examiners referenced a contact made within the past 12 months with a government organization operating within CSB's AA. The contact stated that programs necessary to assist LMI individuals obtain affordable housing is a need in this AA. The contact acknowledged that some of these individuals may not qualify for credit due to debt-to-income ratios and/or poor credit. However, programs such as down payment assistance, or loan programs targeted at assisting in an emergency situation, such as the loss of a furnace, would be beneficial for these individuals acquiring or maintaining a home. The contact indicated that financial institutions appear to be meeting the majority of the credit needs in the area; however, the referenced programs would be beneficial to LMI individuals.

 

Credit and Community Development Needs and Opportunities

Based on information from the community contact, bank management, as well as economic and demographic data, examiners determined that affordable home mortgage and home improvement loans are primary credit needs for the AA. This conclusion is also supported by Reports of Condition filed by area financial institutions. The community contact referenced above indicated that financial institutions in the area are meeting the needs of the AA.

 

Dubuque MSA AA

 

Economic and Demographic Data

The Dubuque MSA AA consists of three middle-, and one upper-income CTs in Dubuque County. According to the 2015 ACS, there has been no change in the CT income designations since the previous evaluation whereby the 2010 U.S. Census defined CT designations . The bank's sole office in this AA is located in Dyersville, which is located in the western side of the county, approximately 30 road miles away from the downtown area in Dubuque.

 

The following table illustrates select demographic characteristics of the AA.

 

Table A - Demographic Information of the Assessment Area

Assessment Area: 14633 Edgewood DBQ AA

Demographic Characteristics

 

#

Low

% of#

Moderate

% of#

Middle

%of#

Upper

% of#

NA*

%of#

Geographies (Census Tracts)

4

0.0

0.0

75.0

25.0

0.0

Population by Geography

18,730

0.0

0.0

69.6

30.4

0.0

Housing Units by Geography

7,189

0.0

0.0

71.8

28.2

0.0

Owner-Occupie d Unit s by Geography

5,868

0.0

0.0

70.6

29.4

0.0

Occupied Rental Units by Geography

1,083

0.0

0.0

78.4

21.6

0.0

Vacant Units by Geography

238

0.0

0.0

71.8

28.2

0.0

Busi nesses by Geography

1,234

0.0

0.0

71.9

28.1

0.0

Farms by Geography

229

0.0

0.0

84.3

15.7

0.0

Family Distribution by Income Level

5,240

12.3

15.9

25.2

46.7

0.0

Household Distribution by Income Level

6,951

15.8

14 .7

17.6

51.9

0.0

Median Family Income MSA - 20220 Dubuque, IA MSA

$68,157

Median Housing Value

$174,229

 

Median Gross Rent

$610

Families Below Poverty Level

4.3%

Source: 2010 US. Census & 2075 ACS Census and 2077 D&B Data Due to rounding, totals may not equal I 00.0

(*) The NA catego1y consiscs of ge ographies tha t have not been assigned an income class/fic ation.

 

The analysis of small business and small farm loans under the Borrower Profile criterion compares the distribution of businesses by gross annual revenues (GARs).

 

According to 2017 D&B data, there were 1,234 businesses and 229 farms in  the  AA.  Gross annual revenues (GARs) for these businesses and farms are listed below. The analysis of small business and sma11 farm loans under the Borrower Profile criterion compares the distribution of businesses and farms by GAR level.

 

Businesses

      • 80.8 percent reported GARs of $1,000,000 or less.
      • 8.1 percent reported GARs of more than $1,000,000.
      • 11.1 percent have unknown revenues.

 

Farms

      • 98.3 percent reported GARs of$1,000,000 or less.
      • 0.8 percent reported GARs of more $1,000,000.
      • 0.9 percent have unknown revenues.

 

Further, according to 2017 D&B data, service industries represent the largest portion of businesses and farms at 33.8 percent; followed Agriculture, Forestry, and Fishing (15.6 percent); and by Construction (10.3 percent). Additionally, 74.4 percent of AA businesses and farms have four or fewer employees, and 90.1 percent operate from a single location.

 

Based upon 2015 ACS data, there are 7,189 housing units in this AA. Of these, 81.6 percent are owner-occupied, 15.l percent are occupied rental units, and 3.3 percent are vacant. The Geographic Distribution criterion compares home mortgage loans to the distribution of owner­ occupied housing units.

 

A comparison of 2007 and 2012 Census of Agriculture reports revealed that the number of Dubuque County farms decreased by 1.0 percent, and the average size of operation decreased by

    1. percent. Similarly, for the same period, the State of lowa reported a 5.0 percent decrease in the number of farms and a 4.0 percent increase in the average size of farms.

 

According to information reported by Iowa Workforce Development as of April 2018, the unemployment rate in Dubuque County was 2.5 percent. This is a decrease from 2.8 percent reported in April 2017. The State of lowa reported an overall unemployment rate of 2.8 percent in April 2018, which is a decrease from 3.3 percent in April 2017.

 

Competition

The FDIC Deposit Market Share Report as of June 2017 reflects 8 FDIC-insured institutions operating from 39 locations within Dubuque County. These institutions range from small community banks to larger financial institutions operating branch locations in the area. CSB ranked eighth with 0.36 percent of deposit market share within this area. Agricultural financing competition also comes from non-bank entities with options for operating, machinery, and land loans. Overall, the AA is considered extremely competitive.

 

There is a high level of competition for home mortgage loans. In 2016, 57 lenders reported a total of 696 residential mortgage loans originated or purchased. CSB ranked 6th out of this group of lenders, with a market share of 3.16 percent. The two most prominent home mortgage lenders accounted for 38.7 percent of total market share.

 

Community Contact

As part of the evaluation process, examiners referenced a community contact with an individual that has expertise and knowledge about the AA to assist in identifying the area's credit needs.

This information helps determine whether local financial institutions are responsive to area needs. The contact referenced for this AA is the same as the Non-MSA AA; please refer to that section of this evaluation.

 

Credit and Community Development Needs and Opportunities

Considering information from the community contact, bank management, as well as demographic and economic data, examiners determined that agricultural, commercial, and home mortgage loans represent primary credit needs for the AA. The AA has community development needs including affordable housing and opportunities for first-time home buyers. Overall, the contact indicated that credit needs are being met, and there is good involvement by local financial institutions.

 

 

 

CONCLUSIONS ON PERFORMANCE CRITERIA INSTITUTION

 

LENDING TEST

 

CSB demonstrated reasonable performance under the Lending Test. This conclusion is primarily based on CSB's performance in the Non- MSA and the Cedar Rapids MSA AAs because the majority of the bank's loans and deposits are located in these AAs. Further, due to the nominal amount of loans originated, and/or captured in sampling procedures inside the Cedar Rapids MSA and Dubuque MSA AAs, valid conclusions could not be made for the Borrower Profile evaluation for small farm loans. Since the Non-MSA and the Dubuque MSA AAs do not contain any LMI CTs, the Geographic Distribution performance criterion was not conducted in these AAs. As indicated under "Scope of Evaluation," equal weight is given to small farm, small business, and home mortgage lending. The following is a discussion of each performance criterion and how they support the bank's overall rating.

 

Loan-to-Deposit Ratio

CSB's average net LTD ratio is reasonable given the institution's size, financial condition, and the AAs' credit needs, demonstrating a willingness to extend credit. The LTD ratio is also reasonable when compared to similarly-situated institutions. CSB's average net LTD ratio was compared to those of three other institutions operating in or near the bank's AAs.  These financial institutions were considered comparable due to similarities in business focus, resources, markets served, market conditions, and/or product mix. Information pertaining to this review appears in the next table; selected institutions are listed alphabetically by location of their main office.

 

 

 

Loan-to-Deposit Ratio Comparison

 

 

Bank

Total Assets as of 3/31/178

$ (000s)

Average Net LTD Ratio (%)

Community Savings Bank, Edgewood

430,808

93.7

Banklowa, Cedar Rapids

652,678

100.1

Fidelity Bank, Dubuque

800,072

87.2

Citizens State Bank, Monticello

398,607

72.27

Source: Reports of Condition and Income 9/30/15 through 3/31/18

 

As demonstrated in the preceding table, CSB's average net LTD ratio is 93.7 percent. This represents an increase in the institution's average net LTD ratio from 83.6 percent at the July 2015 evaluation. Overall, performance with respect to the average net LTD ratio is reasonable when compared to other similarly situated institutions in the AAs.

 

Assessment Area Concentration

The bank made a majority of its small farm, small business, and home mortgage loans, by number and dollar volume, within its AAs. See the following table.

 

 

 

 

 

                                                                                                                                                                                                             

 

#

%

#

%

#

$

%

$

%

$(000s)

Home Mortgage

 

 

 

 

 

 

 

 

 

 

2016

285

84.8

51

15.2

336

29,217

78.6

7,945

21.4

37,162

2017

305

80.7

73

19.3

378

35,748

82.0

7,823

18.0

43,571

Subtotal

590

82.6

124

17.4

714

64,965

80.5

15,768

19.5

80,733

Small Business

57

68.7

26

31.3

83

5,436

64.8

2,949

35.2

8,385

Small Farm

36

94.7

2

5.3

38

3,684

88.5

480

11.5

4,164

 

 

 

 

The table above does not include two small farm loans totaling $80,000 that were located in the Cedar Rapids MSA and Dubuque MSA AAs. As previously discussed, small farm lending in these AAs was not evaluated due to the limited volume.

 

Geographic Distribution

The geographic distribution of loans reflects reasonable dispersion throughout the AAs. The bank's reasonable small farm, small business, and home mortgage lending performance supports this conclusion. Overall results are based on CSB's performance in the Cedar Rapids MSA AA. CSB's Non-MSA and Dubuque MSA AAs do not include any LMI geographies; therefore

 

review of the Geographic Distribution criterion would not result in meaningful conclusions for these AAs. Examiners focused on the percentage by number of loans in LMI census tracts. Only loans originated inside the AAs were used in this review. Refer to comments under the Cedar Rapids MSA AA for more specifics on the analysis.

 

Small Farm Loans

Due to the low volume of farm lending in the Cedar Rapids MSA AA, which is the only AA with LMI census tracts, this product type was not evaluated for this component.

 

Small Business Loans

Overall, the geographic distribution of small business loans reflects a reasonable dispersion throughout the Cedar Rapids MSA AA, and compares reasonably to relevant demographic data.

 

Home Mortgage Loans

The geographic distribution of home mortgage loans reflects an overall reasonable dispersion throughout the Cedar Rapids MSA AA. Institution lending compares reasonably to demographic and aggregate data.

 

Borrower Profile

The distribution of borrowers reflects an overall reasonable penetration among farms and businesses of different revenue sizes and individuals of different income levels. Examiners focused on the percentage by number of small farm and small business loans to those with GARs of $1 million or less and home mortgage loans to LMI borrowers.

 

Small Farm Loans

The bank's lending distribution to farm entities with GARs of $1 million or less reflects reasonable penetration. Since small farm lending was only reviewed in the Non-MSA AA, refer to comments under that AA for more specific analysis.

 

Small Business Loans

The bank's lending distribution to business entities with GARs of $1 million or less reflects reasonable penetration. CSB actively participates in loan programs that benefit small businesses, such as SBA 7A and 504 loans. The lending analysis showed CSB has a penetration comparable to demographic information among businesses with revenues of $1 million or less.

 

Home Mortgage Loans

Lending penetration to borrowers of varying income levels indicates an overall reasonable level of lending. Additional bank and performance context information was also considered. CSB applied for and received grant funds for FHLB Homeownership Funds. These programs target LMI borrowers for assistance in down payment, closing costs, counseling, or rehabilitation assistance in connection with the purchase or rehabilitation of an owner-occupied housing unit. As a result, the bank originated 28 home mortgage loans, totaling $1,944,763, with grants totaling $195,000 to LMT families.

 

Response to Complaints

The bank did not receive any CRA-related complaints since the previous evaluation; therefore, this criterion did not affect the Lending Test rating.

 

COMMUNITY DEVELOPMENT TEST

 

CSB demonstrated adequate responsiveness to the community development needs of its AAs through community development loans, qualified in vestments, and community development services. Examiners considered the institution's capacity, as well as the need and availability of opportunities for community development in each AA in arriving at this conclusion.

 

Community development loans, qualified investments, and community development services were weighted equally when arriving at the overall conclusion for the Community Development Test. Community development performance in the Non-MSA AA received greater weight in assessing the bank's performance under this test.          A majority of activities originated in this AA. In addition, activities in the broader statewide or regional area (BSRA) were considered.

Although these activities do not directly benefit CSB's AAs, the bank has been responsive to the community development needs of its AAs.

 

Community Development Loans

Since the prior CRA evaluation, 125 community development loans totaling over $4.9 million were originated. CSB extended loans to entities in an effort to promote economic development that supported permanent job creation, retention, and/or improvement to LMI persons or geographies; and activities that revitalize or stabilize certain geographies. Community development loans originated since the prior evaluation are detailed in the following tables.

 

Community Development Lending by Assessment Area

 

Assessment Area

Affordable Housing

Community Services

Economic Development

Revitalize or Stabilize

 

Totals

#

0

0

0

0

0

$(000s)

#

$(000s)

#

$(000s)

#

$(000s)

#

$(000s)

Non-MSAAA

0

0

0

97

3,112

3

368

100

3,480

Cedar Rapids MSA AA

0

0

0

17

876

2

391

19

1,267

Dubuque MSA AA

0

0

0

0

0

0

0

0

0

BSRA Activities

0

0

0

6

174

0

0

6

174

Total

0

0

0

120

4,162

5

759

125

4,921

 

 

 

Community  Development Lending

 

 

Activity Year

Affordable Housing

Community Services

Economic Development

Revitalize or Stabilize

 

Totals

#

$(000s)

#

$(000s)

#

$(000s)

#

$(000s)

#

$(000s)

2015 (July-December)

0

0

0

0

18

928

I

120

19

1,048

2016

0

0

0

0

58

2,328

3

627

61

2,955

2017

0

0

0

0

34

674

0

0

34

674

2018 (January-April)

0

0

0

0

10

232

 

12

11

244

Total

0

0

0

0

120

4,162

5

759

125

4,921

Source: Bank Records

 

CSB's community development loans to net loans ratio was 1.54 percent, using net loans as of March 31, 2018. The total dollar volume of community development lending reflects a decrease since the prior evaluation where 109 community development loans totaling $9.1 million were extended, reflecting a ratio of 3.84 percent of net loans. Specific examples of community development lending activity are discussed in the Non-MSA AA and Cedar Rapids MSA AA sections of this evaluation. CSB's performance in community development lending compares reasonably to the recent CRA Performance Evaluation of three similarly- situated institutions, which reported community development loans to net loans ratios of 1.45, 0.8, and 4.4 percent, respectively.

 

Qualified Investments

CSB's 95 qualified investments total over $9.4 million. Qualified donations and investments funded since the previous evaluation were considered under this component, as well as qualifying investments purchased prior to this evaluation that were still outstanding as of this evaluation date. CSB's total includes qualified equity investments of $9,316,000 and donations of $86,000. Qualified investments include 5 bonds totaling $945,000 benefitting efforts inside CSB's AAs. Qualified investment also include 37 bonds totaling over $8.3 million located outside CSB's AA, involving entities that serve a broader statewide or regional area that contains the AAs.

 

CSB supported the local economy through investments and donations supporting community services to LMI individuals, economic development, and revitalization or stabilization efforts. The next two tables illustrate CSB's qualified investment activity.

 

Qualified Investments by Assessment Area

 

Assessment Area

Affordable Housing

Community Services

Economic Development

Revitalize or Stabilize

 

Totals

#

0

0

0

0

l                                           0

$(000s)

#

$(000s)

#

$(000s)

#

$(000s)

#

$(000s)

Non-MSA AA

0

16

24

12

30

22

961

50

1,015

Cedar Rapids MSA AA

0

2

2

6

14

0

0

8

16

Dubuque MSA AA

0

0

0

0

0

0

0

0

0

BSRA Activities

0

0

0

0

0

37

8371

37

8371

  Total

0

18

26

18

44

59

9,332

95

9,402

 

 

Qualified Investments

 

Community Services

Economic Development

Revitalize or Stabilize

 

Totals

 

Activity Year

Affordable

Housing

#

$(000s)

#

$(000s)

#

$(000s)

#

$(000s)

#

$(000s)

Prior Period

0

0

0

0

0

0

15

2,611

15

2,611

2015

0

0

0

0

0

0

3

605

3

605

2016

0

0

0

0

0

0

17

4,045

17

4,045

2017

0

0

0

0

0

0

6

1,935

6

1,935

YTD 2018

0

0

0

0

0

0

120

1

120

Subtotal

0

0

0

0

0

0

42

9,316

42

9,316

Qualified Grants & Donations

0

0

18

26

18

44

17

16

53

86

Total

0

0

18

26

18

44

59

9,332

95

9,402

 

CSB's qualified investments equal 2.18 percent of total assets and 13.2 percent of total securities as of March 31, 2018. The total volume of qualified investments and donations reflects an increase since the prior evaluation where 15 qualified investments and donations totaling $1.2 million were extended, reflecting a ratio of 0.41 percent of total assets and 2.29 percent of total securities.  However, it is noted that all of CSB's increased investment volume benefitted broader statewide or regional areas.

 

The similarly-situated institutions reported qualified investment to total assets ratios of 0.16, 2.1, and 0.9 percent, respectively. CSB's performance compares reasonably to the similarly-situated institution's investment ratios. Details and specific examples of qualified investment activity in the individual AAs are discussed in later sections of this evaluation.

 

Community Development Services

CSB has provided community development services benefitting the bank's Non-MSA AA.  Since the previous evaluation, bank personnel provided financial services to various qualified organizations within the AA. There were no CRA-qualified services reported that benefitted the Cedar Rapids MSA or the Dubuque MSA AAs. All of the services provided by personnel related to the provision of financial services as required by the regulation for consideration under the CRA.

 

In total, bank personnel participated in 86 community development service activities to 30 different organizations. At the 2015 evaluation, participants provided financial and technical expertise to 17 different organizations for a total of 22 services. By dedicating their time, employees are assisting these organizations to promote affordable housing and community services to LMT individuals, economic development by supporting permanent job creation , retention, and/or improvement to LMI persons or geographies; or revitalizing or stabilizing certain geographies.

 

CSB's community development services exceeded similarly-situated institution data, which reported providing technical services 37, 36, and 43 times respectively during their recent evaluation periods.

 

CSB's activities are shown in the following two tables. Details and specific examples of community development services in the individual AAs are discussed in later sections of this evaluation.

 

Community Development Services by Assessment Area

 

Assessment Area

Affordable Housing

Community Services

Economic Development

Revitalize or Stabilize

 

Totals

#

#

#

#

#

Non-MSAAA

9

42

15

20

86

Cedar Rapids MSA AA

0

0

0

0

0

Dubuque MSA AA

0

0

0

0

0

Total

9

42

15

20

86

Source: Bank Records

 

Community  Development Services

 

Activity Year

Affordable Housing

Community Services

Economic Development

Revitalize or Stabilize

 

Totals

#

#

#

#

#

2015 (Aug-Dec)

3

14

5

6

28

2016

3

14

5

6

28

2017

3

14

5

8

30

YTD 2018

0

0

0

0

0

Total

9

42

15

20

86

Source: Bank Records

 

The bank offers checking accounts that are low cost or has no fees to the consumer. CSB maintains a transactional web site through which it provides product and service information. Services such as online banking, mobile banking and deposit, bill payment, electronic statements, debit cards, and check cashing are also offered. These services are generally free of charge to bank customers, which is beneficial to LMI individuals.

As detailed previously, CSB is headquartered in Edgewood and operates a total of 11 offices and 10 ATMs. Two offices and two ATMs are located in an underserved middle-income non­ metropolitan geography in Clayton County.

DISCRIMINATORY OR OTHER ILLEGAL CREDIT PRACTICES REVIEW

 

Examiners did not identify any evidence of discriminatory or other illegal credit practices; therefore, this consideration did not affect the institution's overall CRA rating.

 

 

CONCLUSIONS ON PERFORMANCE CRITERIA NON-MSAAA

 

LENDING TEST

As indicated under the "Scope of Evaluation" the Non-MSA AA and the Cedar Rapids MSA AA were given the greatest weight in this evaluation and equal weight is granted small farm, small business and home mortgage lending.

 

Geographic Distribution

There are no LMI CTs in the Non-MSA AA; therefore, this factor was not evaluated in this AA.

 

Borrower Profile

The following tables show that CSB has a reasonable penetration of lending to farms and businesses of different revenue sizes and to individuals of different income levels in the Non­ MSA AA. This data includes only those loans granted inside the AA. Examiners focused primarily on the percentage by number of small business and small farm loans to entities with GARs equal to or less than $1 million and percentage by number of loans to LMI home mortgage borrowers.

 

Small Farm Loans

The review of loan originations to farms within the AA shows a reasonable level of performance, considering the relevant demographic data.

 

Distribution of Small Farm Loans by Gross Annual Revenue Category

 

Assessment Area: Non-MSA AA

 

Gross Revenue Level

 

% of Farms

 

#                               %

 

$(000s)

 

%

<=$1 ,000,000

99.1

30                           88.2

3,291

91.3

>1,000,000

0.6

3                              8.8

304

8.4

Revenue Not Available

0.4

1                              2.9

9

0.2

Total

100.0

34                          100.0

3,604

100.0

Source: 2017 D&B Data, Bank Data.

Due to rounding, totals may not equal I 00.0

 

The preceding table shows that CSB extended 88.2 percent of small farm loans in the Non-MSA AA by number to operations with GARs of $1,000,000 or less. In comparison, D&B data states that 99.1 percent of AA farms reported GARs of $1,000,000 or less. The data also indicates that three of the sampled loans were made to operations earning greater than $1,000,000.

Management demonstrated that these borrowers are long-time customers of the bank whose operations have grown over time.

 

Small Business Loans

The following table shows CSB's lending to businesses with GARs of $1 million or less is comparable to demographic information when considering performance context factors, reflecting reasonable penetration.

 

Distribution of Small Business Loans by Gross Annual Revenue Category

 

Assessment Area:  Non-MSA AA

Gross Revenue Level                     %

 

of Businesses

#                              %

 

$(000s)

%

<=$1,000,000

82.1

19

70.4

1,038

47.6

>1,000,000

5.2

8

29.6

1,142

52.4

Revenue Not Available

12.6

0

0.0

0

0.0

Total

100.0

27

100.0

2,180

100.0

Source: 2017 D&B Data, Bank Data.

Due to rounding, totals may not equal 100.0

 

The preceding table shows that CSB extended 70.4 percent of small business loans by number in the Non-MSA AA to operations with GARs of $1,000,000 or les s. In comparison, D&B data states that 82.1 percent of AA businesses reported GARs of $1,000,000 or less. The data also indicates that eight of the sampled loans were made to operations earning greater than

$1,000,000. Management demonstrated that these borrowers are long-time customers of the bank whose operations have grown over time.

 

In considering bank and performance context factors of the area, the bank demonstrates reasonable performance in its loan distribution among small business operations of all revenue levels in the Non-MSA AA.

 

Home Mortgage Loans

The following table depicts the home mortgage loans originated to AA borrowers of different income levels by number and dollar volume, along with corresponding demographics and aggregate 1™DA data. Overall, borrower profile results reflect reasonable penetration of lending to home mortgage borrowers of all income levels.

 

 

Distribution of Home Mortgage Loans by Borrower Income Level

 

Assessment Area: Edgewood Non-MSA AA

 

Borrower Income Level

I

 

 

% of Families

I

Aggregate Performance

% of#

I

 

 

#

 

%

 

$(000s)

 

%

Low

 

2016

17.3

9.1

28

14 . l

1,355

7.1

2017

17.9

 

25

11.5

1,342

5.3

Moderate

 

2016

18.7

19.2

42

21.2

2,893

15.2

2017

17.1

 

52

24.0

4,000

15.7

Middle

 

2016

25.7

19.0

41

20.7

2,508

13.2

2017

23.4

 

49

22.6

3,755

14.8

Upper

 

2016

38.4

42.7

77

38.9

10,065

52.8

2017

41.5

 

80

36.9

13,441

52.8

Not Available

 

2016

0.0

10.0

10

5.1

2,250

11.8

2017

0.0

 

11

5.1

2,898

11.4

Totals

 

2016

100.0

100.0

198

100.0

19,071

100.0

2017

100.0

 

217

100.0

25,436

100.0

Source: 2010 U.S. Census & 2015 ACS Census; Bank Data, 2016 HMDA Aggregate Data, "-- " data nor available. Due to rounding, totals may not equal 100.0

 

CSB's home mortgage lending to low-income borrowers during 2016 was substantially higher than aggregate data. CSB extended 14.1 percent of its home mortgage loans to low-income borrowers, while aggregate data shows 9.1 percent of loans extended by all HMDA reporters serving this AA were to low-income borrowers for the reporting year. Both CSB and aggregate data were lower than demographic data of 17.3 percent in accordance with the 2010 U.S. Census Bureau data.

 

The 2016 lending to moderate-income borrowers is also above HMDA aggregate data. Specifica11y, the bank extended 21.2 percent of home mortgage loans, by number, to moderate­ income borrowers, compared to HMDA aggregate data indicating 19.2 percent of loans originated by HMDA reporters were to moderate-income borrowers.  CSB's performance in 2016 was higher than demographic data of 18.7 percent in accordance with the 2010 U.S. Census Bureau data.

 

CSB HMDA LAR data for 2017 indicates that 11.5 percent of loans, by number, were extended to low-income borrowers in the AA, while 2015 ACS data shows that 17.9 percent of families in the AA are considered low-income. The bank's performance is significantly less than relevant demographic data; however, additional factors were considered. The bank's lending to this category of borrower is slightly less than the previous year, but within reason. Although appearing lower, the bank's level of lending is reasonable when consideration is given to the product category and affordability. An estimated 6.9 percent of these low-income families are below the poverty level. Based upon calculations derived from the average median housing values within the AA and industry-standard underwriting criteria, these families are likely to experience difficulty qualifying for a home mortgage loan due to monthly payment and down payment requirements.

 

The bank' s performance in lending to moderate-income borrowers in 2017 of 24.0 percent significantly exceeds relevant demographic data of 17.1 percent, and is considered excellent.

 

Overall, the distribution of home mortgage lending to LMI borrowers is considered reasonable during the review period based on these comparisons.

 

In summary, the Borrower Profile review reflects a reasonable penetration of lending among farms and businesses of varying revenue levels and home mortgage borrowers of different income levels throughout the AA. This performance criterion illustrates management's responsiveness to AA credit needs, including those of small farm and businesses operators and LMI individuals.

 

COMMUNITY DEVELOPMENT TEST

 

CSB's community development performance demonstrates an adequate responsiveness to community development needs in the Non-MSA AA, considering the institution's capacity, as well as the need and availability of such community development opportunities in the AA.

 

Community Development Loans

 

CSB originated 100 community development loans totaling over $3.4 million to benefit the Non­ MSA AA in an effort to encourage economic development and revitalize certain CTs within the AA. Examples include:

      • One loan totaling $360,755 was granted to a non-profit entity which used funds for the construction of essential public services in an underserved nonmetropolitan middle­ income geography to revitalize or stabilize the area.
      • One loan totaling $100,000 was granted to an entity that fostered economic development by providing financing that allowed for job creation, retention or improvement within underserved nonmetropolitan middle-income geography.

 

Qualified Investments

 

Qualified investments and donations were made by CSB within the Non-MSA AA in an effort to promote economic development or revitalize and stabilize certain geographies. In total, CSB made 50 qualified investments and donations totaling $1,015,000. This total includes four continued bond investments that were for the improvement and expansion of a regional hospital and emergency management services that benefit an underserved area. Those investments currently stand at $695,000. One new investment of $250,000 was made since the prior evaluation, also for the benefit of the regional hospital.

 

The qualified investment total also includes approximately $70,000 of contributions made through 45 donations. Some types of organizations located in this AA that the bank contributed to during the review period include:

      • Organizations providing essential public services in an underserved nonmetropolitan middle-income geography to revitalize or stabilize the area.
      • A non-profit organization that provides food supplies to LMI individuals.
      • An organization that supports economic development through permanent job creation, retention, and/or improvement for LMI persons.
      • An entity which used funds for the construction of essential public services in an underserved nonmetropolitan middle-income geography to revitalize or stabilize the area.

Community Development Services

 

CSB provided 86 services to 30 different organizations in the Non-MSA AA during the review period. Financial and technical expertise provided were to organizations that support affordable housing or community services to LMI individuals; promote economic development; or promote stabilization or revitalization efforts to the area's underserved middle-income geographies.

Affordable housing was an identified community development need affirmed by a community contact. Retail banking services provided in the AA are consistent with what has already been described in the overall bank-wide performance. Examples of the types of community development services provided by CSB in this AA are detailed as follows:

      • Serving on the Board facility that offers essential home and healthcare services which revitalizes or stabilizes an underserved middle-income geography.
      • Serving as a board member for an entity that focuses on economic development through support of permanent job creation, retention, and/or improvement for LMI persons.

 

Retail banking services provided in the AA are consistent with what has already been described in the overall bank-wide performance.

 

CONCLUSIONS ON PERFORMANCE CRITERIA CEDAR RAPIDS MSA AA

 

 

LENDING TEST

As indicated under the "Scope of Evaluation," the Cedar Rapids MSA AA and the Non-MSA AA were given the greatest weight in this evaluation and equal weight is granted small business and home mortgage lending. Due to the low volume of small farm lending in the Cedar Rapids AA, this product was not reviewed.

 

Geographic Distribution

Overall, CSB's geographic distribution is reasonable, and reflects management's willingness to extend loans throughout the defined AA.

 

Small Business Loans

CSB's dispersion of sampled small business loans reflects reasonable penetration when comparing to relevant demographic data.

 

Geographic Distribution of Small Business Loans

Assessment Area: CR MSA AA

 

Tract Income Level

 

% of Businesses

 

#                     %

 

$(000s)                %

Low

4.1

0

0.0

0

0.0

Moderate

16.4

4

17.4

302

11.1

Middle

54.7

15

65.2

2,113

77.7

Upper

19.0

4

17.4

304

11.2

Not Available

5.8

0

0.0

0

0.0

Totals

100.0

23

100.0

2,719

100.0

Source: 2017 D&B Data; Bank Data

Due to rounding, totals may not equal 100 .0

 

The preceding table shows that D&B data indicates 4.1 percent of small business operations are located in low-income, and 16.4 of small business operations are located in moderate-income geographies. The distribution of small business loans originated in 2017 is reasonable when compared to area demographics.

 

Home Mortgage Loans

CSB's dispersion ofHMDA-rep01ted home mortgage loans reflects reasonable penetration when comparing to relevant demographic and HMDA aggregate data.

 

 

Geographic Distribution of Home Mortgage Loans

Assessment Area: CR MSA AA

 

Tract Income Level

% of Owner- Occupied Housing Units

Aggregate Performance

% of#

 

#

 

%

 

$(000s)

 

%

Low

 

2016

0.3

0.1

0

0.0

0

0.0

2017

0.9

 

0

0.0

0

0.0

Moderate

 

2016

15.0

12.5

3

4.6

370

4.7

2017

17.6

 

11

16.7

824

12.7

Middle

 

2016

51.8

46.5

45

69.2

5,470

68.8

2017

61.5

 

41

62.1

4,058

62.6

Upper

 

2016

32.9

40.9

17

26.2

2,110

26.5

2017

19 .8

 

13

19 .7

1,559

24.0

Not Available

 

2016

0.0

0.0

0

0.0

0

0.0

2017

0.2

 

 

1.5

43

0.7

Totals

 

2016

100.0

100.0

65

100.0

7,950

100.0

2017

100.0

 

66

100.0

6,484

100.0

Source: 2010 U.S. Census & 2015 ACS Census; Bank Data, 2016 HMDA Aggregate Dara, "-- " data not available. Due to rounding, totals may not equal 100.0

 

The geographic distribution of home mortgage loans reflects reasonable dispersion throughout the AA. Examiners focused on the comparison to aggregate data. The bank's lending in low­ income CTs in 2016, is reasonable when compared to aggregate and demographic data. The bank's lending in moderate-income CTs in 2016 is considered poor. This level of lending is significantly lower than aggregate performance of 12.5 percent and relevant demographics at

15.0 percent.

 

In 2017, the bank's level of lending in low-income CTs compares reasonably to area demographics. The bank's lending in moderate-income geographies also compares reasonably to area demographics, and significantly increased to 16.7 percent from 4.6 the previous year.

Overall, the bank's home mortgage lending performance is considered reasonable for the review period.

 

There results of the review of the geographic distribution of loans criterion shows that there is a reasonable dispersion of small business and home mortgage loans among all geographies, overall.

 

Borrower Profile

The following tables show that CSB has a poor penetration of lending to businesses of different revenue sizes and a reasonable penetration to individuals of different income levels in the Cedar Rapids MSA AA. This data includes only those loans granted inside the AA.  Examiners focused primarily on the percentage by number of small business and small farm loans to entities with GARs equal to or less than $1 million and percentage by number of loans to LMI home mortgage borrowers.

 

Small Business Loans

The following table shows CSB's lending to businesses with GARs of $1 million or less significantly lags demographic information, reflecting poor performance.

 

Distribution of Small Business Loans by Gross Annual Revenue Category

 

Assessment Area: CR MSA AA

 

Gross Revenue Level                    %

 

of Businesses

 

#                               %

 

$(000s)

 

%

<=$1,000,000

80.2

13

56.5

836

30.7

>1,000,000

7.5

9

39.1

1,858

68.3

Revenue Not Available

12.3

 

4.3

25

0.9

Total

100.0

23

100.0

2,719

100.0

Source: 2() 17 D&B Data. Bank Dara.

Due to rounding, totals may not equal l 00.0

 

CSB extended 56.5 percent of small business loans by number to operations with GARs of $1 million or less. In comparison, D&B data states that 80.2 percent of AA businesses reported revenues less than or equal to $1,000,000. The bank's level of lending is significantly less than area demographics. Management stated that the loss of two key lenders in this area has impacted CSB's lending performance in this AA. Also, some businesses have taken advantage of lower rate financing opportunities offered directly through the SBA. It is noted that 12.3 percent of all AA businesses did not report revenue information to D&B, which may impact results, though it is unlikely that the omission of these revenues would materially alter conclusions with regard to the bank's performance.

 

Management stated and examiners confirmed that several of the businesses in the largest revenue category have been long-time customers, which grew from small operators to large operators over time.

 

In considering bank and performance context factors of the area, the bank still demonstrates poor performance in its loan distribution among small business operations of all revenue levels in the Cedar Rapids MSA AA.

 

Home Mortgage Loans

The following table depicts the home mortgage loans originated to AA borrowers of different income levels by number and dollar volume, along with corresponding demographics and aggregate HMDA data. Overall, borrower profile results reflect reasonable penetration of lending to home mortgage borrowers of all income levels when considering all pertinent data.

 

Distribution of Home Mortgage Loans by Borrower Income Level

 

Assessment  Area: CR MSA AA

 

Borrower Income Level

 

% of Families

Aggregate Performance

% of#

 

#

 

%

 

$(000s)

 

%

Low

 

2016

17.1

10.9

5

7.7

811

10.2

2017

18.6

 

6

9.1

505

7.8

Moderate

 

2016

18.9

20.8

19

29.2

1,574

19.8

2017

17.7

 

11

16.7

543

8.4

Middle

 

2016

23.6

20.4

14

21.5

1,419

17.8

2017

23.8

 

11

16.7

801

12.4

Upper

 

2016

40.4

28.9

22

33.8

3,521

44.3

2017

39.9

 

23

34.8

2,646

40.8

Not Available

 

2016

0.0

19.0

5

7.7

625

7.9

2017

0.0

 

15

22.7

1,9 89

30.7

Totals

 

2016

100.0

100.0

65

100.0

7,950

100.0

2017

100.0

 

66

100.0

6,484

100.0

Source: 2010 U.S. Census & 2015 ACS Census; Bank Data, 2016 HMDA Aggregate Data, "-- " data not available. Due to rounding, totals may not equal 100.0

 

The distribution of home mortgage loans has fluctuated over the review period. CSB's home mortgage lending to low-income borrowers during 2016 is considered poor. The bank's lending performance of 7.7 percent is less than both aggregate data of 10.9 percent, and demographic data of 17.1 percent. CSB's lending to moderate-income borrowers during the same time period significantly surpassed both aggregate and demographic data, which is considered excellent.

CSB extended 29.2 percent of its home mortgage loans to moderate-income borrowers. This exceeds aggregate data, which shows 20.8 percent of loans extended by all HMDA reporters serving this AA were to moderate-income borrowers for the reporting year. Both CSB and aggregate data were higher than demographic data of 18.9 percent in accordance with the 2010

U.S. Census Bureau data.

 

 

CSB HMDA LAR data for 2017 indicates that 9.1 percent of loans, by number, were extended to low-income borrowers in the AA, while 2015 ACS data shows that 18.6 percent of families in the AA are considered low-income. The bank's performance is significantly less than relevant demographic data which is considered poor. The bank's performance in lending to moderate­ income borrowers in 2017 of 16.7 percent is slightly lower than relevant demographic data of

    1. percent; however, it is considered reasonable.

 

Overall, the distribution of home mortgage lending to LMI borrowers is considered reasonable during the review period, given the performance context information. Management stated that the loss of two key lenders has had an impact on CSB's lending performance in this AA.

 

In summary, the Borrower Profile review reflects a poor penetration of lending among businesses of varying revenue levels, and reasonable penetration of lending among home mortgage borrowers of different income levels throughout the AA, for a reasonable loan penetration by borrower profile, overall.

 

COMMUNITY DEVELOPMENT TEST

 

CSB's community development performance demonstrates an adequate responsiveness to community development needs in the Cedar Rapids MSA AA, considering the institution's capacity, as well as the need and availability of such community development opportunities in the AA.

 

Community Development Loans

 

CSB originated 19 loans totaling nearly $1.3 million with benefit to the Cedar Rapids MSA AA, all in an effort to encourage economic development and revitalize certain CTs within the AA. Examples include:

      • One loan totaling $270,750 financed a non-profit entity located in a moderate-income CT. The loan revitalized or stabilized a moderate-income CT by helping to retain jobs and provide educational services.
      • Three SBA 504 loans totaling $270,000, for the purpose of business construction and operating costs, fostered economic development through job creation, retention, or improvement within low-income geographies.

 

Qualified Investments

 

There were no qualified investments made within the Cedar Rapids MSA AA. A total of eight qualified donations equaling just under $16,000 were devoted to the Cedar Rapids MSA AA. Examples of bank donation dollars during the review period include:

      • A local medical clinic that provides necessary healthcare services to LMI families in need throughout the area.
      • An organization that supports economic development through permanent job creation, retention, and/or improvement for LMI persons.

 

      • A non-profit organization that provides food supplies to LMI individuals.

 

Community Development Services

 

There were no examples of instances where employees devoted financial or technical expertise to organizations that promote community development in accordance with the CRA. Retail banking services provided in the AA are consistent with what has already been described in the overall bank-wide performance.

 

 

CONCLUSIONS ON PERFORMANCE CRITERIA DUBUQUE MSA AA

 

LENDING TEST

As indicated under the "Scope of Evaluation," the Dubuque MSA AA was given a lesser amount of weight in this evaluation, and equal weight is granted to small business and home mortgage lending. Due to the low volume of small farm lending in the Dubuque MSA AA, this product was not reviewed.

 

Geographic Distribution

As stated previously, there are no LMI CTs in the Dubuque MSA AA; therefore, this factor was not evaluated in this AA.

 

Borrower Profile

The following tables show that CSB has an excellent penetration of lending to businesses of different revenue sizes and a poor penetration to individuals of different income levels in the Dubuque MSA AA. This data includes only those loans granted inside the AA. Examiners focused primarily on the percentage by number of small business loans to entities with GARs equal to or less than $1 million and percentage by number of loans to LMI home mortgage borrowers.

 

Small Business Loans

The following table shows CSB's excellent level of lending to small farms in this AA.

 

Distribution of Small Business Loans by Gross Annual Revenue Category

 

Assessment Area: DBQ MSA AA

 

Gross Revenue Level                  %

 

of Businesses

 

#                              %

 

$(000s)

 

%

<=$1, 000,000

80.8

7

1 00.0

537

100  .0

>1,000,000

8.1

0

0.0

0

0.0

Revenue Not Available

11.1

0

0.0

0

0.0

Total

100.0

7

100.0

537

100.0

Source: 2017 D&B Data, Bank Da ta.

Due to rounding, totals may not equal 100.0

 

The preceding table shows that CSB extended all of its small business loans in the Dubuque MSA AA to operations with GARs of $1,000,000 or less. In comparison, D&B data states that

    1. percent of AA businesses reported GARs of $1,000,000 or less. This is considered excellent, indicating management's willingness to provide credit to smaller commercial operations in the Dubuque MSA AA.

 

Home Mortgage Loans

The distribution of home mortgage loans to individuals of different income levels, including LMI borrowers, is reasonable. Examiners focused on the comparison to aggregate data.

 

Distribution of Home Mortgage Loans by Borrower Income Level

 

Assessment Area: Edgewood DBQ AA

 

Borrower Income Level

 

% of Families

I                                                                       I

Aggregate Performance

% of#

I

 

 

#

 

%

 

$(000s)

 

%

Low

 

2016

12.1

5.3

2

9.1

170

7.7

2017

12.3

 

2

9.1

221

5.8

Moderate

 

2016

17.9

19.4

4

18.2

272

12.4

2017

15.9

 

6

27.3

517

13.5

Middle

 

2016

25.6

24.0

8

36.4

716

32.6

2017

25.2

 

3

13.6

597

15.6

Upper

 

2016

44.4

42.0

7

31.8

922

42.0

2017

46.7

 

11

50.0

2,493

65.1

Not Available

 

2016

0.0

9.3

1

4.5

116

5.3

2017

0.0

 

0

0.0

0

0.0

Totals

 

2016

100.0

100.0

22

100.0

2,196

100.0

2017

100.0

 

22

100.0

3,828

100.0

Source: 2010 U.S. Census & 2015 ACS Census; Bank Data, 2016 HMDA Aggregate Data, "-- " data not available. Due to roundin g, totals may not equal 100.0

 

The bank's lending to low-income borrowers at 9.1 percent in 2016 is higher than aggregate data of 5.3 percent; however, the bank's lending and the aggregate data are both lower than the demographic data of 12.1 percent. The bank's lending to low-income borrowers at 9.1 percent in 2017 is lower than the demographic data of 12.1 percent.

 

For moderate-income borrowers, the bank's lending in 2016 at 18.2 is slightly lower than aggregate performance of 19.4 percent, but more than the demographic data of 17.9 percent. In 2017, the bank's lending performance of 27.3 percent with regard to moderate-income borrowers is excellent when compared to demographic data of 15.9 percent.

 

Overall, the distribution of home mortgage lending to LMI borrowers is considered reasonable during the review period.

 

In summary, the Borrower Profile review reflects an overall reasonable penetration of lending among businesses of varying revenue levels and home mortgage borrowers of different income levels throughout the AA.

 

CSB's reasonable performance in the Lending Test illustrates management's overall responsiveness to AA credit needs, including those of small farm and businesses operators and individuals of all income categories.

COMMUNITY DEVELOPMENT TEST

 

CSB's community development performance demonstrates poor responsiveness to community development needs in the Dubuque MSA AA, considering the institution's capacity, as well as the need and availability of such community development opportunities in the AA. There were no community development loans, qualified investments, or community development services reported for this AA. While the bank's performance in this area is poor, it has little impact on the bank's overall Community Development test rating because performance in the other AAs was weighted more heavily.

 

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.

 

Community Development: For loans, investments, and services to qualify as community development activities, their primary purpose must:

      1. Support affordable housing for low- and moderate-income individuals;
      2. Target community services toward low- and moderate-income individuals;
      3. Promote economic development by financing small businesses or farms;
      4. Provide activities that revitalize or stabilize low- and moderate-income geographies, designated disaster areas, or distressed or underserved nonmetropolitan middle-income geographies; or
      5. Enable or facilitate projects or activities that address needs regarding foreclosed or abandoned residential properties in designated target areas.

 

Community Development Corporation (CDC): A CDC allows banks and holding companies to make equity type of investments in community development projects. Bank CDCs can develop innovative debt instruments or provide near-equity investments tailored to the development needs of the community. Bank CDCs are also tailored to their financial and marketing needs. A CDC may purchase, own, rehabilitate, construct, manage, and sell real property. Also, it may make equity or debt investments in development projects and in local businesses. The CDC activities are expected to directly benefit low- and moderate-income groups, and the investment dollars should not represent an undue risk on the banking organization.

 

Community Development Financial Institutions (CDFis): CDFis are private intermediaries (either for profit or nonprofit) with community development as their primary mission. A CDFI facilitates the flow of lending and investment capital into distressed communities and to individuals who have been unable to take advantage of the services offered by traditional financial institutions. Some basic types of CDFis include community development banks, community development loan funds, community development credit unions, micro enterprise funds, and community development venture capital funds.

 

A certified CDFI must meet eligibility requirements. These requirements include the following:

  • Having a primary mission of promoting community development;
  • Serving an investment area or target population;
  • Providing development services;
  • Maintaining accountability to residents of its investment area or targeted population through representation on its governing board of directors, or by other means;
  • Not constituting an agency or instrumentality of the United States, of any state or political subdivision of a state.

 

Community Development Loan: A loan that

  1. Has as its primary purpose community development; and
  2. Except in the case of a wholesale or limited purpose bank:
    1. Has not been reported or collected by the bank or an affiliate for consideration in the bank's assessment area as a home mortgage, small business, small farm, or consumer loan, unless it is a multifamily dwelling loan (as described in Appendix A to Part 203 of this title); and
    2. Benefits the bank's assessment area(s) or a broader statewide or regional area including the bank's assessment area(s).

 

Community Development Service: A service that

  1. Has as its primary purpose community development;
  2. Is related to the provision of financial services; and
  3. Has not been considered in the evaluation of the bank's retail banking services under§ 345.24(d).

 

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.

 

Distressed Middle-Income Nonmetropolitan Geographies: A nonmetropolitan middle­ income geography will be designated as distressed if it is in a county that meets one or more of the following triggers:

  1. An unemployment rate of at least 1.5 times the national average;
  2. A poverty rate of 20 percent or more; or
  3. A population loss of 10 percent or more between the previous and most recent decennial census or a net migration loss of 5 percent or more over the 5-year period preceding the most recent census.

 

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 refinancings 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 mcome.

 

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, b01Tower 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.

 

Low Income Housing Tax Credit: The Low-Income Housing Tax Credit Program is a housing program contained within the Internal Revenue Code of 1986, as amended. It is administered by the U.S. Department of the Treasury and the Internal Revenue Service. The U.S. Treasury Department distributes low-income housing tax credits to housing credit agencies through the Internal Revenue Service. The housing agencies allocate tax credits on a competitive basis.

 

Developers who acquire, rehabilitate, or construct low-income rental housing may keep their tax credits. Or, they may sell them to corporations or investor groups, who, as owners of these properties, will be able to reduce their own federal tax payment s. The credit can be claimed annually for ten consecutive years. For a project to be eligible, the developer must set aside a specific percentage of units for occupancy by low-income residents. The set-aside requirement remains throughout the compliance period, usually 30 years.

 

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.

 

Qualified Investment: A lawful investment, deposit, membership share, or grant that has as its primary purpose community development.

 

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 Investment Company (SBIC): SBICs are privately-owned investment companies which are licensed and regulated by the Small Business Administration (SBA). SBICs provide long-term loans and/or venture capital to small firms. Because money for venture or risk investments is difficult for small firms to obtain, SBA provides assistance to SBICs to stimulate and supplement the flow of private equity and long-term loan funds to small companies. Venture capitalists participate in the SBIC program to supplement their own private capital with funds borrowed at favorable rates through SBA's guarantee of SBIC debentures.

These SBIC debentures are then sold to private investors. An SBIC's success is linked to the growth and profitability of the companies that it finances. Therefore, some SBICs primarily assist businesses with significant growth potential, such as new firms in innovative industries. SBICs finance small firms by providing straight loans and/or equity-type investments. This kind of financing gives them partial ownership of those businesses and the possibility of sharing in the companies' profits as they grow and prosper.

 

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.

 

Underserved Middle-Income Nonmetropolitan Geographies: A nonmetropolitan middle­ income geography will be designated as underserved if it meets criteria for population size, density, and dispersion indicating the area's population is sufficiently small, thin, and distant from a population center that the tract is likely to have difficulty financing the fixed costs of meeting essential community needs.

 

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, and 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.