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#1424964 - 08/05/10 08:15 PM Acquisition Question
Jaeger Schnitzel Offline
Gold Star
Jaeger Schnitzel
Joined: Nov 2005
Posts: 315
Oregon
Okay, say Bank A aquires Bank B. Bank A is an ISB. Bank B was a small bank. After the acquisition, Bank A still qualifies as an ISB, and does not report its small business and small farm loans.

So here's the question. If, in the portfolio of loans that Bank A purchased as part of the acquisition, there are loans that qualify as community development loans, does Bank A get to count them as CD loans in the year they were purchased?
_________________________
You keep using that word. I do not think it means what you think it means.

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CRA
#1426564 - 08/10/10 03:32 PM Re: Acquisition Question Jaeger Schnitzel
Lost in Space Offline
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Lost in Space
Joined: May 2010
Posts: 30
o Loco Loco
That question might be best answered by your regulator. Our bank (ISB previously, now large bank) merged three charters last year...our exam also last year focused on the surviving charter. We were allowed to include CD activities from the other two for the time period since the last exam of the surviving charter.

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#1426611 - 08/10/10 03:58 PM Re: Acquisition Question Lost in Space
Jaeger Schnitzel Offline
Gold Star
Jaeger Schnitzel
Joined: Nov 2005
Posts: 315
Oregon
Thanks for the response. I plan on shooting an e-mail to our contact at the FDIC, but I wanted to make sure there wasn't some obvious answer somwhere that I was missing.
_________________________
You keep using that word. I do not think it means what you think it means.

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#1429171 - 08/13/10 07:16 PM Re: Acquisition Question Jaeger Schnitzel
Diddy Offline
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Joined: Mar 2008
Posts: 8
I'm not sure but just wanted to say I love your signature line!

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#1429534 - 08/16/10 03:46 PM Re: Acquisition Question Diddy
AnonRegulator Offline
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AnonRegulator
Joined: Mar 2002
Posts: 451
Everywhere, USA
Bank A may claim credit for the CD loans originated within its CRA evaluation period, and for which Bank B didn't already receive credit in its last evaluation. Even though Bank B was a small bank, small banks may ask for CD consideration, at their option, in an attempt to improve a Sat rating to Outstanding. AR.

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