We have recently merged two separate banks into our bank. I am in the process of updating our public file, post-merger(s). Do I need to include a copy of the two merged bank's most recent PE in our public file as well as ours?

Don't think so, those banks don't exist any longer; there would be no prohibition either, if you think it would be helpful for the public - that is, if anyone asks for the public file

What about their disclosure statements for the previous two years?

My concern is that we have to submit their HMDA/CRA data just as they normally would, or consolidate their numbers into ours and submit one file. So - even though the banks do not exist any longer we still have to report their activity for the year. With that said - that is why I am questioning the contents of the public file. Even though they are not around any more we still have to show what they did. Both banks had a CRA evaluation in 2006 - so the PEs are recent. Are your thoughts still the same? Should we have the PEs and disclosure statements of the two banks in there?

You should write a memo discussing the transaction, and keep the disclosures for the other bank seperate from yours. You can put additional data in your public file. The Reg is stating at a minimum what you need to have in the book. I would not put a copy of the other banks PE in the public file. Their performance has nothing to do with your banks performance.

As shown below...I know this is regarding the actual data collection, but as the following scenarios show - I use this logic to carry forward into my public files as well. I am going through this right now and I will not be putting the HMDA disclosure for the non-surviving bank in my new CRA file.

The CRA Interagency Questions and Answers address the issue of merging
institutions. For your convenience, I have listed the Merger Q&A below.

§ __.42 – 5: When should merging institutions collect data?

A5. Three scenarios of data collection responsibilities for the calendar
year of a merger and subsequent data reporting responsibilities are
described below.

• Two institutions are exempt from CRA collection and reporting
requirements because of asset size. The institutions merge. No data
collection is required for the year in which the merger takes place,
regardless of the resulting asset size. Data collection would begin after
two consecutive years in which the combined institution had year-end assets
of at least $250 million or was part of a holding company that had year-end
banking and thrift assets of at least $1 billion.
• Institution A, an institution required to collect and report the
data, and Institution B, an exempt institution, merge. Institution A is
the surviving institution. For the year of the merger, data collection is
required for Institution A’s transactions. Data collection is optional for
the transactions of the previously exempt institution. For the following
year, all transactions of the surviving institution must be collected and
reported.
• Two institutions that each are required to collect and report the
data merge. Data collection is required for the entire year of the merger
and for subsequent years so long as the surviving institution is not
exempt. The surviving institution may file either a consolidated
submission or separate submissions for the year of the merger but must file
a consolidated report for subsequent years.

We hope this information helps,

The CRA Assistance Line

If you look at the second bullet in the example The bank has the choice of filing one or two seperate.

"(2) Banks required to report Home Mortgage Disclosure Act (HMDA) data. A bank required to report home mortgage loan data pursuant to part 203 of this chapter shall include in its public file a copy of the HMDA disclosure statement provided by the Federal Financial Institutions Examination Council pertaining to the bank for each of the prior two calendar years. In addition, a bank that elected to have the Board consider the mortgage
lending of an affiliate for any of these years shall include in its public file the affiliate’s HMDA disclosure statement for those years. The bank shall place the statement(s) in the public file within three business days after its receipt. "

So the surviving bank will need to account for the loans they made plus the loans for the other bank. The other bank is now part of the new bank and its record of meeting the credit needs of the AA is still a factor that will be examined at the next exam. So the disclosures should be in the file.