Old National Bank and the CRA

About the Community Reinvestment Act (CRA)

The Community Reinvestment Act (CRA) became law in 1977 as Title VII of the Housing and Community Development Act. The Office of the Comptroller of the Currency (OCC) adopted regulation 12 CFR Part 25 to implement the provisions of the CRA.                                            

In 1994, the federal agencies issued a revised CRA regulation that became effective in mid-1995. Under the revised CRA regulation, larger banks are examined under performance criteria divided into three “tests”:

• The lending test (50% of CRA Exam Rating)

• The investment test (25% of CRA Exam Rating)

• The service test (25% of CRA Exam Rating)

In 1999, CRA was once again the subject of congressional action when congress passed the Gramm-Leach-Bliley Financial Modernization Act. Banks and community groups must make public the full text of any CRA settlement involving a payment of over $10,000 or loans in excess of $50,000.

In 2005, CRA was again revised and created a new definition for intermediate small banks and added two additional criteria to the definition of Community Development.

Why the CRA law is important

• The purpose of the CRA law and regulations is to encourage financial institutions to help meet the credit needs of their local communities in which they are charted, consistent with the safe and sound operation of the institution.

• For CRA today, the strategic challenge is to meet the law’s underlying performance goals.  Old National must do an excellent job of meeting community needs and impact our business strategies positively.

• Taking CRA seriously, with a strong focus on community leadership and business goals, will establish Old National’s credibility within our communities and other public scrutiny.

• The focus of this comprehensive CRA strategy is to implement CRA in various ways that not only make good community sense, but also makes good business sense.

Read our CRA Policy Statement