Just got a call from our executive vice president and he is curious if we open an LPO (loan production office) does that automatically bring that area into our assessment area. This will not be a branch as we will not except deposits or anything like that. It will basically be a loan officer and an loan processor/assistant.

An LPO, unlike a branch or deposit taking ATM, does not require an automatic adjustment to the AA if in a new county. The bank will have to monitor production from this office for any affect on the inside/outside ratio. Depending upon the size of your bank & the level of lending from this office, at some point you might need to give serious consideration to bringing the areas where a large number of loans are being originated into the AA.

What if the proposed LPO is outside the region or in this case the state that you are in???

Same thing. Pay attention to what it does to your data.