I am fairly new to CRA and am trying to interpret analysis information performed by the Attus Group. I have about 20 loans spread across three census tracts that are outside of our assessment area. I am considering expanding our area to include these tracts. Is there any particular reason why that wouldn't be a good idea?? We are a small community bank with a new loan portfolio of 1200 loans for last year. Our current percentage of loans within our assessment area is 81.83%. Thanks!!!!

That's a good percentage of loans inside your assessment area.

The one reason I would re-evaluate adding census tracts would be can you fully service these census tracts? Do you have branches or deposit taking ATMs within these CTs?

We are right on the state line and these census tracts are across the border in the other state. We currently include the census tracts in the other state that touch the border. So, to answer your question, no, we don't have any branches or ATMs in that area to service the community in thoses areas. So you would advise against it? Thanks!

Every loan does not have to be inside your assessment area. and as long as you maintain more than 50% of your loans inside your assessment area you are fine.

FYI Census tracts across state lines need to be in a different assessment area.

If you are selecting some tracts you need to make sure that you are including whole geographies and not excluding LMI tracts