02-029-136 Me. Code R. § IV

Current through 2024-51, December 18, 2024

Section 029-136-IV - GENERAL PROVISIONS

A. Standards

A financial institution authorized to do business in this State is in compliance with 9-B M.R.S.A. §241(8), if it meets at least one of the following standards:

1. Its Maine deposits are less than two percent (2%) of total Maine deposits reported by all financial institutions authorized to do business in this State;

2. Its statewide loan-to-deposit ratio is equal to or greater than 50% of the Maine home state loan-to-deposit ratio;

3. Its statewide loan-to-deposit ratio is equal to or greater than 50%;

4. For a financial institution authorized to do business in this State whose home state is Maine, its most recent Community Reinvestment Act assessment by the institution's appropriate federal regulator is "satisfactory" or "outstanding;" or

5. For a financial institution authorized to do business in this State whose home state is not Maine, its most recent Community Reinvestment Act assessment for the State of Maine branch(es) by the institution's appropriate federal regulator is "satisfactory" or "outstanding."

The Maine home state loan-to-deposit ratio and the statewide loan-to-deposit ratio for each Maine-only financial institution and each interstate financial institution shall be calculated annually, using data obtained from the June 30 Call Report and the June 30 Maine Interstate Report.

B. Additional Performance Factors

If a financial institution authorized to do business in this State does not meet any of the standards set forth in Section IV(A) of this Regulation, then the Superintendent shall consider the following performance factors. Favorable consideration of these factors may result in a determination that the institution is in compliance with 9-B M.R.S.A. §241(8).

1. Other lending and investing activities in Maine of the financial institution, including loans originated for sale to secondary markets;

2. Lending activities in Maine of affiliates of the financial institution;

3. The length of time that the financial institution has been in operation in Maine;

4. The financial condition and statewide loan-to-deposit ratio trend of the financial institution;

5. The assessment area, as delineated in its Community Reinvestment Act Statement, of the financial institution;

6. The economic conditions, lending opportunities and credit needs in the assessment area, as delineated in its Community Reinvestment Act Statement, of the financial institution; and

7. Any other relevant factors that may be presented.

C. Reporting Requirements

Quarterly, each interstate financial institution shall file with the Bureau a Maine Interstate Report. For each Maine-only financial institution, the information contained in its Call Report shall satisfy the reporting requirements.

D. Penalty for Non-Compliance

If, after a review of the Standards and Performance Factors set forth in Sections IV(A) and IV(B) of this Regulation, the Superintendent determines that a financial institution authorized to do business in this State is not in compliance with 9-B M.R.S.A. §241(8), the Superintendent shall notify the institution in writing of that finding. The institution shall have 60 days from receipt of that notification to submit to the Superintendent a plan describing the means and timetable by which it shall come into compliance with 9-B M.R.S.A. §241(8). Within thirty days of receipt of a financial institution's remedial plan, the Superintendent shall notify the institution in writing of the plan's acceptance, acceptance with conditions, or rejection. The Superintendent may take any enforcement action, including issuing a cease and desist order pursuant to 9-B M.R.S.A., Chapter 23, if the institution does not submit a reasonable plan or fails to adhere to its submitted plan.

02-029 C.M.R. ch. 136, § IV