Social Performance Metrics Definitions
Development Deposit Intensity (DDI) - Given the importance and demonstrated impact of bank branches in low- and moderate - income (LMI) communities, DDI is a place based metric that quantifies the proportion of a bank's branches that are located in LMI areas. A DDI score greater than 50% is the threshold for superior impact of Quadrant 1 institutions.
Development Lending Intensity - HMDA (DLI) - Using lending data reported by financial instititutions as part of the Home Mortgage Disclosure Act (HMDA), this place based metric provides information on the bank's lending concentration in LMI communities. A DLI score greater than 40% is the threshold for superior impact of Quadrant 1 institutions.
Mission - To categorize banks, the Mission? variable identifies if a bank is a certified Community Development Financial Institution (CDFI), Minority Depository Institution (MDI), and/or a Quadrant 1 institution with a DDI score greater than 50% and DLI score greater than 40%.
CRA Rating - According to the FDIC, CRA ratings measures the institution’s performance in meeting the credit needs within its communities with respect to the institution’s “resources and capabilities”. Federal institutions are ranked based on 4 possible scores of Outstanding, Satisfactory, Needs to Improve, and Substantial Noncompliance.