Agencies release list of distressed or underserved nonmetropolitan middle-income geographies

Federal bank regulators published the 2026 list of distressed or underserved nonmetropolitan middle-income geographies where certain revitalization activities qualify for Community Reinvestment Act credit, the agencies announced Monday [1]. The list, jointly released by the Board of Governors of the Federal Reserve System, the Federal Deposit Insurance Corporation, and the Office of the Comptroller of the Currency, identifies areas where local economic conditions — including unemployment, poverty, and population changes — meet the threshold for the designation [1]. Banks that undertake revitalization or stabilization activities in these geographies can receive CRA consideration under the community development definition for 12 months after publication of the current list [1]. The agencies also apply a one-year lag period for geographies that appeared on the 2025 list but are no longer designated as distressed or underserved in the current release [1]. The Community Reinvestment Act requires the agencies to assess a bank's record of meeting the credit needs of its entire community, including low- and moderate-income neighborhoods, consistent with safe and sound operations [1]. The FDIC, one of the three issuing agencies, was created by the Banking Act of 1933 during the Great Depression to restore trust in the American banking system after more than one-third of banks failed in the preceding years [3]. As of December 2025, the FDIC provided deposit insurance at 4,336 institutions, and the Deposit Insurance Fund stood at $153.9 billion, representing a 1.42% reserve ratio [3]. The agency is funded by member-bank insurance dues rather than public funds [3]. The Federal Reserve System, which also participated in the release, derives its authority from the Federal Reserve Act passed by Congress in 1913 and is described as "independent within the government" rather than "independent of government" [4]. It does not require public funding and instead remits its profits to the U.S. federal government [4]. The Office of the Comptroller of the Currency, the third agency, charters, regulates, and supervises national banks. The 2026 list continues a practice of periodically updating geographic designations to reflect shifting economic conditions. The agencies have published previous years' lists and the criteria used for designating these areas on their websites [1].