Examining HMDA/CRA Census Tract Demographics

.. the ability to effectively analyze low, moderate, middle, and upper income population and households by small area geography is important to housing market stakeholders, lenders, investors, cities/neighborhoods and others. Low and moderate income data by block group and census tract are used for compliance, eligibility determination and program performance in many Federal programs and agencies. See the main Web page for more detail.

This section reviews the scope and use of the FFIEC 2019 HMDA/CRA census tract data (released September 2019). Use the interactive table to view, rank, compare selected items from these updated data for any/all tracts. Use GIS tools with these data to map and geospatially analyze these data as illustrated and further described as illustrated here. See more about banking, CRA and LMI tracts and more about these data.

Visual Analysis of Banks in Context Census Tract Demographics
Click graphic for larger view; expand browser window for best quality view.

– view developed using CV XE GIS and related GIS project.
– install this GIS tool and related GIS project on your computer to examines patterns, market share and more.

Low & Moderate Income Population by Census Tract
Low, moderate, middle, upper income classification by census tract is based on the median family income of a specific census tract relative to the metropolitan statistical area (MSA) or non-MSA area in which the tract is located. The FFIEC data include a “low and moderate income indicator”:
1 – Low — MFI is less than 50% of the MSA/parent area MFI
2 – Moderate — MFI is from 50% to 80% of the MSA/parent area MFI
3 – Middle — MFI is from 80% to 120% of the MSA/parent area MFI
4 – Upper — MFI is 120% or more of the MSA/parent area MFI
0 – NA — MFI is 0 or not available
where MFI is the Median Family Income

Low and moderate income designation is closely associated with implementation of the Home Mortgage Disclosure Act (HMDA) and the Community Reinvestment Act (CRA) and is a widely used in many other applications as a measure of economic prosperity.

Using the Interactive Table
Use the interactive table to examine individual tracts or sets of tracts as to their low and moderate income status and related demographics. The following view illustrates use of the table. Clicking buttons below table, this sequence of steps was used to obtain this view:
– click ShowAll
– click “Find CBSA; Low & Mod Tracts”
  >this selects tract in CBSA 26420 (Houston) that are low or mod
– click “Status Cols”
The table refreshes to show 470 tracts that are low/mod in this metro.
Finally, click the column header “Tract MFI %Region” to sort in descending order.

View your areas of interest. Start the steps over and use your CBSA code for a metro of interest.

Bankers Analytics Tools Web Sessions
Join me in a Bankers Analytic Tools Lab session (every Wednesday 3:00 pm ET) to discuss more details about accessing and using wide-ranging demographic-economic data and data analytics. Learn more about using these data for areas and applications of interest.
Topics:
• mapping and geospatially analyzing your data with FFIEC data
• tract demographic vintages and trends
• issues regarding MSA/MD vintage, change; about the 2018 vintage CBSAs
• defining and using assessment area geography
• examining the community & neighborhoods in context of assessment areas
• using the FDIC bank location/deposits data with FFIEC/ACS demographics
• using the FFIEC/ACS interactive table below
• alternative methods of accessing census tract ACS data

About the Author
— Warren Glimpse is former senior Census Bureau statistician responsible for innovative data access and use operations. He is also the former associate director of the U.S. Office of Federal Statistical Policy and Standards for data access and use. He has more than 20 years of experience in the private sector developing data resources and tools for integration and analysis of geographic, demographic, economic and business data. Contact Warren. Join Warren on LinkedIn.

Financial Institutions & Neighborhood Characteristics

Examining patterns of financial institutions, neighborhoods and geographic-demographic-economic relationships … this section is one of several related sections focused on data and resources useful to analyze America’s banks and savings institutions. This section is focused on use of Geographic Information System (GIS) tools to examine the nation’s 96,000 FDIC-insured institutions/branch offices in context of neighborhoods and economic prosperity. This is not intended as a study to draw conclusions, but rather to illustrate how these data and tools can be used to perform more detailed analyses for any metro, county or city in the U.S. See related more detailed Web section.

This section illustrates use of FDIC Deposit Market Share (DMS) data by institution. Subsequent sections will integrate other related data into the GIS applications including the FFIEC “Census 2014/2015” dataset (data by state, metro, county and census tract).

Deposit Market Share
The Deposit Market Share (DMS) is the percentage of deposits an FDIC-insuredinstitution has within a defined geographic market. We use these data in GIS applications reviewed below. See the example of the DMS Report in the related Web section. These data are based on the annual Summary of Deposits survey of FDIC-insured institutions. The DMS data provide information for each/all FDIC-insured institutions by address and a range of related attributes. Market presence and growth rate analyses can be examined annually by institution or bank holding company.

The 2014 annual DMS address-based data were geocoded and converted into a shapefile for GIS analysis. The DMS shapefile was integrated into a GIS project. The GIS project also includes a U.S. national scope census tracts shapefile with demographic-economic data from the 2013 American Community Survey 5-year estimates (ACS2013). GIS tools can be used to examine a single institution, institutions within a geographic area or aggregated within a geographic area. Optionally examine these institutional locations in context with patterns of neighborhood or regional economic prosperity (or choose many other types of subject matter).

Branch Locations by Size; Houston, Texas
The map presented below shows banks as markers in the Houston, TX area. Harris County appears with bold blank boundary. Bank markers shown by 2014 deposit size class. See size class/color patterns in legend at left of map.

Click graphic for larger view; view developed with CV XE GIS.
Map view developed using Banks2015 GIS Project.

Branch Locations in Context of Neighborhood Economic Prosperity
Similar to the map above, the map below shows banks as markers in the Houston, TX area. Patterns of economic prosperity (based on median household income – MHI) are shown by census tract/neighborhood. See MHI intervals/color patterns in legend at left of map. It is easy to see where concentrations of banks in more affluent neighborhoods.

Click graphic for larger view; view developed with CV XE GIS.

Selecting Specific Institutions — using site analysis tool
The map presented below shows financial institution locations as markers with a zoom-in to neighborhood level. The site analysis tool is used to select a set of institution locations within a census tract (red boundary, yellow label) — tract code 4115.01 or 411501, located in Harris County, TX. See more about census tracts. Eight locations are selected (hatched markers) using the circle selection method (any location intersecting with circle is selected). Alternatively select only one institution, visually cherry-pick certain institutions or apply a select-from-list query. One variable is summarized, sum of deposits 2014 ($2.2 billion for sum of these 8 locations).

Click graphic for larger view; view developed with CV XE GIS.

Tabular View of Selected Institutions
The view presented below shows the data grid populated with attributes of the eight selected locations (see above). This view is displayed by using the View File button — see at right of map view in above graphic. The table/grid shows the institution/branch name, sum of deposits for that location, and other attributes. Optionally save this selection of locations an a dbase/CSV/Excel/text file for further analysis.

Click graphic for larger view; view developed with CV XE GIS.

Deposit Market Share Report
The view presented below shows the Deposit Market Share Report for ZIP code 77027. This report is for the ZIP code area that includes the selected locations shown above. See the full interactive DMS report.

Click graphic for larger view.

Top 50 Commercial Banks & Savings Institutions Interactive Table
The following graphic shows the largest Commercial Banks & Savings Institutions among all FDIC-Insured Institutions based domestic deposits as of June 30, 2014. See full interactive table.

Click graphic for larger view.

Upcoming Blog Posts on Related Topics
Upcoming blog topics will include using the following data resources integrated into the GIS and related applications focused on financial institution and market research and analysis.
  • FFIEC tract level estimates (2010, 2013, 2014)
  • FFIEC 2015 tract estimates (not yet released)
  • ProximityOne tract demographic-economic estimates (2015) and projections (2020).
  • FFIEC “Census2014” dataset, containing 1,200+ subject matter items
  • Quarterly CEW county time series data on financial services sector establishments.
  • Other FDIC institutional characteristics by address/location.

About the Author
— Warren Glimpse is former senior Census Bureau statistician responsible for innovative data access and use operations. He is also the former associate director of the U.S. Office of Federal Statistical Policy and Standards for data access and use. He is developer of the CV XE GIS software used to develop the GIS project and views shown in this section. He has more than 20 years of experience in the private sector developing data resources and tools for integration and analysis of geographic, demographic, economic and business data.