The Federal Reserve Board, the FDIC, and the OCC issued the host state loan-to-deposit ratios that the banking agencies will use to determine compliance with section 109 of the Riegle-Neal Interstate Banking and Branching Efficiency Act of 1994. which prohibits a bank from establishing or acquiring a branch or branches outside of its home state primarily for the purpose of deposit production. Section 109 also prohibits branches of banks controlled by out-of-state bank holding companies from operating primarily for the purpose of deposit production. These ratios update data released on June 29, 2009. Section 109’s two-step compliance process involves a loan-to-deposit ratio screen that compares a bank’s statewide loan-to-deposit ratio to the host state loan-to-deposit ratio for banks in a particular state; and if a bank’s statewide loan-to-deposit ratio is less than one-half of the published ratio for that state, or if data is not available at the bank to conduct the first step, a determination by the appropriate banking agency of whether the bank is reasonably helping to meet the credit needs of the communities served by the bank’s interstate branches.