8 banks earn from FDIC ‘outstanding’ CRA ratings; 2 ‘need to improve’

Eight banks earned “outstanding” ratings for compliance with Community Reinvestment Act (CRA) requirements, and two banks earned “needs to improve” ratings, the Federal Deposit Insurance Corp. (FDIC) reported Friday.

Another 64 banks received “satisfactory” ratings from the FDIC, assigned to institutions in August. The ratings were released as the bank deposit insurer’s November report on bank CRA compliance. No banks earned a rating of “substantial non-compliance,” the lowest rating, according to an FDIC release.

Two of the banks earning the “outstanding” ratings are in New York (Bank of Holland in Holland, and Israel Discount Bank of New York, New York City); the remaining six are: Hills Bank and Trust Company, Hills, Iowa; The Cape Cod Five Cents Savings Bank, Orleans, Mass.; Republic Bank, Inc., Duluth, Minn.; First Security Bank of Nevada, Las Vegas; Coastway Community Bank, Warwick, R.I.

The two banks earning the “needs to improve” ratings are Community Bank of Pasadena, Calif.; and Tolleson Private Bank of Dallas, Texas.

According to the FDIC, a financial institution’s performance regarding CRA compliance is evaluated in the context of information about the institution (financial condition and business strategies), its community (demographic and economic data), and its competitors. Upon completion of a CRA examination, the FDIC rates the overall CRA performance of the financial institution using the four-tiered rating system of outstanding, satisfactory, needs to improve and substantial non-compliance.

“Large banks” under FDIC rules are subject to five tiers, which includes “high satisfactory” and “low satisfactory.”

FDIC Issues List of Banks Examined for CRA Compliance