One bank receiving an “outstanding” rating and four others receiving “needs to improve” scores were among the 43 financial institutions listed in evaluations during November for compliance with the Community Reinvestment Act (CRA), released by the Federal Deposit Insurance Corporation (FDIC) Monday.
Farmers State Bank of Booneville, Ky. ($52 million in assets) received the sole rating of “outstanding” based on November evaluations. The rating is the highest a bank may receive in the evaluations.
The four banks receiving “needs to improve” ratings (the second-lowest rating among the four available, above only “substantial non-compliance”) were Citizens Bank of Mooresville, Ind. (assets: $458 million); Pearland State Bank of Pearland, Texas (assets: $182 million); Bank of Hamilton, Hamilton, N.D. (assets: $19.5 million); and Western Dakota Bank, Timber Lake, S.D. (assets: $36 million).
The evaluations are for state nonmember banks and their compliance with the CRA, a 1977 law intended to encourage insured banks and thrifts to meet local credit needs, including those of low- and moderate-income neighborhoods, consistent with safe and sound operations, according to FDIC.
The remaining 38 banks received “satisfactory” ratings as a result of their CRA evaluations.