Of the 77 state nonmember banks recently evaluated by the federal bank deposit insurer for compliance with the Community Reinvestment Act (CRA), all were deemed “satisfactory” save three: one rated “outstanding,” and two others rated “needs improvement.”
The one “outstanding” CRA rating went to Cambridge Savings Bank in Cambridge, Mass. The two “needs improvement” ratings went to Bank of Pensacola and Bank of the South, both in Pensacola, Fla.
The list, released Thursday by the Federal Deposit Insurance Corp. (FDIC), covers CRA evaluation ratings assigned by the FDIC this January to institutions throughout six regions.
The CRA, enacted in 1977, is an “anti-redlining” law that is meant to encourage federally insured banks and thrifts to meet local credit needs, including those of low- and moderate-income neighborhoods, consistent with safe and sound operations. FDIC notes that the Financial Institutions Reform, Recovery, and Enforcement Act of 1989 (FIRREA) requires public disclosure of the CRA compliance evaluation and rating for each institution examined for CRA compliance on or after July 1, 1990.