Five banks earn ‘outstanding’ CRA scores from FDIC in April; none among other 68 ‘needs to improve’

Five state nonmember banks out of 73 evaluated in April for compliance with the Community Reinvestment Act (CRA) received ratings of “outstanding,” the Federal Deposit Insurance Corp. (FDIC) said Thursday. No bank received a rating of either “needs to improve” or “substantial non-compliance.”

The remaining 68 banks evaluated received ratings of “satisfactory.”

The five banks receiving “outstanding” ratings in the April evaluations were: First Bank and Trust of Memphis (Texas); Eastern Bank (Boston, Mass.); NorthEast Community Bank (White Plains, N.Y.); Pacific Western Bank (Beverly Hills, Calif.); and Central Bank (Provo, Utah).

CRA is 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. As part of the Financial Institutions Reform, Recovery, and Enforcement Act of 1989 (FIRREA), Congress mandated that, beginning July 1, 1990, an evaluation and rating for each bank or thrift that undergoes a CRA examination be disclosed.

The FDIC noted (as it does routinely) that a copy of an individual bank’s CRA evaluation is available directly from the bank, which is required by law to make the material available upon request, or from the FDIC’s Public Information Center.

FDIC Issues List of Banks Examined for CRA Compliance