Out of 72 banks examined recently for Community Reinvestment Act (CRA) compliance, only one bank was rated “needs improvement” and six were “outstanding,” according to the federal bank deposit insurer’s list of ratings assigned in June and released Wednesday. All others were rated “satisfactory.”
The Federal Deposit Insurance Corp. (FDIC) reported no bank from this list as being in “substantial noncompliance” with its CRA responsibilities.
The CRA was enacted in 1977 to address banks’ redlining activities. The law is 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. The possible ratings in a CRA evaluation are “outstanding,” “satisfactory,” “needs to improve,” and “substantial noncompliance.”
The one bank FDIC described Wednesday as “needs improvement” was Preferred Bank of Los Angeles, Calif. Rated “outstanding” were:
- Medallion Bank, Salt Lake City, Utah;
- Unibank, Lynnwood, Wash.;
- Passumpsic Savings Bank, St. Johnsbury, Vt.;
- Deutsche Bank Trust Company Delaware, Wilmington, Del.;
- The Stock Exchange Bank, Woodward Okla.; and
- Urban Partnership Bank, Chicago, Ill.
Preferred Bank, Medallion Bank and Unibank are all in FDIC’s San Francisco region.