2 ‘outstanding,’ 1 ‘needs to improve’ in FDIC list of 66 bank CRA evaluations

A list of state nonmember banks whose Community Reinvestment Act (CRA) ratings were released Friday covers 66 banks across six regions, with all rated as “satisfactory” except for three.

The list, released by the Federal Deposit Insurance Corp. (FDIC), shows Security Bank and Trust Co. of Maysville, Ky., and Iowa State Bank of Des Moines, Iowa, received ratings of “outstanding” in their most recent CRA evaluations; while the rating of “needs to improve” went to Peoples Bank and Trust Company of Ryan, Okla.

The “needs to improve” rating for Peoples, according to the evaluation report from August 2017, was due to illegal practices involving the bank’s secondary mortgage operations, the report says; FDIC noted “substantive violations” of Section 5 of the Federal Trade Commission Act and Real Estate Settlement Procedures Act.

Evaluations under CRA, a 1977 anti-redlining statute, measure banks’ performance for their record of meeting the credit needs of their entire communities, including low- and moderate-income neighborhoods, consistent with safe and sound operation of the institution. Possible ratings are outstanding, satisfactory, needs to improve, and substantial noncompliance.

October 2018 List of Banks Examined for CRA Compliance