More than 90% of banks earn ‘satisfactory’ rating in December release for CRA

More than nine in every 10 banks evaluated for compliance with anti-redlining regulations received a “satisfactory” rating, according to scores released for December Tuesday by the Federal Deposit Insurance Corp. (FDIC).

Of the 87 banks whose evaluations were released (based on evaluations assigned to institutions in September 2018, the FDIC said), 80 received the “satisfactory” rating. The balance received “outstanding” ratings; no banks received ratings of either “NI” (for “Needs to Improve”) or SN (for “Substantial Non-compliance”). The evaluations gauge bank and thrift compliance with regulations implementing the anti-redlining Community Reinvestment Act (CRA).

The December ratings are in line with those released in past months by the regulator, which evaluates compliance by state nonmember banks. That is: the vast majority of banks and thrifts earn “satisfactory” ratings upon evaluation by the regulator. The ratings are also in line with those recently released by the Office of the Comptroller of the Currency (OCC) for national banks and thrifts.

A Regulatory Report review in November of CRA evaluations released by the OCC over the last three years shows that 82% of the institutions evaluated received “satisfactory” ratings.

A rating of “outstanding” – the highest rating – was considerably less common, given to 16% of all institutions over the last three years. The low ratings of “NI” and “SN” are even more rarely bestowed – combined, less than 1% since November 2015.

Banks receiving “outstanding” evaluations from FDIC in its December report were:

  • McKinley Bank, Fairbanks, Alaska
  • Community Valley Bank, El Centro, Calif.
  • Bank of Feather River, Yuba City, Calif.
  • Peoples Exchange Bank, Stanton, Ky.
  • Sidney State Bank, Sidney, Mich.
  • Garfield County Bank, Jordan, Mont.
  • Capital Bank of New Jersey, Vineland, N.J.

FDIC Issues List of Banks Examined for CRA Compliance