Ninety-two percent of 79 state nonmember banks recently evaluated by their federal deposit insurer for Community Reinvestment Act (CRA) compliance received the rating of “satisfactory,” while three each were rated “outstanding” and “needs to improve,” according to the February list of CRA ratings by the agency.
The Federal Deposit Insurance Corp. (FDIC) said the banks received the ratings in November 2018. The 79 banks evaluated include six banks in the Atlanta region; 20 in the Chicago region; 11 in the Dallas region; 28 in the Kansas City region; 11 in the New York region; and three in the San Francisco region.
CRA compliance ratings of “outstanding” were awarded to Mercantile Bank of Michigan, Grand Rapids, Mich.; Quaint Oak Bank, Southampton, Pa.; and State Bank of Arizona, Lake Havasu City, Ariz., the list shows. Ratings of “needs to improve” went to Providence Bank of Texas, ssb, Southlake, Texas; CBC Bank, Bowling Green, Mo.; and Farmers Bank of Lohman, Missouri (of Lohman, Mo.).
The 1997 CRA is an anti-redlining statute aimed at encouraging insured banks and thrifts to meet local credit needs, including those of low- and moderate-income neighborhoods, consistent with safe and sound operations.
The FDIC says 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.