Three banks earn ‘outstanding’ scores for CRA compliance; one of remaining 60 ‘needs improvement’

Ratings of “outstanding” for their compliance with community reinvestment requirements were earned by three banks – and one bank earned a “needs improvement” – in evaluations assigned to institutions by the federal insurer of bank deposits in December and released Tuesday.

The ratings are for the banks’ compliance with requirements of the anti-redlining Community Reinvestment Act (CRA).

The Federal Deposit Insurance Corp. (FDIC), in a release, said the banks earning the “outstanding” ratings were: Mechanics & Farmers Bank of Durham, N.C.; Waukesha State Bank of Waukesha, Wis.; and Alton Bank of Alton, Mo.

A rating of “outstanding” is the highest rating a bank may earn in the evaluations. There are four possible ratings: outstanding, satisfactory, needs to improve and substantial noncompliance.

Only one bank earned a rating of “needs to improve:” Northmark Bank of North Andover, Mass. No bank earned a rating of “substantial noncompliance.”

The evaluations released for the remaining 59 banks all had “satisfactory” CRA compliance ratings.

The ratings released Tuesday were for state non-member banks.

FDIC Issues List of Banks Examined for CRA Compliance