Of 72 banks rated for Community Reinvestment Act (CRA) performance in January, four were rated “outstanding,” one was rated “needs to improve,” and the rest – 93% of those rated – were deemed “satisfactory,” according to a Federal Deposit Insurance Corp. (FDIC) release issued Friday.
The FDIC assigned CRA ratings in January to 72 banks distributed among six regions: seven in the Atlanta region; 11 in the Chicago region; 11 in the Dallas region; 21 in the Kansas City region; 14 in the New York City region; and eight in the San Francisco region.
Those rated “outstanding” were the Bank of Bluffs, Bluffs, Ill.; Spring Bank, Bronx, N.Y.; First Hawaiian Bank, Honolulu; and Freedom Bank, Columbia Falls, Mont.
Rated “needs to improve” was the Bank of Baroda in New York City.
The anti-redlining CRA is aimed at encouraging banks and thrifts to meet local credit needs, including those of low- and moderate-income neighborhoods. Possible CRA ratings from the FDIC include “outstanding,” “satisfactory,” “needs to improve,” and “substantial noncompliance.”