A list of 88 banks examined for Community Reinvestment Act (CRA) compliance and released by the federal bank deposit insurer Wednesday shows 78 banks receiving the rating of “satisfactory” in March, while three were deemed “needs to improve” and seven were found to be “outstanding.”
The list from the Federal Deposit Insurance Corp. (FDIC) shows none of the banks on the March list received the lowest rating possible, “substantial noncompliance.”
The seven institutions rated “outstanding” in March were First Covenant Bank, Roswell, Ga.; CIBC Bank USA, Chicago; United Cumberland Bank, Whitley City, Ky.; First State Bank, Waynesboro, Miss.; International Bank of Commerce, Oklahoma City, Okla.; Machias Savings Bank, Machias, Maine; and Banco Santander Puerto Rico, San Juan, P.R.
Rated “needs to improve” were Prudential Bank, Philadelphia; LINKBANK, West Chester, Pa.; and United Pacific Bank, City of Industry, Calif.
The CRA was enacted in 1977 to encourage insured banks and thrifts to meet local credit needs, including those of low- and moderate-income neighborhoods, consistent with safe and sound operations. Banks and savings institutions evaluated under the CRA may receive any of four ratings: “outstanding,” “satisfactory,” “needs to improve,” or “substantial noncompliance.”