Two banks rated ‘needs to improve’ in latest FDIC ratings under CRA, but four are ‘outstanding’

Of the 91 banks assigned Community Reinvestment Act (CRA) evaluation ratings by their federal regulator in April, two were rated “needs to improve” while four were rated “outstanding,” according to information released Wednesday by the Federal Deposit Insurance Corp. (FDIC).

Those rated “needs to improve,” the list shows, were First Kansas Bank, Hoisington, Kan., and First Commercial Bank (USA), Alhambra, Calif.

Those earning the top rating of “outstanding” were West Alabama Bank & Trust, Reform, Ala.; Security Federal Bank, Aiken, S.C.; Fowler State Bank, Fowler, Colo.; and First Commerce Bank, Lakewood, N.J.

The remaining 85 institutions were all deemed “satisfactory” under the anti-redlining law, according to the agency’s April CRA list.

The CRA is a 1977 law intended 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. Federal CRA evaluations can result in one of four possible ratings: outstanding, satisfactory, needs to improve, or substantial noncompliance.

FDIC Issues List of Banks Examined for CRA Compliance

July 2019 List of Banks Examined for CRA Compliance

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