Four banks earn ‘outstanding’ rating (out of 73 evaluated) for June CRA compliance assessment

Four banks earned ratings of “outstanding” – and one a rating of “needs improvement” – in June for their compliance with anti-redlining laws, the federal insurer of bank deposits said Thursday.

In its report of 73 state nonmember banks recently evaluated for compliance with the Community Reinvestment Act (CRA), the Federal Deposit Insurance Corp. (FDIC) noted that the banks receiving ratings of “outstanding” were Live Oak Banking Co. (of Wilmington, N.C.), Community State Bank (Lamar, Colo.), Citizens Bank (Byhalia, Miss.), and Mechanics Bank (Richmond, Calif.). A rating of “outstanding” means the bank has “an outstanding record of helping to meet the credit needs of its assessment area, including low- and moderate-income neighborhoods, in a manner consistent with its resources and capabilities,” according to FDIC regulations.

The lone bank receiving a “needs to improve” rating was State Bank of Brooks in Corning, Iowa. The rating means the bank must “improve its overall record of helping to meet the credit needs of its assessment area, including low- and moderate-income neighborhoods,” according to agency rules.

The remaining 58 banks received ratings of “satisfactory” on their CRA evaluations; no bank received a rating of “substantial non-compliance,” reserved for those institutions that have a “substantially deficient record” of meeting the credit needs of its assessment area and community.

FDIC Issues List of Banks Examined for CRA Compliance

Be the first to comment

Leave a Reply

Your email address will not be published.