CT bank receives ‘needs to improve’ CRA rating as FDIC wraps up evaluation releases for 2019

93% of evaluations released in 2019 were 'satisfactory'

A “needs to improve” rating was given to one bank out of 40 whose anti-redlining exam results were released by the federal insurer of banks Friday; the remaining 39 banks received “satisfactory” ratings.

The Federal Deposit Insurance Corp. (FDIC), in its December release of exam results for compliance with the Community Reinvestment Act (CRA), noted that the 40 banks were assigned their evaluation ratings in October.

The results also show that no banks received either a rating of “outstanding” or “substantial non-compliance” with CRA compliance.

The only bank receiving the “needs to improve” rating was Laurel Road Bank of Darien, Conn. (operating as DR Bank). The FDIC cited the bank’s “poor performance” under the CRA Lending Test, noting that the bank made a majority of its home mortgage and small business loans outside of the assessment area and that the distribution of borrowers “reflects poor penetration of loans among individuals of different income levels and businesses of different sizes.”

In all of 2019, the FDIC released 500 results of CRA examinations, according to public data on the agency’s website. Of those banks evaluated, eight received “needs to improve” ratings and 467 received “satisfactory” evaluations, the latter constituting  93% of all evaluations released last year.

No banks received “substantial non-compliance” ratings, the lowest CRA evaluation. However, 25 banks received “outstanding” evaluation ratings, the highest CRA evaluation rating available. Those banks included:

  • Carrollton Bank, Carrollton, Ill.
  • Community First Bank, Kennewick, Wash.
  • Flushing Bank, Uniondale, N.Y.
  • Alton Bank, Alton, Mo.
  • Bank of Bluffs, Bluffs, Ill.
  • First Hawaiian Bank, Honolulu, Hawaii
  • Freedom Bank, Columbia Falls, Mont.
  • Bangor Savings Bank, Bangor, Maine
  • Continental Bank, Salt Lake City, Utah
  • EnerBank USA, Salt Lake City, Utah
  • Banco Santander Puerto Rico, San Juan, P.R.
  • CIBC Bank USA, Chicago, Ill.
  • First Covenant Bank, Commerce, Ga.
  • First State Bank, Waynesboro, Miss.
  • First Commerce Bank, Lakewood, N.J.
  • Fowler State Bank, Fowler, Colo.
  • Central Bank & Trust Company, Lexington, Ky.
  • Citizens Bank, Byhalia, Miss.
  • Community State Bank, Lamar, Colo.
  • Bedford Loan & Deposit Bank, Bedford, Ky.
  • Beneficial State Bank, Oakland, Calif.
  • Citizens Bank, Butler, Mo.
  • BankIowa of Cedar Rapids, Cedar Rapids, Iowa
  • Farmers & Merchants Bank of Central California, Lodi, Calif.
  • The Gary State Bank, Gary, Minn.

FDIC Issues List of Banks Examined for CRA Compliance