FDIC, OCC bank ratings under anti-redlining law include 8 ‘outstanding,’ 2 ‘needs improvement’

Of the 85 banks listed in the most recent releases of Community Reinvestment Act (CRA) evaluation ratings, eight were deemed “outstanding” and two were rated “needs improvement,” according to federal banking regulators.

Monday, the Federal Deposit Insurance Corp. (FDIC) released a list of 65 banks whose anti-redlining law evaluation ratings became public in February. That list included 59 banks that were rated “satisfactory,” four rated “outstanding,” and two rated “needs improvement.”

The Office of the Comptroller of the Currency (OCC) on Friday announced the ratings for 20 banks it has recently evaluated and awarded ratings in February. These included 16 banks rated “satisfactory” and two rated “outstanding.”

The CRA, enacted in 1977, is aimed at encouraging federally insured banks and thrifts to meet local credit needs, including those of low- and moderate-income neighborhoods, consistent with safe and sound operations. Any of four ratings is possible: outstanding, satisfactory, needs improvement, and substantial noncompliance. No rating of substantial noncompliance is included in either regulator’s most recent list of evaluation ratings.

Banks rated “outstanding” by the FDIC included FNB SOUTH, Alma, Ga.; Towne Bank, Suffolk, Va.; First Federal Savings and Loan Bank, Olathe, Kan. (FDIC); and Bank Leumi USA, New York. Banks rated “outstanding” by the OCC were First National Bank of Okawville, Okawville, Ill.; Western National Bank, Cass Lake, Minn.; Liberty National Bank, Ada, Ohio; and Ladysmith FS & LA, Ladysmith, Wis.

Rated “needs improvement” by the FDIC were American Equity Bank, Dodge Center, Minn.; and Valley Republic Bank, Bakersfield, Calif.

FDIC February 2020 List of Banks Examined for CRA Compliance

OCC CRA Performance Evaluations: February 2020