9 banks, including Wells Fargo, earn OCC ‘outstanding’ CRA performance evaluations in June

Nine banks earned ratings of “outstanding” for June in their performance evaluations for adhering to anti-redlining requirements, the regulator of national banks said Friday.

One of those banks is among the largest in the country: Wells Fargo Bank, N.A., of Sioux Falls, S.D.

Of the 21 evaluations made public, the Office of the Comptroller of the Currency (OCC) said, in addition to the nine banks receiving the “outstanding” ratings, 11 earned satisfactory rating and one earned a “needs to improve” rating. The OCC did not report any banks receiving a “substantial noncompliance” score.

The banks receiving the “outstanding” evaluations were:

  • Legacy National Bank, Springdale, Ark.
  • United Bank & Trust, N.A., Marshalltown, Iowa
  • Chester National Bank, Chester, Ill.
  • The Fairfield National Bank, Fairfield, Ill.
  • Home Federal Savings Bank, Rochester, Minn.
  • First S & LA, Mebane, N.C.
  • First S & LA, Newark, Ohio
  • Metabank, Sioux Falls, S.D.
  • Wells Fargo Bank, N.A., Sioux Falls, S.D.

The lone bank receiving a “needs to improve” rating was Cfsbank of Charleroi, Pa.

The OCC, on its own, made final in May new rules enforcing the CRA, a 1970s-era law meant to stop redlining in lending by banks. The new rules, according to the OCC, are designed to create more descriptive and expansive criteria for the types of activities that qualify for CRA credit. Among other things, rules are designed to provide “defined criteria” that identify the types of activities that meet the credit needs of banks’ communities and, thus, can be considered qualifying activities.

OCC has said the criteria both encompass the many activities that currently qualify for CRA consideration and include additional activities that meet the credit needs of banks’ communities, such as expanding credit to areas considered distressed or underserved.

The agency has also said said that the reformed rules require regulators to publish periodically a list of non-exhaustive, illustrative examples of qualifying activities; and establish a process for stakeholders to seek agency determination if an activity is a qualifying activity.

OCC Releases CRA Evaluations for 21 National Banks and Federal Savings Associations