Of the 58 banks whose Community Reinvestment Act (CRA) ratings were assigned by the Federal Deposit Insurance Corp. (FDIC) in September, all received ratings of “satisfactory” except for four: one rated for “substantial noncompliance” and three others rated “outstanding.”
The FDIC’s release shows that none of the banks on the September list was rated “needs to improve.”
The anti-redlining 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. Possible ratings are outstanding, satisfactory, needs to improve, and substantial noncompliance.
The three banks rated “outstanding” in September included Exchange Bank, Kearney, Neb.; Northwest Bank, Warren, Pa.; and Pacific Alliance Bank, Rosemead, Calif.
Bank of Hamilton, Hamilton, N.D., received the “substantial noncompliance” rating.