FDIC CRA evals rate 3 banks ‘outstanding,’ 3 ‘needs to improve’

Sixty-two banks were assigned ratings of “satisfactory” in December for their efforts under the Community Reinvestment Act (CRA), with another three rated “outstanding” and three more rated “needs to improve,” according to information released Thursday by the Federal Deposit Insurance Corp. (FDIC).

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.”

Those rated “outstanding” in December included Decorah Bank & Trust Company, Decorah, Iowa; Lusitania Savings Bank, Newark, N.J.; and Community Commerce Bank, Claremont, Calif. Those rated “needs to improve” were Northpointe Bank, Grand Rapids, Mich., Rowley Savings Bank, Rowley, Iowa, and Bank of the Sierra, Porterville, Calif.

None of the banks assigned ratings in December were assigned the rating of “substantial noncompliance,” the FDIC report shows.

In its February list, the FDIC reported having rated three banks “outstanding” and one bank as “needs to improve”; these ratings were assigned in November. The January list, showing ratings assigned in October, showed eight banks rated “outstanding.” All the rest on these lists were deemed “satisfactory.”

March 2021 List of Banks Examined for CRA Compliance
Monthly List of Banks Examined for CRA Compliance

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