Three out of the 56 banks receiving their Community Reinvestment Act (CRA) evaluation ratings in February from the federal deposit insurance agency were deemed “outstanding,” while one was flagged “needs to improve,” according to information released Tuesday.
Rated outstanding in February under the anti-redlining statute were Bank of the West, San Francisco; Medallion Bank, Salt Lake City; and WebBank, Salt Lake City. The agency rated Farmers and Merchant Bank, Axtell, Neb., as needs to improve.
The Federal Deposit Insurance Corp. (FDIC) report shows that the remaining 52 institutions rated in February were deemed to be “satisfactory.”
The 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. One of four ratings may be assigned in a CRA evaluation: outstanding, satisfactory, needs to improve, and substantial noncompliance.
The FDIC said it makes a consolidated list of all state nonmember banks receiving their CRA evaluations since July 1, 1990, with ratings for each bank, available in hard copy; the information is also searchable online. Each bank rated for CRA is also required to make its evaluation available upon request, it noted.