Nearly half of banks evaluated in January/February earned ‘outstanding’ CRA rating from OCC

“Outstanding” was the rating seven of 18 banks received for their anti-redlining performance evaluations that were made public in May, the national bank regulator said Friday; the other 11 banks received “satisfactory” evaluation ratings.

The Office of the Comptroller of the Currency (OCC) indicated in a release that none of the May evaluations reflected a “needs to improve” or “substantial noncompliance” rating. The ratings are issued based on a bank’s examination for compliance with the Community Reinvestment Act (CRA), which is aimed at gauging how a bank reinvests in the communities from which it takes deposits, among other things.

The seven banks receiving “outstanding” ratings (the highest rating the agency confers) were:

  • Queensborough National Bank & Trust Company, Louisville, Ga.
  • Presidential Bank, FSB, Bethesda, Md.
  • Riverwood Bank, Baxter, Minn.
  • The Vinton County National Bank, McArthur, Ohio
  • First National Bank of Oklahoma, Oklahoma City, Okla.
  • Texas National Bank, Mercedes, Texas
  • Hilltop National Bank, Casper, Wyo.

All seven of the banks earned their ratings based on evaluations conducted in January and February. Additionally, all 18 banks were evaluated using new CRA compliance regulations, which went into effect Oct. 1, 2020. Those regulations, according to the OCC, were adopted to clarify and expand the activities that qualify for CRA credit, update where activities count for CRA credit, create a more “consistent and objective method” for evaluating CRA performance, and provide for “more timely and transparent CRA-related data collection, recordkeeping, and reporting.”

The OCC said last month, however, that it plans to reconsider last year’s changes to the CRA rule, adding that it “will not object” to banks suspending their work toward meeting the compliance requirements that kick in beginning January 2023.

OCC Releases CRA Evaluations for 18 National Banks and Federal Savings Associations