A total of 335 insured banks and thrifts are included on the anti-redlining Community Reinvestment Act (CRA) evaluation schedules of the federal bank deposit insurer from July 1 through Dec. 31, the agency said in lists released Tuesday.
The Federal Deposit Insurance Corp. (FDIC) is set to review 174 banks in the third quarter of 2022 and 161 in the fourth quarter. The greatest numbers of banks slated for third-quarter CRA reviews are in Georgia (10), Illinois (12), Missouri (10), and Texas (9). The fourth quarter, the largest numbers on the schedule are in Illinois (14), Kansas (12), Missouri (9) and Texas (9).
CRA examinations, the agency noted, are scheduled based on an institution’s asset size and CRA rating. Unless there is reasonable cause, an institution with $250 million or less in assets and a CRA rating of “satisfactory” can be subject to a CRA examination no more frequently than once every 48 months. Absent reasonable cause, an institution with $250 million or less in assets and a CRA rating of “outstanding” can be subject to a CRA examination no more frequently than once every 60 months. Any of four ratings is possible in a CRA exam: outstanding, satisfactory, needs to improve, and substantial noncompliance.
CRA examinations are currently conducted under rules generally unchanged since 1995 with the Jan. 1, 2022, rescission of a rule update issued solely by the Office the Comptroller of the Currency (OCC) in 2021. All three federal banking regulators – the FDIC, OCC and Federal Reserve – on May 5 jointly issued a new proposed rule to update and modernize current CRA rules. That proposal is out for public comment until Aug. 5.
Reg lookup: Community Reinvestment Act