4 banks rated ‘outstanding’, 2 get ‘needs to improve’ in latest CRA ratings by agency

Two banks received “needs to improve” and four received “outstanding” ratings for their compliance with the anti-redlining Community Reinvestment Act (CRA) from the federal bank deposit insurer in August, the agency said Thursday.

The remaining 60 of the banks receiving their ratings in August were deemed “satisfactory” under the CRA, the Federal Deposit Insurance Corp. (FDIC) said.

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. A bank can receive one of four ratings under CRA, including the above three or “substantial noncompliance.” None of the August ratings included that rating, the poorest of the four possible.

In August, the two banks rated “needs to improve” were The Berkshire Bank, New York; and Hill Bank & Trust Co., Weimar, Texas.

Those rated “outstanding” were Industrial Bank, Washington, D.C.; Machias Savings Bank, Machias, Maine; Adams Community Bank, Adams, Mass.; and Bank of Kampsville, Kampsville, Ill.

FDIC Issues List of Banks Examined for CRA Compliance