6 banks rated ‘outstanding’ under CRA, 2 ‘needs to improve,’ FDIC reports

Of the 44 banks that received their federal anti-redlining compliance ratings in November, six of them were rated “outstanding” and two were deemed “needs to improve,” according to data released Friday by the Federal Deposit Insurance Corp. (FDIC).

The FDIC, releasing the November evaluation ratings under the Community Reinvestent Act (CRA), showed the remaining 36 institutions were found to be “satisfactory.” None of the institutions on the November list was deemed to be in “substantial noncompliance.”

The FDIC noted that the 1977 CRA is 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.

The banks given “outstanding” CRA ratings in November were:

  • Community Savings Bank, Chicago, Ill
  • Alamosa State Bank, Alamosa, Colo.
  • Crest Savings Bank, Wildwood, N.J.
  • Newtown Savings Bank, Newtown, Conn.
  • Magyar Bank, New Brunswick, N.J.
  • Farmers & Merchants Bank of Central California, Lodi, Calif.

Those receiving ratings of “needs to improve” were The Bank of New Glarus, New Glarus, Wis.; and Transportation Alliance Bank, Inc. d/b/a TAB Bank, Ogden, Utah.

FDIC Issues List of Banks Examined for CRA Compliance