FDIC says 5 banks rated ‘outstanding’ under CRA, 3 deemed ‘needs to improve’

Five ratings of “outstanding” and three of “needs to improve” were issued to banks under the anti-redlining statute in June by the Federal Deposit Insurance Corp. (FDIC), according to information released Tuesday.

The September list also included a total of 44 banks that received the rating of “satisfactory” under the statute, the Community Reinvestment Act (CRA), the agency reported, while none received a rating of “substantial noncompliance.”

The FDIC noted that 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.

In September, the FDIC reported, banks rated “outstanding” were TowneBank, Portsmouth, Va.; Farmers State Bank, Booneville, Ky.; Spiro State Bank, Spiro, Okla.; American Riviera Bank, Santa Barbara, Calif.; and Optum Bank, Inc., Draper, Utah.

It said institutions rated “needs to improve” were Peoples Bank of Kentucky, Inc., Flemingsburg, Ky.; State Bank of Brooks, Corning, Iowa; and WEX Bank, Sandy, Utah.

FDIC Issues List of Banks Examined for CRA Compliance