Of the 45 ratings it gave to banks under the federal anti-redlining law in September, three of those were ratings of “outstanding” and two were “needs to improve,” the Federal Deposit Insurance Corp. (FDIC) shows in a report released Monday.
The remaining 40 banks were rated “satisfactory” under the Community Reinvestment Act, the FDIC report shows. That left “substantial noncompliance” the only CRA rating not assigned to any bank in this round.
The three banks rated “outstanding” were United Citizens Bank of Southern Kentucky, Columbia, Ky.; Exchange Bank, Kearney, Neb.; and First Bank, Ketchikan, Alaska. Rated “needs to improve” were The Farmers & Merchants Bank, Waterloo, Ala., and United Bank of Philadelphia, Philadelphia, Pa.
The agency said the CRA, enacted in 1977, 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.