FDIC ratings under CRA show 3 banks ‘outstanding’ and 2 ‘needs to improve’

Of the 64 banks assigned ratings under the federal anti-redlining statute this February, three were rated “outstanding” and 2 were rated “needs to improve,” the federal bank deposit insurer said Monday.

The remaining 57 banks were deemed “satisfactory” under the Community Reinvestment Act (CRA) rules, according to the Federal Deposit Insurance Corp. (FDIC). None was given the lowest rating, “substantial noncompliance.”

The agency notes that the 1977 CRA requires the FDIC (and the Office of the Comptroller of the Currency, or OCC) to assess a bank’s record of meeting the credit needs of its entire community, including those of low- and moderate-income neighborhoods, consistent with safe and sound operations.

Rated “outstanding” by the FDIC in February were Greenfield Savings Bank, Greenfield, Mass.; Prism Bank, Guthrie, Okla.; and Fidelity Co-operative Bank, Leominster, Mass.

The two rated “needs to improve” were Mega Bank, San Gabriel, Calif.; Bank Irvine, Irvine, Calif.

FDIC Issues List of Banks Examined for CRA Compliance