Evaluating ratings under the anti-redlining Community Reinvestment Act (CRA) that were assigned in March by the federal bank deposit insurer included four “outstanding” ratings and one “needs to improve.”
The remaining 40 banks receiving ratings were deemed “satisfactory,” the information shows.
The Federal Deposit Insurance Corp. (FDIC), in information released June 5, said the “outstanding” ratings went to Security State Bank, Cheyenne, Okla.; Farmers & Merchants Bank of Central California, Lodi, Calif.; Bank of the Sierra, Porterville, Calif.; and Optum Bank, Inc., Draper, Utah.
The one “needs to improve” rating went to The Walton State Bank, Walton, Kan.
The FDIC notes that it’s required under the 1997 CRA 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.
Any of four ratings is possible from a CRA exam: “outstanding,” “satisfactory,” “needs to improve,” and “substantial noncompliance.” None of the banks on the March list was rated “substantial noncompliance.”