Of the 40 banks that received examination ratings under the anti-redlining Community Reinvestment Act in May, four of them were rated “needs to improve,” according to information released Wednesday by the federal bank deposit insurer.
The remaining 36 banks were deemed “satisfactory,” the Federal Deposit Insurance Corp. (FDIC) data shows.
The agency notes it is required under the 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.
The four “needs to improve” institutions in this latest batch are First Bank of Ohio, Tiffin, Ohio; The Bank of Houston, Houston, Mo.; The Berkshire Bank, New York, N.Y.; and Ohio State Bank, Bexley, Ohio.
One of four ratings is possible from a CRA exam: “outstanding,” “satisfactory,” “needs to improve,” and “substantial noncompliance.” None of the banks on the May list was rated “outstanding” or “substantial noncompliance.”
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