Of the 82 banks it rated for Community Reinvestment Act (CRA) compliance in August, seven were rated “outstanding” and one was rated “needs improvement,” the federal bank deposit insurance agency said in its November release of CRA ratings Monday.
Not one of the banks included on the list was cited for “substantial noncompliance,” the Federal Deposit Insurance Corp. (FDIC) list shows, leaving 74 – about 90% – found to be “satisfactory.” (Ratings possible are “outstanding,” “satisfactory,” “needs improvement,” and “substantial noncompliance.”)
The CRA was enacted in 1977 to put an end to redlining. Its aim is to encourage federally insured banks and thrifts to meet local credit needs, including those of low- and moderate-income neighborhoods, consistent with safe and sound operations.
The one bank rated “needs improvement” on FDIC’s November list is the Bank of India in New York City. The seven “outstanding” CRA ratings went to:
- Pan American Bank & Trust, Melrose Park, Ill.
- Stock Yards Bank & Trust Company, Louisville, Ky.
- State Bank & Trust Company, Ridgeland, Miss.
- Citizens Tri-County Bank, Dunlap, Tenn.
- Greenfield Savings Bank, Greenfield, Mass.
- Seamen’s Bank, Provincetown, Mass.
- Bank of Guam, Hagatna, Guam
Of the 82 banks on FDIC’s November list of CRA ratings, 11 are in the Atlanta region; 12 are in the Chicago region; 21 are in the Dallas region; 20 are in the Kansas City region; 11 are in the New York City region; and seven are in the San Francisco region.