Five of the 52 banks receiving their Community Reinvestment Act (CRA) ratings this September were found to be “outstanding” for their compliance with the anti-redlining statute, according to results released Friday by the Federal Deposit Insurance Corp. (FDIC).
One of the banks was rated “needs to improve,” while the remaining 46 were rated “satisfactory.”
The five “outstanding” ratings went to Bank of Edmonson County, Brownsville, Ky.; Bankers Trust Company, Des Moines, Iowa; Bangor Savings Bank, Bangor, Maine; 1st Bank Yuma, Yuma, Ariz.; and State Bank of India (California), Los Angeles, Calif.
American Community Bank of Indiana, Saint John, Ind., receive the rating of “needs to improve.”
The CRA, enacted in 1977, is aimed at encouraging 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 agency noted.
A bank evaluated under the CRA may receive any of four ratings: outstanding, satisfactory, needs to improve, or substantial noncompliance. None of the banks on September’s list was rated “substantial noncompliance.”