Of the 55 banks receiving their Community Reinvestment Act (CRA) evaluations ratings in July, 48 were rated “satisfactory,” according to the federal bank deposit insurer. The remaining seven were assigned “outstanding,” “needs to improve,” or “substantial noncompliance.”
The Federal Deposit Insurance Corp. (FDIC) the anti-redlining CRA is a 1977 law that requires the agency 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 three banks rated “outstanding” in this round were The Dime Bank, Honesdale, Pa.; Beardstown Savings s.b., Beardstown, Ill.; and Toyota Financial Savings Bank, Henderson, Nev.
Those rated “needs to improve” were Hyden Citizens Bank, Hyden, Ky.; Horizon Bank, Waverly, Neb.; and Presence Bank, Coatesville, Pa.
Pearland State Bank, Pearland, Texas, received the rating of “substantial noncompliance.”
“Outstanding,” “satisfactory,” “needs to improve,” and “substantial noncompliance” are the four ratings possible.