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First Bank of Ohio given 'needs to improve' CRA rating

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First Bank of Ohio given 'needs to improve' CRA rating

The Federal Deposit Insurance Corp. gave a "needs to improve" rating to First Bank of Ohio in its Community Reinvestment Act evaluation, saying it originated a "significant percentage" of loans outside of its two assessment areas.

The Tiffin, Ohio-based community bank received either a "needs to improve" or a "substantial noncompliance" rating in its last five CRA evaluations, the regulator noted. The FDIC said those ratings were also due to the bank originating many of its loans outside of the assessment areas.

First Bank of Ohio originated 80.4% of vehicle loans outside its assessment areas in 2018, an increase from 79.7% in 2017, according to data published by the regulator. The FDIC also said there were steady decreases in the proportion of vehicle loans originated inside the assessment areas from 2014 to 2016

Despite this, the regulator praised the bank for having "excellent penetration" of its lending across different income levels. The loans within the bank's assessment areas were reasonably dispersed geographically, the FDIC said. The FDIC also said First Bank of Ohio's loan-to-deposit ratio was reasonable given its size, financial condition and the credit needs of people living in the assessment areas.

CRA examiners also did not identify any discriminatory or illegal credit practice in the bank, nor any financial or legal impediment which may have affected its ability to meet its communities' credit needs.