The Federal Deposit Insurance Corporation, the Federal Reserve Board, the National Credit Union Administration, the Office of the Comptroller of the Currency, and state financial regulators, collectively referred to as the agencies, acknowledge the significant impact of Hurricane Idalia on both customers and operations of numerous financial institutions. These agencies will offer appropriate regulatory assistance to affected institutions that fall under their supervision. Moreover, the agencies strongly encourage institutions operating in the affected areas to address the financial needs of their respective communities.
To find a comprehensive list of the disaster areas affected, please visit the following link: https://www.fema.gov/disasters.
Lending: The agencies urge financial institutions to collaborate with borrowers in the communities impacted by Hurricane Idalia. They support responsible efforts to adjust or modify terms on existing loans in these affected areas, and such actions should not face criticism from examiners. In line with generally accepted accounting principles in the United States, institutions should assess on an individual basis whether modifications to existing loans constitute troubled debt restructurings or alterations for borrowers facing financial challenges. The evaluation should take into account the specific circumstances of each borrower and modification. When supervising institutions affected by Hurricane Idalia, the agencies will consider the unique circumstances faced by these institutions. The agencies understand that working with borrowers in stressed communities can align with sound practices and serve the public interest.
Temporary Facilities: The agencies recognize that many financial institutions encounter difficulties in reopening their facilities due to staffing, power, telecommunications, and other challenges following Hurricane Idalia. If operational obstacles persist, the primary federal and/or state regulator will expedite any request to operate temporary facilities in order to provide more accessible services to those affected by the hurricane. In most cases, an initial telephone notification to the primary federal and/or state regulator will suffice to initiate the approval process, followed shortly thereafter by the necessary written notification.
Publishing Requirements: The agencies understand that the damage caused by Hurricane Idalia may impact compliance with various laws and regulations concerning publishing and other requirements for branch closings, relocations, and temporary facilities. Institutions facing challenges related to disaster recovery and unable to comply with publishing or other requirements should contact their primary federal and/or state regulator.
Regulatory Reporting Requirements: Institutions affected by Hurricane Idalia that anticipate difficulties in meeting the agencies’ reporting requirements should reach out to their primary federal and/or state regulator to discuss their situation. The agencies do not expect to impose penalties or take other supervisory actions against institutions that reasonably and prudently attempt to fulfill the agencies’ regulatory reporting requirements but fall short due to Hurricane Idalia.
The staffs of the agencies are willing to assist affected institutions that may encounter difficulties in meeting their reporting obligations. This assistance takes into account the specific circumstances of each institution, including the condition of their reporting and recordkeeping systems, as well as the state of their underlying financial records.
Community Reinvestment Act (CRA): Financial institutions may be eligible for CRA consideration for community development loans, investments, or services that help revitalize or stabilize federally designated disaster areas within their assessment areas or in states or regions encompassing their assessment areas. For additional information, please refer to the Interagency Questions and Answers Regarding Community Reinvestment at https://www.ffiec.gov/cra/qnadoc.htm.
Investments: Financial institutions are encouraged to monitor municipal securities and loans affected by Hurricane Idalia. The agencies recognize that local government projects may suffer negative consequences due to the disaster, and institutions are advised to engage in appropriate monitoring and undertake responsible efforts to stabilize such investments.
For more information, please consult the Interagency Supervisory Examiner Guidance for Institutions Affected by a Major Disaster, available at the following sources:
– Federal Reserve Board: Meg Nelson (202-452-2955)
– FDIC: LaJuan Williams-Young (202-898-3876)
– OCC: Stephanie Collins (202-649-6870)
– CSBS: Laura Fisher (202-812-9813)
– NCUA: Joseph Adamoli (703-518-6330)
Read the original Federal Reserve release here.