The Federal Deposit Insurance Corporation has issued disaster-related supervisory guidance setting out regulatory relief measures for FDIC-supervised financial institutions affected by severe storms, straight-line winds, and flooding in Texas, with the identified affected area being Kerr County. The package is intended to support operational continuity and recovery, including flexibility on certain reporting and publishing requirements and an expectation that banks work constructively with impacted borrowers. The guidance notes that the event has caused significant property damage since July 2, 2025 and that the Federal Emergency Management Agency declared a federal disaster for selected areas in Texas on July 6, 2025. Banks are encouraged to extend repayment terms, restructure loans, or ease terms for new credit consistent with safe-and-sound banking practices, and the FDIC states it will not criticize prudent efforts to adjust existing loan terms; institutions should evaluate loan modifications under applicable accounting standards, including ASC Subtopic 310-10 as amended by ASU 2022-02 and ASC Topic 326. The release also highlights potential Community Reinvestment Act consideration for qualifying community development loans, investments, and services supporting disaster recovery, encourages monitoring of municipal securities and loans in affected areas, and sets expectations for notifying the Dallas Regional Office where delays in Reports of Income and Condition or compliance with publishing requirements are anticipated. For damaged offices or service disruptions, the Dallas Regional Office will expedite requests to operate temporary banking facilities, and for principal dwelling-secured loans, Regulation Z flexibility may allow consumers to waive or modify the three-day rescission period in a bona fide personal financial emergency. The FDIC notes that FEMA may make additional disaster designations following further damage assessments.

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