The Federal Deposit Insurance Corporation has announced supervisory steps to provide regulatory relief to FDIC-supervised financial institutions and support recovery in parts of Tennessee affected by severe storms, straight-line winds, tornadoes, and flooding. The relief applies to all FDIC-supervised institutions and is targeted to affected areas in Cheatham, Davidson, Dickson, Dyer, Hardeman, McNairy, Montgomery, Obion, and Wilson Counties, following a Federal Emergency Management Agency federal disaster declaration for selected areas. The FDIC encouraged lenders to work constructively with borrowers and indicated it will not criticize prudent loan term adjustments consistent with safe-and-sound banking practices, while noting institutions should evaluate loan modifications under relevant accounting guidance. The update also highlights potential Community Reinvestment Act consideration for eligible community development loans, investments, and services supporting disaster recovery, encourages monitoring of municipal securities and loans in affected areas, and indicates the FDIC will consider relief from certain reporting, filing, and publishing requirements, including for branch actions when compliance is disrupted. For institutions facing operational disruption, the FDIC said it will expedite requests to operate temporary banking facilities in affected areas, with initial notice generally possible by telephone.

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