The Federal Deposit Insurance Corporation (FDIC) issued supervisory guidance setting out regulatory relief measures for FDIC-supervised financial institutions affected by severe storm and flooding in the Lake Traverse (Sisseton-Wahpeton Oyate) Indian Reservation in South Dakota. The package is designed to support continuity of operations and encourage banks to work constructively with borrowers and communities impacted by the disaster. The guidance notes the storm and flooding caused significant property damage from June 12, 2025, to June 16, 2025, and that the Federal Emergency Management Agency declared a federal disaster for selected areas on September 11, 2025. The FDIC states it will not criticize prudent efforts to adjust loan terms, including extensions and restructurings, when consistent with safe-and-sound banking practices, and it highlights that loan modifications should be evaluated under applicable accounting guidance, including Accounting Standards Codification Subtopic 310-10 as amended by Accounting Standards Update 2022-02. It also flags potential favorable Community Reinvestment Act consideration for qualifying community development loans, investments, and services supporting disaster recovery, and encourages monitoring of municipal securities and loans tied to affected areas. For operational relief, institutions should notify the FDIC’s Kansas City Regional Office if they expect delays in filing Reports of Income and Condition or other reports, and the FDIC will consider causes beyond the institution’s control when assessing acceptable delays. The FDIC will also consider relief from certain publishing and related requirements for branch actions, notes that Regulation Z permits waiver or modification of the three-day rescission period for principal dwelling-secured loans in a bona fide personal financial emergency, and says it will expedite requests to operate temporary banking facilities in affected areas. FEMA may make additional disaster designations after damage assessments are completed, and institutions experiencing disaster-related difficulties with reporting, publishing, or temporary facility needs are directed to contact the Kansas City Regional Office.
Federal Deposit Insurance Corporation 2025-09-23
Federal Deposit Insurance Corporation offers supervisory and regulatory relief for FDIC-supervised institutions supporting recovery in South Dakota’s Lake Traverse Reservation disaster area
The FDIC issued guidance for institutions affected by storms and flooding in the Lake Traverse Indian Reservation, South Dakota. It supports operational continuity, borrower engagement, and loan adjustments. Institutions should notify the FDIC’s Kansas City Regional Office of reporting delays, and the FDIC will expedite requests for temporary banking facilities.