The Federal Deposit Insurance Corporation (FDIC) issued a Financial Institution Letter setting out supervisory relief for FDIC-supervised financial institutions affected by the 14 to 15 June 2025 severe storms, straight-line winds, flooding, landslides, and mudslides in Marion and Ohio Counties, West Virginia, following the Federal Emergency Management Agency’s federal disaster declaration. The package is aimed at supporting continued lending and customer assistance while giving institutions practical flexibility on certain regulatory and operational requirements during recovery. The FDIC stated it will not criticize prudent efforts to extend repayment terms, restructure existing loans, or ease terms for new loans when consistent with safe-and-sound banking practices, and noted that loan modifications should be evaluated under applicable accounting standards including ASC Subtopic 310-10 as amended by ASU 2022-02 and ASC Topic 326. Institutions may also receive Community Reinvestment Act consideration for qualifying community development loans, investments, and services that revitalize or stabilize federally designated disaster areas. On compliance and operations, affected institutions are asked to notify the Atlanta Regional Office if disaster-related issues may delay Reports of Income and Condition or other filings, and the FDIC will consider causes beyond an institution’s control when assessing acceptable delays; similar outreach is encouraged where institutions face difficulties meeting publishing and other requirements for branch-related actions, and requests to operate temporary banking facilities will be expedited. The release noted that FEMA may make additional disaster-area designations after damage assessments are completed.

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