The Federal Deposit Insurance Corporation has issued disaster-relief supervisory guidance setting out steps to provide regulatory assistance and facilitate recovery for FDIC-supervised depository institutions affected by wildfires and straight-line winds in Los Angeles County, California, following a Federal Emergency Management Agency federal disaster declaration. The guidance applies to all FDIC-supervised financial institutions and signals supervisory flexibility to support community banking needs. Prudent efforts to work with affected borrowers, including extending repayment terms, restructuring existing loans, or easing terms for new lending consistent with safe-and-sound practices, should not be subject to examiner criticism, with loan modifications to be evaluated under applicable accounting standards (including ASC Subtopic 310-10 as amended by ASU 2022-02 and ASC Topic 326). Institutions may receive Community Reinvestment Act consideration for qualifying community development loans, investments, and services that support disaster recovery, and are encouraged to monitor municipal securities and loans exposed to disaster impacts. The FDIC will consider relief from certain reporting, filing, and publishing requirements, including potential delays in regulatory reports and compliance challenges tied to branch actions, and will expedite requests to operate temporary banking facilities, with initial telephone notice generally sufficient. The FEMA list of designated disaster areas may expand as damage assessments continue, and institutions are directed to monitor current designations and consult the FDIC’s disaster resources.
Federal Deposit Insurance Corporation 2025-01-13
Federal Deposit Insurance Corporation issues disaster relief supervisory guidance for FDIC-supervised institutions affected by Los Angeles County wildfires and straight-line winds
The FDIC issued disaster-relief guidance for institutions in Los Angeles County after wildfires and winds. It encourages borrower assistance, potential Community Reinvestment Act consideration, and supervisory flexibility, including relief from some reporting requirements. Institutions should monitor FEMA designations and consult FDIC disaster resources.