Agencies Publish Interagency Statement for Financial Institutions Affected by Hurricanes Fiona and Ian

The Federal Reserve Board, FDIC, NCUA, OCC, and state financial regulators (collectively, the Agencies) recently issued an interagency statement on supervisory practices regarding financial institutions that were impacted by Hurricanes Fiona and Ian.  The statement addresses best practices and provides guidance to institutions operating in affected areas, including guidance on lending, temporary facilities, publishing requirements, regulatory reporting requirements, Community Reinvestment Act (CRA) considerations, and investments.

The statement provides that the Agencies encourage financial institutions operating in the affected areas to meet the financial service needs of their communities.  For example, the Agencies stated that they support financial institutions efforts to consider adjusting or altering terms on existing loans in affected areas.  The Agencies also noted that in supervising institutions affected by Hurricanes Fiona and Ian, the Agencies will consider the unusual circumstances these institutions face.  

Additionally, in situations where operational challenges persist, the Agencies stated that the primary federal and/or state regulator will expedite an institution’s request to operate temporary facilities in order to provide services at more convenient locations to those in the affected areas and, in most cases, a telephone notice from a financial institution to the primary regulator is sufficient to begin the approval process.  Moreover, among other things, the Agencies noted that financial institutions may receive CRA consideration for loans, investments, and services that revitalize or stabilize federally designated disaster areas in their assessment areas.