The Federal Deposit Insurance Corporation, the Federal Reserve Board, the Florida Office of Financial Regulation, the National Credit Union Administration, and the Office of the Comptroller of the Currency have issued a joint statement addressing the impact of Hurricane Milton on financial institutions. These agencies aim to provide regulatory assistance to affected institutions under their supervision.
Institutions in disaster-stricken areas are encouraged to meet community financial needs. A complete list of current disaster areas is available at https://www.fema.gov/disaster/declarations.
The agencies support financial institutions working with borrowers in hurricane-affected communities. They encourage prudent adjustments or alterations to existing loan terms without fear of examiner criticism. Institutions should evaluate loan modifications individually according to U.S. generally accepted accounting principles and consider each borrower's circumstances.
For institutions facing operational challenges post-hurricane, regulators will expedite requests for temporary facilities. Initially, a telephone notice can start this process before submitting written notification.
Hurricane-related damage may affect compliance with publishing requirements for branch operations. Institutions experiencing such difficulties should contact their primary regulator.
Financial institutions unable to meet reporting requirements due to hurricane impacts should also reach out to their regulator. The agencies do not plan penalties for those taking reasonable steps but failing due to these extraordinary circumstances.
Staff from these agencies are prepared to assist affected institutions with reporting responsibilities, considering each institution's specific situation and system status.
Financial institutions might receive Community Reinvestment Act consideration for activities that stabilize federally designated disaster areas within their assessment regions. More information is available at https://www.ffiec.gov/cra/qnadoc.htm.
Monitoring municipal securities and loans impacted by Hurricane Milton is advised as local government projects may suffer adverse effects from the disaster. Institutions are encouraged to engage in stabilization efforts where appropriate.
Further guidance can be found through various agency resources:
- FDIC: https://www.fdic.gov/news/disaster
- FRB: https://www.federalreserve.gov/supervisionreg/srletters/sr1714a1.pdf
- OCC: https://www.occ.gov/news-issuances/bulletins/2017/bulletin-2017-61.html
- State Financial Regulators: https://www.csbs.org/interagency-supervisory-examiner-guidance-institutions-affected-major-disaster