FDIC notes reg relief for banks serving areas of NE, OH affected by storms, tornadoes

May 10, 2024 FDIC 0

Banks serving Nebraska and Ohio areas hit by severe storms and tornadoes in recent months are encouraged to work with borrowers and communities affected, according to two Financial Institution Letters (FILs) issued Friday by the Federal Deposit Insurance Corp. (FDIC).

The FDIC, in FIL-23-2024, cited the severe storms, straight-line winds, and tornadoes April 25-27 affecting Nebraska’s Douglas and Washington Counties. The Federal Emergency Management Agency (FEMA) declared a federal disaster for selected areas May 3. FIL 22-2024 notes tornadoes on March 14 that affected Ohio’s Auglaize, Crawford, Darke, Delaware, Hancock, Licking, Logan, Mercer, Miami, Richland, and Union Counties. FEMA declared a federal disaster May 2.

The FDIC is encouraging banks to “work constructively” with borrowers experiencing difficulties beyond their control due to these events, for example, by extending repayment terms, restructuring current loans, or easing terms for new loans, all in keeping with sound banking practices.

It reminds that banks “may receive favorable Community Reinvestment Act consideration for community development loans, investments, and services in support of disaster recovery.”

FDIC FIL-23-2024 (Nebraska)

FDIC FIL-22-2024 (Ohio)

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