Financial Institution Letter
FIL-63-2011
September 13, 2011
REGULATORY RELIEF
Guidance to Help Financial Institutions and Facilitate Recovery in Areas of
Pennsylvania Affected by Tropical Storm Lee
Summary: The FDIC has announced a series of steps intended to provide regulatory relief to financial
institutions and facilitate recovery in areas of Pennsylvania affected by Tropical Storm Lee.
Statement of Applicability to Institutions with Total Assets under $1 Billion: This Financial Institution Letter
applies to all FDIC-supervised financial institutions.
Suggested Distribution:
FDIC-Supervised Banks (Commercial and Savings)
in Pennsylvania
Suggested Routing:
Chief Executive Officer
Compliance Officer
Chief Lending Officer
Related Topics:
Lending
Investments
Publishing Requirements
Consumer Laws
Community Reinvestment Act
Contact:
Assistant Regional Director Ed Lloyd at (917) 320-
2535 or Elloyd@fdic.gov
Note:
FDIC Financial Institution Letters (FILs) may be
accessed from the FDIC's Web site at
www.fdic.gov/news/news/financial/2011/index.html.
To receive FILs electronically, please visit
http://www.fdic.gov/about/subscriptions/fil.html.
Paper copies of FDIC financial institution letters
may be obtained through the FDIC's Public
Information Center, 3501 Fairfax Drive, E-1002,
Arlington, VA 22226 (877-275-3342 or 703-562-
2200).
Highlights:
Tropical Storm Lee caused significant property damage in areas
of Pennsylvania beginning on September 3, 2011.
A federal disaster for selected areas in Pennsylvania was
declared on September 12, 2011. Additional designations may
be made after damage assessments are completed in the
affected areas. A current list of designated areas is available at
www.fema.gov.
The FDIC is encouraging banks to work constructively with
borrowers experiencing difficulties beyond their control because
of damage caused by the storm.
Extending repayment terms, restructuring existing loans, or
easing terms for new loans, if done in a manner consistent with
sound banking practices, can contribute to the health of the local
community and serve the long-term interests of the lending
institution.
Banks may receive favorable Community Reinvestment Act
(CRA) consideration for community development loans,
investments, and services in support of disaster recovery.
The FDIC also will consider regulatory relief from certain filing
and publishing requirements.
Federal Deposit Insurance Corporation
550 17th Street NW, Washington, D.C. 20429-9990
FIL-63-2011
September 13, 2011
REGULATORY RELIEF
Guidance to Help Financial Institutions and Facilitate Recovery in Areas of
Pennsylvania Affected by Tropical Storm Lee
Summary: The FDIC has announced a series of steps intended to provide regulatory relief to financial
institutions and facilitate recovery in areas of Pennsylvania affected by Tropical Storm Lee.
Statement of Applicability to Institutions with Total Assets under $1 Billion: This Financial Institution Letter
applies to all FDIC-supervised financial institutions.
Suggested Distribution:
FDIC-Supervised Banks (Commercial and Savings)
in Pennsylvania
Suggested Routing:
Chief Executive Officer
Compliance Officer
Chief Lending Officer
Related Topics:
Lending
Investments
Publishing Requirements
Consumer Laws
Community Reinvestment Act
Contact:
Assistant Regional Director Ed Lloyd at (917) 320-
2535 or Elloyd@fdic.gov
Note:
FDIC Financial Institution Letters (FILs) may be
accessed from the FDIC's Web site at
www.fdic.gov/news/news/financial/2011/index.html.
To receive FILs electronically, please visit
http://www.fdic.gov/about/subscriptions/fil.html.
Paper copies of FDIC financial institution letters
may be obtained through the FDIC's Public
Information Center, 3501 Fairfax Drive, E-1002,
Arlington, VA 22226 (877-275-3342 or 703-562-
2200).
Highlights:
Tropical Storm Lee caused significant property damage in areas
of Pennsylvania beginning on September 3, 2011.
A federal disaster for selected areas in Pennsylvania was
declared on September 12, 2011. Additional designations may
be made after damage assessments are completed in the
affected areas. A current list of designated areas is available at
www.fema.gov.
The FDIC is encouraging banks to work constructively with
borrowers experiencing difficulties beyond their control because
of damage caused by the storm.
Extending repayment terms, restructuring existing loans, or
easing terms for new loans, if done in a manner consistent with
sound banking practices, can contribute to the health of the local
community and serve the long-term interests of the lending
institution.
Banks may receive favorable Community Reinvestment Act
(CRA) consideration for community development loans,
investments, and services in support of disaster recovery.
The FDIC also will consider regulatory relief from certain filing
and publishing requirements.
Federal Deposit Insurance Corporation
550 17th Street NW, Washington, D.C. 20429-9990
2
SUPERVISORY PRACTICES REGARDING DEPOSITORY INSTITUTIONS
AND BORROWERS AFFECTED BY TROPICAL STORM LEE IN AREAS OF
PENNSYLVANIA
The Federal Deposit Insurance Corporation (FDIC) recognizes the serious impact of the
tropical storm on customers and operations of financial institutions in Pennsylvania and
will provide regulatory assistance to institutions subject to its supervision. These
initiatives will provide regulatory relief and facilitate recovery. The FDIC encourages
depository institutions in the affected areas to meet the financial services needs of their
communities.
The affected counties in Pennsylvania are Adams, Bradford, Columbia, Cumberland,
Dauphin, Lancaster, Lebanon, Luzerne, Lycoming, Montour, Northumberland, Perry,
Schuylkill, Snyder, Sullivan, Susquehanna, Union, Wyoming, and York.
Lending: Bankers should work constructively with borrowers in communities affected
by the storm. The FDIC realizes the effects of natural disasters on local businesses and
individuals are often transitory, and prudent efforts to adjust or alter terms on existing
loans in affected areas should not be subject to examiner criticism. In supervising
institutions affected by the storm, the FDIC will consider the unusual circumstances they
face. The FDIC recognizes that efforts to work with borrowers in communities under
stress can be consistent with safe-and-sound banking practices as well as in the public
interest.
Community Reinvestment Act (CRA): Financial institutions may receive CRA
consideration for community development loans, investments or services that revitalize
or stabilize federally designated disaster areas in their assessment areas or in the states or
regions that include their assessment areas. For additional information, institutions
should review the Interagency Questions and Answers Regarding Community
Reinvestment at http://www.ffiec.gov/cra/pdf/2010-4903.pdf at Section 12(g)(4)(ii). For
help in identifying community development activities to revitalize or stabilize a disaster
area, financial institutions can contact their regional Community Affairs Officer (see
http://www.fdic.gov/consumers/community/offices.html).
Investments: Bankers should monitor municipal securities and loans affected by the
storm. The FDIC realizes local government projects may be negatively affected.
Appropriate monitoring and prudent efforts to stabilize such investments are encouraged.
Reporting Requirements: FDIC-supervised institutions affected by the storm should
notify the New York Regional Office if they expect a delay in filing Reports of Income
and Condition or other reports. The FDIC will evaluate any causes beyond the control of
a reporting institution when considering the length of an acceptable delay.
Publishing Requirements: The FDIC understands the damage caused by the storm may
affect compliance with publishing and other requirements for branch closings,
relocations, and temporary facilities under various laws and regulations. Banks
experiencing disaster-related difficulties in complying with any publishing or other
requirements should contact the New York Regional Office.
SUPERVISORY PRACTICES REGARDING DEPOSITORY INSTITUTIONS
AND BORROWERS AFFECTED BY TROPICAL STORM LEE IN AREAS OF
PENNSYLVANIA
The Federal Deposit Insurance Corporation (FDIC) recognizes the serious impact of the
tropical storm on customers and operations of financial institutions in Pennsylvania and
will provide regulatory assistance to institutions subject to its supervision. These
initiatives will provide regulatory relief and facilitate recovery. The FDIC encourages
depository institutions in the affected areas to meet the financial services needs of their
communities.
The affected counties in Pennsylvania are Adams, Bradford, Columbia, Cumberland,
Dauphin, Lancaster, Lebanon, Luzerne, Lycoming, Montour, Northumberland, Perry,
Schuylkill, Snyder, Sullivan, Susquehanna, Union, Wyoming, and York.
Lending: Bankers should work constructively with borrowers in communities affected
by the storm. The FDIC realizes the effects of natural disasters on local businesses and
individuals are often transitory, and prudent efforts to adjust or alter terms on existing
loans in affected areas should not be subject to examiner criticism. In supervising
institutions affected by the storm, the FDIC will consider the unusual circumstances they
face. The FDIC recognizes that efforts to work with borrowers in communities under
stress can be consistent with safe-and-sound banking practices as well as in the public
interest.
Community Reinvestment Act (CRA): Financial institutions may receive CRA
consideration for community development loans, investments or services that revitalize
or stabilize federally designated disaster areas in their assessment areas or in the states or
regions that include their assessment areas. For additional information, institutions
should review the Interagency Questions and Answers Regarding Community
Reinvestment at http://www.ffiec.gov/cra/pdf/2010-4903.pdf at Section 12(g)(4)(ii). For
help in identifying community development activities to revitalize or stabilize a disaster
area, financial institutions can contact their regional Community Affairs Officer (see
http://www.fdic.gov/consumers/community/offices.html).
Investments: Bankers should monitor municipal securities and loans affected by the
storm. The FDIC realizes local government projects may be negatively affected.
Appropriate monitoring and prudent efforts to stabilize such investments are encouraged.
Reporting Requirements: FDIC-supervised institutions affected by the storm should
notify the New York Regional Office if they expect a delay in filing Reports of Income
and Condition or other reports. The FDIC will evaluate any causes beyond the control of
a reporting institution when considering the length of an acceptable delay.
Publishing Requirements: The FDIC understands the damage caused by the storm may
affect compliance with publishing and other requirements for branch closings,
relocations, and temporary facilities under various laws and regulations. Banks
experiencing disaster-related difficulties in complying with any publishing or other
requirements should contact the New York Regional Office.