Storm Impact and Federal Disaster Declaration
In late July 2026, severe storms caused substantial property damage in selected regions of West Virginia, specifically Lewis and Upshur Counties. Following assessments, FEMA declared these areas federal disaster zones as of August 3, 2026, allowing for additional federal support and designations pending further damage evaluations.
Encouragement for Loan Modifications and Borrower Assistance
The FDIC explicitly encourages institutions under its supervision to work constructively with borrowers experiencing difficulties related to storm damage. This includes extending repayment schedules, restructuring existing obligations, or easing terms on new loans. Such actions, when aligned with sound banking practices, are recognized as consistent with safe-and-sound operations and the public interest, and institutions will not face criticism for these prudent efforts.
Community Reinvestment Act (CRA) Considerations
Loans, investments, and services that contribute to revitalizing or stabilizing federally designated disaster areas within an institution's assessment area or broader regions may qualify for favorable CRA consideration. This aligns with Interagency Q&As on community development activities related to disaster recovery. Institutions may contact regional Community Affairs Officers for guidance on qualifying activities and CRA credit applicability.
Reporting and Publishing Relief
Recognizing operational disruptions, the FDIC advises affected institutions to notify the Atlanta Regional Office if circumstances necessitate delayed filing of Reports of Income and Condition or other regulatory reports. The agency will evaluate legitimate causes for delay on a case-by-case basis. Additionally, difficulties in meeting publishing requirements—such as those for branch closing or relocation notices—due to disaster impacts should be reported to the same regional office, where accommodations may be granted.
Temporary Banking Facilities
To support continued access to banking services, institutions in affected areas seeking to establish temporary facilities following damage to existing offices can expect expedited processing by the FDIC. Initial notifications may be made via telephone, with formal written notice submitted subsequently if needed.
Consumer Protections and Regulatory Flexibility
The guidance also references Regulation Z’s provision permitting waiver or modification of the three-day right of rescission for principal dwelling-secured loans under bona fide personal financial emergencies, applicable in disaster scenarios, subject to consumer declaration requirements.
Summary
Overall, the FDIC guidance reflects a pragmatic approach to balancing statutory requirements with flexibility during disaster recovery. The supervisory agency promotes active engagement with impacted communities through loan accommodations and community development activities while providing procedural leniency to affected institutions working to restore normal operations.