Tennessee Banks will Receive Relief from Impact of Severe Weather

Tennessee Banks will Receive Relief from Impact of Severe Weather

The FDIC has issued Financial Institution Letter (FIL)-33-2011, Regulatory Relief Guidance to Help Financial Institutions and Facilitate Recovery in Areas of Tennessee Affected by Severe Weather. The FIL was issued in response to severe weather which caused significant property damage in areas of Tennessee on April 25-28, 2011. The FDIC has established certain steps which are designed to provide regulatory relief to financial institutions affected by the severe weather. The FDIC is encouraging financial institutions to work with borrowers experiencing difficulties due to circumstances beyond their control resulting from the severe weather. The FDIC is also urging financial institutions in these affected areas to meet the financial services needs of their communities in this time of recovery. According to the FIL, prudent efforts to adjust or alter terms on existing loans for borrowers in these affected areas should not be subject to examiner criticism, and the FDIC will consider these unusual circumstances when evaluating such loans.

The FDIC has also instructed financial institutions to monitor municipal securities affected by the severe weather, as local government projects could be negatively affected. FDIC-supervised institutions affected by this severe weather are instructed to notify their regional office if they expect a delay in filing Reports of Income and Condition or other reports.

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WE ARE REQUIRED BY IRS CIRCULAR 230 TO INFORM YOU THAT THE FOLLOWING DISCUSSION WAS NOT INTENDED OR WRITTEN TO BE USED, AND IT CANNOT BE USED, NOR RELIED UPON, BY ANY TAXPAYER FOR THE PURPOSE OF AVOIDING ANY PENALTIES THAT MAY BE IMPOSED UNDER FEDERAL TAX LAW. THE ADVICE WAS WRITTEN TO SUPPORT THE PROMOTION OR MARKETING OF THE TRANSACTIONS OR MATTERS ADDRESSED IN THE DISCUSSION. EACH TAXPAYER SHOULD SEEK ADVICE BASED ON ITS PARTICULAR CIRCUMSTANCES FROM AN INDEPENDENT TAX ADVISOR.


Mike Shamblin

Mike Shamblin

Managing Principal of Audit & Assurance Services

Matt Neilson

Matt Neilson

Principal

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