Hurricane Helene (2024) - Bank & Credit Union
Bulletin 24-1
TO: State-Chartered Banks and Credit Unions
FROM: Greg Gonzales
DATE: October 4, 2024
RE: Statement Regarding Tennessee Banks and Credit Unions Affected by Hurricane Helene
The Tennessee Department of Financial Institutions (TDFI) recognizes the serious impact of Hurricane Helene on the customers and operations of many financial institutions and will provide assistance to affected institutions. Given the substantial economic impact to both consumers and businesses, the TDFI encourages institutions operating in the affected areas to meet the financial services needs of their communities.
Community Support
The TDFI understands that institutions can serve as a community hub. We encourage institutions to work with consumers and businesses in supporting their communities in non-traditional manners and we recognize that support is occurring and is ongoing from Tennessee institutions. These may include, but not be limited to, providing financial or timing flexibility and providing information or documentation to affected customers where the bank may be the sole recordkeeper for insurance or emergency services and potentially working with other financial institutions to meet the needs of customers.
Lending
The TDFI encourages banks and credit unions to work with borrowers in communities affected by Hurricane Helene and we recognize that is already occurring. Prudent efforts to adjust or alter terms on loans in affected areas are supported by the TDFI and should not be subject to examiner criticism. Institutions should consider the facts and circumstances of each borrower and modification. In supervising institutions affected by Hurricane Helene, the TDFI will consider the unprecedented circumstances that customers and institutions face. We recognize that efforts to work with borrowers in communities under stress can be consistent with sound practices, as well as in the public interest and we strongly encourage that effort.
Temporary Facilities and/or Temporary Closures
We understand that many financial institutions may face ongoing staffing, power, telecommunications, and other challenges in fully re-opening facilities after Hurricane Helene. In cases in which operational challenges persist, state banks and credit unions are authorized to establish temporary facilities and/or temporarily close facilities and to provide TDFI notice as circumstances permit. Telephone or email notice to the TDFI and primary federal regulator will suffice. Prior approvals from TDFI are not required to establish temporary facilities and/or to temporarily close a facility. In addition, the TDFI does not require an application, public notice or application fee for any temporary facility or temporary closure of a facility.
TDFI staff stands ready to work with affected institutions and consumers that may be experiencing problems.
For information specific to your institution, please contact one of the following TDFI representatives:
Banks: Phil Ruffin, (615) 934-1637, philip.ruffin@tn.gov
Credit Unions: Brian Williams, (865) 337-2650, brian.williams@tn.gov
Emergency Services TEMA Coordinator / IT Regulatory: Josh Robertson, (865) 228-0293, josh.robertson@tn.gov
Consumer Resources: Alan Smith, (615) 532-1024, alan.smith@tn.gov