REGULATORY RELIEF

The spread of major wildfires in the state of California, including the counties of Los Angeles, San Bernardino, San Diego, and Ventura, have resulted in deaths, injuries and property damage. The FDIC is encouraging banks to work constructively with borrowers who, because of the damage from the fires, are experiencing difficulties beyond their control. The FDIC has prepared the attached guidelines, which state that 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 community and serve the long-term interests of the lending institution. The guidelines also address other types of regulatory relief.

For guidance on these and related matters, please contact Acting Assistant Regional Director Bruce A. Johnson or Case Manager Kent C. Wiser in the San Francisco Regional Office at (415) 546-0160.

For your reference, FDIC financial institution letters may be accessed from the FDIC's Web site at www.fdic.gov/news/financial-institution-letters/2003/index.html .

Attachment: Supervisory Practices Regarding Depository Institutions and Borrowers Affected by Fire Damage In California

Distribution: FDIC-Supervised Banks (Commercial and Savings) in California

NOTE: Paper copies of FDIC financial institution letters may be obtained through the FDIC's Public Information Center, 801 17th Street, NW, Room 100, Washington, DC 20434 (1-877-275-3342, option 5, or (703) 562-2200).