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Current Newsletter

CARES Act Provisions for Community Banks
Lindsey M. Hengeli, CPA

The CARES Act, which was signed into law on March 27, 2020, contained several provisions of interest to community banks including (1) a temporary decrease of the Community Bank Leverage Ratio; (2) resurrection of the Temporary Liquidity Guaranty Program; (3) allowing community banks to participate in the SBA 7(a) lending program; and (4) delaying CECL implementation for some institutions.

Troubled Debt Restructuring (TDR) Guidance for Banks Working with Customers Affected by Coronavirus
Robert L. Hamby, CPA

On March 22, 2020, federal and state banking regulators issued an Interagency Statement on Loan Modification and Reporting for Financial Institutions Working with Customers Affect by the Coronavirus (COVID-19). The statement directs that short-term loan modifications which have been made for borrowers affected by the virus do not have to be automatically categorized as TDRs.

Other Items of Significance to Community Banks Due to COVID-19

FDIC Issues FAQs for Financial Institutions Affected by COVID-19

On March 19, the FDIC responded to a number of questions that have been raised by financial institutions that have been impacted by COVID-19. The questions covered topics such as working with borrowers, operational issues and compliance concerns.

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OCC Issues FAQs for Financial Institutions Affected by COVID-19

The OCC also published frequently asked questions for banks.

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Grace Period for Call Report Filing

Financial institutions that need additional time to submit their Call Report if they have been significantly impacted by the coronavirus disease will be given an additional 30 days to submit the March 31, 2020 Call Report. You are encouraged to contact your primary federal regulator if you anticipate a filing delay.

IRS Filing and Payment Deadline Extended to July 15

The Treasury Department and the Internal Revenue Service are providing special tax filing and payment relief to business and individuals in response to COVID-19. The deadline for filing and making payments related to 2019 federal income taxes is extended to July 15, 2020. The relief is automatic and does not require the filing of any additional forms.

In addition, any estimated tax payments for tax year 2020 that are due on April 15 will be extended to July 15.