Banks Respond to Wildfires

As wildfires continue to ravage Los Angeles County, causing tragic loss of life and billions of dollars in damage, the banking industry is again rallying to help those affected by the disaster, including members of the banking family.

At the request of the California Bankers Association, the ABA Foundation has launched a national fundraising effort to aid recovery efforts. All funds raised will be directed to the American Red Cross Los Angeles Region and the California Community Foundation. ABA will lead the fundraising effort by donating $25,000. ABA also encourages bankers across the country to consider contributing to recovery efforts in California.

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Banks Respond to Recent Wildfires

In addition to the ABA Foundation’s fundraising effort, individual institutions have announced their own actions to help those affected by the fires.

On Jan. 17, California Governor Gavin Newsom announced that Bank of America, Citi, JPMorgan Chase, U.S. Bank, and Wells Fargo “will offer mortgage relief for property owners in designated fire areas as a result of the devastation in Los Angeles and Ventura Counties.” These institutions have committed to offer their customers who are impacted homeowners a 90-day forbearance of their mortgage payments, without reporting these payments to credit reporting agencies, and the opportunity for additional relief. Borrowers must contact their mortgage servicer to obtain relief. More details are available in this press release.

Below are some additional examples of recent bank actions to help employees, customers and nonprofits impacted by the devastating wildfires in Southern California. If your institution would like to be added to this list, please reach out to ABA’s Mike Townsend at [email protected]..

• Banc of California created a charitable fund and committed $1 million to Southern California Communities affected by the wildfires.
• Bank of America is easing mortgage repayment conditions for customers affected by the Los Angeles wildfires, as residents grapple with one of the most destructive natural disasters in the city's history. Through its Client Assistance Program, the bank has reached out to 2.5 million clients letting them know that assistance is available tailored to customer needs, which includes the possibility of mortgage forbearance. Bank of America has also committed $2 million to support rebuilding efforts with $1 million to American Red Cross, $500,000 to the Los Angeles Area Chamber of Commerce for its small business relief fund and $500,000 to the Los Angeles Regional Food Bank. 
• Bank of Hope has been communicating each day with its employees and encouraging remote work due to the fires, evacuation orders and school closures, a company spokesperson told American Banker in an email. None of its branches or offices have been destroyed by fire, but at least one is temporarily closed due to evacuation orders and power outages related to the Eaton fire, which has burned through homes and acreage in Altadena and Pasadena.
• Bank of Montreal is providing forbearance for affected customers.
• California Bank & Trust (CB&T) announced it will donate $100,000 to organizations providing resources and relief to those impacted by the unprecedented wildfires in Los Angeles.
• City National Bank (based in Los Angeles and operating several branches in the region), along with its parent firm the Royal Bank of Canada, announced they are donating US$3 million to support victims of the devastating wildfires in Southern California. This donation includes contributions from City National Bank, RBC and RBC Foundation USA to support the American Red Cross, Community Build Inc., Entertainment Industry Foundation, International Medical Corps, Neighborhood Housing Services Los Angeles County, United Way of Greater Los Angeles, West Angeles Community Development Corporation, World Central Kitchen and YMCA of Metro Los Angeles. As part of this commitment, RBC is contributing $250,000 to the American Red Cross (ARC) Disaster Responder Program, which helps the ARC have the critical systems and supplies in place to respond immediately to disasters.
• JPMorgan Chase announced that to support relief and recovery efforts, the bank will be providing $2 million in philanthropic support to organizations helping to meet the critical needs of those most impacted by the wildfires. To support customers and clients, the firm is providing a variety of assistance which includes (but is not limited to) refunding a variety of fees in disaster-declared area, offering mortgage assistance in line with federal guidelines, and creating proactive communications for customers whose branches have suffered severe damage.
• U.S. Bancorp, which has about 200 branches and 4,000 employees in the L.A. area, is giving $100,000 to the nonprofit United Way of Greater Los Angeles and plans to activate its 4,500 ATMs to accept donations to the American Red Cross. It is also offering a two-to-one match for any donations made by employees to either of those charities, a spokesperson said. The Minneapolis-based parent company of U.S. Bank regularly activates its ATM network to collect disaster-related donations from around the country.
• The Wells Fargo Foundation is donating $1.3 million in support of immediate and long-term wildfire relief efforts. Initial beneficiaries include the American Red Cross, the California Community Foundation’s Wildfire Recovery Fund, the Pasadena Community Foundation’s Eaton Canyon Fire Relief and Recovery Fund, and the Los Angeles Fire Department Foundation. In the coming days, additional donations will support small business recovery efforts. Wells Fargo also proudly supports the American Red Cross’ Annual Disaster Giving Program and Team Rubicon’s Ready Reserve Fund, which enabled those organizations to prepare and respond quickly to the devastating conditions in Southern California. Wells Fargo is also matching employee donations to select organizations, separate from the annual $2,000 maximum.
• Western Alliance Bancorp has announced a significant contribution to aid those affected by the Southern California wildfires. The company is donating $100,000 to the American Red Cross, sourced from the Western Alliance Community Foundation and matched by employee contributions. Additionally, Western Alliance is dedicating $1 billion in loan capacity to support small businesses and homeowners with owner-occupied construction loans to help rebuild the impacted areas.