Rising Sea Level Predictions January 22, 2019

Federal Deposit Insurance Corporation History and Context Banking is regulated by an insurance company – FDIC Federal Deposit Insurance Corporation Safety and Soundness 2

History and Context FLOOD INSURANCE Safety and Soundness – Credit Quality Qualified borrowers Compliance Is the bank following the letter of the law? Has the bank properly mitigated its risk FLOOD INSURANCE

Regulatory Drivers National Flood Insurance Act – 1968 Originally conceived by Truman in the 50’s 1966, Johnson submits a Unified National Program for Managing Flood Losses to Congress A national flood program could help families bear the risk of floods and discourage “unwise occupancy of flood-prone areas” National Flood Insurance Program (NFIP) The key to success in any insurance program is participation

Regulatory Drivers Flood Disaster Protection Act of 1973 b)  The purpose of this Act, therefore, is to-- (1)  substantially increase the limits of coverage authorized under the national flood insurance program; (2)  provide for the expeditious identification of, and the dissemination of information concerning, flood-prone areas; (3)  require states or local communities, as a condition of future Federal financial assistance, to participate in the flood insurance program and to adopt adequate flood plain ordinances with effective enforcement provisions consistent with Federal standards to reduce or avoid future flood losses; and (4)  require the purchase of flood insurance by property owners who are being assisted by Federal programs or by federally supervised, regulated, or insured agencies or institutions in the acquisition or improvement of land or facilities located or to be located in identified areas having special flood hazards.   DEFINITIONS APPLICABLE TO FLOOD DISASTER PROTECTION ACT OF 1973 SEC. 3.  (a)  As used in this Act, unless the context otherwise requires, the term-- (1)  "community" means a State or a political subdivision thereof which has zoning and building code jurisdiction over a particular area having special flood hazards; (2)  "Federal agency" means any department, agency, corporation, or other entity or instrumentality of the executive branch of the Federal Government, and includes the Federal National Mortgage Association and the Federal Home Loan Mortgage Corporation; (3)  "financial assistance" means any form of loan, grant, guaranty, insurance, payment, rebate, subsidy, disaster assistance loan or grant, or any other form of direct or indirect Federal assistance, other than general or special revenue sharing or formula grants made to States;

Regulatory Drivers National Flood Insurance Reform act of 1994 Failure to comply can result in the fining of lenders CIVIL MONEY PENALTIES 2013 Glynn County Bank $135 thousand 2018 Suntrust $1.5 million

So how can we be affected locally? Biggert-Waters Flood Insurance Reform Act of 2012 Removed grandfathering and instituted risk based pricing

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Homeowner Flood Insurance Affordability Act of 2014

Other Risks Wetlands Classification – Retraction in Coastal Wealth $1 Trillion in our National Wealth is held in coastal real estate

2018 Harvard Study Introduces the theory of Climate Gentrification Based on Miami Dade County Fleeing the threats of Sea Level rise High Ground Properties are increasing in value faster than threatened properties …with that being said

Lot and Land Loan Specials United Community Bank Lot and Land Loan Specials