We study Puerto Rico’s experience after the severe hurricane season of 2017 to better understand how extreme weather disasters affect bank stability and their ability to lend. Despite the devastation wrought by two category 5 hurricanes in a single month, we find relatively modest and transitory impacts on bank performance with no evident decline in lending capacity. We discuss various mitigants that help limit bank exposure to extreme weather and whether these mitigants may be vulnerable given the potential for more severe and more impactful climate events.Global climate warming has garnered broad scientific consensus (see, e.g., NASA (2022) for broad-based scientific perspectives on the topic), and climate financial risk – climate change’s impact on the financial institutions, financial markets, and the financial economy – is an active area of study from policy, academic, and industry perspectives. Banks, in particular, have clear financial incentives to protect against climate-related losses from climate outcomes’ negative effects on their customers, clients, and counterparties, the collateral that is used to secure their loans, and their own business activities. Additionally, many contractual and market mechanisms exist for banks to protect their financial interests. However, severe climate events may occur that are far beyond the worst expected outcomes that banks plan for or protect against, so it is an empirical matter whether banks are able to implement sufficient safeguards to protect themselves against unexpectedly severe climate-related events.