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Deposit Insurance Assessment Appeals: Guidelines & Decisions  

AAC-2004-02 (March 23, 2004)

By letter dated December 23, 2003, you requested a change to the capital group of the assessment risk classification assigned to [Thrift] (“Thrift”), for the semiannual assessment period that began on January 1, 2004.

The Federal Deposit Insurance Corporation’s (“FDIC”) Assessment Appeals Committee (“Committee”) has considered your request and determined that it should be granted.  The Committee found that the Office of Thrift Supervision’s (“OTS”) final approval of a stock offering was required before the Thrift could return substantial excess subscription funds to its subscribers.  The Thrift filed an application with the OTS for the stock offering in April 2003.  The OTS granted the Thrift approval to begin its stock offering on August 7, 2003 and the Thrift began the stock offering on August 13, 2003.  Prior to completion of the stock offering, the Thrift contacted the OTS to inform them that the Thrift had run substantially over subscription.  The stock offering was completed on September 22, 2003, but the OTS final approval was not received until October 7, 2003.  As a result, the excess funds could not be returned prior to the September 30, 2003 cut-off date.  But for the inability to return the funds, the Committee determined that the Thrift would have been assigned a risk classification of “1A.”  Prior to receipt of the excess funds, and immediately after returning the excess funds to subscribers, the Thrift was well capitalized.

Therefore, the assessment risk classification assigned to the Thrift will be changed from “3A” to “1A” for the semiannual assessment period beginning January 1, 2004.  Consistent with FDIC regulations, refunds or additional collections will be part of the next quarterly invoicing processing, and will be net of or in addition to any assessment for that invoice. 

You may contact Senior Assessment Specialist Jeffrey L. Owens of the FDIC’s Division of Finance at (202) 416-7130 with questions on any refunds or credits that result from this action.

By direction of the Assessment Appeals Committee.

 


Last Updated 06/30/2005 Legal@fdic.gov