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Federal Deposit
Insurance Corporation

Each depositor insured to at least $250,000 per insured bank

Deposit Insurance Assessments

 

Mergers, Acquisitions, & Branch Sales

  1. Merger Transaction - A merger is the acquisition or absorption of one healthy insured institution by another. Because the FDIC bills insurance premiums in arrears, the payment for a merger covers two billing quarters as explained below.  Payment for both quarters is the responsibility of the surviving institution.
    1. Payment for the quarter prior to the merger

    In a merger, the surviving institution is responsible for the final invoice of the outgoing institution. The final invoice is payment for the quarter prior to the merger transaction. For example, if a merger occurs on May 15, the final invoice of the outgoing institution is the invoice payable on June 30, based on March 31 Call Report data, and is payment for the first quarter of the year. 

    The final invoice of the outgoing institution will be available to the surviving institution on FDICconnect. The surviving institution’s authorized FDICconnect Coordinator(s) and/or User(s) will be able to download the invoice of an outgoing institution by following the instructions in the FDICconnect section of this webpage. If an outgoing institution does not appear on the surviving institution’s list of acquired institutions on FDICconnect, the surviving institution should contact the Assessments Section. Please have the details of your merger available – institution names, FDIC certificate numbers, and transaction date.

    The survivor’s RTN and ACH account will be used to satisfy the payment for the survivor and any acquired institutions as listed on FDICconnect. The survivor is responsible for ensuring the accuracy of the ACH information on each invoice and ensuring that its authorized account is funded for the combined total of all invoices.

    1. Payment for the quarter in which the merger occurred

    Schedule RC-O of the Call Report filed by the surviving institution for the quarter in which the merger occurred should average the Assets and Tier One Capital of both institutions for every day in that quarter. That is, the surviving institution should average the Assets and Tier One Capital as if the merger occurred on the first day of the quarter regardless of the actual merger date in the quarter, see:  Section 327.6(b). By doing this, all the Assets and Tier One Capital will be included in the assessable base on the survivor’s quarterly invoice that bills for the quarter in which the merger occurred. For example:

    A merger on May 15 would be treated as if it occurred on April 1 when the surviving institution is averaging Assets and Tier One Capital on its June 30 Call Report.  Thus, when the surviving institution receives its September 30 invoice, (which is computed using the June 30 Call Report figures and charges for deposit insurance for the second quarter) the assessment base on the invoice will include all the Assets and Tier One Capital of both institutions for every day in the second quarter.

    For additional assistance, an excerpt from the Call Report instructions for Schedule RC-O is attached. (RC-O Call Report)

     

  1. Acquisition of a Failed Institution from the FDIC
  1. Branch Sales