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Federal Deposit
Insurance Corporation

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

Deposit Insurance Assessments

Small Bank Credits

Large Bank Surcharges End - Small Bank Credits Awarded for future use
On September 30, 2018, the Deposit Insurance Fund Reserve Ratio reached 1.36 percent.  Because the Reserve Ratio has exceeded 1.35 percent, two deposit insurance assessment changes occurred under the FDIC regulations:

Preliminary Estimate of Small Bank Assessment Credits

The FDIC notified the banks that it determined are eligible for small bank assessment credits (i.e., eligible banks).  Notices, with preliminary estimates, were sent via FDICconnect

The assessment regulations (12 CFR Part 327) provide that after the reserve ratio reaches 1.38 percent (and provided that it remains at least 1.38 percent), the FDIC will automatically apply small bank credits to reduce small banks’ regular deposit insurance assessments up to the full amounts of their assessments or the full amount of their credits, whichever is less.  Credits will be awarded to any bank, including any small bank affiliate of a large bank, that was a small bank at some point during the credit calculation period (i.e., credit accruing institution).  If a bank acquires another bank that is owed credits through merger or consolidation after the reserve ratio reaches 1.35 percent, the acquiring bank is successor to any credits of the acquired small bank.  Other than through merger or consolidation, credits are not transferable.  Call Report amendments made after December 28, 2018, do not affect a bank’s credit share. 

Small Bank Assessment Credit Calculation

Generally, an eligible bank’s credits are equal to its share of the aggregate assessment bases of all eligible banks multiplied by the aggregate amount of credits awarded.  Specific details on how these elements are calculated are below.

Aggregate Small Bank Assessment Credit Award Calculation
The FDIC has calculated the aggregate amount of assessment credits awarded for all eligible banks using the methodology described below.

The aggregate assessment credits owed to all credit eligible banks is calculated as:

  • the fraction of quarterly regular deposit insurance assessments paid by credit accruing institutions during the credit calculation period multiplied by
  • the amount by which the Deposit Insurance Fund increased in excess of the total surcharges paid during the credit calculation period (provided that the aggregate amount of credits cannot exceed the aggregate amount of quarterly deposit insurance assessments paid by credit accruing institutions during the credit calculation period).
  1. The fraction of assessments paid by credit accruing institutions equals quarterly deposit insurance assessments paid by eligible institutions during the credit calculation period divided by the total amount of quarterly deposit insurance assessments paid by all institutions during the credit calculation period, excluding the aggregate amount of surcharges assessed. 
  2. The amount by which the Deposit Insurance Fund increased in excess of the total surcharges paid during the credit calculation period equals 0.2 percent of estimated insured deposits (the difference between 1.15 percent and 1.35 percent) as of the date the reserve ratio reached 1.35 percent.

Aggregate Assessment Awards Calculation

Aggregate assessments paid by credit accruing institutions during the credit calculation period (3rd quarter 2016 through 3rd quarter 2018)

$2,743,945,769.96

1

 

 

 

Aggregate assessments paid by all institutions minus aggregate surcharges paid (3rd quarter 2016 through 3rd quarter 2018)

$12,886,406,849.64

2

 

 

 

Fraction of quarterly regular deposit insurance assessments paid by credit accruing institutions (Line 1/Line 2)

21.2933349224237 %

3

 

 

 

0.20 percent of estimated insured deposits as of 9/30/2018

$14,753,131,756.00

4

 

 

 

Total surcharges paid by large banks (3rd quarter 2016 through 3rd quarter 2018)

$11,161,962,909.61

5

 

 

 

Non-surcharge growth from 1.15% to 1.35% (line 4 minus line 5)

$3,591,168,846.39

6

 

 

 

Aggregate assessment credits for all eligible banks (line 6 x line 3)

$764,679,610.09

7

Individual Small Bank Assessment Credit Calculation

Each individual bank’s credit award is calculated as the product of the apportioned share of credits to an individual eligible institution multiplied by the aggregate assessment credits (as described above).

The apportioned share of credits to an individual institution is calculated as:

    • the average of its quarterly deposit insurance assessment bases during the credit calculation period (an institution’s credit base shall be deemed to equal zero for any assessment period that the bank was not a credit accruing institution and this amount is limited to the total amount of quarterly deposit insurance assessments paid by that bank during the credit calculation period) plus
    • all of the average quarterly deposit insurance assessment bases of eligible banks acquired by the institution through merger or consolidation before the Deposit Insurance Fund reached 1.35 percent, and the sum is divided by 
    • the aggregate of all the average quarterly deposit insurance assessment bases of all eligible institutions.
    • The resulting value is then multiplied by the aggregate amount of credits awarded (as described above).

Credit Timing & Application

Requests for Review

Under the FDIC’s assessment regulations, any institution that disagrees with the basis for its assessment credits, or the FDIC’s computation of its credits, and seeks to change their credit amount, must submit a written request for review and any supporting documentation to the FDIC’s Division of Finance.  Any request for review must be submitted within 30 days from the initial notice or within 30 days of any updated notice reflecting adjustments to institutions’ assessment credits.  Requests for review should be addressed to:

Federal Deposit Insurance Corporation
Attention: Deputy Director, Division of Finance
3501 Fairfax Drive, Room E-5080
Arlington, Virginia 22226-3500

Questions and Additional Information

If you have questions about the institution’s credit as shown in the Preliminary Statement, you may call the FDIC Assessments Hotline at 1-800-759-6596 (select option 2) or email us at assessments@fdic.gov.  Please note, while we hope that such inquiries will help resolve any confusion, such informal inquiries do not constitute a request for review.

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