Payment Information

Payment Requirements

• Payment must be by ACH as authorized on the invoice; payments by check will be returned.
• If your institution, or correspondent bank, has ACH filters in place, the filters should be set to accept the FDIC assessment debit(s).
• ACH debits are sometimes bundled together. A debit amount might need to be unbundled in order to identify the FDIC charge.
• ACH Changes or updates can only be submitted through our secure website, FDICconnect, by your institution’s FDICconnect coordinator or authorized user. Go to the section on FDICconnect for more information on submitting ACH changes.
• Only negative confirmation of payment is provided; that is, your institution is contacted if your ACH debit rejects. We will telephone your institution immediately upon notification of nonpayment. Any failure to make prompt payment can result in civil money penalties; please see the Penalties and Late Interest Charges section below.
• If your total amount due is a Net Credit (that is, a refund), the FDIC will issue your institution a Direct Credit via ACH instead of a debit, using the Routing Transit Number (RTN), Account Number, and Account Type currently on file with the FDIC for the Direct Debit.

• FDIC & TAGP Fourth Quarter: The net FDIC amount and the Transaction Account Guarantee Program (TAGP) amounts are payments for a previous quarter. For accounting guidance, please see the table below.

• FICO: The FICO amount does not represent a payment that covers a specific time period. Rather, it is a charge that must be expensed but not necessarily over any time period. See FICO for more information.
• FDIC Special Assessment (collected on September 30, 2009): Under generally accepted accounting principles, the full amount of the 5 basis point special assessment on each insured depository institution’s assets minus Tier 1 capital as of June 30, 2009, should have been accrued as a liability (accrued expense payable) and an expense (other noninterest expense) in the quarter ending June 30, 2009. The accrual of this expense should not have been spread over the second and third quarters even though the assessment was not payable until September 30, 2009. The Special Assessment was computed with Tier 1 Capital as reported on the June 30, 2009, Report of Condition which should have included the accrual.
• FDIC Prepayment Amount (collected on December 30, 2009): See the Supplemental Instructions for the December 2009 Call Report.

Invoice Payment Dates

Payment for Merged or Acquired Institutions

• Some institutions have merged with, or assumed the deposits of, another FDIC insured member during the previous quarter. If your institution is the surviving institution, the invoices of any acquired institutions will be available to your institution on FDICconnect. Your authorized FDICconnect Coordinator(s) and/or User(s) will be able to download the invoices of acquired institutions by following the instructions in the FDICconnect section of this webpage. If an acquired 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.

• If an institution other than your own acquired some or all of the deposits of the disappearing institution, your institution might not be liable for the entire payment. If this is the case, please contact the Assessments Section.

Pro-rata Merger Payment

In a merger, if an acquiring institution files its Call Report or TFR using the Average Daily Deposit method of reporting, then there will be an additional, pro-rated assessment payment for the outgoing institution included in the acquiring institution’s invoice for the quarter in which the merger occurred.

For example:

Merger Date: May 1

Next Immediate invoice: June 30

• The next immediate invoice after the merger is the June 30 invoice based on March 31 Call Report or TFR data. This invoice is payment for the first quarter of the year. That is, it is payment for the quarter prior to the merger.
• Both the outgoing and the acquiring institutions filed March 31 Call Reports or TFRs. There are two invoices created and the acquiring institution is responsible for both invoices – its own invoice and the final invoice of the outgoing institution as described in the section above.

Next Following Invoice: September 30

• The next following invoice is the September 30 invoice based on June 30 Call Report or TFR data. This is the invoice for the quarter in which the merger occurred. Only the acquiring institution will have an invoice for this period.
• The September 30 invoice of the acquiring institution is based on that institution’s Average Daily Deposits for the second quarter (April, May, June). The Average Daily Deposits would not include the deposits of the outgoing institution for the month of April since the merger did not occur until May 1. The September invoice for the acquiring institution will include a pro-rated assessment for the acquired deposits for the month of April.

For more information, please see Section 327.6(b)(1) of the FDIC Rules and Regulations.

Penalties and Late Interest Charges

The FDI Act provides for a penalty for an institution’s failure to make an assessment payment on the due date. An institution that fails to timely pay an assessment of more than $10,000.00 is subject to a penalty of not more than 1 percent of the late assessment amount due for each day that the assessment is unpaid. An institution that fails to timely pay an assessment of $10,000.00 or less, is subject to a penalty of not more than $100.00 per day for each day that the assessment is unpaid. Penalties are computed from the day after the original payment settlement date through and including the date of final payment settlement. For more information, please see FIL-43-2007.

Daily interest (to compensate for the time value of money) is paid on overpayments and charged on underpayments of assessments. The overpayment or underpayment amount plus accrued interest will appear in the adjustment section of an upcoming quarterly invoice for the applicable institution. The interest rate charged for a quarter is the coupon equivalent yield of the average discount rate set on the 3-month Treasury bill at the last auction held by the United States Treasury Department during the preceding quarter. For more information, please see 12 CFR part 327.7