SPST-0070 Application to Establish a Branchor Move Main Office or Branch 2016 renewal

SUPPORTING STATEMENT

APPLICATION FOR A BANK TO ESTABLISH A BRANCH OR MOVE ITS MAIN OFFICE OR BRANCH

(OMB NO. 3064‑0070)

INTRODUCTION

The FDIC is requesting OMB approval for the revision and three-year extension of the information collection relating to applications by insured State nonmember banks to obtain FDIC consent to establish branches or move main offices or branches. The current clearance expires on August 31, 2016.

A. JUSTIFICATION

1. Circumstances and Need

Section 18(d) of the Federal Deposit Insurance Act (12 USC 1828(d) (FDI Act) provides that no State nonmember insured bank shall establish and operate any new domestic branch or move its main office or any such branch from one location to another without the prior written consent of the FDIC. Section 18(d) requires the FDIC to consider the factors enumerated in section 6 of the FDI Act (12 USC 1816) in granting or withholding consent to the applicant. Those factors are:

(a) The financial history and condition of the bank,

(b) The adequacy of its capital structure,

(c) Its future earnings prospects,

(d) The general character and fitness of its management,

(e) The risk presented by the bank to the Bank Insurance Fund or the Savings Association Insurance Fund,

(f) The convenience and needs of the community to be served, and

(g) Whether its corporate powers are consistent with the purposes of the FDI Act.

“Subpart C - Establishment and Relocation of Domestic Branches and Offices@ of 12 CFR 303 - Applications, Requests, Submittals, Delegations of Authority, and Notices Required to be Filed by Statute or Regulation@ specifies the steps that respondents must take to comply with the statutory mandate.

2. Use of Information Collected

The applicant is required to furnish information, in letter form, about the location of the proposed site, the involvement of bank insiders in the proposal, the impact of the proposal on the environment and compliance with local zoning laws, historic preservation considerations, community services considerations, and evidence of public notice of the proposal. The information furnished by the applicant is used by the FDIC as a basis for evaluating the factors required by statute (12 USC 1828(d) and 1816) before approving the application.

3. Use of Technology to Reduce Burden

Respondents provide the information for this collection through the FDIC’s secure interactive Website, FDICconnect.

4. Efforts to Identify Duplication

This collection does not duplicate information available elsewhere. The information is unique to the occasion to which the application relates. Information relating to the applicant's financial condition, which is a statutory consideration, is not part of the collection because that information is already available to the FDIC through the Report of Examination and the quarterly Report of Condition and Income (Call Report).

5. Minimizing the Burden on Small Banks

The information collected is only that required to evaluate the applicant, giving consideration to the statutory factors enumerated in section 6 of the FDI Act.

6. Consequences of Less Frequent Collections

The information is collected only when a bank wishes to establish a branch or move the main office or relocate a branch as required by statute.

7. Special Circumstances

There are no special circumstances.

8. Consultation with Persons Outside the FDIC

A Federal Register notice, seeking public comment on renewal of the information collection, was published on May 24, 2016 (81 FR 35752). No comments were received in response to the notice.

9. Payment or Gift to Respondents

There are no payments or gifts to respondents.

10. Confidentiality

Identifying information regarding the applicant and its proposed transaction is publicly available. Otherwise, information will be kept private to the extent allowed by law.

11. Information of a Sensitive Nature

No information of a sensitive nature is required.

12. Estimate of Annual Burden

Number of applications (Responders): 752.

Hours to prepare an application: 5 hours

Total annual burden hours: 7,520 hours.

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13. Capital, Start-up, Operating, and Maintenance Cost Burden

There is no capital, start up, operating or maintenance costs.

14. Estimated Annual Cost to Federal Government

None.

15. Reason for Change in Burden

The change in burden I due to the FDIC’s revised estimate on the time it should take respondents to prepare and submit an application and a reduction in the estimated number of respondents.

16. Publication

Identifying information regarding the applicant and its proposed transaction is published through the FDIC’s website.

17. Display of Expiration Date

No exceptions are requested for displaying the expiration date.

18. Exceptions to Certification

There are no exceptions to the certifications.

B. Statistical Methods

Not applicable.

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