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Rule2025-23837

Establishment and Relocation of Branches and Offices

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Published

December 29, 2025

Effective

February 27, 2026

Issuing agencies

Federal Deposit Insurance Corporation

Abstract

The Federal Deposit Insurance Corporation (FDIC) is amending the processes by which an insured State nonmember bank may establish a branch or relocate a main office or branch by eliminating certain filing requirements, reducing processing timelines, and updating public notice procedures. The FDIC is also making corresponding changes to procedures applicable to the relocation of an insured branch of a foreign bank.

Full Text

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<title>Federal Register, Volume 90 Issue 245 (Monday, December 29, 2025)</title>
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[Federal Register Volume 90, Number 245 (Monday, December 29, 2025)]
[Rules and Regulations]
[Pages 60547-60559]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2025-23837]

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Rules and Regulations
Federal Register
________________________________________________________________________

This section of the FEDERAL REGISTER contains regulatory documents
having general applicability and legal effect, most of which are keyed
to and codified in the Code of Federal Regulations, which is published
under 50 titles pursuant to 44 U.S.C. 1510.

The Code of Federal Regulations is sold by the Superintendent of Documents.

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Federal Register / Vol. 90, No. 245 / Monday, December 29, 2025 /
Rules and Regulations

[[Page 60547]]

FEDERAL DEPOSIT INSURANCE CORPORATION

12 CFR Parts 303 and 345

RIN 3064-AG10

Establishment and Relocation of Branches and Offices

AGENCY: Federal Deposit Insurance Corporation.

ACTION: Final rule.

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SUMMARY: The Federal Deposit Insurance Corporation (FDIC) is amending
the processes by which an insured State nonmember bank may establish a
branch or relocate a main office or branch by eliminating certain
filing requirements, reducing processing timelines, and updating public
notice procedures. The FDIC is also making corresponding changes to
procedures applicable to the relocation of an insured branch of a
foreign bank.

DATES: The final rule will be effective February 27, 2026.

FOR FURTHER INFORMATION CONTACT: Sandra Macias, Chief, (202) 898-3642,
<a href="/cdn-cgi/l/email-protection#30435d515359514370565459531e575f46">[email&#160;protected]</a>; Scott Leifer, Senior Review Examiner, (781) 794-5645,
<a href="/cdn-cgi/l/email-protection#90e3fcf5f9f6f5e2d0f6f4f9f3bef7ffe6">[email&#160;protected]</a>, Division of Risk Management Supervision; Tara Oxley,
Associate Director, (202) 898-6722, <a href="/cdn-cgi/l/email-protection#681c0710040d11280e0c010b460f071e">[email&#160;protected]</a>, Division of
Depositor and Consumer Protection; Benjamin Klein, Senior Counsel,
(202) 898-7027, <a href="/cdn-cgi/l/email-protection#ef8d84838a8681af898b868cc1888099">[email&#160;protected]</a>; Julia Dempewolf, Acting Supervisory
Counsel, (202) 898-3645, <a href="/cdn-cgi/l/email-protection#0b616f6e667b6e7c64676d4b6d6f6268256c647d">[email&#160;protected]</a>; Kali Fleming, Attorney,
(571) 637-1896, <a href="/cdn-cgi/l/email-protection#6209040e070f0b0c052204060b014c050d14">[email&#160;protected]</a>, Legal Division; Federal Deposit
Insurance Corporation, 550 17th Street NW, Washington, DC 20429.

SUPPLEMENTARY INFORMATION:

I. Policy Objectives

The objectives of the final rule are to improve the speed and
certainty of, and reduce the regulatory burden associated with, the
filing process for insured State nonmember banks seeking to establish a
branch or relocate a main office or branch and for foreign banks
seeking to relocate an insured branch (collectively, FDIC-supervised
banks). The final rule also makes certain definitional clarifications
to further improve regulatory efficiency and certainty.
As discussed further in sections III.A and III.C of this
Supplementary Information, the FDIC's experience with branch filings
has demonstrated that aspects of the filing process should be modified
or eliminated. For example, through its supervisory programs, the FDIC
has access to much of the information an applicant must provide under
the existing regulation. In addition, branch filings are subject to a
public comment process that is not mandated by statute, causes a
meaningful delay in the amount of time to render a final decision, and
typically does not yield information that materially aids the FDIC's
evaluation of the statutory factors pursuant to which these filings are
considered. The FDIC also has found that branch filings generally
present minimal supervisory concerns, particularly where a branch
changes its physical address but remains in approximately the same
location.
Accordingly, the final rule accelerates expedited processing for
institutions that satisfy certain criteria, removes select
informational requirements, eliminates the public comment process,
extends the expiration date for an approved filing, and excludes from
the scope of filing requirements de minimis changes in address. The
revisions in the final rule are expected to reduce the regulatory
burden imposed on FDIC-supervised banks and the FDIC to complete the
filing process.

II. Background

A. Statutory Requirements

Section 18(d)(1) of the Federal Deposit Insurance Act (FDI Act)
requires the FDIC's prior written consent for an insured State
nonmember bank to establish and operate a new domestic branch or to
move its main office or any domestic branch from one location to
another.\1\ This section also prohibits a foreign bank from moving an
insured branch from one location to another without the FDIC's prior
written consent.
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\1\ 12 U.S.C. 1828(d)(1).
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When considering whether to grant or withhold such consent, the
FDIC must consider the factors listed in section 6 of the FDI Act
(statutory factors). The statutory factors are as follows: (1) the
financial history and condition of the depository institution; (2) the
adequacy of the depository institution's capital structure; (3) the
future earnings prospects of the depository institution; (4) the
general character and fitness of the management of the depository
institution; (5) the risk presented by the depository institution to
the Deposit Insurance Fund; (6) the convenience and needs of the
community to be served by the depository institution; and (7) whether
the depository institution's corporate powers are consistent with the
purposes of the FDI Act. In addition, when evaluating an application to
establish a branch, relocate a branch, or relocate a main office, the
Community Reinvestment Act (CRA) requires the FDIC to take into
consideration the bank's record of meeting the credit needs of its
entire community, including low- and moderate-income neighborhoods,
consistent with the safe and sound operation of the bank.\2\ With
respect to a bank establishing a de novo interstate branch that is not
in the State nonmember bank's home State and in which the bank does not
already have a branch, the Riegle-Neal Interstate Banking and Branching
Efficiency Act of 1994 (IBBEA),\3\ as amended, imposes certain
additional restrictions and requirements codified in sections 18(d) and
44 of the FDI Act. Section 38 of the FDI Act imposes additional
requirements and restrictions on undercapitalized institutions seeking
to establish a branch.
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\2\ 12 U.S.C. 2903(a).
\3\ Public Law 103-328, 108 Stat. 2338 (1994). IBBEA also
imposes restrictions on out-of-State banks opening a new interstate
branch in a host State in which the appropriate Federal banking
agency has determined that the bank is not reasonably helping to
meet the credit needs of the communities served by the bank in the
host State. See also 12 CFR part 369.
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B. FDIC Rules and Regulations

Subpart C of 12 CFR part 303 of the FDIC Rules and Regulations
(subpart C) implements section 18(d) of the FDI Act and sets forth the
filing requirements and procedures for insured State nonmember banks to
establish a branch,

[[Page 60548]]

relocate a branch or main office, and retain an existing branch after
the interstate relocation of a main office. Subpart C requires all
insured State nonmember banks to submit an application to the
appropriate FDIC office prior to establishing a new branch, relocating
a branch or a main office, or retaining a branch after the interstate
relocation of a main office.\4\ All applicants are required to submit
the same information regardless of the type of proposed change and
regardless of the bank's supervisory history, except that, consistent
with section 38 of the FDI Act, undercapitalized institutions must
submit relatively more information. Further, the FDIC retains the right
to request additional information to complete application
processing.\5\
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\4\ 12 CFR 303.42(a).
\5\ See 12 CFR 303.42(b) through (d).
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The application processing timeline depends primarily upon whether
the bank meets the definition of an ``eligible depository
institution.'' \6\ An application submitted by an eligible depository
institution is generally subject to expedited processing, and
applications submitted by all other insured State nonmember banks are
subject to standard processing.\7\ The FDIC Rules and Regulations at 12
CFR part 303 (part 303) define an ``eligible depository institution''
as a depository institution that meets the following criteria: (1)
received an FDIC-assigned composite rating of 1 or 2 under the Uniform
Financial Institutions Rating System (UFIRS) as a result of its most
recent Federal or State examination; (2) received a satisfactory or
better CRA rating from its primary Federal regulator at its most recent
examination, if the depository institution is subject to examination
under 12 CFR part 345; (3) received a compliance rating of 1 or 2 from
its primary Federal regulator at its most recent examination; (4) is
well-capitalized, as defined in the appropriate capital regulation and
guidance of the institution's primary Federal regulator; and (5) is not
subject to a cease and desist order, consent order, prompt corrective
action directive, written agreement, memorandum of understanding, or
other administrative agreement with its primary Federal regulator or
chartering authority.\8\
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\6\ See 12 CFR 303.43.
\7\ 12 CFR 303.2(r).
\8\ 12 CFR 303.2(r).
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Under the current rule, the FDIC retains the right to move an
application from expedited processing to standard processing when
appropriate.\9\ Absent such removal, an application processed under
expedited processing is deemed approved the latest of (1) 21 days after
the FDIC receives a substantially complete application, (2) 5 days
after the public comment period expires, or (3) in the case of an
interstate branch application that represents new entry into a State
where the applicant does not maintain a branch, 5 days after the FDIC
receives the requisite confirmation from the host State that its filing
requirements have been satisfied. The FDIC must provide the applicant
with written notification of the final action when the decision is
rendered.\10\
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\9\ 12 CFR 303.43(a).
\10\ 12 CFR 303.43(b).
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Subpart J of part 303 (subpart J) sets forth the procedures for an
insured branch of a foreign bank seeking the FDIC's consent to move
from one location to another at 12 CFR 303.184. The requirements in
subpart J largely mirror the requirements found in subpart C.

C. Branch Application Statistics

From 2015 to September 30, 2025, the FDIC received 7,043 branch
applications: 5,366 applications to establish a branch, 489 to relocate
a main office, 1,183 to relocate a branch, and 5 applications related
to an insured branch of a foreign bank, for an average of 655
applications received per year. During this period, the FDIC approved
an average of 624 branch applications annually (479 branch
establishment applications, 102 branch relocation applications, and 43
main office relocation applications). On average, 531 applications per
year were approved under expedited processing (85 percent) and 92 were
approved under standard processing (15 percent). From 2015 to September
30, 2025, the average time between the FDIC's receipt of an application
to establish a branch or relocate a branch or main office and the
application being approved, denied, returned to the applicant, or
withdrawn, was 25 days for applications subject to expedited processing
and 70 days for applications subject to standard processing.

D. Public Comments

On July 18, 2025, the FDIC published in the Federal Register a
notice of proposed rulemaking on the Establishment and Relocation of
Branches and Offices (NPR).\11\ The FDIC invited public comment on all
aspects of the NPR. The comment period ended on September 16, 2025. The
FDIC received 8 total comments from 7 different individuals, financial
institutions, industry groups, and consumer organizations.
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\11\ 90 FR 33898 (July 18, 2025).
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Several comments were supportive of the NPR. More specifically,
several commenters supported the FDIC's efforts to shorten filing
processing timelines, simplify certain filing requirements, and
eliminate unnecessary delays. Two of these commenters generally
supported the elimination of public notice and comment requirements,
and one of these commenters supported providing reasonable advance
notice to customers for de minimis changes in address but requested
clarification on what would constitute reasonable advance notice.
Two commenters supported the proposed changes to expedited
processing, with one of these commenters noting that the NPR would
shorten expedited processing timelines and another of these commenters
noting that the NPR would expand the number of eligible institutions.
One commenter requested clarification on what would constitute a
``substantially complete'' filing and guidance on how the FDIC would
determine an institution's eligibility for expedited processing.
One commenter expressed support for the proposed definitions. In
particular, the commenter noted that clarification of terms, including
``branch,'' ``remote service unit,'' and ``de minimis change in
address,'' will help to ensure consistent interpretation and
application. One commenter requested clarification on several
definitions, including examples of what features distinguish a remote
service unit (RSU) from other service models and examples of what
qualifies as an intrastate relocation. The commenter also requested
that the FDIC clarify whether the same streamlined filing requirements
apply to intrastate relocations of main offices.
One commenter requested that the FDIC make an additional change to
12 CFR 303.45(c) to extend the expiration date for an approved filing
from 18 months to 36 months. The commenter reasoned that preparations
for a relocation generally take longer than the 18 months provided by
the current regulation, and a longer expiration period would enable
institutions to seek regulatory approval earlier in the process.
Several commenters opposed aspects of the NPR. Four commenters
asserted that some of the proposed changes may be inconsistent with the
CRA. Specifically, three of these commenters expressed concerns
regarding the proposed elimination of the provisions

[[Page 60549]]

concerning public comments and public hearings, two of these commenters
opposed the elimination of public notice and filing requirements, and
one of these commenters objected to the removal of local newspaper
posting requirements. These commenters argued that, by eliminating
public notice and comment processes, the FDIC would be unable to
fulfill its obligations under the CRA with respect to branch filings.
One commenter opposed the creation of a new definition for de
minimis changes in address. The commenter asserted that the proposed
exclusion of de minimis changes in address could have negative
community impacts.
Three commenters expressed concerns regarding the proposed changes
to expedited processing. Two of these commenters expressed concerns
regarding the proposed shortening of the filing approval period and the
proposed elimination of the FDIC's discretion to remove a filing from
expedited processing. One of these commenters expressed concerns about
making UFIRS 3-rated institutions eligible for expedited processing.
The commenter reasoned that UFIRS 3-rated institutions are
underperforming institutions and should not be permitted to receive
``fast-tracked'' approval under the proposed rule. Another of these
commenters objected to the proposed eligibility of intrastate branch
and main office relocation filings for expedited processing.

III. Description of the Final Rule

A. Rules of General Applicability

1. Public Notice Requirements
Public notice requirements under subpart A of 12 CFR part 303 of
the FDIC Rules and Regulations (subpart A) generally apply to
applications submitted under subpart C.\12\ The NPR proposed to
eliminate the public notice and related public comment period from
subpart C and to make conforming changes to subpart A. Specifically,
the FDIC proposed to strike the provisions in 12 CFR 303.7(a) and (c)
that reference the establishment of a branch or a branch or main office
relocation as being subject to the public notice requirements in
subpart A. In addition, the FDIC proposed to make technical conforming
changes to the CRA regulations in 12 CFR part 345, which cross
reference the public notice provisions of subpart A.
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\12\ 12 CFR 303.44.
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Three commenters generally supported the FDIC's efforts to
streamline subpart C filings, with two of these commenters specifically
supporting the elimination of the public notice and comment period.
Four commenters objected to the elimination of the public notice and
related public comment period.
Some commenters argued that the elimination would violate the CRA.
As explained in the NPR, elimination of the public notice and related
public comment period does not change the FDIC's obligations under the
CRA. The FDIC will continue to take into consideration a bank's CRA
rating.\13\ An institution's ability to qualify for expediting
processing as an eligible depository institution depends on a
satisfactory or better CRA rating. The FDIC does not propose to alter
this element of the definition of eligible depository institution.
Accordingly, eliminating the public notice and comment period does not
impact the FDIC's existing obligations under the CRA.
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\13\ See 12 U.S.C. 2902(3)(C) through (D).
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Furthermore, as noted in the NPR, the FDIC expects that a bank will
provide reasonable advance notice to customers affected by a branch or
main office relocation. One commenter asked the FDIC to clarify the
scope of this expectation and to provide additional details regarding
compliance. As discussed in section III.E of this Supplementary
Information, the FDIC is adopting a regulatory customer notification
obligation and includes additional details regarding compliance below.
The FDIC is adopting the changes to 12 CFR 303.7(a) and (c) as
proposed. The FDIC will continue to comply with its obligations under
the CRA, which does not require public notice or comment for branch
establishments or branch and main office relocations.
2. Hearings and Other Meetings
Applications submitted under subpart C are generally subject to
subpart A's provisions concerning hearings and other meetings.\14\ The
NPR proposed to eliminate branch filings from the hearings and other
meetings provisions in subpart A. Specifically, the FDIC proposed to
strike the provisions in 12 CFR 303.10(a) that reference the
establishment of a branch or a branch or main office relocation because
these public hearing provisions are not statutorily required. The NPR
also explained that public hearings do not materially aid the FDIC's
consideration of the statutory factors when evaluating an application
to establish a branch or to relocate a main office or branch.
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\14\ See generally 12 CFR 303.10.
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Three commenters objected to the elimination of branch filings from
the hearings and other meetings provisions in subpart A. Two of these
commenters urged that the small number of requests for hearings
received and granted by the FDIC is not a justification for eliminating
the right of the public to request hearings. One of these commenters
claimed that the elimination of branch filings from the hearings and
other meetings provisions in subpart A, coupled with the proposed
reduction of filing processing timelines, would provide limited
opportunity for community feedback.
The FDIC is adopting the changes to 12 CFR 303.10(a) as proposed.
The FDI Act does not require the FDIC to hold public hearings for
applications submitted under subpart C, and they have not materially
aided the FDIC's consideration of the statutory factors when evaluating
an application to establish a branch or to relocate a main office or
branch.

B. Definitions

1. Branch
The FDIC is revising the definition of ``branch'' at 12 CFR
303.41(a) to clarify that a branch does not include an RSU to reflect
the FDI Act's statutory exclusion of RSUs from the definition of
``domestic branch.'' \15\ One commenter supported the proposed
definition for the term ``branch'' with this clarification. No
commenters opposed the proposed definition of ``branch.'' The FDIC is
adopting the change as proposed.
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\15\ See 12 U.S.C. 1813(o).
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2. Branch Relocation
The FDIC is establishing a rule of construction within the
definition of ``branch relocation'' at 12 CFR 303.41(b) in the final
rule to provide that a branch relocation does not include a de minimis
change in address. The rule of construction defines a ``de minimis
change in address'' as occurring when a branch exchanges one physical
facility for another within the same approximate location, such as
where (1) a direct line of sight exists between the two facilities, (2)
the facilities share the same parking area, or (3) the facilities are
located on contiguous properties or on the same block.
The FDIC has found that in some situations a change in facility may
be in a bank's best interest for a business, operational, or other
reason outside the control of a bank, such as the same landlord
expanding a shopping center and offering more advantageous lease

[[Page 60550]]

terms for the exchange of one suite in the shopping center for another.
Such changes are often time-sensitive due to external circumstances. In
the FDIC's experience, the exchange of one physical facility for
another that results in such a de minimis change in address is not
appropriately contemplated under the filing requirements of subpart C.
The final rule recognizes the absence of a significant supervisory
purpose to processing filings for such de minimis changes in address by
removing the requirement to submit a filing for such changes.
Although a de minimis change in address is not subject to the
requirements in 12 CFR 303.42 through 303.44, the final rule requires a
bank undertaking a de minimis change in address to provide reasonable
advance written notice to customers of the branch undergoing a de
minimis change in address and the appropriate FDIC office.
Several commenters supported the exclusion of de minimis changes in
address from filing requirements. One commenter noted that the
clarification of key terms like ``de minimis change in address'' will
help ensure consistent interpretation and application of filing
requirements. Another commenter opposed the proposal to exclude de
minimis changes in address from filing requirements. The commenter
reasoned that, by ``fast-tracking'' these filings, the FDIC would be
unable to gather enough information to assess potential community
impacts resulting from de minimis changes in address. For example, the
commenter hypothesized that a de minimis change in address could result
in the closing of a street level branch in favor of a new branch in a
high rise building that is less accessible to customers.
The FDIC is adopting 12 CFR 303.41(b) as proposed. The FDIC has
retained the definition of de minimis change in address and the
corresponding exception from filing requirements because the expected
reductions in regulatory burden and cost for both banks and the FDIC
outweigh the potential risks. The purpose of the exception is to allow
a bank to move to a nearby facility when it is in its best interest for
a business, operational, or other reason outside the control of a bank,
and therefore the FDIC does not expect that FDIC-supervised banks would
utilize the de minimis change in address exception to move to a branch
that would be more difficult for its customers to access.
3. De Novo Interstate Branch
The FDIC is replacing the term ``de novo branch'' with ``de novo
interstate branch'' in subpart C. The term ``de novo branch'' is
defined in section 18(d)(4)(C) of the FDI Act within the more narrow
context of interstate branching. However, the current definition of
``de novo branch'' in subpart C does not account for the interstate
context of the statutory definition. The FDIC is revising 12 CFR
303.41(c) to change the defined term to ``de novo interstate branch''
and updating the definition to indicate that it is a branch of a bank
that is established by the bank as a branch in a State other than the
bank's home State or one in which the bank does not maintain a branch,
and does not become a branch of such bank as a result of (1) the
acquisition by the bank of an insured depository institution or a
branch of an insured depository institution, or (2) the conversion,
merger, or consolidation of any such institution or branch.
The final rule makes conforming changes to account for the new
defined term by replacing ``de novo branch'' with ``de novo interstate
branch'' where it is used in subpart C. Under the final rule, this
defined term is only relevant to ensure that a filing for a de novo
interstate branch will be deemed approved only after relevant host
State filing requirements have been satisfied. The FDIC did not receive
any comments regarding these conforming changes.
4. Remote Service Unit
The FDIC is defining the term ``remote service unit'' in subpart C
at 12 CFR 303.41(g). Section 3(o) of the FDI Act excludes automated
teller machines (ATMs) and RSUs from the definition of ``domestic
branch'' but does not define either term.\16\ The final rule adopts a
definition of RSU that aligns the FDIC Rules and Regulations with the
regulations of the Office of the Comptroller of the Currency (OCC).\17\
The final rule defines ``remote service unit'' as an automated or
unstaffed facility, operated by a customer of a bank with at most
delimited assistance from bank personnel, that conducts banking
functions such as receiving deposits, paying withdrawals, or lending
money.
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\16\ 12 U.S.C. 1813(o).
\17\ See 12 CFR 7.1027.
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An RSU includes an ATM, automated loan machine, automated device
for receiving deposits, personal computer, telephone, other similar
electronic devices, and drop boxes. An RSU may be equipped with a
telephone or tele-video device that allows contact with bank personnel.
The final rule excludes a drop box from the definition of ``branch'' by
including a drop box in the definition of ``remote service unit'' to
avoid the incongruous result where the definition of ``branch''
encompasses a drop box but not an ATM.\18\
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\18\ See also OCC, ``Activities and Operations of National Banks
and Federal Savings Associations,'' 85 FR 83686, 83703 (Dec. 22,
2020).
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The FDIC's definition of an RSU is intended to accommodate most
facilities commonly referred to as ``interactive teller machines''
(ITMs). In 2024, the FDIC issued a Financial Institution Letter stating
that an ITM would qualify for the RSU exclusion, and thus would not be
a branch, under the following circumstances: (1) the ITM is an
automated, unstaffed banking facility owned or operated by, or operated
exclusively for, the bank, which is equipped to enable existing
customers to initiate an interactive session with remotely located bank
personnel; and, (2) to the extent that bank personnel have the ability
to remotely assist the customer with the operation of the ITM to
perform core banking functions, customers must also be able to perform
such transactions without the involvement of bank personnel and must
have the sole discretion to initiate and terminate interactive sessions
with bank personnel.\19\ As part of the proposal, the FDIC sought
comment on whether those criteria should be retained or modified.
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\19\ See FDIC, FIL-53-2024, ``Classification of Interactive
Teller Machines as Domestic Branches or Remote Service Units'' (Aug.
9, 2024), available at <a href="https://www.fdic.gov/news/financial-institution-letters/2024/classification-interactive-teller-machines-domestic">https://www.fdic.gov/news/financial-institution-letters/2024/classification-interactive-teller-machines-domestic</a>.
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One commenter supported the exclusion of RSUs from the definition
of ``branch,'' but suggested that the FDIC provide examples or
frequently asked questions (FAQs) to help banks distinguish RSUs from
other types of staffed service channels. The commenter noted that, as
technology evolves, the line between RSUs and other staffed service
channels may become less clear. The FDIC recognizes that technological
advancements can make it difficult to assess what may distinguish an
RSU from other staffed service channels. The FDIC intends to provide
the industry with flexibility as innovations drive new methods of
serving customers in a rapidly evolving technology landscape, and the
agency may issue additional guidance based on future technological
advancements at a later date.

[[Page 60551]]

C. Filing Procedures

1. General
The NPR proposed eliminating the timing requirement for the
submission of a subpart C filing. Regulations at 12 CFR 303.42(a)
currently require applicants to submit an application to the
appropriate FDIC office on the date the bank's required newspaper
notice is published or within 5 days after the date of the last
required newspaper publication. The FDIC proposed eliminating the
timing requirement because it is tied to the newspaper publication
requirement, which the NPR also eliminated. The FDIC did not receive
comments regarding this proposed change. The FDIC is adopting the
revisions to 12 CFR 303.42(a) as proposed.
2. Content of Filing
The NPR proposed to streamline the information required to be
included with a branch filing under 12 CFR 303.42(b). The FDIC
explained that through its routine examination and supervisory
processes, it maintains sufficient information to consider the
statutory factors without requiring a bank to compile and submit all
the information currently required by subpart C.
The FDIC asked commenters for feedback on whether the proposed
filing content requirements are appropriate to garner sufficient
information for the FDIC to evaluate the statutory factors in the
context of a branch establishment or a branch or main office
relocation. Two commenters supported the proposed streamlining of
filing content, noting that the result would reduce cost and regulatory
burden for applicants. One commenter, however, noted that the sixth
statutory factor under section 18(d)(1) of the FDI Act requires the
FDIC to consider ``the convenience and needs of the community to be
served,'' \20\ and argued that the elimination of public notice,
comment, and hearing procedures would prevent the FDIC from
appropriately considering that factor. One commenter requested
clarification regarding whether the proposed streamlined filing content
requirements apply to intrastate main office relocations.
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\20\ 12 U.S.C. 1828(d)(1) includes a cross-reference to 12
U.S.C. 1816, which outlines the relevant statutory factors that the
FDIC must consider in connection with a branch application.
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The FDIC is adopting the revisions to 12 CFR 303.42(b) as proposed.
The FDIC reiterates that it maintains sufficient information to
consider the statutory factors without requiring a bank to compile and
submit all of the information currently required by 12 CFR 303.42(b).
Moreover, the FDIC is satisfied that it can obtain additional
information necessary to analyze a branch establishment or a branch or
main office relocation in accordance with the statutory factors,
notwithstanding the streamlined content filing requirements in the
final rule. In addition, the FDIC notes that the filing content
requirements under 12 CFR 303.42 apply to all subpart C filings, which
include intrastate main office relocations.

D. Processing

1. Expedited Processing for Eligible Depository Institutions
The NPR proposed to shorten the approval period for expedited
processing for eligible depository institutions and eliminate the
FDIC's discretion to remove a filing from expedited processing in 12
CFR 303.43(a). An application processed under expedited processing is
currently deemed approved on the latest of the following: (1) 21 days
after receipt by the FDIC of a substantially complete application; (2)
5 days after expiration of the comment period described in 12 CFR
303.44; or (3) in the case of an application to establish a de novo
branch in a State that is not the applicant's home State and in which
the applicant does not maintain a branch, 5 days after the FDIC
receives confirmation from the host State that the applicant has both
complied with the filing requirements of the host State and submitted a
copy of the application with the FDIC to the host State bank
supervisor.\21\
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\21\ 12 CFR 303.43(a).
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The NPR proposed that a filing submitted by an eligible depository
institution that is processed under expedited processing would be
deemed approved on the later of the following: (1) the third business
day after receipt by the FDIC of a substantially complete filing; or
(2) in the case of a filing to establish and operate a de novo
interstate branch in a State that is not the applicant's home State and
in which the applicant does not maintain a branch, the fifth day after
the FDIC receives confirmation from the host State that the applicant
has both complied with the filing requirements of the host State and
submitted a copy of the filing with the FDIC to the host State bank
supervisor.\22\ The FDIC proposed to retain the definition of
``eligible depository institution.'' \23\ The final rule reflects the
statutory prohibition against interstate deposit production offices by
clarifying that a filing will not receive expedited processing if the
filer is subject to sanctions under 12 CFR 369.5.\24\
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\22\ Filings involving a de novo interstate branch typically
involve a lengthier approval timeline because they are subject to
additional statutory requirements. See 12 U.S.C. 1828(d)(4)(B).
Specifically, the bank must comply with State filing requirements,
satisfy concentration limits, be adequately capitalized, and be well
capitalized and well managed upon establishment of the branch. See
12 U.S.C. 1831u(b)(1), (3), and (4).
\23\ 12 CFR 303.2(r).
\24\ 12 CFR 369.5 implements 12 U.S.C. 1835a, which provides
that an out-of-State bank may not open a new interstate branch in
the host State unless the bank provides reasonable assurances to the
satisfaction of the FDIC that the bank will reasonably help to meet
the credit needs of the community that the new branch will serve.
Accordingly, expedited processing would be inappropriate for filers
subject to sanctions under 12 CFR 369.5.
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Some commenters expressed concern that the abbreviated approval
period would not provide the FDIC with sufficient time to conduct a
meaningful review of a subpart C filing. As explained in the NPR, the
FDIC determined that qualification as an eligible depository
institution,\25\ in tandem with the relative immateriality of a branch
establishment or relocation, enables the FDIC to conclude that a
proposed branch establishment or relocation satisfies the statutory
factors. The FDIC continues to believe the proposed approval timelines
are appropriate to enhance the speed and certainty of filings and is
therefore adopting those timelines as proposed.
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\25\ 12 CFR 303.43(a) (providing the criteria that an
institution must satisfy to qualify as an ``eligible depository
institution'').
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One commenter encouraged the FDIC to explain how eligibility for
expedited processing would be determined in practice. The FDIC notes
that this would entail confirming that the institution meets the
definition of ``eligible depository institution'' based on existing
supervisory information.
The FDIC currently retains discretion to remove a filing from
expedited processing for any reason described in 12 CFR 303.11(c)(2).
Under the NPR, a subpart C filing from an eligible depository
institution that satisfies the criteria for expedited processing would
be deemed approved in accordance with the statutory factors, and the
FDIC would not have discretion to remove the filing from expedited
processing. The FDIC rarely exercised discretion to remove a subpart C
filing from expedited processing and the proposed change would provide
more certainty to filers who satisfy the expedited processing criteria.
One commenter supported the proposal to eliminate the FDIC's

[[Page 60552]]

discretion to remove a filing from expedited review, noting that the
change would provide greater certainty to filers and reduce delays.
However, this commenter requested clarification on what constitutes a
``substantially complete'' filing, such that the expedited timeline
would begin. Given that branch filings will not be information-
intensive or require iterative information requests, rather than define
``substantially complete'' for the purposes of branch filings, the
final rule deems a filing eligible for expedited processing (other than
a de novo interstate branch) to be approved on the third business day
after the FDIC receives a letter filing that includes the information
set forth in 12 CFR 303.42.
Two commenters expressed concern that the FDIC would be unable to
appropriately exercise its supervisory authority if its discretion to
remove a filing from expedited processing was eliminated. The FDIC
believes that the goal of providing more certainty to filers who
satisfy the criteria for expedited processing supports elimination of
its rarely exercised discretion to remove a filing from expedited
processing. Accordingly, the final rule is adopted as proposed, with
modifications. These modifications include eliminating the reference to
a ``substantially complete'' application and clarifying that a filing
will be processed under expedited processing if the informational
requirements of 12 CFR 303.42 are satisfied. Furthermore, a
modification to 12 CFR 303.43 clarifies that filers subject to
sanctions under 12 CFR 369.5 are ineligible for expedited processing.
2. Expedited Processing for Branch Relocations and Main Office
Relocations
The NPR proposed to revise 12 CFR 303.43(b) to establish a new
category of expedited processing for intrastate branch and main office
relocation filings submitted by a bank that received an FDIC-assigned
composite UFIRS rating of 3 or better as a result of its most recent
Federal or State examination. Expedited processing would apply to
intrastate branch and main office relocation filings by institutions
rated 3 or better under 12 CFR 303.43(b) regardless of whether the
institution satisfied the other criteria in 12 CFR 303.2(r) for an
eligible depository institution.
Section 303.41(b) defines a ``branch relocation'' narrowly as a
move within the same immediate neighborhood of the existing branch that
does not substantially affect the nature of the business of the branch
or the customers of the branch.\26\ This definition also specifies that
moving a branch to a location outside its immediate neighborhood is
considered the closing of an existing branch and the establishment of a
new branch. A main office relocation, while not defined, would not be
expansionary in nature regardless of the distance involved, because the
bank may only have a single main office. For these reasons, a branch or
main office relocation typically presents a limited set of facts and
circumstances for review and consideration of the statutory factors.
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\26\ 12 CFR 303.41(b).
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One commenter recommended the FDIC provide examples of what
qualifies as an intrastate main office relocation. To promote clarity,
the final rule adopts a definition of an ``intrastate main office
relocation'' to be the relocation of a main office of a bank within the
same State such that there is no change in the bank's home State.
One commenter objected to expanding expedited processing for
intrastate branch and main office relocations so as to include banks
that received an FDIC-assigned composite rating of 3 or better under
the UFIRS. The commenter characterized these banks as
``underperforming'' and argued that offering expedited processing to
these banks would disincentivize them from correcting deficiencies. The
final rule retains expedited processing for intrastate branch and main
office relocations because, as discussed above, these relocations are
non-expansionary in nature. The FDIC notes that, under the final rule,
expedited processing for branch establishments, as opposed to
relocations, remains limited to eligible depository institutions.
Other commenters expressed concern that the FDIC would not have
discretion to remove an intrastate branch or main office relocation
filing submitted by a bank with a composite rating of 3 or better from
expedited processing. As discussed above, expedited processing for
these non-expansionary filings by banks with a composite rating of 3 or
better would promote the FDIC's goal of providing more certainty and
clarity regarding processing. The final rule adopts the provisions of
12 CFR 303.43(b) as proposed.
3. FDIC Internal Processes
The NPR noted the FDIC was evaluating and updating its internal
processes to further streamline and expedite the review and
consideration of filings submitted under subpart C. One commenter
recommended that the FDIC confirm that acknowledgement letters will
clearly state when the expedited timeline begins and asked the FDIC to
clarify how eligibility for expedited processing will be determined in
practice. The FDIC intends to take these recommendations into account
as it continues to update its internal processes and related publicly
available materials to reflect the provisions of the final rule and
comments received on the NPR.

E. Public Notice Requirements

The NPR proposed to eliminate the newspaper publication requirement
in 12 CFR 303.44(a) and related provisions. One commenter urged the
FDIC to maintain the newspaper publication requirement. The commenter
reasoned that newspaper media outlets continue to play a role in
educating the public. However, the NPR also noted the FDIC's
expectation that banks seeking to relocate a branch or main office
provide reasonable advance notice to customers and the appropriate FDIC
office. The FDIC believes that this will accomplish the underlying goal
of ensuring that customers are aware of proposed branch and main office
relocations and able to conveniently access banking services.
One commenter requested that the FDIC provide clear guidance on
what constitutes reasonable advanced notice to customers. The FDIC
intends to provide the industry with flexibility in determining how to
best provide reasonable advance notice to customers. An applicant can
choose the best method or methods of communicating a proposed branch or
main office relocation with its affected customer base. Although the
requirements of section 42 of the FDI Act do not apply to relocations,
the type of notice provided in such contexts, such as a notice in a
regular account statement, would necessarily be considered reasonable
advance notice.\27\ The final rule eliminates this provision of 12 CFR
303.44(a) as proposed, and, like the NPR, would continue to require
confirmation of advance customer notice as part of a branch or main
office relocation, and would require such notice in connection with a
de minimis change in address. Specifically, the final rule adopts the
provision proposed in the NPR that would make confirmation of advance
written notice to customers part of the information requirements for a
branch or main office relocation filing. With respect to a de minimis
changes in address, the final rule adopts the provision proposed in the
NPR that

[[Page 60553]]

requires reasonable advance written notice to customers of a branch
undergoing a de minimis change in address.
---------------------------------------------------------------------------

\27\ See 12 U.S.C. 1831r-1 and Joint Policy Statement on Branch
Closings, 84 FR 34844 (June 29, 1999).
---------------------------------------------------------------------------

F. Expiration of Approval

One commenter requested that the FDIC extend the expiration date
for an approved filing under 12 CFR 303.45(c) from 18 months to 36
months. The commenter reasoned that preparations for a relocation
generally take longer than the 18 months provided by the current
regulation, and a longer expiration period would enable banks to seek
regulatory approval earlier in the process. In the final rule, the FDIC
modifies 12 CFR 303.45(c) to extend the expiration date for an approved
filing to 24 months. The final rule adopts this 24-month expiration
period, as it is the FDIC's expectation that 24 months would provide a
reasonable timeframe for banks to consummate a branch establishment or
relocation.

G. Moving an Insured Branch of a Foreign Bank

The NPR proposed making changes to subpart J to correspond to those
proposed for subpart C. The FDIC did not receive comments on its
proposed revisions to subpart J. The final rule adopts the previously
proposed changes to subpart J to correspond with the changes to subpart
C discussed in this Supplementary Information.

IV. Expected Effects

As previously discussed, the objective of the final rule is to
improve the speed and certainty of, and reduce the regulatory burden
associated with, the filing process for insured State nonmember banks
seeking to establish a branch or relocate a main office or branch and
for foreign banks seeking to relocate an insured branch (collectively,
FDIC-supervised banks).
This analysis utilizes all regulations and guidance applicable to
FDIC-supervised banks, as well as information on their financial
condition as of the quarter ending June 30, 2025, as the baseline to
which the effects of the final rule are estimated.
The final rule applies to FDIC-supervised banks seeking to
establish a branch, relocate a main office or branch, or relocate an
insured branch of a foreign bank. As of the quarter ending June 30,
2025, the FDIC supervises 2,776 State nonmember banks or insured
branches of foreign banks which collectively operate 25,250 branches
and main offices.\28\ In the period from January 1, 2015 to September
30, 2025, the FDIC received 7,043 branch applications: 5,366
applications to establish a branch, 489 to relocate a main office,
1,183 to relocate a branch, and 5 applications relating to an insured
branch of a foreign bank, for an average of 655 applications received
per year.\29\ Based on this historical average, the FDIC estimates that
the final rule will affect approximately 700 branch filings per year on
average.\30\
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\28\ FDIC Call Report and Structure Data, June 30, 2025.
\29\ FDIC supervisory data. 7,043 applications/10.75 years = 655
applications per year (rounded to the nearest integer).
\30\ Although the final rule will result in a decrease in the
burden for a branch application, the FDIC does not believe the final
rule will likely result in a material increase in the number of
branch applications. To the extent that the final rule results in a
greater number of branch applications, the historical average of 655
branch applications per year may be an undercount of the number of
applications affected by the final rule. The FDIC believes that
using 700 as the number of branch applications per year is a
conservative estimate for purposes of estimating the effects of the
final rule.
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The final rule reduces the regulatory requirements for branch
filings. Specifically, it only requires FDIC-supervised banks that seek
to make a de minimis change in the address of a branch to notify the
FDIC and customers of the branch undergoing such a change,\31\ rather
than submit a filing. For all other branch filings, the final rule
reduces filing content requirements from six to four items. The final
rule also greatly reduces public notice requirements for filings and
extends the expiration date for an approved filing from 18 months to 24
months.
---------------------------------------------------------------------------

\31\ Final 12 CFR 303.41(b).
---------------------------------------------------------------------------

For FDIC-supervised banks that seek a de minimis change in address,
the FDIC estimates that the final rule will eliminate the entire
estimated five-hour burden of preparing and submitting a branch
filing.\32\ At a conservative estimate of $200 per hour per
application,\33\ the resulting savings will be $1,000 per de minimis
change in address. For the purpose of estimating the number of de
minimis changes in address per year, the FDIC assumes that the
distances of such relocations will be less than 0.1 miles.\34\ Of the
7,043 branch applications used in this analysis, 325 involved a
relocation distance of less than 0.1 miles. As such, the FDIC estimates
that approximately 30 branch applications per year will involve a de
minimis change in address, resulting in an estimated aggregate benefit
of $30,000 annually.\35\
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\32\ Based on Paperwork Reduction Act hourly burden estimates
for branch applications by State nonmember banks under Information
Collection Request OMB No. 3064-0070 (See <a href="https://www.reginfo.gov/public/do/PRAICList?ref_nbr=202301-3064-006">https://www.reginfo.gov/public/do/PRAICList?ref_nbr=202301-3064-006</a>). Hourly burden
estimates for branch applications by foreign banks under Information
Collection Request OMB No. 3064-0114 are not used for this analysis
because only 5 out of 7,043 historical branch applications were
submitted by a foreign bank.
\33\ In recent information collection requests, the FDIC
estimated that the fully loaded costs of preparing and submitting
branch applications are approximately $147 per hour for State
nonmember banks and $135 per hour for foreign banks. See <a href="https://www.reginfo.gov/public/do/PRAViewICR?ref_nbr=202312-3064-001">https://www.reginfo.gov/public/do/PRAViewICR?ref_nbr=202312-3064-001</a>,
respectively.
\34\ De minimis changes in address will only involve relocations
``within the same approximate location,'' as per final 12 CFR
303.41(b)(1)(i).
\35\ $30,000 savings annually = $1,000 per relocation
application x 30 applications per year; and 30 branch applications
per year = 325 applications/10.75 years (rounded to the nearest
integer).
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For the remaining 670 branch applications that do not involve de
minimis changes in address, the final rule will reduce the regulatory
requirements for preparing and submitting branch filings. Specifically,
it reduces filing content requirements from six to four items. The
final rule also eliminates public notice requirements for these
filings. The FDIC estimates these changes will benefit filers by
reducing the time spent preparing and submitting branch filings by
approximately two hours, on average.\36\ At a conservative hourly
burden estimate of $200 per hour,\37\ the final rule will result in
aggregate cost savings of approximately $268,000 per year.\38\
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\36\ See section VI.A of this Supplementary Information.
\37\ In recent information collection requests, the FDIC
estimated that the fully loaded costs of preparing and submitting
branch applications are approximately $147 per hour for State
nonmember banks and $135 per hour for foreign banks. See <a href="https://www.reginfo.gov/public/do/PRAViewICR?ref_nbr=202312-3064-001">https://www.reginfo.gov/public/do/PRAViewICR?ref_nbr=202312-3064-001</a>,
respectively.
\38\ $268,000 cost savings per year = 670 branch applications
per year * 2 hours saved per application * $200 per hour saved.
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Summing up the quantified effects for the approximately 700
affected branch applications, the FDIC estimates that the final rule
will result in approximately $298,000 in savings per year from the
reduction of labor costs associated with preparing and submitting
branch filings. As previously discussed, the final rule will generally
reduce the time it takes for the FDIC to process a filing. In
particular, the final rule will establish a deadline of three days for
approval after receipt of a letter filing that includes the information
set forth in 12 CFR 303.42; a reduction of between 18 days and 28 days,
respectively.\39\ Further, the final

[[Page 60554]]

rule will expand expedited processing for intrastate branch filings and
main office relocations to a bank that received an FDIC-assigned
composite rating of 3 or better under the UFIRS as a result of its most
recent Federal or State examination. The final rule also extends the
expiration date of an approved filing from 18 months to 24 months.
Finally, the final rule will eliminate the FDIC's discretion to remove
a filing from expedited processing. As noted above, a filing to
establish a branch, or to relocate a branch or main office, subject to
expedited processing takes an average of 25 days to process.\40\
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\39\ As noted above, intrastate branch filings are deemed
approved under expedited processing on the latest of: the 21st day
after receipt by the FDIC of a substantially complete filing, or the
fifth day after expiration of the comment period described in 12 CFR
303.44, which at most could be 23 days (consisting of 8 days to meet
the newspaper publication requirement plus a 15-day comment period),
and 5 + 23 = 28. The final rule's deadline of three days (down from
21) for intrastate branch filings represents a decrease of 18 days
from baseline, and the elimination of the public notice requirements
and associated five-day processing period represents a decrease of
28 days from baseline.
\40\ Based on branch applications received from 2015 to
September 30, 2025.
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The final rule's reduction in processing times for certain branch
filings will have benefits for eligible depository institutions. Faster
processing times will reduce uncertainty and costs associated with
downtime while waiting for a decision from the FDIC. FDIC-supervised
banks will be able to more swiftly respond to changes in local
conditions that affect their branch network, such as a change in
landlord for a bank's current location or a time-sensitive opportunity
to relocate to a more desirable location. The FDIC does not have the
information necessary to further quantify the benefits associated with
the reduction in the time it takes for the FDIC to process filings, but
believes that processing time reductions will improve productivity and
competitiveness for applicants.
As previously discussed, the final rule clarifies certain
definitions. Specifically, the final rule clarifies that the term
``branch'' does not include RSUs or drop boxes. In practice, the FDIC
has not considered such locations branches. Finally, the final rule
clarifies the definition of ``de novo interstate branch.'' The FDIC
does not have the information necessary to quantify the benefits to
prospective filers associated with these aspects of the final rule.
However, the FDIC believes that these clarifications will benefit
filers and the industry by reducing uncertainty.
As previously discussed, the FDIC does not believe that the final
rule will pose any material direct costs to filers. The FDIC
acknowledges that there may be ancillary costs to the public. For
example, the elimination of the public notice and comment requirements
for branch establishments and branch and main office relocations may
have impacts that are difficult to quantify.\41\ The final rule
eliminates any potential customer confusion by requiring confirmation
of advance written notice to customers of a relocating branch or office
as part of the filing information requirements. The FDIC does not have
the data necessary to quantify the effect of the elimination of the
public notice and comment requirements. However, given the limited
historical number of public comments received in response to subpart C
applications, and the advance notice provision, the FDIC does not
believe this effect to be material. Moreover, the final rule does not
affect the responsibility of FDIC-supervised banks to help meet the
credit needs of the communities in which they are headquartered or
operate branches. Therefore, the FDIC believes that the final rule will
pose no substantiative indirect costs to customers.
---------------------------------------------------------------------------

\41\ See final 12 CFR 303.44.
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Finally, the FDIC believes that the final rule can provide indirect
benefits to customers. To the extent that the shorter processing
periods, reduced filing content requirements, and clarifications within
the final rule reduce the time it takes banks to establish new branches
and begin providing banking products and services at applicable
locations, customers may benefit. The FDIC does not have the necessary
information to quantify such benefits.

V. Other Alternatives Considered

The FDIC considered implementing internal process changes related
to the review of subpart C filings that would result in abbreviated
review periods without implementing a regulatory change. However, the
FDIC determined that improving the speed, certainty, and regulatory
burden associated with the processes for subpart C filings would be
better achieved through a formal notice and comment rulemaking that
considered feedback from all stakeholders.\42\ As discussed above, the
FDIC also expects to implement changes to its internal processes and
related publicly available materials addressing subpart C filings
consistent with the amendments set forth in this final rule to further
support these objectives.
---------------------------------------------------------------------------

\42\ See sections II and III of this Supplementary Information
for the FDIC's responses to comments.
---------------------------------------------------------------------------

VI. Regulatory Analysis

A. Administrative Procedure Act

The Administrative Procedure Act requires an agency to publish a
substantive rule not less than 30 days before its effective date,
except when an agency otherwise publishes in the final rule good cause
for providing for an earlier effective date.\43\ Accordingly, the final
rule is effective as of the date set forth above in this document under
the DATES heading.
---------------------------------------------------------------------------

\43\ 5 U.S.C. 553(d).
---------------------------------------------------------------------------

B. The Paperwork Reduction Act

Certain provisions of the final rule contain ``collections of
information'' within the meaning of the Paperwork Reduction Act (PRA)
of 1995.\44\ In accordance with the requirements of the PRA, the FDIC
may not conduct or sponsor, and the respondent is not required to
respond to, an information collection unless it displays a currently
valid Office of Budget and Management (OMB) control number. The
information collections contained in the final rule have been submitted
to OMB for review and approval by the FDIC under section 3507(d) of the
PRA \45\ and 5 CFR 1320.11 of OMB's implementing regulations.\46\ The
FDIC proposes to extend for three years, with revision, the following
information collections:
---------------------------------------------------------------------------

\44\ 44 U.S.C. 3501.
\45\ 44 U.S.C. 3507(d).
\46\ 5 CFR 1320.
---------------------------------------------------------------------------

Title of Information Collection: Application for a Bank to
Establish a Branch or Move its Main Office or Branch.
OMB Control Number: 3064-0070.
Respondents: Insured State nonmember banks.
Current Actions: The final rule revises the currently-approved
information collection as follows:
Section 303.42, Application for a bank to establish a branch or
move its main office or Branch. Pursuant to sections 13(f), 13(k),
18(d) and 44 of the FDI Act, insured State nonmember banks must obtain
FDIC approval before establishing a branch, relocating a branch or main
office, or retaining existing branches after the interstate relocation
of the main office. This information collection represents the
occasional reporting requirement associated with those banks'
applications for FDIC approval. The final rule will reduce reporting
burden by eliminating the requirement that the applicant provide
information regarding insider involvement in the proposed branch
office, comments on changes in services offered or the effect the
proposal may have on the applicant's compliance with the CRA, and a
copy of and information related to the required newspaper publication.
As such, the FDIC estimates average time

[[Page 60555]]

per response will be reduced from 5 hours to 3 hours. However, to
account for additional applications that may result from changes in the
final rule as well as historical data since the most recent PRA
renewal, the FDIC also estimates an increase in respondents from 436 to
700. Thus, the total estimated annual burden for OMB No. 3064-0070 is
2,100 hours, a decrease of 80 hours from the most recent PRA
renewal.\47\
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\47\ FDIC Application for a bank to establish a branch or move
its main office or branch, OMB No. 3064-0070, available at <a href="https://www.reginfo.gov/public/do/PRAViewICR?ref_nbr=202301-3064-006">https://www.reginfo.gov/public/do/PRAViewICR?ref_nbr=202301-3064-006</a>.
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Title of Information Collection: Foreign Banks.
OMB Control Number: 3064-0114.
Respondents: Insured branches of foreign banks.
Current Actions: The final rule revises the currently-approved
information collection as follows:
The FDIC is removing the information collection ``Section 303.184,
Moving a Branch'' from the ICR under the OMB Control No. 3064-0114 and
including it in the ICR under OMB Control No. 3064-0070. Under 12 CFR
303.183, insured branches of foreign banks seeking approval from the
FDIC to move locations complete a substantially similar application as
domestic banks seeking FDIC approval to move locations. To ensure
consistent burden estimates between similar respondents completing
similar applications, the FDIC will include burden estimates from the
information collection ``Section 303.184, Moving a Branch'' in the
information collection ``Application for a bank to establish a branch
or move its main office or Branch.'' Combining these two information
collections does not affect the FDIC estimates of respondents for the
information collection under OMB Control No. 3064-0070 because
historically the FDIC rarely receives applications to move insured
branches from foreign banks. In the most recent PRA renewal for OMB
Control No. 3064-0114, the FDIC used a placeholder of a single
respondent to maintain the information collection.

C. Congressional Review Act

Pursuant to the Congressional Review Act, the OMB makes a
determination regarding whether a final rule constitutes a ``major
rule,'' defined in the Congressional Review Act as any rule that the
Administrator of the Office of Information and Regulatory Affairs of
the OMB finds has resulted in or is likely to result in (A) an annual
effect on the economy of $100,000,000 or more; (B) a major increase in
costs or prices for consumers, individual industries, Federal, State,
or local government agencies or geographic regions; or (C) significant
adverse effects on competition, employment, investment, productivity,
innovation, or on the ability of United States-based enterprises to
compete with foreign-based enterprises in domestic and export markets.
If OMB determines a rule is ``major,'' the Congressional Review Act
generally provides that the rule may not take effect until at least 60
days following its publication. If a rule is not a ``major rule,'' it
may take effect after the Federal agency submits to Congress a report
required under the Congressional Review Act.
OMB has determined the final rule is not a major rule under the
Congressional Review Act. Accordingly, the FDIC will submit the report
to Congress required by the Congressional Review Act and the final rule
will become effective as set forth under the DATES heading of this
document.

D. The Regulatory Flexibility Act

The Regulatory Flexibility Act (RFA) generally requires an agency,
in connection with a final rule, to prepare and make available for
public comment a final regulatory flexibility analysis that describes
the impact of the final rule on small entities.\48\ However, a final
regulatory flexibility analysis is not required if the agency certifies
that the final rule will not have a significant economic impact on a
substantial number of small entities. The Small Business Administration
(SBA) has defined ``small entities'' to include banking organizations
with total assets of less than or equal to $850 million.\49\ Generally,
the FDIC considers a significant economic impact to be a quantified
effect in excess of 5 percent of total annual salaries and benefits or
2.5 percent of total noninterest expenses. The FDIC believes that
effects in excess of one or more of these thresholds typically
represent significant economic impacts for FDIC-supervised banks.
---------------------------------------------------------------------------

\48\ 5 U.S.C. 601 et seq.
\49\ The SBA defines a small banking organization as having $850
million or less in assets, where an organization's ``assets are
determined by averaging the assets reported on its four quarterly
financial statements for the preceding year.'' See 13 CFR 121.201
(as amended by 87 FR 69118, effective Dec. 19, 2022). In its
determination, the ``SBA counts the receipts, employees, or other
measure of size of the concern whose size is at issue and all of its
domestic and foreign affiliates.'' See 13 CFR 121.103. Following
these regulations, the FDIC uses an insured depository institution's
affiliated and acquired assets, averaged over the preceding four
quarters, to determine whether the insured depository institution is
``small'' for the purposes of RFA.
---------------------------------------------------------------------------

The final rule applies to certain FDIC-supervised banks seeking to
establish a branch, relocate a main office or branch, or relocate an
insured branch of a foreign bank. As of the quarter ending June 30,
2025, the FDIC supervised 2,776 banks, of which 2,055 were considered
``small'' for the purposes of RFA.\50\ These 2,055 small banks
collectively operated 8,204 branches and main offices.\51\ In the
period from January 1, 2015 to September 30, 2025,\52\ small banks
submitted 2,145 applications to establish a branch, 368 applications to
relocate a branch, and 308 applications to relocate a main office, for
a total of 2,821 applications and an average of 262 applications per
year.\53\ Based on this historical average, the FDIC estimates the
final rule will affect approximately 300 branch applications from small
banks per year on average.\54\
---------------------------------------------------------------------------

\50\ FDIC Call Report data, June 30, 2025.
\51\ FDIC Call Report and Structure Data, June 30, 2025.
\52\ To estimate whether a bank was ``small'' for purposes of
the RFA during the quarter ending September 30, 2025, the FDIC
relied on banks' status as of June 30, 2025, because bank holding
company regulatory reports for the quarter ending September 30,
2025, were not available at the time this analysis was conducted.
\53\ FDIC supervisory and Call Report data. For the purpose of
these application counts, an FDIC-supervised bank is considered
``small'' for purposes of the RFA if it is identified in the FDIC's
data as ``small'' as of the quarter-end in which it sent a relevant
application to the FDIC, with the exception for the quarter ending
September 30, 2025, described in the previous footnote. Note that no
insured branches of foreign banks are considered ``small'' for
purposes of the RFA. 2,821 applications/10.75 years = 262
applications per year (when rounded to the nearest integer).
\54\ Although the final rule will result in a decrease in the
burden imposed by a branch application, the FDIC does not believe
the final rule will likely result in a material increase in the
number of branch filings. To the extent that the final rule results
in a greater number of branch filings from small banks, the
historical average of 262 branch applications per year may be an
undercount of the number of applications affected by the final rule.
The FDIC believes that using 300 as the number of branch
applications from small banks per year is a conservative estimate
for purposes of the RFA.
---------------------------------------------------------------------------

In general, the final rule will reduce the regulatory requirements
for establishing or relocating a branch. Specifically, it will
eliminate filing requirements for de minimis changes in address and
reduce filing content requirements from six to four items for all other
filings. The final rule will also eliminate or greatly reduce public
notice requirements for all branch establishments and relocations, and
extend the expiration date of an

[[Page 60556]]

approved filing from 18 months to 24 months.\55\
---------------------------------------------------------------------------

\55\ A bank completing a de minimis change in address will still
be required to provide reasonable advance notice to customers of the
branch per final 12 CFR 303.41(b).
---------------------------------------------------------------------------

As discussed in the Expected Effects section of this Supplementary
Information, the FDIC estimates that there will be upwards of 30 de
minimis changes in address per year. Based on supervisory and Call
Report data, the FDIC estimates that upwards of 10 de minimis changes
in address will involve small banks. The final rule will reduce the
burden for these de minimis changes in address by five hours, or
$1,000, per relocation.\56\ Based on Call Report data for the quarter
ending June 30, 2025, a cost savings of $1,000 is in excess of 5
percent of total annual salaries and benefits or 2.5 percent of total
noninterest expenses for one small bank.
---------------------------------------------------------------------------

\56\ Based on a conservative hourly burden estimate of $200 per
hour. In recent information collection requests, the FDIC estimated
that the fully loaded costs of preparing and submitting branch
applications are approximately $147 per hour for State nonmember
banks and $135 per hour for foreign banks. See <a href="https://www.reginfo.gov/public/do/PRAViewICR?ref_nbr=202301-3064-006">https://www.reginfo.gov/public/do/PRAViewICR?ref_nbr=202301-3064-006</a> and
<a href="https://www.reginfo.gov/public/do/PRAViewICR?ref_nbr=202312/-3064-/001">https://www.reginfo.gov/public/do/PRAViewICR?ref_nbr=202312/-3064-/001</a>, respectively.
---------------------------------------------------------------------------

For the remaining 290 branch applications from small banks that do
not involve de minimis changes in address, the FDIC estimates the final
rule will benefit small filers by reducing the time spent preparing and
submitting branch filings by approximately two hours, on average, or
$400 per application.\57\ Based on Call Report data for the quarter
ending June 30, 2025, a cost savings of $400 is in excess of 5 percent
of total annual salaries and benefits or 2.5 percent of total
noninterest expenses for one small bank (the same small bank previously
identified).
---------------------------------------------------------------------------

\57\ Details of the time to prepare and submit branch
applications are provided in section VI.A., Paperwork Reduction Act,
of this Supplementary Information.
---------------------------------------------------------------------------

Based on the quantified effects of the final rule described above,
the FDIC estimates that the rule will not significantly affect more
than one small bank.
As discussed in the Expected Effects section of this Supplementary
Information, the final rule will also reduce the time it takes for the
FDIC to process a filing. In particular, the final rule will establish
a deadline of three days for approval after receipt of a letter filing
that includes the information set forth in 12 CFR 303.42; a reduction
of between 18 days and 28 days, respectively.\58\ Further, the final
rule will expand expedited processing for intrastate branch filings and
main office relocations to a bank that received an FDIC-assigned
composite rating of 3 or better under the UFIRS as a result of its most
recent Federal or State examination. Finally, the final rule will
eliminate the FDIC's discretion to remove a filing from expedited
processing. As mentioned above, a filing to establish a branch, or to
relocate a branch or main office, subject to expedited processing takes
an average of 25 days to process.\59\
---------------------------------------------------------------------------

\58\ As noted above, intrastate branch filings are deemed
approved under expedited processing on the latest of: the 21st day
after receipt by the FDIC of a substantially complete filing, or the
fifth day after expiration of the comment period described in 12 CFR
303.44, which at most could be 23 days (consisting of 8 days to meet
the newspaper publication requirement plus a 15-day comment period),
and 5 + 23 = 28. The final rule's deadline of three days (down from
21) for intrastate branch filings represents a decrease of 18 days
from baseline, and the elimination of the public notice requirements
and associated five-day processing period represents a decrease of
28 days from baseline.
\59\ Based on applications received from January 1, 2015, to
September 30, 2025.
---------------------------------------------------------------------------

The final rule's reduction in processing times for certain branch
filings will have benefits for eligible small depository institutions.
Faster processing times will reduce the period of uncertainty for
filers and reduce costs associated with downtime while waiting for a
decision from the FDIC. Banks will be able to more swiftly respond to
changes in local conditions, such as a change in landlord for a bank's
current location or a time-sensitive opportunity to relocate to a more
desirable location. The FDIC does not have the information necessary to
further quantify the benefit associated with the reduction in the time
it takes for the FDIC to process filings, but believes that processing
time reductions will improve productivity and competitiveness for
filers.
As mentioned above, the final rule extends the expiration date of
an approved filing from 18 months to 24 months, lengthening the period
of time an affected bank has to complete a branch relocation or
establish a branch. This aspect of the final rule will benefit small
applicants by providing greater flexibility for the planning and
execution of the establishment or relocation of a branch or office. The
FDIC does not have the information necessary to identify which small,
FDIC-supervised institutions will utilize the additional time in future
periods.
As previously discussed, the final rule clarifies certain
definitions. Specifically, the final rule clarifies that ``branch''
does not include RSUs, drop boxes, or financial education programs that
include the provision of bank products and services. In practice the
FDIC has not considered such locations branches. Finally, the final
rule clarifies the definition of ``de novo interstate branch'' for the
purposes of the filings requirements for establishing a branch,
relocating a main office or branch, or relocating an insured branch of
a foreign bank. The FDIC does not have the information necessary to
quantify the benefits to prospective filers associated with these
aspects of the final rule. However, the FDIC believes that these
clarifications will benefit filers and the industry by reducing
uncertainty.
The unquantified benefits discussed above are in addition to the
quantified benefits. Conservatively, if each branch filing affected by
the final rule were submitted by a distinct small bank, then the final
rule would affect 300 small banks. The FDIC does not believe that the
unquantified benefits would likely result in a significant effect for
the vast majority of the 300 affected banks.
Finally, the FDIC concludes that the final rule does not pose any
material direct costs to filers.
In light of the foregoing, the FDIC certifies that the final rule
does not have a significant economic impact on a substantial number of
small entities. Accordingly, a final regulatory flexibility analysis is
not required.

E. Plain Language

Section 722 of the Gramm-Leach-Bliley Act requires Federal banking
agencies to use plain language in all proposed and final rules
published after January 1, 2000. The FDIC invited comments regarding
the use of plain language but did not receive any relevant comments.
The FDIC sought to clearly state the provisions of the rule in a simple
and straightforward manner.

F. Riegle Community Development and Regulatory Improvement Act of 1994

Section 302 of the Riegle Community Development and Regulatory
Improvement Act of 1994 (RCDRIA) requires that the Federal banking
agencies, including the FDIC, in determining the effective date and
administrative compliance requirements of new regulations that impose
additional reporting, disclosure, or other requirements on insured
depository institutions (IDIs), consider, consistent with principles of
safety and soundness and the public interest, any administrative
burdens that such regulations would place on depository institutions,
including small depository institutions, and customers of depository
institutions, as well as the

[[Page 60557]]

benefit of such regulations. New regulations and amendments to
regulations prescribed by a Federal banking agency that impose
additional reporting, disclosure, or other new requirements on IDI
shall take effect on the first day of a calendar quarter that begins on
or after the date on which the regulations are published in final form,
with certain exceptions, including for good cause.
The final rule does not impose additional reporting, disclosure, or
other new requirements on IDIs. As such, the provisions of RCDRIA do
not apply to the FDIC's determination of the final rule's effective
date.

G. Executive Orders 12866 and 13563

Under Executive Order 12866, as affirmed and supplemented by
Executive Order 13563, ``significant regulatory actions'' are subject
to review by OMB. The FDIC has submitted this regulatory action to OMB
for review. OMB has determined the rule is not a significant regulatory
action as defined by section 3(f) of Executive Order 12866. For more
information on the analysis conducted in connection with Executive
Order 12866, refer to other sections of this Supplementary Information.

H. Executive Order 14192

Executive Order 14192 directs agencies, unless prohibited by law,
to identify at least 10 existing regulations to be repealed when the
agency publicly proposes for notice and comment or otherwise
promulgates a new regulation with total costs greater than zero.
Executive Order 14192 further requires that new incremental costs
associated with new regulations shall, to the extent permitted by law,
be offset by the elimination of existing costs associated with at least
10 prior regulations. An Executive Order 14192 deregulatory action is
an action that has been finalized and has total costs less than zero.
This final rule is considered an Executive Order 14192 deregulatory
action.

List of Subjects

12 CFR Part 303

Administrative practice and procedure, Bank deposit insurance,
Banks, banking, Reporting and recordkeeping requirements, Savings
associations.

12 CFR Part 345

Banks, banking, Community development, Credit, Investments,
Reporting and recordkeeping requirements.

Authority and Issuance

For the reasons stated in the preamble, the Board of Directors of
the Federal Deposit Insurance Corporation amends 12 CFR parts 303 and
345 as follows:

PART 303--FILING PROCEDURES

0
1. The authority citation for part 303 continues to read as follows:

Authority: 12 U.S.C. 378, 1464, 1813, 1815, 1817, 1818, 1819(a)
(Seventh and Tenth), 1820, 1823, 1828, 1829, 1831a, 1831e, 1831o,
1831p-1, 1831w, 1835a, 1843(l), 3104, 3105, 3108, 3207, 5414, 5415,
and 15 U.S.C. 1601-1607.

0
2. Amend Sec. 303.7 by revising paragraphs (a) and (c)(1)(i) to read
as follows:

Sec. 303.7 Public notice requirements.

(a) General. The public must be provided with prior notice of a
filing to engage in a merger transaction, initiate a change of control
transaction, or request deposit insurance. The public has the right to
comment on, or to protest, these types of proposed transactions during
the relevant comment period. In order to fully apprise the public of
this right, an applicant shall publish a public notice of its filing in
a newspaper of general circulation. For specific publication
requirements, consult subparts B (Deposit Insurance), D (Merger
Transactions), and E (Change in Bank Control) of this part.
* * * * *
(c) * * *
(1) * * *
(i) In the case of an application for deposit insurance for a de
novo depository institution, include the names of all organizers or
incorporators. In the case of a merger application, include the names
of all parties to the transaction. In the case of a notice of
acquisition of control, include the name(s) of the acquiring parties.
* * * * *

Sec. 303.10 [Amended]

0
3. Amend Sec. 303.10 by removing paragraphs (a)(2) and (3) and
redesignating paragraphs (a)(4) through (6) as paragraphs (a)(2)
through (4), respectively.

Sec. 303.40 [Amended]

0
4. Amend Sec. 303.40 by:
0
a. In paragraph (a), removing the word ``application'' and adding, in
its place, the word ``filing''; and
0
b. In paragraph (c), removing the word ``Applications'' and adding, in
its place, the word ``Filings''.

0
5. Amend Sec. 303.41 by revising paragraph (a) introductory text,
revising and republishing paragraph (b), revising paragraph (c)
introductory text, and adding paragraphs (f) and (g) to read as
follows:

Sec. 303.41 Definitions.

* * * * *
(a) Branch, except as provided in this paragraph (a), includes any
branch bank, branch office, additional office, or any branch place of
business located in any State of the United States or in any territory
of the United States, Puerto Rico, Guam, American Samoa, the Trust
Territory of the Pacific Islands, the Virgin Islands, and the Northern
Mariana Islands at which deposits are received or checks paid or money
lent. A branch does not include a remote service unit or a facility
described in Sec. 303.45. The term branch also includes the following:
* * * * *
(b) Branch relocation means a move within the same immediate
neighborhood of the existing branch that does not substantially affect
the nature of the business of the branch or the customers of the
branch. Moving a branch to a location outside its immediate
neighborhood is considered the closing of an existing branch and the
establishment of a new branch. Closing of a branch is covered in the
FDIC Statement of Policy Concerning Branch Closing Notices and
Policies. 1 FDIC Law, Regulations, Related Acts 5391; see Sec.
309.4(a) and (b) of this chapter for availability.
(1) Rule of construction. For the purposes of this subpart, a de
minimis change in address is neither a branch establishment nor a
branch relocation.
(i) A de minimis change in address occurs when a branch exchanges
one physical facility for another within the same approximate location,
such as where:
(A) A direct line of sight exists between the two facilities;
(B) The facilities share the same parking area; or
(C) The facilities are located on contiguous properties or on the
same block.
(ii) Notice required. Notwithstanding the inapplicability of
Sec. Sec. 303.42 through 303.44, an insured State nonmember bank is
required to provide reasonable advance written notice to customers of
the branch undergoing a de minimis address change and advance notice to
the appropriate FDIC office.
(2) [Reserved]
(c) De novo interstate branch means a branch of a bank that is
established by the bank as a branch in a State other

[[Page 60558]]

than the bank's home State or one in which the bank does not maintain a
branch, and does not become a branch of such bank as a result of:
* * * * *
(f) Intrastate main office relocation means the relocation of a
main office of a bank within the same State such that there is no
change in the bank's home State.
(g) Remote service unit (RSU) is an automated or unstaffed
facility, operated by a customer of a bank with at most delimited
assistance from bank personnel, that conducts banking functions such as
receiving deposits, paying withdrawals, or lending money. An RSU
includes an automated teller machine, automated loan machine, automated
device for receiving deposits, personal computer, telephone, other
similar electronic devices, and drop boxes. An RSU may be equipped with
a telephone or tele-video device that allows contact with bank
personnel.

0
6. Amend Sec. 303.42 by revising paragraph (a), revising and
republishing paragraph (b), and revising paragraph (c) to read as
follows:

Sec. 303.42 Filing procedures.

(a) General. Filings shall be submitted to the appropriate FDIC
office.
(b) Content of filing. A complete letter filing shall include the
following information:
(1) A statement of intent to establish a branch, or to relocate the
main office or a branch;
(2) The exact location of the proposed site including the street
address. With regard to messenger services, specify the geographic area
in which the services will be available. With regard to a mobile
branch, specify the community or communities in which the vehicle will
operate and the manner in which it will be used;
(3) When a filing is submitted to relocate the main office of the
bank from one State to another, a statement of the bank's intent
regarding retention of branches in the State where the main office
exists prior to relocation; and
(4) With respect to a branch relocation or a main office
relocation, confirmation that advance written notice was provided to
customers of the branch or main office being relocated.
(c) Undercapitalized institutions. Filings to establish a branch by
banks subject to section 38 of the FDI Act (12 U.S.C. 1831o) also
should provide the information required by Sec. 303.204. Filings
pursuant to sections 38 and 18(d) of the FDI Act (12 U.S.C. 1831o and
1828(d)) may be filed concurrently or as a single filing.
* * * * *

0
7. Revise Sec. 303.43 to read as follows:

Sec. 303.43 Processing.

(a) Expedited processing for branch establishments. Filings to
establish a branch by an eligible depository institution as defined in
Sec. 303.2(r) will be acknowledged in writing by the FDIC and will
receive expedited processing if the depository institution is not
currently subject to sanctions under Sec. 369.5 of this chapter. A
filing processed under expedited processing will be deemed approved on
the later of the following:
(1) The third business day after receipt by the FDIC of a letter
filing that includes the information set forth in Sec. 303.42; or
(2) In the case of a filing to establish and operate a de novo
interstate branch, the 5th day after the FDIC receives confirmation
from the host State that the bank has both complied with the filing
requirements of the host State and submitted a copy of its filing with
the FDIC to the host State bank supervisor.
(b) Expedited processing for branch relocations and main office
relocations. Filings for intrastate branch relocations or intrastate
main office relocations will be acknowledged in writing by the FDIC and
will receive expedited processing if the bank received an FDIC-assigned
composite rating of 3 or better under the Uniform Financial
Institutions Rating System as a result of its most recent Federal or
State examination. A filing processed under expedited processing will
be deemed approved on the third business day after receipt by the FDIC
of a letter filing that includes the information set forth in Sec.
303.42.
(c) Standard processing. For those filings that are not processed
pursuant to the expedited procedures, the FDIC will provide the bank
with written notification of the final action when the decision is
rendered.

Sec. 303.44 [Removed]

0
8. Remove Sec. 303.44.

Sec. 303.45 as [Redesignated Sec. 303.44]

0
9. Redesignate Sec. 303.45 as Sec. 303.44.

0
10. Revise newly redesignated Sec. 303.44 to read as follows:

Sec. 303.44 Special provisions.

(a) Emergency or disaster events. (1) In the case of an emergency
or disaster at a main office or a branch that requires that an office
be immediately relocated to a temporary location, banks shall notify
the appropriate FDIC office within 3 days of such temporary relocation.
(2) Within 10 days of the temporary relocation resulting from an
emergency or disaster, the bank shall submit a filing to the
appropriate FDIC office, that identifies the nature of the emergency or
disaster, specifies the location of the temporary branch, and provides
an estimate of the duration the bank plans to operate the temporary
branch.
(3) As part of the review process, the FDIC will determine on a
case by case basis whether additional information is necessary.
(b) Redesignation of main office and existing branch. In cases
where a bank desires to redesignate its main office as a branch and
redesignate an existing branch as the main office, a single filing
shall be submitted.
(c) Expiration of approval. Approval of a filing expires if within
24 months after the approval date a branch has not commenced business
or a relocation has not been completed.

Sec. 303.46 [Redesignated as Sec. 303.45]

0
11. Redesignate Sec. 303.46 as Sec. 303.45.

0
12. Amend newly redesignated Sec. 303.45 by revising the introductory
text to read as follows:

Sec. 303.45 Financial education programs that include the provision
of bank products and services.

No filing or prior approval is required in order for a State
nonmember bank to participate in one or more financial education
programs that involve receiving deposits, paying withdrawals, or
lending money if:
* * * * *

0
13. Revise and republish Sec. 303.184 to read as follows:

Sec. 303.184 Moving an insured branch of a foreign bank.

(a) Filing procedures--(1) Where and when to file. A filing by an
insured branch of a foreign bank seeking the FDIC's consent to move
from one location to another, as required by section 18(d)(1) of the
FDI Act (12 U.S.C. 1828(d)(1)), shall be submitted in writing to the
appropriate FDIC office.
(2) Content of filing. A complete letter filing shall include the
exact location of the proposed site, including the street address.
(3) Comptroller's application. If the filer is submitting an
application with the Comptroller that contains the information required
by paragraph (a)(2) of this section, the filer may submit a copy to the
FDIC in lieu of a separate filing.
(4) Additional information. The FDIC may request additional
information to complete processing.
(b) Processing--(1) Expedited processing for eligible insured
branches.

[[Page 60559]]

A filing submitted by an eligible insured branch as defined in Sec.
303.181(c) will be acknowledged in writing by the FDIC and will receive
expedited processing if the filer is proposing to move within the same
State. A filing processed under expedited processing will be deemed
approved on the third business day after the FDIC's receipt of a letter
filing that includes the information set forth in Sec. 303.42.
(2) Standard processing. For those filings that are not processed
pursuant to the expedited procedures, the FDIC will provide the filer
with written notification of the final action as soon as the decision
is rendered.
(c) Other approval criteria. The FDIC may approve a filing under
this section if the criteria in paragraphs (c)(1) through (6) of this
section are satisfied.
(1) The factors set forth in section 6 of the FDI Act (12 U.S.C.
1816) have been considered and favorably resolved;
(2) The filer is at least adequately capitalized as defined in
subpart H of part 324 of this chapter;
(3) Any financial arrangements that have been made in connection
with the proposed relocation and that involve the filer's directors,
officers, major shareholders, or their interests are fair and
reasonable in comparison to similar arrangements that could have been
made with independent third parties;
(4) Compliance with the CRA and any applicable related regulations,
including part 345 of this chapter, has been considered and favorably
resolved;
(5) No CRA protest as defined in Sec. 303.2(l) has been filed that
remains unresolved or, where such a protest has been filed and remains
unresolved, the Director or designee concurs that approval is
consistent with the purposes of the CRA and the filer agrees in writing
to any conditions imposed regarding the CRA; and
(6) The filer agrees in writing to comply with any conditions
imposed by the FDIC, other than the standard conditions defined in
Sec. 303.2(dd) that may be imposed without the filer's written
consent.
(d) Relocation of insured branch from one State to another. If the
foreign bank proposes to relocate an insured State branch to a State
that is outside the State where the branch is presently located, in
addition to meeting the approval criteria contained in paragraph (c) of
this section, the foreign bank must:
(1) Comply with any applicable State laws or regulations of the
States affected by the proposed relocation; and
(2) Obtain any required regulatory approvals from the appropriate
State licensing authority of the State to which the insured branch
proposes to relocate before relocating the existing branch operations
and surrendering its existing license to the appropriate State
licensing authority of the State from which the branch is relocating.

PART 345--COMMUNITY REINVESTMENT

0
14. The authority citation for part 345 continues to read as follows:

Authority: 12 U.S.C. 1814-1817, 1819-1820, 1828, 1831u, 2901-
2908, 3103-3104, and 3108(a).

0
15. In appendix G to part 345, revise Sec. 345.29(c) to read as
follows:

Appendix G to Part 345--Community Reinvestment Regulations

Sec. 345.29 Effect of CRA Performance on Applications

* * * * *
(c) Interested parties. The FDIC takes into account any views
expressed by interested parties that are submitted in accordance
with the FDIC's procedures set forth in part 303 of this chapter in
considering CRA performance in an application listed in paragraphs
(a)(3) and (4) and (b) of this section.
* * * * *

Federal Deposit Insurance Corporation.

By order of the Board of Directors.

Dated at Washington, DC, on December 16, 2025.
Debra A. Decker,
Executive Secretary.
[FR Doc. 2025-23837 Filed 12-23-25; 8:45 am]
BILLING CODE 6714-01-P

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