327.53—Allocation and payment of dividends.
(a)
(1)
The allocation of any dividend among insured depository institutions shall be based on the institution's 1996 assessment base share and the institution's eligible premium share.
(2)
As set forth in the following table, the part of a dividend allocated based upon an institution's 1996 assessment base share shall decline steadily from 100 percent to zero over fifteen years, and the part of a dividend allocated based upon an institution's eligible premium share shall increase steadily over the same fifteen-year period from zero to 100 percent. The 15-year period shall begin as if it had applied to a dividend based upon the reserve ratio at the end of 2006 and shall end with respect to any dividend based upon the reserve ratio at the end of 2021. Dividends based upon the reserve ratio as of December 31, 2021, and thereafter shall be allocated among insured depository institutions based solely on eligible premium shares.
| Based upon the DIF reserve ratio at year-end | Part of total DIF dividenddetermined by: | |
|---|---|---|
| 1996 Assessment base shares | Eligible premium shares | |
| 2006 1 | 1 (100.0%) | 0 (0%) |
| 2007 1 | 14/15 (93.3%) | 1/15 (6.7%) |
| 2008 | 13/15 (86.7%) | 2/15 (13/3%) |
| 2009 | 4/5 (80.0%) | 1/5 (20.0%) |
| 2010 | 11/15 (73.3%) | 4/15 (26.7%) |
| 2011 | 2/3 (66.7%) | 1/3 (33.3%) |
| 2012 | 3/5 (60.0%) | 2/5 (40.0%) |
| 2013 | 8/15 (53.3%) | 7/15 (46.7%) |
| 2014 | 7/15 (46.7%) | 8/15 (53.3%) |
| 2015 | 2/5 (40.0%) | 3/5 (60.0%) |
| 2016 | 1/3 (33.3%) | 2/3 (66.7%) |
| 2017 | 4/15 (26.7%) | 11/15 (73.3%) |
| 2018 | 1/5 (20.0%) | 4/5 (80.0%) |
| 2019 | 2/15 (13.3%) | 13/15 (86.7%) |
| 2020 | 1/15 (6.7%) | 14/15 (93.3%) |
| 2021 | 0 (0%) | 1 (100.0%) |
| Thereafter | 0 (0%) | 1 (100%) |
| 1 The 15-year period shall be computed as if it had applied to dividends based upon the reserve ratios at the end of 2006 and 2007. | ||
(b)
The FDIC shall notify each insured depository institution of the amount of such institution's dividend payment based on its share as determined pursuant to paragraph (a) of this section. Notice shall be given as soon as practicable after the Board's declaration of a dividend through a special notice of dividend.
(c)
The FDIC shall pay individual dividend amounts, unless they are the subject of a request for review under § 327.54, to insured depository institutions on June 30 of the year the dividend is declared. The FDIC shall notify institutions whether dividends will offset the next collection of assessments at the time of the invoice. An institution's dividend amount will be settled with that institution's assessment. Any excess dividend amount will be a net credit to the institution and will be deposited into the deposit account designated by the institution for assessment payment purposes pursuant to subpart A of this part. If the dividend amount is less than the amount of assessment due, then the institution's account will be directly debited by the FDIC to reflect the net amount owed to the FDIC as an assessment.
(d)
If an insured depository institution's dividend amount is subject to review under § 327.54, and that request is not finally resolved prior to the dividend payment date, the FDIC shall withhold the payment of the disputed portion of the dividend amount involved in the request for review. Adjustments to an individual institution's dividend amount based on the final determination of a request for review will be handled in the same manner as assessment underpayments and overpayments.
(e)
An institution may sell, assign, or otherwise transfer its right to a current or future dividend. However, the FDIC will pay dividend amounts to insured institutions without regard to any such sale, assignment or transfer, regardless of whether the FDIC has received notice of the sale, assignment or transfer.