Proper Use of New Schedule SI Line Items 255, 265, and 266
The FDIC believes there may be confusion regarding three new line
items on Schedule SI of the quarterly Thrift Financial Report (TFR),
namely Lines 255, 265, and 266. The new line items were added to
Schedule SI effective with the March 31, 1997, TFR. These line items
are to be completed by so-called "Oakar" thrifts-that is, thrifts that
pay a portion of their quarterly deposit insurance assessment to both
Line items 255, 265, and 266 were added to help the FDIC calculate an
Oakar thrift's adjusted attributable deposit amount (AADA). The AADA
serves as the base on which an Oakar thrift's payment to the other
("secondary") fund is computed.
An "Oakar" thrift is a thrift that belongs to one insurance fund,
generally the Savings Association Insurance Fund (SAIF), and has
acquired deposits insured by the secondary insurance fund, generally
the Bank Insurance Fund (BIF), by means of a so-called "Oakar
transaction." The most common Oakar transaction occurs when a SAIF-
member thrift acquires deposits from a BIF-member bank, either by
means of a whole-institution acquisition (merger/combination/consolidation) or through a branch acquisition.
Other examples of Oakar transactions include:
a SAIF-member thrift acquiring deposits from a thrift-chartered
institution that is a BIF member--a "BIF HOLA" thrift;
a BIF HOLA thrift acquiring deposits from a SAIF-member thrift; or
a BIF HOLA thrift acquiring deposits from a bank-chartered
institution that is a SAIF member (a "Sasser" bank).
Acquisition of an Oakar Institution
In another common Oakar transaction, a SAIF-member thrift can become
an Oakar thrift by simply acquiring another SAIF-member Oakar thrift
or a Sasser Oakar bank. (In addition, a BIF HOLA thrift can become a
BIF HOLA Oakar bank by acquiring another BIF HOLA Oakar thrift or a
BIF-member Oakar bank.) In such cases, the acquired Oakar
institution's AADA becomes the AADA of the resultant thrift.
Please Note: If an Oakar thrift acquires an Oakar institution that is
a member of the other insurance fund (for example, a SAIF-member
thrift acquiring a BIF Oakar bank or a BIF HOLA Oakar thrift), the
thrift should contact the FDIC to request a special AADA worksheet.
The worksheet will assist the reporting thrift in determining the
correct amount to include in Line Item 265 of Schedule SI.
The following instructions for each line item are intended to
supplement information found in the TFR instructions and to clarify
the reporting requirements for each item.
Schedule SI, Line Item 255
This line item is used to report all deposits acquired by the
reporting institution from any insured depository institution
(regardless of insurance fund membership) in the quarter ending with
the filing of the TFR. For example, all deposits acquired between
July 1, 1997, and September 30, 1997, will be reported on this line
item of the September 30, 1997, TFR.
The amount reported in this line item should be equal to the deposit
amount acquired on the date of the transaction, and should include all
deposits as defined by Section 3(l) of the Federal Deposit Insurance
Act (FDI Act), including escrows and interest accrued and unpaid.
The amount reported in this line item will always be greater than, or
equal to, the amount that is reported on Line Item 265.
Schedule SI, Line Item 265
This line item is used to report all deposits acquired during the
quarter by the reporting institution from any insured depository
institution that was insured by the insurance fund of which the
resultant thrift is not a member, the secondary insurance fund. In
other words, this item is used to report "Oakar" deposits (AADA)
acquired in the quarter. This amount should also be included as part
of the amount reported in Line Item 255.
Please note: This line item is also to be used to report the AADA of
an Oakar institution that has been acquired by the reporting thrift.
If the acquired Oakar institution is a member of the same insurance
fund as the resultant thrift, the resultant thrift (the "reporting"
thrift) should include in this line item the AADA shown on Line 46 of
the acquired Oakar institution's last assessment invoice.
As mentioned previously, if the reporting thrift has acquired an Oakar
institution that is a member of the other insurance fund, the thrift
should contact the FDIC at the telephone number listed at the end of
this FIL to request a special AADA worksheet. The worksheet will
assist the reporting thrift in determining the correct amount to
include in this line item.
Again, the amount that is reported in this line item should be equal
to the deposits that were acquired from the other insurance fund on
the date of the transaction. In addition, the amount reported in this
line item will always be less than, or equal to, the amount that is
reported on Line Item 255.
Schedule SI, Line Item 266
This line item is used to report all deposits sold by the reporting
institution in the quarter. The amount that is reported on this line
item should be equal to the deposits that were sold on the date of the
In the third quarter of the year, Thrift A (a SAIF-member):
acquires four branches of Bank Z (a BIF-member). This
acquisition is an Oakar transaction. On the date of
transaction, the deposits acquired equal $143,500,000;
acquires Thrift B (a SAIF-member Oakar thrift) through a
merger. On the date of transaction, the deposits acquired
equal $750,000,000. Thrift B's AADA as of its last invoice
(June 30) was $350,000,000; and
sells a branch to Thrift C (a SAIF-member thrift). On the
date of transaction, the deposits sold equal $50,000,000.
Thrift A will complete its September 30 TFR, Schedule SI, as follows:
Line Item 255. . . $893,500,000 ($143,500,000 + $750,000,000)
Line Item 265. . . $493,500,000 ($143,500,000 + $350,000,000)
Line Item 266 . . . $50,000,000
The FDIC uses the information reported in these three line items when
calculating an Oakar thrift's AADA each quarter for assessment
purposes. A "Quarterly Growth Adjustment Statement," showing the AADA
calculation, is prepared by the FDIC for every Oakar thrift and is
included with the thrift's quarterly assessment invoice.
If you have any questions regarding these line items, please contact
the FDIC's Assessment Management Section at (800) 477-9557. In the
Washington, D.C., area, please call (202) 416-7400.
Director and Chief Financial Officer
Distribution: All Insured Savings Associations
NOTE: Paper copies of FDIC financial institution letters may be
obtained through the FDIC's Public Information Center, 801 17th
Street, N.W., Room 100, Washington, D.C. 20434; phone (800) 276-6003
or (703) 562-2200. Electronic versions of FILs are available at the
FDIC's web site: News, Events & FOIA.