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#1017164 - 08/11/08 07:16 PM Dividend limitations
complyok Offline
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OK
What are the FDIC limitations on bank dividends? I know that the OCC (and OTS?) have a formula that dividends are limited to the last two years of earnings or something like that. Does the FDIC have a similar rule?

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#1019673 - 08/14/08 12:23 AM Re: Dividend limitations complyok
Jokerman Offline
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I am unaware of any general limitations, so long as you aren't restricted from doing so and are maintaining a well-capitalized status.

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#1020049 - 08/14/08 03:20 PM Re: Dividend limitations complyok
KYAuditor Offline
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Kentucky
You may pay dividends on current year earnings and any undistributed earnings from the prior two years. If you want to pay dividends in excess of this amount, you can request permission from FDIC. Provided that you are well-capitalized, they will probably approve the dividends.
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#1020669 - 08/14/08 09:10 PM Re: Dividend limitations KYAuditor
Jokerman Offline
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Do you have a link, KYAuditor? (Not disputing, just haven't heard this.)

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#1020890 - 08/15/08 01:05 PM Re: Dividend limitations Jokerman
KYAuditor Offline
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Kentucky
I'm not having any luck pasting the link, but look under Reg H. The cite is 12 CFR 208.5(c). This applies to state nonmember banks so maybe that is why you hadn't heard of it.
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#1020954 - 08/15/08 02:03 PM Re: Dividend limitations KYAuditor
Jokerman Offline
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Thanks.

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#1021500 - 08/15/08 07:38 PM Re: Dividend limitations Jokerman
John Burnett Offline
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http://www.bankersonline.com/regs/208/208-5.html

Actually, it applies to state member (not non-member) banks.
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John S. Burnett
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#1021524 - 08/15/08 07:46 PM Re: Dividend limitations John Burnett
John Burnett Offline
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John Burnett
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Cape Cod
Take a look at Table 1 to Appendix A to Part 363 of the FDIC's Rules and Regulations. It's a table of citations on laws and regulations on insider lending and dividend restrictions, and it has columns for national banks, state member banks, state non-member banks, and Savings Associations.

Click HERE and then do an in-page search (Ctrl+F) for "Table 1" a couple of times.
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John S. Burnett
BankersOnline.com
Fighting for Compliance since 1976
Bankers' Threads User #8

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#1021747 - 08/16/08 05:17 PM Re: Dividend limitations John Burnett
Jokerman Offline
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Thanks, John.

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