| (a) Forms. If a state bank wants to establish and operate
a branch office in this state or an interstate branch office pursuant
to Finance Code, §32.203 and §203.001(a), then a branch
application must be completed and filed on forms prescribed by the
department. An application for an interstate branch must also provide
information regarding applicable host state law and evidence of compliance
with the law. Eligible banks may file an expedited application pursuant
to §15.3 of this title (relating to Expedited Filings).
(b) Filing. The banking commissioner will issue a written
notice as required by §15.4 of this title (relating to Required
Information and Abandoned Filings) informing the applicant either
that all filing fees have been paid and the application is complete
and accepted for filing, or that the application is deficient and
specific additional information is required.
(c) Public notice.
(1) Within 14 days prior to or 14 days after the initial
submission of its application, the applicant must publish notice of
the application, as required by §15.5 of this title (relating
to Public Notice), in the community of the proposed branch.
(2) The notice must comply with the content requirement
of §15.5(b) of this title and include the proposed location of
the branch or service area.
(3) With respect to an application to establish an
interstate branch office pursuant to Finance Code, §32.203 and §203.001(a),
the applicant must inform the department of the publication requirements
in the host state for the banking commissioner to determine, pursuant
to §15.5(e) of this title, whether those requirements satisfy
the publication requirements of this subsection.
(d) Public comment and protest. For 14 days after publication
of notice, or longer if the banking commissioner allows more time
for good cause shown, the public may submit written comments or protests
regarding the application. There is no fee or cost for submitting
a comment, but persons commenting are not entitled to further notice
of or participation in the branch application proceedings. Each protesting
party has the rights and responsibilities set forth in subsections
(f) and (g) of this section.
(e) Criteria for branch approval: "Significant supervisory
or regulatory concerns."
(1) To determine whether there are significant supervisory
concerns regarding a proposed branch, the banking commissioner will
consider the financial condition of the applicant, the financial effect
of the branch on the applicant, the management abilities of the applicant,
and the history and prospects of the applicant and its affiliates
regarding fulfillment of responsibilities to regulatory agencies and
to the public, including, but not limited to, the responsibility of
the applicant to meet the credit needs of its entire community pursuant
to the Community Reinvestment Act (CRA), 12 United States Code, §2901
et seq. An application will ordinarily be denied if the applicant
is in less than satisfactory financial condition as of its most recent
examination or has a less than satisfactory rating regarding compliance
with CRA.
(2) To determine whether there are significant regulatory
concerns regarding a proposed branch, the banking commissioner will
consider the need to maintain a sound banking system. The banking
commissioner will follow the principles that the marketplace normally
is the best regulator of economic activity, and that healthy competition
promotes a sound and more efficient banking system that serves customers
well. Accordingly, absent significant supervisory concerns, the general
policy of the banking commissioner is to approve applications to establish
and operate branches, provided that approval would not otherwise violate
the provisions of federal or state law (including any requirements
for federal banking agency approval).
(3) In determining whether there are significant supervisory
or regulatory concerns as set forth in paragraphs (1) and (2) of this
subsection, the banking commissioner will consider written material
in the record, including the application, comments on file, protests
on file, and any replies of the applicant, the department's files
as they relate to the current financial condition of the applicant,
and any data that the banking commissioner may properly officially
notice. Specifically, the banking commissioner will approve a branch
if:
(A) the department's files do not indicate significant
regulatory concerns as they relate to the current financial condition
of the applicant, including but not limited to its capital, asset
quality, management, earnings and liquidity (these files are confidential
pursuant to the Finance Code, Chapter 31, Subchapter D, and rules
adopted pursuant to the Finance Code, are not open or available to
either the applicant or a protesting party or to the public);
(B) the costs of establishing the proposed branch office,
including costs of purchasing or leasing the branch site, necessary
furnishings, staffing and equipment and the effect of these costs
do not significantly affect the operations of the applicant as a whole;
(C) the projected earnings appear reasonable and sufficient
to support expenses attributable to the branch without jeopardizing
the safety and soundness of the applicant;
(D) the depth and quality of management of the applicant
and the proposed branch is sufficient to justify a belief that the
bank will operate in compliance with the Finance Code;
(E) the bank has demonstrated compliance with CRA as
determined by the rating assigned in the applicant's most recent CRA
evaluation;
(F) the applicant has demonstrated a responsiveness
to recommendations made in past state and federal bank examination
reports and the applicant has generally been operated in substantial
compliance with all applicable state and federal laws; and
(G) the banking commissioner, in the exercise of discretion,
determines there are no areas of general supervisory concern.
(4) The banking commissioner will direct the department
to assemble, evaluate, and make a recommendation regarding all relevant
documentation and data as set forth in this subsection within 30 days
after the application is complete and accepted for filing, or expiration
of the period for filing a comment, protest, response or reply, whichever
is the last to occur. If a hearing is granted pursuant to subsection
(g) of this section, then the banking commissioner will request the
administrative law judge for the Finance Commission of Texas (administrative
law judge) to discharge this function through the hearings process.
Portions of the assembled record that are confidential pursuant to
the Finance Code, Chapter 31, Subchapter D, must be segregated and
clearly marked as confidential.
(5) If no hearing is granted, the banking commissioner
will either approve, conditionally approve, or deny the application
on or before the 30th day after receipt of the department's recommendation.
(f) Protest.
(1) A person may initiate a protest by submitting a
written notice of intent to protest the application with the department
within the time period allowed by subsection (d) of this section,
accompanied by the filing fee required by §15.2 of this title
(relating to Filing and Investigation Fees). If the protest is untimely,
the filing fee will be returned to the protesting party. If the protest
is timely, the department will notify the applicant of the protest
and mail or deliver a complete copy of the non-confidential sections
of the application to the protesting party on or before the 14th day
after receipt of the protest or the application, whichever occurs
later.
(2) A protesting party must file a detailed protest
responding to each substantive statement contained in the non-confidential
sections of the application within 20 days after the protesting party
receives the application from the department. The protesting party's
response must indicate whether each substantive statement is admitted
or denied. The applicant must file a written reply to the protesting
party's detailed response on or before the tenth day after the response
is filed. Both the protesting party's response and the applicant's
reply must be verified by affidavit and certify that a copy was served
upon the opposing party. When applicable, statements in the response
and in the reply may be supported by references to data available
in sources of which official notice may properly be taken. Comments
received by the department and any replies of the applicant to the
comments will be made available to the protesting party.
(3) The banking commissioner may extend any time period
set forth in this subsection for good cause shown. Good cause includes,
but is not limited to, failure of the department to furnish required
documentation, forms or information within a reasonable time to permit
its effective use by the recipient, or failure of a party to timely
serve a filed document on an opposing party. The date a document is
actually received by the department is its filing date and not the
date it is mailed. Failure to timely file a required document is considered
an abandonment of the application or protest, as applicable. Cont'd... |
