|(a) Authority. The assessment schedule contained in
this section is made under the authority contained in the Finance
Code, §31.003(a)(4) and §204.003(b).
(b) Definitions. The following words and terms, when
used in this section, §3.37 of this title (relating to Calculation
of Annual Assessment for Banks), or §3.38 of this title (relating
to Calculation of Annual Assessment for Foreign Bank Branches and
Agencies), shall have the following meanings, unless the context clearly
(1) Assessable assets--The sum of on-book assets and
average off-book assets of a bank, foreign bank branch, or foreign
(2) Average off-book assets--The average of the off-balance
sheet items reported by a bank, foreign bank branch, or foreign bank
agency in its most recent March 31st call report and the three immediately
preceding call reports, as adjusted under subsection (c) of this section.
(3) Call report--The FFIEC quarterly, consolidated
report of condition and income (including domestic and foreign subsidiaries)
prepared and filed by a bank, foreign bank branch, or foreign bank
agency under state and federal law.
(4) CAMELS composite rating--A bank's composite rating
under the Uniform Financial Institutions Rating System (UFIRS), as
described more fully in Supervisory Memorandum 1001, assigned by the
department to a state bank in connection with its most recent examination
by the department or by a federal bank regulatory agency.
(5) FFIEC--The Federal Financial Institutions Examination
(6) On-book assets--The total assets reported by a
bank, foreign bank branch, or foreign bank agency on the balance sheet
contained in its most recent March 31st call report, minus the outstanding
balance of PPP loans included on "Schedule RC-M - Memoranda."
(7) PPP--The Paycheck Protection Program administered
by the Small Business Administration.
(c) Calculation of average off-book assets. As a component
of assessable assets, a bank, foreign bank branch, or foreign bank
agency must calculate a four-quarter average of off-book assets specifically
as instructed in the assessment form applicable to the institution,
using the most recent March 31st call report and the three preceding
call reports. In general, the bank, foreign bank branch, or foreign
bank agency must sum all line items for which values are included
on "Schedule RC-L-Off-Balance Sheet Items," which could result in
assets of the institution, with the exception of:
(1) Amount of financial standby letter of credit conveyed
(2) Amount of performance standby letter of credit
conveyed to others;
(3) Participations in acceptances conveyed to others
by the reporting bank, foreign bank branch, or foreign bank agency;
(4) All line items related to derivative products as
identified by the department.
(d) Annual assessment. Effective September 1 of each
year, the department will establish the annual assessment for each
bank, foreign bank branch, and foreign bank agency under subsections
(f) and (g) of this section.
(1) The assessment for a bank is based on its assessable
assets and calculated in the manner described in §3.37 of this
title. Upon receipt of written notice from the department, the bank
must pay the assessment to the department in quarterly installments
by electronic payment/ACH debited effective September 15, December
15, March 15, and June 15 of each year, or by another method if directed
to do so by the department.
(2) The assessment for a foreign bank branch or a foreign
bank agency is based on its assessable assets and calculated in the
manner described in §3.38 of this title. Upon receipt of a written
invoice from the department, the foreign bank branch or foreign bank
agency must pay the assessment to the department in quarterly installments,
due on or before September 15, December 15, March 15, and June 15
of each year, or by another method if directed to do so by the department.
(3) A foreign bank representative office shall pay
an annual assessment fee of $2,500 to cover the cost of examinations
and all associated expenses unless the foreign bank also maintains
a foreign bank branch or foreign bank agency in this state subject
to assessment under paragraph (2) of this subsection. Upon receipt
of a written invoice from the department, each foreign bank representative
office to which this paragraph applies must pay its annual assessment
to the department in a single installment, due on or before September
15 of each year. The department may require each foreign bank representative
office to pay the annual assessment fee through electronic funds transfer.
(e) Review of assessment factors. The department will
review all appropriations, revenue sources, expenditure patterns,
and other revenues and costs related to examination and supervision
of banks, foreign bank branches, foreign bank agencies, and present
to the finance commission no less frequently than once each biennium
such information and a calculation chart that sets forth the annual
(f) Interim adjustments.
(1) If the size, condition, or other characteristics
of a bank, foreign bank branch or foreign bank agency change sufficiently
during a year to cause the institution to fall into a different assessable
asset group or to be subject to a new or different surcharge based
on a change in the institution's CAMELS composite rating, the department
will adjust the annual assessment to the appropriate amount beginning
with the first billed quarterly installment after the change.
(2) In the event of an acquisition or merger involving
a surviving state bank, foreign bank branch, or foreign bank agency,
the department will adjust the annual assessment to reflect the result
of the acquisition or merger beginning with the first billed quarterly
installment after the consummation of the transaction. The asset group
will be calculated on the basis of the combined assessable assets
of the surviving institution.
(3) A financial institution that becomes subject to
this section during a fiscal year as a result of conversion, merger,
branching, or other change during a fiscal year must pay to the department
an assessment beginning in the quarter of the conversion, merger,
or other change to reflect only the quarter or quarters of the year
in which the institution is subject to this section.
(4) Each bank, foreign bank branch, and foreign bank
agency must pay to the department the full quarterly installment of
the assessment for the next three-month period on the due date of
the installment without proration for any reason.
(g) Adjustment of an installment. The banking commissioner
may, after review and consideration of actual and projected revenues
and expenditures in the current fiscal year, lower the aggregate amount
of an installment and bill each institution subject to assessment
a proportionally lower amount, without the prior approval of the finance
(h) Specialty examination fees.
(1) Examinations of fiduciary activities and other
special examinations and investigations, including but not limited
to examinations of bank holding companies, interstate branches of
state banks in Texas as host state, affiliates, and third-party contractors,
are subject to a separate charge to cover the cost of time and expenses
incurred in these examinations.
(2) The fee for an examination under this subsection
will be calculated at a rate not to exceed $110 per examiner hour,
to recoup the salary expense of examiners plus a proportionate share
of department overhead allocable to the examination function. The
banking commissioner in the exercise of discretion may lower the rate
in connection with a specific examination or investigation for equitable
reasons, without the prior approval of the finance commission.
(3) In connection with an examination under this subsection,
the regulated entity or other legally responsible party shall pay
to the department the examination fee set forth in paragraph (2) of
this subsection, and shall also pay to the department an amount for
actual travel expenses incurred by the examiners, including mileage,
public transportation, food, and lodging.
(i) Special assessments. The finance commission may
approve a special assessment to cover material expenditures, such
as major facility repairs and improvements and other extraordinary
|Source Note: The provisions of this §3.36 adopted to be effective January 5, 1996, 20 TexReg 10994; amended to be effective March 21, 1997, 22 TexReg 2608; amended to be effective September 9, 1999, 24 TexReg 6969; amended to be effective September 4, 2003, 28 TexReg 7347; amended to be effective January 2, 2014, 38 TexReg 9481; amended to be effective November 5, 2015, 40 TexReg 7620; amended to be effective July 5, 2018, 43 TexReg 4451; amended to be effective July 11, 2021, 46 TexReg 4023