83 FR 63885 - Change in Bank Control Notices; Acquisitions of Shares of a Bank or Bank Holding Company
FEDERAL RESERVE SYSTEM Federal Register Volume 83, Issue 238 (December 12, 2018)
Federal Register Volume 83, Issue 238 (December 12, 2018)
| Page Range | 63885-63886 | |
| FR Document | 2018-26808 |
[Federal Register Volume 83, Number 238 (Wednesday, December 12, 2018)] [Notices] [Pages 63885-63886] From the Federal Register Online [www.thefederalregister.org] [FR Doc No: 2018-26808] ----------------------------------------------------------------------- FEDERAL RESERVE SYSTEM Change in Bank Control Notices; Acquisitions of Shares of a Bank or Bank Holding Company The notificants listed below have applied under the Change in Bank Control Act (12 U.S.C. 1817(j)) and Sec. 225.41 of the Board's Regulation Y (12 CFR 225.41) to acquire shares of a bank or bank holding company. The factors that are considered in acting on the notices are set forth in paragraph 7 of the Act (12 U.S.C. 1817(j)(7)). The notices are available for immediate inspection at the Federal Reserve Bank indicated. The notices also will be available for inspection at the offices of the Board of Governors. Interested persons may express their views in writing to the Reserve Bank indicated for that notice or to the offices of the Board of Governors. Comments must be received not later than December 31, 2018. A. Federal Reserve Bank of Chicago (Colette A. Fried, Assistant Vice President) 230 South LaSalle Street, Chicago, Illinois 60690-1414: 1. Lincoln Bancorp Employee Stock Ownership Plan, Reinbeck, Iowa, with John Michael Maier, Milwaukee, Wisconsin, as trustee of the ESOP; to retain shares of Lincoln Bancorp, Reinbeck, Iowa, and thereby indirectly retain Lincoln Savings Bank, Cedar Falls, Iowa. B. Federal Reserve Bank of Dallas (Robert L. Triplett III, Senior Vice President) 2200 North Pearl Street, Dallas, Texas 75201-2272: 1. Evan Katz, Michael Helfer, the Evan H. Katz 2018 Dynasty Trust, the Evan H. [[Page 63886]] Katz 2018 Irrevocable Trust, the Lissy Katz Bank 2018 Dynasty Trust, and the Lissy Katz Bank 2018 Irrevocable Trust, all of Houston, Texas, individually and acting in concert; to acquire voting shares of First Community Bancshares, Inc., and thereby indirectly acquire Fort Hood National Bank and First National Bank Texas d/b/a First Convenience Bank, all of Killeen, Texas. Board of Governors of the Federal Reserve System, December 6, 2018. Yao-Chin Chao, Assistant Secretary of the Board. [FR Doc. 2018-26808 Filed 12-11-18; 8:45 am] BILLING CODE P
![Federal Register / Vol. 83, No. 238 / Wednesday, December 12, 2018 / Notices 63885
fiscal years beginning after December 15, Reduction in the Number of Credit value. A write-down of an AFS debt
2021.23 Thus, an institution with a calendar Impairment Models security’s amortized cost basis to fair value,
year fiscal year that is not a PBE must first Impairment measurement under existing with any incremental impairment reported in
apply the new credit losses standard in its FR U.S. GAAP has often been considered earnings, would be required only if the fair
2248, FR 2314, FR 2320, FR 2886b, FR Y–7N, complex because it encompasses five credit value of an AFS debt security is less than its
FR Y–8, FR Y–9C, FR Y–9LP, FR Y–9SP, and impairment models for different financial amortized cost basis and either (1) the
FR Y–11 for December 31, 2021, if the assets.25 In contrast, CECL introduces a institution intends to sell the debt security,
institution is required to file such form.24 single measurement objective to be applied to or (2) it is more likely than not that the
The FR 2644 reporters must first apply the all financial assets carried at amortized cost, institution will be required to sell the
new credit losses standard January 5, 2022. including loans held-for-investment (HFI) security before recovery of its amortized cost
However, where applicable, institutions and held-to-maturity (HTM) debt securities. basis.
would include the CECL provision for That said, CECL does not specify a single Although the measurement of credit loss
expected credit losses for the entire year method for measuring expected credit losses; allowances is changing under CECL, the
ended December 31, 2021, in the income rather, it allows any reasonable approach, as FASB’s new accounting standard does not
statement in its report for year-end 2021. The long as the estimate of expected credit losses address when a financial asset should be
institution would also recognize in its year- achieves the objective of the FASB’s new placed in nonaccrual status. Therefore,
end 2021 report a cumulative-effect accounting standard. Under the existing institutions should continue to apply the
adjustment to the beginning balance of incurred loss methodology, institutions use agencies’ nonaccrual policies that are
retained earnings as of January 1, 2021, various methods, including historical loss currently in place. In addition, the FASB
resulting from the adoption of the new rate methods, roll-rate methods, and retained the existing write-off guidance in
standard as of the beginning of the 2021 discounted cash flow methods, to estimate U.S. GAAP, which requires an institution to
fiscal year. credit losses. CECL allows the continued use write off a financial asset in the period the
For regulatory reporting purposes, early of these methods; however, certain changes asset is deemed uncollectible.
application of the new credit losses standard to these methods will need to be made in [FR Doc. 2018–26818 Filed 12–11–18; 8:45 am]
will be permitted for all institutions for fiscal order to estimate lifetime expected credit
years beginning after December 15, 2018, losses.
BILLING CODE 6210–01–P
including interim periods within those fiscal
years. Purchased Credit-Deteriorated (PCD)
Financial Assets FEDERAL RESERVE SYSTEM
Appendix B—U.S. GAAP Changes as a CECL introduces the concept of PCD
Result of CECL financial assets, which replaces purchased Change in Bank Control Notices;
credit-impaired (PCI) assets under existing Acquisitions of Shares of a Bank or
Introduction of a New Credit Loss U.S. GAAP. The differences in the PCD Bank Holding Company
Methodology criteria compared to the existing PCI criteria
will result in more purchased loans HFI, The notificants listed below have
The new accounting standard developed
by the FASB has been designed to replace the HTM debt securities, and available-for-sale applied under the Change in Bank
existing incurred loss methodology in U.S. (AFS) debt securities being accounted for as Control Act (12 U.S.C. 1817(j)) and
GAAP. Under CECL, the allowance for credit PCD financial assets. In contrast to the § 225.41 of the Board’s Regulation Y (12
losses is an estimate of the expected credit existing accounting for PCI assets, the new CFR 225.41) to acquire shares of a bank
losses on financial assets measured at standard requires the estimate of expected or bank holding company. The factors
amortized cost, which is measured using credit losses embedded in the purchase price
of PCD assets to be estimated and separately
that are considered in acting on the
relevant information about past events, notices are set forth in paragraph 7 of
including historical credit loss experience on recognized as an allowance as of the date of
acquisition. This is accomplished by grossing the Act (12 U.S.C. 1817(j)(7)).
financial assets with similar risk
characteristics, current conditions, and up the purchase price by the amount of The notices are available for
reasonable and supportable forecasts that expected credit losses at acquisition, rather immediate inspection at the Federal
affect the collectability of the remaining cash than being reported as a credit loss expense. Reserve Bank indicated. The notices
flows over the contractual term of the As a result, as of acquisition date, the also will be available for inspection at
financial assets. In concept, an allowance amortized cost basis of a PCD financial asset the offices of the Board of Governors.
will be created upon the origination or is equal to the principal balance of the asset Interested persons may express their
acquisition of a financial asset measured at less the non-credit discount, rather than
equal to the purchase price as is currently
views in writing to the Reserve Bank
amortized cost. At subsequent reporting indicated for that notice or to the offices
dates, the allowance will be reassessed for a recorded for PCI loans.
level that is appropriate as determined in
of the Board of Governors. Comments
AFS Debt Securities must be received not later than
accordance with CECL. The allowance for
credit losses under CECL is a valuation The new accounting standard also modifies December 31, 2018.
account, measured as the difference between the existing accounting practices for A. Federal Reserve Bank of Chicago
the financial assets’ amortized cost basis and impairment on AFS debt securities. Under (Colette A. Fried, Assistant Vice
the amount expected to be collected on the this new standard, institutions will recognize President) 230 South LaSalle Street,
financial assets, i.e., lifetime expected credit a credit loss on an AFS debt security through
an allowance for credit losses, rather than a
Chicago, Illinois 60690–1414:
losses. 1. Lincoln Bancorp Employee Stock
direct write-down as is required by current
U.S. GAAP. The recognized credit loss is Ownership Plan, Reinbeck, Iowa, with
23 On August 20, 2018, FASB issued a proposed
limited to the amount by which the John Michael Maier, Milwaukee,
ASU that would amend the transition and effective
date provisions in ASU 2016–13 for entities that are amortized cost of the security exceeds fair Wisconsin, as trustee of the ESOP; to
not PBEs (non-PBEs) so that the credit losses retain shares of Lincoln Bancorp,
standard would be effective for non-PBEs for fiscal 25 Current U.S. GAAP includes five different Reinbeck, Iowa, and thereby indirectly
years beginning after December 15, 2021, including credit impairment models for instruments within retain Lincoln Savings Bank, Cedar
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interim periods within those fiscal years. the scope of CECL: ASC Subtopic 310–10,
24 If the FASB issues a final Accounting Receivables-Overall; ASC Subtopic 450–20,
Falls, Iowa.
Standards Update amending the transition and Contingencies-Loss Contingencies; ASC Subtopic B. Federal Reserve Bank of Dallas
effective date provisions in ASU 2016–13 as 310–30, Receivables-Loans and Debt Securities (Robert L. Triplett III, Senior Vice
described in footnote 23, a non-PBE with a calendar Acquired with Deteriorated Credit Quality; ASC President) 2200 North Pearl Street,
year fiscal year would first apply the new credit Subtopic 320–10, Investments-Debt and Equity
losses standard in its reports for March 31, 2022, Securities—Overall; and ASC Subtopic 325–40,
Dallas, Texas 75201–2272:
if an institution is required to file these report Investments-Other-Beneficial Interests in 1. Evan Katz, Michael Helfer, the Evan
forms. Securitized Financial Assets. H. Katz 2018 Dynasty Trust, the Evan H.
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![63886 Federal Register / Vol. 83, No. 238 / Wednesday, December 12, 2018 / Notices
Katz 2018 Irrevocable Trust, the Lissy files. The Board may not conduct or attachments. The Solicitation, Offer, and
Katz Bank 2018 Dynasty Trust, and the sponsor, and the respondent is not Award form (SOA) (Attachment A of FR
Lissy Katz Bank 2018 Irrevocable Trust, required to respond to, an information 1400B) is required with proposals
all of Houston, Texas, individually and collection that has been extended, offered in response to a solicitation
acting in concert; to acquire voting revised, or implemented on or after issued by the Board. The Supplier
shares of First Community Bancshares, October 1, 1995, unless it displays a Information Form (Attachment N of FR
Inc., and thereby indirectly acquire Fort currently valid OMB control number. 1400B) is required for the entry of a
Hood National Bank and First National Final approval under OMB delegated vendor into the Board’s contract writing
Bank Texas d/b/a First Convenience authority of the extension for three and invoice payment system. As a result
Bank, all of Killeen, Texas. years, with revision, of the following of the criteria used by the Board to
Board of Governors of the Federal Reserve reports: evaluate proposals, the Solicitation
System, December 6, 2018. Report title: Vendor Database. Package may also include the Past
Yao-Chin Chao, Agency form number: FR 1400A. Performance Data Sheet and Past
Assistant Secretary of the Board. OMB control number: 7100–0180. Performance Questionnaire (Attachment
Frequency: On occasion. I of FR 1400B) if past performance is an
[FR Doc. 2018–26808 Filed 12–11–18; 8:45 am]
Respondents: Businesses. evaluation factor. Typically, if past
BILLING CODE P
Estimated number of respondents: performance is considered an evaluation
250. factor, the vendor is asked to submit
FEDERAL RESERVE SYSTEM Estimated average hours per response: information on up to three previous
1. contracts whose effort is recent and
Agency Information Collection Estimated annual burden hours: 250. relevant to the effort required by the
Activities: Announcement of Board solicitation.
Report title: Solicitation Package.
Approval Under Delegated Authority Agency form number: FR 1400B. Solicitations that require the vendor
and Submission to OMB OMB control number: 7100–0180. to process, store, or transmit data from
Frequency: On occasion. the Board will contain the Vendor Risk
AGENCY: Board of Governors of the Management Offeror Questionnaire (FR
Federal Reserve System. Respondents: Businesses.
Estimated number of respondents: 1400C). The questionnaire will be
SUMMARY: The Board of Governors of the specific to the security controls
300.
Federal Reserve System (Board) is surrounding the vendor’s proposed
Estimated average hours per response:
adopting a proposal to extend for three application that will be used to process,
81.
years, with revision, the Procurement store, or transmit the data. Security
Estimated annual burden hours:
Solicitation Package (FR 1400; OMB No. controls will be defined and prioritized
24,300.
7100–0180). based on the Federal Information
FOR FURTHER INFORMATION CONTACT: Report title: Vendor Risk Management Security Modernization Act of 2014
Federal Reserve Board Clearance Offeror Questionnaire. (FISMA) and the National Institute of
Officer—Nuha Elmaghrabi—Office of Agency form number: FR 1400C. Standards and Technology (NIST)
the Chief Data Officer, Board of OMB control number: 7100–0180. Special Publication 800–53 (Security
Governors of the Federal Reserve Frequency: On occasion. Controls and Assessment Procedures for
System, Washington, DC 20551 (202) Respondents: Businesses. Federal Information Systems and
452–3829. Telecommunications Device Estimated number of respondents: 20. Organizations). In addition, for
for the Deaf (TDD) users may contact Estimated average hours per response: solicitations that have subcontracting
(202) 263–4869, Board of Governors of 12. opportunities and are expected to
the Federal Reserve System, Estimated annual burden hours: 240. exceed $100,000 ($300,000 for
Washington, DC 20551. Report title: Subcontracting Report. construction), a non-covered company
OMB Desk Officer—Shagufta Agency form number: FR 1400D. vendor is required to submit a
Ahmed—Office of Information and OMB control number: 7100–0180. subcontracting plan in its own format,
Regulatory Affairs, Office of Frequency: Quarterly. with its proposal. Then, if the vendor is
Management and Budget, New Respondents: Businesses. the chosen vendor and awarded a
Executive Office Building, Room 10235, Estimated number of respondents: 75. contract, the vendor is required to
725 17th Street NW, Washington, DC Estimated average hours per response: provide the quarterly Subcontracting
20503 or by fax to (202) 395–6974. 0.5. Reports (FR 1400D) to the Board, which
SUPPLEMENTARY INFORMATION: On June Estimated annual burden hours: 150. shall document the vendor’s
15, 1984, the Office of Management and General description of reports: The participation achievement on a
Budget (OMB) delegated to the Board Board is continuously seeking vendors cumulative basis. Information from the
authority under the Paperwork who are interested in doing business Subcontracting Report is used to assist
Reduction Act (PRA) to approve and with the Board through various outreach the Board in fulfilling the requirement
assign OMB control numbers to events, minority/diversity conferences, in Section 342(e) of the Dodd-Frank Act
collection of information requests and meetings, and events targeted to either that requires the Board to submit to
requirements conducted or sponsored a specific industry classification of Congress an annual report regarding the
by the Board. Board-approved vendors or an upcoming acquisition. fair inclusion of minorities and women
collections of information are Vendors are encouraged during these in contracting.
amozie on DSK3GDR082PROD with NOTICES1
incorporated into the official OMB efforts to register in the Board’s database Legal authorization and
inventory of currently approved of interested vendors (FR 1400A). In confidentiality: The FR 1400A is
collections of information. Copies of the announcing an acquisition, Board staff voluntary. For prospective vendors that
Paperwork Reduction Act Submission, contacts vendors registered in the Board decide to submit proposals to the Board,
supporting statements and approved database via electronic mail or by the FR 1400B, 1400C, and 1400D are
collection of information instrument(s) telephone, and provides the Solicitation required to obtain a benefit, in order to
are placed into OMB’s public docket Package (FR 1400B) and applicable be eligible for the award of a contract.
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Document Created: 2018-12-12 01:39:38
Document Modified: 2018-12-12 01:39:38
| Category | Regulatory Information | |
| Collection | Federal Register | |
| sudoc Class | AE 2.7: GS 4.107: AE 2.106: | |
| Publisher | Office of the Federal Register, National Archives and Records Administration | |
| Section | Notices | |
| FR Citation | 83 FR 63885 |
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