Notice of Annual Adjustment of the Cap on Average Total Assets That Defines Community Financial Institutions, 2225 [2019-01154]

Download as PDF Federal Register / Vol. 84, No. 25 / Wednesday, February 6, 2019 / Notices 2225 NOTICE OF TERMINATION OF RECEIVERSHIP Fund Receivership name City State 10451 ........................... Georgia Trust Bank ............................................. Buford ........................... GA ................................ The Receiver has further irrevocably authorized and appointed FDICCorporate as its attorney-in-fact to execute and file any and all documents that may be required to be executed by the Receiver which FDIC-Corporate, in its sole discretion, deems necessary, including but not limited to releases, discharges, satisfactions, endorsements, assignments, and deeds. Effective on the termination date listed above, the Receivership has been terminated, the Receiver has been discharged, and the Receivership has ceased to exist as a legal entity. Dated at Washington, DC, on February 1, 2019. Federal Deposit Insurance Corporation. Robert E. Feldman, Executive Secretary. [FR Doc. 2019–01310 Filed 2–5–19; 8:45 am] BILLING CODE 6714–01–P FEDERAL HOUSING FINANCE AGENCY [No. 2019–N–1] Notice of Annual Adjustment of the Cap on Average Total Assets That Defines Community Financial Institutions Federal Housing Finance Agency. ACTION: Notice. AGENCY: The Federal Housing Finance Agency (FHFA) has adjusted the cap on average total assets that is used in determining whether a Federal Home Loan Bank (Bank) member qualifies as a ‘‘community financial institution’’ (CFI) to $1,199,000,000, based on the annual percentage increase in the Consumer Price Index for all urban consumers (CPI–U), as published by the Department of Labor (DOL). These changes took effect on January 1, 2019. FOR FURTHER INFORMATION CONTACT: James Hedrick, Division of Federal Home Loan Bank Regulation, (202) 649– 3319, James.Hedrick@fhfa.gov; or Eric M. Raudenbush, Associate General Counsel, (202) 649–3084, Eric.Raudenbush@fhfa.gov, (not toll-free numbers), Federal Housing Finance Agency, Constitution Center, 400 Seventh Street SW, Washington, DC 20219. SUPPLEMENTARY INFORMATION: amozie on DSK3GDR082PROD with NOTICES1 SUMMARY: VerDate Sep<11>2014 18:09 Feb 05, 2019 Jkt 247001 I. Statutory and Regulatory Background The Federal Home Loan Bank Act (Bank Act) confers upon insured depository institutions that meet the statutory definition of a CFI certain advantages over non-CFI insured depository institutions in qualifying for Bank membership, and in the purposes for which they may receive long-term advances and the collateral they may pledge to secure advances.1 Section 2(10)(A) of the Bank Act and § 1263.1 of FHFA’s regulations define a CFI as any Bank member the deposits of which are insured by the Federal Deposit Insurance Corporation and that has average total assets below the statutory cap.2 The Bank Act was amended in 2008 to set the statutory cap at $1 billion and to require FHFA to adjust the cap annually to reflect the percentage increase in the CPI–U, as published by the DOL.3 For 2018, FHFA set the CFI asset cap at $1,173,000,000, which reflected a 2.2 percent increase over 2017, based upon the increase in the CPI–U between 2016 and 2017.4 II. The CFI Asset Cap for 2019 As of January 1, 2019, FHFA has increased the CFI asset cap to $1,199,000,000, which reflects a 2.2 percent increase in the unadjusted CPI– U from November 2017 to November 2018. Consistent with the practice of other Federal agencies, FHFA bases the annual adjustment to the CFI asset cap on the percentage increase in the CPI– U from November of the year prior to the preceding calendar year to November of the preceding calendar year, because the November figures represent the most recent available data as of January 1st of the current calendar year. The new CFI asset cap was obtained by applying the percentage increase in the CPI–U to the unrounded amount for the preceding year and rounding to the nearest million, as has been FHFA’s practice for all previous adjustments. In calculating the CFI asset cap, FHFA uses CPI–U data that have not been seasonally adjusted (i.e., the data have not been adjusted to remove the 1 See 12 U.S.C. 1424(a), 1430(a). 12 U.S.C. 1422(10)(A); 12 CFR 1263.1. 3 See 12 U.S.C. 1422(10)(B); 12 CFR 1263.1 (defining the term CFI asset cap). 4 See 83 FR 2153 (Jan. 16, 2018). 2 See PO 00000 Frm 00087 Fmt 4703 Sfmt 4703 Termination date 2/1/2019 estimated effect of price changes that normally occur at the same time and in about the same magnitude every year). The DOL encourages use of unadjusted CPI–U data in applying ‘‘escalation’’ provisions such as that governing the CFI asset cap, because the factors that are used to seasonally adjust the data are amended annually, and seasonally adjusted data that are published earlier are subject to revision for up to five years following their original release. Unadjusted data are not routinely subject to revision, and previously published unadjusted data are only corrected when significant calculation errors are discovered. Dated: January 16, 2019. Andre D. Galeano, Deputy Director, Division of Federal Home Loan Bank Regulation, Federal Housing Finance Agency. [FR Doc. 2019–01154 Filed 2–5–19; 8:45 am] BILLING CODE 8070–01–P FEDERAL MARITIME COMMISSION Agency Information Collection Activities: 60-Day Public Comment Request Federal Maritime Commission. Notice and request for comments. AGENCY: ACTION: As part of our continuing effort to reduce paperwork and respondent burden, and as required by the Paperwork Reduction Act of 1995, the Federal Maritime Commission (Commission) invites comments on the continuing information collection (extension of the information collection with no changes) listed below in this notice. SUMMARY: Written comments must be submitted on or before April 8, 2019. ADDRESSES: You may send comments to: Karen Gregory, Managing Director, Office of the Managing Director, Federal Maritime Commission, 800 North Capitol Street NW, Washington, DC 20573, (202) 523–5800, omd@fmc.gov. Please reference the information collection’s title and OMB number in your comments. FOR FURTHER INFORMATION CONTACT: Copies of the information collection and instructions, or copies of any comments DATES: E:\FR\FM\06FEN1.SGM 06FEN1

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[Federal Register Volume 84, Number 25 (Wednesday, February 6, 2019)]
[Notices]
[Page 2225]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2019-01154]


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FEDERAL HOUSING FINANCE AGENCY

[No. 2019-N-1]


Notice of Annual Adjustment of the Cap on Average Total Assets 
That Defines Community Financial Institutions

AGENCY: Federal Housing Finance Agency.

ACTION: Notice.

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SUMMARY: The Federal Housing Finance Agency (FHFA) has adjusted the cap 
on average total assets that is used in determining whether a Federal 
Home Loan Bank (Bank) member qualifies as a ``community financial 
institution'' (CFI) to $1,199,000,000, based on the annual percentage 
increase in the Consumer Price Index for all urban consumers (CPI-U), 
as published by the Department of Labor (DOL). These changes took 
effect on January 1, 2019.

FOR FURTHER INFORMATION CONTACT: James Hedrick, Division of Federal 
Home Loan Bank Regulation, (202) 649-3319, James.Hedrick@fhfa.gov; or 
Eric M. Raudenbush, Associate General Counsel, (202) 649-3084, 
Eric.Raudenbush@fhfa.gov, (not toll-free numbers), Federal Housing 
Finance Agency, Constitution Center, 400 Seventh Street SW, Washington, 
DC 20219.

SUPPLEMENTARY INFORMATION:

I. Statutory and Regulatory Background

    The Federal Home Loan Bank Act (Bank Act) confers upon insured 
depository institutions that meet the statutory definition of a CFI 
certain advantages over non-CFI insured depository institutions in 
qualifying for Bank membership, and in the purposes for which they may 
receive long-term advances and the collateral they may pledge to secure 
advances.\1\ Section 2(10)(A) of the Bank Act and Sec.  1263.1 of 
FHFA's regulations define a CFI as any Bank member the deposits of 
which are insured by the Federal Deposit Insurance Corporation and that 
has average total assets below the statutory cap.\2\ The Bank Act was 
amended in 2008 to set the statutory cap at $1 billion and to require 
FHFA to adjust the cap annually to reflect the percentage increase in 
the CPI-U, as published by the DOL.\3\ For 2018, FHFA set the CFI asset 
cap at $1,173,000,000, which reflected a 2.2 percent increase over 
2017, based upon the increase in the CPI-U between 2016 and 2017.\4\
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    \1\ See 12 U.S.C. 1424(a), 1430(a).
    \2\ See 12 U.S.C. 1422(10)(A); 12 CFR 1263.1.
    \3\ See 12 U.S.C. 1422(10)(B); 12 CFR 1263.1 (defining the term 
CFI asset cap).
    \4\ See 83 FR 2153 (Jan. 16, 2018).
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II. The CFI Asset Cap for 2019

    As of January 1, 2019, FHFA has increased the CFI asset cap to 
$1,199,000,000, which reflects a 2.2 percent increase in the unadjusted 
CPI-U from November 2017 to November 2018. Consistent with the practice 
of other Federal agencies, FHFA bases the annual adjustment to the CFI 
asset cap on the percentage increase in the CPI-U from November of the 
year prior to the preceding calendar year to November of the preceding 
calendar year, because the November figures represent the most recent 
available data as of January 1st of the current calendar year. The new 
CFI asset cap was obtained by applying the percentage increase in the 
CPI-U to the unrounded amount for the preceding year and rounding to 
the nearest million, as has been FHFA's practice for all previous 
adjustments.
    In calculating the CFI asset cap, FHFA uses CPI-U data that have 
not been seasonally adjusted (i.e., the data have not been adjusted to 
remove the estimated effect of price changes that normally occur at the 
same time and in about the same magnitude every year). The DOL 
encourages use of unadjusted CPI-U data in applying ``escalation'' 
provisions such as that governing the CFI asset cap, because the 
factors that are used to seasonally adjust the data are amended 
annually, and seasonally adjusted data that are published earlier are 
subject to revision for up to five years following their original 
release. Unadjusted data are not routinely subject to revision, and 
previously published unadjusted data are only corrected when 
significant calculation errors are discovered.

    Dated: January 16, 2019.
Andre D. Galeano,
Deputy Director, Division of Federal Home Loan Bank Regulation, Federal 
Housing Finance Agency.
[FR Doc. 2019-01154 Filed 2-5-19; 8:45 am]
BILLING CODE 8070-01-P