The FDIC board of directors voted to rescind its 2024 Statement of Policy on Bank Merger Transactions and will reinstate, on an interim basis, the Merger Policy Statement that was in effect prior to 2024 as the agency conducts a broader reevaluation of its bank merger review process.
Details: The FDIC said the latest proposal seeks to address the fact that the 2024 statement added considerable uncertainty to the merger application process. The FDIC noted that while it considers broader revisions to its merger policy, it is proposing to return to the historical approach that is well-understood by market participants.
ICBA View: ICBA last summer told the FDIC that its bank merger review process requires significant revisions to be streamlined and equitable to community banks. With the announcement that the FDIC will return to the pre-2024 framework, ICBA will continue to work with the FDIC to improve the bank merger process and ensure it does not unduly scrutinize mergers between community banks.