The Federal Deposit Insurance Corporation (“FDIC”) has adopted a final rule (“Final Rule”) streamlining the filing requirements and reducing timelines for an insured State nonmember bank (“Bank”) to establish a branch or relocate a main office or branch.

The Final Rule, which amends Part 303 of the FDIC Regulations (“Part 303”), most notably eliminates public notice and public comment requirements typically associated with these filings, providing an opportunity for Banks that qualify for expedited processing to obtain approval for such filings three business days after submission. The Final Rule seeks to improve the speed and certainty of, and reduce the regulatory burden associated with, branch and main office filings.

The Final Rule will be effective February 27, 2026.

I. Overview

Key elements of the Final Rule include:

• Providing that most filings qualifying for expedited processing will be deemed approved three business days after submission.
• Eliminating the FDIC’s discretion to remove filings from expedited processing.
• Eliminating the filing requirements for de minimis branch facility changes.
• Clarifying “remote service units” do not constitute branches.
• Streamlining filing content requirements.
• Eliminating public notice and public comment requirements.
• Extending the expiration period for an approved filing.

II. The Final Rule

A. Refined Filing Procedures and Timing

The Final Rule eliminates the newspaper publication requirement, where a Bank would typically be required to publish notice of certain branching activity in a newspaper of general circulation. Such filings would then be subject to a public comment period of 15 days after the date of the last newspaper publication. Without the publication requirement, Banks are no longer subject to the 15-day waiting period, and filings may be processed in a more expedited fashion.

In furtherance of the above, the Final Rule also shortens the approval period for expedited processing for Banks and eliminates the FDIC’s discretion to remove a filing from expedited processing under Part 303. The Final Rule now provides that, outside of filings for de novo interstate branches, a filing submitted by a Bank that is processed under expedited processing would be deemed approved on the third business day after receipt by the FDIC of a substantially complete filing. The Final Rule further specifies that intrastate branch and main office relocation filings will qualify for expedited processing if a Bank maintains a UFIRS rating of 3 or better. Additionally, under the Final Rule, a Bank filing that satisfies the criteria for expedited processing will be deemed approved in accordance with the statutory factors, and the FDIC will not have discretion to remove the filing from expedited processing after the fact.

B. De Minimis Branch Relocations

The Final Rule establishes that a branch relocation does not include a de minimis change in address. It goes on to define a ‘‘de minimis change in address’’ as occurring when a branch exchanges one physical facility for another within the same approximate location, such as where (1) a direct line of sight exists between the two facilities, (2) the facilities share the same parking area, or (3) the facilities are located on contiguous properties or on the same block. The Final Rule now merely requires a Bank undertaking a de minimis change in address to provide reasonable advance written notice to customers of the branch undergoing a de minimis change in address and the appropriate FDIC office.

C. Remote Service Units

The Final Rule revises the definition of ‘‘branch’’ to clarify that a branch does not include a “remote service unit.” The Final Rule goes on to define a ‘‘remote service unit’’ as an automated or unstaffed facility, operated by a customer of a bank with at most delimited assistance from bank personnel, that conducts banking functions such as receiving deposits, paying withdrawals, or lending money. Automated teller machines, interactive teller machines, automated loan machines, automated devices for receiving deposits, personal computers, telephones, other similar electronic devices, and drop boxes are all under the purview of the refined “remote service unit” definition, and, as such, would not be considered branches under the Final Rule.

D. Extended Expiration Period for Approved Filings

Finally, the Final Rule extends the expiration period for approved filings to 24 months. Previously, approved filings were subject to expiration 18 months from the date of issuance.

III. Conclusion

The Final Rule seeks to lessen the regulatory burden on Banks establishing or relocating a branch by setting forth a process that reduces the time, cost, and effort for regulatory filings in accordance with such branch actions. The Final Rule is only applicable to insured State nonmember banks. National banks and federal savings associations supervised by Office of the Comptroller of the Currency and Federal Reserve state member banks are still subject to existing publication and public notice requirements of those regulators for branch activity. With the Final Rule in place, it remains to be seen whether the other prudential regulators ease branch filing requirements for their respective financial institutions.

Please note this is a general overview of developments in the law and does not constitute legal advice. Nothing herein creates an attorney-client relationship between the sender and the recipient. If you have any questions about the Final Rule or Part 303, please feel free to contact Joseph D. Simon at (516) 357-3710 or via email at jsimon@cullenllp.com, Elizabeth A. Murphy at (516) 296-9154, or via email at emurphy@cullenllp.com, David Curatolo at (516) 357-3773 or via email at dcuratolo@cullenllp.com, or Gabriela Morales at (516) 357-3850 or via email at gmorales@cullenllp.com.