Insurance Corp. premiums a few days early or pay the second-quarter premium in advance had to notify the agency this week. Regulations issued in September moved the premium's due date to Jan. 2 from Dec. 29, the last business day of the year. Banks that wanted to pay early had to file certification forms with the FDIC by Nov. 1. The new regulations also give banks the option of prepaying the second-quarter premium on Dec. 29. Institutions planning to pay on Jan. 2 do not have to do anything. The FDIC gave banks different options for payment because the December date would have left some banks paying five quarterly payments next year. A Dec. 29 pay date also caused accounting problems for banks that do their accounting on a cash basis - they recognize revenues only when money is received and expenses only when they are actually paid. All future first-quarter payments will be due on Jan. 2 unless the bank requests an earlier pay date. The early-payment and doubled-payment forms were sent to banks with FDIC Financial Institution Letter 67-95. Banks will receive confirmation that the FDIC has received the form.

Subscribe Now

Access to authoritative analysis and perspective and our data-driven report series.

14-Day Free Trial

No credit card required. Complete access to articles, breaking news and industry data.