FormHe_20160127_omb

Supporting Statement for the
Savings and Loan Holding Company Application
(Form H-(e); OMB No. 7100-0336)
Summary
The Board of Governors of the Federal Reserve System, under delegated authority from
the Office of Management and Budget (OMB), proposes to extend for three years, without
revision, the mandatory Savings and Loan Holding Company Application (Form H-(e); OMB
No. 7100-0336). The Federal Reserve analyzes each holding company application to determine
whether the applicant meets the statutory criteria set forth in section 10(e) of the Home Owners’
Loan Act (Act), as amended, to become a savings and loan holding company. The applications
are reviewed for adequacy of answers to items and completeness in all material respects. The
applications are event-generated and provide the Federal Reserve with information necessary to
evaluate the proposed transaction.
The Federal Reserve intends to update and revise the Application to conform to Federal
Reserve standards in the near future. The total annual reporting burden is estimated to be 6,000
hours.
Background and Justification
Section 10(e) of the Act, as amended, and Regulation LL (12 C.F.R. § 238.11) provide
that, unless a transaction is exempt under 12 C.F.R. § 238.12, no company or any director who
owns, controls, or holds with power to vote (or holds proxies representing) more than 25 percent
of the voting stock of a savings association holding company, may acquire control of a savings
association without the prior written approval of the Federal Reserve. In addition, no person
(other than certain persons affiliated with a savings and loan holding company who are subject to
the previous statement) shall acquire control.
Form H-(e) is used to collect information concerning the proposed acquisition(s). The
blank line following the H-(e) on the cover page is filled in by the applicant(s) with the
appropriate “1”, “1-S”, “2”, “3”, or “4” depending on the type of acquisition. Information about
these five filing categories are available in the General Instructions. Details concerning the
mechanics of the proposed transaction(s) as well as a description of the applicant(s)’s current
business are requested. In accordance with statutory requirements, information concerning the
financial and managerial resources as well as the future prospects of the applicant(s) and the
association(s) is requested. Also, in accordance with the statutory requirements, information is
requested concerning the convenience and needs of the community to be served and the
competitive effects of the proposed transaction(s).
Description of Information Collection
The application form collects information concerning proposed SLHC formations,
acquisitions, mergers, or purchase of assets of savings associations, and SLHC targets.
Generally these applications are submitted to the appropriate Federal Reserve Bank by exisiting

or proposed SLHCs. The form collects information on the legal and structural aspects of these
transactions, as well as information related to the financial, managerial, future prospects, and
competitive factors related to the pro forma organization.
Time Schedule for Information Collection
The applications submitted with these forms are event generated and the data are not part
of any published reporting series. If the application meets established criteria to be processed on
a delegated basis, the Reserve Bank or Secretary of the Board generally acts on the proposal
within 30 calendar days of submission of the application. If the proposal does not meet the
criteria for processing under delegated authority, the application will be processed for action by
the Board. Such an application will generally be acted on within 60 calendar days of submission
of the application, unless an applicant is notified that the processing period is being extended and
informed of the reasons for the extension.
Legal Status
The Board’s Legal Division has determined that the Savings and Loan Holding Company
Application is mandatory and authorized pursuant to section 10 of HOLA, which provides that
“the Board is authorized to issue such regulations…as the Board deems necessary or appropriate
to enable the Board to administer and carry out the purposes of this sections, and require
compliance therewith and prevent evasions thereof” (12 U.S.C. § 1467a(g)(1)). Section 10 of
HOLA also requires a savings and loan holding company to file “such reports as may be required
by the Board” and provides that such reports “shall contain such information concerning the
operations of such savings and loan holding company and its subsidiaries as the Board may
require (12 U.S.C. § 1467a(b)(2)).
The information on Form H-(e) is not considered confidential unless the applicant
requests confidential treatment pursuant to exemption 4 or 6 of the Freedom of Information Act
(5 U.S.C. § 552(b)(4) or (6)). All such requests for confidential treatment would need to be
reviewed on a case-by-case basis and in response to a specific request for disclosure.
Consultation Outside the Agency
On June 17, 2015, the Federal Reserve published a notice in the Federal Register
(80 FR 34641) requesting public comment for 60 days on the proposal to extend, without
revision, the Savings and Loan Holding Company Application. The comment period for this
notice expired on August 17, 2015. The Federal Reserve did not receive any comments. On
September 11, 2015, the Federal Reserve published a final notice in the Federal Register
(80 FR 54790).
Estimate of Respondent Burden
The current annual reporting burden for the application is estimated to be 6,000 hours as
shown in the following table. The average estimated hours per response is 500 hours. The
annual burden for the application represents less than 1 percent of total Federal Reserve System

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paperwork burden.

Form H-(e)

Number of
respondents1

Annual
frequency

Estimated
average hours
per response

Estimated
annual burden
hours

12

1

500

6,000

The current annual cost to the public is estimated to be $310,500.2
Sensitive Questions
This collection of information contains no questions of a sensitive nature, as defined by
OMB guidelines.
Estimate of Cost to the Federal Reserve System
The information submitted in the applications is not automated. The cost to the Federal
Reserve System of printing and mailing instructions is negligible.

1

Of these respondents, none are estimated to be small entities as defined by the Small Business Administration (i.e.,
entities with less than $550 million in total assets) www.sba.gov/content/table-small-business-size-standards.
2
Total cost to the public was estimated using the following formula: percent of staff time, multiplied by annual
burden hours, multiplied by hourly rates (30% Office & Administrative Support at $17, 45% Financial Managers at
$63, 15% Lawyers at $64, and 10% Chief Executives at $87). Hourly rates for each occupational group are the
(rounded) mean hourly wages from the Bureau of Labor and Statistics (BLS), Occupational Employment and Wages
May 2014, published March 25, 2015, www.bls.gov/news.release/ocwage.t01.htm. Occupations are defined using
the BLS Occupational Classification System, www.bls.gov/soc/.

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