State chartered banks, state savings banks, and state savings and loan associations, are authorized to declare cash dividends up to 100% of year-to-date net income in any calendar year without obtaining the prior approval of the Board. Dividends declared in January may be based on the net income of the prior calendar year subject to this limitation. All other cash dividends require the specific approval of the Board.

Provisions of a formal or informal enforcement action may limit an institution's ability to pay a dividend that would otherwise be permissible as described in this regulation.

HISTORY: Amended by SCSR 49-5 Doc. No. 5292, eff May 23, 2025.