Maryland Legal Alert for Financial Services
Annual Assessment Fee Credit Application Available
The Maryland Office of Financial Regulation (“OFR”) has announced the availability of the application for qualifying Maryland financial institutions to obtain an annual assessment fee credit for opening and/or maintaining branch locations in low-to moderate-income (“LMI”) communities, pursuant to the Maryland Access to Banking Act.
Financial institutions with a composite CAMELS ratings of 1 or 2 may be eligible for the credit based on deposits maintained at qualifying LMI branch locations as of June 30, 2025, including enhanced credits for de novo branches. The credit is available on an annual basis. Institutions may also elect to donate any awarded credit to the Maryland Community Investment Venture (“MCIV”) Fund.
Eligible financial institutions are encouraged to review the application requirements and submit timely applications. For additional information, institutions should contact the Maryland Office of Financial Regulation.
1. Who is eligible to apply for the assessment fee credit?
Maryland state-chartered banks and credit unions that are well-capitalized and have a composite CAMELS rating of 1 or 2 are eligible, provided they operated a qualifying branch in an LMI census tract in Maryland as of June 30, 2025.
2. What deposits qualify for the credit?
Deposits originated and housed at a branch located in an LMI census tract, as reported to OFR as of June 30, 2025, qualify for the credit, subject to statutory limits.
3. How is the credit calculated?
For de novo branches, the credit is calculated at 12 cents per $1,000 of deposits for the first five years after opening. For non-de novo branches, the credit is calculated at 6 cents per $1,000 of deposits, subject to applicable national deposit growth caps.
4. Is the credit available every year?
Yes. The assessment fee credit is available annually, subject to eligibility and statutory requirements.
5. May an institution donate the credit instead of applying it to its assessment?
Yes. Institutions may elect to donate any awarded assessment fee credit to the Maryland Community Investment Venture (“MCIV”) Fund.
6. Where can institutions obtain the application and additional guidance?
The application and additional guidance are available through the Maryland Office of Financial Regulation.
For more information concerning this topic, please contact Tamia J. Morris