[SECTION 109 HOST STATE LOAN-TO-DEPOSIT RATIOS]{.underline}

The Federal Deposit Insurance Corporation (FDIC), the Federal Reserve
Board, and the Office of the Comptroller of the Currency ("the
agencies") today are making public the host state loan-to-deposit
ratios[^1] that the agencies will use to determine compliance with
section 109 of the Riegle-Neal Interstate Banking and Branching
Efficiency Act of 1994 (Interstate Act). Section 109 of the Interstate
Act prohibits a bank from establishing or acquiring a branch or branches
outside of its home state under the Interstate Act primarily for the
purpose of deposit production.

Section 109 provides a two-step process to test compliance with the
statutory requirements. The first step involves a loan-to-deposit ratio
screen that compares a bank's statewide loan-to-deposit ratio[^2] to the
host state loan-to-deposit ratio for a particular state. If the bank's
statewide loan-to-deposit ratio in a state is at least one-half of the
published host state loan-to-deposit ratio for that state, the bank has
complied with section 109. If the bank's ratio is less than one-half,
the second step in section 109 requires the agencies to determine if the
bank is reasonably helping to meet the credit needs of the communities
served by the bank. A bank that fails both steps is in violation of
section 109 and subject to sanctions by the agencies.

The agencies will update the host state loan-to-deposit ratios on an
annual basis.

+-------------------------------------+--------------------------------+
| Section 109 of the Interstate       |                                |
| Banking and Branching Efficiency    |                                |
| Act                                 |                                |
|                                     |                                |
| Host State Loan-to-Deposit Ratios   |                                |
+=====================================+================================+
| (Excludes wholesale or limited      |                                |
| purpose CRA-designated banks and    |                                |
| credit card banks.)                 |                                |
+-------------------------------------+--------------------------------+
| **State**                           | **Host State Loan-to-Deposit   |
|                                     | Ratio**                        |
+-------------------------------------+--------------------------------+
| Alabama                             | 95%                            |
+-------------------------------------+--------------------------------+
| Alaska                              | 76%                            |
+-------------------------------------+--------------------------------+
| Arizona                             | 79%                            |
+-------------------------------------+--------------------------------+
| Arkansas                            | 71%                            |
+-------------------------------------+--------------------------------+
| California                          | 87%                            |
+-------------------------------------+--------------------------------+
| Colorado                            | 62%                            |
+-------------------------------------+--------------------------------+
| Connecticut                         | 79%                            |
+-------------------------------------+--------------------------------+
| Delaware                            | 80%                            |
+-------------------------------------+--------------------------------+
| District of Columbia                | 71%                            |
+-------------------------------------+--------------------------------+
| Florida                             | 95%                            |
+-------------------------------------+--------------------------------+
| Georgia                             | 93%                            |
+-------------------------------------+--------------------------------+
| Hawaii                              | 100%                           |
+-------------------------------------+--------------------------------+
| Idaho                               | 74%                            |
+-------------------------------------+--------------------------------+
| Illinois                            | 84%                            |
+-------------------------------------+--------------------------------+
| Indiana                             | 90%                            |
+-------------------------------------+--------------------------------+
| Iowa                                | 74%                            |
+-------------------------------------+--------------------------------+
| Kansas                              | 71%                            |
+-------------------------------------+--------------------------------+
| Kentucky                            | 92%                            |
+-------------------------------------+--------------------------------+
| Louisiana                           | 79%                            |
+-------------------------------------+--------------------------------+
| Maine                               | 96%                            |
+-------------------------------------+--------------------------------+
| Maryland                            | 82%                            |
+-------------------------------------+--------------------------------+
| Massachusetts                       | 84%                            |
+-------------------------------------+--------------------------------+
| Michigan                            | 97%                            |
+-------------------------------------+--------------------------------+
| Minnesota                           | 101%                           |
+-------------------------------------+--------------------------------+
| Mississippi                         | 73%                            |
+-------------------------------------+--------------------------------+
| Missouri                            | 75%                            |
+-------------------------------------+--------------------------------+
| Montana                             | 84%                            |
+-------------------------------------+--------------------------------+
| Nebraska                            | 78%                            |
+-------------------------------------+--------------------------------+
| Nevada                              | 68%                            |
+-------------------------------------+--------------------------------+
| New Hampshire                       | 85%                            |
+-------------------------------------+--------------------------------+
| New Jersey                          | 70%                            |
+-------------------------------------+--------------------------------+
| New Mexico                          | 68%                            |
+-------------------------------------+--------------------------------+
| New York                            | 88%                            |
+-------------------------------------+--------------------------------+
| North Carolina                      | 100%                           |
+-------------------------------------+--------------------------------+
| North Dakota                        | 90%                            |
+-------------------------------------+--------------------------------+
| Ohio                                | 106%                           |
+-------------------------------------+--------------------------------+
| Oklahoma                            | 68%                            |
+-------------------------------------+--------------------------------+
| Oregon                              | 80%                            |
+-------------------------------------+--------------------------------+
| Pennsylvania                        | 97%                            |
+-------------------------------------+--------------------------------+
| Rhode Island                        | 69%                            |
+-------------------------------------+--------------------------------+
| South Carolina                      | 80%                            |
+-------------------------------------+--------------------------------+
| South Dakota                        | 93%                            |
+-------------------------------------+--------------------------------+
| Tennessee                           | 88%                            |
+-------------------------------------+--------------------------------+
| Texas                               | 66%                            |
+-------------------------------------+--------------------------------+
| Utah                                | 100%                           |
+-------------------------------------+--------------------------------+
| Vermont                             | 83%                            |
+-------------------------------------+--------------------------------+
| Virginia                            | 84%                            |
+-------------------------------------+--------------------------------+
| Washington                          | 115%                           |
+-------------------------------------+--------------------------------+
| West Virginia                       | 83%                            |
+-------------------------------------+--------------------------------+
| Wisconsin                           | 92%                            |
+-------------------------------------+--------------------------------+
| Wyoming                             | 73%                            |
+-------------------------------------+--------------------------------+
| American Samoa                      | 81%                            |
+-------------------------------------+--------------------------------+
| Federated States of Micronesia      | 52%                            |
+-------------------------------------+--------------------------------+
| Guam                                | 68%                            |
+-------------------------------------+--------------------------------+
| Puerto Rico                         | 93%                            |
+-------------------------------------+--------------------------------+
| Virgin Islands                      | 68%                            |
+-------------------------------------+--------------------------------+

Due to the legislative intent against imposing regulatory burden, no
additional data were collected from the institutions to implement
section 109. However, since insufficient lending data were available on
a geographic basis to calculate the statewide ratios directly, the
agencies used a proxy to estimate the host state loan-to-deposit ratio.
The agencies calculated the host state loan-to-deposit ratios using data
obtained from the Call Reports and Summary of Deposits reports, as of
June 30, 1998. For each home state bank, the agencies calculated the
percentage of the bank's total deposits attributable to branches located
in its home state (determined from the Summary of Deposits), and applied
this percentage to the bank's total domestic loans (determined from the
Call Report) to estimate the amount of loans attributable to the home
state. The host state loan-to-deposit ratio was then calculated by
separately totaling the loans and deposits for the home state banks, and
then dividing the sum of the loans by the sum of the deposits. Banks
designated as limited purpose or wholesale banks under the Community
Reinvestment Act (CRA) were excluded from the host state loan-to-deposit
calculation, recognizing that these banks could have very large loan
portfolios, but few, if any, deposits. Credit card banks, which
typically have large loan portfolios but few deposits, were also
excluded, regardless of whether they had a limited purpose
CRA-designation.

The host state loan-to-deposit ratios, and any changes in the way the
ratio is calculated, will be made publicly available on an annual basis.

[^1]: The host state loan-to-deposit ratio is the ratio of total loans
    in a state to total deposits from the state for all banks that have
    that state as their home state. For state-chartered banks and
    FDIC-supervised savings banks, the home state is the state where the
    bank was chartered. For national banks, the home state is the state
    where the bank's main office is located.

[^2]: The statewide loan-to-deposit ratio relates to an individual bank
    and is the ratio of a bank's loans to its deposits in a particular
    state where the bank has interstate branches.