In April 1929, it absorbed the Colonial Bank and the Bank of the Rockaways. In May 1929, it merged with the Municipal Bank and Trust Company making the combined Bank of United States the third largest bank in New York City, and twenty-eighth in the United States. With a book value of $60 and a dividend payment of $2 for 1929, the president of the bank declared the bank to be on a sound footing in a letter to shareholders following the stock market failure on Black Tuesday.