1978 ANNUAL REPORT OF THE 

FEDERAL DEPOSIT INSURANCE CORPORATION

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Federal Reserve Bank of St. Louis
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Federal Reserve Bank of St. Louis
Ill

LETTER OF TRANSMITTAL

FEDERAL DEPOSIT INSURANCE CORPORATION 

Washington, D.C., November 26, 1979

SIRS: In accordance with the provisions of section 17(a) of the Federal 

Deposit Insurance Act, the Federal Deposit Insurance Corporation is 

pleased to submit its annual report for the calendar year 1978. This report 

is a reprint of the report issued on March 15, 1979, expanded to include 

bank merger decisions, statistical tables and other updated information 

pertinent to the operations of the Corporation.

Very truly yours,

Irvine H. Sprague

Chairman

THE PRESIDENT OF THE SENATE

THE SPEAKER OF THE HOUSE OF REPRESENTATIVES

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IV

FEDERAL DEPOSIT INSURANCE CORPORATION

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Federal Reserve Bank of St. Louis
FEDERAL DEPOSIT INSURANCE CORPORATION

V

BOARD OF DIRECTORS

Acting Chairman..................................................................................John G. Heimann

Director..................................................................................................William M. Isaac

Comptroller of the Currency.............................. ............................John G. Heimann

OFFICIALS

Deputy to the Chairman..................................................................Lewis G. Odom, Jr.

Special Assistant to the Chairman..........................................Sherwin R. Koopmans

Special Assistant to the Chairman..................................................Douglas H. Jones

Special Assistant to the Chairman....................................................Leonard Lapidus

Special Assistant to the Chairman........................................................Harold Nathan

Assistant to the Chairman..........................................................Alfred H. Teichler, Jr.

Assistant to the Director..........................................................................Edwin B. Burr

Special Assistant to the Director..................................................David B. Jacobsohn

Special Assistant to the Director............................................................Alison L. Falls

Assistant to the Director (Comptroller of the Currency)..................David C. Motter

Executive Secretary....................................................................................Alan R. Miller

Director; Division of Bank Supervision....................................................John J. Early

Acting General Counsel........................................................................Reford J. Wedel

Controller................................................................................................James A. Davis

Director, Division of Liquidation............................................................George W. Hill

Director, Division of Management Systems

and Financial Statistics...................................................................Robert P. Rogers

Director of Research....................................................................Stanley C. Silverberg

Director, Office of Corporate Audits................ ..........................Robert D. Hoffman

Acting Director, Office of Consumer Affairs

and Civil Rights..............................................................................Carmen J. Sullivan

Director, Office of Personnel Management......................................Jack C. Pleasant

Director, Office of Employee Relations..................................................Joe S. Arnold

Assistant to the Board of Directors..................................................Sydney S. Sterns

December 31, 1978

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Federal Reserve Bank of St. Louis
FE D E R A L DEPOSIT INSURANCE C O RPO RATIO N REGIONS

VI

Regional Directors

Atlanta

Lewis C. Beasley

233 Peachtree St., N.E. Suite 2400 

Atlanta, Georgia 30303

Boston

Anthony S. Scalzi 

60 State Street, 17th Floor 

Boston, Massachusetts 02109

Chicago

W. Harlan Sarsfield

233 South Wacker Drive, Suite 6116

Chicago, Illinois 60606

Columbus

Vacant

1 Nationwide Plaza, Suite 2600 

Columbus, Ohio 43215

Dallas

Quinton Thompson

350 North S t Paul Street, Suite 2003

Dallas, Texas 75201

Kansas City

Robert V. Shumway

2345 Grand Avenue, Suite 1500

Kansas City, Missouri 64108

Madison

James E. Halvorson 

1 South Pinckney Street, Room 813 

Madison, Wisconsin 53703

Memphis

Roy E. Jackson

1 Commerce Square, Suite 1800 

Memphis, Tennessee 38103 

Minneapolis

Robert P. Gough

730 Second Avenue South, Suite 266 

Minneapolis, Minnesota 55402 

New York

Bernard J. McKeon 

345 Park Avenue, 21st Floor 

New York, New York 10022 

Omaha

Burton L. Blasingame 

1700 Farnam Street, Suite 1200 

Omaha, Nebraska 68102 

Philadelphia

James L. Sexton 

5 Penn Center Plaza, Suite 2901 

Philadelphia, Pennsylvania 19103 

Richmond 

John Stathos

Eighth & Main Building, Suite 2000 

707 East Main Street 

Richmond, Virginia 23219 

San Francisco 

Charles E. Doster

44 Montgomery Street, Suite 3600 

San Francisco, California 94104

December 3 1 ,1 97£

FEDERAL DEPOSIT INSURANCE CORPORATION 

M a i n O f f i c e : 5 5 0 1 7 t h S t r e e t , N. W„ W a s h i n g t o n , D. C. 2 0 4 2 9

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Federal Reserve Bank of St. Louis
VII

CONTENTS

Chairman's statement................................................................ xi

PART ONE

OPERATIONS OF THE CORPORATION

Administration of the Corporation......................................................... 3

Supervision of Banks............................................................................. 5

Bank Closings and Liquidation Activities............................................... 17

Consumer and Civil Rights Protection................................................... 23

Finances of the Corporation.................................................................. 26

PART TWO

ENFORCEMENT PROCEEDINGS

Actions to terminate insured status....................................................... 37

Cease-and-desist actions........................................................................ 37

PART THREE

MERGER DECISIONS OF THE CORPORATION

Bank absorptions approved by the Corporation.................................. 47

Bank absorptions denied by the Corporation........................................ 103

PART FOUR

REGULATIONS AND LEGISLATION

Legislation— 1978 ................................................................................. 113

Rules and regulations............................................................................. 114

PART FIVE

STATISTICS OF BANKS AND DEPOSIT INSURANCE

Number of banks and branches............................................................ .120

Assets and liabilities of banks.............................................................. .141

Income of insured banks.........................................................................165

Banks closed because of financial difficulties; FDIC income,

disbursements, and losses.................................................................. .181

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VIII

TABLES

NUMBER OF BANKS AND BRANCHES:

Explanatory note....................................................................................................... 120

101. Changes in number and classification of banks and branches in the

United States (States and other areas) during 1 9 7 8 ............................ 122

102. Changes in number of commercial banks and branches in the United

States (States and other areas) during 1978, by State........................ 124

103. Number of banking offices in the United States (States and other areas),

December 31, 1978

Banks grouped by insurance status and class of bank, and by State

or area and type of office.................................................................... 126

104. Number and assets of all commercial and mutual savings banks in the

United States (States and other areas), December 31, 1978

Banks grouped by class and asset size.............................................. 135

105. Number, assets, and deposits of all commercial banks in the United

States (States and other areas), December 31, 1978

Banks grouped by asset size and State.............................................. 136

ASSETS AND LIABILITIES OF BANKS:

Explanatory note....................................................................................................... 141

106. Assets and liabilities of all commercial banks in the United States (States

and other areas), June 30, 1978

Banks grouped by insurance status and class of bank.................... 143

. 107. Assets and liabilities of all commercial banks in the United States (States 

and other areas), December 31, 1978

Banks grouped by insurance status and class of bank.................... 146

108. Assets and liabilities of all mutual savings banks in the United States

(States and other areas), June 30, 1978, and December 31, 1978

Banks grouped by insurance status.................................................... 150

109. Assets and liabilities of insured commercial banks in the United States

(States and other areas), December call dates, 1973-1978 .............. 152

110. Assets and liabilities of insured commercial banks (domestic and foreign

offices), United States and other areas, 1973-1977 .......................... 155

110A. Assets and liabilities of insured commercial banks (domestic and

foreign offices), United States and other areas, December 31, 1978 .. 156

111. Assets and liabilities of insured mutual savings banks in the United

States (States and other areas), December call dates, 1973-1978 .. 158

112. Percentages of assets, liabilities, and equity capital of insured commercial banks operating throughout 1978 in the United States (States and 

other areas), December 31, 1978

Banks grouped by amount of assets.................................................. 160

113. Percentages of assets and liabilities of insured mutual savings banks

operating throughout 1978 in the United States (States and other 

areas), December 31, 1978

Banks grouped by amount of assets.................................................. 161

114. Distribution of insured commercial banks in the United States (States

and other areas), December 31, 1978.................................................... 162

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IX

INCOME OF INSURED BANKS:

Explanatory note........................................................................................................ 165

115. Income of insured commercial banks in the United States (States and

other areas), 1 9 7 3 -1 9 7 8 .......................................................................... 168

116. Ratios of income of insured commercial banks in the United States

(States and other areas), 1973-1978 .................................................... 170

117. Income of insured commercial banks in the United States (States and

other areas), 1978

Banks grouped by class of bank.......................................................... 171

118. Income of insured commercial banks operating throughout 1978 in the

United States (States and other areas)

Banks grouped by amount of assets.................................................. 173

119. Ratios of income of insured commercial banks operating throughout

1978 in the United States (States and other areas)

Banks grouped according to amount of assets.................................. 175

120. Income of insured mutual savings banks in the United States (States and

other areas), 1 973-19 78.......................................................................... 177

121. Ratios of income of insured mutual savings banks in the United States

(States and other areas), 1973-1978 .................................................... 179

BANKS CLOSED BECAUSE OF FINANCIAL DIFFICULTIES:

FDIC INCOME, DISBURSEMENTS, AND LOSSES

Explanatory note........................................................................................................ 181

122. Number and deposits of banks closed because of financial difficulties,

1934-1978 ................................................................................................ 183

123. Insured banks requiring disbursements by the Federal Deposit Insurance

Corporation during 1978 .......................................................................... 184

124. Depositors, deposits, and disbursements in failed banks requiring disbursements by the Federal Deposit Insurance Corporation, 1934- 

1978

Banks grouped by class of bank, year of deposit payoff or deposit

assumption, amount of deposits, and State...................................... 185

125. Recoveries and losses by the Federal Deposit Insurance Corporation on

principal disbursements for protection of depositors, 1934-1978 .. . 188

126. Analysis of disbursements, recoveries, and losses in deposit insurance

transactions, January 1, 1934-December 31, 1 978............................ 189

127. Income and expenses, Federal Deposit Insurance Corporation, by year,

from beginning of operations, September 11,1933, to December 31,

1978 ............................................................................................................ 190

128. Protection of depositors of failed banks requiring disbursements by the

Federal Deposit Insurance Corporation, 1934-1978 ............................ 191

129. Insured deposits and the deposit insurance fund, 1934-1978 .............. 192

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X

BACKGROUND

The Federal Deposit Insurance Corporation came into being during 

the economic and banking crises of the early 1930s, when thousands 

of banks were forced to close their doors. For over a century, it had 

proved impossible to overcome the impact of bank failures on 

noteholders and depositors. A number of States had tried various 

forms of insurance or guaranty plans, some with fair success, but all 

of these had become inoperative by 1933. While during the period 

1886-1933 numerous attempts were made to provide insurance protection to bank depositors on a national rather than statewide basis, it 

took the severe depression of the 1930s to convince the people of 

the nation that positive measures were required to eliminate the disastrous losses associated with bank failures.

The Federal Deposit Insurance Corporation was created by the 

Banking Act of 1933 to protect depositors in the nation's banking 

system, and to promote safe and sound banking practices. The Corporation accomplishes these purposes through a program of Federal 

deposit insurance and through the regulation and supervision at the 

Federal level of the more than 8,500 FDIC-insured State-chartered 

banks that are not members of the Federal Reserve System.

Incorporated banks and trust companies that are engaged in the 

business of receiving deposits may participate in Federal deposit 

insurance. This insurance is mandatory for national banks and State 

bank members of the Federal Reserve System. Of the 15,205 banks 

in operation in the United States at year-end 1978, including commercial banks and mutual savings banks, about 97 percent were 

insured by the FDIC.

Each depositor in an insured bank is protected by Federal deposit 

insurance on the aggregate of all deposits held in the same right and 

capacity up to the maximum limit provided by the Federal Deposit 

Insurance Act. The maximum was $2,500 when Federal deposit 

insurance became effective on January 1, 1934. Over the 44-year life 

of the deposit insurance program, the amount has been increased 

several times, with the most recent increase becoming effective on 

November 27, 1974, when the general limit was raised to $40,000.

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Federal Reserve Bank of St. Louis
XI

CHAIRMAN'S STATEMENT

An improvement in the nation's 

general economic condition during 

1978 resulted in a strengthening of the 

banking system. Preliminary profit 

figures indicate a recovery by many 

banks from the depressed levels of the 

1974-76 period. Industry improvement 

was reflected by the decline in the 

number of banks on the FDIC's 

problem list. Also, seven insured banks 

failed in 1978, continuing the decline 

begun in 1977 from the large number 

of failures in 1975 and 1976.

Maintaining the safety and soundness of the banking system is a primary 

function of the FDIC. While the FDIC's 

activities in carrying out this function 

have grown as banks have grown in 

size and expanded their services, it also 

has been given responsibilities for 

enforcing compliance by banks with an 

increasing number of laws designed to 

protect consumers and to safeguard 

equal opportunities and civil rights.

The FDIC's supervisory role was 

expanded greatly in 1978 by the 

enactment of two new laws— the International Banking Act of 1978 and the 

Financial Institutions Regulatory and 

Interest Rate Control Act of 1978.The 

International Banking Act provides for 

Federal regulation of foreign banking 

activities in domestic financial markets. 

The Financial Institutions Regulatory 

and Interest Rate Control Act covers 

several subjects relating to commercial 

and mutual savings banks, savings and 

loan associations, and credit unions. 

Among the provisions of the act most 

relevant to the FDIC are the expansion 

of the FDIC's enforcement powers, 

restrictions on loans by banks to their 

insiders, prohibitions on certain bank 

management interlocks, the authority 

over the establishment and operation 

of foreign branches by insured State 

nonmember banks, the authority to disapprove changes in control of insured 

State nonmember banks, and the raising of the deposit insurance limit on 

time and savings deposits in Individual 

R etirem ent A ccounts and Keogh 

accounts to $100,000.

Several regulations of major significance to banks and their depositors 

were issued during the year. The 

automatic transfer of funds from savings to checking accounts maintained 

in the same institution was authorized. 

Regulations governing savings and 

time deposits were amended to authorize the issuance of 6-month "money 

market" certificates of deposit and 8- 

year certificates paying a maximum of 

7-3/4 percent for commercial banks. 

The payment of interest on Treasury 

Tax and Loan Accounts was also 

authorized.

The Board in conjunction with the 

other Federal banking supervisory 

agencies has sought to obtain uniformity in many regulations applicable to 

all types of banks, and in some cases to 

all types of depository financial institutions. A number of uniform regulations 

and procedures were adopted during 

the past year, among them uniform rating systems for bank condition and 

electronic data processing and trust 

operations, guidelines for enforcing 

truth-in-lending laws, and f actors for 

evaiuating^country risk in foreigrijoans. 

The Board has also sought, wherever 

statutes permit, to simplify regulations 

and paperwork and, if possible, to 

avoid the imposition of additional 

regulations.

The recent emphasis on consumer 

protection, equal opportunities, and 

civil rights continued in 1978. As a 

result, an increasing amount of the 

Corporation's resources has been 

devoted to these activities. Regulations 

were adopted late in the year to carry 

out the provisions of the Community 

Reinvestment Act. New regulations 

also were adopted relating to the 

FDIC's enforcement of the Fair Housing 

Act and the Equal Credit Opportunity

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Federal Reserve Bank of St. Louis
XII FEDERAL DEPOSIT INSURANCE CORPORATION

Act, as it affects the home mortgage 

market. Some major studies are underway to assess the impact and effectiveness of some of the consumer protection laws. They include a study on 

the Home Mortgage Disclosure Act and 

another on mortgage market trends in 

Brooklyn, New York. The study of the 

Home Mortgage Disclosure Act is a 

comprehensive one being funded jointly by the FDIC and the Federal Home 

Loan Bank Board. The mortgage 

market study of Brooklyn will analyze 

real estate transactions from 1969 to 

1978. Examiners will use these data 

when conducting Community Reinvestm ent A c t exam inations, and 

economic analysis will attempt to explain trends in this market.

The examination process continues 

to be a focal point of FDIC regulatory 

activities; however, the examination 

perspective has changed in response to 

the changing banking industry and 

re g u la to ry e n v iro n m e n t. M ore 

emphasis is being placed on management policies of banks and the effectiveness of director oversight and less 

time is being directed to physical 

verification of assets held by banks. 

D irect com m unication w ith bank 

boards by the examining staff has 

increased, particularly in problem bank 

situations. Examination priorities have 

been established so that large banks or 

banks that present supervisory problems are examined more frequently and

extensively than small banks or banks 

that do not present problems.

U tilizing conditio n and income 

reports submitted by banks, financial 

analysts at the FDIC monitor bank perform ance between exam inations 

through a computerized information 

system. This system compiles data that 

permit an analyst to evaluate a bank's 

current condition.

Finally, examinations have been 

specialized due to the increasing scope 

of examinations and growth in technology and size of banks. Thus, the 

examination process has evolved from 

one report to a number of specialized 

examinations. Electronic data processing, trust, and consumer protection and 

civil rights compliance examinations 

have been added in recent years.

Over the years the Corporation's 

expanding activities have reflected the 

changes in the banking and regulatory 

environment. We at the FDIC feel that 

our organization has responded rapidly 

and effectively to these changes and 

are confident of our ability to do so in 

the future.

John G. Heimann 

Acting Chairman

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Federal Reserve Bank of St. Louis
[Ill I

1 1 1 

I I

iiiiuii

mum

OPERATIONS OF THE CORPORATION

PART ONE

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3

ADMINISTRATION OF

THE CORPORATION

Board of Directors. The FDIC is 

headed by a three-member Board of 

Directors, including the Comptroller of 

the Currency who acts as an ex-officio 

member. Two of the directors are 

appointed by the President with the 

advice and consent of the Senate for 

6-year terms, and one of those directors is elected Chairman by the Board. 

The Comptroller is also appointed by 

the President, but for a 5-year term. As 

required by law, Mr. John G. Heimann, 

Comptroller of the Currency, became 

the acting Chairman on August 16, 

1978, following the retirement of Mr. 

George A. LeMaistre. Mr. LeMaistre had 

served as a member of the Board since 

August 1, 1973 and as Chairman since 

June 1, 1977. Mr. William M. Isaac was 

appointed as a member of the Corporation's Board of Directors on 

March 28, 1978. The remaining position on the Board was vacant at yearend.

Organizational changes. On February 16, 1978, the Board of Directors 

established a Budget and Management 

Committee. The committee is responsible for reviewing existing and proposed 

projects, programs, and routine operating procedures, in terms of (1) the Corporation's mission and objectives, (2) 

cost effectiveness, (3) impact within 

and outside the Corporation, and (4) 

urgency and priority of resource allocations. The committee consists of the 

Deputy to the Chairman, the principal 

assistants to the other two members of 

the Board, the Controller, the Executive 

Secretary, and the General Counsel.

On April 25, 1978, the Board 

adopted a resolution creating the 

Office of Congressional Relations. This 

office is responsible for congressional 

and legislative relations and related

matters, and such other matters as 

may be designated by the Chairman 

and the Board of Directors. The office, 

which reports directly to the Board, 

was staffed by reassignment of certain 

positions and employees previously 

assigned to the Executive Office and 

Legal Division. On May 30, 1978, the 

Board dissolved the Office of Corporate Planning and the responsibilities of 

that office were assumed by the Division of Research, the Budget and 

Management Committee, and the 

Office of the Controller.

Employees. The total employment 

of the Corporation increased by 82 in 

1978 to a year-end total of 3,773. 

Approximately 70 percent of the Corporation's employees were assigned to 

the Division of Bank Supervision, and 

about 74 percent of that division's 

employees were field bank examiners. 

During the year, the number of commissioned examiners rose by 115 to a 

total of 1,138 at year-end. The turnover rate for field examiners was 8.0 

percent compared to 8.2 percent in

1977. Of the 158 examiners who left 

the FDIC during the year, 40 found 

employment in banks. The turnover 

rate for all employees excluding temporary personnel and college students 

participating in the cooperative workstudy program was 16.6 percent in

1978, compared to 11.2 percent in

1977.

The percentage of women in the 

C o rp o ra tio n 's general schedule 

workforce increased from 28.8 percent 

as of December 31, 1977, to 30.0 percent as of December 3 1 ,1 9 7 8 . During 

the same 12-month period, the percentage of minorities rose from 13.1 

percent to 13.8 percent. Continued 

progress is evident in the recruitment 

of women and minorities for positions 

as bank examiners. As of December

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Federal Reserve Bank of St. Louis
4 FEDERAL DEPOSIT INSURANCE CORPORATION

NUMBER OF OFFICIALS AND EMPLOYEES

OF THE FEDERAL DEPOSIT INSURANCE CORPORATION

DECEMBER 31, 1977 AND 1978

Washington Regional and

Unit Total office field offices

1978 1977 1978 1977 1978 1977

Total.............................................

Directors.....................................

Executive O ffices.....................

Legal Division...........................

Division of Bank Supervision ..

Division of Liquidation.............

Division of Management 

Systems and Financial

S tatistics...............................

Division of Research.................

Office of Congressional

Relations...................................

Office of the Controller............

Office of Corporate Audits 

Office of Consumer Affairs

and Civil Rights.......................

Office of Employee Relations .. 

Office of Personnel 

Management...........................

3,773* 3,691* 1,201

2 2 2

44 54** 44

105 104 86

2,648 2,564 376

459 479 194

191 191 191

31 17 31

5 0 5

186 178 170

34 30 34

13 11 13

9 9 9

1,183 2,572 2,508

2 0 0

54 0 0

87 19 17

372 2,272 2,192

195 265 284

191 0 0

17 0 0

0 0 0

163 16 15

30 0 0

'Includes nonpermanent employees on short-term appointment or when actually employed: 528 in 

1978 and 511 in 1977. Nonpermanent employees include college students participating in the 

work-study program, clerical workers employed on a temporary basis at banks in process of 

liquidation, and other personnel.

"Includes employees in the Office of Corporate Planning, which was dissolved in 1978.

46 52 46

11 0 0 

9 0 0

52 0 0

31, 1977, 9.3 percent and 5.5 percent 

of the examiner w orkforce were 

respectively women and minorities; by 

December 31, 1978, those percentages had increased to 10.9 percent 

and 6.0 percent.

Late in 1978, the FDIC adopted 

amendments to its regulations dealing 

with actual or apparent conflicts of 

interest by its employees. In general, 

these amendments (1) prohibit senior 

policymakers from obtaining credit 

from banks or affiliates of banks primarily supervised by the FDIC, (2) 

establish guidelines for ownership of 

bank-related securities, (3) eliminate 

disclosure requirements for certain 

financial interests owned by an 

employee's spouse or dependents, (4)

greatly increase the num ber of 

employees required to file disclosure 

statem ents, (5) establish form al 

guidelines for processing these statements, and (6) unite in one regulation 

the various disclosure systems used by 

the FDIC.

During 1978, four petitions to serve 

as exclusive representatives fo r 

bargaining units o f C orporation 

employees were filed with the Department of Labor by labor organizations. 

By year-end 1978, two bargaining 

units of bank examiners and one unit of 

clerical employees were represented by 

a labor organization, two of which were 

added during the year; two petitions 

for representation of other units 

remained pending.

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SUPERVISION OF BANKS 5

SUPERVISION OF BANKS

The FDIC has some supervisory 

authority over all insured banks, but its 

primary supervisory responsibilities are 

for insured State-chartered banks that 

are not members of the Federal 

Reserve System (insured State nonmember banks). As of December 31, 

1978, there were 9,152 insured nonmember commercial and mutual savings banks with assets of $453.6 billion. These banks accounted for 60.2 

percent of all the nation's banks and 

30.5 percent of the assets of all banks 

in the United States.

Examination activities. The FDIC's 

examination policy takes into account 

examination priorities, frequency, and 

scope, and specifies areas where the

FDIC Regional Directors may use discretion while still maintaining a uniformity of approach. Banks with known 

supervisory or financial problems are 

given first priority and receive a fullscale examination by the FDIC at least 

once every 12 months. Large banks 

(commercial banks w ith assets of 

$100 million or more and mutual savings banks with assets of $500 million 

or more) that do not present supervisory or financial problems receive a fullscale examination during each 18- 

month period. For smaller banks, a 

modified examination may be alternated with a full-scale examination if 

the banks do not present supervisory or 

financial problems and meet criteria 

indicating satisfactory management, 

adequate capital, acceptable fidelity

BANK EXAMINATION ACTIVITIES OF

THE FEDERAL DEPOSIT INSURANCE CORPORATION

IN 1977 AND 1978

Activity Number

1978 1977

Bank examination activities - total................................... 20,248 21,746*

Safety and soundness examinations............................. 6,961 7,473

Regular examination of insured banks

not members of Federal Reserve System................. 6,745 7,265

Re-examinations.............................................................. 149 181

Other examinations.................................................. . 67 27

Consumer protection examinations............................... 6,684 7,061

Examinations of departments......................................... 2,092 2,162

Trust departments............................................................ 1,387 1,425

Data processing facilities................................................ 705 737

Investigations...................................................................... 2,755 3,007

Application reviews.......................................................... 1,756 2,043

New banks: State banks members of

Federal Reserve System......................... 26 9

New banks: Banks not members of

Federal Reserve System............................................... 136 160

New branches.................................................................. 877 931

Mergers and consolidations............................................. 103 122

Other.................................................................................. 614 821

*This total does not agree with the total shown in the 1977 Annual Report (27,502) because of a 

new table format. For more meaningful reporting, the number of branches examined (7,314) was 

deleted and the number of examinations of data processing facilities (237) and certain application 

reviews (821) were added.

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FEDERAL DEPOSIT INSURANCE CORPORATION

S U P E R V IS O R Y CLASSES OF B A N K S IN TH E

U N ITED STATES, DECEM BER 31, 1978

Com m ercial Banks and M utual Savings Banks

N U M BER OF B A N K S

A S S E T S OF BA N KS

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SUPERVISION OF BANKS 7

coverage, good earnings, and adequate 

internal routine and controls. To 

increase director participation in the 

supervisory process, the examiner-incharge meets with either the board of 

directors or an appropriate committee 

o f the board at each fu ll-sca le 

examination, and more often if necessary. The Regional Director or his 

designated representative participates 

in the meetings if the banks has been or 

may be form ally designated as a 

problem bank.

The C orporation also reviews 

Reports of Examination for national 

and State-chartered banks that are 

members of the Federal Reserve 

System (State member banks). The 

reports for large banks that are not of 

special supervisory concern are 

reviewed annually and the reports for 

smaller banks are reviewed at least 

once every 3 years. Examination 

reports of banks that are of special 

concern, regardless of deposit size, are 

reviewed as soon as they are made 

available. Reports on the condition of 

bank holding companies, prepared by 

the Federal Reserve, are also reviewed 

regularly.

For the past several years, the Corporation has participated with various 

S ta te b a n k in g d e p a rtm e n ts in 

programs that share or reduce routine 

examination activities. In 1978 the 

Corporation entered into a Divided 

Examination Program with the States 

of Missouri and New Jersey. That 

program was initiated in Georgia in

1977 and continued there in 1978. 

Under the program, problem banks, 

other banks in need of special supervision, and large banks are examined by 

both the FDIC and the State supervisor 

at least once each year. Examinations 

of the remaining banks are divided between the State supervisor and the 

FDIC and the supervisors alternate 

examination of these banks annually. 

Either supervisor may modify or cancel

the divided examination arrangement 

without prior notice.

Problem banks. The general decline 

in the number of banks on the FDIC's 

list of problem banks, which had 

peaked at 385 in November 1976, 

continued through 1978. After remaining relatively steady during the first few 

months of the year, the list of problem 

banks declined to 342 by year-end 

1978, a net reduction of 26 for the 

year. The continued reduction of the 

number of problem banks reflected the 

improvement in the economy and, in 

particular, the continuing improvement 

in the real estate sector and improved 

agricultural prices, areas that had 

caused problems for many banks in the 

recent past.

The problem bank list is far from 

static and most banks do not remain on 

the list very long. During 1978, 192 

banks were removed from problem 

status, while 166 banks were added to 

the list. Problems in the newly designated problem banks included lack of 

adequate liquidity, asset deficiencies 

resulting fro m m ism anagem ent or 

insider abuses, poor earnings, and 

inadequate capital. Of those banks on 

the list at the end of 1978, 50 percent 

had been in problem status for 18 

months or less, while only 23 percent 

had been on the list for more than 3 

years.

In light of the FDIC's role as the 

insurer of bank deposits, the FDIC 

problem list includes national banks 

and State member banks as well as 

nonmember insured banks. There is 

some overlap between those banks 

considered by the Comptroller of the 

Currency and the Federal Reserve to be 

in need of close supervision and the 

banks on the FDIC's problem bank list, 

but not all banks being closely supervised by the Comptroller of the Currency and the Federal Reserve are on the 

FDIC's problem list. Many of those

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Federal Reserve Bank of St. Louis
8 FEDERAL DEPOSIT INSURANCE CORPORATION

banks are strictly supervisory problems 

and do not represent an undue risk to 

the Corporation's insurance fund. The 

FDIC Regional Offices maintain similar 

lists of banks in need of close supervision but not formally designated as 

problems by the Corporation.

For purposes of insurance risk 

exposure, the FDIC list divides the 

problem banks into three categories:

Serious Problem - Potential 

Payoff: An advanced serious problem 

situation with an estimated 50 percent 

chance or more of requiring financial 

assistance from the FDIC.

Serious Problem: A situation 

that threatens ultimately to involve the

FDIC in a financial outlay unless drastic 

changes occur.

O ther Problem : A situation 

wherein a bank contains significant 

weaknesses but where the FDIC is less 

vulnerable. Such banks require more 

than ordinary concern and aggressive 

supervision.

A review of the problem bank list 

since year-end 1973 indicates that 

about 30 percent of the banks that at 

one time or another were considered 

Serious P roblem -P otential P ayoff 

ultimately did fail. An additional 10 percent were merged with other banks 

without financial assistance from the 

Corporation. Financial assistance from

NUM BER OF PROBLEM BANKS

1 9 7 0 -1 9 7 8

Number of Banks 

4 0 0 ------------------

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SUPERVISION OF BANKS 9

the Corporation was received by 2 percent. Fifty percent received a less 

severe rating or were removed from 

problem status. The two most serious 

categories accounted for 93 of the 

problem banks at year-end 1978, 

down from 112 at the end of 1977.

The number of problem banks at 

year-end 197 8 broken down by 

deposit size was:

Deposit size Number

of banks

Less than $25 million 233

$25-$50 million 48

$50-$ 100 million 24

$100-$500 million 26

$500 million-$1 billion 5

Over$1 billion 6

TOTAL 342

Banks on the problem list had total 

deposits of $64 billion. The total number of banks on the problem list represented only about 2 percent of all the 

banks insured by the FDIC.

During 1978 the FDIC expanded its 

program of notifying the directors of 

nonmember banks when their bank is 

recommended for problem status, a 

program that had been tried experimentally in two regions during 1977. 

Also, the examiner-in-charge and a 

representative of the Regional Office 

meet with the directors of a problem 

bank at the conclusion of each 

examination. This program is useful not 

only in keeping the directors of 

problem banks informed of the Corporation's concern about their bank, 

but also in pointing out the responsibilities and duties of the directors in 

developing and implementing corrective programs.

Trust departments. A State nonmember bank wishing to operate a 

trust department must receive the Corporation's consent to exercise trust 

powers. The Corporation supervised

2,01 7 trust departments in State nonmember banks, with 58 new ones 

beginning operations, in 1978. Each of 

these trust departments is regularly 

examined by FDIC examiners.

Beginning in 1978, the annual 

survey that trust departments submit 

to the FDIC was revised to require that 

banks report only those assets over 

which they exercise investment discretion. The objective of this change is to 

provide more meaningful information 

about the extent of investm ent 

authority and control over trust and 

agency assets administered by bank 

trust departments.

Examiner training. The Corporation 

has a well-established training program 

directed toward maintaining highly 

qualified examiners. Courses on such 

subjects as bank examination fundamentals, examination of computerized 

banks, accounting and auditing techniques, financial analysis, and FDIC 

policies and regulations are offered. 

Content of these courses is updated 

and new courses are frequently added 

to the program in response to current 

banking developments. In recent years, 

extensive training on consumer protection laws and their enforcement has 

been provided. In 1978, EDP training 

was expanded to include a course in 

mini-computers and a course in bank 

analysis using externally available information was added.

Uniform supervision. The Corporation works with the other Federal banking agencies to develop to the extent 

possible uniform supervisory policies 

and procedures and to eliminate 

unnecessary duplication of regulatory 

effort. An Interagency Supervisory 

Committee, which includes representatives from the three Federal banking 

agencies as well as the Federal Home 

Loan Bank Board and the National 

Credit Union Adm inistration, was

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10 FEDERAL DEPOSIT INSURANCE CORPORATION

established in early 1 977 to coordinate 

certain supervisory policies and procedures. The committee already has a 

number of accomplishments, including 

the establishment of uniform bank, 

EDP, and trust rating systems; the continuation of a program for rating and 

reviewing shared national credits (loans 

of $20 million or more to one borrower 

shared by two or more banks); agreement upon a definition of a concentration of credit; the adoption of the 

annual Trust Department Report and 

the Country Exposure Report; and the 

issuance of a joint policy statement and 

the establishment of examination procedures covering improper or illegal 

payments by banks and bank holding 

companies.

The uniform interagency system for 

rating the condition and soundness of 

the nation's banks, adopted in 1978, is 

based upon an evaluation by examiners 

of five key measures of a bank's operation that reflect an institution's financial condition, compliance with banking 

statutes and regulations, and overall 

operating soundness. The specific 

dimensions appraised are capital adequacy, asset quality, management, 

earnings, and liquidity. Based on its 

summary rating, a bank is placed in one 

of five groups, ranging from banks that 

are sound in almost every respect to 

those with weaknesses that require 

immediate corrective action and constant supervisory attention.

The agreement by the Federal bank 

supervisory agencies on what constitutes the main elements of a bank's 

operation and condition, and on how 

these elements can be combined into 

an overall rating, provides a basis for 

comparable appraisals by the agencies 

of all of the nation's federally insured 

banks. The adoption of the uniform rating system also makes possible more 

meaningful reporting on the condition 

of the nation's banking system to the 

Congress and the public. The ratings

for individual insured nonmember 

banks are confidential.

A new uniform interagency trust rating system also was implemented in 

1978. Bank examiners assess a trust 

departm en t's adm inistratio n and 

operations in such areas as the department's management capabilities, the 

soundness of the policies and procedures to carry out the department's 

fiduciary obligations, the quality of service rendered to the public, and the 

effect of the department's activities on 

the soundness of the bank. As in the 

past, these ratings are considered confidential by the banking agencies.

Financial Institutions Regulatory 

and Interest Rate Control A ct of 

1978. Bank supervision in a number of 

areas was affected by a comprehensive act passed late in 1978. The 

Financial Institutions Regulatory and 

Interest Rate Control Act of 1978 

(FIRIRCA) expands the Federal financial 

regulatory agencies' enforcem ent 

powers, imposes restrictions on lending to "bank insiders," and authorizes 

the agencies to disapprove changes in 

control of financial institutions. The 

FIRIRCA also provides the FDIC with 

authority over the establishment and 

operation of foreign branches and 

foreign bank acquisitions by insured 

State nonmember banks. Other provisions of the act that importantly affect 

the FDIC are the raising of the deposit 

insurance limit for time and savings 

deposits in Individual Retirem ent 

Accounts and Keogh accounts from 

$40,000 to $100,000, and the extension of the authority to establish ceilings on interest rates paid by financial 

in stitu tio n s on tim e and savings 

deposits.

Interest rate regulations. The FDIC 

amended its regulations to permit 

insured State nonmember banks to 

transfer funds automatically from an

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SUPERVISION OF BANKS 11

individual's savings account to a 

checking or other account of the same 

depositor. The FIRIRCA subsequently 

imposed a limitation requiring that the 

interest rate that could be paid on savings deposits from which automatic 

transfers may be made was not to 

exceed the maximum rate of interest a 

commercial bank may pay on savings 

deposits. The FDIC amended its regulations to limit the maximum rate payable 

by mutual savings banks on savings 

deposits subject to automatic transfer 

authorizations to not more than the 

commercial bank rate.

Another amendment made in 1978 

provides for a money market certificate 

of deposit. This is a variable rate time 

deposit of $10,000 or more with a 

maximum rate equivalent to each 

week's Treasury auction discount rate 

on 6-month Treasury bills and with a 

fixed term of 26 weeks. This deposit 

category is designed to permit banks to 

compete for short-term money market 

funds.

The regulations were also amended 

to provide for a new category of 8-year 

time deposits with a 7-3/4 percent 

maximum interest rate for commercial 

banks and an 8 percent maximum for 

mutual savings banks. Individual Retirement Account, Keogh Plan, and public 

unit time deposits were made eligible 

for the 8 percent rate.

Effective May 11,1978, an amendment was made to allow insured State 

nonmember banks to pay interest on 

Treasury tax and loan accounts (TTLs). 

According to recent Treasury regulations, interest must be paid on such 

accounts that are in the nature of overnight borrowings. In effect, the Treasury regulations require payment of a 

higher rate of interest than the rate 

which normally may be paid on a 

bank's short-term funds. The amendment to the FDIC regulation has the 

effect of exempting TTLs from the 

interest rate restrictions in Section

329.10 by expanding the regulation's 

exceptions to include obligations of 

both the United States and its agencies.

Enforcem ent proceedings. Upon 

finding that an insured State nonmember bank has operated in an unsafe or 

unsound manner or has violated an 

applicable law, rule, regulation, or w ritten agreement entered into with the 

FDIC, the FDIC may initiate a ceaseand-desist proceeding if the bank does 

not correct the violations or unsound 

banking practices. If the bank does not 

observe a cease-and-desist order, the 

FDIC may seek enforcement in a U.S. 

District Court or it may initiate proceedings to terminate deposit insurance. 

Also, where an insured bank's condition has become unsound, the FDIC 

may initiate proceedings to terminate 

the bank's deposit insurance.

The FDIC may issue cease-anddesist orders under Sections 8(b) and 

8(c) of the Federal Deposit Insurance 

Act. During 1978, there were 51 such 

actions authorized by the Board of 

D irectors w hich resulted in the 

issuance of 26 final orders under Section 8(b) and 5 temporary cease-anddesist orders under Section 8(c). In 

addition, six final orders were issued 

during the year covering the ceaseand-desist proceedings initiated during

1977. During 1978, the FDIC also 

brought an enforcement action in the 

appropriate United States District 

Court against one bank for violations of 

a Section 8(b) order.

The C orporation has used its 

authority to issue cease-and-desist 

orders as a means to achieve correction of certain weaknesses in banks 

more frequently in recent years. It first 

used the authority in 1971 and from 

1971 through 1975 issued 37 ceaseand-desist orders. In the last 3 years it 

has issued 118 orders under Sections 

8(b) and 8(c). For the first time the

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Federal Reserve Bank of St. Louis
12 FEDERAL DEPOSIT INSURANCE CORPORATION

FDIC issued a cease-and-desist order 

during 1978 against a bank for the sole 

purpose of correcting unsatisfactory 

operations in the bank's trust department operations. Four other ceaseand-desist orders were issued to correct violations of various consumeroriented laws and regulations. The 

remaining 32 orders were issued primarily for the purpose of correcting 

unsatisfactory financial conditions or 

management practices.

The FIRIRCA gives the Federal banking supervisors expanded authority to 

issue cease-and-desist orders. In addition, it gives the banking supervisors 

the power to levy fines of up to $1,000 

per day on both banks and bankers for 

certain violations.

The FDIC may initiate terminationof-insurance proceedings under Section 8(a) of the Federal Deposit 

Insurance Act if it finds that a bank has

been conducting its affairs in an unsafe 

or unsound manner and is in an unsafe 

or unsound financial condition. If a 

bank does not correct deficiencies 

noted by the FDIC within a prescribed 

time period after notification, an 

administrative hearing is held at which 

the bank can respond to the Corporation's charges. If the charges are substantiated, the FDIC may terminate the 

insured status of the bank. The depositors of the bank are then notified of the 

termination, but each deposit (less subsequent withdrawals) continues to be 

insured for 2 years.

During 1978, the FDIC initiated 

three term ination-of-insurance proceedings by issuing Findings of Unsafe 

or Unsound Practices and Condition 

and Orders of Correction. All three proceedings were still pending at year-end. 

From 1934 to 1978, action was taken 

under Section 8(a) against a total of

CEASE-AND-DESIST ORDERS AND ACTIONS TO CORRECT

SPECIFIC UNSAFE OR UNSOUND PRACTICES OR VIOLATIONS

OF LAW OR REGULATIONS, 1976, 1977, AND 1978

1978 1977 1976

Actions authorized by Board of Directors........................................... 51 50 41

Actions in negotiation at end of year.................................................. 22 6 15

Cease-and-desist orders outstanding at beginning of year-total ... 65 36 15

Section 8(b)........................................................................................... 63 34 15

Section 8(c)........................................................................................... 2 2 0

Cease-and-desist orders issued during year-total............................. 31 39 26

Section 8(b)........................................................................................... 26 31 21

Section 8(c)......................................................................................... 5 8 5

Cease-and-desist orders issued in actions authorized in prior

year-total............................................................................................. 6 13 3

Section 8(b)........................................................................................... 6 13 3

Cease-and-desist orders terminated-total......................................... 32 23 8

Section 8(b)........................................................................................... 28 15 5

Section 8(c)........................................................................................... 4 8 3

Cease-and-desist orders in force at end of year-total....................... 70 65 36

Section 8(b)........................................................................................... 67 63 34

Section 8(c)........................................................................................... 3 2 2

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SUPERVISION OF BANKS 13

243 banks, and 240 cases had been 

closed at the end of 1978. In slightly 

less than one-half of the closed cases, 

corrections were made, and in most of 

the other closed cases the banks were 

absorbed by other insured banks or 

ceased operations prior to the establishment of a date for deposit insurance 

termination. In 15 cases, insurance was 

terminated or the bank ceased operations following the fixing of a date for 

insurance termination.

Under Section 8(e) of the Federal 

Deposit Insurance Act, the FDIC may 

remove an officer, director, or other 

person participating in the management of an insured State nonmember 

bank if it determines that the person 

has violated a law, rule, regulation, or 

final cease-and-desist order; has 

engaged in unsafe or unsound banking 

practices; or has breached his fiduciary 

duty. The individual's action also must 

involve personal dishonesty and entail 

substantial financial damage to the 

bank, or seriously prejudice the 

interests of the bank's depositors. The 

FIRIRCA amended Section 8(e) to allow 

for action where the individual has 

received fin a n c ia l gain or has 

demonstrated a willful or continuing 

disregard for the safety and soundness 

of the bank. During 1978, no removal 

proceedings were initiated.

Section 8(g) of the Federal Deposit 

Insurance Act authorizes the Corporation to suspend or remove officers, 

directors, and other persons participating in the affairs of insured State nonmember banks who are indicted for a 

felony involving dishonesty or a breach 

of trust. Three individuals were suspended during 1978.

Bank control and insider transactions. Insured State nonmember banks 

must report to the FDIC any change in 

the bank's outstanding voting stock 

that will result in a change of control of 

the bank. During 1978, 521 notices

were filed with the Corporation. In connection with a change in control, an 

insured bank must also report the 

change or replacement of its chief 

executive officer or any director occurring within the subsequent 12-month 

peiod.

The FIRIRCA gives the Corporation 

and the other Federal banking agencies 

the power to disapprove changes in 

control of insured banks and bank 

holding companies. Persons acquiring 

control of an insured State nonmember 

bank will be required to provide 60 

days' prior written notice of their intentions to the Corporation, including 

detailed personal background and 

financial data, contemplated organizational changes, and information relating 

to the terms and financing of the proposed acquisition. After considering 

the views of the State supervisory 

authority, the Corporation may disapprove the proposed acquisition on the 

basis of anticom petitive considerations, or if the financial status, competence, experience, and integrity of the 

acquiring persons or their management 

might jeopardize the financial stability 

of the bank or would prejudice the 

interests of the depositors. In addition, 

the reports required relating to changes 

in chief executive officers and directors 

occurring w ithin 12 months of a 

change in control have been expanded 

by the 1978 legislation to include 

information on past and present business and professional affiliations.

The FIRIRCA also addresses many 

of the areas covered by a special 

survey of bank stock loans, loans to 

officials and major shareholders of 

other banks, and insider loans and 

overdrafts, which was conducted at 

the request of the U.S. Senate Banking 

Committee in October 1977. This 

survey of all insured commercial banks, 

conducted jointly by the three Federal 

bank supervisory agencies, was completed in March 1978 and revealed that

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14 FEDERAL DEPOSIT INSURANCE CORPORATION

in a small percentage of cases, a bank's 

insiders, insiders of other banks, or 

public officials were given special consideration. The majority of instances of 

preferential interest rates reported by 

State nonmember banks had already 

been identified during FDIC examinations.

The FIRIRCA imposes restrictions on 

lending to bank insiders of correspondent banks. It prohibits loans or extensions of credit to these individuals that 

are not made on substantially the same 

terms as those for comparable transactions with other persons. The act also 

places limits on borrowings from a 

bank by its executive officers and 

shareholders owning 10 percent or 

more of its stock.

International banking. The Corporation's involvement in the area of 

in te rn a tio n a l banking increased 

markedly during 1978 and resulted in 

new supervisory approaches to this 

important segment of the banking 

business. Much of the increase can be 

traced to the FIRIRCA and the International Banking Act of 1978, which 

added significantly to the Corporation's 

supervisory responsibilities.

Under the FIRIRCA, State nonmember insured banks must now obtain the 

prior written consent of the Corporation before establishing or operating a 

foreign branch, or before obtaining any 

interest in a bank or other entity 

organized under the laws of a foreign 

country.

The International Banking Act is 

intended to provide a framework for 

Federal supervision and regulation of 

foreign banks operating in the United 

States through branches, agencies, or 

commercial lending companies in a 

manner similar to domestic banks. 

Specifically, it provides foreign banks 

w ith the option of establishing a 

Federal branch, with the approval of 

the Office of the Comptroller of the

Currency, in any State where the 

establishment of a branch or agency is 

not prohibited by State law and where 

the bank does not presently have 

State-chartered branches or agencies. 

It gives the Corporation primary supervisory responsibility for insured Statelicensed branches. This act also provides for interstate branching by 

foreign banks under certain conditions.

Under the International Banking Act, 

no foreign bank may establish or operate a Federal branch that receives 

deposits of less than $100,000 w itho u t o b ta in in g F e d e ra l d e p o s it 

insurance. In States that require deposit 

insurance for State-chartered banks, 

State branches that receive deposits of 

less than $100,000 must be insured. 

An exemption from mandatory deposit 

insurance may be granted, by the FDIC 

in the case of a State-licensed branch 

or by the Comptroller of the Currency 

in the case of a Federal branch, if the 

branch is not engaging in domestic 

retail deposit activity. Foreign bank 

branches that are not subject to mandatory insurance may voluntarily apply 

for Federal deposit insurance coverage.

In keeping with the objective of 

striving toward a uniform approach to 

common examination problems, the 

th re e Federal banking agencies 

adopted procedures for evaluating and 

commenting on country risk factors in 

the international loan portfolios of U.S. 

banks. Country risk in bank lending 

refers to the possibility that economic, 

political, or social conditions in a country might create a situation in which 

borrowers in that country would be 

unable to service or repay their debts to 

foreign lenders in a timely manner.

Under the new system, examiners 

will segregate country risk factors from 

the evaluation of other lending risks 

and will assess bank management's 

ability to analyze and monitor country 

risk in its international lending. The new 

procedure will emphasize diversification of exposure to individual countries

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SUPERVISION OF BANKS 15

as the primary method of moderating 

country risk in international portfolios. 

Examiners will adversely classify a 

bank's aggregate credits to a country 

on the basis of country risk only when 

there has been an interruption in debt 

servicing or when such an interruption 

is considered imminent. The commercial credit risks in the bank's international portfolios will continue to be 

assessed on an individual loan basis in 

accordance with traditional standards 

of credit analysis.

The Country Exposure Report is an 

outgrowth of an experimental program 

initiated by the three Federal bank 

supervisory agencies in June 1977. 

Due to the success of this program, the 

agencies agreed to make the report 

mandatory for any domestic bank with 

a foreign branch, a foreign subsidiary, 

or an Edge Act or Agreement corporation and aggregate foreign claims in 

excess of $20 million. This semiannual report is intended to capture 

data on foreign credit activity of U.S. 

banks in all countries, by type of borrower and maturity of claims. Banks are 

also required to report firm commitments to extend additional credit in any 

country.

In response to the Corporation's 

increased involvement in international 

banking, a concerted effort has been 

made to enhance the expertise of its 

sta ff in this area. A number of 

examiners have attended specialized 

courses and seminars designed to 

increase their knowledge of international banking activities. In 1979, it is 

anticipated that the Corporation will 

join with the other two Federal bank 

supervisory agencies in a joint 2-week 

international banking school with the 

objective of making this program a 

required course for examiners encountering international activities in their 

bank examination work. The Corporation has also created a staff position in 

its Washington Office with the specific 

responsibility of focusing on international activities of domestic banks and 

domestic operations of foreign banks.

A pplications. State nonmember 

banks must apply to the FDIC to obtain 

deposit insurance. The Corporation's 

approval is also required before an 

insured nonmember bank may establish a new branch office or relocate an 

existing office. The FDIC also rules on 

merger transactions when the surviving 

bank is to be an insured State nonFDIC APPLICATIONS

1978 1977

Deposit insurance—to tal.................................................... 98 104

Approved......................................................................................... 94 98

Denied............................................................................................... 4 6

New branches (prior consent)-total............................................ 1,055 974

Approved......................................................................................... 1,045 969

Branch.................................................................... 680 691

Limited Branch.............................................................. .......... 162 194

Remote Service Facility.................................... ........ 203 84

Denied.......................................................................... 10 5

M ergers*-total................................................................................. 70 76

Approved............................................................................ ............ 65 72

Denied.................................................................................. ............ 5 4

’ Certain mergers undertaken as part of internal reorganizations not included.

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16 FEDERAL DEPOSIT INSURANCE CORPORATION

member bank, or in any merger of an 

insured bank with a noninsured institution. During 1978, the FDIC considered 

98 applications for Federal deposit 

insurance, including 36 from State 

member banks which applied for continuation of their insured status following voluntary withdrawal of their membership from the Federal Reserve 

System, and 1,055 applications to 

establish new branches or operate 

limited branch facilities. It acted on 70 

merger-type proposals, including 7 

emergency cases, in 1978.

In approving or denying such 

applications, the Corporation considers 

such factors as the bank's financial 

history and condition, its capital adequacy, its future earnings prospects 

and management, the needs of the 

community to be served, and in a 

merger or consolidation, the competitive effects of the transaction. In addition, as required by the Community 

Reinvestment Act of 1977 which 

became effective in 1978, the Corporation also takes into account the 

record of a financial institution in meeting the credit needs of its community, 

including low- and moderate-income 

neighborhoods. A bank's poor performance in meeting the credit needs of 

its community may be grounds for 

denial of an application.

Reports and surveys. In carrying 

out its broad supervisory responsibilities, the FDIC requires reports on 

certain activities of insured nonmember 

banks. The Corporation administers 

and enforces the registration and 

reporting provisions of the Securities 

Exchange Act of 1 934 with respect to 

insured nonmember banks. The number of registered banks reporting to the 

FDIC was 377 at year-end 1978 compared to 357 the year earlier. State 

nonmember banks acting as registrars 

and transfer agents for certain classes 

of securities must also register with the

Corporation. Late in 1978, amendments to FDIC regulations made its 

securities disclosure requirem ents 

substantially similar to those of the 

Securities and Exchange Commission, 

in accordance with Section 1 2(i) of the 

Securities Exchange Act.

All federally insured banks are 

required to file Reports of Income and 

Condition with their respective Federal 

bank supervisory agency. State nonmember banks and mutual savings 

banks file their reports with the FDIC. 

The FDIC may assess a penalty against 

a bank for late filing of these reports. In 

the first court challenge to a penalty 

imposed under Section 7(a)(1) of the 

Federal Deposit Insurance Act, a 

Federal judge in Texas recently upheld 

a $1,000 fine assessed against a 

Texas bank. The court dismissed the 

allegation that the Corporation's action 

was arbitrary, capricious, and an abuse 

o f d is c re tio n (Federal Deposit

Insurance Corporation v. The Bevans

State Bank of Menard' No. CA-6-78- 

0025 (N.D. Tex. Nov. 22, 1978)).

The Reports of Income and Condition for commercial banks were revised 

at the end of 1978. As a result of these 

revisions, which were made jointly by 

the three Federal bank agencies, more 

information will be provided on banks 

with foreign offices. Also, for the first 

time, small banks (those with less than 

$100 million in total assets) could 

choose to file shorter versions of the 

Reports of Income and Condition. Revisions to the Reports of Income and 

Condition for mutual savings banks, 

after being presented to the industry 

for comments, were adopted at yearend and will go into effect with the 

March 1979 reports.

In addition to its continuing surveys, 

the Corporation in conjunction with the 

Federal Reserve Board conducted 

statistical sample surveys on money 

market certificate activity and the automated transfer of funds from savings

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BANK CLOSINGS AND LIQUIDATION ACTIVITIES 17

to checking accounts. Information from 

these surveys is used by the Federal 

Reserve Board to assess and monitor 

the economic effect of these new 

financial transactions. Also in 1978, 

information on holdings of New York 

City obligations and of Cleveland 

obligations was requested from certain 

banks.

Computerized analysis. The Integrated Monitoring System (IMS) is a 

com puterized inform ation system 

designed to monitor bank performance 

between examinations and aid in the 

examination process. Currently this 

system is applied only to insured nonmember commercial banks, but it is 

expected to be expanded to include 

insured mutual savings banks in 1979.

From data submitted by banks in 

their Reports of Condition and Income, 

the IMS performs certain basic tests 

which measure a bank's capital adequacy, liquidity, asset and liability mix 

and growth, and profitability. If a bank 

fails one or more of the tests, additional 

data are obtained for further analysis. 

Where analysis indicates a potential 

p ro b le m or adverse c o n d itio n , 

appropriate supervisory action is initiated, such as a visitation or an early 

examination. The system enables the 

Corporation to identify with greater 

accuracy banks, or particular aspects 

of a bank's operation, that especially 

merit closer supervisory attention, 

thereby facilitating a swifter and more 

effective response by the Corporation.

In the coming year, the Comparative 

Performance Report will serve to supplement the Integrated Monitoring 

System data given to FDIC examiners 

and financial analysts. This report is a 

revision of the Comparative Performance Tables the FDIC sends to banks, 

which show data based on their 

Reports of Income and Condition. Many 

of the changes in the report resulted 

from the responses of nearly 4,300

bankers to a survey of their informational needs sent in early 1978.

In 1978 the Corporation's computerized on-line system was upgraded 

to improve the speed and efficiency 

with which examination and other bank 

reports are edited and processed. The 

system is designed to accommodate 

additions, such as those required by 

the new interagency uniform bank rating system, and modifications to the 

examination and report forms. By 

redesigning the computerized bank 

structure data base and the systems 

for processing banks' Reports of 

Income and Condition, and by installing 

a new computer which processes data 

three times faster than the model it 

replaced, the Corporation is now able 

to provide information more quickly to 

the banking community.

BANK CLOSINGS AND

LIQUIDATION ACTIVITIES

Federal deposit insurance covers the 

aggregate deposits of individuals and 

businesses in each insured bank up to 

$40,000 and, as provided by the 

Financial Institutions Regulatory and 

Interest Rate Control Act of 1978, 

covers Individual Retirement Accounts 

and Keogh accounts up to $100,000. 

Time and savings deposits held by 

government units (except deposits held 

in out-of-State banks) are insured up to 

$ 1 0 0 ,0 0 0 for each depositor. On 

December 31, 1978, nearly 98 percent 

of all commercial banks in the United 

States and about 70 percent of all 

mutual savings banks were covered by 

Federal deposit insurance.

When an insured bank fails, the FDIC 

has two principal methods available to 

protect the depositors: the deposit 

assumption method and the deposit 

payoff method. In the 548 insured 

bank failures that have required Corporation disbursements since 1934,

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Federal Reserve Bank of St. Louis
FEDERAL DEPOSIT INSURANCE CORPORATION

DEPOSITS A N D LOSSES IN ALL INSURED BA N KS

REQUIRING DISBURSEM ENTS BY FDIC, 1934-1978

TOTAL DEPOSITS

$7.29* billion

DISBURSEMENTS BY FDIC*' 

$5.07 billion

••Includes collections and disbursements by liquidators in the I,eld ($1.5 billion) which were previously excluded from this chart.

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Federal Reserve Bank of St. Louis
BANK CLOSINGS AND LIQUIDATION ACTIVITIES 19

244 were deposit assumption cases 

and 304 were direct payoff cases. In a 

deposit assumption case, the depositors' accounts in the failed bank 

become deposit accounts in the 

assuming bank. All depositors are 

thereby afforded full protection with 

minimal, or no, disruption of banking 

services to the community. When the 

deposit payoff method is used, the 

FDIC pays directly to depositors the net 

amount eligible for deposit insurance. 

These payments begin usually within 5 

to 7 days of the bank closing. Payments of the uninsured portions of 

deposits are made from the proceeds 

of liquidated assets and other sources.

The FDIC may also provide direct 

assistance to an operating insured bank 

in danger of failing to enable it to 

remain open if that bank is essential to 

maintain adequate banking services in 

a community. It has provided such 

assistance in four cases, most recently 

in 1976.

In the 548 failed bank cases, 99.8 

percent of the depositors had received 

or were assured of payments of their 

deposits in full at the end of 1978, and 

99.8 percent of the total deposits had 

been paid or made available to them. In 

the 304 deposit payoff cases, more 

than 98.8 percent of depositors had 

received full recovery, and while the 

recovery of uninsured deposits varies 

between individual cases, in the 

aggregate almost 97 percent of total 

deposits had been paid or made available. About 70 percent of the total 

amount already recovered by or made 

available to depositors in deposit 

payoff cases was provided by FDIC 

payments of insured deposits, with 

additional amounts provided from the 

proceeds of liquidated assets, offsets 

against indebtedness, and pledged 

assets.

Bank fa ilu re s in 1978. Seven 

insured banks ranging in deposit size

from about $1 million to about $608 

million failed in 1978. The Corporation 

used the direct payoff method in one 

case and assisted sound banks to 

assume the deposits of the other six 

banks. The assuming banks paid 

purchase premiums totaling $42.3 million. The purchase premiums are added 

to the capital cushion available to the 

FDIC to absorb losses.

In the largest insured bank failure in 

1978, the Corporation arranged an 

assumption of the $607.6 million in 

deposits of Banco Credito y Ahorro 

Ponceno, Ponce, Puerto Rico— and for 

the first time, the deposits of a failed 

bank were divided between tw o 

assuming banks. Banco Popular de 

Puerto Rico, San Juan, acquired 36 

offices comprising approximately twothirds of the deposits of the failed bank 

and also the bank's trust department. 

The other 14 offices, including the 

New York branch office, were taken 

over by Banco de Santander-Puerto 

Rico, San Juan. By allowing the two 

purchasers to select those branches 

which more closely fit their operations 

and competitive requirements, substantial purchase prem ium s were 

received, and the anticom petitive 

effects of one very large bank acquiring 

another were avoided.

The one statutory payout in 1978 

was of the Watkins Banking Company 

in Faunsdale, Alabama, a small bank 

with less than 500 depositors. Virtually 

all the deposits of approximately $1 

million were either secured or within 

the $40,000 FDIC insurance maximum.

Litigation on standby letters of 

credit. After United States National 

Bank failed in October 1973, the FDIC 

arranged for Crocker National Bank to 

assume approximately $1 billion in 

deposit and other liabilities. However, 

C rocker did not assume certain 

standby letters of credit issued by

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Federal Reserve Bank of St. Louis
20 FEDERAL DEPOSIT INSURANCE CORPORATION

USNB to guarantee the debts of companies dominated by C. Arnholt Smith 

and his associates. Two holders of 

such standby letters of credit, First 

Empire Bank and Societe Generale, 

sued the FDIC, maintaining that the 

bank's obligations to them should have 

been provided for in the same way as 

those assumed by Crocker since they 

were not associated with Smith. A 

federal district court in California held 

that the FDIC, in determining not to pay 

those suspect letters of credit, had properly exercised the discretion granted to it

under Federal banking law. That decision 

was appealed to the Ninth Circuit Court 

of Appeals and was reversed in favor of 

th e le tte r o f c r e d it h o ld e rs 

[First Empire bank v. Federal Deposit

Insurance Corporation, 572 F.2d 1361 

(9th Cir. 1978)). In October 1978, the 

Supreme Court declined to review the 

Ninth Circuit's opinion. The effect of 

that denial is that the FDIC must pay 

the amount due on the letters of credit 

that were not assumed by Crocker. The 

FDIC has provided for the liability in its 

reserve for potential losses in litigation.

IN S U R E D B A N K FA ILU R ES

1 9 3 4 - 1 9 7 8

Number of banks

8 0 -------------------------------------------------------------------------------------------------------

70 ■

60-

[ I Deposit Pa yo ff

Deposit Assumption

50

4 0-

1

0

0 \m m m m m m m m m m m rnm m m m m m m m m m nm i Ifflyy^^illillilCHr^r'nN n i n i i t it m m u m m m m n m m m m m m ylnJUi]Ji II

1934 '36 '38 '40 '42 '44 '46 '48 '50 '52 '54 '56 '58 '60 '62 '64 '66 '68 70 72 74 76 78

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Federal Reserve Bank of St. Louis
BANK CLOSINGS AND LIQUIDATION ACTIVITIES 21

INSURED BANKS CLOSED DURING 1978 REQUIRING DISBURSEMENTS

BY THE FEDERAL DEPOSIT INSURANCE CORPORATION

Amount of

Date of Number of deposits (in

deposit payout depositors millions of

Name and location or assumption or accounts dollars)

The Drovers' National Bank 

of Chicago

Chicago, Illinois....................... January 19, 1978 43,800 197.2

First Bank of Macon County

Notasulga, Alabama............... January 26, 1978 2,919 3.8

Wilcox County Bank

Camden, Alabama............... March 1, 1978 3,447 10.6

Banco Credito y Ahorro 

Ponceno

Ponce, Puerto Rico................. March 31, 1978 294,000 607.6

Watkins Banking Company

Faunsdale, Alabama............... July 21, 1978 492 1.3

Banco de Ahorro de 

Puerto Rico 

San Juan, Hato Rey,

Puerto R ico................... September 5, 1978 4,202 11.8

North Point State Bank

Arlington Heights, Illinois........ December 16, 1978 15,500 21.8

Liquidation activities. The Division 

of Liquidation was handling 79 open 

liquidation cases in 30 States, the 

Virgin Islands, and Puerto Rico at yearend 1978. There were over 75,000 

assets having a book value of more 

than $2 billion to be liquidated. 

Approxim ately one-third of these 

assets were real estate related.

The FDIC's policy is to convert the 

assets of closed banks to cash as early 

as practical for distribution to the creditors and stockholders and to realize a 

maximum recovery through these 

efforts. The Division of Liquidation 

closed 31 transactions in 1978 involving bulk sales of assets totaling $202 

million, setting an all-time collection 

record for the division of $812.8 million.

Sixty-six insured banks closed from 

January 1, 1970, to December 31,

1978, involving total assets of approximately $8 billion and total deposits of 

approximately $5 billion. In the 46 

purchase and assumption transactions, 

new banks acquired approximately 

$3.6 billion of assets at book value 

from the FDIC, as receiver, which had 

the effect of immediately recovering 

those substantial amounts for the 

benefit of the creditors. For the same 

period, the FDIC, as liquidator, collected 

approximately $3.5 billion, in principal, 

interest, and costs, from the remaining 

assets. In addition, the Corporation 

recovered $317 million from purchase 

premiums paid by new banks for the 

right to acquire the failed banks' 

deposits and valuable banking locations.

The C o rp o ra tio n 's liq u id a tio n 

expenses amounted to about $129 

million versus collections of $3.5 billion for the period January 1, 1970,

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Federal Reserve Bank of St. Louis
22 FEDERAL DEPOSIT INSURANCE CORPORATION

to December 31, 1978. This represents a very favorable 3.7 percent ratio 

of expenses to collections. Legal fees 

for the same period amounted to 1.1 

percent of collections. Both ratios are

exceptional when measured against 

typical expenses and legal fee results in 

bankruptcies.

R e c o v e ry fo r c re d ito rs and 

stockholders can also result in some

L IQ U ID A T IO N A C T IV IT Y

FEDERAL DEPOSIT IN S U R A N C E C O R P O R A TIO N , 1 9 7 0 -1 9 7 8

M illions of dollars

2 ,7 0 0 -------— ----------------------------------------------------------------------------------------------------------------------------

2 ,4 0 0 -----------------------------------------------

BOOK VALUE

OF ASSETS

2,100------------------------------------------------

1,800

1,50 0

1,200

9 00

6 0 0

3 0 0

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Federal Reserve Bank of St. Louis
CONSUMER AND CIVIL RIGHTS PROTECTION 23

cases from directors' liability actions 

initiated by the receiver. Because many 

bank closings are the direct result of 

bank directors' failure to use reasonable care in discharging their duties or 

their allowance of violations of banking 

laws, the FDIC normally investigates 

potential negligence and files claims 

against members of the bank's board 

when such action is warranted. In

1978, the FDIC filed 9 directors' 

liability suits; at the end of 1978, 28 

such suits were pending.

Whenever it is determined that the 

bank suffered losses due to the fraudule n t and d is h o n e s t a cts o f its 

employees, the Corporation pursues a 

claim against the bank's Bankers 

Blanket Bond carrier. Most claims are 

settled without litigation; however, at 

the end of 1978 there were 16 such 

suits pending.

CONSUMER AND

CIVIL RIGHTS PROTECTION

The FDIC is responsible for enforcing a growing number of consumer 

protection and civil rights laws and 

regulations with respect to insured 

State nonmember banks. These laws 

include the Truth in Lending Act, the 

Fair Credit Reporting Act, the Real 

Estate Settlement Procedures Act, the 

Equal Credit Opportunity Act, the Fair 

Housing Act, the Home Mortgage Disclosure Act, the Fair Debt Collection 

Practices Act, and the Community 

Reinvestment Act.

The FDIC carries out these enforcement responsibilities primarily through 

a program of separate specialized 

examinations directed solely to checking for compliance with the various 

laws and regulations. These examinations are conducted by trained 

examiner specialists at times other than 

during the regular safety and soundness examinations, with special followup examinations or visitations as the

circumstances may require.

Violations or exceptions noted in the 

com pliance reports are routinely 

followed up by the Regional Offices to 

assure that corrective measures are 

taken. If voluntary compliance cannot 

be obtained by additional follow-up 

examinations, visitations, meetings 

with the boards of directors of the 

banks involved, or other means, the 

Division of Bank Supervision or the 

Office of Consumer Affairs and Civil 

Rights may recommend that formal 

enforcement action under Section 8(b) 

of the FDI Act be initiated. During

1978, the FDIC's Board of Directors 

issued four such orders involving in 

whole or in part violations of consumer 

protection or civil rights laws and 

regulations.

Fair housing. A new FDIC regulation 

became effective in m id-1978 that is 

intended to provide a basis for a more 

effective FDIC housing lending enforcement program under the Fair Housing 

and Equal Credit Opportunity Acts. The 

regulation establishes recordkeeping 

requirements for insured State nonmember banks with respect to inquiries 

and applications for home loans. A 

home loan is defined as any extension 

of credit relating to the purchase, construction, refinancing, improvement, 

repair, or maintenance of a one- to 

four-family residential dwelling which 

an applicant intends to occupy as a 

principal residence and which is used 

to secure the loan. All banks subject to 

the regulation are required to request 

and retain information on the name, 

address, race, national origin, sex, 

marital status, and age of persons who 

inquire about or apply for home loans, 

and on the location of the property to 

be financed. If a bank is located within 

a Standard Metropolitan Statistical 

Area (SMSA) and has assets of more 

than $10 million, it is also required to 

obtain extensive credit-related information about the financial status of the

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24 FEDERAL DEPOSIT INSURANCE CORPORATION

loan applicant and the characteristics 

of the property involved and the loan 

being requested.

The purpose of this data collection 

effort is to provide a valid statistical 

basis for detection of possible home 

loan discrimination. The Corporation 

began developing a computerized Fair 

Housing statistical analysis system in 

1978 to analyze the home loan inquiry 

and application data maintained by 

State nonmember banks. The relationship between inquiries and applications, the relationship between successful and unsuccessful applications, 

and the loan terms granted to borrowers will be categorized and compared by the race, sex, age, and marital 

status of inquirers and applicants. Use 

of this system will not definitely establish the existence of illegal discrimination but should identify for FDIC 

examiners those banks requiring more 

extensive examination and follow-up 

efforts.

Mortgage disclosure. Substantial 

progress was made on a study of housing-related loan data required of certain 

depository institutions under the Home 

Mortgage Disclosure Act. The study, 

which is being jointly funded by the 

FDIC and the Federal Home Loan Bank 

Board, is designed to assess the 

accuracy with which depository institutions are compiling the loan disclosure 

reports and to identify the proportion 

of mortgage loans made by institutions 

subject to the act. A series of reports 

will be prepared on a variety of issues, 

including the costs of compliance, 

possible amendments to the act and 

the implementing Regulation C to 

increase the usefulness of these data 

to the public and the regulatory agencies, and improvements in location 

coding and enforcement procedures. 

Although the study was originally 

scheduled to be completed by late

1978, the breadth of the issues

addressed and technical problems 

associated with collection of certain of 

the necessary information have caused 

a postponement in the anticipated 

completion date to early 1979

Community reinvestm ent. Late in

1977 a new Federal law, the Community Reinvestment Act, directed the 

Federal financial regulatory agencies to 

encourage the institutions they regulate to help meet the credit needs of 

their communities, including low- and 

moderate-income neighborhoods. The 

agencies were further required to 

assess the institutions' records in doing 

so and to take those records into 

account when evaluating applications 

requiring prior agency approval. To 

implement this law, the FDIC issued 

jointly with the Comptroller of the Currency, the Federal Home Loan Bank 

Board, and the Federal Reserve Board 

final regulations which became effective in late 1978.

The regulations give FDIC-supervised banks 90 days in which to prepare Community Reinvestment Act 

Statements. These statements must 

define the bank's local community, 

without excluding any low- and moderate-income neighborhoods, and identify the types of credit needs within 

that community which the bank is prepared to serve. Both the statement and 

any written comments on it must be 

made available to the public. FDIC 

examiners will review the CRA Statements during regular com pliance 

examinations, with the results weighing heavily in Corporation decisions 

concerning pending bank applications.

The H ousing and C o m m u n ity 

Development Amendments A ct of

1978 established a National Neighborhood Reinvestment Corporation. The 

Chairman of the FDIC is a member of 

the board of directors. The Neighborhood Reinvestment Corporation was 

created for the purpose of promoting

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Federal Reserve Bank of St. Louis
CONSUMER AND CIVIL RIGHTS PROTECTION 25

reinvestment in older neighborhoods 

through the efforts of local financial 

institutions, community groups, and 

local government.

Consumer complaints and inquiries. The Office of Consumer Affairs 

and Civil Rights is responsible for the 

appropriate disposition of consumer 

complaints and inquiries directed to the 

FDIC. During 1978, 2,263 complaints 

and 2,474 inquiries were received by 

the FDIC nationwide, up 6.5 percent 

and down 1.3 percent respectively over 

the number processed during 1977. 

The increase in consumer complaints 

and inquiries, which is expected to continue over the next few years, is 

attributable primarily to greater consumer awareness of their rights under 

the various consumer protection and 

civil rights statutes. Also, more consumers may be filing complaints as a 

result of the FDIC's consumer information brochure explaining how to file a 

complaint. Corrective action is sought 

in all cases where a bank error or violation of law is discovered as a result of a 

complaint and follow-up action is taken 

to ensure subsequent compliance.

Consumer and banker education.

During 1978, the staff from the Office 

of Consumer Affairs and Civil Rights 

made num erous presentations to 

bankers and industry groups. They participated in a series of eight workshops, 

sponsored by the American Bankers 

Association and held at various locations around the country, to promote 

banker education in the areas of consumer protection and civil rights. Also, 

a special 2-day FDIC training program 

on the new Community Reinvestment

CONSUMER COMPLAINTS AND INQUIRIES, 1977 AND 1978

1978 1977

Complaints and inquiries - total.

Deposit function.......................

Payment of interest...............

Account differences...............

Advertising...............................

Early withdrawal penalties. . . .

Policies and practices..............

Other.........................................

4,737 4,657

1,315 962

158 131

182 238

34 35

217 148

574 332

150 78

Loan function............................................................ ........ 1,931 1,601

State or contract la w ............................................. 115 101

Equal Credit Opportunity A c t............................... 543 508

Fair Credit Reporting A ct....................................... 133 165

Individual bank loan policy..................................... 308 242

Collection and repossession................................. 100 58

Fair housing............................................................ 70 49

Truth in lending...................................................... 183 145

Other Federal law s................................................. 48 21

Other........................................................................ 431 312

Trust services.................................................................. 68 55

Safe deposit - safekeeping services........................... 32 42

Insurance coverage.......................................................... 685 822

General, 706 1,175

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26 FEDERAL DEPOSIT INSURANCE CORPORATION

Act regulation was presented in late

1978 to examiner personnel in all 14 

Regional Offices. The program's major 

goal was to provide instruction and 

training in CRA examination techniques 

to the special compliance examiners, 

who will, in turn, be providing similar 

instruction and guidance to the bankers 

who must comply with the regulations. 

It was felt this approach offered the 

best opportunity for maximizing the 

number of examiners and bankers to be 

reached in the shortest possible time.

The FDIC also distributed more than 

half a million pamphlets on consumer 

information, fair credit billing, truth in 

lending, and equal credit opportunity 

during 1978.

FINANCES OF THE CORPORATION

Deposit insurance fund. The Corporation's basic financial resource for 

the protection of depositors is the 

deposit insurance fund which has been 

accumulated entirely from net income 

over the years. The fund increased by 

$803.2 million during the year to a 

total of $ 8.8 billion. That amount 

equaled about 1.2 percent of estimated 

insured deposits. Should additional 

funds ever be needed, the Corporation 

is authorized to borrow up to $3 billion 

from the U.S. Treasury, but it has never 

exercised this authority.

The Corporation disbursed $470.7 

million in the failures of seven insured 

banks during 1978. Based on current 

estimates, approximately 1.7 percent 

of this amount will not be recovered by 

the Corporation, and accordingly, $7.8 

m illion of the disbursem ent was 

charged against current income. In 

addition, the Corporation purchased 

$4.3 million in capital notes from banks 

that acquired the major part of the 

assets and liabilities of two of the current year's failed banks.

Income. Assessments and interest 

income are the two principal sources of

Corporation income. During 1978, 

gross assessments of $810.5 million 

accounted for 58.1 percent of total 

income and interest on the portfolio of 

U.S. Government securities of $567 

million equaled 40.6 percent of the 

total. Other income is primarily from 

interest earned on capital notes.

The basic assessment rate paid by 

insured banks has been 1/1 2 of one 

percent of total assessable deposits 

since 1935, but legislation enacted in 

1950 in effect reduced the statutory 

rate of assessment by providing a credit to be applied against gross assessments levied, after subtracting the Corporation's expenses and provision for 

losses, each year. This credit to insured 

banks has been 6 6 -2/3 percent since 

December 31, 1961. After allowing for 

the FDIC's administrative and operating 

expenses of $103.2 million and provision for insurance losses and expenses 

incurred to protect depositors of $41.9 

million, the statutory credit to banks 

amounted to approximately $443.1 

million in 1978, an increase of $ 31.5 

million from the previous year. This 

made the net assessment paid by 

insured banks equal to approximately 

1/26 of one percent of assessable 

deposits in 1978. The assessment 

credit for 1978, which becomes available to the insured banks on July 1,

1979, constituted 91 percent of the 

FDIC's liabilities at year-end.

In te re s t on U.S. G o ve rn m e n t 

securities increased by $ 73 million 

from year-end 1977 and the yield on 

cost rose from 7.15 percent to 7.55 

percent. The improved yield in large 

part is due to the Corporation's ability 

to take advantage of changes in 

general m arket conditio ns w hich 

favorably influenced the current year's 

net purchases of about $ 1.1 billion, 

and to some extent is due to the replacement of a limited amount of 

securities with others more in line with 

prevailing yields. Following conventional accounting principles, the

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Federal Reserve Bank of St. Louis
FINANCES OF THE CORPORATION 27

approximately $3 million loss on the 

sale of the low-yield issue was charged 

against current income.

Audits. In mid-1978, the Board of 

Directors adopted a resolution redefining the functions of the Office of Corporate Audits in a manner consistent 

with Government policies on audits of 

Federal operations and programs. In the 

past the Office of Corporate Audits 

has been charged w ith evaluating 

whether the FDIC's financial, fiscal, and 

accounting operations are properly 

conducted and accurately reported. 

The resolution expands the Office's 

jurisdiction to include the determination

of whether applicable laws and regulations have been com plied w ith, 

resources are managed in an efficient 

manner, and desired results and objectives are being achieved in an effective 

manner.

In addition to the continuing internal 

audit activity, the Corporation's financial operations are audited annually by 

the General Accounting Office and 

audit results are reported to Congress. 

The Federal Banking Agency Audit Act 

(Public Law 95-3 2 0 ), which was 

enacted during 1978, authorizes the 

General Accounting Office to conduct 

periodic performance audits of the 

Corporation also.

APPLICATION OF REVENUES

FEDERAL DEPOSIT INSURANCE CORPORATION

1 9 6 8 -1 9 7 8

Millions of dollars 

1,400—

1,200 —

1,000 —

H H m Expenses and Provision for Losses_ 

f l j l f l j Assessment Credits 

| | Additions to Insurance Fund

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28 FEDERAL DEPOSIT INSURANCE CORPORATION

COMPARATIVE STATEMENT

OF FINANCIAL CONDITION (In thousands)

ASSETS:

December 31,

1978

December 31,

1977

Cash $ 4,343 $ 8,663

U.S. Government obligations:

Securities at amortized cost 

Accrued interest

8,210,441

162,720

8,373,161

7,129,055

137,957

7,267,012

Equity in assets acquired from deposit payoff

cases and insured banks assisted under

Section 13(e) of the FDI Act:

Depositors' claims paid 

Depositors' claims unpaid 

Loans and assets purchased 

Assets purchased outright 

Notes purchased plus accrued interest 

Less reserves for losses

33,980

861

940,309

19,104

135,568

273,949

855,873

49,764

900.

1,171,083

19,122

132,155

244,741

1,128,283

Equity in assets acquired from insured banks

assisted under Section 13(c) of the FDI Act:

Assets purchased outright

Notes purchased plus accrued interest

Less reserves for losses

23,936

37,028

20,700

40,264

27,765 

37,423 

1 5,400 

49,788

Miscellaneous assets 2,759 2,370

Land and office building, less depreciation

on building 6,283 6,418

Total Assets $9,282,683 $8,462,534

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FE D ER AL DEPOSIT INSURANCE CORPORATION

FINANCES OF THE CORPORATION 29

LIABILITIES AND THE

DEPOSIT INSURANCE FUND:

December 31,

1978

December 31,

1977

Accounts payable and accrued liabilities $ 4,963 $ 5,947

Earnest money, escrow funds, and

collections held for others 4,893 12,086

Accrued annual leave 4,716 4,316

Due insured banks:

Net assessment income credits:

Available July 1, 1978 

Available July 1, 1979 

Other

0

443,101

11,990

455,091

411,947

0

16,789

428,736

Liabilities incurred in failures of insured banks:

Notes payable plus accrued interest

Depositors' claims unpaid

16,166

861

17,027

17,761

900

18,661

Total Liabilities 486,690 469,746

Deposit Insurance Fund 8,795,993 7,992,788

Total Liabilities and the Deposit Insurance Fund $9,282,683 $8,462,534

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30 FEDERAL DEPOSIT INSURANCE CORPORATION

COMPARATIVE STATEMENT OF INCOME

AND THE DEPOSIT INSURANCE FUND (In thousands)

For the tw e lve m onths ended

December 31, 

1978

December 31, 

1977

Revenues:

Assessments earned 

Interest on U.S. Government securities 

Amortization of premiums and discounts (net) 

Interest earned on notes receivable 

Other income 

Total

$ 810,532

567,042

(1,264)

11,974

7,313

1,395,597

$ 731,468

493,990

9,171

14,841

442

1,249,912

Assessment Credits, Expenses, and Losses:

Provision for assessment credits 

Administrative and operating expenses (net) 

Nonrecoverable insurance expenses 

Provision for insurance losses 

Loss on sale of securities 

Total

443,534

103,289

5,409

36,532

3,628

592,392

412,086

89,344

3,492

20,827

0

525,749

Net Income 803,205 724,163

Deposit Insurance Fund-January 1 7,992,788 7,268,625

Deposit Insurance Fund-December 31 $8,795,993 $7,992,788

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Federal Reserve Bank of St. Louis
FINANCES OF THE CORPORATION 31

COMPARATIVE STATEMENT OF CHANGES FE D ER AL DEPOSIT INSURANCE CORPORATION

IN FINANCIAL POSITION (In thousands)

For the tw elve

December 31, 

1978

m onths ended

December 31, 

1977

Financial Resources Were Provided From:

Operations:

Net deposit insurance assessments $ 366,998 $ 319,382

Interest on U.S. Government obligations 567,042 493,990

Interest on notes receivable 11,974 14,841

Other income 7,313 442

Total 953,327 828,655

Less:

Administrative and operating expenses, 

net of depreciation 103,154 89,209

Nonrecoverable insurance expense 5,409 3,492

Total 108,563 92,701

Resources provided from operations 844,764 735,954

Maturity and sale of U.S. Government obligations, 

less, $3,628 net loss in 1978 794,469 1,369,625

Collections received on assets acquired in receivership 

and deposit assumption transactions, excluding 

$261,000 in 1977 in Franklin National Bank liquidation collections applied directly to the reduction of 

the F.R.B. indebtedness before F.R.B. payoff 799,248 419,095

Increase in assessment credits due banks 26,355 21,956

Decrease in cash 4,320 14,197

Total Financial Resources Provided $2,469,156 $2,560,827

Financial Resources Were Applied To:

Purchase of U.S. Government obligations $1,686,705 $1,877,394

Increase (decrease) in U.S. Treasury one-day certificates 194,042 (18,000)

(Total purchases - $37,679,123 in 1978 and 

$32,543,000 in 1977 

Total maturities - $37,485,081 in 1978 and 

$32,561,000 in 1977)

Acquisition of Assets acquired in receivership and 

deposit assumption transactions, excluding 

$ 19,100 in 1977 representing the increase in principal and accrued interest on the F.R.B. indebtedness 

and other notes payable before F.R.B. payoff 554,280 95,880

Increase in accrued interest on securities 24,763 7,844

Net change in other assets and liabilities 9,366 (10,167)

Payment of F.R.B. indebtedness: 

Principal 0 389,000

Accrued interest 0 218,876

Total Financial Resources Applied $2,469,156 $2,560,827

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Federal Reserve Bank of St. Louis
32 FEDERAL DEPOSIT INSURANCE CORPORATION

NOTES TO FINANCIAL STATEMENTS

GENERAL

These statements do not include 

accountability for assets and liabilities of 

closed insured banks for which the Corporation acts as receiver or liquidating 

agent. Periodic and final accountability 

reports of its activities as receiver or 

liquidating agent are furnished by the Corporation to courts, supervisory authorities, 

and others as required.

ACCOUNTING POLICIES

U.S. G o v e rn m e n t o b lig a tio n s .

Securities are shown at amortized costs 

which is the purchase price of the 

securities less the amortized premium or 

plus the accreted discount. Such amortization and accretion are computed on a daily 

straight-line basis from the date of acquisition to the date of maturity.

Deposit insurance assessments. The

Corporation assesses insured banks at the 

rate of 1/12 of one percent per year on the 

bank's average deposit liability less certain 

exclusions and deductions. Assessments 

are due in advance for each six-month 

period and credited to income each month. 

Section 7(d) of the Federal Deposit 

Insurance Act states that each July 1, sixty-six and two-thirds percent of the Corporation's net assessment income from the 

prior calendar year be made available to 

insured banks as a prorated credit against 

the current assessment due.

Reserve for losses. It is the policy of 

the Corporation to establish an estimated 

reserve for loss at the time a bank fails. 

These reserves are reviewed every six 

months and adjusted as required, based on 

the financial developments which accrue 

during each six-month period. The Corporation does not state its estimated contingent liability for unknown future bank 

closings because such estimates are 

impossible to make. The Corporation's 

contingent liability for eventual net losses 

depends upon factors which cannot be 

assessed until or after a bank has actually 

failed. The Corporation's entire deposit 

insurance fund and borrowing authority are 

available, however, for such contingencies.

Depreciation. The headquarters building is depreciated on a straight-line basis 

over a 50-year estimated life. The cost of 

furniture, fixtures, and equipment is 

expensed at time of acquisition.

Reclassifications. Certain reclassifications were made in the 1977 financial 

statements to conform to the presentation 

used in 1978.

U.S. GOVERNMENT OBLIGATIONS

Investment in securities at December 

31, 1978 and 1977 was.

(in thousands)

1978 1977

Face Value $8,210,911 $7,119,458

Purchase Price 8,216,348 7,132,322

Market Value 7,718,383 7,073,876

RESERVE FOR LOSSES

As of December 31, 1978 and 1977 

the Corporation's reserve for losses on 

deposit payoff cases and on banks assisted 

under Sections 13(c) and 13(e) of the 

Federal Deposit Insurance Act are as 

follows:

1978 1977

Depositors'claims paid $ 14,475,000 $ 16,032,000

Loans and assets purchased 240,763,500 210,709,400 

Assets purchased outright 39,410,000 33,400,000

$294,648,500 $260,141,400

NOTES PURCHASED TO FACILITATE

DEPOSIT ASSUMPTIONS

The Corporation's outstanding principal 

on notes receivable, purchased to facilitate 

deposit assumptions and mergers of 

closed insured banks under Section 13(e) 

of the Federal Deposit Insurance Act, at 

December 31, 1978 and 1977 are:

1978 1977

Clearing Bank $ 1,000,000 $ 1,500,000

Marine National Exchange Bank

of Milwaukee 1,500,000 1,500,000

First Tennessee National Corporation 16,000,000 16,000,000

First Tennessee National Bank 8,000,000 8,000,000

Bank Leumi Trust Company of

New York 10,000,000 10,000,000

New Orleans Bancshares, Inc. 6,666,667 7,500,000

European-American Bancorp. 85,000,000 85,000,000

Drovers Bank of Chicago 4,000,000 -

Town-Country National Bank 250,000 -

$132,416,667 $129,500,000

NOTES PURCHASED TO ASSIST

OPERATING BANKS

The Corporation's outstanding principal 

on notes receivable, purchased under 

authority of Section 13(c) of the Federal 

Deposit Insurance Act, at December 31,

1978 and 1977 are:

1978 1977

Unity Bank and Trust Company $ 1,500,000 $ 1,500,000 

Bank of the Commonwealth 35,500,000 35,500,000

$37,000,000 $37,000,000

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Federal Reserve Bank of St. Louis
FINANCES OF THE CORPORATION 33

LIABILITIES INCURRED IN FAILURES 

OF INSURED BANKS

Notes payable. This amount represents 

the unpaid principal and accrued interest on 

the Corporation's unsecured notes designated “ 5.775% Series A Notes due January

1, 1988" and “ 5.775% Series B Notes due 

January 1, 1990“ as set forth in the consents, exchange agreement, and agreements of release and satisfaction related to 

the sale of Franklin Buildings, Inc. to European-American Bank and Trust Company.

CONTINGENT LIABILITIES

S o u th e rn B a n c o rp o ra tio n n ote 

receivable. On December 9, 1976, 

Southern Bancorporation repaid in full the 

$8 million note that the Corporation had 

purchased on September 24, 1974. 

Southern Bancorporation financed this 

transaction by obtaining a loan from First 

Union National Bank of North Carolina. To 

induce FUNB to enter the loan agreement, 

the FDIC agreed to guarantee the payment 

of 75 percent of the unpaid principal 

amount of the loan on the terms and conditions set forth in the guarantee agreement. 

As of December 31, 1978 and 1977, 

FUNB's outstanding principal due on the 

loan totaled $6.6 million and $7.4 million, 

respectively.

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Federal Reserve Bank of St. Louis
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Federal Reserve Bank of St. Louis
ENFORCEMENT PROCEEDINGS

PART TWO

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Federal Reserve Bank of St. Louis
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Federal Reserve Bank of St. Louis
CEASE-AND-DESIST ACTIONS 37

Actions to Terminate Insured Status

Federal Deposit Insurance Act-Section 8(a)

The Corporation has issued 33 termination 

of insurance orders since January 1971; 3 

were issued in 1978. In each case, the bank 

was found to be in unsafe or unsound condition.

Also, a number of other termination of 

insurance actions have been recommended but 

were withdrawn by the Board of Directors 

because of favorable interim affirmative actions 

by the bank involved. As in the case of ceaseand-desist actions, the threat of termination of 

insurance has caused many of the banks to take 

affirmative steps to correct deficiencies, thus 

eliminating the need for finalizing the actions.

Summary of cases

Bank No.

31 Deposits—-$101.3 million

Notice of intention to terminate 

insured status issued on April 19, 

1978. Bank ordered to provide acceptable management; eliminate or reduce 

adversely classified assets; reduce loan 

volume; establish a plan to control 

operating losses; correct violations of 

laws, rules, and regulations; take 

necessary steps to comply, where 

appropriate, with the Order to Cease 

and Desist issued on January 25, 1978 

and the Letter Agreement dated June 

16, 1977; adopt and follow acceptable 

loan and investment policies; implement a plan to provide stability and 

diversification to the deposit structure; 

discontinue cash dividends; and obtain 

a certain level of capital if continued 

insured status was desired.

32 Deposits— $3.7 million

Notice of intention to terminate 

insured status issued on June 9, 1978. 

Bank ordered to provide acceptable 

management; eliminate or reduce 

adversely classified assets; reduce 

overdue loans; correct violations of 

laws, rules, regulations, and loan documentation exceptions; discontinue 

cash dividends; and obtain a certain 

level of capital if continued insured 

status was desired

33 Deposits— $30.8 million

Notice of intention to terminate 

insured status issued on September 

15,1978. Bank ordered to provide 

acceptable management; eliminate or

reduce adversely classified assets; 

obtain current credit and other supporting documentation for all existing 

loans; eliminate all concentrations of 

credit; eliminate without loss or liability 

to the bank all overdrafts and prohibit 

future overdrafts to directors, officers, 

and employees, or their interests; 

adopt and follow acceptable loan 

policies; adopt an acceptable audit 

program; correct internal routine and 

control deficiencies; correct violations 

of laws, rules, and regulations; discontinue cash dividends; and obtain a certain level of capital if continued insured 

status was desired.

Cease-and-Desist Actions

Federal Deposit Insurance Act-Section 8(b)

The Corporation has issued 137 cease-anddesist orders since January 1971; 32 were 

issued in 1978. In addition, 18 temporary 

cease-and-desist orders have been issued, 

including 5 in 1978. In each case, the bank was 

ordered to cease and desist from unsafe or 

unsound practices and to take affirmative 

action to correct conditions. Several such 

actions are now in various stages of processing.

In addition, a number of other cease-anddesist proceedings were terminated when the 

banks involved, in response to a threatened 

cease-and-desist order, took affirmative steps 

to correct the problems.

In four other cases, one in 1978, formal written agreements between banks and the Corporation were ratified by the FDIC Board of 

Directors. Noncompliance with these formal 

written agreements can result in a cease-anddesist action.

Summary of cases

Bank No.

106 Deposits— $ 18.0 million

Consent cease-and-desist order 

entered on January 25, 1978. Bank 

ordered to cease and desist from 

unsafe or unsound practices and take 

affirm ative action with respect to 

acceptable management; reduction of 

adversely classified assets; adoption of 

acceptable loan policies; limitations on 

credit to any person or concern, including any person related to such person 

or concern; and credit to or for the

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38 FEDERAL DEPOSIT INSURANCE CORPORATION

benefit of tw o or more unrelated 

obligors where repayment is based 

upon the assets or revenue derived 

from the same source; compliance 

with laws, rules, and regulations; and 

elimination of loan documentation deficiencies.

107 Deposits— $7.8 million

Consent cease-and-desist order 

entered on January 25, 1978. Bank 

ordered to cease and desist from 

unsafe or unsound practices and take 

affirm ative action with respect to 

acceptable management; reduction of 

adversely classified assets and overdue 

loans; adoption of acceptable loan and 

investment policies; compliance with 

laws, rules, and regulations; disclosures and restrictions relating to a 

credit life insurance agency operated 

on bank premises by insiders; and discontinuance of cash dividends.

108 Deposits— $3.4 million

Consent cease-and-desist order 

entered on January 25, 1978 to replace a temporary order to cease and 

desist. Bank ordered to cease and 

desist from unsafe or unsound practices and take affirmative action with 

respect to acceptable management; 

reduction of adverse classifications; 

adoption of written lending policies; 

collection of outstanding and limitations on future out-of-area loans; 

limitations on credits to insiders or for 

the benefit of two or more obligors 

where payment is based on the assets 

of or revenue derived from the same 

source; elimination of loan documentation deficiencies; prohibition of 

repurchase of participations sold without recourse; recording on the books 

any liability for repurchase agreements 

outstanding; adopting a schedule for 

the periodic balancing of all general 

ledger accounts; correction of all violations of laws and regulations; injection 

of new capital; review of and restrictions on all compensation to, and 

expense allowance of, directors and 

officers; review of income and expense 

statements monthly; maintenance of 

adequate records for Federal and State 

income taxes; disclosures and restrictions relating to a credit life insurance 

agency operated on bank premises by 

insiders; restrictions on payment of 

cash dividends; compliance with a 

separate letter agreement between the

bank and the chartering authority; and 

efforts to collect loans made to or 

related to control owners and prohibition of any new credit to these 

individuals.

109 Deposits— $102.5 million

Consent cease-and-desist order 

entered on January 25, 1978 to replace a temporary order to cease and 

desist. Bank ordered to cease and 

desist from unsafe or unsound practices and take affirmative action with 

respect to entering into any business 

transactions which exceed $10,000 in 

the aggregate with the chairman of the 

board, his interests, or any person 

related to him.

110 Deposits— $20.1 million

Consent cease-and-desist order 

entered on March 14, 1978. Bank 

ordered to cease and desist from 

unsafe or unsound practices and take 

affirmative action with respect to compliance with laws and regulations relating to consumer protection, financial 

recordkeeping and reporting, and bank 

protection.

111 Deposits— $24.8 million

Consent cease-and-desist order 

entered on March 14, 1978. Bank 

ordered to cease and desist from 

unsafe or unsound practices and take 

affirm ative action with respect to 

acceptable management; reduction of 

adversely classified assets; adoption of 

acceptable loan policies; restrictions on 

new loans to certain insiders; internal 

control procedures; injection of new 

capital; and discontinuance of cash 

dividends.

112 Deposits— $526.0 million

Consent cease-and-desist order 

entered on March 14, 1978. Bank 

ordered to cease and desist from 

unsafe or unsound practices and take 

affirm ative action with respect to 

acceptable management; reduction of 

adversely classified assets and delinquent loans; injection of new capital; 

adoption of acceptable loan policies; 

elimination of loan documentation deficiencies; and discontinuance of cash 

dividends.

113 Deposits— $12.2 million

Consent cease-and-desist order 

entered on April 7, 1978. Bank ordered 

to cease and desist from unsafe or 

unsound practices and take affirmative

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CEASE-AND-DESIST ACTIONS 39

action with respect to acceptable 

management; reduction of adversely 

classified assets; compliance with 

laws, rules, and regulations; reduction 

of loan volume and overdue loans; 

adoption of acceptable loan policies; 

increasing and maintaining capital at a 

specified relationship to assets; provision for adequate liquidity; and internal 

control procedures.

114 Deposits— $109.7 million

Consent cease-and-desist order 

entered on April 7, 1978. Bank ordered 

to cease and desist from unsafe or 

unsound practices and take affirmative 

action with respect to compliance with 

consumer protection laws and regulations pertaining to bank protection and 

real estate settlement procedures.

115 Deposits— $3.5 million

Consent cease-and-desist order 

entered on April 19, 1978. Bank 

ordered to cease and desist from 

unsafe or unsound practices and take 

affirm ative action with respect to 

acceptable management; reduction of 

adversely classified and special mentioned assets and loan volume; adoption of acceptable loan and investment 

policies; compliance with laws, rules, 

and regulations; provisions for increasing capital; discontinuance of cash 

dividends; procurement of fidelity 

insurance; and disclosures and restrictions related to the sale of credit life 

insurance or any other type of 

insurance written by bank personnel or 

written on bank premises incidental to 

bank loans.

116 Deposits— $12.4 million

Notice of charges issued on April 19, 

1978 and consent cease-and-desist 

order entered on May 5, 1978. Bank 

ordered to cease and desist from unsafe 

or unsound practices and take affirmative action with respect to acceptable 

management; increasing capital; reduction of adversely classified assets and 

overdue loans; limitations on credit to 

directors, officers, their affiliates and 

interests, or any two unrelated directors, officers, their affiliates and 

interests where payment is based 

upon the assets of or derived from the 

same source; adoption of acceptable 

loan policies; compliance with laws, 

rules, and regulations; restrictions on 

credit to out-of-trade-area borrowers 

and/or loans secured by collateral

located out of trade area; elimination 

of loans secured by certain bank 

stocks and loans made for the purpose of facilitating the carrying of 

investment in such bank stocks; and 

elim ination of loan docum entation 

deficiencies.

117 Deposits— $1.6 million

Notice of charges issued on April 19, 

1978 and consent cease-and-desist 

order entered on June 9, 1978. Bank 

ordered to cease and desist from unsafe 

or unsound practices and take affirmative action with respect to acceptable 

management; reduction of adversely 

classified assets and loan volume; 

adoption of acceptable loan policies; 

limitations of credit to any person or 

concern, including any person who 

controls, is controlled by or under 

common control with such person or 

concern, or any two or more unrelated 

obligors where payment is based 

upon the assets of or revenue derived 

from the same source; prohibition of 

extensions of credit to out-of-tradearea borrowers and brokered deposits 

with tie-in loans; elimination of loan 

documentation deficiencies; compliance with laws, rules, and regulations; 

internal control procedures; and discontinuance of cash dividends.

118 Deposits— $7.1 million

Consent cease-and-desist order 

entered on April 25, 1978. Bank 

ordered to cease and desist from 

unsafe or unsound practices and take 

affirm ative action with respect to 

acceptable management; reduction of 

adversely classified assets and overdue 

loans; adoption of acceptable loan 

policies; compliance with laws, rules, 

and regulations; elimination of loan 

documentation deficiencies; discontinuance of cash dividends; increasing 

capital; internal control procedures; 

obtaining shareholder and board of 

director approval of the conduct of an 

insider related insurance business on 

bank premises and assurance from the 

bank's insurer that such operations will 

not adversely affect blanket bond 

coverage; and review of the structure 

for salaries of officers, directors, and 

employees.

119 Deposits— $7.3 million

Notice of charges issued on May 19, 

1978 and consent cease-and-desist 

order entered September 6, 1978.

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Federal Reserve Bank of St. Louis
40 FEDERAL DEPOSIT INSURANCE CORPORATION

Bank ordered to cease and desist from 

unsafe or unsound practices and take 

affirm ative action with respect to 

acceptable management; reduction of 

adversely classified assets and a concentration of credit; adoption of acceptable loan policies; compliance with 

laws, rules, and regulations; provisions 

for increasing capital; restrictions on 

payment of cash dividends; and disclosures and restrictions relating to a 

credit life insurance agency operated 

on bank premises.

120 Deposits— $7.8 million

Consent cease-and-desist order 

entered on May 24, 1978. Bank 

ordered to cease and desist from 

unsafe or unsound practices and take 

affirm ative action with respect to 

acceptable management; reductions of 

adversely classified assets and loan 

volum e; rep urch asin g adversely 

classified assets sold to a certain bank; 

prohibition of the sale or purchase of 

any assets or services from a certain 

bank; adoption of acceptable loan and 

investment policies; compliance with 

laws, rules, and regulations; disclosures and restrictions relating to a 

credit life insurance agency operated 

on bank premises by insiders; and 

discontinuance of cash dividends.

121 Deposits— $6.1 million

Notice of charges issued on June 9, 

1978 and consent cease-and-desist 

order entered on July 14, 1978. Bank 

ordered to cease and desist from 

unsafe or unsound practices and take 

affirm ative action with respect to 

acceptable management; reduction of 

adversely classified assets, concentrations of credit, and overdue loans; provisions for an adequate loan valuation 

reserve and liquidity; elimination of 

loan docum entation deficiencies; 

restrictions on loans to insiders; adoption of acceptable loan and investment 

policies; and internal control procedures.

122 Deposits— $2.7 million

Notice of charges issued on June 9, 

1978 and consent cease-and-desist 

order entered on August 1 1, 1978. 

Bank ordered to cease and desist from 

unsafe or unsound practices and take 

affirm ative action with respect to 

acceptable management; reduction of 

adversely classified assets and overdue 

loans; provision for an adequate loan

valuation reserve; maintenance of an 

acceptable level of capital; adoption of 

acceptable loan policies; and obtaining 

written appraisals for all criticized real 

estate loans.

123 Deposits— $4.2 million

Notice of charges issued on June 26, 

1978 and consent cease-and-desist 

order entered on August 2, 1978. Bank 

ordered to cease and desist from 

unsafe or unsound practices and take 

affirmative action with respect to 

acceptable management; increasing 

capital; compliance with laws, rules, 

and regulations; reduction of adversely classified assets, loan volume, 

and overdue loans; restriction on 

credit to insiders and reduction of 

concentrations of credit to insiders or 

former insiders; adoption of acceptable loan policies; restrictions on credit 

to out-of-trade-area borrowers and/ 

or loans secured by collateral located 

out of trade area; and elimination of 

loan documentation deficiencies.

124 Deposits— $35.3 million

Notice of charges issued on July 14, 

1978 and consent cease-and-desist 

order entered on September 6, 1978. 

Bank ordered to cease and desist from 

unsafe or unsound practices and take 

affirm ative action with respect to 

acceptable management in the trust 

department; elimination of estimated 

losses; compliance with the Corporation's Statement of Principles of Trust 

Department Management; maintenance of accurate and adequate files 

and documentation; discontinuance of 

investing trust funds in notes secured 

by junior liens on real estate; a written 

program for the orderly disposition of 

all imprudent trust investments; compliance with laws, rules, and regulations; provisions for a comprehensive 

outside audit of the trust department; 

and provisions for adequate internal 

audit control.

125 Deposits— $109.0 million

Notice of charges issued on July 14, 

1978 and consent cease-and-desist 

order entered on August 11, 1978. 

Bank ordered to cease and desist from 

unsafe or unsound practices and take 

affirm ative action with respect to 

acceptable management; reduction of 

adversely classified assets; provisions 

for an adequate loan valuation reserve; 

adoption of acceptable loan policies;

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CEASE-AND-DESIST ACTIONS 41

elimination of loan documentation deficiencies; internal control procedures; 

compliance with laws, rules, and 

regulations; and provisions for an outside audit.

126 Deposits— $3.2 million

Notice of charges issued on August

2, 1978 and consent cease-and-desist 

order entered on September 6, 1978. 

Bank ordered to cease and desist from 

unsafe or unsound practices and take 

affirmative action with respect to 

acceptable management; increasing 

capital; compliance with laws, rules, 

and regulations; reduction of adversely cla ssified assets and loan 

volume; restrictions on credit to 

insiders; adoption of acceptable loan 

policies; provisions for an adequate 

loan valuation reserve; overdraft 

limitation; elimination of loan documentation deficiencies; and provisions for an outside audit.

127 Deposits— $3.7 million

Consent cease-and-desist order 

entered on August 2, 1978 to replace a 

temporary order to cease and desist. 

Bank ordered to cease and desist from 

unsafe or unsound practices and take 

affirm ative action with respect to 

entering into any business transaction 

with and/or from extending direct or 

indirect credit of any kind to or for the 

benefit of the controlling shareholder 

and/or any person related to that person; acceptable management; reductions of adversely classified assets; 

adoption of acceptable loan policies; 

prohibition of credit to borrowers who 

reside out of bank's trade area; compliance with laws, rules, and regulations; and the discontinuance of cash 

dividends.

128 Deposits— $13.0 million

Notice of charges issued on August

11, 1978 and consent cease-and-desist 

order entered on September 15, 1978. 

Bank ordered to cease and desist from 

unsafe or unsound practices, and take 

affirmative action with respect to 

compliance with consumer protection 

laws and regulations pertaining to 

financial recordkeeping and reporting.

129 Deposits— $13.7 million

Notice of charges issued on September 6, 1978 and consent cease-anddesist order entered on November 8, 

1978. Bank ordered to cease and

desist from unsafe or unsound practices and take affirmative action with 

respect to acceptable management; 

reduction of adversely classified 

assets and loan volume; adoption of 

an acceptable loan policy; elimination 

of loan documentation deficiencies; 

injection of new capital; provisions 

fo r an adequate loan valuation 

reserve; and discontinuance of cash 

dividends.

130 Deposits— $7.2 million

Notice of charges issued on September 6, 1978 and consent cease-anddesist order entered on November 17, 

1978. Bank ordered to cease and 

desist from unsafe or unsound practices and take affirmative action with 

respect to acceptable management; 

reduction of adversely classified 

assets and overdue loans; provision 

fo r an adequate loan valuation 

reserve; implementation of a reasonable repayment schedule for one type 

of loan; elimination of loan documenta tio n d e ficien cies; adoption of 

acceptable loan policies; internal control procedures; compliance w ith 

laws, rules, and regulations; and 

reviewing the appropriateness of and 

providing documentation with respect 

to fees or compensation for services 

paid to any director or business 

interests of any officer or director.

131 Deposits— $7.4 million

Notice of charges issued on September 6, 1978 and consent cease-anddesist order entered on November 17, 

1978. Bank ordered to cease and 

desist from unsafe or unsound practices and take affirmative action with 

respect to acceptable management; 

provisions fo r increasing capital; 

adoption of acceptable investment 

and loan policies; reduction of adversely classified assets; provisions for 

an adequate loan valuation reserve; 

restrictions on overdrafts and adoption of an acceptable overdraft policy 

and extensions of credit to insiders; 

and compliance with laws, rules, and 

regulations.

132 Deposits— $12.1 million

Notice of charges issued on September 28, 1978 and consent cease-anddesist order entered on December 20, 

1978. Bank ordered to cease and 

desist from unsafe or unsound practices and take affirmative action with

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42 FEDERAL DEPOSIT INSURANCE CORPORATION

respect to acceptable management; 

reduction of adversely classified 

assets and a concentration of credit; 

p ro h ib itio n o f the sale a n d /o r 

purchase of assets involving indebtedness of certain persons or their 

interests; adoption of policies relating 

to excess funds sold and loans; compliance with laws, rules, and regulations; injection of new capital; disclosures and restrictions relating to a 

credit life insurance agency operated 

on bank premises by insiders; and discontinuance of cash dividends.

133 Deposits— $4.5 million

Notice of charges issued on September 28, 1978 and consent cease-anddesist order entered on December 20, 

1978. Bank ordered to cease and 

desist from unsafe or unsound practices and take affirmative action with 

respect to acceptable management; 

reduction of adversely classified 

assets and a concentration of credit; 

p ro h ib itio n on the sale and/or 

purchase of assets involving indebtedness of certain persons or their 

interests; adoptions of policies relating to excess funds sold and loan 

policie s; com pliancee w ith laws, 

rules, and regulations; provisions for 

an adequate loan valuation reserve; 

adequate documentation of securities 

transactions; and discontinuance of 

cash dividends.

134 Deposits— $2.2 million

Notice of charges issued on September 28, 1978 and consent cease-and 

desist order entered on December 20, 

1978. Bank ordered to cease and 

desist from unsafe or unsound practices and take affirmative action with 

respect to acceptable management; 

reduction of adversely classified 

assets and a concentration of credit; 

p ro h ib itio n o f the sale a n d /o r 

purchase of assets involving indebtedness of certain persons or their 

interests; compliance with laws, rules, 

and regulations; remuneration to an 

insider; adoptions of policies relating 

to excess funds sold and loans; injection of new capital; discontinuance of 

cash dividends; disclosures and 

restrictions relating to a credit life 

insurance agency operated on bank 

premises by an interest of insiders; 

and assurance that deposit balances 

at other banks are maintained at 

reasonable levels.

135 Deposits— $1 2.8 million

Notice of charges issued on October

12, 1978 and consent cease-and-desist 

order entered on December 7, 1978. 

Bank ordered to cease and desist from 

unsafe or unsound practices and take 

affirmative action with respect to 

acceptable management and board 

membership requirements; reduction 

of adversely classified assets and loan 

volume; adoption of acceptable loan 

policies; overdraft and cash item 

restrictions to a certain corporation; 

restrictions and limitations on extensions of credit to any person or concern, including any person who controls, is controlled by or under common control with such person or concern, or any two or more unrelated 

obligors where repayment is based 

upon the assets of or revenue derived 

from the same source, and the sale of 

excess funds to another financial 

institution; compliance w ith laws, 

rules, and regulations; elimination of 

loan docum entation d e ficien cies; 

injection of new capital; limitations 

and restrictions on the payment of 

cash dividends; provision for an adequate loan valuation reserve; policies 

regarding other real estate; obtaining 

appraisals for other real estate and 

reducing book values accordingly; 

disclosure and restrictions related to 

the sale of credit life insurance or any 

other type of insurance written by 

bank personnel or written on bank 

premises incidental to bank loans; and 

internal control procedures.

136 Deposits— $5.5 million

Notice of charges issued on November 8, 1978 and consent cease-anddesist order entered on December 20, 

1978. Bank ordered to cease and 

desist from unsafe or unsound practices and take affirmative action with 

respect to acceptable management; 

reduction of adversely classified assets 

and overdue loans; provision for an adequate loan valuation reserve; and 

adoption of acceptable loan policies.

137 Deposits— $5.3 million

Consent cease-and-desist order 

entered on November 17, 1978 to replace a temporary order to cease and 

desist. Bank ordered to cease and 

desist from unsafe or unsound practices and take affirmative action with 

respect to acceptable management;

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Federal Reserve Bank of St. Louis
CEASE-AND-DESIST ACTIONS 43

reduction of adversely classified assets 

and overdue loans; provision for adequate liquidity; prohibition as lender to 

a certain corporation; prohibition of 

acting as lead bank in any loan, with or 

without guarantee, which exceeds the 

bank's legal lending limit; collection of 

or conditions under which obligations 

of two insiders may be continued; 

limitation on loan volume; adoption of 

acceptable loan policies; prohibition 

a g ain st p ro v id in g com p en sating 

balances at other banks for the benefit 

of the bank's customers except as permitted by law and upon approval by the 

supervisory authorities; compliance 

with violations of laws and regulations; 

and elimination of loan documentation 

deficiencies.

Formal Written Agreement

Federal Deposit Insurance Act-Section 8(b)

Summary of cases

Bank No.

4 Deposits— $5.1 million

Written Agreement entered into on 

November 8, 1978. Bank agreed for 

purposes of effecting correction of 

unsafe or unsound practices to provide 

acceptable management; reduce loan 

volume; remove all nongovernmental 

o u t-o f-tra d e -a re a ra te -s e n s itiv e 

deposits; correct violations of laws, 

rules, regulations, and technical exceptions; adopt an acceptable loan policy; 

reduce concentrations of credit and 

adversely classified assets; submit a 

plan to increase capital and, until such 

time as a satisfactory capital condition 

is achieved, take commissions from the 

sale of credit life into the income of the 

bank; contract for an independent outside audit; and discontinue cash dividends.

Temporary Cease-and-Desist Actions

Federal Deposit Insurance Act-Section 8(c)

Bank No.

14 Deposits— $3.7 million

Temporary cease-and-desist order 

issued on April 25, 1978. Bank was 

ordered to cease and desist from entering into any business transaction with 

and/or from extending direct or indirect 

credit of any kind to or for the benefit

of the controlling shareholder and/or 

any person related to that person.

A permanent cease-and-desist order 

was issued on August 2, 1978.

15 Deposits— $5.3 million

Temporary cease-and-desist order 

issued on June 16, 1978. Bank was 

ordered to cease and desist from acting 

as lender in a proposed guaranteed 

extension of credit; and participating 

as lead bank in any loan, with or without guarantee, which exceeds the 

bank's legal lending limit, without prior 

ap pro val fro m the sup e rviso ry 

authorities.

A permanent cease-and-desist order 

was issued on November 17, 1978.

16 Deposits— $12.8 million

Temporary cease-and-desist order 

issued on August 2, 1978. Bank was 

ordered to cease and desist from 

extending any additional credit, directly 

or indirectly, to or for the benefit of a 

director, or any payment against 

uncollected funds; engaging in the sale 

of any loan participation with recourse; 

and repurchasing any loan or participation sold by the bank without approval 

from the supervisory authorities. The 

order also placed certain restrictions on 

credit to insiders and the bank's loan 

volume.

The order was outstanding at yearend.

17 Deposits— $13.1 million

Temporary cease-and-desist order 

issued on August 4, 1978. Bank was 

ordered to cease and desist from 

engaging in any business transaction 

with an uninsured affiliated bank; 

extending credit, directly or indirectly, 

to or for the benefit of the controlling 

stockholder, his interests, or persons 

related to him; transacting business of 

the affiliate in any authorized office of 

the bank; and permitting any employee 

of the bank from serving simultaneously as an employee of the affiliate.

The order was outstanding at yearend.

18 Deposits— $103.9 million

Temporary cease-and-desist order 

issued on December 15, 1978. Bank 

was ordered to cease and desist from 

entering into or consummating any 

transaction for the sale of any bank 

asset, whether book or nonbook, for

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Federal Reserve Bank of St. Louis
44 FEDERAL DEPOSIT INSURANCE CORPORATION

any amount less than face value.

The order was outstanding at yearend.

Suspension and Prohibition Actions

Federal Deposit Insurance Act-Section 8(g)

When an officer, director, or other person 

who participates in the management of an 

insured nonmember bank is charged, in an 

in fo rm a tio n , in d ic tm e n t, or c o m p la in t 

authorized by a U.S. Attorney, with the commission of, or participation in, a felony involving 

dishonesty or a breach of trust, the Corporation 

may suspend or prohibit the person from participating in the affairs of the bank. Suspension 

proceedings are initiated by the issuance of a 

Notice and Order of Suspension and Prohibition, which is served on the individual involved, 

specifies the charges, and orders the individual 

to be suspended from his position and 

prohibited from participating in the affairs of 

the bank. The suspension and/or prohibition 

remains in effect until the matter is disposed of 

or terminated by the FDIC. If convicted of the 

offense, a removal order may be issued. After 

the statutory authority fo r suspending 

individuals was ruled unconstitutional by a 

Federal district court in 1976 (Feinbergv. FDIC,

420 F. Supp. 109 (D.D.C. 1976)), the FDIC 

issued regulations during November 1977 to 

address the deficiencies found by the court. 

The FIRIRCA provides hearing requirements for 

section 8(g) actions and thus remedies the constitutional defects found by the court. Four such 

orders were issued in 1978 against three 

individuals serving as officers and/or directors 

of four banks.

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Federal Reserve Bank of St. Louis
MERGER DECISIONS OF THE CORPORATION 

PART THREE

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Federal Reserve Bank of St. Louis
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Federal Reserve Bank of St. Louis
BANKS INVOLVED IN ABSORPTION APPROVED BY

THE FEDERAL DEPOSIT INSURANCE CORPORATION IN 1978

State Town or City Bank Page

Alabama Cullman First Alabama Bank of Cullman (in

organization) 102

First State Bank of Cullman, Alabama, Inc. 102 

Rogersville Bank of East Lauderdale (in organization;

change title to East Lauderdale Banking

Company) 102

East Lauderdale Banking Company 102

California Cloverdale Healdsburg Branch— The First National Bank of

Cloverdale 95

Encino (Los Angeles) First State Bank of Encino (in organization) 80

La Jolla La Jolla Bank & Trust Company 94

Los Angeles (Sun Valley) American Pacific State Bank 53

Los Angeles Imperial Bank 60 

North Hollywood North Hollywood Branch— The Hongkong

Bank of California 53

Oceanside West Coast National Bank 94 

Palo Alto *San Jose and San Francisco Branches—

Camino— California Bank 60 

San Francisco Encino Branch— The Hongkong Bank of

California 80

Santa Rosa Bank of Sonoma County 95

Connecticut Hartford Colonial Bank of Hartford 82 

New Haven Colonial Bank of New Haven (change title to

Colonial Bank) 82

Plainville Colonial Bank of Plainville 82

Waterbury Colonial Bank of Waterbury 82

Florida Auburndale Barnett Bank of Auburndale (change title to

Barnett Bank of East Polk County) 100

Brooksville Hernando State Bank 100

Cocoa Southeast National Bank of Cocoa 100

Collier County Barnett Bank of Collier County 100 

(P.O. Naples)

Deerfield Beach Southeast Bank of Deerfield Beach 100

Dunedin Southeast National Bank of Dunedin 100 

Fort Lauderdale Southeast Everglades Bank of Fort

Lauderdale (change title to Southeast Bank

of Broward) 100

Southeast Bank of Galt Ocean Mile 100 

Haines City The Exchange Bank of Central Florida

(change title to Exchange Bank of Polk County) 100 

Hernando County First American National Bank of Hernando

(P.O. Spring Hill) County 100

Hollywood Southeast Bank of Hollywood Hills 100

Indialantic Landmark Bank of Brevard 100

Jacksonville Atlantic Bank of Lake Forest 100

Atlantic Bank of Normandy 100

Atlantic Bank of South Jacksonville 100 

Atlantic Bank of Springfield (change title to

Atlantic Bank of Jacksonville) 100

Atlantic Bank of West Jacksonville 100

Atlantic University Bank 100

'Banks absorbed in "emergency” approvals under provisions of Section 18(c).

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Federal Reserve Bank of St. Louis
48 FEDERAL DEPOSIT INSURANCE CORPORATION

State Town or City Bank Page

Flagship State Bank of Arlington 100 

Flagship State Bank of Jacksonville (change

title to Flagship Bank of Jacksonville) 100

Flagship State Bank of North Jacksonville 100

Flagship State Bank of South Jacksonville 100 

Lake Worth First American Bank of Lake Worth, National

Association 96 

Largo Southeast First Bank of Largo (change title to

Southeast Bank of Pinellas) 100 

Lauderhill Pan American Bank of Inverrary (change title

to Pan American Bank of Broward) 101 

Melbourne Landmark Bank of Melbourne, National

Association 100

Southeast Bank of Melbourne 100

Miami Commercial Bank & Trust Company 68 

North Miami Branch — City National Bank of

Miami 68

Miramar Southeast Bank of Miramar 100

Naples Barnett Bank of Naples 100 

North Palm Beach First American Bank of North Palm Beach

(change title to First American Bank of Palm

Beach County) 96 

Oakland Park Pan American Bank of Broward County,

National Association 101

Orlando Flagship Bank of Orlando 101 

Flagship Bank of West Orlando, National

Association 101

Pensacola The Bank of West Florida 90 

The West Pensacola Bank (change title to

The West Florida Bank) 90

Pinellas Park Southeast Bank of Pinellas Park 100

Sanford Flagship U.S. Bank of Seminole 100 

Flagship Bank of Sanford (change title to

Flagship Bank of Seminole) 100 

Satellite Beach Southeast First National Bank of Satellite

Beach 100

South Pasadena Southeast National Bank of St. Petersburg 100

Tallahassee Flagship American Bank of Tallahassee 101

Flagship Peoples Bank of Tallahassee 101

The Gulf National Bank 100

The Lewis State Bank 100 

Titusville Southeast Bank of Titusville (change title to

Southeast Bank of Brevard) 100 

Winter Haven Barnett Bank of East Polk County, National

Association 100 

The Exchange National Bank of Winter

Haven 100

Georgia Dalton Hardwick Bank & Trust Company 56

Normandy Carpets Employees' Credit Union 56 

Columbus CB&T Second Mortgage Company (in

organization) 102

Columbus Bank and Trust Company 102

Griffin CBT-lnterim, Inc. (in organization) 102

Commercial Bank & Trust Company 102 

Montezuma The Citizens Bank of Montezuma (change

title to The Bank of Macon County) 54

Oglethorpe Bank of Oglethorpe 54

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Federal Reserve Bank of St. Louis
BANK ABSORPTIONS APPROVED BY THE CORPORATION 49

State Town or City Bank Page

Valdosta Investors of Georgia, Inc. 56

The Park Avenue Bank 56

Illinois Arlington Heights *North Point State Bank 98

The Bank & Trust Company of Arlington Heights 98

Chicago Drovers Bank of Chicago (in organization) 54

*The Drovers' National Bank of Chicago 54

Indiana Cross Plains The Cross Plains State Bank 57

East Enterprise East Enterprise State Bank 85

New Albany American Bank 63

Floyd County Bank 63

Versailles Bank of Versailles 57

Vevay Vevay Deposit Bank 85

Kentucky Cynthiana Harrison State Bank Company (in organization) 102

The Harrison Deposit Bank and Trust Company 102

Maine Bangor Depositors Trust Company of Bangor

(change title to Depositors Trust Company of

Eastern Maine) 98

Ellsworth The Liberty National Bank in Ellsworth 98

Gardiner Gardiner Savings Institution 86

Hallowell Hallowell Savings and Loan Association 86 

Portland Depositors Trust Company of Portland

(change title to Depositors Trust Company of

Southern Maine) 99

Springvale Springvale National Bank 99

Maryland Baltimore The Equitable Trust Company 83 

Hancock Blue Ridge Trust Company (in organization;

change title to The Peoples National Bank of

Hancock) 102

The Peoples National Bank of Hancock 102

Hyattsville Suburban Trust Company 75

Potomac Free State Bank and Trust Company 7 5

Salisbury Truckers and Savings Bank 83 

Silver Spring American Bank of Maryland (change title to

First American Bank of Maryland 87

Towson Chesapeake National Bank 87

Michigan Brighton BSB Bank (in organization) 102

The Brighton State Bank 102

Frankenmuth Frankenmuth Bank & Trust 88 

Hartford VB State Bank (in organization; change title to

Van Buren State Bank) 102

Van Buren State Bank 102 

Merrill The Farmers and Merchants State Bank of

Merrill 88 

Newport Newport Bank (in organization; change title

to The Newport State Bank) 102

The Newport State Bank 102

Missouri Hawk Point Peoples Bank of Hawk Point (change title to

Peoples Bank of Lincoln County) 91

Troy Citizens Bank of Troy 91

'Banks absorbed in “ emergency" approvals under provisions of Section 18(c).

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Federal Reserve Bank of St. Louis
50 FEDERAL DEPOSIT INSURANCE CORPORATION

State Town or City Bank Page

New Jersey Atlantic City Guarantee Bank 69 

Clifton Phillipsburg and Pohatcong Branches— New

Jersey Bank (National Association) 64

Delran Township Bank of West Jersey 97 

(P.O. Delran)

Moorestown Burlington County Trust Company 97

Swedesboro Swedesboro Trust Company 69

Raritan Township The Town & Country Bank 64 

(P.O. Flemington)

New York Albany Albany Savings Bank 71

Attica The Citizens Bank 81

Buffalo Erie Federal Savings and Loan Association 58 

Le Roy The Bank of Le Roy

(change title to Genesee

Country Bank) 81

New York East River Savings Bank 58 

(Manhattan)

The New York Bank for Savings 84 

Oneida Oneida Federal Savings and Loan

Association 71 

Port Jervis First Chartered Savings and Loan

Association 84

North Carolina Fayetteville The Cumberland Bank 81 

Jacksonville Morehead Plaza Branch— Bank of North

Carolina, National Association 79 

Morehead City County Bank & Trust Company (in

organization) 79

Rocky Mount Peoples Bank & Trust Company 81

Ohio Harpster The Harpster Bank 65 

Union Township F. S. B. C. State Bank (in organization;

(P.O. Morristown) change title to The Eastern Ohio Bank) 102

The Eastern Ohio Bank 102

Upper Sandusky The Commercial Savings Bank 65

Oregon Coos Bay Western Bank 89

Lincoln City Lincoln Bank 67

McMinnville Yamhill County Bank 67

Medford Crater National Bank 89

Pennsylvania Abbottstown Abbottstown State Bank 73

Bedford The First National Bank in Bedford 60

Brockway Brockway Citizens Bank 72

Brookville Brookville Bank and Trust Company 7 2

Hanover Farmers Bank and Trust Company of Hanover 73

Hawley The First National Bank of Hawley 76

Johnstown Johnstown Bank and Trust Company 60

Scranton West Side Bank (change title to First State Bank) 76

South Dakota Morristown First Security Bank 93 

Watertown Farmers and Merchants Bank and Trust of

Watertown 93

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Federal Reserve Bank of St. Louis
BANK ABSORPTIONS APPROVED BY THE CORPORATION 51

State Town or City Bank Page

Texas Austin 900 Congress State Bank (in organization;

change title to Texas State Bank) 102

Texas State Bank 102

Clifton Clifton Bank 102

New Clifton State Bank (in organization) 102

Dallas Greenville Avenue Bank & Trust 102 

Walnut Hill & Greenville Bank (in 

organization; change title to Greenville

Avenue Bank and Trust) 102

Fort Worth Bank of Fort Worth 102 

Camp Bowie Bank (in organization; change

title to Ridglen Bank) 102 

New Bank of Fort Worth (in organization;

change title to Bank of Fort Worth) 102

Ridglen Bank 102

Houston Allied Champions Bank (in organization) 102

Champions Bank 102 

East Freeway State Bank (in organization; 

change title to First State Bank and Trust

Company of Houston) 102 

First State Bank and Trust Company of

Houston 102

Main Bank of Houston 102

New Main Bank of Houston (in organization) 102

Lewisville Lewisville State Bank 102

New Lewisville State Bank (in organization) 102

Utah Helper The Helper State Bank 67

Kamas Kamas State Bank 77

Logan Commercial Security Bank of Logan 70

Ogden Commercial Security Bank 67 

Citizens National Bank (change title to The

Citizens Bank) 77

Salt Lake County Commercial Security Bank of Salt Lake 55 

(P.O. Salt Lake City)

Virginia Herndon

McLean 

Springfield

Other Areas

Puerto Rico Mayaguez

Ponce 

San Juan 

(P.O. Hato Rey)

San Juan Banco de Santander-Puerto Rico 62

Banco Popular de Puerto Rico 62

Arlington Trust Company, Incorporated 

(change title to First American Bank of

Virginia) 59

Clarendon Bank & Trust 59

Alexandria National Bank of Northern Virginia 59

Banco Comercial de Mayaguez 78

"Banco Credito y Ahorro Ponceno 62

*Banco de Ahorro de Puerto Rico 78

*Banks absorbed in “ emergency” approvals under provisions of Section 18(c).

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Federal Reserve Bank of St. Louis
52 FEDERAL DEPOSIT INSURANCE CORPORATION

BANKS INVOLVED IN ABSORPTIONS DENIED BY

THE FEDERAL DEPOSIT INSURANCE CORPORATION IN 1978

State Town or City Bank Page

Indiana Edinburg The Edinburg State Bank 103

Franklin Franklin Bank and Trust Company 103

Mississippi Magnolia Southwest Mississippi Bank (change title to

First Bank of Southwest Mississippi) 105

McComb BankofMcComb 105

New Jersey Linwood The Mainland Bank 107

Westmont First Peoples Bank of New Jersey 107

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Federal Reserve Bank of St. Louis
53

BANK ABSORPTIONS APPROVED BY THE CORPORATION

Resources 

(in thousands 

of dollars)

Banking offices 

in operation

Before After

American Pacific 16,584

State Bank

Los Angeles (Sun 

Valley), California

to acquire assets and

assume deposit liabilities of

North Hollywood

Branch— 3,372*

The Hongkong Bank

of California

North Hollywood

*Total deposits of office to be transferred by the Hongkong 

Bank of California. Assets not reported by office.

Summary report by Attorney General, 

September 21, 1977

We have reviewed this proposed transaction 

and conclude that it would not have a substantial competitive impact.

Basis for Corporation approval,

January 11,1978

American Pacific State Bank, Los Angeles, 

California ("American"), a State nonmember 

insured bank w ith to ta l resources of 

$16,584,000 and IPC deposits of $12,279,- 

000, has applied, pursuant to Section 18(c) 

and other provisions of the Federal Deposit 

Insurance Act, for the FDIC's prior consent to 

acquire a portion of the assets of and assume 

liability to pay a portion of the deposits made 

in The Hongkong Bank of California, San Francisco, California ("Hongkong"), and to establish the North Hollywood Branch (total 

deposits $3,372,000) of the latter as a 

branch of American, increasing the number of 

its offices to two.

Competition. American operates its sole 

office in Sun Valley, a section of the city of Los 

Angeles located approximately 15 miles 

northwest of the downtown area.

Hongkong operates nine offices with its head 

office and one branch in San Francisco, five 

branches in Los Angeles County, one branch in 

Sacram ento, and one in Agana, Guam. 

Hongkong has indicated its intention to confine 

its operations to major financial and foreign 

trade centers and to reduce its retail business, 

and the disposition of its North Hollywood 

Branch is a part of this retrenching program.

The proposed transaction would have its 

most direct and immediate effects in the trade 

area of Hongkong's North Hollywood Branch. 

This branch is located approximately 11 miles 

northwest of downtown Los Angeles in a 

section of the city known locally as North 

Hollywood (estimated population 93,000). The 

area is primarily a "bedroom" community with 

economic activity limited to retail and service 

type businesses. In this local area, five banks 

maintain seven offices holding aggregate IPC 

deposits of $198,368,000. Hongkong holds 

the smallest share ($2,946,000), a nominal 1.5 

percent of IPC deposits. American is not 

represented in the trade area. Following the 

proposed transaction, American would acquire 

Hongkong's small share of these deposits.

Hongkong's North Hollywood Branch is 

located approximately 4 road-miles southwest 

of American's sole office. Both banks are 

located in the Los Angeles metropolitan area 

which can be approximated by Los Angeles 

County. Within Los Angeles County, American 

ranks as the 64th largest commercial banking 

organization and has a 0.04-percent share of 

the countywide IPC deposits. Hongkong ranks 

31 st with a 0.16-percent share. Although some 

existing competition between the two banks 

w ould be elim inated by the proposed 

transaction, the addition of Hongkong's 

deposits to American's totals would constitute 

a de minimus addition to existing concentration 

levels within the county and would not 

perceptibly affect its commercial banking 

structure.

As California law provides for statewide 

branching, American could enter the trade area 

through de novo branching, although expansion 

into this area dominated by other banks is not 

anticipated. Hongkong is retrenching and is not 

likely to expand its operations in the area 

through de novo branching.

For these reasons, it appears that the 

approval of the transaction would not eliminate 

significant existing or potential competition between the proponents, nor would it affect the 

structure of commercial banking in any relevant 

area. The Board of Directors, therefore, has 

concluded that the proposed transaction would 

not, in any section of the country, substantially 

lessen competition, tend to create a monopoly, 

or in any other manner be in restraint of trade.

Financial and Managerial Resources; Future

Prospects. American has satisfactory financial 

and managerial resources and the proposed 

transaction should have no adverse effect on 

these resources. Its future prospects appear 

favorable.

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Federal Reserve Bank of St. Louis
54 FEDERAL DEPOSIT INSURANCE CORPORATION

Convenience and Needs of the Community

to be Served. American will not offer the trust 

and international services presently offered by 

Hongkong, and American's lending limits are 

lower. The effect on convenience and needs is 

not considered meaningful, however, as the 

two largest banks in the State serve the area 

and can provide these services to the small 

segm ent of the population w ith in the 

community of Sun Valley who require them. 

American will offer more aggressive retail 

services in this area.

Based on the foregoing, the Board of 

Directors has concluded that approval of the 

application is warranted.

Resources 

(in thousands 

of dollars)

Banking offices 

in operation

Before After

Drovers Bank of

Chicago

(in organization) 

Chicago, Illinois

12,127 0 1

to purchase certain assets

and assume the deposit

liabilities of

The Drovers' National

Bank of Chicago

Chicago

260,275 1

Approved under emergency provisions. No 

report received from the Attorney General.

Basis for Corporation approval,

January 19, 1978

Pursuant to Sections 5 and 18(c) and other 

provisions of the Federal Deposit Insurance Act, 

applications have been filed for Federal deposit 

insurance on behalf of Drovers Bank of Chicago, 

Chicago, Illinois, a newly chartered State nonmember bank having $12,126,501 in capital, 

and for consent to its purchase of certain assets 

of and assumption of liability to pay deposits 

made in The Drovers' National Bank of Chicago, 

Chicago, Illinois, w ith total resources of 

$260,275,000 as of June 30, 1977.

As of January 19, 1978, The Drovers' 

National Bank of Chicago had deposit and other 

liabilities of some $233,100,000 and operated 

one office. On January 19, 1978, the Federal 

Deposit Insurance Corporation was appointed as 

Receiver of The Drovers' National Bank of 

Chicago.

The Board of Directors finds that the failure of 

The Drovers' National Bank of Chicago requires it 

to act immediately and thus waives publication

notice, dispenses with the solicitation of competitive reports from other agencies, and authorizes 

the transaction to be consummated immediately.

Resources 

(in thousands 

of dollars)

Banking offices 

in operation

Before After

The Citizens Bank

of Montezuma

Montezuma, Georgia 

(change title to The 

Bank of Macon County)

13,729 1 2

to consolidate with

Bank of Oglethorpe

Oglethorpe

8,831 1

Summary report by Attorney General, 

October 18, 1977

We have reviewed this proposed transaction 

and conclude that it would not have a substantial competitive impact.

Basis for Corporation approval,

January 25, 1 978

The Citizens Bank of Montezuma, Montezuma, Georgia ("Citizens Bank” ), an insured 

State nonmember bank with total resources 

of $13,729,000 and total IPC deposits of 

$10,022,000, has applied, pursuant to Section 

18(c) and other provisions of the Federal 

Deposit Insurance Act, for the Corporation's 

prior consent to consolidate with the Bank of 

Oglethorpe, Oglethorpe, Georgia ("Oglethorpe 

Bank"), an insured State nonmember bank with 

total resources of $8,831,000 and total IPC 

deposits of $7,267,000, under a new charter 

with the title "The Bank of Macon County." 

Oglethorpe Bank's sole office would become 

the only branch of the resultant bank.

Competition. The two banks are located in 

cities situated about 2 miles apart in Macon 

County which is in south-central Georgia. The 

county had a 1970 population of 12,933 

which represented a 1.8-percent decline from 

the 1 960 figure. In this very sparsely populated 

agricultural area, the banking market most 

relevant to an evaluation of this proposed 

transaction would, in our opinion, be an area 

within a radius of approximately 20 road-miles 

of Montezuma and Oglethorpe. This would 

include all of Macon County and adjoining 

portions of Sumter, Schley, Taylor, Crawford, 

Peach, Houston, and Dooly Counties. This area 

is primarily rural with an economy predicated 

chiefly upon agriculture. The city of Americus, 

with a 1970 population of 16,091, is located

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Federal Reserve Bank of St. Louis
BANK ABSORPTIONS APPROVED BY THE CORPORATION 55

17 road-miles southwest of Oglethorpe and 

serves as the area's economic center. Americus 

and the city of Perry, which had a 1970 

population of 7,771 and is about 20 road-miles 

northeast of Montezuma, provide the major 

sources of nonfarm employment and shopping 

convenience to local residents. The relevant 

market, with the exception of Americus and 

Perry, has experienced a moderate decline in 

population. Its median household buying level is 

substantially below the 1976 state median.

Some direct competition would be eliminated by this proposal. The competitive effect 

of the transaction, however, is regarded as 

insignificant in light of the number of alternative 

sources of commercial banking services available. Of the 18 banks operating 22 banking 

offices in the relevant area, the proponents rank 

6th and 1 2th in percentage of total deposits 

held. The resultant bank would hold merely 

10.2 percent of such deposits and would rank 

third. It appears that a competitive banking climate would continue and no significant adverse 

competitive effects would accrue as a result of 

the proposed consolidation.*

Under Georgia's statutes, each bank may 

branch within Macon County, and as a result, 

the prospect of increased competition between 

the proponents by their de novo expansion 

would be eliminated by the proposal. In light of 

the low population density, below average 

economic indices (such as median household 

buying levels), and the current employment and 

shopping commutation patterns, however, such 

expansion does not appear to be likely.

Based on the foregoing, the Board of Directors is of the opinion that the proposed transaction would not, in any section of the country, 

substantially lessen competition, tend to create 

a monopoly, or in any other manner be in 

restraint of trade.

Financial and Managerial Resources; Future

Prospects. Both banks have satisfactory financial and managerial resources, and the resultant 

bank would have favorable future prospects.

Convenience and Needs of the Community

to be Served. The proposed consolidation 

would not substantially change the services 

now available to customers of either bank, 

except that the resultant bank would have an 

increased lending limit.

’ Principals of Citizens Bank acquired effective stock control of Oglethorpe Bank on June 27, 1977. Since the current affiliation of the two banks has not heretofore been 

subject to regulatory scrutiny, the affiliation is of no persuasive value in determining, for purposes of the Bank 

Merger A ct what competitive impact, if any, the proposed 

transaction may have. Therefore, the Board of Directors 

has ignored the affiliation in its assessment of the proposal.

Based on the foregoing, the Board of Directors has concluded that approval of the application is warranted.

Resources

Banking offices 

in operation

of dollars) Before After

Commercial Security

Bank

Ogden, Utah

323,987 15 17

to merge with

Commercial Security

Bank

of Salt Lake

Salt Lake County (P.O. 

Salt Lake City)

20,865 2

Summary report by Attorney General, 

November 15, 1977

The merging banks are both wholly owned 

subsidiaries of the same bank holding company. 

As such, their proposed merger is essentially a 

corporate reorganization and would have no 

effect on competition.

Basis for Corporation approval,

January 25, 1978

Commercial Security Bank, Ogden, Utah 

("Applicant"), an insured State nonmember 

bank with total resources of$323,987,000 and 

total IPC deposits of $238,877,000, has 

applied, pursuant to Section 18(c) and other 

provisions of the Federal Deposit Insurance Act, 

for the Corporation's prior consent to merge 

with Commercial Security Bank of Salt Lake, 

Salt Lake County (P.O. Salt Lake City), Utah 

("Other Bank"), an insured State nonmember 

bank with total resources of $20,865,000 and 

total IPC deposits of $14,956,000. The banks 

would merge under the charter and title of 

Applicant, and incident to the transaction, the 2 

offices of Other Bank would be established as 

branches of the resulting bank bringing the total 

number of its offices to 17.

Competition. Essentially a corporate 

reorganization, the proposal would provide a 

means by w h ich C om m ercial S e c u rity 

Bancorporation, Ogden, Utah, a registered bank 

holding company, may consolidate most of its 

operations. The proponents have been under 

common control since 1974. The proposed 

merger would not affect the structure of 

commercial banking or the concentration of 

banking resources within any relevant market.

In view of the foregoing, the Board of 

Directors is of the opinion that the proposed

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merger would not, in any section of the country, 

tend to create a monopoly, or in any other 

manner be in restraint of trade.

Financial and Managerial Resources; Future

Prospects. The proponents' financial and 

managerial resources are considered adequate 

for the purposes of this proposal. The financial 

and managerial resources of the resultant bank 

would be satisfactory and its future prospects 

appear favorable.

Convenience and Needs of the Community

to be Served. The services to be offered in the 

relevant market by the resultant bank would not 

differ materially from those presently offered 

by each proponent.

On the basis of the foregoing information, 

the Board of Directors has concluded that 

approval of the application is warranted.

Resources 

(in thousands 

of dollars)

Banking offices 

in operation

Before After

Hardwick Bank & Trust

Company

Dalton, Georgia

49,972 4 4

to purchase the assets

and assume the liabilities of

Normandy Carpets

Employees'

Credit Union

Dalton

99

Approved under emergency provisions. No 

report requested from the Attorney General.

Basis for Corporation approval, 

February 1 6, 1 978

Pursuant to Section 18(c) and other provisions of the Federal Deposit Insurance Act, 

Hardwick Bank & Trust Company, Dalton, 

Georgia, a State nonmember insured bank with 

total resources of $49,972,000 and total IPC 

deposits of $41,468,000, has applied for the 

Corporation's prior consent to purchase the 

assets and assume the liabilities of Normandy 

Carpets Employees' Credit Union, Dalton, 

Georgia ("Credit Union” ), a State-chartered, 

noninsured financial institution with total 

resources of $ 9 9 ,0 0 0 and liabilities of 

$91,000.

The Board of Directors finds that the fact 

that the Georgia Department of Banking and 

Finance has taken possession as receiver of 

Credit Union requires it to act immediately and 

thus waives publication of notice and dispenses 

with ths solicitation of competitive reports from 

other agencies, and authorizes the transaction 

to be consummated immediately.

Resources 

(in thousands 

of dollars)

Banking offices 

in operation

Before After

The Park Avenue Bank

Valdosta, Georgia

11,237 2 2

to merge with

Investors of Georgia,

Inc.

Valdosta

271

Summary report by Attorney General, 

November 30, 1977

We have reviewed this proposed transaction 

and conclude that it would not have a substantial competitive impact.

Basis for Corporation approval, 

February 16, 1978

The Park Avenue Bank, Valdosta, Georgia 

("Park Bank"), an insured State nonmember 

bank with total resources o f$ 1 1,237,000 and 

total IPC deposits of $8,734,000, has applied 

pursuant to Section 18(c) and other provisions 

of the Federal Deposit Insurance Act, for the 

Corporation's prior consent to merge, under its 

charter and title, with Investors of Georgia, Inc., 

Valdosta, Georgia ("Company"), a noninsured 

financial company with total resources of 

$271,000 (as of November 14, 1977). Park 

Bank presently operates one branch in the city 

of Valdosta. Company occupies office space at 

Park Bank's main office, and no additional 

offices are involved in the proposed merger.

Competition. Both institutions operate in 

Lowndes County, Georgia, which borders on 

the State of Florida. The county, which had a 

1970 population of 55,112, is primarily rural 

with an economy predicated chiefly upon 

agriculture. The city of Valdosta, (1970 

population 32,303) serves as the county seat 

and the area's economic center. Six banking 

organizations operated a total of 14 banking 

offices in the county. The local banking market 

is dominated by three offices of the State's 

largest banking organization, which holds 37.8 

percent of the county's IPC deposits. Park Bank 

holds 7.3 percent of such deposits and ranks 

fourth in the county by that measure. The 

proposed transaction will have no effect upon 

these percentages and is not regarded as 

having any significant effect upon competition 

in Lowndes County.

Due to the asset structure and nature of 

Company, and the fact that it was established 

by the principal shareholders of Park Bank, it is 

doubtful that direct competition with Park Bank 

has ever existed. As Company is phasing down 

its activities with a view toward possible

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dissolution, the potential for future competition 

is nonexistent and not regarded as material to 

the consideration of the proposed transaction.

Based on the foregoing, the Board of 

Directors is of the opinion that the proposed 

transaction would not, in any section of the 

country, substantially lessen competition, tend 

to create a monopoly, or in any other manner be 

in restraint of trade.

Financial and Managerial Resources; Future

Prospects. Both institutions have adequate 

financial and managerial resources for the 

p u rp o s e o f th is p ro p o s a l. W ith the 

contemplated increase in capital, the resultant 

bank would have favorable future prospects.

Convenience and Needs of the Community

to be Served. The proposed merger would have 

no material effect on services now available to 

customers in the service area. Considerations of 

convenience and needs of the community are 

consistent with approval of the application.

Based on the foregoing, the Board of 

Directors has concluded that approval of the 

application is warranted.

Resources 

(in thousands 

of dollars)

Banking offices 

in operation

Before After

Bank of Versailles

Versailles, Indiana

7,257 2 3

to merge with

The Cross Plains

State Bank

Cross Plains

1,957 1

Summary report by Attorney General, 

September 14, 1977

We have reviewed this proposed transaction 

and conclude that it would not have a substantial competitive impact.

Basis for Corporation approval, 

February 16, 1978

Bank of Versailles, Versailles, Indiana, a State 

nonmember insured bank, with total resources 

of $7,257,000 and total IPC deposits of 

$5,602,000, has applied, pursuant to Section 

18(c) and other provisions of the Federal 

Deposit Insurance Act, for the Corporation's 

prior consent to merge, under its charter and 

title, with The Cross Plains State Bank, Cross 

Plains, Indiana ("S ta te B ank"), a State 

nonmember insured bank with total resources 

of $1,957,000 and total IPC deposits of 

$1,510,000. Incident to the transaction, the 

sole office of State Bank would be established 

as a branch of the resultant bank.

Competition. The proponents are located in 

Ripley County, which is in southeastern Indiana. 

Bank of Versailles operates a main office and a 

branch in Versailles (1970 population 1,120), 

the county seat, approximately 10 road-miles 

northwest of Cross Plains where State Bank 

maintains its sole office. Ripley County (1970 

population 21,138) is rural with an economy 

predicated chiefly upon agricultural activities. 

The so u thern p o rtio n s of the cou nty 

experienced a population decline in the period 

1960 to 1970 with the town of Versailles 

recording a 12-percent loss. The county ranks 

substantially below the 1976 State median 

household buying level.

Of the 8 commercial banks operating 11 

offices in Ripley County, Bank of Versailles and 

State Bank are the smallest 2, holding 5.0 percent and 1.3 percent of the county's IPC 

deposits, respectively. The resultant bank 

would hold 6.3 percent of such deposits and 

continue to rank as the county's smallest commercial bank in IPC deposit holdings. It would 

appear that the structure of commercial banking in Ripley County would not be significantly 

effected by the proposed transaction.*

Under Indiana statutes, banks headquartered 

in Ripley County may branch de novo and 

merge only within the confines of the county, 

subject to home office protection. In light of the 

limited scope of operation of the proponents 

and the limited number of towns in the county 

which are not already served by a home office 

or branch of an established bank, de novo

branching appears an unlikely vehicle for 

increased future competition between these 

two banks.

The primary trade area most affected by the 

proposed transaction would be the area within a 

10-mile radius of Cross Plains, including the 

southern portion of Ripley County and adjoining 

portions of Dearborn, Ohio, Switzerland, and 

Jefferson Counties. The population of the area 

is approximately 8,700. A total of four commercial banks operate five offices in the area 

with the proponents ranking third and fourth in 

percentage of IPC deposits held. The resultant 

bank would hold 30.3 percent of such deposits

‘ On May 23, 1977, Mr. John House, principal stockholder 

of the Bank of Versailles, purchased effective stock control of State Bank. In December, 1977, effective stock 

control of both proponents was sold to Frank L. Farrar. 

Since the current affiliation of the two banks has not 

heretofore been subject to regulatory scrutiny, the affiliation is of no persuasive value in determining, for purposes 

of the Bank Merger Act, what competitive impact, if any, 

the proposed transaction may have. Therefore, the Board 

of Directors has ignored the affiliation in its assessment of 

the proposal.

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58 FEDERAL DEPOSIT INSURANCE CORPORATION

and remain the smallest competitor in the trade 

area. Due to the depressed economic situation 

and relatively small market area, the slight 

increase in concentration that will result from 

this merger is not competitively significant.

A number of alternate sources of commercial 

banking services are available in the nearby 

urban areas of Madison and LawrenceburgAurora, where a number of the trade area's residents commute for shopping alternatives and 

nonfarm employment. It would appear that a 

competitive banking climate would continue in 

the market and that no significant adverse competitive effect would accrue as a result of the 

proposed transaction.

Based on the foregoing, the Board of Directors is of the opinion that the proposed transaction would not, in any section of the country, 

substantially lessen competition, tend to create 

a monopoly, or in any other manner be in 

restraint of trade.

Financial and Managerial Resources; Future

Prospects. The considerations relating to financial and managerial resources of each institution have been satisfactorily resolved. The 

resultant bank is anticipated to have favorable 

future prospects.

Convenience and Needs of the Community

to be Served: The proposed merger would 

result in no substantial change in the services 

now available to customers of either bank. Considerations of convenience and needs of the 

community are consistent with approval of the 

application.

Based on the foregoing, the Board of Directors has concluded that approval of the application is warranted.

Resources 

(in thousands 

of dollars)

Banking offices 

in operation

Before After

East River Savings

Bank

New York (Manhattan),

New York

1,495,334 13 17

to merge with

Erie Federal Savings

and Loan Association

Buffalo

57,384 4

Summary report by Attorney General, 

January 4, 1977

The closest offices of Applicant and Erie are 

450 miles apart, and according to the application, each has an insignificant number of

accounts originating from the area served by 

the other. The proposed transaction, therefore, 

would not eliminate any significant existing 

competition. Erie holds the seventh largest 

share (1.2 percent) of deposits held by the 10 

thrift institutions presently operating in Erie 

County (three savings banks, which hold 

approximately .91 percent of Erie County thrift 

institutions deposits, and four savings and loan 

associations).

In view of Erie's size and position among Erie 

County thrift institutions, Applicant's entry into 

Buffalo by means of the proposed acquisition 

would not have an adverse effect upon competition.

Basis for Corporation approval, 

February 24, 1 978

East River Savings Bank, New York (Manhattan), New York ("Savings Bank” ), an insured 

mutual savings bank with total resources of 

$ 1 ,4 9 5 ,3 3 4 ,0 0 0 and total deposits of 

$1,391,594,000, has applied, pursuant to 

Section 18(c) and other provisions of the 

Federal Deposit Insurance Act, fo r the 

Corporation's prior consent to merge, under its 

charter and title, with Erie Federal Savings and 

Loan A s s o c ia tio n , B uffa lo , New York 

(“ Association” ), a federally insured savings and 

loan association with total resources of 

$ 5 7 ,3 8 4 ,0 0 0 and to ta l d e p o s its o f 

$51,357,000. Incident to the merger, the 4 

offices of Association would become branches 

of the resultant bank, increasing to 17 the 

number of its offices.

Competition. The market most affected by 

the proposed transaction would be Erie County, 

New York, where Association operates its head 

office and three branches. Erie County (1970 

population 1,113,491) is located in the 

northwestern portion of New York State 

adjacent to the Canadian border. Buffalo (1970 

population 462,768) is the area's largest city 

and chief economic center and is regarded as a 

regional center for wholesale, retail, and foreign 

trade. While the city of Buffalo has sustained a 

decrease in population in the period 1960 to 

1970 and ranks below the 1 976 State median 

household buying level, the surrounding area of 

Erie County has shown a reversal of those 

trends. Erie County has a stable, diversified 

economic base predicated upon heavy industry, 

manufacturing, transportation, service, and 

retail business.

The Erie County thrift institution market 

contains 3 mutual savings banks and 7 savings 

and loan associations operating a total of 60 

banking offices. Association is the seventh 

largest of these institutions, holding 1.3 percent 

of the county's thrift institution deposits.

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The primary service area of Savings Bank 

consists of the New York City - Long Island 

metropolitan market which is located in the 

extreme southeastern portion of New York 

State. The trade areas of the two proponents 

are regarded as separate and distinct, with a 

distance of more than 400 miles separating 

their nearest offices. It is evident that there is no 

significant existing competition between the 

two institutions which would be eliminated by 

their merger.

Any possibility that competition may develop 

between the proponents through de novo

branching appears remote. The modest size of 

Association would seem to preclude its entry 

into the distant, intensively com petitive 

metropolitan New York City market. Savings 

Bank, governed by a State statute limiting its de

novo expansion to one such office each year, 

would likely prefer entry into an area less distant 

than the Buffalo market.

Under the circumstances, the Board of 

Directors is of the opinion that the proposed 

merger would not, in any section of the country, 

substantially lessen competition, tend to create 

a monopoly, or in any other manner be in 

restraint of trade.

Financial and Managerial Resources; Future

Prospects. The financial and managerial 

resources of each institution, and of the 

resulting bank, are considered satisfactory. 

W ith th e c o n te m p la te d a d d itio n o f 

subordinated debentures to the surplus, the 

future prospects of the resulting bank are 

favorable.

Convenience and Needs of the Community

to be Served. Savings Bank's entry into the 

Buffalo market would make available certain 

services not now offered by Association. 

Considerations of convenience and needs of 

the community to be served are consistent with 

approval of the application.

Resources 

(in thousands 

of dollars)

Banking offices 

in operation

Before After

Arlington Trust

Company, Incorporated

Herndon, Virginia 

(change title to First 

American Bank of 

Virginia)

276,603 15 43

to merge with

Clarendon Bank &

Trust

McLean

248,595 16

and

Alexandria National

Bank

of Northern Virginia

Springfield

148,222 12

Summary report by Attorney General, 

December 20, 1977

The merging banks are both wholly owned 

subsidiaries of the same bank holding company. 

As such, their proposed merger is essentially a 

corporate reorganization and would have no 

effect on competition.

Basis for Corporation approval, 

February 24, 1978

Arlington Trust Company, Incorporated, 

Herndon, Virginia ("Arlington Trust''), an 

insured State nonmember bank with total 

resources o f$ 276 ,6 03 ,0 00 and total IPC 

deposits of $209 ,2 48 ,0 00 , has filed an 

application pursuant to Section 18(c) and other 

provisions of the Federal Deposit Insurance Act, 

seeking the Corporation's prior written approval 

to merge with Clarendon Bank & Trust, 

McLean, Virginia ("Clarendon Bank"), with total 

resources of $248,595,000 and total IPC 

deposits of $204,137,000, and Alexandria 

National Bank of Northern Virginia, Springfield, 

Virginia ("Alexandria National"), with total 

resources of $148,222,000 and total IPC 

deposits of $126,991,000. The resultant bank 

will operate under the charter of Arlington Trust 

and with the title First American Bank of 

Virginia. The 17 offices of Clarendon Bank 

(including 1 approved but unopened branch) 

and 12 offices of Alexandria National would be 

established as branches of the resultant bank, 

and incident to the merger, the main office 

location would be redesignated to the present 

main office site of Clarendon Bank. The 

resultant bank would commence operations 

with a total of 44 offices.

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Competition. All three banks are controlled 

by Financial General Bankshares, Inc., 

Washington, D.C. This holding company is the 

eighth largest commercial banking organization 

in Virginia, controlling eight commercial banks 

w h o s e t o t a l d e p o s its a g g r e g a te 

$773,670,000, or 5.0 percent of the State's 

total commercial bank deposits. The sole 

purpose of the proposed merger is to enable 

F inancial G eneral Bankshares, Inc. to 

consolidate its operations in Northern Virginia. 

The proposed merger is essentially a corporate 

reorganization and would not affect the 

structure of commercial banking or the 

concentration of banking resources in any 

relevant market area.

Under those circumstances, the Board of 

Directors is of the opinion that the proposed 

merger would not, in any section of the country, 

substantially lessen competition, tend to create 

a monopoly, or in any other manner be in 

restraint of trade.

Financial and Managerial Resources; Future

Prospects. Each of the three proponents has 

adequate financial and managerial resources for 

the business they conduct, as would the 

resultant bank. The future prospects of the 

resultant bank are favorable.

Convenience and Needs of the Community

to be Served. The services to be offered in the 

relevant market by the resultant bank would not 

differ materially from those presently offered 

by each proponent.

On the basis of the foregoing, the Board of 

Directors has concluded that approval of the 

application is warranted.

Resources 

(in thousands 

of dollars)

Banking offices 

in operation

Before After

Imperial Bank

Los Angeles, 

California

315,854 13 15

to purchase certain assets

and assume the deposit

liabilities of

San Jose and San

Francisco Branches —

Camino—California

Bank

Palo Alto

10,386* 2

'Total IPC deposits of two branches of Camino — California 

Bank to be acquired by Imperial Bank. Assets not reported 

by office.

Approved under emergency provisions. No 

report requested from the Attorney General.

Basis for Corporation approval,

March 10, 1978

Pursuant to Section 18(c) and other provisions of the Federal Deposit Insurance Act, 

Imperial Bank, Los Angeles, California, an 

insured State nonmember bank with total 

resources o f$ 3 1 5,854,000 and total IPC 

deposits of $24^,1 76,000, has applied for the 

Corporation's prior consent to purchase certain 

assets and assume the liability to pay deposits 

made in two branches of Camino — California 

Bank, Palo Alto, California ("Camino Bank” ), 

also an insured State nonmember bank, with 

total resources of $22,111,000 and total IPC 

deposits of $17,267,000. The San Jose and 

the San Francisco branches (total IPC deposits 

of $10,386,000) of Camino Bank would be 

established as branches of Imperial Bank under 

the terms of the proposed transaction.

The Board of Directors finds that the 

probability of imminent failure of the Camino 

Bank requires it to act immediately and thus 

waives publication of notice and dispenses with 

the solicitation of competitive reports from 

other agencies, and authorizes the transaction 

to be consummated immediately.

Resources 

(in thousands 

of dollars)

Banking offices 

in operation

Before After

Johnstown Bank and

Trust Company

Johnstown,

Pennsylvania

149,748 16 20

to merge with

The First National Bank

in Bedford

Bedford

30,191 4

Summary report by Attorney General, 

December 13, 1977

Bank's office locations are limited to Bedford 

County, where Applicant at present has no 

offices. The closest offices of the two institutions are approximately 25 miles apart and are 

located in different markets. No branch offices 

of either bank will be closed if the merger is 

consummated. Accordingly, the merger should 

have no appreciable effect on actual competition in the market area now served by Bank.

The proposed merger, however, will have an 

adverse effect on potential competition in Bedford County. At present eight banks have office 

locations there, of which Bank is the second 

largest. Banking is highly concentrated: the top 

two banks have a combined market share of 51

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BANK ABSORPTIONS APPROVED BY THE CORPORATION 61

percent and the top four have a combined 

market share of 76 percent. Bank's market 

share is approximately 21 percent. As a 

relatively large regional bank, Applicant has the 

resources to enter the Bedford County market 

de novo or by a less anticompetitive acquisition 

of one of the smaller banks. However, there are 

numerous potential entrants into the market 

from among the banks located in counties surrounding Bedford County, under Pennsylvania's 

contiguous county branching laws.

We have reviewed this proposed transaction 

and conclude that it would not have a substantially adverse effect on competition.

Basis for Corporation approval,

March 14, 1978

Johnstown Bank and Trust Company, 

Johnstown, Pennsylvania (“ Johnstown Bank''), 

an insured State nonmember bank with total 

resources of $149,748,000 and total IPC 

deposits of $127,228,000, has applied, 

pursuant to Section 18(c) and other provisions 

of the Federal Deposit Insurance Act, for the 

FDIC's prior consent to merge with The First 

N a tio n a l Bank in B e d fo rd , B e d fo rd , 

Pennsylvania ("Bedford Bank''), with total 

resources of $30,19 1,00 0 and total IPC 

deposits of $25,840,000, under the charter 

and title of Johnstown Bank. Incident to the 

merger, the 4 existing offices of Bedford Bank 

would become branches of the resultant bank, 

increasing the number of its authorized offices 

to 21.

Competition. Johnstown Bank operates 16 

offices: its main office and 7 branches in 

Cambria County, 6 branches in Somerset 

County, and 2 branches in Westmoreland 

County. It has received approval to establish an 

additional branch in Cambria County. Bedford 

Bank operates four offices in Bedford County: 

its main office and one branch in Bedford, one 

branch in Schellsburg, and one branch in Manns 

Choice.

Bedford County (1970 population 42,353, 

down from 42,451 in 1960) is situated 

immediately southeast of Cambria County. 

Approximately two-thirds of Bedford County is 

forest land while the remainder is devoted primarily to agricultural pursuits. Light manufactu rin g , re ta il esta b lish m e n ts, service 

enterprises, and tourism provide some diversification for the county's economy. Bedford 

County's 1976 median household buying level 

was $11,399, some 21 percent below the 

comparable State figure.

The effects of the proposed merger would 

be confined primarily to the central portion of 

Bedford County within a radius of approximately 1 2 road-miles of the town of Bedford. Bedford Bank is one of five commercial banks

operating a total of nine offices in this portion 

of the county and holds the largest share, 32.5 

percent, of IPC deposits as of June 30, 1977. 

The First National Bank of Everett, located 10 

miles east of Bedford, and The Hartley National 

Bank of Bedford each hold 24.4 percent, which 

is the next largest share of IPC deposits. Johnstown Bank is not represented in Bedford County 

and would merely succeed to Bedford Bank's 

share of the deposits. Thus, the structure of 

commercial banking in the local market would 

not be affected by the proposed merger.

There is no significant existing competition 

between the two proponents. Travel between 

Johnstown and Bedford is impeded by the 

mountainous terrain. Major highways in the area 

run north to south, and except for the Pennsylvania Turnpike, east-west travel is quite 

limited. Residents of the two areas are not likely 

to cross commute for shopping or employment. 

The closest offices of the proponents are 35 

miles apart, and neither bank draws a significant measure of business from the other's primary trade area.

Pennsylvania law limits commercial bank 

expansion by either merger or de novo branching to the county in which the main office is 

located and to contiguous counties. Johnstown 

Bank has a maximum legal branching area consisting of Bedford, Blair, Cambria, Clearfield, 

Indiana, Somerset, and Westmoreland Counties. Thus, each proponent could legally branch 

de novo into areas presently served by the 

other. Bedford County, however, recorded a 

slight population decline between 1960 and 

1970, and its income level is substantially 

below that of the State as a whole, which 

makes de novo expansion into Bedford County 

unattractive for Johnstown Bank. Bedford Bank 

is not likely to attempt further de novo expansion due to its relatively limited financial and 

managerial resources. Therefore, the proposed 

merger would not eliminate any significant 

potential competition between the proponents.

As of June 30, 1976, within its maximum 

legal branching area, Johnstown Bank had the 

sixth largest share of the total deposits of $2.8 

billion with 4.4 percent of such deposits. The 

proposed merger would add only 0.9 percent to 

that share. The proposed merger would not 

eliminate any significant existing or potential 

competition between Johnstown Bank and 

Bedford Bank, nor would it materially affect the 

structure of commercial banking in any relevant 

area.

Based on the preceding, the Board of Directors is of the opinion that the proposed merger 

would not, in any section of the country, substantially lessen competition, tend to create a 

monopoly, or in any other manner be in restraint 

Digitized 

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Financial and Managerial Resources; Future

Prospects. Both banks have satisfactory financial and managerial resources and the resultant 

bank would have favorable future prospects.

Convenience and Needs of the Community

to be Served. As a result of the proposed 

merger, Bedford Bank's customers will enjoy 

higher savings deposit interest rates, higher 

certificate of deposit rates, easier access to 

trust services, and a substantially increased 

legal lending limit.

Based on the foregoing, the Board of Directors has concluded that approval of the application is warranted.

Resources 

(in thousands 

of dollars)

Banking offices 

in operation

Before After

Banco de SantanderPuerto Rico

San Juan, Puerto 

Rico

51,664 1 15

to purchase a portion of the

assets and assume a portion

of the deposit liabilities of

Banco Credito y

Ahorro Ponceno

Ponce

196,852* 14

'Deposits of 14 offices of Banco Credito y Ahorro Ponceno 

to be acquired by Banco de Santander — Puerto Rico.

Approved under emergency provisions. No 

report requested from the Attorney General.

Basis for Corporation approval,

March 31, 1978

Banco de Santander— Puerto Rico, San Juan, 

Puerto Rico, an insured Commonwealth-chartered nonmember bank with total resources of 

$51,664,000, has applied, pursuant to Section 

18(c) and other provisions of the Federal 

Deposit Insurance Act, for the Corporation's 

consent to purchase a portion of the assets of 

and assume a portion of the liability to pay 

deposits made in Banco Credito y Ahorro 

Ponceno, Ponce, Puerto Rico, an insured 

Commonwealth-chartered nonmember bank. 

As an incident to the transaction, 14 offices of 

Banco Credito y Ahorro Ponceno with deposits 

of $196,852,000 would become branches of 

Banco de Santander-Puerto Rico.

As of March 31, 1978, Banco Credito y 

Ahorro Ponceno had deposits and other 

liabilities of some $640 million and operated 50 

offices. On that date Puerto Rico Secretary of 

the Treasury Julio Cesar Perez closed the bank,

and the FDIC was named Receiver. This 

purchase and assumption transaction is a 

companion to another transaction by which 

Banco Popular de Puerto Rico, San Juan, Puerto 

Rico, acquired the other 36 offices of Banco 

Credito y Ahorro Ponceno. The majority of the 

offices acquired by Banco Santander-Puerto 

Rico were in close proximity to existing 

branches of Banco Popular de Puerto Rico.

The Board of Directors finds that the failure 

of Banco Credito y Ahorro Ponceno requires it 

to act immediately and thus waives publication 

of notice, dispenses with the solicitation of 

competitive reports from other agencies, and 

authorizes the transaction to be consummated 

immediately.

Resources 

(in thousands 

of dollars)

Banking offices 

in operation

Before After

Banco Popular de 1,250,233 82 118

Puerto Rico

San Juan,

Puerto Rico

to purchase a portion of

the assets and assume a

portion of the deposit

liabilities of

Banco Credito y 401,346* 36

Ahorro Ponceno

Ponce

'Deposits of 36 offices of Banco Credito y Ahorro Ponceno 

to be acquired by Banco Popular de Puerto Rico.

Approved under emergency provisions. No 

report requested from the Attorney General.

Basis for Corporation approval,

March 31, 1978

Banco Popular de Puerto Rico, San Juan, 

Puerto Rico, an insured Commonwealth-chartered nonmember bank with total resources of 

$1,250,233,000, has applied, pursuant to 

Section 18(c) and other provisions of the 

Federal Deposit Insurance A ct, fo r the 

Corporation's consent to purchase a portion of 

the assets and assume a portion of the liability 

to pay deposits made in Banco Credito y Ahorro 

Ponceno, Ponce, Puerto Rico, an insured 

Commonwealth-chartered nonmember bank. 

As an incident to the transaction, 36 offices of 

Banco Credito y Ahorro Ponceno with deposits 

of $401,346,000 would become branches of 

Banco Popular de Puerto Rico.

As of March 31, 1978, Banco Credito y 

Ahorro Ponceno had deposits and other 

liabilities of some $640 million and operated 50

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BANK ABSORPTIONS APPROVED BY THE CORPORATION 63

offices. On that date Puerto Rico Secretary of 

the Treasury Julio Cesar Perez closed the bank, 

and the FDIC was named Receiver. This 

purchase and assumption transaction is a 

companion to another transaction by which 

Banco de Santander-Puerto Rico, San Juan, 

Puerto Rico, acquired the other 14 offices of 

Banco Credito y Ahorro Ponceno, most of 

which were in close proximity to offices of 

Banco Popular de Puerto Rico.

The Board of Directors finds that the failure 

of Banco Credito y Ahorro Ponceno requires it 

to act immediately and thus waives publication 

of notice, dispenses with the solicitation of 

competitive reports from other agencies, and 

authorizes the transaction to be consummated 

immediately.

Resources 

(in thousands 

of dollars)

Banking offices 

in operation

Before After

Floyd County Bank

New Albany, Indiana

40,099 3 7

to purchase the assets

and assume the deposit

liabilities of

American Bank

New Albany

19,266 4

Summary report by Attorney General, 

March 14, 1978

The main offices of Applicant and Bank are 

approximately 1 mile apart in New Albany, plus 

Applicant operates two branch offices and 

Bank operates one branch in New Albany. It is 

therefore obvious that Applicant and Bank are 

direct competitors and that the proposed 

acquisition would eliminate existing competition 

to a significant degree.

Selection of an appropriate geographic 

market within which to assess the effect of the 

proposed merger on concentration in commercial banking is very difficult because of the 

proximity to New Albany of the commercial 

area of Clark County and of the city of Louisville, Kentucky. Neither the application nor other 

data presently available to the department contains information sufficient to permit a precise 

calculation of a relevant geographic market. We 

note, however, that of the eight commercial 

banks presently operating in Floyd and Clark 

Counties, Indiana, Applicant, as of June 30,

1977, was the fifth largest and Bank was the 

eighth largest with 11.3 percent and 5.5 percent respectively, of the total deposits held by 

the commercial banks in those two counties. If 

the merger were consummated, the resulting

bank would become the third largest bank with 

16.9 percent of the total commercial bank 

deposits in the two-county area, and the fourfirm concentration ratio in that area would 

increase from 69.2 percent to 73.6 percent.

Basis for Corporation approval,

April 7, 1978

Floyd County Bank, New Albany, Indiana 

("Applicant"), an insured State nonmember 

bank with total resources of $40,099,000 and 

total IPC deposits of $34,005,000, has applied, 

pursuant to Section 18(c) and other provisions 

of the Federal Deposit Insurance Act, for the 

Corporation's prior consent to purchase the 

assets of and assume the liability to pay 

deposits made in American Bank, New Albany, 

Indiana, an insured State nonmember bank with 

total resources of $19,266,000 and total IPC 

deposits of $15,772,000. The four offices of 

American Bank would be operated as branches 

of Applicant, increasing the number of its 

offices to seven. In order to effectuate the 

transaction, the resultant bank will issue

30,000 shares of common stock and place 

$1,400,000 in subordinated capital notes to 

augment its capital structure.

Competition. Floyd County, the State's 

second smallest county in land area is located in 

southern Indiana and is part of the five-county 

Lo u isville , K e n tu cky-ln d ia n a S tandard 

Metropolitan Statistical Area. With only a 

limited amount of industry and manufacturing 

activity, the county's economy is largely dependent upon and closely tied to that of Louisville 

and Jefferson County, Kentucky, where an estimated one-half of its work force commutes for 

employment.

Shopping patterns also point to a close 

economic tie between Floyd County and the 

neighboring, more populous Clark County, 

where recent development activity has centered. Floyd County's median household buying 

level of $13,162 (1976) was substantially 

lower than that of the Louisville metropolitan 

area and that of Jefferson County, Kentucky.

The proponents' main offices are approximately 1 mile distant from each other along 

Spring Street in New Albany, which is a major 

east-west artery connecting the city with the 

urbanized area of adjoining Clark County. The 

main office and drive-in branch of American 

Bank are located in the downtown section of 

New Albany while Applicant's main office is 

situated at the junction of a major north-south 

highway providing access to the city of Louisville on the south. Other offices of the proponents serve the western and northern portions 

of developed areas of the county and are not 

regarded to be in direct competition with each

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Federal Reserve Bank of St. Louis
64 FEDERAL DEPOSIT INSURANCE CORPORATION

other. Of the four commercial banks headquartered in Floyd County, the proponents rank as 

the two smallest in share of deposits held. The 

resultant bank would hold 34.2 percent of the 

county's commercial bank deposits and would 

rank as the second largest of three banks in the 

county by such a measure.

Intense competition exists in Floyd County 

emanating from banks headquartered in 

neighboring Jefferson County, Kentucky, which 

due to their relative size and central location 

exert a significant competitive influence 

throughout the entire Louisville metropolitan 

area. In light of the established commutation 

patterns, existence of common communication 

media, and strong economic ties, the threecounty area of Floyd and Clark Counties, 

Indiana and Jefferson County, Kentucky is 

regarded as the relevant geographic market for 

purposes of determining the competitive 

effects of the proposed transaction.

The three largest Louisville-based commercial banks together hold 70.5 percent of the 

area's commercial bank deposits. In comparison, A pplicant and Am erican Bank 

aggregately hold only 1.6 percent of the 

market's commercial bank deposits and rank as 

the 11 th and 1 5th largest banks, respectively. 

Considering the modest relative size and market 

share of the proponents, the proposed transaction is seen as having little competitive impact 

on the structure of commercial banking in the 

market. Likewise, although a potential exists for 

increased competition between the proponents 

through future de novo branching activity, 

because of the dominance of the Jefferson 

County-based banking organizations, elimination of such future competition is regarded as 

having only a limited competitive significance.

Under the circumstances, the Board of Directors is of the opinion that the proposal would 

not, in any section of the country, substantially 

lessen competition, tend to create a monopoly, 

or in any other manner be in restraint of trade.

Financial and Managerial Resources; Future

Prospects. The considerations relating to financial and managerial resources have been 

satisfactorily resolved. The resultant bank, with 

the proposed additions to its capital structure, is 

anticipated to have favorable future prospects.

Convenience and Needs of the Community

to be Served. The proposed transaction would 

result in no substantial change in the services 

now available to customers of either bank. Considerations of convenience and needs of the 

community are consistent with approval of the 

application.

Based on the foregoing, the Board of Directors has concluded that approval of the application is warranted.

Resources 

(in thousands 

of dollars)

Banking offices 

in operation

Before After

The Town & Country

Bank

Raritan Township 

(P.O. Flemington), 

New Jersey

36,612 3 5

to purchase the assets and assume the deposit liabilities of

Phillipsburg and

Pohatcong

Branches —

New Jersey Bank

(National Association) 

Clifton

18,435* 2

'Total IPC deposits of two offices to be transferred by New 

Jersey Bank (National Association). Assets not reported 

by office.

Summary report by Attorney General, 

January 30, 1978

We have reviewed this proposed transaction 

and conclude that it would not have a substantial competitive impact.

Basis for Corporation approval,

May 5, 1978

The Town & Country Bank, Raritan Township (P.O. Flemington), New Jersey ("Town 

Bank” ), an insured State nonmember bank with 

total resources of $36,612,000 and total IPC 

deposits of $ 2 7 ,4 1 0 ,0 0 0 , has applied, 

pursuant to Section 18(c) and other provisions 

of the Federal Deposit Insurance Act, for the 

Corporation's prior consent to purchase the 

assets of and assume the liability to pay 

deposits made in two branches of New Jersey 

Bank (National Association), Clifton, New 

Jersey ("National Bank''), with total resources 

of $834,511,000 and total IPC deposits of 

$ 6 8 4 ,2 7 2 ,0 0 0 . The P h illip sb u rg and 

Pohetcong branches of National Bank, with 

total IPC deposits of $18,435,000, would be 

established as branches of Town Bank.

Competition. The proposed transaction 

involves National Bank's only two branches in 

W a rre n C o u n ty , w h ic h are lo c a te d 

approximately 72 miles west of its main office. 

Warren County (1970 population 73,879) is 

located in the western portion of the State 

adjoining the Delaware River boundary with 

Pennsylvania. Both branches to be acquired are 

located along major traffic arteries, north of and 

southeast of the dow ntow n section of 

Phillipsburg. These branches, w hich are 

approximately 15 road-miles distant from the 

nearest branch of Town Bank, are regarded as

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BANK ABSORPTIONS APPROVED BY THE CORPORATION 65

competing in a market area which includes the 

town of Phillipsburg, the borough of Alpha, and 

the townships of Pohatcong, Lopatcong, and 

Greenwich in New Jersey and the city of 

Easton, Pennsylvania. The market, which had a 

1970 population of approximately 60,000, has 

a diversified economy encompassing industrial, 

agricultural, and commercial activity.

Ten commercial banks operate a total of 20 

offices in this market area, with the 3 largest 

institutions holding a 77.6-percent market 

share of IPC deposits. National Bank presently 

holds 7.1 percent of such deposits and ranks as 

the market's fifth largest competitor. Town 

Bank does not compete in this market and thus, 

the proposed transaction is regarded as having 

no effect on existing competition or on the local 

market structure.

State statutes permit de novo branching 

activity throughout New Jersey, subject to 

certain home office protection provisions 

Town Bank, as an aggressive, rapidly growing 

Hunterdon County institution can be regarded 

as a potential competitor in adjoining Warren 

County markets.

National Bank has embarked upon a 

retrenchment program with its management 

desirous of concentrating their efforts in 

markets in the northeastern portion of the State 

where they are more heavily represented. The 

potential for increased future competition by 

National Bank in this market is not regarded as 

significant.

In view of the foregoing, the Board of 

Directors is of the opinion that the proposed 

merger would not, in any section of the country, 

substantially lessen competition, tend to create 

a monopoly, or in any other manner be in 

restraint of trade.

Financial and Managerial Resources; Future

Prospects. The considerations relating to 

financial and managerial resources have been 

satisfactorily resolved. The resultant bank, with 

the contemplated addition to its capital 

structure, is anticipated to have favorable future 

prospects.

Convenience and Needs of the Community

to be Served. The proposed transaction would 

result in no substantial change in the services 

now available in the market. Considerations of 

convenience and needs of the community are 

consistent with approval of the application.

Based on the foregoing, the Board of 

Directors has concluded that approval of the 

application is warranted.

Resources 

(in thousands 

of dollars)

Banking offices 

in operation

Before After

The Commercial 

Savings Bank

Upper Sandusky, Ohio

39,324 2 3

to acquire the assets and

assume the deposit liabilities

of

The Harpster Bank

Harpster

7,978 1

Summary report by Attorney General, 

January 13, 1 978

Ohio law, presently prohibiting branches 

across State lines, permits statewide operation 

of multibank holding companies. Hence, an outof-county bank could acquire Bank as a means 

of entering the Wyandot County market. The 

proposed acquisition eliminates Bank as an 

entry vehicle.

Given the relatively small size of the banks 

and the rural nature of the area, it appears that 

the relevant geographic market is— at most— 

Wyandot County. Applicant, on the other hand, 

states that the relevant market includes adjacent Marion County. While we recognize that 

some residents may go to Marion County to 

satisfy their banking needs, a situation common 

to most rural banking markets, it nevertheless 

appears that the preponderance of Wyandot 

County residents bank within the county. None 

of the Marion County banks are so large that 

they could offer substantially different services 

than Applicant.

Applicant and Bank are direct competitors. 

Bank is 7 miles from Applicant's main office in 

Upper Sandusky and 1 7 miles from its branch 

in Carey. There are no intervening banks between Applicant's main office and Bank. Two 

other banks also have offices in Upper Sandusky. The county's other banks are in Carey, 

Sycamore, and Wharton. Those towns are each

10 miles on the "fa r” side of Upper Sandusky 

from Harpster. The nearest banks to Bank outside the county are the three previously mentioned Marion County banks, 15 miles from 

Bank. Thus the three banks in Upper Sandusky, 

including Applicant, are Bank's only meaningful 

competitors. Applicant admits that it has 

attracted 350 customers from Bank in recent 

years.

Six banks operate in Wyandot County. Applicant is the second largest in terms of total 

deposits, with a 28 percent market share. It is 

the largest in terms of net loans with a 33 percent market share. Bank is the second smallest 

with 6 percent of deposits and 7 percent of net

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Federal Reserve Bank of St. Louis
66 FEDERAL DEPOSIT INSURANCE CORPORATION

loans. If the proposed acquisition is consummated Applicant will increase its share of the 

market by 6 percent to 34 percent, although its 

rank as second largest in terms of deposits and 

largest in terms of net loans will remain constant.

In sum, the proposed acquisition would eliminate existing direct competition, increase concentration, and diminish potential competition— in short, it would adversely affect competition. It clearly would be more consistent 

with the public interest for an out-of-county 

bank, via the holding company vehicle, to 

acquire bank as a means of entering the market 

de novo than for the second largest bank and a 

direct competitor to acquire Bank.

Basis for Corporation approval,

May 5, 1978

The Commercial Savings Bank, Upper 

Sandusky, Ohio ("A pplicant"), a State nonmember insured bank with total resources of 

$3 9,32 4,00 0 and total IPC deposits of 

$ 3 3 ,4 4 7 ,0 0 0 , has applied, pursuant to 

Section 18(c) and other provisions of the 

Federal Deposit Insurance A ct, fo r the 

Corporation's prior consent to acquire the 

assets of and assume liability to pay deposits 

made in The Harpster Bank, Harpster, Ohio 

("O ther Bank"), with total resources of 

$ 7 ,9 7 8 ,0 0 0 and total IPC deposits of 

$6,983,000. Incident to the transaction, the 

sole o ffic e o f O ther Bank w o uld be 

established as a branch of Applicant.

Competition. Applicant operates its main 

office in Upper Sandusky, in central Wyandot 

County, and one branch in Carey, in northwest 

Wyandot County. Other Bank operates its sole 

office in Harpster, in south-central Wyandot 

County. Wyandot County is located in the 

northwest portion of Ohio. The area is primarily 

agriculturally oriented with some small industry 

in the Upper Sandusky area. The population of 

the county was 21,826 in 1970, an increase of 

178 persons over 1960. Upper Sandusky's 

population in 1970 was 5 ,6 45, while 

Harpster's population in 1970 was 291. The 

1976 median household buying level in Wyandot County was $12,071, considerably less 

than the State level of $14,648.

The primary trade area of Applicant is the 

whole of Wyandot County. Applicant has the 

second largest share, 29.7 percent, of IPC 

deposits aggregating $11 million held by 11 

offices of 6 commercial banks located in the 

county.

Other Bank's trade area is the southern onehalf of Wyandot County, including the town of 

Upper Sandusky, and the upper portion of 

adjoining Marion County, including the town of 

Marion. The market had a population estimated

at 45,072 in 1970, having registered an 

increase of some 2,184 persons since 1960. 

Other Bank has the second smallest share, 3.2 

percent, of IPC deposits aggregating $21 5 million held by 1 7 offices of 7 commercial banks 

located in the area.

Upper Sandusky and Harpster are only 7 

road-miles apart with no other banking offices 

intervening. Therefore, it is evident that some 

degree of overlapping of trade areas exists.

Although the proposed transaction would 

eliminate some competition between the two 

proponents, customers in Other Bank's trade 

area would still have a number of choices for 

commercial banking services. The resulting 

bank would still have only the fourth largest 

share, 16.5 percent, of the IPC deposits held by

17 offices of the 6 commercial banks remaining 

in the area.

Although both banks may legally establish de

novo branches in Wyandot County, it does not 

appear likely that Applicant will establish a 

branch in the Harpster area due to the limited 

deposit potential there. It also does not appear 

likely that Other Bank would establish a branch 

in Upper Sandusky considering the fact that 

Other Bank has been in business for approximately 95 years and is still operating as a unit 

bank. In addition, the elimination of Other Bank 

as an independent institution is not regarded as 

significant since the bank is not considered a 

viable competitor and its future growth potential is considered weak under present economic 

conditions.

Although the Board of Directors recognizes 

that consummation of the proposal would have 

some serious anticompetitive effects, Other 

Bank's weakened condition prevents it from 

providing effective competitive banking services.

In view of the foregoing, the Board of Directors is of the opinion that the proposed merger 

would not, in any section of the country, substantially lessen competition, tend to create a 

monopoly, or in any other manner be in restraint 

of trade.

Financial and Managerial Resources; Future

Prospects. The financial and managerial 

resources of Applicant are considered satisfactory. Other Bank has experienced sizable 

operating losses during the past few years and 

its financial resources are considered marginal. 

With the contemplated addition to capital, the 

future prospects of the resulting bank are 

favorable.

Convenience and Needs of the Community

to be Served. The proposed transaction would 

assure more competitive banking services in the 

local market of Other Bank.

Based on the foregoing information, the 

Board of Directors has concluded that approval 

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Resources 

(in thousands 

of dollars)

Banking offices 

in operation

Before After

Lincoln Bank

Lincoln City, Oregon

41,045 7 8

to merge with

Yamhill County Bank

McMinnville

2,992 1

Summary report by Attorney General, 

February 24, 1978

We have reviewed this proposed transaction 

and conclude that it would not have a substantial competitive impact.

Basis for Corporation approval,

May 19, 1978

Lincoln Bank, Lincoln City, Oregon, an 

insured State nonmember bank with total 

resources of $4 1,04 5,00 0 and total IPC 

deposits of $32,040,000,has applied, pursuant 

to Section 18(c) and other provisions of the 

Federal Deposit Insurance Act, for the FDIC's 

consent to merge, under its charter and title, 

with Yamhill County Bank, McMinnville, Oregon 

(“ County Bank"), a State member bank with 

total resources of $2,992,000 and total IPC 

deposits of $2,469,000. The sole office of 

County Bank would be established as a branch 

of Lincoln Bank increasing the total number of 

its offices to eight.

Competition. Lincoln Bank operates seven 

offices in three counties on the coast of 

Oregon, with its head office located in Lincoln 

City. County Bank operates as a unit bank in 

McMinnville, approximately 45 road-miles 

northeast of Lincoln City.

The proposed merger would have its most 

direct and immediate impact in Yamhill County. 

Yamhill County, with a 1970 population of 

40,213, is located on the eastern side of the 

Coast Range of mountains in Oregon's most 

heavily developed corridor running between 

Portland and Eugene. The county is considered 

to have a primarily agricultural economy. 

McMinnville, with a 1970 population of 

10,125, is the largest city and serves as the 

county seat. The city has experienced rapid 

growth in recent years and has a favorable 

economic outlook.

Six commercial banks operate a total of 12 

offices in Yamhill County. Dominating the area 

is a Portland-based bank with five offices and

51.5 percent of the market's IPC deposits. 

County Bank is the smallest institution in the 

market holding only a 2.1 -percent market share 

of the IPC deposits. Lincoln Bank operates one 

branch in Willamina (located approximately 21

road-miles southwest of McMinnville) which 

holds 5.4 percent of the county's IPC deposits. 

The resultant bank's 7.5-percent market share 

of the IPC deposits would have no significant 

effect on competition or on the structure of the 

local market.

State statutes preclude branching into communities of less than 50,000 population that 

already have banking offices. Lincoln Bank, 

therefore, is precluded from engaging in any de

novo expansion into McMinnville. County 

Bank's modest size and limited resources preclude any expansion activity at this time. The 

potential for increased future competition between these two institutions is not regarded as 

significant.

Financial and Managerial Resources; Future

Prospects. Lincoln Bank has satisfactory financial and managerial resources. The resultant 

bank is anticipated to have favorable future 

prospects.

Convenience and Needs of the Community

to be Served. Comparisons of loan rate 

schedules indicate that Lincoln Bank's rates are 

generally lower than the prevailing rates in 

effect at County Bank. This, along with an 

increased lending limit, should be favorably 

received by customers in Yamhill County.

Based on the foregoing, the Board of Directors has concluded that approval of the application is warranted.

Resources 

(in thousands 

of dollars)

Banking offices 

in operation

Before After

Commercial Security

Bank

Ogden, Utah

353,852 19 22

to purchase the assets and

assume the deposit liabilities

of

The Helper State Bank

Helper

15,969 3

Summary report by Attorney General,

May 11, 1978

We have reviewed this proposed transaction 

and conclude that it would not have a substantial competitive impact.

Basis for Corporation approval,

May 24, 1978

Commercial Security Bank, Ogden, Utah 

("Commercial Bank"), an insured State nonmember bank with total resources of $353,852,000 

and total IPC deposits of $253,833,000, has

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68 FEDERAL DEPOSIT INSURANCE CORPORATION

applied, pursuant to Section 18(c) and other provisions of the Federal Deposit Insurance Act, for the 

FDIC's consent to purchase the assets of and 

assume the liability to pay deposits made in The 

Helper State Bank, Helper, Utah ("State Bank” ), an 

insured State nonmember bank with total 

resources of $15,969,000 and total IPC deposits 

of $13,666,000.* Incident to the transaction, the 

3 offices of State Bank would be established as 

branches of Commercial Bank, increasing the number of its offices to 22.

Competition. Commercial Bank's operations 

are primarily confined to the central portion of 

the State in an area known as the "Wasatch 

Front.” This highly developed strip running 

north-south is bordered on the west by mountains, desert, and the Great Salt Lake, and on 

the east by rugged mountainous terrain. The 

Wasatch Front, while representing less than 5 

percent of the State's land area, holds more 

than 75 percent of its population in an 

urbanized area that includes most of Utah's 

major cities.

State Bank operates in Carbon and Emery 

Counties located on a plateau east of these 

mountains. This area's 1970 population was 

20,784 and it had a 1976 median household 

buying level substantially below the State's 

figure. Population declines are in evidence for 

the period 1960 to 1970; however, the future 

economic prospects appear favorable due to 

vast deposits of coal found in the area. The city 

of Price (1970 population 6,218) serves as the 

seat of Carbon County and is a principal commercial center.

The proposed transaction would have its 

most direct and immediate effect in Carbon and 

Emery Counties, which contain 5 commercial 

banks operating 12 offices. State Bank, Utah's 

24th largest bank, holds 1 5.4 percent of this 

market's commercial bank deposits thereby 

ranking as the market's 3rd largest bank. The 

State's three largest commercial banks are represented in this market and aggregately hold

82.8 percent of the deposits. Since Commercial 

Bank, the State's fourth largest bank, is not represented, the proponents operate in separate, 

distinct markets and are not in direct competition. Therefore, consummation of the proposed 

transaction would have no significant effect on 

existing competition.

Utah statutes permit statewide branching, 

except in cities or towns where banks already 

do business. Although Commercial Bank is

'Data concerning Commercial Security Bank, Ogden, Utah 

have been adjusted to reflect the merger of that bank with 

Commercial Security Bank of Salt Lake, Salt Lake County 

(P.O. Salt Lake City), Utah, effected February 28, 1978.

presently prohibited from branching into the 

community of Helper, it could establish de novo

offices at other sites in State Bank's trade area. 

However, in light of the number of existing 

banking offices in this large, but relatively 

sparsely populated area, the elimination of 

some potential for future competition between 

the proponents is not regarded as significant. 

State Bank's modest size and limited financial 

and managerial resources appear to preclude 

any meaningful de novo expansion into areas 

now served by Commercial Bank.

Based on the foregoing, the Board of Directors is of the opinion that the proposed transaction would not, in any section of the country, 

substantially lessen competition, tend to create 

a monopoly, or in any other manner be in 

restraint of trade.

Financial and Managerial Resources; Future

Prospects. Both banks have acceptable financial 

and managerial resources and the proposed 

transaction should have no adverse effect on 

these resources. The future prospects of the resultant bank appear favorable.

Convenience and Needs of the Community

to be Served. Consummation of the proposed 

transaction will provide residents with a number 

of commercial banking services not presently 

available at State Bank, including trust services, 

credit card plans, mortgage banking, and a substantially increased lending limit.

Based on the foregoing, the Board of Directors has concluded that approval of the application is warranted.

Resources 

(in thousands 

of dollars)

Banking offices 

in operation

Before After

Commercial Bank &

Trust Company

Miami, Florida

95,223 3 4

to purchase assets and assume deposit liabilities of

North Miami BranchCity National Bank

of Miami

Miami

12,513* 1

‘ Total deposits of office to be transferred by City National 

Bank of Miami. Assets not reported by office.

Summary report by Attorney General, 

April 11, 1978

We have reviewed this proposed transaction 

and conclude that it would not have a substantial competitive impact.

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Basis for Corporation approval,

June 26, 1 978

Commercial Bank & Trust Company, Miami, 

Florida ("Commercial Bank” ), an insured State 

nonmember bank with total resources of 

$95,22 3,00 0 and total IPC deposits of 

$80,628,000, has applied, pursuant to Section 

18(c) and other provisions of the Federal 

Deposit Insurance Act, for the FDIC's prior consent to purchase the assets of and assume the 

liability to pay certain deposits made in the 

North Miami branch of City National Bank of 

Miami, Miami, Florida ("City Bank"), with total 

resources of $396,451,000 and total IPC 

deposits of $332,750,000. The North Miami 

branch, with aggregate deposits of approximately $12,513,000, would be operated as a 

branch of Commercial Bank.

Competition. The proposed transaction 

would have its most direct and immediate 

impact in Dade County. The economy of the 

area relies primarily upon recreation and tourism. The county's population as of year-end 

1976 was approximately 1.5 million.

Commercial Bank operates its three offices 

in the county. City Bank's North Miami branch is 

located approximately 5 miles north of Commercial Bank's nearest office. Given the proximity of the applicant's offices to the North 

Miami branch, approval of the proposed transaction would eliminate some direct competition between City Bank and Commercial Bank. 

However, within Dade County, 71 banks, representing 47 banking organizations, operate 161 

offices. Commercial Bank holds 1.3 percent of 

the county's IPC deposits, thereby ranking 18th 

largest in IPC deposits among commercial 

banks. The proposed transaction would transfer 

only 0.2 percent of the deposits to Commercial 

Bank, increasing its share of the deposits to 1.5 

percent. The deposits to be acquired appear 

even more inconsequential when the existing 

concentration level of commercial banking in 

the county is analyzed. The three largest banking organizations hold an aggregate share of 41 

percent. Overall, given Commercial Bank's small 

deposit percentage and the existing level of 

commercial banking concentration in Dade 

County, the proposed transaction would have 

no significant effects on existing competition.

Consummation of the proposed transaction 

would not affect future competition in the 

county. The proponents would continue to 

operate in the county and the deposits to be 

acquired by Commercial Bank' constitute such 

an insignificant share of the total deposit base 

that Commercial Bank would not derive any 

major competitive advantage over other banks 

in the area.

The Board of Directors is of the opinion that 

the proposed transaction would not, in any section of the country, substantially lessen competition, tend to create a monopoly, or in any 

other manner be in restraint of trade.

Financial and Managerial Resources; Future

Prospects. The considerations relating to financial and managerial resources have been 

satisfactorily resolved. The resultant bank is 

anticipated to have favorable future prospects.

Convenience and Needs of the Community

to he Served. The proposed transaction would 

serve to substitute Commercial Bank for City 

Bank at the North Miami branch site and would 

result in little change in the level of services 

offered the community. Considerations of convenience and needs of the community are consistent with approval of the transaction.

Based on the foregoing, the Board of Directors has concluded that approval of the application is warranted.

Resources 

(in thousands 

of dollars)

Banking offices 

in operation

Before After

Guarantee Bank

Atlantic City, New 

Jersey

252,102 16 18

to merge with

Swedesboro Trust

Company

Swedesboro

21,025 2

Summary report by Attorney General,

April 27, 1978

We have reviewed this proposed transaction 

and conclude that it would not have a substantial competitive impact.

Basis fo- Corporation approval,

June 26, 1978

Guarantee Bank, Atlantic City, New Jersey, 

an insured State nonmember bank with total 

resources of $252,102,000 and total IPC 

deposits of $200,412,000, has applied, under 

Section 18(c) and other provisions of the Federal 

Deposit Insurance Act, for the FDIC's prior consent to merge with Swedesboro Trust Company, Swedesboro, New Jersey, a State-chartered member bank with total resources of 

$ 2 1,02 5,00 0 and total IPC deposits of 

$18,176,000. The proposed merger would be 

effected under the charter and title of 

Guarantee Bank.

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70 FEDERAL DEPOSIT INSURANCE CORPORATION

Competition. Guarantee Bank operates 15 

branches in Atlantic, Cape May, and Cumberland Counties in southeast New Jersey. 

Swedesboro Trust Company operates its main 

office in Swedesboro and a branch in Woolwich 

Township located approximately 3 road-miles 

from its main office. Both offices are located in 

western Gloucester County in an area that has 

remained relatively rural and undeveloped. The 

borough of Swedesboro (1970 population of 

2,287) and surrounding area are experiencing 

some new commercial and residential construction and appear to have favorable future 

prospects.

The relevant market in which to assess the 

impact of the proposed merger is regarded as 

the area within an approximate 10-road-mile 

radius of Swedesboro, which includes portions 

of Gloucester and Salem Counties. Thirteen 

commercial banks operate a total of 28 offices 

in this market, with representatives of several of 

the State's larger banking organizations 

included.

Swedesboro Trust Company holds 9.9 percent of the market's IPC deposits and ranks as 

the fifth largest bank in the market by such a 

measure. Guarantee Bank is not represented in 

the market as its nearest office is located 

a p p r o x im a te ly 3 0 r o a d -m ile s fro m 

Swedesboro. The proponents, therefore, are 

not in direct competition and the transaction is 

viewed as having no significant effect on existing competition.

State statutes permit de novo branching 

throughout New Jersey, subject to certain 

home office protection provisions. Swedesboro 

Trust Company, which presently operates only 

one branch a short distance from its main 

office, does not possess the financial or 

managerial resources to mount any meaningful 

de novo expansion into areas relatively distant 

from Swedesboro. Guarantee Bank, while 

experienced in de novo activity and branch 

operation, has confined its operations to the 

southeast portion of the State. Although 

Guarantee Bank is capable of successfully 

branching into the Swedesboro market, it is not 

likely to do so in light of the number and size of 

other competitors already established in the 

area and the distance of that market from its 

present base of operation. Thus, the elimination 

of some potential for increased future competition between the proponents is regarded as 

having little competitive impact.

The Board of Directors is of the opinion that 

the proposed merger would not, in any section 

of the country, substantially lessen competition, 

tend to create a monopoly, or in any other manner be in restraint of trade.

Financial and Managerial Resources; Future

Prospects. The considerations relating to financial and managerial resources have been 

satisfactorily resolved. While capitalization of 

Guarantee Bank is considered to be below 

desired levels, the proposed merger will have a 

slightly positive effect due to the strong 

capitalization of Swedesboro Trust Company. 

The resultant bank would appear to have 

favorable future prospects.

Convenience and Needs of the Community

to be Served. The proposed transaction would 

result in no substantial change in the services 

now available in the Swedesboro market. The 

considerations of convenience and needs of the 

community, however, are consistent with 

approval of the application.

Based on the foregoing, the Board of Directors has concluded that approval of the application is warranted.

Resources 

(in thousands 

of dollars)

Banking offices 

in operation

Before After

Commercial Security

Bank

Ogden, Utah

353,852 19 20

to merge with

Commercial Security

Bank of Logan

Logan

7,694 1

Summary report by Attorney General,

April 11, 1978

The merging banks are both wholly owned 

subsidiaries of the same bank holding company. 

As such, their proposed merger is essentially a 

corporate reorganization and would have no 

effect on competition.

Basis for Corporation approval,

June 26, 1978

Commercial Security Bank, Ogden, Utah 

("Applicant” ), an insured State nonmember 

bank with total resources of $353,852,000 

and total IPC deposits of $253,833,000, has 

applied, pursuant to Section 18(c) and other 

provisions of the Federal Deposit Insurance Act, 

for the FDIC's prior consent to merge with 

Commercial Security Bank of Logan, Logan, 

Utah ("Other Bank"), an insured State nonmember bank w ith total resources of

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BANK ABSORPTIONS APPROVED BY THE CORPORATION 71

$ 7 ,6 9 4 ,0 0 0 and total IPC deposits of 

$6,247,000.* The banks would merge under 

the charter and title of Applicant, and the sole 

office of Other Bank would be established as a 

branch of the resultant bank, increasing the 

total number of its offices to 20.**

Competition. Essentially a corporate 

reorganization, the proposed transaction would 

provide a means by which Commercial Security 

Bancorporation, Ogden, Utah, a registered bank 

holding company, may consolidate its operations. The proponents have been under common control since 1973 when Other Bank was 

organized as a wholly owned subsidiary of the 

holding company. The proposal would not 

affect the structure of commercial banking or 

the concentration of banking resources within 

any relevant area, nor would it have any significant effect on existing or potential competition.

In view of the foregoing, the Board of Directors is of the opinion that the proposed merger 

would not, in any section of the country, substantially lessen competition, tend to create a 

monopoly, or in any other manner be in restraint 

of trade.

Financial and Managerial Resources; Future

Prospects. The proponents' financial and 

managerial resources are considered adequate 

for the purposes of this proposal. The resultant 

bank would appear to have favorable future 

prospects.

Convenience and Needs of the Community

to be Served. The services to be offered in the 

relevant market by the resultant bank would not 

differ materially from those presently available 

through either proponent.

On the basis of the foregoing information, 

the Board of Directors has concluded that 

approval of the application is warranted.

’ Financial data as of June 30, 1977. Data concerning Commercial Security Bank, Ogden, Utah, have been adjusted to 

reflect the merger of that institution with Commercial 

Security Bank of Salt Lake, Salt Lake County (P.O. Salt 

Lake City), Utah, effected February 18, 1978.

**On May 24, 1978, the Board of Directors of the Federal 

Deposit Insurance Corporation granted its approval to 

Applicant to purchase the assets of and assume the 

liability to pay deposits made in The Helper State Bank, 

Helper, Utah. The Helper State Bank operates three 

offices and, as of June 30, 1977, had total resources of 

$15,969,000 and total IPC deposits of $13,666,000.

Resources 

(in thousands 

of dollars)

Banking offices 

in operation

Before After

Albany Savings Bank

Albany, New York

829,643 12 13

to merge with

Oneida Federal Savings

and Loan Association

Oneida

26,544 1

Summary report by Attorney General,

May 2, 1978

We have reviewed this proposed transaction 

and conclude that it would not have a substantial competitive impact.

Basis for Corporation approval,

August 2, 1978

Albany Savings Bank, Albany, New York 

("Savings Bank"), an insured mutual savings 

bank with total resources of $829,643,000 

and total deposits of $771,298,000, has 

applied, pursuant to Section 18(c) and other 

provisions of the Federal Deposit Insurance Act, 

for the Corporation's prior consent to merge, 

under its charter and title, with Oneida Federal 

Savings and Loan Association, Oneida, New 

York ("Association"), a federally insured savings and loan association with total resources 

of $ 2 6 ,5 4 4 ,0 0 0 and total deposits of 

$24,334,000, upon the latter institution's conversion to a State charter. Incident to the 

merger, the sole office of Association would be 

established as a branch of the resultant bank.

Competition. Savings Bank operates 12 

offices in central and northern New York State 

and has received regulatory approval for an 

additional de novo branch. Branches in Glens 

Falls, Johnstown, and Troy have been acquired 

since 1970 through mergers with three Statechartered savings and loan associations. 

Association, established in 1887, operates its 

sole office in the city of Oneida, approximately 

120 road-miles west of Albany, New York. 

Oneida (1970 population 11,658) is situated in 

the eastern portion of Madison County adjoining the Oneida County boundary. A good highway system provides ready access to the 

neighboring city of Rome (1970 population 

50,148) which is regarded as the economic 

center for the area.

The relevant market in which to assess the 

competitive impact of the proposed merger is 

regarded as the area within an approximate 15- 

road-mile radius of the city of Oneida, which 

includes portions of Madison and Oneida Counties. Six thrift institutions operate a total of 10 

offices in the market with mutual savings banks

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Federal Reserve Bank of St. Louis
72 FEDERAL DEPOSIT INSURANCE CORPORATION

holding the dominant market share. Association 

ranks as the fourth largest thrift institution in 

the market, holding 7.4 percent of the market's 

in s titu tio n d e p o s its . S a v in g s Bank, 

whose nearest office is located north of the city 

of Syracuse, approximately 25 road-miles distant from Oneida, is not represented in the 

market and the proponents are thus not in 

direct competition. Consummation of the transaction will merely serve to substitute a large 

mutual savings bank for a relatively small, local 

savings and loan association and will have no 

significant adverse effect on existing competition.

The possibility that competition may develop 

between the proponents through de novo

branching appears remote. The modest size and 

conservative management of Association, 

which has operated as a unit institution since 

inception, would seem to preclude any 

meaningful expansion activity into areas now 

served by Savings Bank. Savings Bank, 

governed by State statutes limiting such de

novo expansion to a single branch each year, is 

viewied as an unlikely entrant into the Oneida 

market in the near future.

The Board of Directors is of the opinion that 

the proposed merger would not, in any section 

of the country, substantially lessen competition, 

tend to create a monopoly, or in any other manner be in restraint of trade.

Financial and Managerial Resourcesiy Future

Prospects. The financial and managerial 

resources of each institution, and of the resultant bank, are considered satisfactory. The 

future prospects of the resultant bank are 

regarded as favorable.

Convenience and Needs of the Community

to be Served. Savings Bank's entry into the 

Oneida market would make available an additional alternative for certain thrift institution services not now offered by Association. Considerations of convenience and needs of the 

community to be served are consistent with 

approval of the application.

Based on the foregoing, the Board of Directors has concluded that approval of the application is warranted.

Resources 

(in thousands 

of dollars)

Banking offices 

in operation

Before After

Brookville Bank and

Trust Company

Brookville, Pennsylvania 

(change title to 

Unibank)

46,206 3 4

to merge with

Brockway Citizens

Bank

Brockway

27,443 1

Summary report by Attorney General,

May 2, 1978

Jefferson County (1970 population 47,000) 

is located in the west-central portion of Pennsylvania. Its economy is based primarily on 

farming, coal mining, and lumbering and, 

according to the application, is expected to 

experience slow but steady growth.

Bank's sole office in Brockway is approximately 15 miles northeast of Brookville in 

which Applicant operates its main office and 

one branch. There are no bank offices in the 

intervening area (which is sparsely populated), 

although Deposit National Bank, DuBois, operates a branch in both Brookville and Brockway. 

It appears, therefore, that the proposed transaction would eliminate some direct competition 

between Applicant and Bank.

Nine banks currently operate offices in 

Jefferson County. As of June 30, 1977, Applicant held the second largest share (17.3 percent) and Bank held the fifth largest share (9.8 

percent) of the total deposits held in Jefferson 

County banking offices. If the proposed transaction is consummated, the resulting bank 

would be the largest bank in the county with a 

27.1-percent share of deposits held in county 

banking offices. Concentration among the four 

largest banks in the county (in terms of county 

deposits) would increase from 77.1 percent to

87.0 percent. We note, however, that the proposed transaction's effect on concentration 

would be less substantial if the banking offices 

in DuBois, in adjacent Clearfield County, were 

considered to be in the same market area as the 

Jefferson County banking offices.

Overall, in our view, the proposed transaction 

would have an adverse effect on competition.

Basis for Corporation approval,

August 2, 1978

Brookville Bank and Trust Company, Brookville, Pennsylvania ("Brookville Bank"), an 

insured State nonmember bank with total 

resources of $46,206,000 and total IPC

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BANK ABSORPTIONS APPROVED BY THE CORPORATION 73

deposits of $37,675,000, has applied, pursuant to Section 18(c) and other provisions of 

the Federal Deposit Insurance Act, for the Corporation's prior consent to merge with Brockway Citizens Bank, Brockway, Pennsylvania 

("Citizens Bank” ), with total resources of 

$27,44 3,00 0 and total IPC deposits of 

$22,240,000, under the charter of Brookville 

Bank and with the title "Unibank” . Incident to 

the merger, the one existing office of Citizens 

Bank would become a branch of the resultant 

bank, increasing the number of its offices to 

four.

Competition. Brookville Bank operates its 

main office in Brookville, one branch just outside Brookville, and one branch in Summerville. 

Citizens Bank operates its sole office in Brockway. All offices of both banks are located in 

Jefferson County, which is in the west-central 

portion of Pennsylvania.

Jefferson County's 1970 population was 

43,695, a decline from 46,792 in 1960. 

Approximately 70 percent of Jefferson County 

is forest lands and 16 percent is pasture and 

crop lands. Lumbering, agriculture, and light 

manufacturing are the main economic activities. 

The county's median buying level in 1976 was 

$11,266, some 22 percent below the State 

figure.

Essentially, the effects of this merger would 

be limited to Citizens Bank's local market area, 

encompassing the northeast section of Jefferson County, the southern part of Elk County, 

and the northwest portion of Clearfield County. 

Citizens Bank is one of six commercial banks 

operating in the local market area and holds

11.5 percent of the IPC deposits. Brookville 

Bank is not represented in this market and 

would merely succeed to Citizens Bank's share 

of the deposits. The structure of commercial 

banking in the local market would not be 

affected by the proposed merger.

The trade areas of the proponents are distinct, and travel between the two areas is 

impeded by mountainous terrain and a limited 

number of roads. The major highway in the 

area, Interstate Highway 80, runs east-west 

close to Brookville, but other highways are 

restricted by mountain ranges. The closest 

offices of the proponents are 18 miles distant, 

and neither bank draws a significant measure of 

business from the other's service area. No significant existing competition would be eliminated by the proposed merger.

Pennsylvania law limits commercial bank 

expansion by either merger or de novo branching to the county in which the main office is 

located and to contiguous counties. Thus, each 

proponent could branch de novo in Jefferson 

County and the surrounding counties of Forest, 

Clarion, Armstrong, Indiana, Clearfield, and Elk.

Neither Brookville Bank nor Citizens Bank are 

likely to attempt de novo expansion into distant 

markets where much larger banks are well 

established, and economic conditions and the 

low population per banking office in Jefferson 

County are not conducive to such expansion 

there. It, therefore, appears unlikely that any 

substantial potential for increased competition 

between the proponents through their de novo

branching in the future would be eliminated by 

the proposed merger.

Within its maximum legal branching area, 

Brookville Bank holds 2.7 percent of the total 

commercial bank deposits. The proposed 

merger would increase Brookville Bank's total 

deposit share to 4.2 percent. Thus, the commercial banking structure in the legal branching 

area would not be materially affected.

Based on the foregoing, the Board of Directors is of the opinion that the proposed merger 

would not, in any section of the country, substantially lessen competiton, tend to create a 

monopoly, or in any other manner be in restraint 

of trade.

Financial and Managerial Resources; Future

Prospects. The proponents have satisfactory 

financial and managerial resources for the business they conduct, as would the resultant bank. 

The future prospects for both existing banks 

and the resultant bank appear favorable.

Convenience and Needs of the Community

to be Served. The proposed merger would bring 

Citizens Bank's customers trust services and 

larger lending limits. Although there are other 

alternative sources for these services in the 

market, the considerations of convenience and 

needs are consistent with approval of the 

application.

Based on the foregoing, the Board of Directors has concluded that approval of the application is warranted.

Resources 

(in thousands 

of dollars)

Banking offices 

in operation

Before After

Farmers Bank and

Trust Company of

Hanover

Hanover, Pennsylvania

107,232 4 5

to merge with

Abbottstown State

Bank

Abbottstown

2,914 1

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Federal Reserve Bank of St. Louis
74 FEDERAL DEPOSIT INSURANCE CORPORATION

Summary report by Attorney General,

June 8, 1978

Each bank at present operates in different 

counties. Adams County, where Bank is 

located, had a 1970 population of 56,937. 

York County, where Applicant is located, had a 

1970 population of 272,603. At present 10 

banks operate a total of 24 offices in Adams 

County; 8 of these banks are headquartered in 

the county. Bank is the smallest of these institutions, with 1.1 percent of total deposits in the 

county. Fifteen banks operate a total of 82 

offices in York County; 10 banks are headquartered there. Applicant ranks fifth among the 

banks in York County with 7.5 percent of county deposits.

Although Applicant and Bank at present 

operate their offices in separate counties, the 

acquisition will have a direct impact on actual 

competition in the Abbottstown area. Hanover, 

where Applicant is located, is a commercial hub 

for the rural area surrounding it, including 

Abbottstown, and Applicant is one of the dominant banks in this area. Abbottstown and 

Hanover are only 7 miles apart; in fact, Applicant concedes that the primary service areas of 

the two banks overlap. Within Bank's service 

area, Applicant holds 88 percent of the total 

loans and 69 percent of the total deposits, Bank 

having 1.2 percent and 2.1 percent, respectively. The overlap of the two banks' service areas 

is of concern because Bank is the only commercial bank in Abbottstown, although other banks 

are located in the vicinity. A purchaser with a 

smaller presence in this area would obviously be 

preferable to Applicant.

Overall, in our view, the proposed transaction 

would have an adverse impact on competition.

Basis for Corporation approval,

August 2, 1978

Farmers Bank and Trust Company of 

Hanover, Hanover, Pennsylvania ("Farmers 

Bank” ), an insured State nonmember bank with 

total resources of $107,232,000 and total IPC 

deposits of $ 8 9 ,9 8 8 ,0 0 0 , has applied, 

pursuant to Section 18(c) and other provisions 

of the Federal Deposit Insurance Act, for the 

Corporation's prior consent to merge with 

A b b o ttsto w n State Bank, A b b ottsto w n , 

Pennsylvania ("S ta te B ank"), w ith total 

resources of $2 ,914 ,0 00 and total IPC 

deposits of $2,542,000. The banks would 

merge under the charter and title of Farmers 

Bank and the sole office of State Bank would be 

operated as a branch of the resultant bank, 

which would commence operation with a total 

of five offices.

Competition. Farmers Bank operates its head 

office and three branches in Hanover (1970

population 15,623) and its environs in the 

western portion of York County, in southcentral Pennsylvania. The borough of Abbottstown (1970 population 552) is located 7 roadmiles north of Hanover in the extreme eastern 

portion of adjoining Adams County. Hanover 

functions as the service and commercial center 

of the large, generally rural area encompassing 

the western portion of York County and the 

eastern portion of Adams County in Pennsylvania and a small adjoining portion of the 

State of Maryland. While agricultural pursuits 

remain the area's chief economic activity, 

steady growth in residential construction and 

industrial expansion has been in evidence. The 

median household buying levels for both Pennsylvania counties are above the comparable 

figure for the State. Future economic prospects 

appear favorable as the Hanover area is 

expected to continue to attract industrial 

development due to its skilled, stable work 

force and proximity to large urban markets.

The relevant market area in which to assess 

the competitive impact of the proposed transaction is regarded as the area within a 1 2 roadmile radius of the borough of Abbottstown, 

which would include the commercial center of 

Hanover and surrounding portions of Adams 

and York Counties. Ten commercial banks 

operate a total of 22 offices in the market with 

State Bank (the State's smallest commercial 

bank) holding only a nominal 0.9 percent of the 

market's IPC deposits.

State Bank is located only 7 road-miles north 

of the closest office of Farmers Bank. As the 

major portion of State Bank's service area is 

contained within the service area of Farmers 

Bank and the local shopping and commutation 

patterns indicate that Hanover is the likely and 

probable source of retail, commercial, and alternate banking services for residents of the area 

in which State Bank is located, clearly the proponents are in direct competition. Elimination of 

this existing competition, however, is not 

regarded as significant in light of the de minimis

volume of deposits generated by State Bank in 

its over 58 years of operation and its stagnant 

growth pattern in a market in which other competitors have been able to increase their deposit 

volume substantially in recent years.

Represented among the 10 banks already in 

the local market are several regional banks with 

substantial deposit bases and branching networks. Among these are National Central Bank, 

Lancaster; Dauphin Deposit Trust Company, 

Harrisburg; and Cumberland County National 

Bank and Trust Company, New Cumberland, 

which have organizational deposits ranging 

from approximately $225 million to $910 million. There appears to be a sufficient number of 

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BANK ABSORPTIONS APPROVED BY THE CORPORATION 75

ices to assure the continuance of a competitive 

banking environment in the market if the proposed merger is consummated. Farmers Bank's 

share of the market coupled with State Bank's 

minute volume of deposits, therefore, does not 

have an adverse effect upon competition. In 

addition, a total of six other commercial banks, 

e a c h w ith d e p o s its g r e a te r th a n 

$100,000,000, have the ability under State 

statutes to branch de novo into this local 

market. Although some potential for future 

competition between the proponents would be 

eliminated by the proposal, in light of the limited 

resources of State Bank and the number of 

other large competitors now serving or able to 

enter this market, the effect on the potential for 

future competition would be insignificant.

The Board of Directors is of the opinion that 

the proposed transaction would not, in any section of the country, substantially lessen competition, tend to create a monopoly, or in any 

other manner be in restraint of trade.

Financial and Managerial Resources; Future

Prospects. The financial resources of both proponents are considered satisfactory. Potential 

problems concerning aging management and 

management succession at State Bank would 

be resolved by the proposed merger. The resultant bank is anticipated to have favorable future 

prospects.

Convenience and Needs of the Community

to be Served. Farmers Bank offers a wider range 

of customer services, including a modest-sized 

trust department, and pays higher rates of 

interest on savings and time deposits than presently available at State Bank. Adoption of Farmers Bank's interest rate schedule and the 

availability of additional banking services should 

be of benefit to the present customers of State 

Bank. The considerations of convenience and 

needs of the community to be served are factors in favor of approval of the application.

Based on the foregoing, the Board of Directors has concluded that approval of the application is warranted.

Resources 

(in thousands 

of dollars)

Banking offices 

in operation

Before After

Suburban Trust

Company

Hyattsville, Maryland

1,057,686 65 67

to merge with

Free State Bank and

Trust Company

Potomac

14,484 2

Summary report by Attorney General,

July 14, 1978

We have reviewed this proposed transaction 

and conclude that it would not have a significant adverse effect upon competition.

Basis for Corporation approval,

August 11,1978

Suburban Trust Company, Hyattsville, 

Maryland (“ Suburban Trust” ), an insured 

State nonmember bank with total resources 

of $ 1 ,0 57 ,6 86 ,0 00 and total IPC deposits 

of $8 82 ,2 66 ,0 00 , has applied, pursuant to 

Section 18(c) and other provisions of the 

Federal Deposit Insurance Act, for the Corporation's prior consent to merge w ith Free 

State Bank and Trust Company, Potomac, 

Maryland ("FSB"), with total resources of 

$ 1 4,48 4,00 0 and total IPC deposits of 

$12,466,000. Suburban Trust is a wholly 

owned subsidiary of Suburban Bancorporation, a registered bank holding company 

which controls three Maryland banks. The 

proponents would merge under the charter 

and title of Suburban Trust and the two 

o ffice s o f FSB w ould be operated as 

branches of the resultant bank.

Competition. Suburban Trust, headquartered 

in Hyattsville, operates 65 offices in 5 counties 

and the city of Baltimore. Fifty-one of these 

offices, holding almost 90 percent of the 

bank's aggregate deposits, are located in the 

Maryland portion of the Washington, D.C. 

Standard Metropolitan Statistical Area, with a 

total of 24 offices serving Montgomery County. 

Required approvals have been obtained to establish an additional two offices in Montgomery 

County: one in Gaithersburg and another in 

Rockville. FSB commenced operation in 

Potomac in the southern portion of Montgomery County in August 1972. One de novo

branch, established in May 1977, is operated in 

Rockville, approximately 6.8 road-miles northeast of Potomac.

M ontgom ery County, Maryland (19 70 

population 552,809), adjoins the District of 

Columbia and has an economy that can be considered intricately tied to the city of Washington. A number of the county's residents are 

employed in the District of Columbia and there 

is substantial commutation daily between the 

two areas. This common economic tie is particularly in evidence in the southern portion of 

the county, which includes the communities of 

Potomac and Rockville. Median household buying levels for Montgomery County for 1976 

were significantly higher than comparable 

figures for neighboring counties and 42.1 percent higher than the State's figure. Intense 

competition exists between banks in MontgomDigitized for FRASER 

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Federal Reserve Bank of St. Louis
76 FEDERAL DEPOSIT INSURANCE CORPORATION

and thus, it is appropriate to consider the combined area of the District of Columbia and 

Montgomery County, Maryland, as the relevant 

geographic market in which to consider the 

competitive impact of the proposed transaction.*

A total of 38 commercial banks operate 330 

offices in this market. Suburban Trust, which 

holds 7.2 percent of the market's total 

deposits, ranks as the area's fifth largest competitor by such a measure. FSB ranks as the 

31st largest bank in the market, holding only 

0.2 percent of the total deposits. Upon consummation of the proposed transaction, Suburban 

Trust would increase its market share of 

deposits only a nominal amount to 7.4 percent, 

which would have no significant effect on the 

structure of commercial banking in the market.

The proponents' closest offices are located 

approximately 2 road-miles apart in the city of 

Rockville, with a second Rockville branch of 

Suburban Trust located 4 miles south of FSB's 

branch office. FSB's main office in Potomac is 

located approximately 5 miles west of one of 

Suburban Trust's Bethesda branches. While the 

proximity of offices indicates that some existing competition between the proponents would 

be eliminated by the proposed transaction, the 

existence of numerous offices of other banks in 

the immediate area indicates that a competitive 

banking environment would continue in the 

market if the merger were consummated.

Maryland State statutes permit statewide 

merging and de novo branching. Due, however, 

to restrictive zoning ordinances, Suburban 

Trust has been effectively prevented from de

novo entry into Potomac. FSB, which has 

experienced initial start-up problems, lacks the 

financial and managerial resources to mount 

effectively any meaningful expansion into other 

areas now served by Suburban Trust. Thus, the 

effect of the proposed transaction on the 

potential for future competition would be of little significance.

The Board of Directors is of the opinion that 

the proposed transaction would not, in any section of the country, substantially lessen competition, tend to create a monopoly, or in any 

other manner be in restraint of trade.

Financial and Managerial Resources; Future

Prospects. FSB experienced initial start-up 

problems and presently lacks the financial and 

managerial resources to develop into an effective competitor, while Suburban Trust has had a

’ See Basts for Corporation Approval of the merger of The 

Commerce Bank and Trust Company of Maryland, 

Bethesda, Maryland, and Potomac National Bank, 

Potomac, Maryland. FDIC Annual Report-1977, pp.80-81.

satisfactory record in both of these areas of 

consideration. The resultant bank is anticipated 

to have favorable future prospects.

Convenience and Needs of the Community

to be Served. The services to be offered by the 

resultant bank are presently available at offices 

of a number of large competitors in the relevant 

market. The proposed transaction, thus, would 

have a minimal effect on the convenience and 

needs of the community to be served.

Based on the foregoing, the Board of Directors has concluded that approval of the application is warranted.

Resources 

(in thousands 

of dollars)

Banking offices 

in operation

Before After

West Side Bank

Scranton, Pennsylvania

(change title to 

First State Bank)

67,495 4 7

to merge with

The First National

Bank of Hawley

Hawley

20,151 3

Summary report by Attorney General,

May 25, 1978

We have reviewed this proposed transaction 

and conclude that it would not have a substantial competitive impact.

Basis for Corporation approval,

August 11,1978

West Side Bank, Scranton, Pennsylvania 

("West Bank” ), an insured State nonmember 

bank with total resources of $67,495,000 and 

total IPC deposits of $60,554,000, has applied, 

pursuant to Section 18(c) and other provisions 

of the Federal Deposit Insurance Act, for the 

Corporation's consent to merge, under its 

charter, with The First National Bank of Hawley, 

Hawley, Pennsylvania ("First National” ), with 

total resources of $20,151,000 and total IPC 

deposits of $18,220,000. Incident to the transaction, the three offices of First National would 

be established as branches of West Bank and 

the present main office of First National would 

be designated as the main office of the resultant bank, which would commence operation 

with seven offices and with the title "First State 

Bank” .

Competition. West Bank operates its main 

office and three branches in the Scranton area 

Digitized 

of Lackawanna County. First National operates

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BANK ABSORPTIONS APPROVED BY THE CORPORATION 77

two offices in Hawley, Wayne County, and one 

office in Lackawaxen Township, Pike County.

The borough of Hawley (1970 population 

1,331) is located in the relatively sparsely 

populated hill region on the northern fringe of 

the Pocono Mountains. The borough of 

Honesdale (1970 population 5,224), located 

approximately 10 road-miles northwest of 

Hawley, serves as the area's principal commercial center. Wayne and Pike Counties contain a 

large percentage of crop and pasture land, with 

the principal agricultural activity being dairy 

farming. While some manufacturing activity is 

in evidence, recreational activity and tourism 

have grown in economic importance in recent 

years. A sizable number of seasonal or 

"second” homes are located in the two-county 

area. While the median household buying levels 

for Wayne and Pike Counties are somewhat 

below the comparable figure of the State, the 

area has experienced increases in population 

and has a favorable economic prospect.

The relevant market in which to assess the 

competitive impact of the proposed transaction is regarded as the area within a 15-to-20- 

road-mile radius of Hawley which would include 

portions of Wayne and Pike Counties. Ten commercial banks operate a total of 14 offices in 

this market, with First National holding a 10.3- 

percent share of the market's IPC deposits. First 

National ranks as the fourth largest bank in the 

market by such a measure, with the three larger 

institutions, based in neighboring Honesdale, 

aggregately holding 51.8 percent of the IPC 

deposits in the market. As West Bank is not represented in this market (proponents' nearest 

offices are located approximately 35 road-miles 

apart), they are not regarded as being in direct 

competition and the proposed transaction is 

seen as having no significant effect on existing 

competition or on the structure of commercial 

banking in the local market.

Pennsylvania statutes permit de novo

branching activity in a bank's home office county and in contiguous counties, and as such, 

each proponent is permitted to enter the market 

now served by the other. West Bank, based in 

the western portion of the city of Scranton, has 

limited its branching activity to the urbanized 

area in and around that city and appears an 

unlikely candidate for de novo expansion into 

the rural Hawley market in light of the numerous 

banking offices already serving the relatively 

limited population of the area. First National 

does not possess the financial resources to 

mount any meaningful expansion effort into the 

urban area of Scranton now served by West 

Bank. It therefore follows that no significant 

potential for increased future competition between the proponents would be eliminated by 

consummation of the proposed transaction.

The Board of Directors is of the opinion that 

the proposed transaction would not, in any section of the country, substantially lessen competition, tend to create a monopoly, or in any 

other manner be in restraint of trade.

Financial and Managerial Resources; Future

Prospects. The considerations relating to financial and managerial resources have been 

satisfactorily resolved. The resultant bank is 

anticipated to have favorable future prospects.

Convenience and Needs of the Community

to be Served. The proposed transaction would 

not substantially change the services now 

available to the customers of either bank. The 

considerations of convenience and needs of the 

community are consistent with approval of the 

application.

Based on the foregoing, the Board of Directors has concluded that approval of the application is warranted.

Resources 

(in thousands 

of dollars)

Banking offices 

in operation

Before After

Citizens National 

Bank

Ogden, Utah 

(change title to 

The Citizens Bank)

23,119 3 4

to consolidate with

Kamas State Bank 

Kamas

7,462 1

Summary report by Attorney General,

April 27, 1978

The consolidating banks are both majorityowned subsidiaries of the same bank holding 

company. As such, their proposed consolidation is essentially a corporate reorganization 

and would have no effect on competition.

Basis for Corporation approval,

August 11,1978

Citizens National Bank, Ogden, Utah ("Citizens 

Bank” ), with total resources of $23,119,000 

and total IPC deposits of $14,915,000, has 

applied, pursuant to Section 18(c) and other 

provisions of the Federal Deposit Insurance Act, 

for the Corporation's prior consent to consolidate with Kamas State Bank, Kamas, Utah 

("Kamas Bank"), with total resources of 

$7,462 ,0 00 and total IPC deposits of 

$5,487,000, under a new State charter with 

the title "The Citizens Bank". The sole office of 

Kamas Bank would- be established as a branch 

of the resultant bank which would commence

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78 FEDERAL DEPOSIT INSURANCE CORPORATION

operation as an insured State nonmember bank 

operating a total of four offices.

Both proponents have been under effective 

common control since December 1968. The 

principal shareholders of Kamas Bank hold a 

majority of the outstanding shares of Citizens 

Bankshares, Inc., a one-bank holding company, 

whose principal asset and subsidiary is Citizens 

Bank. The eight members of Citizens Bank's 

board of directors are members of the ninemember board of directors of Kamas Bank. 

Senior officers of Citizens Bank serve in a dual 

capacity with corresponding titles and responsibilities of Kamas Bank.

Competition. Citizens Bank has confined its 

operations to three offices located in the 

urbanized Ogden-Salt Lake City corridor along 

the eastern shore of the Great Salt Lake. They 

serve an area described as a narrow strip of 

developed land bounded on the east by a formidable mountain range which serves as a 

natural barrier restricting travel and easy 

access. Kamas Bank operates its sole office 

east of the mountains approximately 40 roadmiles east of Salt Lake City (site of nearest 

office of Citizens Bank) and approximately 75 

road-miles southeast of Ogden. Kamas Bank is 

the third largest commercial bank in its local 

market holding 14.6 percent of the market's 

IPC deposits. The State's largest and thirdlargest banking organizations are represented in 

this market and both hold larger market shares 

than Kamas Bank; together they hold 62.1 percent of the market's IPC deposits.

Due to the geographic barrier and distance 

between the proponents' closest offices, little 

or no existing competition is in evidence. 

Likewise, and because of the modest size and 

resources of the two proponents, the prospects 

for increased future competition are regarded 

as remote.

The Board of Directors is of the opinion that 

the proposed transaction would not, in any section of the country, substantially lessen competition, tend to create a monopoly, or in any 

other manner be in restraint of trade.

Financial and Managerial Resources; Future

Prospects. The considerations relating to financial resources of each bank and of the resultant 

bank have been satisfactorily resolved. The 

managements of both institutions are essentially 

identical and would be unaffected by the proposed transaction. The future prospects of the 

resultant bank are regarded as favorable.

Convenience and Needs of the Community

to be Served. There would be no significant 

effect on the volume or types of services to be 

offered upon consummation of the proposed 

transaction. Considerations of convenience and 

needs of the community are, therefore, consistent with approval of the application.

Based on the foregoing, the Board of Directors has concluded that approval of the application is warranted.

Resources 

(in thousands 

of dollars)

Banking offices 

in operation

Before After

Banco Comercial 

de Mayaguez

Mayaguez, Puerto 

Rico

74,102 3 4

to purchase the assets and assume the deposit liabilities of

Banco de Ahorro 

de Puerto Rico 

San Juan (P.O. Hato 

Rey)

13,565 1

Approved under emergency provisions. No 

report requested from the Attorney General.

Basis for Corporation approval, 

September 5, 1978

Banco Comercial de Mayaguez, Mayaguez, 

Puerto Rico, an insured State nonmember bank 

with total resources of $74,102,000, has 

applied, pursuant to Section 18(c) of the 

Federal Deposit Insurance A ct, fo r the 

Corporation's consent to purchase the assets 

of and assume the liability to pay deposits made 

in Banco de Ahorro de Puerto Rico, San Juan 

(P.O. Hato Rey), Puerto Rico, an insured State 

nonmember bank with total resources of 

$13,565,000. Incident to the proposed transaction, the sole office of Banco de Ahorro de 

Puerto Rico would become a branch of Banco 

Comercial de Mayaguez.

As of September 5, 1978, Banco de Ahorro 

de Puerto Rico had deposits of $11,900,000 

and operated one office. On September 5,

1978, the Federal Deposit Insurance Corporation was appointed as Receiver of Banco de 

Ahorro de Puerto Rico.

The Board of Directors finds that the failure 

of Banco de Ahorro de Puerto Rico requires it to 

act immediately and thus waives publication of 

notice, dispenses with the solicitation of competitive reports from other agencies, and 

authorizes the transaction to be consummated 

immediately.

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BANK ABSORPTIONS APPROVED BY THE CORPORATION 79

Resources 

(in thousands 

of dollars)

Banking offices 

in operation

Before After

County Bank &

Trust Company (in

organization)

Morehead City, 

North Carolina

1

to purchase the assets and assume the deposit liabilities of

Morehead Plaza

Branch —Bank of

North Carolina,

National Association

Jacksonville

2,352* 1

'Total IPC deposits of office to be transferred by "Bank of 

North Carolina, National Association” . Assets not reported 

by office.

Summary report by Attorney General,

May 11, 1978

We have reviewed this proposed transaction 

and conclude that it would not have a substantial competitive impact.

Basis for Corporation approval, 

September 6, 1978

Pursuant to Sections 5 and 18(c) and other 

provisions of the Federal Deposit Insurance Act, 

applications have been filed on behalf of County Bank & Trust Company, Morehead City, 

North Carolina ("CBT"), a proposed new bank 

in organization, for Federal deposit insurance 

and for the Corporation's prior consent to 

purchase the assets of and assume the liability 

to pay deposits made in the Morehead Plaza 

branch of Bank of North Carolina, National 

A ssociation, Jacksonville, North Carolina 

("BNC"). The Morehead Plaza branch, with 

total IPC deposits of $2,352,000, would be 

operated as the sole office of CBT.

Competition. The proposed transactions are 

a vehicle by which a group of Carteret County, 

North Carolina, businessmen can establish an 

independent, locally owned commercial bank in 

the Morehead City area. Carteret County (1970 

population 31,603) is located in southeastern 

coastal North Carolina. It is of irregular shape of 

some 50 miles from east to west and 10 to 15 

miles from north to south, occupying a peninsula and series of coastal islands between Pamlico Sound and the Atlantic Ocean. A large portion of the county's land is described as low 

swampy woodland unsuitable for extensive 

cultivation and sparsely populated. The county 

has a diversified economic base encompassing 

manufacturing of apparel, processing of fish 

products, and tourism. Agricultural activities

include the raising of tobacco, potatoes, and 

vegetables. Morehead City has a large port 

facility operated by the State and has 

developed into a deep water harbor and shipping center. Only two major highways connect 

the county with other centers of commercial 

activity. New Bern (1970 population 14,660) is 

located approximately 35 road-miles northwest 

of Morehead City and Jacksonville (1970 

population 16,021) is located approximately 45 

road-miles west.

Morehead City (1970 population 5,233) and 

the neighboring town of Beaufort (1970 

population of 3,368), located 3 road-miles east, 

form the principal economic and commercial 

centers of the county. The proposed site of the 

new bank is in the Morehead Plaza Shopping 

Center located on U.S. Route 70 in Morehead 

City, which contains over 200,000 square feet 

of retail space. It is expected to attract residents 

from throughout the county and has the potential of replacing the downtown portion of 

Morehead City as the area's chief retail center.

The relevant market in which to assess the 

competitive impact of the proposed transactions is regarded as Carteret County, where 4 

banks operate a total of 14 offices. Under the 

proposal, BNC, which holds a modest 1.7 percent of the county's IPC deposits, will withdraw 

from representation in thee market and be replaced by CBT, which hopes to capture a larger 

market share by aggressively marketing its 

characteristics as a locally owned, independent 

bank. Eleven of the remaining 13 banking 

offices in the county are offices of the State's 

largest and fifth largest banks, w hich 

aggregately hold 90.3 percent of the market's 

IPC deposits. The proposed transaction is seen 

as having no significant effect on existing competition or on the structure of commercial banking in this local market.

North Carolina statutes concerning de novo

branching permit statewide activity. BNC has 

operated its sole office in Carteret County since 

February 1973 and has failed to make a significant market penetration. It is thus seen as 

unlikely to attempt a further expansion in the 

area in light of the number of other banking 

offices present. In this concentrated market, 

with large, well established statewide institutions, it is believed that the proposed transactions would have little effect on the potential for 

future competition between the proponents.

Under these circumstances, the Board of 

Directors is of the opinion that the proposed 

transaction would not, in any section of the 

country, substantially lessen competition, tend 

to create a monopoly, or in any other manner 

be in restraint of trade.

Financial and Managerial Resources; Future

Prospects. The resultant bank would have an

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80 FEDERAL DEPOSIT INSURANCE CORPORATION

adequate volume of capital funds for the type 

and nature of business it is expected to draw 

during its early years of operation, and its financial resources are anticipated to be satisfactory. 

CBT's management is also considered adequate, and its future prospects are regarded as 

acceptable.

Convenience and Needs of the Community

to be Served. It is anticipated that CBT will 

develop into an effective competitor. CBT proposes to offer free checking accounts and 

expanded banking hours, which are expected to 

be favorably received by potential customers in 

the Morehead City market. The considerations 

of convenience and needs of the community are 

consistent with approval of the applications.

Based on the foregoing, the Board of Directors has concluded that approval of the application for Federal deposit insurance and the 

application to purchase assets and assume 

liabilities is warranted.

Resources 

(in thousands 

of dollars)

Banking offices 

in operation

Before After

First State Bank

of Encino (in

organization)

Encino (Los 

Angeles), California

1

to purchase the assets and assume the deposit liabilities of

Encino Branch—

The Hongkong Bank

of California

San Francisco

5,537* 1

Summary report by Attorney General, 

June 26, 1978

We have reviewed this proposed transaction 

and conclude that it would not have a substantial competitive impact.

'Total deposits of office to be transferred by The 

Hongkong Bank of California. Assets not available by 

office.

Basis for Corporation approval, 

September 28, 1978

Pursuant to Sections 5, 18(c), and other provisions of the Federal Deposit Insurance Act, 

applications have been filed on behalf of First 

State Bank of Encino, Encino (Los Angeles), 

California ("First Bank"), a proposed new bank 

in organization, for Federal deposit insurance 

and for the FDIC's prior consent to purchase the 

assets of and assume the liability to pay

deposits made in the Encino Branch of The 

Hongkong Bank of California, San Francisco, 

California ("HKB"). The Encino Branch, with 

total deposits of $5,537,000, would be operated as the sole office of First Bank.

Competition. The proposed transaction 

would have its most direct and immediate 

impact in the trade area of Encino. Encino is an 

approximately 15-to-20-square-m ile com ­

munity containing an estimated population of 

44,000. Ventura Boulevard serves as a major 

east-west thoroughfare in the San Fernando 

Valley and has experienced extensive "strip" 

commercial development along much of its 17- 

mile route. In this corridor, several distinct retail 

and commercial centers are in evidence with 

residential development centered on the north 

and south side of the boulevard. In Encino, 

several high-rise office buildings have opened 

and the community serves as a focal point for 

extensive retail and commercial activity.

Ten commercial banks operate a total of 12 

offices in the above-described Encino market. 

Represented in this group are the five largest 

banking organizations in California. Under the 

proposals, HKB, which presently holds only a 

modest 2.8 percent of the market's IPC 

deposits, will withdraw from representation in 

Encino and be replaced by First Bank which will 

be locally owned and managed. Thus, the proposed transaction is seen as having no significant adverse effect on existing competition or 

on the structure of commercial banking in the 

local market. The possibility of potential competition developing between the subject banks 

is remote since HKB desires to withdraw from 

this area.

Based on the foregoing, the Board of Directors is of the opinion that the proposed transaction would not, in any section of the country, 

substantially lessen competition, tend to create 

a monopoly, or in any other manner be in 

restraint of trade.

Financial and Managerial Resources; Future

Prospects. The proposed First Bank would have 

an adequate level of capital funds to support 

the type and nature of business it is expected to 

draw during its early years of operation. Its 

financial resources are anticipated to be 

satisfactory and its management is regarded as 

adequate. First Bank's future prospects appear 

to be favorable.

Convenience and Needs of the Community

to be Served. The proposals will not affect the 

number of banks or banking offices serving the 

Encino community and will merely serve to 

substitute an independent, locally owned and 

managed commercial bank for a branch of an 

out-of-area bank whose interests appear to lie 

in other fields. It is anticipated that the new 

bank will attain sufficient deposit volume to

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BANK ABSORPTIONS APPROVED BY THE CORPORATION 81

become a profitable operation. The considerations of convenience and needs of the community to be served are consistent with 

approval of the transactions.

Based on the foregoing, the Board of Directors has concluded that approval of the application for Federal deposit insurance and the 

application to purchase assets and assume 

liabilities is warranted.

Resources 

(in thousands 

of dollars)

Banking offices 

in operation

Before After

The Bank of

Le Roy

Le Roy, New York 

(change title to 

Genesee Country 

Bank)

37,285 3 5

to merge with

The Citizens Bank

Attica

20,096 2

Summary report by Attorney General,

July 14, 1978

The merging banks are both wholly owned 

subsidiaries of the same bank holding company. 

As such, their proposed merger is essentially a 

corporate reorganization and would have no 

effect on competition.

Basis for Corporation approval, 

September 28, 1978

The Bank of Le Roy, Le Roy, New York 

("Applicant"), an insured State nonmember 

bank with total resources of $37,285,000 and 

total IPC deposits of $24,648,000, has applied, 

pursuant to Section 18(c) and other provisions 

of the Federal Deposit Insurance Act, for the 

FDIC's prior consent to merge with The Citizens 

Bank, Attica, New York ("Other Bank"), with 

total resources of $20,096,000 and total IPC 

deposits of $16,883,000. The banks would 

merge under the charter of Applicant with the 

title "Genesee Country Bank,” and the two 

offices of Other Bank would become branches 

of the resultant bank, which would commence 

operations with a total of five offices.

Competition. Essentially a corporate 

reorganization, the proposal would provide a 

means whereby Security New York State Corporation, Rochester, New York, the 19th largest 

of the State's commercial banking organizations, controlling nine banks with aggregate 

total deposits of $968,957,000 (0.7 percent of

New York State's total deposits), may consolidate its operations in Genesee and Wyoming 

Counties. The proponents have been owned by 

Security New York State Corporation since 

1970, and their proposed merger would not 

affect the structure of commercial banking or 

the concentration of banking resources within 

the relevant market.

The Board of Directors is of the opinion that 

the transaction, would not, in any section of the 

country, substantially lessen competition, tend 

to create a monopoly, or in any other manner be 

in restraint of trade.

Financial and Managerial Resources; Future

Prospects. While the proponents' capital positions are somewhat below desired levels, their 

financial and managerial resources are considered adequate for purposes of this proposal. 

The resultant bank should be able to operate 

more efficiently and its future prospects appear 

favorable.

Convenience and Needs of the Community

to be Served. The services to be offered in the 

relevant market by the resultant bank would not 

differ from those presently offered by each 

proponent. The considerations of convenience 

and needs of the community are consistent 

with approval of the transaction.

On the basis of the foregoing information, 

the Board of Directors has concluded that 

approval of the application is warranted.

Resources 

(in thousands 

of dollars)

Banking offices 

in operation

Before After

Peoples Bank &

Trust Company

Rocky Mount, North 

Carolina

294,674 42 47

to merge with

The Cumberland Bank

Fayetteville

23,334 5

Summary report by Attorney General, 

August 30, 1978

We have reviewed this proposed transaction 

and conclude that it would not have a significant adverse effect upon competition.

Basis for Corporation approval,

October 5, 1978

Peoples Bank & Trust Company, Rocky 

Mount, North Carolina ("Peoples Bank"), an 

insured State nonmember bank with total 

resources of $294,674,000 and total IPC

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82 FEDERAL DEPOSIT INSURANCE CORPORATION

deposits of $232,129,000, has applied, pursuant to Section 18(c) and other provisions of 

the Federal Deposit Insurance Act, for the Corporation's prior consent to merge with The 

Cumberland Bank, Fayetteville, North Carolina 

("Cumberland Bank"), with total resources of 

$2 3,33 4,00 0 and total IPC deposits of 

$16,412,000. The banks would merge under 

the charter and title of Peoples Bank, and incident to the merger, the 5 existing offices of 

Cumberland Bank would become branches of 

the resultant bank, increasing the number of its 

offices to 47.

Competition. Peoples Bank is the 11 th 

largest banking organization in North Carolina. It 

currently operates 42 offices located predominantly in the northeastern portion of the State. 

The nearest office of Peoples Bank to an office 

of Cumberland Bank is located in Raleigh, 

approximately 60 miles north. Cumberland 

Bank operates four offices in Fayetteville and 

one in nearby Spring Lake. The areas served by 

the two banks do not overlap.

The effects of this proposal would be most 

pronounced in Cumberland County, the primary 

market of Cumberland Bank. Fayetteville is the 

only urban area in the county, but Fort Bragg, 

one of the Nation's largest military installations, 

and adjoining Pope Air Force Base add considerable population to the area. There are 9 

banking institutions, operating 65 banking 

offices, located in the county. This includes 7 of 

the State's 10 largest banking organizations. 

Cumberland Bank has 5.8 percent of the total 

IPC deposits in the county. Peoples Bank is not 

represented in the county, and inasmuch as the 

proposal would merely substitute Peoples Bank 

for Cumberland Bank, at the same sites, it is not 

expected that relative local market shares 

would be affected.

Under North Carolina law each bank could 

establish de novo branches in areas serviced by 

the other bank. Because of its limited resources 

and the distances involved, Cumberland Bank is 

unlikely to engage in any such de novo branching activity. Peoples Bank has the capability for 

de novo branching, but there is little incentive to 

enter by this means because of the number of 

commercial banking offices already in Cumberland County. It therefore appears unlikely that 

any significant potential competition would be 

eliminated by the proposed merger.

Based on the foregoing, the Board of Directors is of the opinion that the proposed merger 

would not, in any section of the country, substantially lessen competition, tend to create a 

monopoly, or in any other manner be in restraint 

of trade.

Financial and Managerial Resources; Future

Prospects. Both proponents have satisfactory 

financial and managerial resources, as would

the resultant bank. The future prospects appear 

favorable.

Convenience and Needs of the Community

to be Served. Consummation of this proposed 

merger would make available larger lending 

limits and more sophisticated banking services 

to Cumberland Bank's customers. These services are available at a number of other large 

commercial banks in the area, but the considerations of convenience and needs are 

nevertheless consistent with approval of the 

proposed merger.

Based on the foregoing, the Board of Directors has concluded that approval of the application is warranted.

Resources 

(in thousands 

of dollars)

Banking offices 

in operation

Before After

Colonial Bank of 292,064 20 66

New Haven

New Haven,

Connecticut

(change title to

Colonial Bank)

to merge with

Colonial Bank of 523,834 34

Waterbury

and

Colonial Bank of 42,134 6

Hartford

Hartford

and

Colonial Bank of 43,336 6

Plainville

Plainville

Summary report by Attorney General,

June 26, 1978

The merging banks are all wholly owned subsidiaries of the same bank holding company. As 

such, their proposed merger is essentially a corporate reorganization and would have no effect 

on competition.

Basis for Corporation approval,

October 12, 1978

Colonial Bank of New Haven, New Haven, 

Connecticut ("Applicant"), an insured State 

nonmember bank with total resources of 

$ 2 9 2 ,0 64 ,0 00 and total IPC deposits of 

$238,224,000, has applied, pursuant to Section 18(c) and other provisions of the Federal 

Deposit Insurance Act, for the FDIC's prior consent to merge with Colonial Bank of Waterbury, 

Waterbury, Connecticut, with total resources of 

$ 5 23 ,8 34 ,0 00 and total IPC deposits of

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BANK ABSORPTIONS APPROVED BY THE CORPORATION 83

$340,417,000; Colonial Bank of Hartford, 

Hartford, Connecticut, with total resources of 

$ 4 2,13 4,00 0 and total IPC deposits of 

$37,841,000; and Colonial Bank of Plainville, 

Plainville, Connecticut, with total resources of 

$4 3,3 3 6 ,0 0 0 and total IPC deposits of 

$35,047,000. These banks would merge under 

the charter of Applicant and, with the title 

"Colonial Bank." The 46 authorized offices of 

the other banks would be established as 

branches of the resultant bank. The main 

office location will be redesignated to the present main office site of Colonial Bank of Waterbury.

Competition. Essentially a corporate 

reorganization, the proposal would provide a 

means by which Colonial Bancorp, Inc., Waterbury, Connecticut, a bank holding company 

which controls these four banks only, may consolidate its operations. The proponents have 

been under common control since 1977. The 

proposed merger would not affect the structure 

of commercial banking or the concentration of 

banking resources within the relevant markets.

In view of the foregoing, the Board of Directors is of the opinion that the proposed merger 

would not, in any section of the country, substantially lessen competition, tend to create a 

monopoly, or in any other manner be in restraint 

of trade.

Financial and Managerial Resources; Future

Prospects. The proponents' financial and 

managerial resources are considered adequate 

for the purposes of this proposal. The financial 

and managerial resources of the resultant bank 

would be satisfactory and its future prospects 

appear favorable.

Convenience and Needs of the Community

to be Served. The services to be offered in the 

relevant markets by the resultant bank would 

not differ materially from those presently 

offered by each proponent.

On the basis of the foregoing information, 

the Board of Directors has concluded that 

approval of the application is warranted.

Resources 

(in thousands 

of dollars)

Banking offices 

in operation

Before After

The Equitable

Trust Company

Baltimore, Maryland

1,448,598 95 99

to merge with

Truckers and Savings

Bank

Salisbury

18,220 4

Summary report by Attorney General, 

August 28, 1978

We have reviewed this proposed transaction 

and conclude that it is essentially a corporate 

reorganization and would have no effect on 

competition.

Basis for Corporation approval,

October 12, 1978

The Equitable Trust Company, Baltimore, 

Maryland ("Applicant"), an insured State nonmember bank w ith total resources of 

$1,448,598,000 and total IPC deposits of 

$1,138,728,000, has applied, pursuant to Section 18(c) and other provisions of the Federal 

Deposit Insurance Act, for the FDIC's prior consent to merge with Truckers and Savings Bank, 

Salisbury, Maryland ("Truckers"), with total 

resources of $ 1 8,22 0,00 0 and total IPC 

deposits of $14,827,000. These banks would 

merge under the charter and with the title of 

Applicant and the four existing and one 

approved but unopened offices of Truckers 

would be established as branches of the resultant bank.

Competition. Applicant and Truckers are 

wholly owned subsidiaries of Equitable Bancorporation, Baltimore, Maryland, a bank holding 

company, and have been under common control since 1974. Essentially a corporate 

reorganization, this proposal would result in the 

business of these two banks being conducted 

under the charter and title of Applicant. The 

proposed merger would not affect the structure 

of commercial banking or the concentration of 

banking resources within the relevant market.

In view of the foregoing, the Board of Directors is of the opinion that the proposed merger 

would not, in any section of the country, substantially lessen competition, tend to create a 

monopoly, or in any other manner be in restraint 

of trade.

Financial and Managerial Resources; Future

Prospects. The proponents' financial and 

managerial resources are considered adequate 

for the purposes of this proposal. The financial 

and managerial resources of the resultant bank 

would be acceptable and its future prospects 

appear favorable.

Convenience and Needs of the Community

to be Served. The services to be offered in the 

relevant market by the resultant bank would not 

differ materially from those presently offered 

by each proponent.

On the basis of the foregoing information, 

the Board of Directors has concluded that 

approval of the application is warranted.

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84 FEDERAL DEPOSIT INSURANCE CORPORATION

Resources 

(in thousands 

of dollars)

Banking offices 

in operation

Before After

The New York

Bank for Savings

New York, (Manhattan), New York

3,765,557 26 32

to merge with

First Chartered

Savings and Loan

Association

Port Jervis

96,265* 6

'Total deposits.

Summary report by Attorney General, 

August 8, 1978

The closest offices of the merging parties 

(Applicant's Bedford Hills office in Westchester 

County and First Chartered's Nyack office in 

Rockland County) are 21 miles apart. The 

application indicates that, based upon a sampling of accounts, the merging parties have a 

negligible number of common depositors. 

However, according to the application, there is 

some deposit overlap between Applicant and 

First Chartered; thus, as of December 31, 

1977, Applicant held $27.7 million in deposits 

drawn from First Chartered's primary and 

secondary service areas, and First Chartered 

held $2.3 million in deposits drawn from Applicant's primary and secondary service areas. It 

therefore appears that the proposed merger 

would eliminate some existing competition between Applicant and First Chartered. However, 

it does not appear that concentration among 

th rift institu tio ns would be sig nifica ntly 

increased in any relevant market. Finally, under 

New York law, thrift institutions may establish 

one de novo branch office per year. The potential for increased future competition between 

Applicant and First Chartered through de novo

branching is therefore limited.

Basis for Corporation approval,

October 30, 1978

The New York Bank for Savings, New York 

(Manhattan), New York ("NYBS"), an insured 

mutual savings bank with total resources of 

$ 3 ,7 6 5 ,5 5 7 ,0 0 0 and total deposits of 

$3,359,764,000, has applied, pursuant to Section 18(c) and other provisions of the Federal 

Deposit Insurance Act, for the Corporation's 

prior consent to merge with First Chartered 

Savings and Loan Association, Port Jervis, New 

York ("First Chartered"), a Federally insured 

savings and loan association with total deposits 

of $96,265,000. The 2 institutions would 

merge under the charter and title of NYBS, and

incident to the merger, the 6 offices of First 

Chartered would become branches of the resultant bank, which would commence operating 

with a total of 32 offices and 1 approved, but 

unopened office.

Competition. NYBS operates its main office 

and 16 branches in Manhattan, 2 branches in 

Westchester County, 3 branches in the 

Rochester area of Monroe County, and 4 

branches in the Syracuse area of Onondaga 

County. An additional branch has been 

approved for the Syracuse area. NYBS is the 

third largest thrift institution in New York State.

The relevant market in which to assess the 

competitive impact of the proposed transaction 

is regarded as Orange and Rockland Counties, 

where First Chartered operates its six offices. 

While there is some evidence of commutation 

to New York City and other nearby areas for 

employment, the majority of the residents of 

the two-county area are employed locally. 

Several well-known industrial firms have established manufacturing facilities in this market 

and contribute to a stable economic base.

There are 31 thrift institutions operating 65 

offices in the relevant market. First Chartered, 

which ranks as the market's fifth largest thrift 

institution, holds a modest 6.4 percent of the 

area's thrift institution deposits. NYBS, whose 

nearest office is located 21 road-miles distant 

from the closest office of First Chartered, is not 

represented in this market. The proposed transaction would have no significant effect on existing competition between the proponents or on 

the structure of thrift institution banking in the 

local market. NYBS's ranking as the State's 

third largest thrift institution would not be 

materially affected by the relatively modest 

volume of deposits held by First Chartered. 

The potential for substantial competition to 

develop between the two banks through de

novo branching is considered remote due to the 

very strong competition First Chartered would 

encounter in the New York City area and the 

statutory limitation of one de novo branch a 

year applicable to NYBS.

Based on the foregoing, the Board of Directors is of the opinion that the proposed merger 

would not, in any section of the country, substantially lessen competition, tend to create a 

monopoly, or in any other manner be in restraint 

of trade.

Financial and Managerial Resources; Future

Prospects. The considerations relating to financial and managerial resources have been 

satisfactorily resolved, and the resultant bank is 

anticipated to have favorable future prospects.

Convenience and Needs of the Community

to be Served. NYBS's entry into the Orange and 

Rockland Counties market would make available an additional alternative for certain thrift

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institution services not now offered by First 

Chartered. The considerations of convenience 

and needs of the community to be served are 

consistent with approval of the application.

Based on the foregoing, the Board of Directors has concluded that approval of the application Is warranted.

Resources 

(in thousands 

of dollars)

Banking offices

in operation

Before After

Vevay Deposit Bank 

Vevay, Indiana

16,568 1 2

to merge with

East Enterprise 

State Bank

East Enterprise

2,979 1

Summary report by Attorney General, 

August 28, 1 978

We have reviewed this proposed transaction 

and conclude that it would not have a substantial competitive impact.

Basis for Corporation approval, 

November 8, 1978

Pursuant to Section 18(c) and other provisions of the Federal Deposit Insurance A c t an 

application has been filed on behalf of Vevay 

Deposit Bank, Vevay, Indiana ("Applicant"), an 

insured State nonmember bank with total 

resources of $ 1 6,56 8,00 0 and total IPC 

deposits of $13,252,000, for the FDIC's prior 

consent to merge, under its charter and title, 

with East Enterprise State Bank, East Enterprise, 

Indiana ("State Bank"), also an insured State 

nonmember bank, with total resources of 

$ 2 ,9 7 9 ,0 0 0 and total IPC deposits of 

$2,434,000. The sole office of State Bank 

would be established as a branch of the resultant bank.

Competition, Applicant operates its sole 

office in the town of Vevay (1970 population 

1,463) in the southern portion of Switzerland 

County of southeastern Indiana and has 

received approval to establish its first de novo

branch, also in Vevay. State Bank operates its 

sole office at the village of East Enterprise (estimated population 1 50) in the northern part of 

Switzerland County approximately 12 roadmiles northeast of Vevay.

Switzerland County and adjoining Ohio 

County (1970 population 6,306 and 4,289, 

respectively), which form the relevant market in

which to assess the competitive impact of the 

proposed transaction, are among the smallest 

of Indiana's counties in both area and population. These counties are located in the rural, 

extreme southeastern portion of the State 

adjoining the Ohio River. The terrain is generally 

hilly and the economy predicated, to a large 

extent, upon livestock production and 

agriculture. The city of Madison (1970 population 13,081) and the Aurora-Lawrenceburg 

area (estimated population 9,000) contain 

diversified industry and manufacturing plants 

which serve, to some extent, as centers for 

nonagricultural employment for the market's 

rural residents.

In the relevant market, four commercial 

banks each operate a single office. Applicant, 

holding 38.7 percent of the market's IPC 

deposits, ranks as its largest bank; State Bank is 

the smallest, holding a 6.8-percent share of 

such funds which are drawn from a limited local 

area. The two-county market is sparsely populated with the city of Madison and the AuroraLawrenceburg area providing, to some extent 

an alternate source of commercial banking 

service. Represented in these cities are banks of 

a substantially larger size than the institutions 

competing in Switzerland and Ohio Counties.

While the proposed merger would eliminate 

some existing competition between the proponents and increase concentration levels in the 

market these consequences have only limited 

significance in light of the small size of the relevant market and its deposit potential Although 

the proposed merger would reduce from four to 

three the number of commercial banks in this 

market the effectiveness of State Bank as a 

com petitor appears lim ited. State Bank, 

organized in 1909, has attained less than $3 

million in total deposits in its almost 70-year 

history and presently administers a loan 

portfolio of only $770,000.

Indiana statutes permit de novo branching 

throughout a bank's home office county, subject to a home office protection provision. State 

Bank's limited size., however, appears to preclude its expansion by such means. Applicant, 

while possessing the necessary resources and 

ability to engage in de novo branching, is hampered by Switzerland County's limited population, particularly in the northern portion of the 

county m the vicinity of East Enterprise. The 

proposed transaction is thus viewed as having 

no significant effect on the potential for future 

competition between the proponents.

Under the circumstances, the Board of Directors is of the opinion that the proposed transaction would not in any section of the country, 

substantially lessen competition, tend to create 

a monopoly, or in any other manner be in 

restraint of trade.

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86 -tDLRA*. 0- " " l r

Financial and Managerial Resources; t> rrre

Prospects. The financial and managerial 

resources of both proponents ar;d of the resultant bank are consde'ed adequate lor purposes 

of this proposal Fr«t rasultain bank is antic; 

paled to have T s v o rb le future prospects, 

Convenience and Needs of the Community

to he Served. State Bank's limited resources 

have prevented it from offering many full service commercial banking ^er sees that vvouic oe 

available at the resuitart c»jK In aactoio*». a 

modernization program is ^ r for State 

Bank's building, and a drive-up ‘ability wojk.1 be 

added. The considerations of convenience and 

needs of the community to be served appear to 

add some weight in favor of approval of the 

application.

Available information indicates that no 

inconsistencies with the purposes of the Community Reinvestment Act appear to exist. 

Based on the foregoing, the Board of Directors has concluded that approval of the application is warranted.

1— ■

| Resources 

I (in thousands 

| of dollars)

Banking offices 

in operation

Before j| After

Gardiner Savings | 

Institution

Gardiner, Maine

50,058 .. 4

to merge with

Hailowell Savings and 

Loan Association

4,618 i !

Hailowell j

Summary report by Attorney General, 

October 3, 1 978

The primary service area of Applicant overlaps that of Bank. The main offices of both are 

located 4.3 miles apart in Kennebec County. In 

view of the overlapping service areas of Applicant and Bank and the closeness of their 

offices, the proposed acquisition would eliminate both present and future direct competition 

for deposits.

As of June 30, 1977, Applicant was the 

seventh largest banking institution in Kennebec 

County, with 7.9 percent of total savings 

deposits in all financial institutions. Bank is the 

smallest of fo ur savings associations in the 

county, with 1.1 percent of total savings 

deposits in financial institutions. Consummation 

of the proposed acquisition would give the 

resulting bank a totai of 9,0 percent of savings 

deposits in county financial institutions.

T r : „ c? _ m - - i f * * ' , a

si ' «■ , _ G *" M ’■* >r

Basis for Corporation approval, 

November 8f 1978

Gardiner Savings Institution, Gardiner, Maine 

("Gardiner Savings"), an insured mutual savings b&nx with total resources of $50,058,000 

and tctr-s deposits of $45,730,000, has 

applied Pursuant to Section 18(c) and other 

provisions of the Federal Deposit Insurance Act, 

for the prior consent to merge with

Hailowell Savings and Loan Association, 

Hailowell, Maine ("S&L"), a federally insured 

savings and loan association with total 

resources of $4,618,000 and total deposits of 

$4,441,000 The merger would be effected 

'e* tne charter and title of Gardiner Savings 

r id thr, so!e office of S&L would be established 

as * oranch of the resultant bank.

Competition, Gardiner Savings operates 

three offices in the three-county area in the 

cap till region of Maine, with its main office in 

(; jiner, Kennebec County, approximately 7 

.«* south of the city of Augusta, and 

•_> . nohes 10 miles south and 17 miles 

southeast of Gardiner, in Richmond, Sagadahoc 

County, and Wiscasset, Lincoln County, respective:’/ Gardiner Savings is the 16th largest 

mutual savings bank in Maine, having 2.3 percent of deposits held by all mutual savings 

banks in the State. S&L's sole office is located 

in Hailowell (1970 population 2,814), approximately 4 miles north of Gardiner Savings' main 

office,

S&L's service area is located wholly within 

the service area of Gardiner Savings. In addition 

to Hailowell, the relevant trade area in which to 

assess the competitive impact of the proposed 

transaction consists of the cities of Augusta to 

the north and Gardiner to the south, along with 

the surrounding municipalities of Farmingdale, 

W est Gardiner, Pitts ton, Randolph, and 

Chelsea. The combined population of this area 

in 1 970 was 40,755, a modest increase of 2.5 

percent over 1 960 The area serves as a shopping and service center for a number of surrounding towns, in addition to having heavy 

manufacturing, some tourism, and a concentration of governmental activity.

Gardiner Savings holds approximately 20.8 

percent of deposits held by thrift institution 

offices in the relevant market. It ranks third in 

market share among five thrift institutions 

which operate a totai of seven offices in the 

trade area, S&L is the smallest of these five 

institutions, holding 2.9 percent of area thrift 

institution deposits, in view of S&L's relatively 

small size, limited resources, and weakened 

condition, the proposed transaction is seen as

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having no significant effect on existing competition or on the potential for increased future 

competition between the proponents.

Under the circumstances, the Board of Directors is of the opinion that the proposed merger 

would not, in any section of the country, substantially lessen competition, tend to create a 

monopoly, or in any other manner be in restraint 

of trade.

Financial and Managerial Resources; Future

Prospects. The financial and managerial 

resources of Gardiner Savings are satisfactory. 

S&L's financial resources have deteriorated to 

the point where the institution functions as only 

a weak competitor. Its acquisition by Gardiner 

Savings will eliminate such problems. The 

future prospects of the resultant bank are 

regarded as satisfactory.

Convenience and Needs of the Community

to be Served. S&L's sole office would become a 

branch of Gardiner Savings which will offer a 

broader range of thrift institution services than 

have been available to S&L's patrons. The replacement of a small, weakened, and unaggressive institution with a sound and more 

aggressive one should benefit local residents. 

The considerations of convenience and needs 

of the community appear to add some support 

to approval of the transaction.

Available information indicates that no 

inconsistencies with the purposes of the Community Reinvestment Act appear to exist.

Based on the foregoing, the Board of Directors has concluded that approval of the application is warranted.

Resources 

(in thousands 

of dollars)

Banking offices 

in operation

Before After

American Bank of 

Maryland

Silver Spring, 

Maryland 

(change title to 

First American Bank 

of Maryland)

212,570 20 24

to merge with

Chesapeake National

Bank

Towson

41,963 4

Summary report by Attorney General, 

August 8, 1 978

The merging banks are both majority-owned 

subsidiaries of the same bank holding company.

As such, her :soo -sed merger is essentially a 

corporate reorganization and would have no 

effect on competition.

Basis for Corporation approval, 

November 8, 1978

American Bank of Maryland, Silver Spring, 

Maryland ("American"), an insured State nonmember bank w ith total resources of 

$ 2 1 2 ,5 70 ,0 00 and total IPC deposits of 

$184,338,000, has applied, pursuant to Section 18(c) and other provisions of the Federal 

Deposit Insurance Act, for the FDIC's prior consent to merge with Chesapeake National Bank, 

Towson, Maryland ("Chesapeake"), with total 

resources of $41,96 3,00 0 and total !rC 

deposits of $36,182,000. These banks wo 

merge under the charter of American and w; 

the title "First American Bank of Maryland 

The four existing offices of Chesapeake would 

be established as branches of the resultant 

bank.

Competition. Essentially a corporate 

reorganization, the proposal would provide a 

vehicle by which Financial General Bankshares, 

Inc., Washington, D.C., a multi-bank holding 

company, may consolidate its operations in 

central Maryland. The proponents are both partially owned by a wholly owned subsidiary of 

the holding company, Financial General Corporation of Maryland, which owns 45.8 percent 

of American and 93.6 percent of Chesapeake.

American, based in Silver Spring, operates a 

total of 20 offices serving central Maryland 

from the Baltimore area to suburban Washington, D.C. Chesapeake, based in Towson north 

of the city of Baltimore, operates four offices in 

the Baltimore and Annapolis areas. While the 

primary service areas of the proponents do 

overlap to some minor extent, the service ar 

are viewed as generally complementary. Eh 

tive, direct competition, absent the comrownership factor, is in evidence only at off? 

located in the vicinity of Annapolis. In ligh v 

the number of other banking alternatives av: ■- 

able to residents of that area, consummatior . 

the proposed transaction would have little competitive impact.

The common ownership interest in both proponents by the holding company precludes any 

significant existing or potential competition. 

Chesapeake was established in 1964 and has 

remained under majority control of the holding 

company since that time. Minority "control" of 

American dates from 1955, and while actual 

ownership of that institution by the holding 

company is slightly less than 50 percent, it 

seems unlikely that the actual majority control 

of the institution would be allowed to pass to 

another individual or group.

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Federal Reserve Bank of St. Louis
88 FEDERAL DEPOSIT INSURANCE CORPORATION

Under these circumstances, the Board of 

Directors is of the opinion that the proposed 

transaction would not, in any section of the 

country, substantially lessen competition, tend 

to create a monopoly, or in any other manner be 

in restraint of trade.

Financial and Managerial Resources; Future

Prospects. The proponents' financial and 

managerial resources are considered adequate 

for the purposes of this proposal. The financial 

and managerial resources of the resultant bank 

would be acceptable, and its future prospects 

appear favorable.

Convenience and Needs o f the Community

to be Served. The services to be offered in the 

relevant market by the resultant bank would not 

differ materially from those presently offered 

by each proponent or available at competing 

banks. The considerations of convenience and 

needs of the community, however, are consistent with approval of the transaction.

Available information indicates that no 

inconsistencies with the purposes of the Community Reinvestment Act appear to exist.

On the basis of the foregoing, the Board of 

Directors has concluded that approval of the 

application is warranted.

Resources 

(in thousands 

of dollars)

Banking offices 

in operation

Before After

Frankenmuth Bank 

& Trust

Frankenmuth, Michigan

1 9 3 , 1 3 9 1 4 1 5

to consolidate with

The Farmers and 

Merchants State Bank 

of M errill

Merrill

9 , 2 1 0 1

Summary report by Attorney General,

June 26, 1978

We have reviewed this proposed transaction 

and conclude that it would not have a significantly adverse effect upon competition.

Basis for Corporation approval, 

November 8, 1978

Frankenmuth Bank & Trust, Frankenmuth, 

Michigan ("Frankenmuth Bank"), an insured 

State nonmember bank with total resources of 

$ 1 9 3 ,1 3 9 ,0 0 0 and total IPC deposits of 

$158,085,000, has applied, pursuant to Section 18(c) and other provisions of the Federal 

Deposit Insurance Act, for the Corporation's

prior consent to consolidate with The Farmers 

and Merchants State Bank of Merrill, Merrill, 

Michigan ("Farmers Bank” ), an insured State 

member bank w ith total resources of 

$ 9 ,2 1 0 ,0 0 0 and total IPC deposits of 

$7,703,000, under the charter and title of 

Frankenmuth Bank. Farmers Bank's sole office 

would be operated as a branch of the resultant 

bank.

Competition. The two banks are located in 

cities situated about 30 miles apart in Saginaw 

County, which is in east-central Michigan. The 

county had a 1970 population of 219,743, 

which was a 1 5.2-percent increase from the 

1960 population figure. The banking market 

most relevant to an evaluation of this proposed 

transaction would be an area within an approximate 20-road-mile radius of Merrill, including 

portions of Saginaw, Midland, and Gratiot 

Counties. Much of the area is rural with the 

economy chiefly predicated upon agriculture. 

The cities of Saginaw, 1970 population 

9 1 ,8 4 9 , and M idland, 19 70 population 

34,921, serve as the area's economic centers 

and provide nonfarm employment and shopping convenience to residents of the trade area. 

The area, with the exception of the city of 

Saginaw, has experienced a moderate growth 

in population, and except for Gratiot County, 

income averages are near or above the 1977 

State median household buying level.

The proponents are in direct competition to 

the extent that two of Frankenmuth Bank's 

branches are in the relevant market of Farmers 

Bank. The competitive effect of the transaction, 

however, is regarded as nominal in light of the 

number of alternate sources of commercial 

banking available in the market area and the 

relative size of such competing institutions. The 

closest offices of the two banks are 14 miles 

apart with offices of other banks in the intervening area.

Of the 14 banks operating a total of 53 

offices in the relevant market, the proponents 

rank 7th and 13th in percentage of total 

deposits held. The resultant bank would hold 

4.4 percent of such deposits and would continue to rank seventh in the market. It would 

appear that a competitive banking climate 

would continue in the market and that the proposed consolidation would not have any 

material effect on the structure of commercial 

banking.

Under Michigan statutes, each bank may 

branch within 25 miles of its main office within 

Saginaw County or any of the counties contiguous thereto, but no de novo branch may be 

established in any community in which another 

bank is already in operation. Thus, the potential 

for competition to increase via de novo branching is not significant.

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BANK ABSORPTIONS APPROVED BY THE CORPORATION 89

The proposed consolidation of Frankenmuth 

Bank and Farmers Bank would not eliminate any 

significant existing or potential competition between them, nor would it materially affect the 

concentration of banking resources in the local 

market.

Based upon the foregoing, the Board of 

Directors is of the opinion that the proposed 

transaction would not, in any section of the 

country, substantially lessen competition, tend 

to create a monopoly, or in any other manner be 

in restraint of trade.

Financial and Managerial Resources; Future

Prospects. Both banks have satisfactory financial and managerial resources, and the resultant 

bank, with the proposed addition to its capital 

structure, w ould have favorable future 

prospects.

Convenience and Needs o f the Community

to be Served. The proposed consolidation 

would result in some improvement in the services available to the customers of Farmers Bank. 

The resultant bank would have an increased 

lending limit and would provide trust services 

and expertise in specialized lending areas. The 

considerations of convenience and needs of the 

community are consistent with approval of the 

application.

Available information indicates that no 

inconsistencies with the purposes of the Community Reinvestment Act appear to exist.

Based on the foregoing, the Board of Directors has concluded that approval of the application is warranted.

Resources 

(in thousands 

of dollars)

Banking offices 

in operation

Before After

W estern Bank 2 4 6 , 6 1 6 2 6 3 5

Coos Bay, Oregon

to merge with

Crater National Bank 4 8 , 0 7 2 9

Medford

Summary report by Attorney General, 

October 13, 1978

We have reviewed this proposed transaction 

and conclude that it would not have a substantial competitive impact.

Basis for Corporation approval, 

November 8, 1978

Western Bank, Coos Bay, Oregon, an insured 

State nonmember bank with total resources of 

$2 46 ,6 16 ,0 00 and total IPC deposits of

$189,797,000, has applied, pursuant to Section 18(c) and other provisions of the Federal 

Deposit Insurance Act, for the FDIC’s prior consent to merge, under its charter and title, with 

Crater Natonal Bank, Medford, Oregon ("Crater 

Bank” ), with total resources of $48,072,000 

and total IPC deposits of $39,450,000. The 

nine offices of Crater Bank will be established 

as branches of the resultant bank. Incident to 

the transaction, Class A Convertible Preferred 

Stock will be issued, and the FDIC's advance 

consent to the retirement thereof is also sought.

Competition. Based in Coos Bay on the 

southwestern coast of Oregon, Western Bank 

operates 26 offices in 12 of the State's counties. Crater Bank operates all of its nine offices 

within Jackson County in southern Oregon, 

which is regarded as the relevant market in 

which to assess the competitive impact of the 

proposed transaction.

Jackson County (1970 population 94,533) 

has experienced rapid growth in recent years 

with development most evident along a series 

of valleys and centered at the city of Medford 

(1970 population 28,454), which serves as a 

principal commercial, retail, and economic 

center for a wide area. Approximately one-third 

of the county's manufacturing is engaged in the 

wood products industry; however, tourism, 

related recreational pursuits, and specialized 

agricultural crops contribute to a stable 

economic base.

Seven commercial banks operate a total of 

28 offices in this market, including offices of 

the State's three largest commercial banks. 

Crater Bank, which is ranked as the third largest 

commercial bank in this market, holds 12.4 percent of its IPC deposits. This market share is 

significantly smaller than the 72.C-percent 

combined share held by the two Portland-based 

commercial banks that dominate this local 

market as well as other markets in the State. 

Western Bank, whose nearest office is more 

than 40 road-miles from any office of Crater 

Bank and separated by mountainous terrain, is 

not represented in the market. Its merger with 

Crater Bank would have no effect on existing 

competition between the institutions or on the 

structure of the local market.

Oregon State statutes prohibit de novo

branching in communities of less than 50,000 

population that contain existing banking offices. 

Western Bank is therefore precluded from de

novo entry into the city of Medford and most 

other developed areas of Jackson County. 

While some potential de novo branch sites do 

remain. Western Bank is not viewed as likely to 

expend the time and resources necessary to 

make a significant market penetration in light of 

the number of established banking offices in 

Digitized for FRASER 

the developed portions of the county and the

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Federal Reserve Bank of St. Louis
90 FEDERAL DEPOSIT INSURANCE CORPORATION

concentrated nature of the local banking 

market. Crater Bank, which has chosen to confine its operations to Jackson County, is not 

anticipated to expand into geographic areas 

removed from this base to become a major 

competitor of Western Bank in the near future. 

The proposed transaction is thus seen as having no significant effect on potential competition between the proponents.

Western Bank, ranked as Oregon's fifth 

largest commercial bank with 2.2 percent of the 

State's total commerciai bank deposits, would 

acquire only an additional 0.4 percent of such 

funds as a consequence of the proposed transaction. This modest increase in share of State 

deposits would have little material effect on the 

concentration of banking resources in light of 

the substantially larger shares held by the 

State's two largest commercial banks, which 

aggregately hold 55.3 percent of Oregon's 

commercial bank deposits.

Based on the foregoing, the Board of Directors is of the opinion that the proposed transaction would not, in any section of the country, 

substantially lessen competition, tend to create 

a monopoly, or in any other manner be in 

restraint of trade.

Financial and Managerial Resources; Future

Prospects. The financial and managerial 

resources of both proponents are regarded as 

satisfactory. With the proposed additions to the 

resultant bank's capital structure, its future 

prospects appear favorable.

Convenience and Needs of the Community

to he Served. The resultant bank will offer more 

, ensive commercial banking services than are 

f sently available at Crater Bank. These serv- 

; are available at local offices of Oregon's 

* ?.e largest banks, but the proposed merger 

,-uld bring another source for such services to 

ir e local market. The considerations of convenience and needs of the community to be 

served are consistent with approval of the 

application.

Available information indicates that no 

inconsistencies with the purposes of the Community Reinvestment Act appear to exist.

Based on the foregoing, the Board of Directors has concluded that approval of the application is warranted.

Resources 

(in thousands 

of dollars)

Banking offices 

in operation

Before After

The W est Pensacola 

Bank

Pensacola, Florida 

(change title to The 

West Florida Bank)

37,883 2 4

to merge with

The Bank of W est

Florida

Pensacola

13,797 2

Summary report by Attorney General, 

August 30, 1 978

Both Applicant and Bank operate in the Pensacola SMSA, which consists of Escambia and 

Santa Rosa Counties. Bank's home office is 

located 8.7 miles north of Applicant's home 

office; Applicant's branch office is 3.5 miles 

east of the home office of Bank. However, 

numerous other banking institutions operate in 

the area served by Bank and Applicant. Applicant ranks sixth of 20 banks in the SMSA, controlling 6.85 percent of total deposits. Bank 

ranks 1 5th in the SMSA, controlling 2.1 8 percent of total deposits. In Escambia County 

Applicant ranks 6th with 8.2 percent of total 

deposits and Bank ranks 11 th with 2.60 percent of total deposits of 1 6 banks in the county. 

The resulting bank would rank 5th with 9.04 

percent of total deposits in the SMSA and 5th 

with 10.7 percent of total deposits in the countyIt thus appears that the two institutions compete directly in both Escambia County and the 

Pensacola SMSA and that the proposed merger 

would eliminate some existing competition. In 

view of the size of the institutions, their relative 

market shares, and the presence of alternative 

banking institutions, we conclude that this 

merger would have a slightly adverse effect on 

competition.

Basis for Corporation approval, 

November 1 7, 1978

The W est Pensacola Bank, Pensacola, 

Florida ("West Pensacola''), an insured State 

nonmember bank with total resources of 

$37,88 3,00 0 and total IPC deposits of 

$27,100,000, has applied, pursuant to Section 

18(c) and other provisions of the Federal 

Deposit Insurance Act, for the Corporation's 

prior consent to merge, under its charter, with 

The Bank of West Florida, Pensacola, Florida 

("West Florida''), an insured State nonmember 

bank with total resources of $13,797,000 and 

total IPC deposits of $11,186,000. Incident to

Digitized for FRASER 

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Federal Reserve Bank of St. Louis
the - ’O’" *'•-* '• ~ c . ' - -*

of West honda '*o d ' ^'s^pf a*,

branches of th e re-«J? r,t or- ^ «.;o w ' m ,.-

commence operation *vith f^ut of* ces and w th 

the title "The West Flor da ,

Competition, The proponents are located in 

Escambia County, the westernmost county in 

the Florida panhandle. West Pensacola operates 

its head office near downtown Pensacola 

(1970 population 59,507), the county seat, 

and its only branch approximately 9 miles to the 

north. West Florida's main office is located 

approximately 9 miles northwest of downtown 

Pensacola and its only branch is located 16 

miles north of the main office in the town of 

Molena, Florida In addition to the Pensacola 

Naval Air Station and support facilities which 

are the principal contributors to the local 

economy, a number of manufacturing plants 

are important to the economy of Escambia 

County (1970 population 205,334), as are 

commercial and sport fishing and shipping. The 

county experienced a population increase of

1 8.1 percent in the period 1 960 to 1 970.

Of the 13 commercial banks operating 25 

banking offices in Escambia County, West Pensacola and West Florida are ranked sixth and 

ninth by deposit size, holding 8.1 percent and 

2.8 percent of the county's total deposits, 

respectively. The resultant bank would hold

10.9 percent of such deposits, making it the 

fifth largest bank in the county. It would appear 

that the structure of commercial banking in 

Escambia County would not be significantly 

affected by the proposed transaction.*

While the proponents' nearest offices are 

located less than 4 miles apart in the unincorporated Ensley portion of the county, and the 

proponents' head offices are only 9 miles distant, actual direct competition between the two 

institutions appears to be somewhat limited. 

West Pensacola, established in 1950, has 

grown into a commercially oriented institution 

centered near the downtown business district 

of Pensacola, while West Florida, established in 

1967, has chosen to operate principally as a 

consumer-oriented bank serving outlying portions of the county. In light of the proponents' 

differing customer bases and the presence of

*!n August 1977, Mr. James H. Baroco, principal 

stockholder of West Pensacola, began purchasing and 

now has effective stock control of West Florida. Since the 

current affiliation of the two banks has not heretofore 

been subject to regulatory scrutiny, the affiliation is of no 

persuasive value in determining, for purposes of the Bank 

Merger Act, what competitive impact if any, the proposed 

transaction may have. Therefore, in accordance with past 

agency practice, the Board of Directors has ignored the 

affiliation in its assessment of the proposal.

v . • r * d-t* consumma-

- } ■ i i * r(c r>,ofG'-'Cd ‘ rvisechon is viewed as 

" r C3i»t r/jverse .rnpact on existing

^ n r e t ^ n ^

Under f\or:o.z statutes, banks headquartered 

in Escambia County may branch de novo and 

merge only within the confines of the county. 

Each operating bank may establish two 

branches per calendar year, in addition to those 

acquired via merger The impact of the proposed transaction on the potential for future 

competition is regarded as nominal.

Based on the foregoing, the Board of Directors is of the opinion that the proposed transaction would not, in any section of the country, 

substantially lessen competition, tend to create 

a monopoly, or in any other manner be in 

restraint of trade.

Financial and Managerial Resources; Future

Prospects. The considerations relating to financial and managerial resources of each institution 

have been satisfactorily resolved and the resultant bank is anticipated to have favorable future 

prospects.

Convenience and Needs of the Community

to be Served. The proposed merger would 

result in no substantial change in the services 

now available to customers of either bank. The 

considerations of convenience and needs of the 

community are consistent with approval of the 

application.

Available information indicates that no 

inconsistencies with the purposes of the Community Reinvestment Act appear to exist.

Based on the foregoing, the Board of Directors has concluded that approval of the application is warranted.

Resources 

(in thousands

Banking offices 

in operation

of dollars) Before After

Peoples Bank of 

Hawk Point 

Hawk Point, Missouri 

(change title to Peoples 

Bank of Lincoln County)

14,218 1 2

to merge with

Citizens Bank of 

Troy

Troy

5,340 2

Summary report by Attorney General, 

August 8, 1 978

We have reviewed this proposed transaction 

and conclude that it would not have a significant adverse effect upon competition.

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Federal Reserve Bank of St. Louis
92 FEDERAL DEPOSIT INSURANCE CORPORATION

Basis for Corporation approval 

November 1 7.. 1 978

Pursuant to Section 18(c) and other provisions of the Federal Deposit Insurance Act, an 

application has been filed ;:ehalf of Peoples 

Bank of Hawk Point,. Haw< Point, Missouri 

("Peoples Bank"), an insured State nonmember 

bank with total resources of $1 4,21 8,000 and 

total IPC deposits of $1 2,496,000, for the Corporation's prior consent to merge, under its 

charter, with Citizens Bank of Troy, Troy, 

Missouri ("Citizens Bank"), also an insured 

State nonmember bank, with total resources of 

$ 5 ,3 4 0 ,0 0 0 and total IPC deposits of 

$3,751,000. Peoples Bank seeks to redesignate its main office location to the present site 

of the main office of Citizens Bank and to 

establish the sole office of Peoples Bank as a 

branch of the resultant bank, which would bear 

the title "Peoples Bank of Lincoln County." 

Citizens Bank's present branch (facility) at 

Moscow Mills will be discontinued. Incident to 

the transaction, the proponents have proposed 

raising $600,000 as an addition to the resultant 

bank's capital structure. Such capital funds 

would include $4 00,000 in subordinated 

capital notes and the Corporation's advance 

consent to their mandatory retirement provision 

is also sought.

Competition. Peoples Bank operates its sole 

office in Hawk Point (1 970 population 354) in 

the western part of Lincoln County, Missouri. 

Citizens Bank is headquartered in the city of 

Troy (1 970 population 2,538), located in the 

south-central portion of Lincoln County approximately 8 road-miles east of Hawk Point, and 

operates a branch (facility) at Moscow Mills 

(1970 population 399), located approximately 

6 road-miles southeast of Troy. Lincoln County 

(1970 population 18,041) is located in eastcentral Missouri approximately 40 miles northwest of the St. Louis metropolitan area. While 

an increasing number of the county's residents 

commute daily for employment to the St. Louis 

area, the county is still primarily rural with 

agricultural pursuits providing the major source 

of income. The completion of Interstate Route 

70 (a major east-west artery) approximately 5 

miles below the county's boundary has served 

to accelerate the area's residential development. While the 1 970 median household buying level for Lincoln County was lower than 

comparable figures for the State and St. Louis 

metropolitan area, its geographic location 

adjoining rapidiy growing St. Charles County 

and its stable economic base indicate that the 

area has favorable economic prospects.

The relevant market in which to assess the 

competitive impact of the proposed transaction 

is regarded as the area within approximately 1 5

miles of the city of Troy, which includes most 

of Lincoln County and adjoining portions of 

Warren and Si Cha-les Counties. There are 11 

commercial h.nrM< operating a total of 13 

offices in trvs rna» ket with Peoples Bank holding

11 2 ofcrcem ( ■ me area's IPC deposits and 

ranking a» the third largest bank by such a 

measure. Citizens Bank, with only 3.4 percent 

of the market's IPC deposits, is the smallest 

commercial bank in the market and, based in 

Troy, faces intense competition from the substantially larger Boatmen's Bank of Troy, an 

affiliate of one of Missouri's largest banking 

organizations. The resultant bank wili hold 14.6 

percent of the market's IPC deposits and 

remain as the area's third largest commercial 

bank. The proposed transaction would, 

therefore, have little effect on the structure of 

commercial banking in the relevant market.

The proponents' head offices are located 

approximately 8 road-miles apart and, to some 

extent, must be considered to be in direct competition. Citizens Bank, however, in its 5 years 

of operation, has failed to achieve any significant market penetration and has not developed 

into a major competitive factor in the county. In 

addition, the market already contains a number 

of other, larger commercial banks, and the 

elimination of this existing competition is not 

viewed as having any significant adverse effect 

upon competition.

Missouri statutes severely restrict de novo

branch activity with the proponents limited to 

the operation of only one branch (facility) in 

towns within 1 5 miles of the head office with a 

population of not more than 1,550 that contain 

no existing banking services. Both proponents 

are, thus, effectively barred from any such de

novo expansion activity. The proposed transaction would have little effect on the potential for 

future competition between the proponents.

Under the circumstances, the Board of Directors is of the opinion that the proposed transaction would not, in any section of the country, 

substantially lessen competition, tend to create 

a monopoly, or in any other manner be in 

restraint of trade.

Financial and Managerial Resources; Future

Prospects. The factors relating to financial and 

managerial resources have been satisfactorily 

resolved. The resultant bank, with the proposed 

additions to its capital structure, is anticipated 

to have favorable future prospects.

Convenience and Needs of the Community

to be Served. As a direct result of the proposal, 

the Moscow Mills branch (facility) will be discontinued. This office was opened in February 

1975 and has failed to develop a sufficient 

customer base to justify economically its continued operation. The closing of the Moscow

Digitized for FRASER 

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Federal Reserve Bank of St. Louis
- ' > r fX-MS A r ^ ’O. P ' - v ^ r ». s" ~,. *4“ ; r 93

Mills office is expecie~ to h<Ht# * file materia! 

impact on the convenience ar 3 eds of the 

community.

The proposed merger would result in no significant change in the level or pricing of commercial banking services. The considerations of 

convenience and needs of the community are 

consistent with approval of the applications.

Available information indicates that no 

inconsistencies with the purposes of the Community Reinvestment Act appear to exist.

Based on the foregoing, the Board of Directors has concluded that approval of the applications is warranted.

Resources 

(in thousands

of dollars)

Banking offices 

in operation

Before After

Farmers and Merchants 

Bank and Trust

of W atertown 

Watertown, South

Dakota

51,740 2 4

to purchase the asse ts and assume the deposit liabilities o f

First Security Bank 

Morristown

7,232 2

Summary report by Attorney General, 

June 8, 1 978

We have reviewed this proposed transaction 

and conclude that it would not have a substantial competitive impact.

Basis for Corporation approval, 

November 17,. 1978

Farmers and Merchants Bank and Trust of

Watertown, Watertown, South Dakota ("Farmers"), an insured State nonmember bank with 

total resources of $51,740,000 and total IPC 

deposits of $41,380,000, has applied, pursuant to Section 18(c) and other provisions of 

the Federal Deposit Insurance Act, for the Corporation's prio' cogent p,„r- » ibc csse^s 

of and assume ihe iidu In / k‘L ie

in First Security M.kp^ * S. iV

Dakota ("Secu^ ‘t* 3 vne ‘ " 

member ban!, w t i t ' t j. rso, " ^ 

$ 7 ,2 3 2 ,0 0 0 a m ^ . f

$5,828,000, and to ejr'.-b'Ji-’-. the *wo i f f»o^s if 

Security as brFPCii^s ** + r\ r<^<- Apn* :ftiOp 

has also beer T-'de S900 OuO in

capital notes as d e d ito r -! i -ar f:l sir. r 

ture of the rest |t?ni frank u c : ck > ^rctsent to retire said notes,.

Competition, Farmers is the 12th largest 

banking organization in the State of South

Dakota it c u rt'-t’’ operates two offices, both

in the e*c+em portion of the State, and has 

approval to open an additional branch, also in 

this area. The two offices of Security are 

located in Corson County, in the northwestern 

portion of the State.

This proposal would have its greatest impact 

on the market area of Security. This area, predominantly agricultural, is very sparsely populated, with only a limited network of roads. 

There are no other banks in the relevant market 

area and the nearest commercial banking office 

is located in Lemmon, South Dakota, approximately 25 miles west of Security's main office. 

The main offices of the proponents are separated by approximately 270 miles and the 

closest branches are approximately 220 miles 

apart. There is, therefore, no overlap in respective market areas, This proposal would not 

eliminate any existing competition between the 

two banks or have any significant effect on the 

structure of commercial banking in the market. 

In view of the see of the two proponents, consummation ‘ 4 transaction would have no 

materia! eff* f o ' fc~«e structure of commercial 

banking in the Slate.

The probability of de novo branching by 

Farmers into the Morristown-Mclntosh area is 

limited by home office protection provisions of 

the South Dakota banking law, as well as by the 

sparse population of the area. Conversely, while 

South Dakota statutes would permit Security to 

branch into Farmers' market area, it does not 

appear to possess the resources necessary to 

m ount any m eaningful expansion into distant 

areas. The transaction would therefore have no 

significant effect on the potential for increased 

future competition between the proponents.

Under the circumstances, the Board of Directors ic o* the opinion that the proposed transaction ' oi, in any section of the country, 

SLbSt^ntsaf i >essen competition, tend to create 

a mcnop^v or in any other manner be in 

restraint tiade.

Financial and Managerial Resources; Future

Prospects. The financial and managerial 

resources of the proponents and of the resuita rs bank £ e *ega*-ded as satisfactory. The resi i hrnk fin the proposed addition to its 

Cc3’i sl “ t'-c iu 'e -.'voufd appear to have favorat-!c f r ,re o -jso-cts

'■ «■>•/ Needs of the Community

to he Served -'he. omnrmnities now served by 

Sec.. i*y enjoy a higher legal lending limit

d id trt.st -s * ic to be offered by the resultant 

bank The /%< »n„vcerations of convenience and 

leoi’. »*f tr>8 ccr*’ -nity appear consistent with 

nx '-‘"t ''j che transaction.

Available information indicates that no 

inconsistencies with the purposes of the Community Reinvestment Act appear to exist

Digitized for FRASER 

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Federal Reserve Bank of St. Louis
Based on the for^u^ r*’-. ; . 

tors has concluded th?i <.v7'T*val o' *he .-i; . 

tlon is warranted.

Fct'u rcr* ’ ' ( ipf s, ">'!

c 1 r | r }tcr

La Jolla Bank & r> ' i *■

Trust Company i ! ;

La Jolla, California ! ! ! 

i I ;

to merge with

1 : : 

! , ! W est Coast National 1 %3 • ? 0 0 * 0 j

Bank : ! I

Oceanside ’ i

Summary report by /' TtO.-^cy General 

October 13, I 97o

We have reviewed this piopooed transaction 

and conclude that it would not have a substantia! competitive impact.

Basis for Corporation approval, 

November 3Gf 1978

La Jolla Bank & Trust Comps i L i iol!a, 

California ("Applicant” ), an ir.?»u.ed 3 .ale i;jh - 

rnember bank w ith tota! re:-c;ir*..es of 

$ 5 1,94 4,00 0 and total IPC aer cs>:.3 of 

$43,382,000, has applied, pursuant tc Cc-ction 

18(c) and other provisions of the f eaerai 

Deposit Insurance Act, for the Corporation's 

prior consent to merge, under its charter and 

title, with West Coast National Bank, Oceanside, California ("WCNB” ), with total resources 

of $31,003,000 ar.d to+Gi :PC deposits of 

$23,640,000. The five offices o? W CNB would 

be established v-rsnchei c.f tr<e resultant 

bank.

Competition. Applicant oper?i£. to neac 

office in La Joiia, in the nort’ie n -st J o'*t,o»'

of the city of San Diego «po*cx.r. -ueir u m vo 

north^e^t c4" ^re v*a' v “ ' j. - r ' c. '\ ^

r * on , > <; ~ *- = jr ’j re*j

j ^ "c , ~ n e ’ c e r^ e in a n c f o m 

' «. " . ’ * r r !is ^vo^csdo

'\ v -» a ft ‘ , y _ r J !3 i

c\ I ~ ^ ^ lfc, , ~r.^ r»l C J 53c of

.n * ' r^. c \ * m:* "6 : , i ' r? r -j a r , tn o f

( - *■ , is . - , ' t la n n e

h . - f vf^ c j 0ij n c c ' ’ 3«» a n a jo r

e a • .'■»rt o» . > ’ ca ^ ?nd

T< -"I „ i ' i o r-r ) ~ 'i r 'i^r r j ' ' t f* r : . r - 

. - r i >

- ^ ’ it '■'"►e r romrrcrcia* DnPks

i ir o *r t " r ^ 3 r 3 vVCNB w ith s 3 0-

* .ic* ■ c » v* ?i f -'i ” r se,

■ av • ^ »- ' '< ° a

;i . , _ > ~ s.l'^r? tal.y

s \ !” , ' " ^ ^ o ! A "-^ ', ca

ri" k ; : c..j ' »'<,> ^s^o^«3>:or t id

b 1 - , » t " ^"c<. f : r ,,e>-i tv.'O

!r ?"« j t or**' wn. r ^{e t h j s largest and

i' c i T . i o - t n ! <= rompervveiv,

r +e r j "3>i,ei v*'« h ■t*o e c> er { t'- 3- k p 'j b 2 D c 'ce n * o f

i = . j Cj ^ rr v *pe ~"a;ev> <de

‘,*rl ti n c x r\ r i % ^ ° l . 3 c . jr ^ r x e d »n

* sv , a1 ,, - rs.cL Vi ’,mQ niP', c

An s r« Pr 's 4 i ’ r> v feo j vs ^ c -'-o ^ e 

n ' ;.v i *rjn-,sL,.on .s

f v - _ ^ r c<h L^^'c-^nt f- . n the

^ z ^ t ~ nq ut,re

] h,' n*'')T^ . s c i p t-ooahzed

w. " ~fc»' 'cores' iOualbd

' »m* ■/*' ^ c 2 * > jD ^ . a sc>- j c :o n -

u<;. ^ wL’ t^, ..f Iw.TiuSr C ip.t3rv ri j ra>,^ <q (/'-sCf~ i » s, thev are not 

Jen l,e g i r rert ^c,t petition. Califor- 

•’Jc f ^to**-^vsc:c novo branching

acuvit^ a j * o<-. w* t- o j the potential to

exp&f:? d • > .c •* e .«ti' lie other's servA, C» '.d * r " o - £P ' - JVV d n “ Ov\ S

rr^c^o*». as of -t .r ' r c *p-' io. ‘j» t.i t]\ s 

tirp ~c^ -2* h h V ' h' w * s ; ' * * r ' r f ie 

*b irer^v'-^.s ' i — o'!- T ^ i l^ c “v m t^e

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Federal Reserve Bank of St. Louis
BANK ABSORPTIONS AFT- / { THE i' j RHOsatisfactorily resolved, W ith the proposed 

$1,500,000 addition to the resultant bank's 

capital structure, its future prospects appear 

favorable.

Convenience and Needs of the Community

to be Served. The proposed transaction would 

result in no substantial change in either the level 

or pricing of commercial banking services in the 

community now served by WCNB. While the resultant bank will offer a higher legal iending limit 

and use of Applicant's modest-sized trust 

department at offices of WCNB, these services 

are available in the market at larger institutions. 

The considerations of convenience and needs 

of the community, however, are consistent with 

approval of the transaction.

Available information indicates that no 

inconsistencies with the purposes of the Community Reinvestment Act appear to exist

Based on the foregoing, the Board of Directors has concluded that approval of the application is warranted.

Resources 

(in thousands 

of dollars)

Banking offices 

in operation

Before After

Bank of Sonoma 

County

Santa Rosa, California

71,434 4 5

to purchase the assets and assume the deposit liabilities of

Healdsburg Branch — 

The First National 

Bank of Cloverdaie

Cloverdaie

7,345*

!

1

*IPC deposits of office to be transferred by The First 

National Bank of CSoverdale. Assets not available by 

office.

Summary report by Attorney General,

July 31, 1978

The banks involved are both wholly owned 

subsidiaries of the same bank holding company. 

As such, the proposed transaction is essentially 

a corporate reorganization and would have no

effect on competition.

Basis for Corporation approval, 

November 30, 1 978

Bank of Sonoma County, Santa Rosa, 

California, an insured State nonmember bank 

with total resources of $71,434,000 and total

IPC deposit > 239,000, has applied, pursuant to Sc *10.1 s 6 c) and other provisions of 

the Federal deposit insurance Act, for the Corporation's prior consent to purchase the assets 

of and assume the liability to pay deposits made 

in the Healdsburg branch ($7,327,000 as of 

March 31, 1 978) of The First National Bank of 

Cloverdaie, CSoverdale, California, with total 

resources of $3 1,67 8,00 0 and total IPC 

deposits of $26,837,000. The Healdsburg 

branch would be established as a branch of 

Bank of Sonoma County.

Competition. The proponents have been 

wholly owned (except for directors' qualifying 

shares) subsidiaries of independent Bankshares 

Corporation, San Rafael, California, a bank 

holding company, since 1 972. The proposed 

transaction, essentially a restructuring of certain aspects of each bank, would result in a 

branch of one subsidiary being acquired by 

another subsidiary. The subsequent operation 

of the branch at the same location would result 

in no change in concentration of banking 

resources or in the structure of commercial 

banking in any relevant area.

In view of the foregoing, the Board of Directors is of the opinion that the proposed merger 

would not, in any section of the country, substantially lessen competition, tend to create a 

monopoly, or in any other manner be in restraint 

of trade.

Financial and Managerial Resources; Future

Prospects. The proponents' financial and 

managerial resources appear to be adequate for 

the purposes of this proposal. The financial and 

managerial resources of the resultant bank, 

with the contemplated addition to capital, 

would be satisfactory and its future prospects 

appear favorable.

Convenience and Needs of the Community

to be Served. The services to be offered in the 

relevant market by the resultant bank would not 

differ materially from those presently offered 

by each proponent.

Available information indicates that no 

inconsistencies with the purposes of the Community Reinvestment Act appear to exist.

On the basis of the foregoing information, 

the Board of Directors has concluded that 

approval of the application is warranted.

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Federal Reserve Bank of St. Louis
96 FEDERAL DEPOSIT INSURANCE CORPORATION

Resources 

(in thousands 

of dollars)

Banking offices 

in operation

Before After

First American Bank 

of North Palm 

Beach

North Palm Beach, 

Florida

(change title to First 

American Bank of Palm 

Beach County)

80,237 5 8

to merge with

First American Bank 

of Lake W orth, 

National Association

Lake Worth

95,317 3

Summary report by Attorney General, 

August 28, 1978

We have reviewed this proposed transaction 

and conclude that it would not have a substantial competitive impact.

Basis for Corporation approval, 

November 30, 1978

First American Bank of North Palm Beach, 

North Palm Beach, Florida ("PB"), an insured 

State nonmember bank with total resources of 

$ 8 0 ,23 7,00 0 and total IPC deposits of 

$60,240,000, has applied, pursuant to Section 

18(c) and other provisions of the Federal 

Deposit Insurance Act, for the Corporation's 

prior consent to merge with First American 

Bank of Lake Worth, National Association, Lake 

Worth, Florida ("LW ” ), with total resources of 

$ 9 5 ,31 7,00 0 and total IPC deposits of 

$67,146,000. The banks would merge under 

the charter of PB and with the title "First 

American Bank of Palm Beach County." Incident to the merger the 3 existing offices and 

the 1 approved, but unopened office of LW, 

would become branches of the resultant bank, 

increasing the number of its approved offices to 

10.

Competition. PB was organized in 1959, 

and while a number of the original founding 

shareholders continue to own stock in the bank, 

a group of investors headed by Roy W. Talmo 

purchased a substantial interest in the bank in 

1966. Mr. Talmo and his interests control 

approximately 34 percent of the bank's stock 

and he serves as chairman of the board. PB's 

main office is located in North Palm Beach and 

it operates four branches, including one drive-in 

facility, all located within 8 miles of the main 

office. An application for an additional office, to 

be located in Tequesta, Florida (approximately

10 miles north of the main office), recently 

received supervisory approval.

LW was organized in 1956, and control of 

the bank was acquired by Roy W. Talmo and his 

interests through stock purchases in 1965 and 

1973. Mr. Talmo and his interests presently 

control approximately 28 percent of the stock 

and he serves as chairman of the board. LW's 

main office and one branch are located in Lake 

Worth with another branch located approximately 10 miles west of the main office in 

West Palm Beach. An additional branch has 

recently been approved for Pahokee, Florida 

(40 miles northwest of the main office).

Florida banking law prohibits branching outside of a bank's home county. All offices of 

both banks are located in Palm Beach County. 

Their closest offices are separated by only 7 

miles, and while the service areas of the proponents overlap, PB's offices serve mainly the 

northeastern portion of the county and LW's 

offices the central portion. Actual direct competition between the two appears to be somewhat limited. The approved, but unopened 

branch of LW will serve the western portion of 

the county. If the merger is approved, the service area of the resultant bank would cover all 

major population centers in the county. The 

relevant area of impact for this proposal is 

therefore considered to be Palm Beach County.

Palm Beach County, located on the 

southeastern coast of Florida approximately 40 

miles north of Miami, is a rapidly growing area. 

Its 1 970 population was 348,753, representing 

a 52.9-percent increase over the 1960 population of 228,106, and its estimated population 

for 1977 was 485,600. The 1977 median 

effective household buying level for the county 

was $13,801, compared to $12,106 for the 

State. As of June 30, 1978, there were 26 

banking organizations represented in the county, operating 93 banking offices. The proponents ranked 11th and 12th, controlling 3.6 

percent and 3.3 percent of the IPC deposits in 

the county. If the merger is approved the resultant bank would become the fourth largest 

banking organization in the county, holding 6.9 

percent of such deposits. It would appear that 

the structure of commercial banking in Palm 

Beach County would not be significantly 

affected by the proposed transaction.'

*PB and LW have 12 stockholders in common, who control 

47.5 percent and 41.3 percent of the outstanding stock 

of the banks respectively. Since this affiliation between 

the two banks has not heretofore been subject to 

regulatory scrutiny, the affiliation is of no persuasive value 

in determining, for the purposes of the Bank Merger Act, 

what competitive impact, if any, the proposed transaction 

may have. Therefore, in accordance with past agency 

practice, the Board of Directors has ignored the affiliation 

in its assessment of the proposal.

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Federal Reserve Bank of St. Louis
BANK ABSORPTIONS APPROVED BY THE CORPORATION 97

Six of the State's 10 largest holding companies operate in the county. In view of the 

small relative market shares held by the proponents, and the size and number of competing 

banking organizations, there appears to be little 

potential for significant competition to develop 

between the proponents in the near future.

Based on the foregoing, the Board of Directors is of the opinion that the proposed merger 

would not, in any section of the country, substantially lessen competition, tend to create a 

monopoly, or in any other manner be in restraint 

of trade.

Financial and Managerial Resources; Future

Prospects. The considerations relating to financial and managerial resources have been 

satisfactorily resolved, and resultant bank is 

anticipated to have favorable future prospects.

Convenience and Needs o f the Community

to be Served. The services to be offered in the 

relevant market by the resultant bank would not 

differ materially from those presently offered 

by each proponent. The considerations of convenience and needs of the community to be 

served, however, are consistent with approval 

of the application.

Available information indicates that no 

inconsistencies with the purposes of the Community Reinvestment Act appear to exist.

Based on the foregoing, the Board of Directors has concluded that approval of the application is warranted.

Resources

Banking offices 

in operation

of dollars) Before After

Burlington County 

Trust Company

Moorestown, New 

Jersey

181,983 10 14

to merge with

Bank of W est Jersey 

Delran Township 

(P.O. Delran)

46,333 4

Summary report by Attorney General, 

September 13, 1978

The merging banks are both wholly owned 

subsidiaries of the same bank holding company. 

As such, their proposed merger is essentially a 

corporate reorganization and would have no 

effect on competition.

Basis for Corporation approval, 

November 30, 1978

State nonmember bank with total resources of 

$1 81 ,9 83 ,0 00 and total IPC deposits of 

$147,688,000, has applied, pursuant to Section 18(c) and other provisions of the Federal 

Deposit Insurance Act, for the Corporation's 

prior consent to merge with Bank of West 

Jersey, Delran Township (P.O. Delran), New 

Jersey ("Other Bank''), with total resources of 

$ 4 6 ,3 3 3 ,0 0 0 and total IPC deposits of 

$39,399,000. The banks would merge under 

the charter and title of Applicant and the 4 

offices of Other Bank would be established as 

branches of the resultant bank, which would 

commence operations with a total of 14 offices.

Com petition. Essentially a corporate 

reorganization, the proposal would provide a 

means whereby Fidelity Union Bancorporation, 

Newark, New Jersey, the State's fourth largest 

banking organization owning six banking subsidiaries with aggregate total deposits of 

$1,637,875,000 (6.4 percent of New Jersey's 

total deposits), may consolidate its operations 

in Burlington County.' Other Bank has been 

owned by Fidelity Union Bancorporation since 

1971. Applicant was recently acquired (July 

1978) by the parent with the approval of the 

Board of Governors of the Federal Reserve 

System. The proposed merger would not affect 

the structure of commercial banking or the concentration of banking resources within the relevant market.

The Board of Directors is of the opinion that 

the transaction would not, in any section of the 

country, substantially lessen competition, tend 

to create a monopoly, or in any other manner be 

in restraint of trade.

Financial and Managerial Resources; Future

Prospects. The proponents' financial and 

managerial resources are considered adequate 

for the purposes of this proposal, and the future 

prospects of the resultant bank appear favorable.

Convenience and Needs o f the Community

to be Served. The services to be offered in the 

relevant market by the resultant bank would not 

differ materially from those presently offered 

by each proponent. The considerations of convenience and needs of the community are consistent with approval of the transaction.

Available information indicates that no 

inconsistencies with the purposes of the Community Reinvestment Act appear to exist.

On the basis of the foregoing information, 

the Board of Directors has concluded that 

approval of the application is warranted.

Burlington County Trust Company, Moorestown, New Jersey ("Applicant"), an insured

‘ Fidelity Union Bancorporation figures adjusted to include 

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July 1978 acquisition of Applicant.

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Federal Reserve Bank of St. Louis
:.v.; i-'j'.w c':' :xn ? 0'-'V nc^

’ ■ r- "•'■usc’K1: 

i of doHars)

Banking offi.^s

;f: ^0?'ai:ur,

Before Ah

;

Bj~,k of'iCiS 

'; ................\G c^T.C.:

, (ir r cu sa n d s <— --------------- -—

o r: ; ! ? r s) S e h re : £,rter

The Bank 8f Trust i 93,021 

Company of Arlington 

Heights i

Arlington Heights, i 

Illinois i

to purchase the assvts and as- i |

same *h&. d-^G 'i't I!sb illie s o f \ \

IMorth Point State I 29,207 j 

Bank

Arlington Heights

Approved under emergency provisions. No 

report requested from the Attorney General.

Basis for Corrc*"* on ,

December 1 5 5 978

The Bank & Tru~t Company oi Arlington 

Heights, A rlin g to n Heicnts, Lunois an insured 

a.e nonmem^e: bark v». jth total resources o f 

0 2 1 ,000, nas a:f oj'suant to Section 

J v,# of the Federal Oecos«i insurance Act, for 

1 Corporation's consent to purchase the 

assets of and ass. the,* liability to pay 

deposits made m N o rth Point State Bank, 

Ar^igto^ Heights, Illinois, an insured State nonr-v n b e r bank w ith total resources of 

V I’),207,000, Incident to the transaction, the 

o^’ice of North Point State Bank would 

become a facility of The Bank & Trust Company 

of Arlington Heights.

As of December 16, 1 978, North Point 

State Bank had deposits of approximately 

$2 0,80 0/00 0 and operated one office. On 

December 16, 1978, the Federal Deposit 

Insurance Corporation was appointed as 

Receiver of North Point State Bank.

The Board of Directors finds that the 

failure of North Point State Bank requires it 

to act immediately and thus waives publication of notice, dispenses with the solicitation 

of competitive reports from other agencies, 

and authorizes the transaction to be consummated immediately.

Depositor.' Trust !

Company 27,6731 4 8

o fP a p g o r

Fhncor. Paine i

(change title to j

]

Depositors Trust ]

Company

of Eastern Maine) I

to merge w ith

i

The Liberty National 20,771 4

Bank in Ellsworth I

Ellsworth :

Summary report by Attorney General,

September 1 3, 1 978

The merging banks are both wholly owned 

subsidiaries of the same bank holding company. 

As such, their proposed merger is essentially a 

corporate reorganization and would have no 

effect on competition.

Basis for Corporation approval, 

December 20, 1978

Depositors Trust Company of Bangor, 

Bangor, Maine ("Applicant"), an insured State 

non member bank with total resources of 

$27,67 3,00 0 and total IPC deposits of 

$21,743,000, has applied, pursuant to Section 

18(c) and other provisions of the Federal 

Deposit Insurance Act, for the Corporation's 

prior consent to merge with The Liberty 

National Bank in Ellsworth, Ellsworth, Maine 

(“ Other Bank” ), with total resources of 

$20,77 1,00 0 and total IPC deposits of 

$1 7,022,000. These banks would merge under 

the charter of Applicant and with the title 

"Depositors Trust Company of Eastern Maine." 

The four existing offices of Other Bank would 

be established as branches of the resultant 

bank.

Com petition. Essentially a corporate 

reorganization, the proposal would provide a 

means by which Depositors Corporation, 

Augusta, Maine, a bank holding company, may 

consolidate its operations in eastern Maine. The 

proponents have been commonly controlled 

since 1969. The proposed merger would not 

affect the structure of commercial banking or 

the concentration of banking resources within 

the relevant market.

In view of the foregoing, the Board of Directors is of the opinion that the proposed merger 

would not, in any section of the country, substantially lessen competition, tend to create a 

monopoly, or in any other manner be in restraint 

of trade.

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Federal Reserve Bank of St. Louis
BANK ABSCRr mGNS APPPOVS r ORATION

Financial m d MGnage.'ia! Resources, future

Prospects. The proponent?/ financial and 

managerial resources are considered adequate 

for the purposes of this proposal. The financial 

and managerial resources of the resultant bank 

would be satisfactory and its future prospects 

appear favorable.

Convenience and Needs of the Community

to be Served. The services to be offered in the 

relevant market by the resultant bank would not 

differ materially from those presently offered 

by each proponent.

Available information indicates that no 

inconsistencies with the purposes of the Community Reinvestment Act appear to exist 

On the basis of the foregoing information, 

the Board of Directors has concluded that 

approval of the application is warranted.

Resources 

(in thousands 

cf dollars)

Banking offices 

in operation

Before After

Depositors Trust Company of Portland

Portland, Maine 

(change title to Depositors T rust 

Company 

of Southern Maine)

26,476 4 6

to merge with

Springvale National

Bank

Springvale

17,166 2

i

Summary report by Attorney General, 

August 8, 1978

The merging banks are both wholly owned 

subsidiaries of the same bank holding company. 

As such, their proposed merger is essentially a 

corporate reorganization and would have no 

effect on competition.

Basis for Corporation approval, 

December 20, 1978

Depositors Trust Company of Portland, Portland, Maine (“ Applicant” ), an insured State 

nonmember bank with total resources of

$ 2 6,47 3,00 0 and tola! IPC deposits of 

$22,195,000, has applied, pursuant to Section

* 8*c) and other provisions of the Federal 

Deposit Insurance Act, for the Corporation's 

prior consent to merge with Springvale National 

Bank, Sprsngvale, Maine ("Other Bank” ), with 

total resources of $17,166,000 and total IPC 

deposits of $14,892,000. The banks would 

merge under the charter of Applicant and with 

the title "Depositors Trust Company of 

Southern Maine." The two offices of Other 

Bank would become branches of the resultant 

bank, which would commence operations with 

a total of six offices. Additionally, Applicant 

requests the prior approval of the Corporaton 

for the resultant bank to exercise trust powers.

Competition. Essentially a corporate 

reorganization, the proposal would provide a 

means whereby D epositors Corporation, 

Augusta, Maine, the State's second largest 

banking organization owning six banking subsidiaries with aggregate total deposits of 

$358,000,000 (15.0 percent of Maine's total 

deposits), may consolidate its operations in 

southern Maine. Applicant and Other Bank have 

been owned by Depositors Corporation since 

1972 and 1971, respectively, and their proposed merger would not affect the structure of 

commercial banking or the concentration of 

banking resources within the relevant market.

The Board of Directors is of the opinion that 

the transaction would not, in any section of the 

country, substantially lessen competition, tend 

to create a monopoly, or in any other manner be 

in restraint of trade.

Financial and Managerial Resources; Future

Prospects. The proponents' financial and 

managerial resources are considered adequate 

for purposes of this proposal, and the future 

prospects of the resultant bank appear favorable.

Convenience and Needs of the Community

to be Served. The services to be offered in the 

relevant market by the resultant bank would not 

differ materially from those presently offered 

by each proponent. The considerations of convenience and needs of the community are consistent with approval of the transaction.

Available information indicates that no 

inconsistencies with the purposes of the Community Reinvestment Act appear to exist.

On the basis of the foregoing information, 

the Board of Directors has concluded that 

approval of the application is warranted.

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Federal Reserve Bank of St. Louis
100 FEDERAL DEPOSIT INSURANCE CORPORATION

Effective January 1 1977, Fo-'da ''.-rk'nq 

statutes were changed to ai!o^ c o jr.f, 'a ;^ 

branching. !n response to this chanc;? thrj 

following 15 merger applications ~vc;vng 

affiliates of the same holding c o » in

Florida were filed during 1378. Altho-joh ney 

did not involve a "phantom bank," these were 

essentially corporate reorganizations having no 

effect on competition. In each instance, the 

Attorney General's report stated that the proposed transaction would have no effect on 

competition. The Corporation's basis for 

approval in each case stated that ail factors 

required to be considered pertinent to the 

application were favorably resolved.

Southeast Everglades Bank of Fort Lauderdale, Fort Lauderdale, Florida (change title to 

Southeast Bank o f Broward); offices: 1 ; 

resources: 57,113 ($000); to merge with 

Southeast Bank of Broward, Fort Lauderdale; 

offices: 2; resources: 25,229 ($000); and 

Southeast Bank of Deerfield Beach, Deerfieid 

Beach; offices: 2; resources: 91,283 ($000); 

and Southeast Bank o f Galt Ocean Mile, Fort 

Lauderdale; offices: 1; resources: 39,258 

($000); and Southeast Bank of Hollywood

Hills, Hollywood; offices: 1; resources: 72,351 

($000); and Southeast Bank of Miramar,

Miramar; offices: 1; resources: 29,576 ($000). 

Approved: January 1 1.

The Lewis State Bank, Tallahassee, Florida; 

offices: 3; resources: 72,784 ($000); to merge 

with The Gulf National Bank, Tallahassee; 

offices: 1; resources: 13,619 ($000). 

Approved: January 25.

Barnett Bank of Auburndale, Auburndaie, 

Florida (change title to Barnett Bank o f East

Polk County); offices: 1; resources: 9,754

($000); to merge with Barnett Bank of East

Polk County, National Association, W inter 

Haven; offices. 3; resources: 71,209 ($000). 

Approved: February 24.

Landmark Bank o f Brevard, Indialantic, 

Florida; offices: 1; resources: 1 5,680 ($000); 

to merge with Landmark Bank of Melbourne,

National Association, Melbourne; offices: 2; 

resources: 25,059 ($000), Approved: March 

14.

Flagship State Bank o f Jacksonville,

Jacksonville, Florida (change title to Flagship

Bank of Jacksonville)', offices: 1; resources: 

54,447 ($000); to merge with Flagship State

Bank of Arlington, Jacksonville; offices: 1; 

resources: 1 5,037 ($000); and Flagship State

Bank o f North Jacksonville, Jacksonville; 

offices: 1; resources; 7,650 ($000); and Flagship State Bank o f South Jacksonville,

Jacksonville; offices. 1; resources: 4,909 

($000). Approved: March 14,

Barnett Bank of Naples, Naples, Florida;

offices: 2 , resources P0.38/ -$000); to merge 

with Barnett Sank of Cc-iier County, Collier 

County (P.O. Naples/, r-.^o s 1; resources: 

22,218 ($000). *'oe »\iarch 14.

Flagship Bank of San>ora. Sanford, Florida 

(change title to Flagship Bank of Seminole)',

offices: 1; resources: 34,643 ($000); to merge 

with Flagship U.S. Bank of Seminole, Sanford; 

offices: 2; resources: 2 0 ,1 6 3 ($000). 

Approved: May 5.

Hernando State Bank, Brooksville, Florida; 

offices: 5; resources: 46,855 ($000); to merge 

with First American National Bank of Hernando

County, Hernando County (P.O. Spring Hill); 

offices: 1 ; resources: 1 9,5 7 8 ($000). 

Approved: June 26.

Atlantic Bank of Springfield, Jacksonville,. 

Florida (change titse to A tlantic Bank o f

Jacksonville)', offices; 3; resources: 101,920 

($000); to merge with Atlantic Bank of West

J a c k s o n v ille , J a c k s o n v ille ; o ff ices: 2; 

resources: 46,454 ($000); and Atlantic Bank

o f Lake Forest, Jacksonville; offices: 1 ; 

resources: 43,902 ($000); and Atlantic Bank

of South Jacksonville, Jacksonville; offices: 1; 

resources: 32,773 |$000); and Atlantic Bank

o f Normandy, Jacksonville; offices: 1 ; 

resources: 18,948 ($000); and A tlantic

University Bank, Jacksonville; offices: 1; 

resources: 1 3,308 ($000). Approved: August 

11.

Southeast First Bank of Largo, Largo, Florida 

(change title to Southeast Bank of Pinellas);

offices: 1; resources: 88,931 ($000); to merge 

with Southeast National Bank of Dunedin,

Dunedin; o ffices: 1; resources: 6 1 ,8 2 8 

($000); and Southeast Bank of Pinellas Park,

Pinellas Park; offices: 1; resources: 14,239 

($000); and Southeast National Bank of St.

Petersburg, South Pasadena; offices: 1 ; 

resources: 43,261 ($000). Approved: September 6.

Southeast Bank o f Titusville, Titusville,

Florida (change title to Southeast Bank o f Brevard): offices: 1; resources: 34,525 ($000); to 

merge with Southeast First National Bank of

Satellite Beach, Satellite Beach: offices: 1; 

resources: 27.389 ($000); and Southeast

Bank of Melbourne, Melbourne; offices: 1; 

resources: 19,140 ($000); and Southeast

National Bank o f Cocoa, Cocoa; offices: 1; 

resources: 12,288 ($000). Approved: September 6.

The Exchange Bank o f Central Florida,

Haines City, Florida (change title to Exchange

Bank of Polk County)] offices: 2 ; resources: 

1 4 , 9 7 2 ($000); to merge with The Exchange

National Bank of Winter Haven, Winter Haven;

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Federal Reserve Bank of St. Louis
3r’t ' v V - ' 1

o ffices: 3; resources: 111..281 {$ 0 00). 

Approved: October 30.

Pan American Bank of /nverrary, Lauderhill, 

Florida (change title to Pan American Bank of

Broward)] offices: 2; resources: 1 9 ,0 4 3 

($000); to merge with Pan American Bank of

Broward County, NationaiAssociation, Oakland 

Park; offices: 1; resources: 22,840 ($000). 

Approved: November 1 7.

Flagship Bank of Orlando, Orlando, Florida;

O r-’IC-JS, ' . .'i,ui ■’ 63 5 3 , 6 3 c 1C t

wi-vr. F-agrJh'p San* of West Or/antio f *

A s i > o r ’c : ; o ‘ :, O nanJo, offices 1, res 

8,486 ($000). Approved: November 30,

Flagship Peoples Bank o f Tallahassee,

Tallahassee, Florida; offices: 2; resources: 

24,736 ($000); to merge with Flagship

American Bank of Tallahassee, Tallahassee; 

offices: 1; resources: 3,235 ($000). Approved: 

November 30.

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Federal Reserve Bank of St. Louis
, ^ ' : (

aer transactions *<-*■* ,. * * 4 m~ 

a rq . sitiors of banks v ,f n^ci-ng ^

the following approvals n i9 / 3 ,r eprh r? 

stance, the Attorney General's repor ; 4 ^xec; 

that the proposed transaction wouid have re 

effect on competition. The Corporation's basis 

for approval in each case stated that the proposed transaction would not, per se, change the 

competitive structure of banking, nor affect the 

banking services that the (operating) bank has 

provided in the past and that all other factors 

required to be considered pertinent to the 

application were favorably resolved.

B l u e Ridge Trust Company, Hancock, Maryland, in organization; offices: 0 ; resources: 1 20 

($ 0 0 0 ); to merge with and change title to T h e

Peoples National Bank of Hancock, Hancock, 

M aryland; o ffice s: 2 ; resources: 1 0 ,4 9 3 

($000). Approved: February 23.

C a m p Bowie Bank, Fort Worth, Texas, in 

organization; offices: 0; resources: 200 

($000); to merge with and change title to 

R i d g l e n B a n k , Fort Worth, Texas; offices: 1; 

resources: 9 1 ,2 5 2 ($000). Approved: March 

29.

E a s t Freeway S t a t e B a n k , Houston, Texas, in 

organization; offices: 0; resources: 200 

($000); to merge with and change title to F i r s t

S t a t e B a n k a n d T r u s t C o m p a n y o f H o u s t o n ,

Houston, Texas; offices: 2; resources: 65,71 8 

($000). Approved: May 22.

C l i f t o n B a n k , Clifton, Texas; offices: 1; 

resources: 27,526 ($000); to merge with New

C l i f t o n S t a t e B a n k , Clifton, Texas, in organization; offices: 0; resources: 50 ($000). 

Approved: May 23.

T h e B r i g h t o n S t a t e B a n k , B rig hton , 

Michigan; offices: 5; resources: 79,387 

($000); to consolidate with B S B B a n k ,

Brighton, Michigan, in organization; offices: 0; 

resources: 120 ($000). Approved: May 24.

N e w p o r t B a n k , Newport, Michigan, in 

organization; offices: 0; resources: 120 

($000); to consolidate and change title to T h e

N e w p o r t S t a t e B a n k Newport, Michigan; 

offices: 2; resources: 1 2,962 ($000). 

Approved: July 1 2.

W a l n u t H i l l & G r e e n v i l l e B a n k , Dallas, Texas, 

in organization; offices: 0; resources: 200 

($000); to merge with and change title to 

G r e e n v i l l e A v e n u e B a n k & T r u s t , Dallas, Texas; 

offices: 1; resources: 6 6 ,2 2 2 ($000). 

Approved: July 1 2.

F i r s t A l a b a m a B a n k o f C u l l m a n , Cullman, 

Alabama, in organization; offices: 0; resources:

100 ($000); to merge with F i r s t S t a t e B a n k o f

C u l l m a n , A l a b a m a , I n c . , Cullman, Alabama; 

offices: 2; resources: 14,876 ($000). 

Approved: August 24.

B a n k o f E a s t L a u d e r d a l e , Rogersville, 

Alabama, in organization; offices: 0; resources:

; - * • ~ ' ‘ '< r,j'J ^ >■

' x :/ ""i- rr' ilc K < ■ v L r ryif-9/i /, K r . le 

“ '.v'r'v.c-j ~ 2 rer 3 u r^ ' lu 338

$ 0 0 0 ’. Approved: August 29.

Columbus Bank and Trust Company, Columbus, Georgia; offices: esources: 21 2,031 

($ 00 0); to merge with • c ^ S e c o n d M o r t g a g e

C o m p a n y , Columbus, v °or<j<a, in organization; 

offices: 0 ; resources: . ,*.42 ‘,$000). Approved: 

August 29.

Commercial Bank & Trust Company, Griffin, 

Georgia; offices: 4; resources: 93,103 ($000); 

to merge w ith CBT-interim,. Inc., Griffin, 

Georgia, in organization; offices: 0; resources: 

1 ($000). Approved: September 1 3.

Lewisville State B a n k , Lewisville, Texas; 

offices: 1; resources: 33,1 1 8 ($000); to merge 

with A/eiv Lewisville State B a n k , Lewisville, 

Texas, in organization; offices: 0; resources: 

200 ($000). Approved: October 1 2.

N e w B a n k o f F o r t W o r t h , Fort Worth, Texas, 

in organization; offices: 0; resources: 200 

($000); to merge with and change title to B a n k

o f F o r t W o r t h , Fort Worth, Texas; offices: 1; 

resources: 100,31 8 ($000). Approved: October 1 6.

F . S . B , C. S t a t e B a n k , Union Township (P.O. 

Morristown), Ohio, in organization: offices: 0 ; 

resources: 313 ($000); to merge with and 

change title to T h e Eastern O h i o B a n k , Union 

Township {P.O. Morristown), Ohio; offices: 1 ; 

resources: 4,696 ($000). Approved: October 31.

A l l i e d C h a m p i o n s B a n k , Houston, Texas, in 

organization; offices: 0; resources: 100 

($000); to merge with C h a m p i o n s B a n k ,

Houston, Texas; offices: 1; resources: 58,914 

($000). Approved: November 20.

V B S t a t e B a n k , Hartford, Michigan, in 

organization; offices: 0; resources: 120 

($000); to merge with and change title to V a n

B u r e n S t a t e B a n k , Hartford, Michigan; offices: 

2; resources: 21,851 ($000). Approved: 

November 28.

9 0 0 C o n g r e s s S t a t e B a n k , Austin, Texas, in 

organization; offices: 0; resources: 200 

($000); to merge with and change title to T e x a s

S t a t e B a n k , Austin, Texas; offices: 1 ; 

resources: 10 4 ,0 3 8 ($000). Approved: 

November 29.

M a i n B a n k o f H o u s t o n , Houston, Texas; 

offices: 1; resources: 68,430 ($000); to merge 

with N e w M a i n B a n k o f H o u s t o n , Houston, 

Texas, in organization; offices: 0; resources: 

211 ($000). Approved: November 29.

T h e H a r r i s o n D e p o s i t B a n k a n d T r u s t C o m ­

p a n y , Cynthiana, Kentucky; offices: 1 ; 

resources: 1 3,633 ($000); to merge with H a r ­

r i s o n S t a t e B a n k C o m p a n y , Cynthiana, Kentucky, in organization; offices: 0; resources: 0. 

Approved: November 30.

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Federal Reserve Bank of St. Louis
BANK ABSORPTIONS DENIED BY THE CORPORATION

Resources 

(in thousands 

of dollars)

Banking offices 

in operation

Before After

Franklin Bank and 

Trust Company 

Franklin, Indiana

69,671 5 8

to merge w ith

The Edinburg State 

Bank

Edinburg

18,674

i

3

Summary report by Attorney General, 

March 20, 1978

All of the proponents' offices are located in 

Johnson County. Their closest offices, Applicant's main office in Franklin (population 

11,477} and Bank's branch office in Franklin, 

are about 2 miles apart. Applicant's Franklin 

branch office is about 4 miles from Bank's 

Franklin branch. The only other bank in Franklin 

has three offices. In addition, Applicant's 

Whiteland branch office is located about 2 

miles from Bank's New Whiteland branch. 

Bank's main office is located about 12 miles 

from Applicant's nearest branch. It thus 

appears that the proposed acquisition would 

eliminate a significant amount of existing direct 

competition.

Selection of an appropriate geographic 

market within which to assess the effect of the 

proposed merger on concentration in commercial banking is difficult because of the proximity 

to Johnson County of the Indianapolis suburbs 

to the north and Columbus to the south. Data 

presently available to the department is insufficient to permit a precise calculation of a relevant geographic market. We note, however, 

that there are 5 banking institutions, accounting 

for a total of 21 offices, in Johnson County. As 

of June 30, 1 977, Applicant had approximately 

26 percent of the total deposits held by commercial banks in the county, and Bank had 7 

percent. The largest bank in the county, 

National Bank of Greenwood, had 33 percent of 

such deposits; the other two banks accounted 

for 25 percent and 8 percent. If the proposed 

merger is consummated, the resulting bank 

would have about 33 percent of the total commercial bank deposits in the county, and the 

three-firm concentration ratio in the county 

would increase from approximately 84 percent 

to 91 percent.

Basis for Corporation denial,

May 19, 1978

Franklin Bank and Trust Company, Franklin, 

Indiana ("Applicant” ), an insured State nonmember bank w ith total resources of 

$69,67 1,00 0 and total IPC deposits of 

$52,390,000, has applied, pursuant to Section 

18(c) and other provisions of the Federal 

Deposit insurance Act, for the FDIC's consent 

to merge, under its charter and title, with The 

Edinburg State Bank, Edinburg, Indiana ("State 

Bank"), an insured State nonmember bank with 

total resources of $18,674,000 and total IPC 

deposits of $1 2,593,000. Incident to the transaction, Applicant would establish the three 

offices of State Bank as branches of the resultant bank, increasing to eight the number of 

offices operated. Consent to issue $2,000,000 

in subordinated capital notes as an addition to 

the bank's capital structure and advance consent to their mandatory retirement is also 

sought.

Competition. Both proponents are headquartered in Johnson County, which has a primarily 

rural economy and is located in south-central 

Indiana (1970 population 61,138). The city of 

Franklin (1970 population 11,477), which is 

located near the geographic center of Johnson 

County, serves as the county seat and as a principal commercial center. Applicant operates its 

head office and a branch in the city of Franklin 

and one branch each in Whiteland (5 road-miles 

north), Greenwood (10 road-miles north), and 

Ninevah (12 road-miles south). State Bank, 

headquartered in Edinburg (1970 population 

4,456), operates branches at Franklin (10 roadmiles northwest) and at New Whiteland (16 

road-miles northwest). Due to its head office 

location in the extreme southeastern corner of 

Johnson County, State Bank is seen as competing in a market that includes much of Johnson 

County and adjoining portions of Shelby and 

Bartholomew Counties.

If the transaction were approved, the resultant bank would be competing in an area which 

would include all of Johnson County and 

adjoining portions of Shelby and Bartholomew 

Counties, where 8 commercial banks operate a 

total of 37 offices. In share of total deposits 

held, Applicant and State Bank rank as the 

market's third and seventh largest banks, 

respectively. The resultant bank would hold 

1 7.7 percent of these deposits and rank as the 

third largest of the banks. This would reflect an 

increase in the concentration of deposits, with 

the three largest banks holding 69.1 percent.

Johnson County, which is the legal branching and merging area for both banks involved in 

this proposal, contains 5 commercial banks 

operating 22 offices. Subsequent to the transaction, the resultant bank would operate eight 

of these offices and hold 33.0 percent of the 

county's commercial bank deposits, making it

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Federal Reserve Bank of St. Louis
104 FEDERAL DEPOSIT INSURANCE CORPORATION

the second largest institution. This would 

increase the level of concentration of commercial bank deposits with the two largest banks 

holding 66.4 percent of the county's deposits 

and the three largest holding 91.6 percent of 

the deposits.

The consummation of this transaction would 

preclude future competition between the proponents in a number of areas in Johnson County. As both institutions have demonstrated their 

willingness and ability to establish de novo

branches in portions of the county removed 

from their headquarters location, there is no 

evidence to suggest that, in the absence of this 

proposal, additional de novo expansion activity 

would not be conducted by either or both 

institutions. The consummation of this merger 

would forever foreclose this potential for 

increased competition.

The proposed transaction, if consummated, 

would (1) eliminate significant existing competition between the proponents, (2) increase substantially the deposit concentration in both the 

legal branching area and the relevant market, 

(3) reduce the number of banking alternatives 

available to residents of the market area, and (4) 

eliminate the potential for increased future 

competition between the two banks. On the 

basis of the foregoing, and in consideration of 

the standards established by the Supreme 

Court in cases involving mergers of banks 

which compete in the same local market, the 

Board of Directors is of the opinion that the 

proposed merger would "substantially lessen 

competition" within the relevant area.

Financial and Managerial Resources; Future

Prospects. The financial and managerial 

resources of the proponents are considered 

satisfactory, and each has favorable future 

prospects as an independent institution.

Convenience and Needs o f the Community

to be Served. There is little evidence to suggest 

that, subsequent to the transaction, any significant change in the type of banking services 

would result. No new services would be offered 

to the community. Inasmuch as the proposed 

transaction would have a substantial anticompetitive impact, this effect does not appear to 

be outweighed by other considerations of public interest.

The Board of Directors, accordingly, believes 

that the application should be and it hereby is, 

denied.

Statement upon reconsideration, 

August 11,1978

On May 19, 1978, Franklin Bank and Trust 

Company, Franklin, Indiana ("Applicant"), an 

insured State nonmember bank, was denied the 

Corporation's prior approval to merge with The

Edinburg State Bank, Edinburg, Indiana ("State 

Bank"), an insured State nonmember bank. The 

proponents subsequently petitioned the Corporation to reconsider its denial. The FDIC 

Board of Directors, having reconsidered its earlier decision, affirms its denial with the following statement.

The Board of Directors concluded in its 

original decision that the proposed merger, if 

consummated, would (1) eliminate significant 

existing competition between the proponents, 

(2) increase substantially the deposit concentration in both the legal branching area and 

the relevant market, (3) reduce the number of 

banking alternatives available to residents of the 

market area, and (4) eliminate the potential for 

increased future competition between the two 

applicant banks. On the basis of the foregoing, 

the Board of Directors was of the opinion that 

the proposed merger would "substantially 

lessen competition” within the relevant banking 

market.

In seeking reconsideration of the Corporation's previous denial, the proponents have presented a number of facts, figures, and exhibits 

to support their contention that Marion County 

and the city of Indianapolis should be included 

in the delineation of the relevant market, thus 

rendering the market shares held by the proponents to be nominal. In such an enlarged market, 

the existing and potential competition between 

the proponents would appear less substantial, 

and could possibly be termed as insignificant. 

The city of Greenwood and its environs are 

shown to be the principal commercial center of 

Johnson County, containing a major portion of 

the population and recent commercial development. A significant portion of Johnson County's work force was shown as commuting to 

Marion County for employment. The proponents indicate that Johnson County is intricately tied economically with neighboring Marion 

County and in particular to the city of 

Indianapolis. It is, therefore, advanced that in 

light of a common economic tie, intense competition exists with larger Indianapolis-based 

banks, some of which have branches at or near 

the Johnson-Marion County boundary.

Greenwood (1970 population 11,408) is 

located in the extreme northern portion of 

Johnson County, adjoining the Marion County 

boundary, approximately 10 road-miles northwest of Franklin (1970 population 11,477) and 

approximately 20 road-miles northwest of 

Edinburg (1970 population of 4,456). Greenwood and its environs have grown at a more 

rapid pace than other communities in Johnson 

County and have experienced commercial 

development that could be characterized as 

suburban growth emanating from the city of 

Digitized 

Indianapolis. Applicant maintains only a single

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Federal Reserve Bank of St. Louis
BANK ABSORPTIONS DENIED BY THE CORPORATION 105

branch office in this northern portion of 

Johnson County, at Greenwood (established in 

July, 1974). This office holds IPC deposits of 

$1,054,000, or a mere 2.0 percent of Applicant's total IPC deposit base of $52,390,000. 

State Bank is not represented in this portion of 

the county.

Four of Applicant's five offices, providing 98 

percent of its IPC deposit base, and all offices 

of State Bank are located in the central and 

southeastern portion of Johnson County, 

where the economic characteristics are more 

agriculturally oriented than in the northern section. While a number of offices of Indianapolisbased banks are located in the proximity of the 

Johnson County line, these institutions are 

restricted by State statutes from de novo

branching activity outside their head office 

county. Neither Applicant nor State Bank are 

engaged, to any significant degree, in intense 

"head-on" competition with offices of these 

larger Indianapolis-based banks and no information has been presented that would indicate 

that either proponent derives any sizable 

volume of business from any portion of Marion 

County.

In the central and southeastern portion of 

Johnson County, seven of the proponents’ 

eight offices are located in close proximity. At 

Whiteland and New Whiteland, the proponents' 

offices are located only 1 mile apart with no 

intervening banking offices present. State 

Bank's Franklin branch is located 1.5 miles from 

the head office of Applicant, again with no 

intervening banking offices present. The proponents' head offices are located only 10 roadmiles distant with two major highway arteries 

providing easy access and permitting significant 

interaction between the two communities.

In light of the foregoing, the FDIC adheres to 

its original conclusion and finds nothing in the 

record to cast doubt on the initial determination 

that the proposed transaction would result in 

substantially anticompetitive effects. The 

FDIC's Board of Directors again concludes that 

approval of the proposed merger of Franklin 

Bank and Trust Company and The Edinburg 

State Bank is not warranted and should be 

denied.

Resources

Banking offices 

in operation

of dollars) Before After

Southwest Mississippi 

Bank

Magnolia, Mississippi 

(change title to First 

Bank of Southwest 

Mississippi)

27,239 3 7

to consolidate with

Bank of McComb 

McComb

33,920 4

Summary report by Attorney General,

May 18, 1978

The appropriate area within which to assess 

the competitive effects of the proposed transaction is Pike County where all the offices of 

Applicant and Bank are located.

The head offices of the two banks are 10 

miles apart. Branches are as close as 5 miles. 

Within a distance of 13 miles covering four 

communities are six of the banks' seven 

offices; the seventh is in Osyka, 18 miles south 

of Magnolia. These are the only banking communities in the county.

The county's population dropped from 

35,000 in 1960 to 31,800 in 1970. Supplemental information reports the 1975 population as 34,000. Two forecasts have been made 

jointly by U.S. Departments of Agriculture and 

Commerce. One in 1972 projected a gain to 

about 40,000 in 2020, and one in 1976 projected a loss to about 31,700 in 2020. Per 

capita annual income in Pike County of $2,775 

is more than 10 percent below the statewide 

figure of $3,098, itself the lowest in the nation. 

The county does not appear to be a good 

prospect for new bank entry.

Bank is the second largest in deposits in the 

county with 24 percent and Applicant is tied for 

third with 19 percent. Deposit Guaranty 

National Bank, the State's largest bank, operates five offices in Pike County and First 

National Bank of Jackson, the State's second 

largest, operates three offices in the county. All 

these offices are in McComb. Deposit Guaranty 

is the largest in the county, with 38 percent of 

deposits, and First National of Jackson has 19 

percent of county deposits; thus, the State's 

two largest banks have 57 percent of county 

deposits. First National also has the closest 

branches in adjoining counties, 85 percent of 

deposits in the county to the east and 100 percent of deposits in the county to the west of 

Pike County.

The application lists three Brookhaven banks 

and one in Tylertown as competitors, as well as 

Digitized for FRASER 

two banks in Louisiana. Brookhaven is more

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Federal Reserve Bank of St. Louis
DEPOSIT |NSoPAN~F C ON'

t! 27 miles no; lh of McConrb Tyleaov\n, 20 

iv e s east is /vnere Prs t Nation??: of Jackson 

has 8 5 p e rcen t of county d e p o sits. A 

Brookhaven bank has a branch in Bog tie Chitto 

about 20 miles north of McComb. This may be 

an alternative for customers roughly midway 

between McComb and Bogue Chitto but it is 

hardly a realistic alternative for the bulk of the 

residents of the McComb-Magnolia area. The 

other banks are even farther away. None of 

these banks are in Pike County.

The application itseif estimates that at least 

1 5 percent of customers have accounts at both 

banks and that they account for at least 1 5 percent of IPC deposits. This means that 

customers having deposits of about $17-18 

million out of total IPC deposits of $ 1 18 million 

at both banks would lose the benefit of competition between the banks which presumably 

led them to open these accounts.

Accordingly, it appears that the proposed 

transaction is a merger of two direct competitors with 43 percent of deposits in an area now 

served by four banks and that it would eliminate 

a significant amount of existing competition 

without any likelihood of new entry. Consummation of the proposed merger would change 

market shares in terms of total deposits from 

38 percent 24 percent, 19 percent, and 19 

percent to 43 percent 38 percent and 1 9 percent.

Overall, the proposed transaction wouid 

have a significant adverse effect upon competition in commercial banking in Pike County.

Basis for Corporation denial,

May 19, 1978

Southwest Mississippi Bank, Magnolia, 

Mississippi {"Southwest Bank"), an insured 

State nonmember bank with total resources of 

$2 7,23 9,00 0 and total IPC deposits of 

$21,494,000, has applied, pursuant to Section 

18(c) and other provisions of the Federal 

Deposit Insurance A c t for the FDIC's consent 

to consolidate under its charter with Bank of 

McComb, McComb, Mississippi, an insured 

State nonmember bank with total resources of 

$ 3 3 ,9 2 0 ,0 0 0 and total IPC deposits of 

$ 2 7 ,1 0 2 ,0 0 0 . Southwest Bank seeks to establish the four offices of Bank of McComb as 

branches of the resultant bank, with the title 

"First Bank of Southwest M ississippi,” and to 

redesignate its main office site to the present 

main office site of Bank of McComb. The resultant bank would operate seven offices.

Competition, So u thw est Bank operates 

branches at Fernwood (3 road-miies north of 

Magnolia) and at Osyka (14 road-miies south of 

Magnolia). Bank of McComb operates three 

offices in the city of McComb and a branch at 

Summit (5 road-miies north of McComb).

These offices of the proponents are in Pike 

County.

Pike County (1970 population 31,756) is 

located in the southwestern portion of the State 

adjoining the Louisiana boundary. The economy 

is chiefly predicated upon agriculture; however, 

some industrial firms have located along interstate Route 55 and U.S. Route 51 (running 

north-south) in the McComb area. While Magnolia (1970 population 1,913) is the county 

seat, the city of McComb (1970 population 

11,969) serves as the county's chief commercial center. The economic picture of this area 

can best be described as static with moderate 

declines in both population and agricultural 

activity in evidence. The effective median 

household buying level of $8,441 (1976) is 

significantly lower than the state figure as well 

as substantially below the national average.

The two banks are headquartered in communities located less than 8 road-miies apart, 

connected by interstate Route 55 and U.S. 

Route 51, with the Fernwood branch of Southwest Bank located approximately 4 road-miies 

from the nearest office of Bank of McComb and 

within 6 miles of three of its offices. The Interstate Route 55 corridor provides residents easy 

access throughout the developed portion of the 

county. Additionally, Southwest Bank, with a 

branch at Osyka, located in the southern portion 

of the county only 6 road-miies from Kentwood, Louisiana, is regarded as competing not 

only in Pike County, but also in adjoining portions of Tangipahoa Parish, Louisiana. Due to 

the ease of access and the proximity of five of 

the proponents' seven offices, the two banks 

are in direct, significant competition throughout 

Pike County and approval of the proposed consolidation would eliminate this competition.

This market area contains 6 commercial 

banks operating a total of 1 7 offices. The proponents rank as the second and third largest 

banks in the market in total deposits held, with 

Bank of McComb holding a 21,6-percent 

market share and Southwest Bank a 1 7.3-percent market share. The resultant bank would 

hold 38.9 percent of the market's total commercial bank deposits and rank as the area's 

largest bank. This would significantly increase 

deposit concentration with the two largest 

banks, subsequent to the transaction, holding 

73.2 percent of the market's deposits. In addition, the proposal would reduce from two to 

one, the number of banks headquartered in Pike 

County, eliminating a viable, local alternative to 

the Jackson-based banks in the market as a 

source of commercial banking services.

Under Mississippi statutes, both proponents 

may branch de novo throughout much of Pike 

County and other areas within a 100-miie 

radius. The Bank of McComb and Southwest

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Federal Reserve Bank of St. Louis
” AMi; n v ; Tt*P C O R ^ A 'f C v 107

Ban* 'Ue wrl- cs latvshf.n i-'bDtbfK"i< .a t>

t'.-51 nC-r!-£ " C -I • ''<•'* '’0V 0’ a"‘C ~-1. a ‘ rCoi-'cBC

ihe m anagsna' <j nd tsnanc’a, resources to 

engage in such continued expansion. It 

therefore follows that there is the potential for 

increased future competition between the proponents, and that this potential competition 

would ba eliminated by consummation of this 

transaction.

The proposed consolidation of these two 

banks would (1) eliminate substantial existing 

competition, (2) increase significantly the level 

of deposit concentration in the local m arket (3) 

reduce the number of alternative sources of 

commercial banking services in the market, 

eliminating one of the two locally based banks, 

and (4) eliminate the potential for increased 

future competition between the proponents. On 

the basis of the foregoing, the Board of Directors is of the opinion that the proposed transaction would "substantially lessen competition” 

within the relevant area.

Financial and Managerial' Resources; Future

Prospects. Th e fin a n c ia l and m anag erial 

resources of the applying banks are satisfactory, and each has favorable future prospects. 

The future prospects of the resultant bank 

would also be favorable.

Convenience and Needs o f the Community

to be Served. W hile the proponents point out 

that certain economies of scale and resultant 

cost savings would result in the combined 

institution and hold out the prospect of a possible increase in trust activities, it is feit that no 

significant change in the type, level, or pricing 

of present services would result from the proposed consolidation. Moreover, approval would 

result in a lessening of the commercial banking 

alternatives available in this m arket

The Board of Directors, accordingly, believes 

that the application should be, and hereby is, 

denied.

Statement upon reconsideration,

August 2, 1378

On May 19, 1 9 7 8 , So u thw est M ississippi 

Bank, M agnolia, M ississippi, an insured State 

nonm em ber bank with total- resources of 

$ 2 7 ,2 3 9 ,0 0 0 and toca. iPG deposits of 

$ 2 1 ,4 9 4 ,0 0 0 , w a j deMea ihe C orporation's 

prior approval to consolidate with Bank of 

McComb, McComr) ‘^ s ^ s v p p i, an insured 

State nonm em ber bafsK vv tr iotal resources 

of $ 3 3 ,9 2 0 ,0 0 0 and total IPC deposits of 

$ 2 7 ,1 0 2 ,0 0 0 . Southwest M.ssissippi Bank 

and Bank of McComb subsequently petitioned the Corporation tc reconsider its 

d en ial The FD IC 's Board of D irectors, having 

reconsidered its earlier decision, affirm s its 

denial with the following statem ent.

T hc board c f Directors concluded in its 

o rig riy ’ decision that the proposed consol'dahon ;f consummated would, (1) elim inate substantial existing com petition, (2) 

increase significantly the level of deposit 

concentration in the local m arket, (3) reduce 

the number of alternative sources of com ­

m ercial banking services in the m arket, 

eliminating one of the tw o locally based 

banks, and (4) elim inate the potential for 

increased future com petition between the 

proponents. On the basis of the foregoing, 

the Board of D irectors w as of the opinion 

that the proposed transaction would “ substantially lessen com p etitio n" within the 

relevant banking m arket.

in seeking reconsideration of the C orporation's previous denial, the proponents reiterated that ihe banks operate in separate 

m arkets (northern and southern sections of 

Pike County) and, therefore, are not in direct 

com petition. Such an argum ent had been 

previously considered by the Board of Directors w hich found that “ Due to the ease of 

access and the proxim ity of five of the proponents' seven offices, the two banks are in 

direct, significant competition . . . and 

approval of the proposed consolidation 

would eliminate this com petition." As no 

new fa cts or information which would cast 

doubt upon the initial determination that the 

proposed transaction would result in substantially anticompetitive effects have been 

presented, the FDIC's Board of Directors 

again concludes that approval of the proposed consolidation of the Bank of McComb 

with Southwest Mississippi Bank is not warranted and should be denied.

Resources 

(in thousands 

of dollars)

Banking offices 

in operation

Before After

First Peoples Bank 

of N ew Je rse y 

Westmont, New Jersey

7 8 0 ,3 1 5 46 51

to acquire the assets and assume the deposit liabilities o f

The M ainland Bank 

Linwood

3 5 ,8 8 4 5

Summary report by Attorney General,

May 2, 1973

W e have reviewed this proposed transaction 

and conclude that it would not have a substantial competitive impact.

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Federal Reserve Bank of St. Louis
108 1 T : 0V 1 INSURANCE CORPORA HON

Basis for Corporation denial 

October 5, 1978

Pursuant to Section 18(c) and other provisions of the Federal Deposit insurance A c t an 

application has been filed on behalf of First Peoples Bank of New Jersey, Westmont, New 

Jersey ("Peoples Bank” ), an insured State nonmember bank w ith total resources of 

$780,315,-000 and total SPC deposits of 

$590,467,000, for the Corporation's prior 

consent to acquire the assets of and assume 

the liability to pay deposits made in The Mainland Bank, Linwood, New Jersey, also an 

insured State nonmember bank,, with total 

resources o* $35,88*- 0 0 C and total IPC 

deposits of $28,016,000 The five offices of 

The M ah^na Bank wo ’u he established as 

branches of Peoples B.=tk

Peoples Bank was chartered in 1921 and 

operated as a national bank until March 21, 

1978, when it withdrew from the Federal 

Reserve System and converted into a Statechartered insured nonmember bank, it presently 

operates 4 6 offices in 8 counties of southern 

New Jersey and has received the necessary 

regulatory authority approvals to establish 2 

additional de novo branch offices. Peoples Bank 

has experienced rapid expansion in the last 

decade as a result of seven merger transactions 

since late 1 969,

The instant expansion proposal to acquire 

The Mainland Bank was submitted in substantially the same form to the Office of the Comptroller of the Currency r '0C r , l in 1977 when 

Peoples Sank was urde- ^hat agency's jurisdiction Tha^ proposal de ‘ied on December 1,

1977, when the OCC found that Peoples 

B?nx's financial and managerial resources were 

*r..-deq>jcKe 10 support additional expansion 

pMns. «i$ cnroobec.

Como-? -‘-O'. Tne le v a n t market in which to 

assess *h ' impact of the proposed

tr-jMsactuon is regarded as the trade area prese t:* s-Wrbc " :e Mainland Bank which 

ir-oludes ir.e e i t^f portion of Atlantic County, 

New Jersev j ’ ‘mg those communities

lo^at^d cn th t is^nds whirh ?re

, V r r- r-gp \}y ^ r *J f v i'b

n yt Kvers r n j ,niefi ^ l »r r .a.cJ 

z.p-s ipate a ^oL, of j.C ~fVr_ ~ f sa 

r 1 '.v , « x ^ d n as\ a 1 ' *> rj 3 

t» f G* *i * ^ s T r ef r- •> T * I o

L ~ ' (:ni< r :r v > -t-co, J \~rq c

* hut T* r -vKPt <-na - sc**** • ~V 

s n t iier t: _n tr y 2 | crt he'r ) r 

X \ * - R j,*,r " f S c 8fS0y', .. *t 6-f jt&S 

- ,if t ; - "i n' ■' « 'I 5 , •' 5 '< ^ 

Peoples Bank is not represented in the relevant gecgraomc market and is not considered 

to be r<r~oi ?-repetition with The Mainland

Bank. Peoples Bank's nearest offices bound the

m a rk e t on th e n o rth and to the so u th . It has one 

o ffic e a t H a m m o n to n , in A tla n tic C o u n ty , 

a p p ro x im a te ly 1 3 m ile s n o rth o f T h e M a in la n d 

B a n k 's W e y m o u th B ranch. Its c lo s e s t o ffic e s 

north of the market are 7 miles distant from 

T h e M a in la n d B a n k 's o ffic e s , but are lo c a te d in 

a n o th e r c o u n ty . T o th e s o u th , P eoples B a n k's 

ne a re st o ffic e s are lo c a te d in C ape M a y C o u n ty , 

a p p ro x im a te ly 1 2 m ile s d is ta n t.

N e w J e rs e y s ta tu te s p e rm it s ta te w id e d e

n o v o branching activity, s u b je c t to c e rta in h o m e 

o ffic e p ro te c tio n p ro v is io n s . T h e a d v e n t o f 

leg a lize d c a sin o g a m b lin g in n ea rb y Atlantic 

C ity and th e p o te n tia l e ffe c ts o f o ff-s h o re oil 

e x p lo ra tio n are a n tic ip a te d to have a fa v o ra b le 

e c o n o m ic im p a c t throughout m u c h o f th e s e rv ­

ice area o f T h e M a in la n d Bank. T h is area is 

re ga rd e d as a p rim e p o te n tia l m a rk e t fo r d e

novo e xp a n s io n n o t o n ly by P eoples B ank, b u t 

also b y a n u m b e r o f o th e r c o m m e rc ia l b a n kin g 

o rg a n iz a tio n s in th e S ta te . T h e number o f 

potential e n tra n ts to th e m a rk e t se em s to 

assure th e c o n tin u a tio n o f a c o m p e titiv e b a n k ­

ing c lim a te , re g a rd le ss o f th e c o n s id e ra tio n s o f 

th e fin a n c ia l and m a n a g e ria l re s o u rc e s o f th e 

p ro p o n e n ts in v o lv e d in th e p ro p o s e d tra n s a c ­

tio n . T h e p o te n tia l fo r fu tu re c o m p e titio n b e ­

tw e e n th e p rop o n en ts, w h ic h w o u ld be fo re ­

closed by th e prop o se d acquisition., is n o t v ie w e d 

as having a s ig n ific a n t adverse im pact.

U n d e r th e s e c irc u m s ta n c e s , th e B oard o f 

D ire c to rs is o f th e o p in io n th a t th e p ro p o s e d 

tra n s a c tio n w o u ld n o t in any s e c tio n o f th e 

c o u n try , s u b s ta n tia lly lessen c o m p e titio n , te n d 

to create a monopoly, or in any other manner be 

in re s tra in t o f tra d e .

F in a n c ia l and M a n a g e ria l Resources; F u tu r e

Prospects. T h e M a in la n d B a n k 's fin a n c ia l and 

m a n a g e ria l re s o u rc e s are a t unacceptable levels 

and th e b a n k has effectively ceased to fu n c tio n 

as a viable competitor in the market. Peoples 

Bank has undergone extensive expansion in 

recent years, which has placed a considerable 

s tra in u p o n its fin a n c ia l a n d m a n a g e ria l 

re sou rce s. C apita! fu n d s have fa ile d to keep 

pace w ith th e ra pid asset and d e p o s it g ro w th . 

P eoples B ank rot resolved p ro b le m s th a t 

have arisen ft or fts p !o r a cqu isition s and has 

fa i ed 13 dem, r,? <Hdt it is p re s e n tly ca pa b le 

of 3»' 4i,«sir on. The Coroor^tion is

of .iy ,p r on i h j j tne proposeo tra n s a c tio n 

wo . '* serve o ’ute the financial and

rrp n a rje n a l ,,_s o f P eople^ B ank and

w r u Ct p^e^e 4o De a substan sal a d d itio n a l 

;;urd<*n ad* ers«h/ a ffecting the future 

o r ;,5pc cts o f "'-e 'isulting bank.

'c er>'f} N e e d s o f th e C o m m u n ity

to b e Served The Mainland Bank's weakened 

fin an cia l arid managerial resources have p re clu d ­

ed it from effectively com peting in the m arket

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Federal Reserve Bank of St. Louis
• '- - . 1 ^ i*

.1 u the p'eposes vwuid c^'fer ~n

i)oscio'e s^ p is s to rin g fui! cervix cornmeiCJSi b d tiK ii^ ^ervicas 3' m e c^.ices u- T *e 

Mainland 8a .k vtfhile such considerations relating to the convenience and needs of the community to be served add some weight in favor 

of approval of the proposed transaction, the 

additional services to be provided by Peoples

i J ‘ . J ' , ' ! - TL-! ' ^ £

:v;‘~-b0! c* competing The ove,/"I

: u com,' ,..nr / v oulu ly '.-uv 

weigh the negative aspects inherent in the proposal,

Based on the foregoing, the Board of Directors concludes that approval of the application 

is not warranted.

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Federal Reserve Bank of St. Louis
LEGISLATION-1978

Internatio nal Banking A ct, The 

international Banking Act of 1978, 

Public Law 95-369, provides for the 

Federal regulation of foreign banks in 

domestic financial markets Specifically, it provides foreign banks with the 

option of establishing a Federal branch, 

with the approval of the Office of the 

Comptroller of the Currency, in any 

State where the establishment of a 

branch or agency is not prohibited by 

State law and where the bank does not 

p re s e n tly have S ta te -ch a p te re d 

branches or agencies. This act also 

provides for interstate branching by 

foreign banks, after the foreign bank 

has designated a home State, if such 

branching is in compliance with State 

law and deposits in all States other 

than the home State are related to 

international transactions or foreign 

a c tiv itie s . A g ra n d fa th e r clause 

exempts branches that were established or applied for by July 2.7, 1978.

This act provides for insurance 

coverage o f certain deposits in 

domestic branches of foreign banks It 

mandates Federal deposH insurance if 

such branches accept deposits of 

$100,000 or less, unless the branch is 

determined not to be engaged in 

domestic retai! deposit activities. Other 

branches may obtain deposit insurance 

on an optional basis.

The act further subjects foreign 

banks w ith domestic branches to 

Federal Reserve reserve requirements 

and to provisions In the Bank Holding 

Company Act of 1956. Additionally, it 

amends the Edge Act by eliminating 

provisions which discriminated against 

foreign banks and by deleting the 

statutory restriction on leveraging 

equity capital.

The act also requires the FDiC to 

participate in the preparation of reports 

to Congress relating to the treatment 

of United States banks in foreign countries and an evaluation of the McFadden Act restrictions on branching by 

national banks.

Financial Institutions Regulatory 

and Interest Rate Control Act, The 

Financial Institutions Regulatory and 

Interest Rate Control Act (FIRIRCA), 

Public Law 95-630, is a comprehensive package of legislation affecting a 

number of areas relating to bank supervision. It expands the administrative 

enforcement powers of the financial 

regulatory agencies by authorizing 

them to issue cease-and-desist orders 

against directors and officers of financial institutions and to impose civil 

money penalties for violations of law or 

final cease-and-desist orders. It also 

permits such agencies to remove directors and officers who threaten the 

soundness of a financial institution. 

The act imposes additional restrictions 

on lending to bank insiders and to 

insiders of correspondent banks. In 

addition, prohibitions -are placed on certain interlockin g d ire cto ra te and 

employment relationships between 

financial institutions.

The act gives financial regulatory 

agencies the authority to disapprove 

changes in control of financial institutions. Furthermore, the FDIC is given 

express authority over the establishm ent and o p e ra tio n o f fo re ig n 

branches and the acquisition of the 

shares of foreign banks by State nonmember insured banks. This authority 

is similar to that exercised by the 

Federal Reserve with respect to foreign 

branches and foreign bank acquisitions 

of member banks.

This act also establishes the right of 

privacy for customers of financial 

institutions, authorizes Federal charters 

for mutual savings banks, and raises 

the deposit insurance limit on Individual 

Retirement Accounts (IRA) and Keogh 

accounts from $40,000 to $100,000. 

Moreover, this act creates a Federal 

Financial In stitutio n s Exam ination

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Federal Reserve Bank of St. Louis
FEDERAL DEPOSIT INSURANCE CORPORATION

Council. The council consists of the 

Chairman of the FDIC, the Comptroller 

of the Currency, a Governor of the 

Board of Governors of the Federal 

Reserve Board, the Chairman of the 

Federal Home Loan Bank Board, and 

the Chairman of the National Credit 

Union Administration Board. The primary function of this council is to 

establish uniform examination standards for financial institutions. Public 

Law 95-630 also requires banks to disclose material facts through annual 

reports to the appropriate Federal 

banking agency.

This act extends to December 15, 

1980, and gives the Federal financial 

regulatory agencies the authority to 

establish ceilings on interest rates paid 

by financial institutions on time and 

savings d e p o sits. It e lim in a te s, 

however, the interest rate differential 

between commercial banks and thrifts 

institutions on savings deposits or 

accounts from w hich autom atic 

transfers may be made, pursuant to a 

prearranged agreem ent, to cover 

checks drawn by the depositor. The act 

also authorizes NOW (negotiable order 

of withdrawal) accounts in New York. It 

contains other provisions affecting 

credit unions and savings and loan 

associations, extending the ExportImport Bank for 5 years, and establishing c e rta in c o n s u m e r-p ro te c tio n 

safeguards in the electronic funds 

transfer area.

Federal Banking Agency A u d it 

Act. The Federal Banking Agency Audit 

Act, Public Law 95-320, authorizes the 

General Accounting Office to conduct 

periodic performance audits of the 

FDIC, the Federal Reserve System, and 

the Office of the Comptroller of the 

Currency. Prior to the enactment of this 

act, these three financial regulatory 

agencies were not subject to such GAO 

audits, although the FDIC has been 

subject to GAO audits of its financial 

operations for the past 32 years.

Stil! exempt from this audit authority 

are transactions conducted by or on 

behalf of a foreign bank or government 

or an intematonal financing organization, matters relating to monetary 

policy, and transactions by the Federal 

Open Market Committee.

Housing and Community Development Amendments. Title VI of the 

Housing and Community Development 

Amendments of 1978, Public Law 95- 

557, established a National Neighborhood Reinvestment Corporation. Its 

board of directors consists of the 

Chairman of the FDIC, the Chairman of 

the Federal Home Loan Bank Board, a 

member of the Board of Governors of 

the Federal Reserve System, the 

Comptroller of the Currency, and the 

Chairman of the National Credit Union 

Administration Board. The Neighborhood Reinvestment Corporation was 

created for the purpose of promoting 

reinvestment in older neighborhoods 

through the efforts of local financial 

institutions, community groups, and 

local government.

RULES AND REGULATIONS

Development and review of FDIC 

rules and regulations (Part 302). On

November 15, 1978, the FDIC published a proposed amendment to Part 

302 of its regulations which would 

revise and codify its rulemaking procedures. As revised, Part 302 would 

describe the general procedures by 

which the FDIC develops and reviews 

its rules and regulations. The revision 

was proposed to comply with Executive Order 1 2044 (“ Improving Government Regulations") and to make the 

FDIC's rulemaking procedures more 

responsive to banks and the public at 

large. Some of the objectives of the 

proposed FDIC procedures are (1) 

regulations will be clearly and understandably written; (2) their need and 

purpose will be clearly established; (3) 

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Federal Reserve Bank of St. Louis
.u-» T'C'-vo 115

cise e ffe c tiv e oversight of their 

development; (4) the public will be 

given an opportunity to participate in 

the rulemaking process; (5) alternative 

approaches will be considered; and (6) 

burdens on the p u b lic w ill be 

minimized.

interest Rate Regulations (Part 

329). Effective November 1 , 1978, the 

FDIC amended Part 329 of its regulations to permit insured State nonmember b a n ks to tra n s fe r fu n d s 

automatically from a savings account 

to a checking or other account of the 

same individual depositor. Section 

329.7 of the FDIC's regulations was 

amended In October 1978 to limit the 

maximum rate payable on savings 

deposits that are subject to such 

automatic transfer authorizations to 

not more than the commercial bank 

rate, as required by Title XV! of the 

FIRIRCA.

Part 329 was further amended on 

June 1, 1978, to provide for a money 

market certificate of deposit. This is a 

variable rate time deposit of less than 

$100,000, the maximum rate of which 

is equivalent to the Treasury auction 

discount rate on 6-month Treasury 

bills. It has a fixed term of 26 weeks. 

This deposit category is designed to 

permit banks to compete for shortterm money market funds.

Part 329 was also amended to prov*de for a new category of 8-year time 

c-posits with a 7-3/4 percent maxi <um interest rate for commercial 

i ;nks and 8 percent maximum for 

mutual savings banks. The amendment 

also makes IRA, Keogh Plan, and public 

unit time deposits eligible for the 8 percent rate. This amendment took effect 

June 1, 1978.

Another amendment to Part 329 

allows mutual savings banks in the 

State of Washington to issue 8-year 

time certificates of deposits at the 8 

percent rate, despite the provisions of a 

Washington State law that prohibit

payment of interest on a time deposit 

for a period in excess of 6 years. The 

amendment allows payment at the 8 

percent rate for 6 years subject to 

compulsory call by the bank if the 

Washington law remains unchanged at 

the end of the 6-year period. The purpose of this amendment is to provide 

adequate time for the Washington 

State legislature to conform the law to 

the FDIC's regulations and, at the same 

time, avoid placing mutual savings 

banks in Washington at a competitive 

disadvantage because of the Washington law restrictions.

Finally, on May 11, 1978, the FDIC 

amended Section 329.10 of its regulations to allow insured State nonmember banks to pay interest on Treasury 

tax and loan accounts (TTLs). According to recent Treasury regulations, 

interest must be paid on such accounts 

that are in the nature of overnight borrowings. In effect, the Treasury regulations require payment of a higher rate 

of interest than the rate that normally 

may be paid on a bank's short-term 

funds. The amendment to the FDIC 

regulation has the effect of exempting 

TTLs from the interest rate restrictions 

in Section 329.10 by expanding the 

regulation's exceptions to include 

obligations of both the United States 

and its agencies.

D eposit Insurance (Part 330). 

Effective March 15, 1978, Part 330 

was amended to provide separate 

insurance coverage for interests in pension and other trusteed employee 

benefit funds. The trust interest of 

each employee will be insured up to 

$40,000, as if each trust interest had 

vested, whether the trust is actually 

vested or nonvested. In the past, there 

were no specific provisions for deposit 

insurance of such funds, but vested 

and ascertainable interests were 

separately insured to the maximum of 

$ 4 0 ,0 0 0 based on principles of 

insurance of trust interests, and the

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Federal Reserve Bank of St. Louis
116 FEDERAL DEPOSIT IN S U R E CE M iO N

aggregated nonvested interests in such 

funds were insured up to $40,000.

insurance Coverage of Time and

Savings Deposits of Keogh and 

Individual Retirement Account Funds 

(Parts 330 and 331), On December 7, 

1978, amendments to sections 330.1, 

330.10, and 331 1 were approved to 

reflect the separate insurance coverage 

of $100,000 for time and savings 

deposits of Keogh and !RA funds. The 

separate coverage was provided for by 

Titlr KM of the F!RSRCA which took 

(/fee" on November 10, 1978.

Securities of insured State Nonmember Banks fP irt 335), The FDIC 

jdcpted amendments to Part 335 on 

December 20, 1978 These amendments make the FDIC securities disclosure requirements similar to those of 

the Securities and Exchange Commission, as required by Section 1 2 fi) of the 

Sec*."lues Exchange Act. The amendments a1 so correct a number of errors 

and make minor technical revisions.

Employee R esponsibilities and 

Conduct (Part 336!, On D e ce m b e r 20, 

1978,, the FDIC adopted amendments 

to Part 338 'which are designed to 

avoid actual conflicts of interest or the 

appearance of conflicts of interest. The 

amendments (1 ’ nohibit senior policy 

makers from certain credit;

(2) establish psjicp’mes concerning 

ownership of bank-related securities; 

(35 eliminate disclosure requirements 

for certain financial interests owned by 

an employee's spouse or dependent; 

(4) greatly increase the number of 

employees required to file disclosure 

statem ents; (5) establish form al 

gu,de!mes for processing these stater rrn ^ and (8) unite in one regulation 

the va rio u s d is c lo s u re syste m s 

employed by the FDIC.

Fair H ousing (P art 3 3 8 ). An 

amendment to Part 338 became effective on July 3, 1 978. The regulation is 

an outgrowth of the FDIC's duty to 

compel insured State nonmember

banks to comply with the Fair Housing 

Act and the Equal Credit Opportunity 

Act. Part 338 incorporates an amended 

version of the advertising and poster 

requirements that were formerly contained in the FDIC's policy statement 

on fa ir housing e n title d '"N o n - 

discrimination in Real Estate Loan 

A c tiv itie s ." it also e sta b lish e s 

re co rd ke e p in g re q u ire m e n ts fo r 

monitoring insured State nonmember 

banks' compliance with the Federal fair 

housing laws. The intent of the regulations is to provide a basis for a more 

effective FDIC fair housing enforcement program.

Recordkeeping and Confirmation 

Requirements for Securities Transactions (Part 344!, On February 23,

1 978, the FDIC published for comment 

proposed Part 344 which would establish recordkeeping, written procedure, 

and confirmation requirements for certain securities transactions effected by 

insured State nonmember banks for 

trust department and other bank 

customers. These proposals are in 

response to recommendations in the 

SFC's Final Report on Bank Securities 

Activities. The report includes a recommendation to Congress that the Federal 

banking agencies be required to issue 

and enforce specific regulations 

governing the conduct of banks in 

effecting securities transactions for the 

accounts of others. Based on the comments received, on November 6, 1978, 

the FDIC published for comment a 

revised Part 344.

Community Reinvestment A ct of 

1977 (Parts 345 and 303). Part 345 

became effective on November 6, 

1 978, and implements the Community 

Reinvestment Act of 1 977 (CRA). Part 

345 is intended to encourage insured 

State nonmember banks to help meet 

the credit needs of their communities, 

including low- and moderate-income 

neighborhoods, in conformity with the 

safe and sound operation of such

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Federal Reserve Bank of St. Louis
RULES AND REGULATIONS 117

banks. Under the regulations, the FDIC 

will assess the banks' records in meeting the credit needs of their communities and, after assessing those 

records, will take them into account 

when evaluating applications by those 

banks. Applications affected are those 

for deposit insurance in connection 

with a newly chartered bank, for establishment of a new branch or other 

deposit-accepting facility, for relocation of a main or branch office, and for 

approval of a merger, consolidation, 

acquisition of assets, or assumption of 

liabilities.

To implement these requirements, 

Part 303 was amended to specify that a 

bank must increase (1) the number of 

times that notice of the filing of applications for branches, for relocation, and for 

deposit insurance must be published and 

(2) the number of communities in which 

notice of application for branches and 

relocations must be published. In the 

case of relocation applications, notice 

must be published in the lobby of the 

office which is to be moved. These

amendments are designed to improve 

application procedures and enhance 

public awareness of prospective actions 

of those banks to which the CRA 

applies. These amendments took effect 

on November 6, 1978.

Remote Service F acility Procedures (Parts 303, 304, and 328).

Proposed amendments to Parts 303, 

304, and 328, published for comment 

on October 12, 1978, would revise the 

current FDIC procedures relating to 

remote service facilities. Included in the 

designation "remote service facilities" 

are automated teller machines, cash 

dispensing machines, point-of-sale terminals, and other remote electronic 

facilities where deposits are received, 

checks are paid, or money is lent. The 

rules are designed to comply with court 

decisions classifying such remote service facilities as branches, to minimize 

the administrative burden on banks 

which seek to establish such facilities 

and on the FDIC, and to provide the 

FDIC with the information needed to 

regulate these remote service facilities.

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ill 

1 1 1

mum!

iiiiiiiii

STATISTICS OF BANKS

AND DEPOSIT INSURANCE 

PART FIVE

F T

: u :

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N) O

NUMBER OF BANKS AND BRANCHES

m

Om

JO

Table 101.

Table 102.

Table 103.

Table 104.

Table 105.

Changes in number and classification of banks and branches in the United States (States and ^

other areas) during 1978 ^

“0

Changes in number of commercial banks and branches in the United States (States and other o

areas) during 1978, by State h

Number of banking offices in the United States (States and other areas), December 31, 1978

Banks grouped by insurance status and class of bank, and by State or area and type of office §

>

Number and assets of all commercial and mutual savings banks in the United States (States and z

other areas), December 31, 1978 m

Banks grouped by class and asset size o

JO

Number, assets, and deposits of all commercial banks in the United States (States and other g

areas), December 31, 1978 ^

Banks grouped by asset size and State d

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Federal Reserve Bank of St. Louis
Banks: Commercial banks include the following categories of banking 

institutions:

National banks;

Incorporated State banks, trust companies, and bank and trust companies 

regularly engaged in the business of receiving deposits, whether demand or 

time, except mutual savings banks;

Stock savings banks, including guaranty savings banks in New Hampshire;

Industrial and Morris Plan banks which operate under general banking codes, 

or are specifically authorized by law to accept deposits and in practice do so, 

or the obligations of which are regarded as deposits for deposit insurance;

A regulated certificated bank in Georgia; government-operated banks in 

North Dakota and Puerto Rico; a savings institution, known as a "trust company," operating under special charter in Texas; the Savings Banks Trust 

Company in New York; the Savings Bank and Trust Company Northwest 

Washington in the State of Washington; and branches of foreign banks 

engaged in a general deposit business in Illinois, Massachusetts, New York, 

Oregon, Pennsylvania, Washington, Guam, Puerto Rico, and Virgin Islands;

Private banks under State supervision, and such other private banks as are 

reported by reliable unofficial sources to be engaged in deposit banking.

Nondeposit trust companies include institutions operating under trust 

company charters which are not regularly engaged in deposit banking but are 

engaged in fiduciary business other than that incidental to real estate title or 

investment activities.

Mutual savings banks include all banks operating under State banking 

codes applying to mutual saving banks.

Institutions excluded. Institutions in the following categories are excluded, 

though such institutions may perform many of the same functions as commercial and savings banks:

Banks that have suspended operations or have ceased to accept new

deposits and are proceeding to liquidate their assets and pay off existing 

deposits;

Building and loan associations, savings and loan associations, credit unions, 

personal loan companies, and similar institutions, chartered under laws applying to such institutions or under general incorporation laws, regardless of 

whether such institutions are authorized to accept deposits from the public or 

from their members and regardless of whether such institutions are called 

"banks" (a few institutions accepting deposits under powers granted in 

special charters are included);

Morris Plan companies, industrial banks, loan and investment companies, 

and similar institutions except those mentioned in the description of institutions included;

Branches of foreign banks and private banks which confine their business to 

foreign exchange dealings and do not receive "deposits" as that term is commonly understood;

Institutions chartered under banking or trust company laws, but operating as 

investment or title insurance companies and not engaged in deposit banking or 

fiduciary activities;

Fedeal Reserve Banks and other banks, such as the Federal Home Loan 

Banks and the Savings and Loan Bank of the State of New York, which operates as rediscount banks and do not accept deposits except from financial 

institutions.

Branches: Branches include all offices of a bank other than its head office, at 

which deposits are received, checks paid, or money lent. Banking facilities 

separate from a banking house, banking facilities at government establishments, offices, agencies, paying or receiving stations, drive-in facilities, and 

other facilities operated for limited purposes are defined as branches under the 

Federal Deposit Insurance Act, section 3(o), regardless of the fact that in certain States, including several that prohibit the operation of branches, such 

limited facilities are not considered branches within the meaning of State law.

NUMBER OF BANKS AND BRANCHES 121

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Table 101. CHANGES IN NUMBER AND CLASSIFICATION OF BANKS AND BRANCHES IN THE UNITED STATES

(STATES AND OTHER AREAS) DURING 1978

All banks Commercial banks and nondeposit trust companies Mutual savings banks

Insured Noninsured

Type of change

Total Insured

Non

insured Total

Total

Members 

F.R. System

Not

mem

bers

F.R.

System

Banks

of

deposit

Non

deposit Total Insured

Non

insured

National State

com

panies^

ALL BANKING OFFICES

Number of offices. December 31. 1978 ............................................................................... 52,604 51,699 905 49,598 49,182 22,731 5,721 20,730 315 101 3,006 2,517 489

Number of offices, December 31, 1 9 7 7 ............................................................................... 50,695 49.825 870 47,914 47,523 22,294 5,610 19,619 292 99 2,781 2,302 479

Net change during year........................................................................................................... +1,909 +1,874 +35 + 1,684 + 1,659 +437 +111 +1,111 +23 +2 +225 215 +10

Offices opened..................................................................................................................... 2,426 2,371 55 2,165 2,129 990 199 940 33 3 261 242 19

Banks .............................................................................................................................................. 184 150 34 182 148 37 17 94 31 3 2 2 0

Branches 2,242 2,221 21 1,983 1,981 953 182 846 2 0 259 240 19

Offices closed....................................................................................................................... 517 509 8 481 477 223 85 169 3 1 36 32 4

Banks .................................................................................................................................................... 185 179 6 181 178 62 14 102 2 1 4 1 3

Branches ................................................................................. 332 330 2 300 299 161 71 67 1 0 32 31 1

Changes in classification.................................... . . . . 0 +12 - 1 2 0 +7 -3 3 0 - 3 +340 - 7 0 0 +5 - 5

Among banks.................................................... 0 +4 - 4 0 + 3 66 - 18 +87 - 3 0 0 + 1 - 1

Among branches................. 0 + 8 — 8 0 +4 264 + 15 + 253 - 4 0 0 +4 - 4

BANKS

Number of banks, December 31, 1 9 7 8 ................................................................................. 15,206 14,716 490 14,741 14,391 4,564 1,000 8,827 261 89 465 325 140

Number of banks, December 31, 1 9 7 7 ................................................................................. 15,207 14,741 466 14,740 14,418 4,655 1,015 8,748 235 87 467 323 144

Net change during year........................................................................................................... - 1 - 2 5 +24 + 1 - 2 7 - 9 1 - 1 5 +79 +26 +2 - 2 +2 - 4

Banks beginning operation................................................................................................. 184 150 34 182 148 37 17 94 31 3 2 2 0

New banks................................................................................................................. 180 150 30 178 148 37 17 94 27 3 2 2 0

Banks added to count6........................................... 4 0 4 4 0 0 0 0 4 0 0 0 0

Banks ceasing operation................................................ . . . 185 179 6 181 178 62 14 102 2 1 4 1 3

Absorptions, consolidations, and mergers 182 178 4 178 177 62 14 101 1 0 4 1 3

Closed because of financial difficulties.................... 1 1 0 1 1 0 0 1 0 0 0 0 0

Other liquidations.................................................... 0 0 0 0 0 0 0 0 0 0 0 0 0

Discontinued deposit operations.............. 1 0 1 1 0 0 0 0 1 0 0 0 0

Banks deleted from count 1 0 1 1 0 0 0 0 0 1 0 0 0

Noninsured banks becoming insured.......... . . . . 0 +4 - 4 0 +3 0 0 +3 - 3 0 0 +1 - 1

122 FEDERAL DEPOSIT INSURANCE CORPORATION

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Other changes in classification...................................................................................... 0 0 0 0 0 - 6 6 - 1 8 +84 0 0 0 0 0

National succeeding State bank............................................................................................... 0 0 0 0 0 +3 0 - 3 0 0 0 0 0

State succeeding national bank............................................................................................... 0 0 0 0 0 - 6 9 + 7 +62 0 0 0 0 0

Admission of insured bank to F.R. System.......................................................................... 0 0 0 0 0 0 + 12 - 1 2 0 0 0 0 0

Withdrawal from F.R. System with continued insurance............................................. 0 0 0 0 0 0 - 3 7 +37 0 0 0 0 0

Insured bank becoming noninsured bank............................................................................. 0 0 0 0 0 0 0 0 0 0 0 0 0

Mutual savings bank converted to commercial bank...................................................... 0 0 0 0 0 0 0 0 0 0 0 0 0

Changes not involving number in any class

Change in title.................................................................................................................................. 332 316 16 330 315 79 22 214 15 0 2 1 1

Change in location......................................................................................................................... 27 24 3 26 24 6 1 17 0 2 1 0 1

Change in title and location........................................................................................................ 24 22 2 24 22 3 1 18 2 0 0 0 0

Change in name of location........................................................................................................ 5 5 0 5 5 4 1 0 0 0 0 0 0

Change in location within city.................................................................................................. 233 225 8 233 225 53 9 163 6 2 0 0 0

Change in corporate powers

Granted trust powers................. 58 58 0 57 57 0 0 57 0 0 1 1 0

BRANCHES

Number of branches, December 31, 19785......................................................................... 37,398 36,983 415 34,857 34,791 18,167 4,721 11,903 54 12 2,541 2,192 349

Number of branches, December 31, 19775......................................................................... 35,4882 35,0843 4044 33,1742 33,1053 17,6393 4,595 10,8713 574 12 2,314 1,979 335

Net change during year.......................................................................................................... +1,910 +1,899 +11 +1,683 +1,686 +528 +126 +1,032 - 3 0 +227 +213 +14

Branches opened for business........................................................................................ 2,242 2,221 21 1,983 1,981 953 182 846 2 0 259 240 19

Facilities designated by Treasury............................................................................................ 0 0 0 0 0 0 0 0 0 0 0 0 0

Absorbed bank converted to branch...................................................................................... 162 159 3 158 158 51 29 78 0 0 4 1 3

Branch replacing head office relocated................................................................................ 48 48 0 48 48 14 2 32 0 0 0 0 0

New branches.................................................................................................................................. 1,968 1,961 7 1,732 1,730 865 144 721 2 0 236 231 5

Branches and/or facilities added to count6........................................................................ 64 53 11 45 45 23 7 15 0 0 19 8 11

Branches discontinued........................................................................................................ 332 330 2 300 299 161 71 67 1 0 32 31 1

Facilities designated by Treasury............................................................................................ 3 3 0 3 3 2 0 1 0 0 0 0 0

Branches ............................................................................................................................................. 267 267 0 236 236 117 66 53 0 0 31 31 0

Branches and/or facilities deleted from count.................................................................. 62 60 2 61 60 42 5 13 1 0 1 0 1

Other changes in classification...................................................................................... 0 +8 - 8 0 +4 - 2 6 4 +15 +253 - 4 0 0 +4 - 4

Branches changing class as a result of conversion......................................................... 0 0 0 0 0 -2 0 2 +23 + 179 0 0 0 0 0

Branches of noninsured banks admitted to insurance................................................... 0 +8 - 8 0 +4 0 0 +4 - 4 0 0 +4 - 4

Branches transferred through absorption, consolidation, or merger.......................... 0 0 0 0 0 - 6 2 + 117 - 5 5 0 0 0 0 0

Branches of insured banks withdrawing from F.R.S........................................................ 0 0 0 0 0 0 -1 2 5 + 125 0 0 0 0 0

Changes not involving number in any class

Changes in operating powers of branches........................................................................... 5 5 0 5 5 3 0 2 0 0 0 0 0

Branches transferred through absorption, consolidation, or merger......................... 255 254 1 250 250 85 7 158 0 0 5 4 1

Changes in title, location, or name of location.................................................................. 405 403 2 375 374 162 37 175 0 1 30 29 1

11ncludes noninsured nondeposit trust companies, members of the Federal Reserve System.

21977 branch totals adjusted.

3Revised.

^•Fourteen noninsured branches of insured banks previously classified noninsured are now classified as insured branches.

5|ncludes facilities established at the request of the Treasury or commanding officer of government installations, and also a few seasonal branches that were not in operation as of December 31. 

6Banks or branches opened prior to 1978 but not included in count as of December 31, 1977.

NUMBER OF BANKS AND BRANCHES 123

Digitized for FRASER 

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Federal Reserve Bank of St. Louis
Table 102. CHANGES IN NUMBER OF COMMERCIAL BANKS AND BRANCHES IN THE UNITED STATES 

(STATES AND OTHER AREAS) DURING 1978, BY STATE

State

In operation Net change 

during 1978

Beginning operation in 1978 Ceasing operation in 1978

Dec. 31, 1978 Dec. 31, 1977 Banks Branches Banks Branches

Banks Branches Banks Branches Banks Branches New Other New Other Absorptions Other Branches Other

Total United S t a te s ............... 14,741 34,857 14,740 33,1741 +1 + 1,683 178 4 1,777 206 178 3 236 64

50 States and O.C................... 14.711 34,575 14,710 32,893 +1 +1,682 177 3 1,772 204 176 3 232 62

Other areas................................. 30 282 30 281 0 +1 1 1 5 2 2 0 4 2

States

Alabama............................................ 312 553 310 509 +2 +44 5 0 43 3 2 1 2 0

Alaska.................................................. 12 112 12 106 NA +6 0 0 7 1 0 0 1 1

Arizona............................................... 28 484 25 465 +3 + 19 4 0 21 0 0 1 2 0

Arkansas ............................................ 262 372 262 353 NA + 19 0 0 22 0 0 0 3 0

California............................................ 244 3,906 235 3,778 +9 + 128 13 0 137 4 4 0 12 1

Colorado............................................ 394 81 372 64 +22 + 17 19 3 18 0 0 0 1 0

Connecticut...................................... 65 587 72 577 - 7 + 10 1 0 5 7 8 0 2 0

Delaware............................................ 19 147 19 143 NA +4 0 0 4 0 0 0 0 0

District of Columbia.................... 17 138 16 133 + 1 +5 1 0 5 0 0 0 0 0

Florida.................................................. 617 743 686 507 - 6 9 +236 6 0 160 77 75 0 0 1

Georgia............................................... 440 786 441 752 - 1 +34 1 0 33 4 2 0 3 0

Haw aii............................................... 11 160 11 158 NA +2 0 0 3 0 0 0 0 1

Idaho.................................................... 24 228 24 215 NA + 13 0 0 13 0 0 0 0 0

Illinois.................................................. 1,277 394 1,270 306 +7 +88 9 0 85 4 2 0 1 0

Indiana............................................... 406 1,035 409 995 - 3 +40 2 0 42 6 5 0 8 0

Iowa.................................................... 657 500 656 509 + 1 - 9 1 0 22 2 0 0 6 27

Kansas ............................................... 617 256 616 208 + 1 +48 1 0 47 1 0 0 0 0

Kentucky............................................ 344 644 344 606 NA +38 0 0 40 0 0 0 2 0

Louisiana............................................ 256 715 254 670 +2 +45 2 0 44 2 0 0 1 0

Maine.................................................. 43 293 43 297 NA - 4 0 0 4 0 0 0 7 1

Maryland............................................ 106 855 108 812 - 2 +43 1 0 43 4 3 0 3 1

Massachusetts................................ 152 924 148 927 +4 - 3 4 0 13 0 0 0 12 4

Michigan............................................ 365 1,793 362 1,704 +3 +89 5 0 91 2 2 0 4 0

Minnesota......................................... 761 176 754 76 +7 + 100 7 0 98 3 0 0 0 1

Mississippi......................................... 185 635 185 604 0 +31 1 0 30 2 1 0 1 0

Missouri............................................ 720 399 719 372 + 1 +27 2 0 29 4 1 0 5 1

Montana............................................ 163 23 160 21 +3 +2 3 0 2 0 0 0 0 0

Nebraska............................................ 459 199 458 177 + 1 +22 1 0 24 0 0 0 2 0

Nevada ............................................... 9 130 8 119 + 1 + 11 1 0 11 0 0 0 0 0

New Hampshire............................. 79 135 79 126 0 +9 2 0 8 2 2 0 1 0

124 FEDERAL DEPOSIT INSURANCE CORPORATION

Digitized for FRASER 

http://fraser.stlouisfed.org/ 

Federal Reserve Bank of St. Louis
New Jersey...................................... 184 1,535 188 1,5011 - 4 +34

New Mexico................................... 87 227 84 216 +3 + 11

New York......................................... 298 3,317 295 3,313 +3 +4

North Carolina................................ 89 1,683 90 1,654 - 1 +29

North Dakota................................... 174 117 173 110 + 1 + 7

Ohio.................................................... 482 1,941 487 1,827 - 5 + 114

Oklahoma............................................ 485 217 483 175 +2 +42

Oregon ............................................... 63 525 55 495 +8 +30

Pennsylvania................................... 378 2,427 387 2,360 - 9 +67

Rhode Island................................... 17 226 17 225 NA + 1

South Carolina................................ 87 662 88 629 - 1 +33

South Dakota................................... 156 149 158 137 - 2 + 12

Tennessee ......................................... 350 953 348 910 +2 +43

Texas ................................................. 1,401 203 1,382 176 + 19 +27

Utah.................................................... 68 253 73 229 - 5 +24

Vermont.............................................. 30 147 31 145 - 1 +2

Virginia ............................................... 263 1,302 280 1,255 -1 7 +47

Washington...................................... 103 785 96 766 +7 + 19

West Virginia................................... 231 56 227 51 +4 +5

Wisconsin......................................... 633 444 628 427 +5 + 17

Wyoming............................................ 88 3 82 3 +6 NA

Other areas

Pacific Islands................................ 3 24 1 26 +2 - 2

Canal Zone...................................... 0 2 0 2 NA NA

Puerto Rico...................................... 21 232 23 229 - 2 +3

Virgin Islands................................... 6 24 6 24 NA NA

11977 branch totals adjusted. 

NA-No activity.

0 0 35 4 4 0 5 0

3 0 12 0 0 0 1 0

12 0 68 9 8 1 66 7

1 0 39 2 2 0 11 1

1 0 7 0 0 0 0 0

0 0 121 6 5 0 10 3

2 0 42 0 0 0 0 0

10 0 29 2 2 0 1 0

2 0 75 11 11 0 16 3

0 0 1 0 0 0 0 0

0 0 33 1 1 0 1 0

0 0 8 4 2 0 0 0

2 0 49 1 0 0 6 1

19 0 27 0 0 0 0 0

5 0 15 10 10 0 1 0

0 0 7 0 1 0 4 1

6 0 39 25 23 0 16 1

7 0 20 1 0 0 2 0

4 0 5 0 0 0 0 0

5 0 36 0 0 0 13 6

6 0 0 0 0 0 0 0

1 1 1 0 0 0 1 2

0 0 0 0 0 0 0 0

0 0 4 2 2 0 3 0

0 0 0 0 0 0 0 0

NUMBER OF BANKS AND BRANCHES 125

Digitized for FRASER 

http://fraser.stlouisfed.org/ 

Federal Reserve Bank of St. Louis
Table 103. NUMBER OF BANKING OFFICES IN THE UNITED STATES (STATES AND OTHER AREAS). DECEMBER 31, 1978 

BANKS GROUPED ACCORDING TO INSURANCE STATUS AND CLASS OF BANK, AND BY STATE OR AREA AND TYPE OF OFFICE

State and type of bank 

or office

All banks Commercial banks and nondeposit trust companies Mutual savings banks Percentage insured'!

Total Insured

Noninsured Total

Insured Noninsured

Total Insured

Noninsured

All

banks

of

deposit

Com

mercial

banks

of

deposit

Mutual

savings

banks

Total

Members F.R. 

System

Nonmembers

F.R.

Sys

tem

Banks 

of de 

posit2

Non

deposit

trust

companies3

National State

United States— all o ffic e s .................. 52.604 51,699 905 49,598 49,182 22,731 5,721 20,730 315 101 3,006 2,517 489 98.3 99.2 83.7

Banks ............................................................. 15,206 14,716 490 14,741 14,391 4,564 1,000 8,827 261 89 465 325 140 96.8 97.6 69.9

Unit Banks............................................ 8,410 8.060 350 8,348 8.025 2.276 500 5.249 242 81 62 35 27 95.8 96.1 56.5

Banks operating branches.............. 6,796 6,656 140 6,393 6.366 2.288 500 3.578 19 8 403 290 113 97.9 99.6 72.0

Branches^ .................................................... 37,398 36,983 415 34,857 34,791 18,167 4,721 11,903 54 12 2,541 2,192 349 98.9 99.8 86.3

50 States & D.C.— all offices............. 52.292 51,419 873 49,286 48,902 22,671 5,721 20,510 285 99 3,006 2,517 489 98.3 99.2 83.7

Banks ............................................................. 15,176 14,703 473 14,711 14,378 4,564 1,000 8,814 246 87 465 325 140 96.9 97.7 69.9

Unit Banks............................................ 8,393 8,056 337 8,331 8,021 2.276 500 5.245 231 79 62 35 27 96.0 96.3 56.5

Banks operating branches............... 6.783 6,647 136 6,380 6,357 2.288 500 3.569 15 8 403 290 113 98.0 99.6 72.0

Branches^ .................................................... 37,116 36,716 400 34,575 34,524 18,107 4,721 11,696 39 12 2,541 2,192 349 98.9 99.9 86.3

Other Areas— all offices....................... 312 280 32 312 280 60 0 220 30 2 0 0 0 89.7 89.7 0.0

Banks ............................................................. 30 13 17 30 13 0 0 13 15 2 0 0 0 43.3 43.3 0.0

Unit Banks............................................ 17 4 13 17 4 0 0 4 11 2 0 0 0 23.5 23.5 0.0

Banks operating branches............... 13 9 4 13 9 0 0 9 4 O 0 0 0 69.2 69.2 0.0

Branches^ .................................................... 282 267 15 282 267 60 0 207 15 0 0 0 0 94.7 94.7 0.0

State

Alabama— all o ffice s............................ 865 865 0 865 865 448 48 369 0 0 0 0 0 100.0 100.0 0.0

Banks ............................................................. 312 312 0 312 312 99 23 190 0 0 0 0 0 100.0 100.0 0.0

Unit banks.............................................. 147 147 0 147 147 32 14 101 0 0 0 0 0 100.0 100.0 0.0

Banks operating branches............... 165 165 0 165 165 67 9 89 0 0 0 0 0 100.0 100.0 0.0

Branches ....................................................... 553 553 0 553 553 349 25 179 0 0 0 0 0 100.0 100.0 0.0

Alaska— all offices................................. 129 129 0 124 124 90 0 34 0 0 5 5 0 100.0 100.0 100.0

Banks ............................................................. 14 14 0 12 12 6 0 6 0 0 2 2 0 100.0 100.0 100.0

Unit Banks............................................ 2 2 0 1 1 0 0 / 0 0 1 1 0 100.0 100.0 100.0

Banks operating branches............... 12 12 0 11 11 6 0 5 0 0 1 1 0 100.0 100.0 100.0

Branches ....................................................... 115 115 0 112 112 84 0 28 0 0 3 3 0 100.0 100.0 100.0

Arizona— all o ffices............................... 512 504 8 512 504 323 0 181 0 8 0 0 0 98.4 98.4 0.0

Banks ............................................................. 28 20 8 28 20 3 0 17 0 8 0 0 0 71.4 71.4 0.0

Unit Banks............................................ 18 10 8 18 10 / 0 9 0 8 0 0 0 55.6 55.6 0.0

Banks operating branches............... 10 10 O 10 10 2 0 8 0 O 0 0 0 100.0 100.0 0.0

Branches ....................................................... 484 484 0 484 484 320 0 164 0 0 0 0 0 100.0 100.0 0.0

126 FEDERAL DEPOSIT INSURANCE CORPORATION

Digitized for FRASER 

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Federal Reserve Bank of St. Louis
Arkansas— all offices............................ 634 631 3 634 631 245 24

Banks ............................................................. 262 259 3 262 259 69 6

Unit banks............................................... 111 108 3 111 108 16 /

Banks operating branches.............. 151 151 0 151 151 53 5

Branches ....................................................... 372 372 0 372 372 176 18

California— all o ffic e s .......................... 4,150 4,126 24 4,150 4,126 2,789 344

Banks ............................................................. 244 229 15 244 229 53 7

Unit banks............................................... 78 69 9 78 69 10 0

Banks operating branches............... 166 160 6 166 160 43 7

Branches^ .................................................... 3,906 3,897 9 3,906 3,897 2,736 337

Colorado— all offices............................ 475 380 95 475 380 186 28

Banks ............................................................. 394 299 95 394 299 137 22

Unit Banks............................................ 327 232 95 327 232 97 18

Banks operating branches............... 67 67 0 67 67 40 4

Branches ....................................................... 81 81 0 81 81 49 6

Connecticut— all offices....................... 1,021 1,021 0 652 652 220 88

Banks ............................................................. 130 130 0 65 65 19 2

Unit banks.............................................. 17 17 0 12 12 3 0

Banks operating branches............... 113 113 0 53 53 16 2

Branches ....................................................... 891 891 0 587 587 201 86

Delaware— all offices............................ 192 190 2 166 164 10 0

Banks ............................................................. 21 19 2 19 17 5 0

Unit banks............................................... 8 6 2 8 6 1 0

Banks operating branches............... 13 13 0 11 11 4 0

Branches ....................................................... 171 171 0 147 147 5 0

D.C.— all offices...................................... 155 155 0 155 155 152 0

Banks ............................................................. 17 17 0 17 17 16 0

Unit Banks............................................ 4 4 0 4 4 4 0

Banks operating branches............... 13 13 0 13 13 12 0

Branches....................................................... 138 138 0 138 138 136 0

Florida— all offices................................. 1,360 1,356 4 1,360 1,356 579 44

Banks ............................................................. 617 613 4 617 613 236 27

Unit banks............................................... 292 288 4 292 288 101 17

Banks operating branches............... 325 325 0 325 325 135 10

Branches ....................................................... 743 743 0 743 743 343 17

Georgia— all offices............................... 1,226 1,226 0 1,226 1,226 415 85

Banks ............................................................. 440 440 0 440 440 64 9

Unit banks............................................... 199 199 0 199 199 13 2

Bank operating branches............... 241 241 0 241 241 51 7

Branches ....................................................... 786 786 0 786 786 351 76

Hawaii— all offices................................. 171 165 6 171 165 13 0

Banks ............................................................. 11 8 3 11 8 2 0

Unit banks.............................................. 1 0 1 1 0 0 0

Bank operating branches............... 10 8 2 10 8 2 0

Branches ....................................................... 160 157 3 160 157 11 0

362 1 2 0

184 1 2 0

91 1 2 0

93 0 0 0

178 0 0 0

993 0 24 0

169 0 15 0

59 0 9 0

110 0 6 0

824 0 9 0

166 95 0 0

140 95 0 0

117 95 0 0

23 0 0 0

26 0 0 0

344 0 0 369

44 0 0 65

9 0 0 5

35 0 0 60

300 0 0 304

154 0 2 26

12 0 2 2

5 0 2 0

7 0 0 2

142 0 0 24

3 0 0 0

1 0 0 0

0 0 0 0

1 0 0 0

2 0 0 0

733 1 3 0

350 1 3 0

170 / 3 0

180 0 0 0

383 0 0 0

726 0 0 0

367 0 0 0

184 0 0 0

183 0 0 0

359 0 0 0

152 0 6 0

6 0 3 0

0 0 1 0

6 0 2 0

146 0 3 0

0 99.5 99.5 0.0

0 98.9 98.9 0.0

0 97.3 97.3 0.0

0 100.0 100.0 0.0

0 100.0 100.0 0.0

0 99.4 99.4 0.0

0 93.9 93.9 0.0

0 88.5 88.5 0.0

0 96.4 96.4 0.0

0 99.8 99.8 0.0

0 80.0 80.0 0.0

0 75.9 75.9 0.0

0 70.9 70.9 0.0

0 100.0 100.0 0.0

0 100.0 100.0 0.0

0 100.0 100.0 100.0

0 100.0 100.0 100.0

0 100.0 100.0 100.0

0 100.0 100.0 100.0

0 100.0 100.0 100.0

0 99.0 98.8 100.0

0 90.5 89.5 100.0

0 75.0 75.0 0.0

0 100.0 100.0 100.0

0 100.0 100.0 100.0

0 100.0 100.0 0.0

0 100.0 100.0 0.0

0 100.0 100.0 0.0

0 100.0 100.0 0.0

0 100.0 100.0 0.0

0 99.7 99.7 0.0

0 99.4 99.4 0.0

0 98.6 98.6 0.0

0 100.0 100.0 0.0

0 100.0 100.0 0.0

0 100.0 100.0 0.0

0 100.0 100.0 0.0

0 100.0 100.0 0.0

0 100.0 100.0 0.0

0 100.0 100.0 0.0

0 96.5 96.5 0.0

0 72.7 72.7 0.0

0 0.0 0.0 0.0

0 80.0 80.0 0.0

0 98.1 98.1 0.0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

369

65

5

60

304

26

2

0

2

24

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

NUMBER OF BANKS AND BRANCHES 127

Digitized for FRASER 

http://fraser.stlouisfed.org/ 

Federal Reserve Bank of St. Louis
Table 103. NUMBER OF BANKING OFFICES IN THE UNITED STATES (STATES AND OTHER AREAS),

D ECEM BER 3 1 , 1 9 7 8 -C O N T IN U E D

BANKS GROUPED ACCORDING TO INSURANCE STATUS AND CLASS OF BANK. AND BY STATE OR AREA AND TYPE OF OFFICE

All banks Commercial banks and nondeposit trust companies Mutual savings banks Percentage insuredl

Insured Noninsured

All

banks

of

deCommercial

banks

of

State and type of bank 

or office Total Insured

Noninsured Total TotalMembers F.R. 

System

Nonmembers

Banks 

of deposit2

Non

deposit

Total Insured

Non

insured

Mutual

savings

banks

National State

F.R.

System

trust

com

panies3

posit deposit

Idaho— all offices....................................

Banks .............................................................

Unit Banks............................................

Banks operating branches..............

Branches .......................................................

252

24

6

18

228

252

24

6

18

228

0

0

0

0

0

252

24

6

18

228

252

24

6

18

228

184

6

0

6

178

10

4

2

2

6

58

14

4

10

44

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

100.0

100.0

100.0

100.0

100.0

100.0

100.0

100.0

100.0

100.0

0.0

0.0

0.0

0.0

0.0

Illinois— all offices.................................

Banks .............................................................

Unit Banks............................................

Banks operating branches..............

Branches .......................................................

1,671

1,277

952

325

394

1,635

1,241

916

325

394

36

36

36

0

0

1,671

1,277

952

325

394

1,635

1,241

916

325

394

605

419

272

147

186

92

67

50

17

25

938

755

594

161

183

29

29

29

O

0

7

7

7

O

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

97.8

97.2

96.2

100.0

100.0

97.8

97.2

96.2

100.0

100.0

0.0

0.0

0.0

0.0

0.0

Indiana— all o ffice s...............................

Banks .............................................................

Unit Banks............................................

Banks operating branches..............

Branches .......................................................

1,447

410

135

275

1,037

1,445

408

133

275

1,037

2

2

2

0

0

1,441

406

133

273

1,035

1,439

404

131

273

1,035

627

121

28

93

506

90

41

20

21

49

722

242

83

159

480

1

1

1

O

0

1

1

1

0

0

6

4

2

2

2

6

4

2

2

2

0

0

0

0

0

99.9

99.5

98.5

100.0

100.0

99.9

99.5

98.5

100.0

100.0

100.0

100.0

100.0

100.0

100.0

Iowa— all o ffices....................................

Banks .............................................................

Unit Banks............................................

Banks operating branches..............

Branches .......................................................

1,157

657

386

271

500

1,150

650

379

271

500

7

7

7

0

0

1,157

657

386

271

500

1,150

650

379

271

500

234

99

48

51

135

92

44

23

21

48

824

507

308

199

317

6

6

6

0

0

1

1

1

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

99.4

98.9

98.2

100.0

100.0

99.4

98.9

98.2

100.0

100.0

0.0

0.0

0.0

0.0

0.0

Kansas— all o ffice s...............................

Banks .............................................................

Unit Banks...............................................

Banks operating branches..............

Branches .......................................................

873

617

484

133

256

872

616

483

133

256

1

1

1

0

0

873

617

484

133

256

872

616

483

133

256

291

151

100

51

140

24

19

15

4

5

557

446

368

78

111

1

1

/

O

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

99.9

99.8

99.8

100.0

100.0

99.9

99.8

99.8

100.0

100.0

0.0

0.0

0.0

0.0

0.0

Kentucky— all offices............................

Banks .............................................................

Unit Banks............................................

Banks operating branches...............

Branches .......................................................

988

344

135

209

644

987

343

134

209

644

1

1

1

0

0

988

344

135

209

644

987

343

134

209

644

335

79

17

62

256

103

10

3

7

93

549

254

114

140

295

1

1

1

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

99.9

99.7

99.3

100.0

100.0

99.9

99.7

99.3

100.0

100.0

0.G

0.0

0.0

0.0

0.0

128 FEDERAL DEPOSIT INSURANCE CORPORATION

Digitized for FRASER 

http://fraser.stlouisfed.org/ 

Federal Reserve Bank of St. Louis
Louisiana— all offices............................ 971 971 0 971 971 344 52

Banks ............................................................. 256 256 0 256 256 54 7

Unit Banks............................................ 72 72 0 72 72 12 1

Banks operating branches............... 184 184 0 184 184 42 6

Branches ....................................................... 715 715 0 715 715 290 45

Maine— all o ffic e s ................................. 451 451 0 336 336 134 40

Banks ............................................................. 73 73 0 43 43 17 3

Unit Banks.............................................. 9 9 0 4 4 1 0

Banks operating branches.............. 64 64 0 39 39 16 3

Branches ....................................................... 378 378 0 293 293 117 37

Maryland— all offices............................ 1.019 1,019 0 961 961 393 109

Banks ............................................................. 109 109 0 106 106 34 6

Unit Banks.............................................. 25 25 0 25 25 5 0

Banks operating branches.............. 84 84 0 81 81 29 6

Branches ....................................................... 910 910 0 855 855 359 103

Massachusetts— all o ffic e s ............... 1,700 1,204 496 1,076 1,069 521 72

Banks ............................................................. 315 169 146 152 146 73 7

Unit Banks.............................................. 52 19 33 22 16 8 0

Banks operating branches............... 263 150 113 130 130 65 7

Branches^ .................................................... 1,385 1,035 350 924 923 448 65

Michigan— all offices............................ 2,158 2,155 3 2,158 2,155 993 569

Banks ............................................................. 365 364 1 365 364 125 83

Unit Banks.............................................. 72 72 0 72 72 13 17

Banks operating branches............... 293 292 1 293 292 112 66

Branches ....................................................... 1,793 1,791 2 1,793 1,791 868 486

Minnesota— all offices......................... 938 935 3 937 934 285 40

Banks ............................................................. 762 759 3 761 758 205 32

Unit Banks.............................................. 623 620 3 622 619 151 25

Banks operating branches............... 139 139 0 139 139 54 7

Branches ....................................................... 176 176 0 176 176 80 8

M ississippi— all offices....................... 820 819 1 820 819 292 18

Banks ............................................................. 185 184 1 185 184 37 5

Unit Banks.............................................. 42 41 / 42 41 4 2

Banks operating branches............... 143 143 0 143 143 33 3

Branches ....................................................... 635 635 0 635 635 255 13

Missouri— all o ffices ............................ 1,119 1,113 6 1,119 1,113 169 89

Banks ............................................................. 720 714 6 720 714 101 52

Unit Banks.............................................. 406 400 6 406 400 55 26

Banks operating branches.............. 314 314 0 314 314 46 26

Branches ....................................................... 399 399 0 399 399 68 37

Montana— all o ffices ............................ 186 183 3 186 183 67 49

Banks ............................................................ 163 160 3 163 160 56 45

Unit Banks.............................................. 141 138 3 141 138 56 41

Banks operating branches.............. 22 22 0 22 22 10 4

Branches ....................................................... 23 23 0 23 23 11 4

575 0 0 0 0 0 100.0 100.0 0.0

195 0 0 0 0 0 100.0 100.0 0.0

59 0 0 0 0 0 100.0 100.0 0.0

136 0 0 0 0 0 100.0 100.0 0.0

380 0 0 0 0 0 100.0 100.0 0.0

162 0 0 115 115 0 100.0 100.0 100.0

23 0 0 30 30 0 100.0 100.0 100.0

3 0 0 5 5 0 100.0 100.0 100.0

20 0 0 25 25 0 100.0 100.0 100.0

139 0 0 85 85 0 100.0 100.0 100.0

459 0 0 58 58 0 100.0 100.0 100.0

66 0 0 3 3 0 1000 100.0 100.0

20 0 0 0 0 0 100.0 100.0 0.0

46 0 0 3 3 0 100.0 100.0 100.0

393 0 0 55 55 0 100.0 100.0 100.0

476 6 1 624 135 489 70.8 99.3 21.6

66 5 1 163 23 140 53.7 96.1 14.1

8 5 1 30 3 27 36.5 72.7 10.0

58 0 0 133 20 113 57.0 100.0 15.0

410 1 0 461 112 349 74.7 99.9 24.3

593 3 0 0 0 0 99.9 99.9 0.0

156 1 0 0 0 0 99.7 99.7 0.0

42 0 0 0 0 0 100.0 100.0 0.0

114 1 0 0 0 0 99.7 99.7 0.0

437 2 0 0 0 0 99.9 99.9 0.0

609 2 1 1 1 0 99.7 99.7 100.0

521 2 1 1 1 0 99.6 99.6 100.0

443 2 1 1 1 0 99.5 99.5 100.0

78 0 0 0 0 0 100.0 100.0 0.0

88 0 0 0 0 0 100.0 100.0 0.0

509 0 1 0 0 0 99.9 99.9 0.0

142 0 1 0 0 0 99.5 99.5 0.0

35 0 1 0 0 0 97.6 97.6 0.0

107 0 0 0 0 0 100.0 100.0 0.0

367 0 0 0 0 0 100.0 100.0 0.0

855 0 6 0 0 0 99.5 99.5 0.0

561 0 6 0 0 0 99.2 99.2 0.0

319 0 6 0 0 0 98.5 98.5 0.0

242 0 0 0 0 0 100.0 100.0 0.0

294 0 0 0 0 0 100.0 100.0 0.0

67 0 3 0 0 0 98.4 98.4 0.0

59 0 3 0 0 0 98.2 98.2 0.0

51 0 3 0 0 0 97.9 97.9 0.0

8 0 0 0 0 0 100.0 100.0 0.0

8 0 0 0 0 0 100.0 100.0 0.0

NUMBER OF BANKS AND BRANCHES 129

Digitized for FRASER 

http://fraser.stlouisfed.org/ 

Federal Reserve Bank of St. Louis
Table 103. NUMBER OF BANKING OFFICES IN THE UNITED STATES (STATES AND OTHER AREAS),

DECEM BER 3 1 , 1 9 7 8 -C O N T IN U E D

BANKS GROUPED ACCORDING TO INSURANCE STATUS AND CLASS OF BANK, AND BY STATE OR AREA AND TYPE OF OFFICE

State and type of bank 

or office

All banks Commercial banks and nondeposit trust companies Mutual savings banks Percentage insuredl

Total Insured

Noninsured Total

Insured Noninsured

Total Insured

Noninsured

All

banks

of

de

posit

Commercial

banks

of

deposit

Mutual

savings

banks

Total

Members F.R. 

System

Non

members

F.R.

Sys

tem

Banks 

of de 

posit2

Nondeposit

trust

com

panies3

Na

tional State

Nebraska— all offices............................ 658 651 7 658 651 259 10 382 0 7 0 0 0 98.9 98.9 0.0

Banks ............................................................. 459 452 7 459 452 117 8 327 0 7 0 0 0 98.5 98.5 0.0

Unit Banks........................................... 381 374 7 381 374 80 7 287 0 7 0 0 0 98.2 98.2 0.0

Banks operating branches.............. 78 78 0 78 78 37 / 40 0 O 0 0 0 100.0 100.0 0.0

Branches ....................................................... 199 199 0 199 199 142 2 55 0 0 0 0 0 100.0 100.0 0.0

Nevada— all o ffices .............................. 139 139 0 139 139 89 24 26 0 0 0 0 0 100.0 100.0 0.0

Banks ............................................................. 9 9 0 9 9 4 1 4 0 0 0 0 0 100.0 100.0 0.0

Unit Banks........................................... 2 2 0 2 2 / O / 0 0 0 0 0 100.0 100.0 0.0

Banks operating branches.............. 7 7 0 7 7 3 1 3 0 0 0 0 0 100.0 100.0 0.0

Branches ....................................................... 130 130 0 130 130 85 23 22 0 0 0 0 0 100.0 100.0 0.0

New Hampshire— all offices............... 282 281 1 214 213 137 5 71 0 1 68 68 0 99.6 99.5 100.0

Banks ............................................................. 105 104 1 79 78 39 3 36 0 1 26 26 0 99.0 98.7 100.0

Unit Banks........................................... 34 33 / 26 25 7 2 16 0 1 8 8 0 97.1 96.2 100.0

Banks operating branches.............. 71 71 0 53 53 32 1 20 0 0 18 18 0 100.0 100.0 100.0

Branches ....................................................... 177 177 0 135 135 98 2 35 0 0 42 42 0 100.0 100.0 100.0

New Jersey— all offices....................... 1,901 1,901 0 1,719 1,719 1,069 24 436 0 0 182 182 0 100.0 100.0 100.0

Banks ............................................................. 204 204 0 184 184 96 15 73 0 0 20 20 0 100.0 100.0 100.0

Unit Banks........................................... 30 30 0 27 27 12 0 15 0 0 3 3 0 100.0 100.0 100.0

Banks operating branches.............. 174 174 0 157 157 84 15 58 0 0 17 17 0 100.0 100.0 100.0

Branches ....................................................... 1,697 1,697 0 1,535 1,535 973 199 363 0 0 162 162 0 100.0 100.0 100.0

New Mexico— all o ffices .................... 314 313 1 314 313 159 19 135 0 1 0 0 0 99.7 99.7 0.0

Banks ............................................................. 87 86 1 87 86 40 6 40 0 1 0 0 0 98.9 98.9 0.0

Unit Banks........................................... 22 21 / 22 21 10 2 9 0 1 0 0 0 95.5 95.5 0.0

Banks operating branches............... 65 65 0 65 65 30 4 31 0 0 0 0 0 100.0 100.0 0.0

Branches ....................................................... 227 227 0 227 227 119 13 95 0 0 0 0 0 100.0 100.0 0.0

New York— all o ffices ......................... 4,727 4,643 84 3,615 3,531 1,606 1,650 275 79 5 1,112 1,112 0 98.2 97.7 100.0

Banks ............................................................. 413 340 73 298 225 124 47 54 68 5 115 115 0 82.3 75.5 100.0

Unit Banks........................................... 133 69 64 130 66 33 11 22 59 5 3 3 0 51.9 50.8 100.0

Banks operating branches.............. 280 271 9 168 159 91 36 32 9 O 112 112 0 96.8 94.6 100.0

Branches^ .................................................... 4,314 4,303 11 3,317 3,306 1,482 1,603 221 11 0 997 997 0 99.7 99.7 100.0

130 FEDERAL DEPOSIT INSURANCE CORPORATION

Digitized for FRASER 

http://fraser.stlouisfed.org/ 

Federal Reserve Bank of St. Louis
North Carolina— all offices.................. 1,772 1,761 11 1,772 1,761 832 7

Banks ............................................................. 89 88 1 89 88 27 2

Unit Banks............................................ 17 17 0 17 17 3 1

Banks operating branches............... 72 71 1 72 71 24 1

Branches ....................................................... 1,683 1,673 10 1,683 1,673 805 5

North Dakota— all offices..................... 291 288 3 291 288 87 6

Banks ............................................................. 174 171 3 174 171 43 3

Unit Banks............................................ 100 97 3 100 97 18 1

Banks operating branches............... 74 74 0 74 74 25 2

Branches ....................................................... 117 117 0 117 117 44 3

Ohio— all o ffice s.................................... 2.423 2,422 1 2,423 2,422 1,375 572

Banks ............................................................. 482 481 1 482 481 217 110

Unit Banks............................................ 131 130 1 131 130 38 36

Banks operating branches.............. 351 351 0 351 351 179 74

Branches ....................................................... 1,941 1,941 0 1,941 1,941 1,158 462

Oklahoma— all o ffic e s .......................... 702 695 7 702 695 359 18

Banks ............................................................. 485 478 7 485 478 191 16

Unit Banks............................................ 368 361 7 368 361 122 14

Banks operating branches............... 117 117 0 117 117 69 2

Branches ....................................................... 217 217 0 217 217 168 2

Oregon— all offices................................. 604 598 6 588 582 335 1

Banks ............................................................. 65 62 3 63 60 6 1

Unit Banks............................................ 27 25 2 27 25 1 1

Banks operating branches.............. 38 37 1 36 35 5 0

Branches^ .................................................... 539 536 3 525 522 329 0

Pennsylvania— all offices.................... 2,999 2,989 10 2,805 2,795 1,644 194

Banks ............................................................. 386 378 8 378 370 226 12

Unit Banks............................................ 113 106 7 113 106 75 3

Banks operating branches.............. 273 272 1 265 264 151 9

Branches^ .................................................... 2.613 2,611 2 2,427 2,425 1,418 182

Rhode Island— all offices.................... 317 304 13 243 230 120 0

Banks ............................................................. 23 20 3 17 14 5 0

Unit Banks............................................ 4 3 1 4 3 0 0

Banks operating branches.............. 19 17 2 13 1 5 0

Branches ....................................................... 294 284 10 226 216 115 0

South Carolina— all offices.................. 749 749 0 749 749 349 17

Banks ............................................................. 87 87 0 87 87 18 7

Unit Banks........................................... 20 20 0 20 20 1 2

Banks operating branches............... 67 67 0 67 67 17 5

Branches ....................................................... 662 662 0 662 662 331 10

South Dakota— all offices.................... 305 304 1 305 304 123 44

Banks ............................................................. 156 155 1 156 155 32 28

Unit Banks........................................... 105 104 1 105 104 19 19

Banks operating branches.............. 51 51 0 51 51 13 9

Branches ....................................................... 149 149 0 149 149 91 16

922 11 0 0

59 1 0 0

13 0 0 0

46 1 0 0

863 10 0 0

195 1 2 0

125 1 2 0

78 1 2 0

47 0 0 0

70 0 0 0

475 1 0 0

154 1 0 0

56 1 0 0

98 0 0 0

321 0 0 0

318 5 2 0

271 5 2 0

225 5 2 0

46 0 0 0

47 0 0 0

246 6 0 16

53 3 0 2

23 2 0 0

30 1 0 2

193 3 0 14

957 8 2 194

132 6 2 8

28 5 2 0

104 1 0 8

825 2 0 186

110 12 1 74

9 2 1 6

3 0 1 0

6 2 0 6

101 10 0 68

383 0 0 0

62 0 0 0

17 0 0 0

45 0 0 0

321 0 0 0

137 0 1 0

95 0 1 0

66 0 1 0

29 0 0 0

42 0 0 0

0 99.4 99.4 0.0

0 98.9 98.9 0.0

0 100.0 100.0 0.0

0 98.6 98.6 0.0

0 99.4 99.4 0.0

0 99.0 99.0 0.0

0 98.3 98.3 0.0

0 97.0 97.0 0.0

0 100.0 100.0 0.0

0 100.0 100.0 0.0

0 100.0 100.0 0.0

0 99.8 99.8 0.0

0 99.2 99.2 0.0

0 100.0 100.0 0.0

0 100.0 100.0 0.0

0 99.0 99.0 0.0

0 98.6 98.6 0.0

0 98.1 98.1 0.0

0 100.0 100.0 0.0

0 100.0 100.0 100.0

0 99.0 99.0 100.0

0 95.4 95.2 100.0

0 92.6 92.6 0.0

0 97.4 97.2 100.0

0 99.4 99.4 100.0

0 99.7 99.6 100.0

0 97.9 97.9 100.0

0 93.8 93.8 0.0

0 99.6 99.6 100.0

0 99.9 99.9 100.0

0 95.9 94.7 100.0

0 87.0 82.4 100.0

0 75.0 75.0 0.0

0 89.5 84.6 100.0

0 96.6 95.6 100.0

0 100.0 100.0 0.0

0 100.0 100.0 0.0

0 100.0 100.0 0.0

0 100.0 100.0 0.0

0 100.0 100.0 0.0

0 99.7 99.7 0.0

0 99.4 99.4 0.0

0 99.0 99.0 0.0

0 100.0 100.0 0.0

0 100.0 100.0 0.0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

16

2

0

2

14

194

8

0

8

186

74

6

0

6

68

0

0

0

0

0

0

0

0

0

0

NUMBER OF BANKS AND BRANCHES

Digitized for FRASER 

http://fraser.stlouisfed.org/ 

Federal Reserve Bank of St. Louis
Table 103. NUMBER OF BANKING OFFICES IN THE UNITED STATES (STATES AND OTHER AREAS),

D ECEM BER 3 1 , 1 9 7 8 -C O N T IN U E D

BANKS GROUPED ACCORDING TO INSURANCE STATUS AND CLASS OF BANK. AND BY STATE OR AREA AND TYPE OF OFFICE

State and type of bank 

or office

All banks Commercial banks and nondeposit trust companies Mutual savings banks Percentage insured1

Total Insured

Noninsured Total

Insured Noninsured

Total Insured

Non

insured

All

banks

of

de

posit

Commercial

banks

of

deposit

Mutual

savings

banks

Total

Members F.R. 

System

Nonmembers

F.R.

System

Banks 

of deposit2

Non

deposit

trust

com

panies3

National State

Tennessee— all offices......................... 1.303 1,301 2 1,303 1,301 483 59 759 1 1 0 0 0 99.8 99.8 0.0

Banks ............................................................. 350 348 2 350 348 72 10 266 1 1 0 0 0 99.4 99.4 0.0

Unit Banks........................................... 98 96 2 98 96 7 1 88 1 1 0 0 0 98.0 98.0 0.0

Banks operating branches.............. 252 252 0 252 252 65 9 178 O O 0 0 0 100.0 100.0 0.0

Branches ....................................................... 953 953 0 953 953 411 49 493 0 0 0 0 0 100.0 100.0 0.0

Texas— all o ffic e s ................................. 1,604 1,598 6 1,406 1,598 645 57 896 6 0 0 0 0 99.6 99.6 0.0

Banks ............................................................. 1,401 1,395 6 1,401 1,395 609 40 746 6 0 0 0 0 99.6 99.6 0.0

Unit Banks........................................... 1,226 1,220 6 1,226 1.220 580 26 614 6 0 0 0 0 99.5 99.5 0.0

Banks operating branches............... 175 175 0 175 175 29 14 132 O 0 0 0 0 100.0 100.0 0.0

Branches ....................................................... 203 203 0 203 203 36 17 150 0 0 0 0 0 100.0 100.0 0.0

Utah— all o ffices.................................... 321 319 2 321 319 126 100 93 0 2 0 0 0 99.4 99.4 0.0

Banks ............................................................. 68 66 2 68 66 10 13 43 0 2 0 0 0 97.1 97.1 0.0

Unit Banks........................................... 43 41 2 43 41 6 7 28 0 2 0 0 0 95.3 95.3 0.0

Banks operating branches.............. 25 25 0 25 25 4 6 15 0 O 0 0 0 100.0 100.0 0.0

Branches ....................................................... 253 253 0 253 253 116 87 50 0 0 0 0 0 100.0 100.0 0.0

Vermont— all offices.............................. 202 201 1 177 176 59 1 116 0 1 25 25 0 99.5 99.4 100.0

Banks ............................................................. 36 35 1 30 29 13 1 15 0 1 6 6 0 97.2 96.7 100.0

Unit Banks........................................... 9 8 / 8 7 4 1 2 0 1 / 1 0 88.9 87.5 100.0

Banks operating branches.............. 27 27 0 22 22 9 O 13 0 0 5 5 0 100.0 100.0 100.0

Branches....................................................... 166 166 0 147 147 46 0 101 0 0 19 19 0 100.0 100.0 100.0

Virginia— all offices.............................. 1.565 1,564 1 1,565 1,564 777 475 312 0 1 0 0 0 99.9 99.9 0.0

Banks ............................................................. 263 262 1 263 262 88 79 95 0 1 0 0 0 99.6 99.6 0.0

Unit Banks........................................... 74 73 / 74 73 14 29 30 0 1 0 0 0 98.6 98.6 0.0

Banks operating branches.............. 189 189 0 189 189 74 50 65 0 0 0 0 0 100.0 100.0 0.0

Branches ....................................................... 1,302 1,302 0 1,302 1,302 689 396 217 0 0 0 0 0 100.0 100.0 0.0

Washington— all offices....................... 1.016 1,006 10 888 878 629 40 209 9 1 128 128 0 99.0 98.9 100.0

Banks ............................................................. 112 102 10 103 93 20 5 68 9 1 9 9 0 91.1 90.3 100.0

Unit Banks........................................... 41 31 10 41 31 2 3 26 9 1 O O 0 75.6 75.6 0.0

Banks operating branches.............. 71 71 0 62 62 18 2 42 O 0 9 9 0 100.0 100.0 100.0

Branches^ .................................................... 904 904 0 785 785 609 35 141 0 0 119 119 0 100.0 100.0 100.0

132 FEDERAL DEPOSIT INSURANCE CORPORATION

Digitized for FRASER 

http://fraser.stlouisfed.org/ 

Federal Reserve Bank of St. Louis
West Virginia— all o ffic e s .................. 287 287 0 287 287 134 35 118 0 0 0 0 0 100.0 100.0 0.0

Banks ............................................................. 231 231 0 231 231 106 29 96 0 0 0 0 0 100.0 100.0 0.0

Unit Banks............................................ 175 175 0 175 175 78 23 74 0 0 0 0 0 100.0 100.0 0.0

Banks operating branches.............. 56 56 0 56 56 28 6 22 0 0 0 0 0 100.0 100.0 0.0

Branches ....................................................... 56 56 0 56 56 28 6 22 0 0 0 0 0 100.0 100.0 0.0

Wisconsin— all offices.......................... 1,080 1,075 5 1,077 1,072 284 47 741 0 5 3 3 0 99.5 99.5 100.0

Banks ............................................................. 636 631 5 633 628 129 27 472 0 5 3 3 0 99.2 99.2 100.0

Unit Banks............................................ 411 406 5 408 403 82 18 303 0 5 3 3 0 98.8 98.8 100.0

Banks operating branches............... 225 225 0 225 225 47 9 169 0 0 0 0 0 100.0 100.0 0.0

Branches ....................................................... 444 444 0 444 444 155 20 269 0 0 0 0 0 100.0 100.0 0.0

Wyoming— all offices............................ 91 91 0 91 91 47 16 28 0 0 0 0 0 100.0 100.0 0.0

Banks ............................................................. 88 88 0 88 88 46 16 26 0 0 0 0 0 100.0 100.0 0.0

Unit Banks........................................... 85 85 0 85 85 45 16 24 0 0 0 0 0 100.0 100.0 0.0

Banks operating branches............... 3 3 0 3 3 1 0 2 0 0 0 0 0 100.0 100.0 0.0

Branches ....................................................... 3 3 0 3 3 1 0 2 0 0 0 0 0 100.0 100.0 0.0

OTHER AREAS

Pacific Islands— all offices^............... 27 25 2 27 25 9 0 16 2 0 0 0 0 92.6 92.6 0.0

Banks ............................................................. 3 1 2 3 1 0 0 1 2 0 0 0 0 33.3 33.3 0.0

Unit Banks............................................ 2 0 2 2 0 0 0 0 2 0 0 0 0 0.0 0.0 0.0

Banks operating branches.............. 1 1 0 1 1 0 0 1 0 0 0 0 0 100.0 100.0 0.0

Branches^ .................................................... 24 24 0 24 24 9 0 15 0 0 0 0 0 100.0 100.0 0.0

Canal Zone— all o ffices ....................... 2 2 0 2 2 2 0 0 0 0 0 0 0 100.0 100.0 0.0

Banks ............................................................. 0 0 0 0 0 0 0 0 0 0 0 0 0 0.0 0.0 0.0

Unit Banks........................................... 0 0 0 0 0 0 0 0 0 0 0 0 0 0.0 0.0 0.0

Banks operating branches............... 0 0 0 0 0 0 0 0 0 0 0 0 0 0.0 0.0 0.0

Branches? .................................................... 2 2 0 2 2 2 0 0 0 0 0 0 0 100.0 100.0 0.0

Puerto Rico— all offices....................... 253 229 24 253 229 25 0 204 22 2 0 0 0 90.5 90.5 0.0

Banks ............................................................. 21 12 9 21 12 0 0 12 7 2 0 0 0 57.1 57.1 0.0

Unit Banks........................................... 9 4 5 9 4 0 0 4 3 2 0 0 0 44.4 44.4 0.0

Banks operating branches............... 12 8 4 12 8 0 0 8 4 0 0 0 0 66.7 66.7 0.0

Branches8 .................................................... 232 217 15 232 217 25 0 192 15 0 0 0 0 93.5 93.5 0.0

Virgin Islands— all o ffices .................. 30 24 6 30 24 24 0 0 6 0 0 0 0 80.0 80.0 0.0

Banks ............................................................. 6 0 6 6 0 0 0 0 6 0 0 0 0 0.0 0.0 0.0

Unit Banks........................................... 6 0 6 6 0 0 0 0 6 0 0 0 0 0.0 0.0 0.0

Banks operating branches.............. 0 0 0 0 0 0 0 0 0 0 0 0 0 0.0 0.0 0.0

Branches9 .................................................... 24 24 0 24 24 24 0 0 0 0 0 0 0 100.0 100.0 0.0

NUMBER OF BANKS AND BRANCHES 133

Digitized for FRASER 

http://fraser.stlouisfed.org/ 

Federal Reserve Bank of St. Louis
Table 103. NUMBER OF BANKING OFFICES IN THE UNITED STATES (STATES AND OTHER AREAS),

D ECEM BER 3 1 , 1 9 7 8 -C O N T IN U E D 

BANKS GROUPED BY INSURANCE STATUS AND CLASS OF BANK, AND BY STATE OR AREA AND TYPE OF OFFICE

1 Nondeposit trust companies are excluded in computing these percentages.

2|ncludes 9 noninsured branches of insured banks: 7 in the Pacific Islands and 2 in the Canal Zone. 

^Includes noninsured nondeposit trust companies that are members of the Federal Reserve System. 

^California: 1 branch operated by a State nonmember bank in Puerto Rico.

Massachusetts: 1 branch operated by a noninsured bank in New York.

New York: 18 branches operated by 3 State nonmember banks in Puerto Rico.

Oregon: 1 branch operated by a national bank in California.

Pennsylvania: 2 branches operated by a noninsured bank in New York and a national bank in New Jersey. 

Washington: 3 branches operated by a national bank in California.

5United States possessions: American Samoa, Guam, Midway Islands and Northern Mariana Islands.

Trust Territories: Caroline Islands and Marshall Islands.

^Pacific Islands: 23 branches —

American Samoa: 1 insured branch operated by a State nonmember bank in Hawaii.

Guam: 11 insured branches operated by 2 State nonmember banks in Hawaii, a State nonmember bank and a national 

bank in California and 2 national banks in New York.

Caroline Islands: 4 noninsured branches operated by a national bank in California and a State nonmember bank in 

Hawaii.

Northern Mariana Islands: 4 insured branches operated by a national bank and a State nonmember bank in California 

and a State nonmember bank in Hawaii.

Marshall Islands. 3 noninsured branches operated by a national bank in California and a State nonmember bank in 

Hawaii.

?Canal Zone: 2 noninsured branches operated by 2 national banks in New York. Branch deposits are not insurable in the 

Canal Zone. Branches are listed with the parent bank.

8puerto Rico: 25 insured branches operated by 2 national banks in New York, and a national bank in California.

9\/irgin Islands: 24 insured branches operated by 2 national banks in New York, a national bank in California, and a 

national bank in Pennsylvania.

1 34 FEDERAL DEPOSIT INSURANCE CORPORATION

Digitized for FRASER 

http://fraser.stlouisfed.org/ 

Federal Reserve Bank of St. Louis
Table 104. NUMBER AND ASSETS OF ALL COMMERCIAL AND MUTUAL SAVINGS BANKS 

IN THE UNITED STATES (STATES AND OTHER AREAS), DECEMBER 31, 1978 

BANKS GROUPED BY CLASS AND ASSET SIZE 

(In thousands of dollars)

Asset size All

banks

Insured commercial banks Noninsured 

banks 

and trust 

companies

Mutual savings banks

Total

Members F.R. System

Nonmembers 

F.R. System

Insured

Non

insured

National State

Number of banks

Less than $5.0 million................................................. 1.158 973 122 47 804 185

$5.0 to 9.9 million....................................................... 2,388 2,352 379 127 1,846 29 3 2

$10.0 to 24.9 million................................................. 4.882 4,836 1,366 312 3,158 25 12 9

$25.0 to 49.9 million................................................. 3.284 3,214 1,208 228 1,778 14 29 27

$50.0 to 99.9 million.................................................. 1,749 1,615 711 127 777 10 77 47

$100.0 to 299.9 million............................................... 1,116 938 495 88 355 34 98 46

$300.0 to 499.9 million.............................................. 222 166 92 20 54 18 31 7

$500.0 to 999.9 million.............................................. 190 135 83 17 35 18 35 2

$1.0 to 4.9 billion.......................................................... 193 139 95 24 20 16 38 _

$5.0 billion or more....................................................... 25 23 13 10 - - 2 -

Total banks................................................... 15,205 14,391 4,564 1,000 8,827 349 325 140

(In thousands of dollars)

Amount of assets

Less than $5.0 million.................................................. 3,733,754 3,442,950 462,208 160,306 2,820,436 290,804 0 0

$5.0 to 9.9 million....................................................... 17,861,356 17,612,878 2,880,462 960,260 13,772,156 210,134 24,623 13,721

$10.0 to 24.9 million................................................. 81,083,384 80,317,611 23,349,459 5,220,457 51,747,695 378,660 210,113 177,000

$25.0 to 49.9 million................................................. 115,209,026 112,461,978 43,230,564 7,944,305 61,287,109 518,446 1,220,925 1,007,677

$50.0 to 99.9 million................................................. 121,937,721 112,083,102 49,753,340 9,066,934 53,262,828 672,109 5,632,306 3,550,204

$100.0 to 299.9 million............................................... 179,803,835 149,148,495 78,505,925 14,895,206 55,747,364 5,973,107 17,265,671 7,416.562

$300.0 to 499.9 million............................................... 86,145.080 64,143,777 35,742,352 8,305,360 20,096,065 7,065,630 12,358,436 2,577,237

$500.0 to 999.9 million............................................... 128,435,555 89,317,803 56,259,595 11,802,251 21,255,957 12,539,548 25,457,195 1,121,009

$1.0 to 4.9 billion.......................................................... 373,342,428 276,041,619 197,917,134 46,978,917 31,145,568 28,174,939 69,125,870 0

$5.0 billion or more....................................................... 375,495,215 364,437,560 234,183,992 130,253,568 0 0 11,057,655 0

Total assets................................................... 1,483,047,354 1,269.007,7731 722,285,031 235,587,564 311,135,178 55,823.377 142,352,794 15,863,410

1 Domestic assets only; does not include assets of branches of U.S. banks in "Other areas."

NUMBER OF BANKS AND BRANCHES 1 35

Digitized for FRASER 

http://fraser.stlouisfed.org/ 

Federal Reserve Bank of St. Louis
Table 105. NUMBER, ASSETS, AND DEPOSITS OF ALL COMMERCIAL BANKS'! IN THE UNITED STATES (STATES AND OTHER AREAS),

DECEMBER 31, 1978 

BANKS GROUPED BY ASSET SIZE AND STATE 

(Amounts in thousands of dollars)

Banks with assets of —

State

All

banks

Less 

than 

$5 million

$5.0 million 

to

$9.9 million

$10.0 million 

to

$24.9 million

$25.0 million 

to

$49.9 million

$50.0 million 

to

$99.9 million

$100.0 million 

to

$299.9 million

$300.0 million 

to

$499.9 million

$500.0 million 

to

$999.9 million

$1.0 billion 

to

$4.9 billion

$5.0 billion 

or 

more

Total United States and

other areas?

Banks............................................................. 14,740 1.158 2,381 4,861 3,228 1,625 971 181 154 154 27

Total assets^ 1,563,884,529 3,733,754 17,823,012 80,667,627 112,980,424 1 12,755,261 154,819,475 70,109,541 101,919,447 304,872,796 604,203,192

Total deposits3 1,260,413,601 3,105,410 15,873,003 72,346,990 100,737,029 99,697,023 131,515,551 56,838,684 78,749,306 230,599,357 470,951,248

States

Alabama

Banks............................................................. 312 10 43 151 68 19 13 1 5 2 0

Assets.......................................................... 14,737,005 35,260 333,364 2,559,046 2,431,653 1,220,080 2,037,087 388,356 2,950,393 2,781,766 0

Deposits....................................................... 12,657,531 28,589 292,434 2,292,779 2,175,900 1,083,690 1,784,845 337,022 2,447,110 2,215,162 0

Alaska

Banks............................................................. 12 0 0 0 2 5 3 1 1 0 0

Assets.......................................................... 1,921.515 0 0 0 77,058 317,579 492,572 425,859 608,447 0 0

Deposits....................................................... 1,569,933 0 0 0 68,049 270,151 389,185 336,397 506,151 0 0

Arizona

Banks............................................................. 27 9 3 6 1 2 1 1 1 3 0

Assets.......................................................... 10,184,089 15,334 20,612 93,142 35,705 168,133 243,374 367,256 502,033 8,738,500 0

Deposits....................................................... 8.870,955 5,161 16,918 84,199 33,713 154,943 221,910 327,238 452,112 7,574.761 - 0

Arkansas

Banks............................................................. 262 16 37 101 63 28 13 3 1 0 0

Assets.......................................................... 9.267,552 47,009 282,538 1,619,318 2,157,452 1,794,312 1,844,189 977,383 545,351 0 0

Deposits....................................................... 8,022,468 39,735 251,313 1,458,021 1,924,575 1,590,054 1,601,804 745,898 411,068 0 0

California

Banks............................................................. 244 17 25 53 58 35 33 2 10 5 6

Assets.......................................................... 191,914,025 33,855 184,675 968,278 2,063,645 2,496,993 5,788,913 684,002 5,417,505 10,820,270 163,455,889

Deposits....................................................... 158,779.375 8,185 147,951 865,697 1,831,974 2,231,063 5,203,582 568,901 4,783,724 9,060,605 134,077,693

Colorado

Banks............................................................. 394 110 59 121 56 28 16 0 2 2 0

Assets.......................................................... 13.374,211 284,501 443,046 1,934,391 2,024,367 2,029,833 2,246,096 0 1,324,365 3,087,612 0

Deposits....................................................... 1 1,263,754 203,909 366,526 1,720,929 1,808,823 1,789,699 1,929,657 0 1,077,245 2,366,966 0

Connecticut

Banks............................................................. 65 1 3 20 18 9 6 1 3 4 0

Assets.......................................................... 11,992,218 4,697 21,159 328,831 602,119 636,020 861,772 471,054 1,918,156 7.148,410 0

Deposits....................................................... 10,061,666 4,270 17,798 289,600 523,105 566,491 730,044 408.642 1,645,417 5,876,299 0

Dejaware

Banks............................................................. 19 2 3 6 2 2 0 1 2 1 0

Assets.......................................................... 3,410,922 593 19,907 92,617 59,703 158,485 0 430,028 1,196,642 1,452,947 0

Deposits....................................................... 2,611,134 0 17,675 83,564 51,615 143,330 0 388,436 1,003,077 923,437 0

District of Columbia

Banks................................................. 17 0 2 2 3 3 2 1 2 2 0

Assets....................................................... 7,086,581 0 16,831 26,311 135,645 210,041 230,258 467,864 1,505,449 4,494,182 0

Deposits................................ 5,838.979 0 12,366 24,713 116,127 184,917 201,923 423,789 1,191,562 3,683,582 0

136 FEDERAL DEPOSIT INSURANCE CORPORATION

Digitized for FRASER 

http://fraser.stlouisfed.org/ 

Federal Reserve Bank of St. Louis
Florida

Banks.......................... .............. 617 14 48 210 152

Assets.......................................................... 37.448,956 41,901 366,123 3,613,083 5,518,544

Deposits....................................................... 32,213,996 26,144 315,856 3,207,674 4.943.724

Georgia

Banks.......................................................... 440 38 82 179 98

Assets.......................................................... 20,792,659 121,748 615,057 2,997,827 3,374,862

Deposits....................................................... 16,590,099 107.735 548,388 2,688,649 2,990.964

Hawaii

Banks.......................................................... 11 1 1 1 1

Assets.................... ............ 4,211,864 415 9,726 11,404 35,209

Deposits................. ............ 3.704.915000 32,653

Idaho

Banks................. 24 0 5 7 3

Assets.............. 4,296,4910 42,915 122,442 103,641

Deposits........... 3,602,347

0 38,417 108,777 94,986

Illinois

Banks................. 1,277 88 195 423 268

Assets.............. 121,380,290 329,052 1,478,692 6,896,554 9,697,377

Deposits. . . . 94.253,364 268,032 1,320,189 6,143,738 8,556,167

Indiana

Banks................. 406

8 37 121 113

Assets.............. 28,220,927 20,612 283,426 2,085,095 3,923,407

Deposits........... 23,701,770 14,588 253,135 1,894,361 3,529,460

Iowa

Banks................. 657 33 173 244 146

Assets.............. 17,882,365 118,363 1,340,038 3,990,087 4,968,673

Deposits............ 15,627,714 105,872 1,213,731 3,615,812 4,481,834

Kansas

Banks................. 617 123 154 197 93

Assets.............. 13,568,762 420,176 1,120,666 3,159,100 3,202,375

Deposits............ 11.706,613 376,177 1,009,312 2.844.679 2,849.207

Kentucky

Banks................. 344 20 45 129 92

Assets.............. 16,046,662 68,539 347,149 2,158,637 3,190,763

Deposits. . 13,689,911 60.345 308,312 1,950,175 2,881,389

Louisiana

Banks.............. 2567 16 75 84

Assets............ 19,156,370 23,674 121,557 1,308,829 3,013,635

Deposits. . 16,290,978 20,011 109,553 1,1 76,285 2,715,899

Maine

Banks.............. 43 0 3 12 15

Assets............ 3,008,695 0 22,798 224,013 518,531

Deposits . 2,591,264 0 20,178 199,574 459,828

Maryland

Banks.............. 106

1 16 26 28

Assets............ 14,041,272 2,338 122.718 436,677 981,097

Deposits. 11,576,093 1,722 107,946 390,950 872,721

Massachusetts

Banks....................... 1524

8 42 33

Assets.................... 28,062,311 14,026 62,995 697,514 1,192,606

Deposits. 21,832,912 7,788 55,670 578,906 1,007,254

96

6,777.964

6,039,172

20

1,488,179

1,297,4514

274,358

227,622

166

11,615,249

10,128,739

76

5,396,050

4,828,147

41

2,893,601

2,586,949

36

2,339,220

2,069,256

34

2,305,715

2,051,083

40

2,661,798

2,368,7746

427,108

367,676

20

1,436,391

1,290,829

30

2,149,197

1,851,865

81

12,141.651

10,632,469

17

2.497,786

2.183,1314

773.030

702,7521

165.203

147,044

117

18,394.929

14,344,279

38

6,229,265

5,405,230

15

2,155,393

1,825,115

11

1,916,118

1,450,809

18

2,450,315

2,209,391

21

3,798,079

3,295,1535

1,059,579

913,2158

1,1 77,655 

1,049,923

21

3,160,839

2,658,280

11

4,295,415

3,551,7142

767,945

628,4091

352,465

325,0731

351,131

307,859

11

4,507,316

3,492,1927

2,540,739

2,121,2544

1.572,450

1,220,4712

715,338

578,7932

794,440

604,9335

1,886,750

1,593,8062

756,666

630,7930007

2,844,213

2,380,360

4

2,541,653

1,971,3161

516,770

435,7914

2,666,848

1,702,1693

1,774,475

1,453,5351

843,760

577,9301

695,769

528,3802

1,415,168

1,136,3857

4,734,975

3,755,6320002

1,094,048

870,8533

1,681,130

1,394,232

1

2,152,622

1,525,9274

8,929,255

6,145,3722

3,029,615

2,644,4372

2,720,031

2,241,8512

6,869,059

5,335,9823

5,967,858

4,202,0600000002

3,315,936

2,487,8981

1,607,073

1,255,8650005

8,790,348

6,991,1493

5,862,931

4,261,903

0000000000003

58,925,214

42,961,8770000000000000000000001

10,396,860

7,636,654

NUMBER OF BANKS AND BRANCHES 137

Digitized for FRASER 

http://fraser.stlouisfed.org/ 

Federal Reserve Bank of St. Louis
Table 105. NUMBER, ASSETS, AND DEPOSITS OF ALL COMMERCIAL BANKS IN THE UNITED STATES (STATES AND OTHER AREAS),

DECEMBER 31, 1978-CONTINUED 

BANKS GROUPED BY ASSET SIZE AND STATE 

(Amounts in thousands of dollars)

State

All

banks

Banks with assets of —

Less 

than 

$5 million

$5.0 million 

to

$9.9 million

$10.0 million 

to

$24.9 million

$25.0 million 

to

$49.9 million

$50.0 million 

to

$99.9 million

$100.0 million 

to

$299.9 million

$300.0 million 

to

$499.9 million

$500.0 million 

to

$999.9 million

$1.0 billion 

to

$4.9 billion

$5.0 billion 

or 

more

h/lichigan

Banks............................................................. 365 6 23 100 105 61 51 6 4 8 1

Assets.......................................................... 48,165,374 15,871 185,582 1,629,576 3,656,172 4,236,363 8,524,058 2,446,149 2,400,057 16,025,143 9,046,403

Deposits....................................................... 40,583,398 10,626 163,784 1,470,635 3,290,238 3,818,840 7,630,634 2,179,786 2,123,012 12,883,103 7,012,740

Minnesota

Banks.................................................... 761 75 215 283 119 47 16 3 0 3 0

Assets.......................................................... 25,007,859 277,365 1,571,840 4,551.647 4,155,567 3,191,123 2,345,884 966,089 0 7,948,344 0

Deposits....................................................... 20,524,811 245,955 1,437,855 4,107,826 3,727,029 2,855,146 2,028,401 740,562 0 5,382,037 0

Mississippi

Banks............................................................. 185 5 25 71 51 19 10 2 0 2 0

Assets.......................................................... 9,444,942 18,021 186,806 1,183,557 1,788,725 1,344,802 1,798,178 706,753 0 2,418,100 0

Deposits....................................................... 8,314,275 11,836 165,864 1,074,544 1,610,462 1,196,867 1,611,613 637,627 0 2,005,462 0

Missouri

Banks............................................................. 720 76 150 244 150 64 29 1 2 4 0

Assets.......................................................... 29,247,195 255,289 1,107,927 4,034,657 5,153,265 4,319,091 4,598,435 353,835 1,792,492 7,632,204 0

Deposits....................................................... 23,494,859 223,319 996,024 3,622,968 4,557,731 3,777,227 3,761,788 309,979 1,269,488 4,976.335 0

Montana

Banks............................................................. 163 11 34 65 33 13 7 0 0 0 0

Assets.......................................................... 4,458,263 29,853 257,170 1,008,496 1,088,881 949,804 1,124,059 0 0 0 0

Deposits................................................. 3,955,345 24,866 231,321 914,993 985,983 837,096 961,086 0 0 0 0

Nebraska

Banks............................................................. 459 104 134 145 45 22 4 3 2 0 0

Assets.......................................................... 9,562,484 319,611 964,970 2,347,642 1,454,812 1,437,498 445,986 1,246,929 1.345,036 0 0

Deposits.............................................. 8,192,532 281,250 868,540 2,115,502 1,300,842 1,275,101 397,473 987,017 966,807 0 0

Nevada

Banks............................................................. 9 1 0 1 0 1 3 1 1 1 0

Assets.......................................................... 3,286,806 1,770 0 17,189 0 95,277 723,063 437,731 704,339 1,307,437 0

Deposits....................................................... 2,876,931 1,241 0 14,131 0 88,156 635,733 371,479 626,977 1,139,214 0

New Hampshire

Banks............................................................. 79 5 10 28 23 8 5 0 0 0 0

Assets.......................................................... 2,711,275 13,267 74,010 489,354 806,376 543,769 784,499 0 0 0 0

Deposits....................................................... 2,394,142 10,658 65,888 438,619 716,485 464,849 697,643 0 0 0 0

New Jersey

Banks....................................................... 184 1 1 32 53 33 33 11 15 5 0

Assets.......................................................... 32,197,257 751 9,871 567,569 1,978,575 2,374,932 5,250,694 4,317,441 10,698,820 6,998,604 0

Deposits....................................................... 27,492,713 8 8,013 499,984 1,770,997 2,099,194 4.641,744 3,733,870 9,204,066 5,534,837 0

New Mexico

Banks............................................................. 87 3 6 24 31 15 6 0 2 0 0

Assets.......................................................... 4,905,028 8,152 46,153 424,784 1,122,952 1,086,807 954,992 0 1,261,188 0 0

Deposits....................................................... 4,295,090 6,714 40,043 380,972 1,012,728 980,259 823,385 0 1,050,989 0 0

New York

Banks............................................................. 298 18 10 52 48 38 48 21 28 26 9

Assets....................................................... 404,994,263 47,532 72,863 890,560 1,656,583 2,701,219 8,200,374 8,225,748 19,638,555 53,129,265 310,431,564

Deposits.................. 304,462,470 37,515 60,883 775,425 1,420,428 2,243,314 6,130,322 5,072,382 11,198,388 35,231,927 242,291,886

138 FEDERAL DEPOSIT INSURANCE CORPORATION

Digitized for FRASER 

http://fraser.stlouisfed.org/ 

Federal Reserve Bank of St. Louis
North Carolina

Banks............................................................. 89 4 6 22 24 14 7 6 1 5 0

Assets.......................................................... 20,645,978 16,647 44,370 345,619 820,784 981,582 1,296,139 2,218,631 544,852 14,377,354 0

Deposits....................................................... 17,039,049 12,762 36,826 304,336 726,506 854,803 1,132,033 1,949,428 488,938 11,533,417 0

North Dakota

Banks............................................................. 174 13 38 85 21 9 7 0 1 0 0

Assets.......................................................... 4,435,241 44,747 295,812 1,361,115 759,376 587,672 810,468 0 576,051 0 0

Deposits....................................................... 3,858,809 38,296 268,343 1,228,516 679,408 520,384 721,541 0 402,321 0 0

Ohio

Banks............................................................. 482 7 49 146 123 82 48 10 7 10 0

Assets.......................................................... 49,285,117 26,829 358,775 2,505,308 4,380,875 5,833,082 7,467,320 3,989,606 5,154,278 19,569,044 0

Deposits....................................................... 40,156,082 24,173 319,486 2,235,646 3,798,990 5,079,522 6,405,648 3,383,670 4,125,027 14,783,920 0

Oklahoma

Banks............................................................. 485 52 126 152 91 47 11 2 2 2 0

Assets.......................................................... 17,036,048 188,352 923,160 2,492,412 3,121,069 3,230,388 1,695,280 768,891 1,918,821 2,697,675 0

Deposits....................................................... 14,604,562 163,403 821,615 2,242,379 2,785,444 2,860,181 1,455,012 648,059 1,565,795 2,062,674 0

Oregon

Banks............................................................. 63 8 10 17 11 8 4 2 1 2 0

Assets.......................................................... 11,589,899 18,659 75.804 280,467 369,005 561,850 656,715 719,328 614,296 8,293,775 0

Deposits....................................................... 9,502,515 9,795 64,912 250,050 334,194 507,637 571,092 629,058 529,240 6,606,537 0

Pennsylvania

Banks............................................................. 378 5 31 96 91 71 48 13 10 10 3

Assets.......................................................... 78,536,921 10,605 239,574 1,650,524 3,345,592 4,934,762 7,892,285 5,055,882 6,484,211 23,217,875 25,705,611

Deposits....................................................... 61,903,490 4,334 203,293 1,481,166 2,989,162 4,411,080 6,962,142 4,422,805 5,599,728 18,422,800 17,406,980

Rhode Island

Banks............................................................. 17 2 1 4 3 1 3 — — 3 0

Assets.......................................................... 5,672,218 1,751 9,760 58,620 103,714 53,052 451,846 — 4,993,475 0

Deposits....................................................... 4,529,062 1,210 8,975 49,860 91,147 48,134 386,251 - 3,943,485 0

South Carolina

Banks............................................................. 87 10 9 35 15 11 2 1 3 1 0

Assets.......................................................... 6,281,452 40,771 69,714 547,249 508,185 708,930 426,479 369,193 2,308,193 1,302,738 0

Deposits....................................................... 5,282,889 35,172 59,098 483,098 440,035 627,717 381,416 331,053 1,872,560 1,052,740 0

South Dakota

Banks............................................................. 156 20 51 54 16 8 5 2 0 0 0

Assets.......................................................... 4,216,179 74,481 389.084 838,026 564,223 539,909 941,664 868,792 0 0 0

Deposits....................................................... 3,784,679 65,553 354,653 757,536 510,747 485,162 839,690 771,338 0 0 0

Tennessee

Banks....................................................... 350 17 49 120 89 46 19 2 3 5 0

Assets.......................................................... 20,042,647 54,653 357,279 1,991,217 3,054,416 3,183,533 2,645,892 779,018 1,794,642 6,181,997 0

Deposits.................................................... 17,289,047 47,860 319,513 1,793,580 2,726,389 2,855,373 2,347,703 661,237 1,448,288 5,089,104 0

Texas

Banks............................................................. 1,401 106 232 448 342 160 78 16 9 7 3

Assets.......................................................... 88,921,401 354,002 1,727,000 7,536,856 11,781,442 11,176,623 12,263,542 6,008,972 5,683,503 13,348,747 19,040,714

Deposits.................................................... 74,359,518 304,299 1,536,873 6,772,554 10,570,728 10,034,518 10,797,805 4,945,755 4,760,960 10,263,328 14,372,698

Utah

Banks.......................................................... 68 10 19 19 9 3 4 1 1 2 0

Assets.......................................................... 5,848,372 27,647 134,300 311,403 298,299 202,638 892,458 441,263 690,108 2,850,256 0

Deposits....................................................... 4,950,802 21,732 115,361 279,804 271,698 176,140 743,998 380,427 587,956 2,373,686 0

Vermont

Banks............................................................. 30 4 1 6 10 4 4 1 0 0 0

Assets.......................................................... 2,038,970 12,399 6,183 120,848 330,827 309,477 900,853 358,383 0 0 0

Deposits....................... 1,842,360 11,071 5,454 108,976 301,736 280,218 809,577 325,328 0 0 0

NUMBER OF BANKS AND BRANCHES 139

Digitized for FRASER 

http://fraser.stlouisfed.org/ 

Federal Reserve Bank of St. Louis
Table 105. NUMBER, ASSETS, AND DEPOSITS OF ALL COMMERCIAL BANKS IN THE UNITED STATES (STATES AND OTHER AREAS),

DECEMBER 31, 1978-CONTINUED 

BANKS GROUPED BY ASSET SIZE AND STATE 

(Amounts in thousands of dollars)

Banks with assets of —

State

All

banks

Less 

than 

$5 million

$5.0 million 

to

$9.9 million

$10.0 million 

to

$24.9 million

$25.0 million 

to

$49.9 million

$50.0 million 

to

$99.9 million

$100.0 million 

to

$299.9 million

$300.0 million 

to

$499.9 million

$500.0 million 

to

$999.9 million

$1.0 billion 

to

$4.9 billion

$5.0 billion 

or 

more

Virginia

Banks............................................................. 263 12 35 90 65 32 18 2 4 5 0

Assets.......................................................... 20,937,087 38,183 271,095 1,491,678 2,301,131 1,998,728 3,106,450 883.350 2,515,344 8.331,128 0

Deposits....................................................... 17,854,396 28,616 238,255 1,334,532 2,073,183 1,795,749 2.728,125 738,576 2,115,259 6.802,101 0

Washington

Banks............................................................. 103 10 16 33 18 10 7 3 1 4 1

Assets.......................................................... 20,124,059 26,153 120,807 517,390 614.255 642,222 1,295,501 1,116,084 628,390 7,962,320 7,200,937

Deposits....................................................... 15,223,096 17,512 96,982 461,464 546,603 519,576 694,215 771,463 541,318 6,383,243 5,190,720

West Virginia

Banks............................................................. 231 10 29 84 63 28 16 1 0 0 0

Assets.......................................................... 8,617,368 31,148 217,081 1,455,440 2,160,752 1,936,597 2.415,506 400,844 0 0 0

Deposits....................................................... 7,397,586 24,131 191,494 1,296,249 1,923,483 1,681,694 1,998,071 282,464 0 0 0

Wisconsin

Banks............................................................. 633 46 99 245 156 57 25 1 2 2 0

Assets.......................................................... 23,886,226 161,568 749,766 4,136,500 5,368,247 3,921,385 3,824,514 352,163 1,233,334 4,138,749 0

Deposits....................................................... 19,975,830 134,703 682,470 3,741,048 4,797.281 3.428.699 3.205,273 288,891 928,500 2,768,965 0

Wyoming

Banks............................................................. 88 11 12 27 24 11 3 0 0 0 0

Assets.......................................................... 2,711,701 35,584 83,216 454,384 848.010 730,767 559,740 0 0 0 0

Deposits....................................................... 2,404,163 28,537 74,014 409,033 762,252 638,686 491,641 0 0 0 0

Other areas

Guam

Banks............................................................. 3 1 1 0 0 1 0 0 0 0 0

Assets.......................................................... 68,037 0 8,263 0 0 59,774 0 0 0 0 0

Deposits....................................................... 56,199 0 5,218 0 0 50,981 0 0 0 0 0

Puerto Rico

Banks............................................................. 21 1 0 6 1 0 6 4 0 3 0

Assets.......................................................... 6,846,096 - 0 0 90,275 31,376 0 862,498 1,481.796 0 4,380,151 0

Deposits....................................................... 4,609,872 - 0 0 69,104 24,377 0 644,755 1,304,450 0 2,567,186 0

Virgin Islands

Banks............................................................. 6 2 1 1 1 1 0 0 0 0 0

Assets.......................................................... 157,024 - 0 8,785 14,069 48,871 85.299 0 0 0 0 0

Deposits....................................................... 145,258 - 0 8,285 13,378 40,776 82,819 0 0 0 0 0

11ncludes nondeposit trust companies: 8 in Arizona, 2 in Arkansas, 15 in California, 2 in Delaware, 3 in Florida, 3 in Hawaii, 7 in Illinois, 1 in Indiana, 1 in Iowa, 1 in Massachusetts, 1 in Mississippi, 6 in Missouri, 3 in 

Montana, 7 in Nebraska, 1 in New Hampshire, 1 in New Mexico, 5 in New york, 2 in Oklahoma, 2 in Pennsylvania, 1 in Rhode Island, 1 in South Dakota, 1 in Tennessee, 2 in Utah, 1 in Vermont, 1 in Virginia, 1 in 

Washington, and 5 in Wisconsin.

2Excludes data for branches in U.S. territories of banks headquartered in the United States, and excludes data for 19 insured branches in New York of 3 insured nonmember banks in Puerto Rico and 1 insured branch 

in California of an insured nonmember bank in Puerto Rico.

3Data are from fully consolidated Reports of Condition, including domestic and foreign offices.

140 FEDERAL DEPOSIT INSURANCE CORPORATION

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Federal Reserve Bank of St. Louis
ASSETS AND LIABILITIES OF BANKS

Table 106. Assets and liabilities of all commercial banks in the United States (States and other areas), June 

30, 1978

Banks grouped by insurance status and class of bank

Table 107. Assets and liabilities of all commercial banks in the United States (States and other areas),

December 31, 1978

Banks grouped by insurance status and class of bank

Table 108. Assets and liabilities of all mutual savings banks in the United States (States and other areas),

June 30, 1978, and December 31, 1978 

Banks grouped by insurance status

Table 109. Assets and liabilities of insured commercial banks in the United States (States and other areas),

December call dates, 1973 — 1978 

Table 110. Assets and liabilities of insured commercial banks (domestic and foreign offices), United States 

and other areas, 1973 — 1977 

Table 110A. Assets and liabilities of insured commercial banks (domestic and foreign offices), United States 

and other areas, December 31, 1978.

Table 111. Assets and liabilities of insured mutual savings banks in the United States (States and other 

areas), December call dates, 1973 — 1978 

Table 112. Percentages of assets, liabilities, and equity capital of insured commercial banks operating 

throughout 1978 in the United States (States and other areas), December 31, 1978 

Banks grouped by amount of assets

Table 113. Percentages of assets and liabilities of insured mutual savings banks operating throughout 1978 

in the United States (States and other areas), December 31, 1978 

Banks grouped by amount of assets

Table 114. Distribution of insured commercial banks in the United States (States and other areas), December 31, 1978

Banks grouped according to amount of assets and by ratios of selected items to assets or

deposits

Each insured bank having foreign offices is required to submit a consolidated report including these offices; however, except for table 110 tables on 

pages 143-164 contain only the domestic assets and liabilities of banks. 

Beginning in 1969, all majority-owned premises subsidiaries are fully consolddated; other majority-owned domestic subsidiaries (but not commercial bank 

subsidiaries) are consolidated if they meet any of the following criteria: (a) any 

subsidiary in which the parent bank's investment represents 5 percent or more 

of its equity capital accounts, (b) any subsidiary whose gross operating 

revenues amount to 5 percent of the parent bank's gross operating revenues, 

or (c) (beginning in December 1972) any subsidiary whose "Income (loss)

Commercial banks

Insured banks having resources of $25 million or more are required to report 

their assets and liabilities on the basis of accrual accounting. Where the results 

would not be significantly different, at the option of the bank, trust department 

accounts and certain other accounts may be reported on a cash basis. All 

banks, regardless of size or accounting system, are required to report 

unearned income on loans in the Report of Condition, Schedule A (loans). All 

banks, regardless of size or accounting system, are required to report income 

taxes on a current accrual basis. The income taxes must be computed on the 

amount of income and expense included in the Report of Income.

Digitized for FRASER 

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Federal Reserve Bank of St. Louis
before income taxes and securities gains or losses” amounts to 5 percent or 

more of the "income (loss) before income taxes and securities gains or 

losses" of the parent bank. Beginning in 1972, investments in subsidiaries not 

consolidated in which the bank directly or indirectly exercises effective control 

are reported on an equity (rather than cost) basis with the investment and 

undivided profits adjusted to include the parent's share of the subsidiaries' net 

worth.

In the case of insured banks with branches outside the 50 States, net 

amounts due from such branches are included in "Other assets" and net 

amounts due to such branches are included in "Other liabilities." Branches of 

insured banks outside the 50 States are treated as separate entities but are not 

included in the count of banks. Data for such branches are not included in the 

figures for the States in which the parent banks are located.

From 1969 through 1975, all reserves on loans and securities, including the 

reserves for bad debts set up pursuant to Internal Revenue Service rulings, 

were included in "Reserves on loans and securities" on the liability side of the 

balance sheet. Beginning in 1976, the IRS reserve is divided as follows, (a) the 

"valuation" portion of the reserve (plus any other loan loss reserve) is shown 

on the asset side of the face of the report as an offset to gross loans; (b) the 

"deferred income tax" portion is included in "other liabilities"; and (c) the 

"contingency" portion is included in "undivided profits," or "reserves for contingencies and other capital reserves" (preferably the former). The valuation 

reserve on securities, formerly shown on the liabilities side, is included in 

"reserve for contingencies and other capital reserves" beginning in 1976.

"Unearned income on loans," previously reported in "other liabilities," is 

reported separately as an exclusion from total loans and total assets beginning 

December 31,1976.

Individual loan items are reported gross. Instalment loans, however, are 

ordinarily reported net if the instalment payments are applied directly to the 

reduction of the loan. Such loans are reported gross if, under contract, the 

payments do not immediately reduce the unpaid balances of the loan but are 

assigned or pledged to assure repayment at maturity.

The category "Trading account securities" was added to the condition 

report of commercial banks in 1969 to obtain this segregation for banks that 

regularly deal in securities with other banks or with the public. Banks occasionally holding securities purchased for possible resale report these under 

"Investment securities."

Assets and liabilities held in or administered by a savings, bond, insurance, 

real estate, foreign, or any other department of a bank, except a trust department, are consolidated with the respective assets and liabilities of the commercial department. "Deposits of individuals, partnerships, and corporations" 

include trust funds deposited by a trust department in a commercial or savings 

department. Other assets held in trust are not included in statements of assets 

and liabilities.

Demand balances with, and demand deposits due to, banks in the United 

States, except private banks and American branches of foreign banks, exclude 

reciprocal interbank deposits. (Reciprocal interbank deposits arise when two 

banks maintain deposit accounts with each other.)

In 1976, the caption "Capital notes and debentures" was changed to

"subordinated notes and debentures," to be shown in the liabilities section of 

the Report of Condition. Accordingly, "capital accounts" became the "equity 

capital" section.

In 1978 an abbreviated Report of Condition was instituted for banks with 

less than $100 million in total consolidated assets. Beginning with December

1978, other liabilities for borrowed money include interest-bearing demand 

notes issued to the U.S. Treasury.

Asset and liability data for noninsured banks are tabulated from reports pertaining to the individual banks. In a few cases, these reports are not as detailed 

as those submitted by insured banks.

Additional data on assets and liabilities of all banks as of December 31, 

1977, and June 30, 1978, are shown in the Corporation's semiannual publication Assets and Liabilities—Commercial and Mutual Savings Banks.

Mutual savings banks

The Reports of Condition and Income for mutual savings banks were revised 

in major respects in 1971. Among the changes was a requirement for consolidating the accounts of branches and subsidiaries with the parent bank, on 

a comparable basis with commercial bank reports (see above). A 1972 revision broadened the criteria for consolidated reporting; it also provided for the 

reporting of investments in unconsolidated subsidiaries on an equity basis, 

comparable with commercial bank reporting.

One objective of the revisions in 1971 was to provide a simplified reporting 

form. To this end, the schedules for deposits and securities were condensed 

and simplified.

Several changes were made in the reporting of specific items. Loans are 

reported in somewhat more detail than formerly. In real estate loans, construction loans are shown separately, and loans secured by residential properties 

are detailed as to those secured by 1 - to 4-family properties and by multifamily (5 or more) properties.

Another important change shifted various reserve accounts which had been 

carried as deductions against assets (about $200 million in 1971) into the 

surplus accounts.

Beginning June 30, 1972, mutual savings banks with total resources of $25 

million or more are required to prepare Reports of Condition on the basis of 

accrual accounting. All banks, regardless of size, are required to report income 

taxes on an accrual basis.

Foreign assets of banks

Since June 30, 1974, a consolidated statement of domestic and foreign 

assets and liabilities of U.S. banks has been published semiannually by the 

Corporation in Assets and Liabilities —Commercial and Mutual Savings Banks.

(Beginning with June 30, 1977, foreign office assets and liabilities itemized by 

State are published in Assets and Liabilities —Commercial and Mutual Savings

Banks.) In December 1978, a revised fully consolidated domestic and foreign 

Report of Condition was instituted.

Sources of data

Insured banks: see p. 166; noninsured banks: State banking authorities and 

reports from individual banks.

142 FEDERAL DEPOSIT INSURANCE CORPORATION

Digitized for FRASER 

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Federal Reserve Bank of St. Louis
Table 106. ASSETS AND LIABILITIES OF ALL COMMERCIAL BANKS IN THE UNITED STATES (STATES AND OTHER AREAS),

JUNE 30, 1978 

BANKS GROUPED BY INSURANCE STATUS AND CLASS OF BANK

(Amounts in thousands of dollars)

Insured banks Noninsured banks

Assset, liability or expense item Total

Total

Members of 

Federal Reserve System

Not

members Banks Nondeposit

Total National State System

Total ot

deposit

trust

companies2

Total a s s e ts .................................................................................................................. 1,226,811,222 1,181.635.323 893,037,057 675,652,397 217.384,660 288,598,266 45,175.899 44,520.620 655.279

Cash and due from banks— total......................................................................... 166.914,083 158,605.576 134,197.812 91,140.392 43,057,420 24,407,764 8.308.507 8.256,580 51,927

Cash items in process of collection.............................................................................. 69,513,707 69,406,346 66,610,739 42,637,380 23,973,359 2,795,607 107,361 107,066 295

Demand balances with commercial banks in the United States....................... 42,125,244 38,341,352 23.267,303 14,887,500 8,379,803 15,074,049 3,783,892 3.746,362 37,530

All other balances with depository institutions in the U.S. and with 

banks in foreign countries............................................................................................... 13,739,692 9,344,894 6,047,769 3,980.366 2,067,403 3,297,125 4,394,798 4,389,000 5,798

Balances with Federal Reserve Banks........................................................................... 29,573,900 29,565,825 29,565,777 22,824,689 6,741,088 48 8,075 0 8,075

Currency and coin................................................................................................................... 11,961,540 11,947,159 8,706,224 6,810,457 1,895,767 3,240,935 14,381 14,152 229

Securities— total........................................................................................................ 265.265.377 262,154,356 180,259,997 138,532.714 41,727,283 81,894,359 3,111,021 2,979,465 131,556

U.S. Treasury securities........................................................................................................ 94,507,369 93,457,638 63,361,685 47.530,326 15,831,359 30,095,953 1.049,731 1,007,896 41,835

Obligations of other U.S. Government agencies and corporations3................. 38,941,568 38,566,812 24,217,200 19,599,400 4,617,800 14,349,612 374,756 372,526 2,230

Obligations of States and political subdivisions in the U.S................................. 116,823,564 115,911,368 81,010,888 62,967,559 18,043,329 34,900,480 912,196 877,808 34,388

All other securities................................................................................................................ 14,992,876 14,218,538 11,670,224 8,435,429 3,234,795 2,548,314 774,338 721,235 53,103

Federal funds sold and securities purchased under agreements

to re se ll.................................................................................................................... 49,129,592 44,006,310 34,561,671 27,858,330 6,703.341 9,444,639 5,123,282 4,932,473 190,809

Loans, net.................................................................................................................... 657,146,270 633,416.957 471,570,168 365,803,116 105,767,052 161,846,789 23,729,313 23,680,873 48,440

Plus: Allowances for possible loan losses.................................................................. 7,387,279 7,206,816 5,680,613 4,244,820 1,435,793 1,526,203 180,463 180,035 428

Loans, total.................................................................................................................................. 664,533,549 640,623,773 477,250,781 370,047,936 107,202,845 163,372,992 23,909,776 23,860,908 48,868

Plus: Unearned income on loans................................................................................... 16,293,868 16,233,433 10,830,179 8,999,537 1,830,642 5,403,254 60,435 60,435 0

Loans, gross............................................................................................................... 680,827,417 656.857.206 488,080.960 379.047.473 109,033,487 168,776,246 23,970,211 23.921.343 48,868

Real estate loans —total..................................................................................................... 194,466,700 194,072,142 132,711,372 107,117,013 25,594,359 61,360,770 394,558 390,178 4,380

Construction and land development........................................................................... 24,093,792 24,033,847 17,943,749 13,991,371 3.952.378 6,090,098 59,945 59,945 0

Secured by farmland........................................................................................................ 8,206,458 8,187,723 3,565,146 2,937,594 627.552 4.622,577 18,735 18,212 523

Secured by 1—4 family residential properties.................................................... 105,954,695 105,727,323 73,461,997 60.365,313 13,096,684 32,265,326 227,372 224,084 3.288

Secured by multifamily (5 or more) residential properties......................... 5,365,072 5,344,087 3,901,064 2,798,069 1,102,995 1,443,023 20,985 20,602 383

Secured by nonfarm nonresidential properties.................................................... 50,846,683 50,779,162 33,839,416 27,024,666 6,814,750 16,939,746 67,521 67,335 186

Loans to financial institutions......................................................................................... 45,109,367 35,637,177 33,494,435 22,717,002 10.777,433 2,142,742 9,472,190 9,472,190 0

Loans for purchasing or carrying securities............................................................ 16,187,862 15,677,418 14,647,374 8,521,451 6,125,923 1,030,044 510,444 505,539 4,905

Loans to finance agricultural production and other loans to farmers........... 27,070,112 27,011,475 14,813,042 12,919,968 1,893,074 12,198,433 58,637 58,633 4

Commercial and industrial loans................................................................................... 224,500,545 212,791,169 171,842,593 130,475,963 41,366,630 40,948,576 11,709,376 11,709,093 283

Loans to individuals—total............................................................................................... 154,834,239 154,628,563 106,084,221 86,634,049 19,450,172 48,544,342 205,676 205,566 110

To purchase private passenger automobiles on instalment basis.............. 56.132,760 56,088,199 35,799,321 29,705,735 6,093,586 20,288,878 44,561 44,512 49

Credit cards and related plans.................................................................................... 20,258,046 20,247,198 17.816,200 14,504,290 3,311,910 2,430,998 10,848 10,848 0

To purchase mobile homes (excluding travel trailers)..................................... 9,387,071 9,386,253 6,553,424 5,749,721 803.703 2,832,829 818 813 5

All other instalment loans for household, family and other personal

expenditures...................................................................................................................... 39,499,733 39,405,897 25,747.957 20,816.194 4,931,763 13,657,940 93,836 93,825 11

Single payment loans for household, family and other personal

expenditures......................................................................................................................... 29,556,629 29,501,016 20,167,319 15.858,109 4,309,210 9,333,697 55,613 55,568 45

All other loans............................................................................................................................ 18,658,592 17.039,262 14,487,923 10,662,027 3,825,896 2,551,339 1,619,330 1,580,144 39,186

Total loans and securities................................................................................. 971.541,239 939,577,623 686,391,836 532.194.160 154,197.676 253,185,787 31,963,616 31.592.811 370,805

ASSETS AND LIABILITIES OF BANKS 143

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Table 106. ASSETS AND LIABILITIES OF ALL COMMERCIAL BANKS IN THE UNITED STATES (STATES AND OTHER AREAS),

JU N E 3 0 , 1978 — CON TINUED 

BANKS GROUPED BY INSURANCE STATUS AND CLASS OF BANK

(Amounts in thousands of dollars)

Insured banks Noninsured banks

Assset, liability or expense item Total

Total

Members of 

Federal Reserve System

Not 

members 

of F.R. 

System

Total

Banks

of

deposit

Nondeposit

Total National State companies2

Lease financing receivables.................................................................................................. 6,308,427 6,307,591 5,923,957 4,706,740 1,217,217 383,634 836 725 111

Bank premises, furniture and fixtures, and other assets representing 

bank premises.......................................................................................................................... 19,553,205 19,445,038 14,126,179 11,353,602 2,772,577 5,318,859 108,167 87,381 20,786

Real estate owned other than bank premises................................................................ 2,992,379 2,958,975 2,435,518 1,829,256 606,262 523,457 33,404 15,943 17,461

All other assets.......................................................................................................................... 59,501,889 54,740,520 49,961,755 34,428,247 15,533,508 4,778,765 4,761,369 4,567,180 194,189

Total liabilities and equity capital.......................................................................... 1,226,811,222 1,181,635,323 893,037,057 675,652,397 217,384,660 288,598.266 45,175,899 44.520,620 655.279

Business and personal deposits— to ta l............................................................. 814,625,532 800,407,750 576,204,271 448.441,174 127,763,097 224,203.479 14,217,782 14,191.743 26.039

Individuals, partnerships, and corporations —demand........................................... 282,856,150 281,143,967 208,191,570 159,693,042 48,498,528 72,952,397 1,712,183 1,691,160 21,023

Individuals, partnerships, and corporations—savings......................................... 221.815,219 221.180.985 151.943.732 121.651.070 30.292.662 69,237,253 634.234 632.270 1.964

Individuals and nonprofit organizations—savings................................................. 211,001,245 210,391,492 144.506.281 115.834,518 28.671.763 65.885.211 609,753 607.789 1.964

Corporations and other profit organizations —savings........................................... 10,813,974 10,789,493 7,437,451 5,816,552 1,620,899 3,352,042 24,481 24,481 0

Individuals, partnerships, and corporations —time.................................................... 291,860,056 283,063,584 204,517,200 160,091,782 44,425,418 78,546,384 8,796,472 8,796,188 284

Deposits accumulated for payment of personal loans —time............................. 90,163 90,163 72,141 53,791 18,350 18,022 0 0 0

Certified and officers' checks, travelers’ checks, letters of 

credit —demand.................................................................................... 18,003,944 14,929,051 11,479,628 6,951,489 4,528,139 3,449,423 3,074,893 3,072,125 2,768

Government deposits— to ta l................................................................................. 88,961,056 88,434,444 60,272,525 48,781,923 11,490,602 28,161.919 526,612 526,577 35

United States Government —demand.............................................................................. 8,225,839 8,207,390 5,877,197 4,719,195 1,158,002 2,330,193 18,449 18,414 35

United States Government —savings.............................................................................. 63,022 63,022 52,931 43,766 9,165 10,091 0 0 0

United States Government —time.................................................................................... 999,270 999,000 793,494 703,821 89,673 205,506 270 270 0

States and political subdivisions —demand................................................................ 18,527,984 18,441,142 12,463,533 10,009,601 2,453,932 5,977,609 86,842 86,842 0

States and political subdivisions—savings............................................................... 4,553,165 4,531,310 2,884,063 2,135,267 748,796 1,647,247 21,855 21,855 0

States and political subdivisions —time..................................................................... 56,591,776 56,192,580 38,201,307 31,170,273 7,031,034 17,991,273 399,196 399,196 0

All other deposits— total......................................................................................... 70,553,857 63,938,050 61.128,729 32,979,285 28,149,444 2,809,321 6,615,807 6.594,038 21,769

Demand........................................................................................................................................ 49,679,789 47,165,399 45,643,969 22,456,549 23,187,420 1,521,430 2,514,390 2,492,621 21,769

Savings........................................................................................................................................ 34,272 34,074 30,809 18,482 12,327 3,265 198 198 0

Time.............................................................................................................................................. 20,839,796 16,738,577 15,453,951 10,504,254 4,949,697 1,284,626 4,101,219 4,101,219 0

Total deposits............................................................................................................. 974,140,445 952,780,244 697,605,525 530,202,382 167,403,143 255,174,719 21,360,201 21,312,358 47,843

Demand........................................................................................................................................ 377,293,706 369,886.949 283.655.897 203.829.876 79.826.021 86.231.052 7.406.757 7,361,162 45.595

Savings........................................................................................................................................ 226,465.678 225,809.391 154.911.535 123.848.585 31.062,950 70.897.856 656,287 654.323 1.964

Time.............................................................................................................................................. 370,381.061 357.083.904 259.038.093 202.523.921 56,514.172 98.045.811 13.297.157 13.296.873 284

Miscellaneous liabilities— total............................................................................ 162,460,020 139,793,108 129,301,431 95,334,106 33,967,325 10,491,677 22,666.912 22,334,098 332,814

Federal funds purchased and securities sold under agreements 

to repurchase................................................................................................................. 93,463,393 89,240,327 83,081,243 63,190,787 19,890,456 6,159,084 4,223,066 4,223,066 0

Interest bearing demand notes issued to the U.S. Treasury and other 

liabilities for borrowed money.................................................................................... 14,004,039 9,444,033 9,031,947 5,788,01 1 3,243,936 412,086 4,560,006 4,495.302 64,704

Mortgage indebtedness and liability for capitalized leases................................ 1,762,742 1,757,257 1,425,462 1,006,172 419,290 331,795 5,485 816 4,669

All other liabilities................................................................................................................. 53,229,846 39,351,491 35,762,779 25,349,136 10,413,643 3,588,712 13,878,355 13,614,914 263,441

144 FEDERAL DEPOSIT INSURANCE CORPORATION

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Total liabilities (excluding subordinated notes and debentures).......... 1,136,600,465 1,092,573,352 826,906,956 625,536,488 201,370.468 265,666,396 44,027,113 43,646,456 380,657

Subordinated notes and debentures.................................................................... 5,874,090 5,794,411 4,440,123 3,095,982 1,344,141 1,354,288 79,679 78,327 1,352

Equity capital— total................................................................................................ 84,336,667 83,267,560 61,689,978 47,019,927 14,670,051 21,577,582 1,069,107 795,837 273,270

Preferred stock—par value............................................................................................... 107,486 101,245 32,605 26,193 6,412 68,640 6,241 5,840 401

Preferred stock —shares outstanding (in thousands).............................................. 7,333 7,252 3,725 640 3,085 3,527 81 58 23

Common stock —par value.................................................................................................. 17,960,748 17,765,826 12,743,176 9,740,275 3,002,901 5,022,650 194,922 141,674 53.248

Common stock —shares outstanding (in thousands).............................................. 1,916,794 1,905,831 1,274,992 1,038,952 236,040 630,839 10,963 6,913 4,050

Surplus.................................................................................................................................... 32,478,290 31,956,866 22,905,774 16,878,681 6,027,093 9,051,092 521,424 466,175 55,249

Undivided profits and reserve for contingencies and other

capital reserves........................................................................................................... 33,790,143 33,443,623 26,008,423 20,374,778 5,633,645 7,435,200 346,520 182,148 164,372

PERCENTAGES

Of total assets:

Cash and due from depository institutions.................................................... 13.61 13.42 15.03 13.49 19.81 8.46 18.39 18.55 7.92

U.S. Treasury securities and obligations of other U.S. Government

agencies and corporations.................................................................................................. 10.88 11.17 9.81 9.94 9.41 15.40 3.15 3.10 6 72

All other securities................................................................................................................... 10.74 11.01 10.38 10.57 9.79 12.98 3.73 3.59 13.35

Loans (including federal funds sold and securities purchased under

agreements to resell) .............................................................................. 58.17 57.94 57.31 58.89 52.40 59.88 64.27 64.67 36.58

All other assets................................................................................................................ 6.60 6.45 7.48. 7.12 8.60 3.28 10.46 10.09 35.42

Total equity capital^..................................... ................................ 6.87 7.05 6.91 6.96 6.75 7.48 2.375 1.795 41.70

Of total assets other than cash and U.S. Treasury securities:

Total equity capital^......................................................................................... 8.74 8.96 8.87 8.76 9.26 9.22 2.985 2.265 48.67

Memoranda

Standby letters of credit —total................................................................................... 18,973,556 17,818,040 16,749,967 11,664,412 5,085,555 1,068,073 1,155,516 1,155,516 0

Time certificates of deposits in denominations of $100,000 or more................. 158,075,933 153,217,336 124,263,101 91,354,122 32,908,979 28,954,235 4,858,597 4,858,597 0

Other time deposits in amounts of $100,000 or more ........................................... 27,893,775 25,990,674 22,275,385 18,485,486 3,789,899 3,715,289 1,903,101 1,902,817 284

Number of banks at end of period...................................................................................... 14,729 14,395 5,621 4,616 1,005 8,774 334 246 88

^Includes asset and liability figures for branches of foreign banks (tabulated as banks) licensed to do a deposit business. Capital is not allocated to these branches by the parent banks.

2Amounts shown as deposits are special accounts and uninvested trust funds, with the latter classified as demand deposits of individuals, partnerships, and corporations.

3Because noninsured commercial banks are not required to submit Schedule B, "Securities— Distribution by Remaining Maturity, “ these distributions are not available for noninsured banks and for "All commercial 

banks.”

40nly asset and liability data are included for branches located in "other areas” of banks headquartered in one of the 50 States; because no capital is allocated to these branches, they are excluded from the computation of ratios of equity capital to assets.

5Data for branches of foreign banks referred to in footnote 1 have been excluded in computing this ratio for noninsured banks of deposit and in "total” columns.

Note. Further information on the reports of assets and liabilities of banks may be found on pp. 141-142.

ASSETS AND LIABILITIES OF BANKS 145

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Federal Reserve Bank of St. Louis
Table 107. ASSETS AND LIABILITIES OF ALL COMMERCIAL BANKS IN THE UNITED STATES (STATES AND OTHER AREAS),

DECEMBER 31, 1978 

BANKS GROUPED BY INSURANCE STATUS AND CLASS OF BANK

(Amounts in thousands of dollars)

Insured banks Noninsured banks

Asssel, liability or expense item Total

Total

Members of 

Federal Reserve System

Not 

members 

of F.R. 

System

Total

Banks

of

deposit

Nondeposit

Total National State companies

Total a s s e ts .................................................................................................................. 1,329,012,482 1,273,189,105 961,885,965 726.298.401 235.587.564 311,303.140 55.823,377 54.899,771 923.606

Cash and due from depository institutions—total....................................................... 188.549,964 178,327,313 150,423,347 103,043,189 47,380,158 27,903,966 10,222,651 10,059,115 163,536

Cash items in process of collection.............................................................................. 75,434,689 75,291,809 72,337,585 47,859,893 24,477,692 2,954,224 142,880 142,536 344

Demand balances with commercial banks in the 

United States.......................................................................................................................... 46,970,200 42,572,323 25,548,882 15,277,879 10,271,003 17,023,441 4,397,877 4,245,277 152,600

All other balances with depository institutions 

in the U.S. and with banks in foreign countries......................................................... 16,148,997 10,493,618 6,554,683 4,415,649 2,139,034 3,938,935 5,655,379 5,646,147 9,232

Balances with Federal Reserve Banks........................................................................... 34,400,640 34,398,107 34,398,101 26,442,687 7,955.414 6 2,533 1,234 1,299

Currency and coin.................................................................................................................... 15,595,438 15,571,456 11,584,096 9,047,081 2,537,015 3,987,360 23,982 23,921 61

Securities— T o tal..................................................................................................... 272,157,479 268.777,856 183,888,222 140,681.359 43.206.863 84,889.634 3.379,623 3,072,300 307,323

U.S. Treasury securities........................................................................................................ 90,644,189 89,699,426 60,118,003 45,285,125 14.832,878 29,581,423 944,763 873,515 71,248

Obligations of other U.S. Government

agencies and corporations.............................................. ................. 42,704,588 42,316,375 26,513,332 21,308,168 5,205,164 15,803.043 388,213 380,694 7,519

Obligations of States and political subdivisions 

in the U.S.................................................................................................................................. 124,577,088 123,510,734 86,434,476 66,743,327 19,691,149 37,076,258 1,066,354 930,876 135,478

All other securities.................................................................................................................... 14,231,614 13,251,321 10,822,411 7,344,739 3,477,672 2,428,910 980,293 887,215 93,078

Federal funds sold and securities purchased under

agreements to re se ll.............................................................................................. 54,999,683 48.755,878 37,569,069 31,023,186 6.545.883 11,186.809 6,243.805 6.131,115 112,690

Loans, net....................................................................................................................... 711,880,293 682,866.654 507,672,255 392.751.243 114.921,012 175.194.399 29,013.639 28,956,371 57,268

Plus: Allowances for possible loan losses..................................................................... 7,891,213 7,714,708 6,053,426 4,565,741 1,487,685 1,661,282 176.505 175,923 582

Loans, total..................................................................................................................................... 719,771,506 690,581,362 513,725,681 397,316,984 116,408,697 176,855,681 29,190,144 29,132,294 57,850

Plus-. Unearned income on loans....................................................................................... 17,789,386 17,726,868 11,822,995 9,788,830 2,034,165 5.903,873 62,518 62,198 320

Loans, gross.................................................................................................................. 737,560,894 708,308.232 525.548.678 407.105.816 118.442.862 182.759,554 29.252.662 29.194.492 58.170

Real estate loans —Total........................................................................................................ 214,050,007 213,625,237 145,814,742 118,039,653 27,775.089 67,810,495 424,770 419,002 5,768

Construction and land development.............................................................................. 27,323,235 27,269,354 20,326,538 15,978,933 4,347,605 6,942.816 53,881 53.783 98

Secured by farmland........................................................................................................... 8,501,381 8,480,930 3,684,116 3,057,249 626.867 4.796.814 20,451 19,934 517

Secured by 1-4 family residential properties.......................................................... 118,719,540 118.476,776 82,149,670 67,711,791 14.437.879 36,327,106 242.764 239.507 3.257

Secured by multifamily (5 or more) residential properties............................. 5,742,247 5,723,046 4,106,992 3,013,995 1.092.997 1,616,054 19.201 18.823 378

Secured by nonfarm nonresidential properties....................................................... 53,763,604 53,675,131 35,547,426 28,277,685 7.269.741 18.127,705 88.473 86.955 1.518

146 FEDERAL DEPOSIT INSURANCE CORPORATION

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Federal Reserve Bank of St. Louis
Loans to financial institutions..............................................................................

Loans for purchasing or carrying securities.................................................

Loans to finance agricultural production and

other loans to farmers..........................................................................................

Commercial and industrial loans.....................................................................

Loans to individuals—total....................................................................................

To purchase private passenger automobiles on installment basis.

Credit cards and related plans.....................................................................

To purchase mobile homes (excluding travel trailers).......................

All other instalment loans for household, family

and other personal expenditures................................................................

Single payment loans for household, family and other

personal expenditures.......................................................................................

All other loans..............................................................................................................

Total loans and securities..............................................................................

Lease financing receivables.................................................................................

Bank premises, furniture and fixtures, and other

assets representing bank premises................................................................

Real estate owned other than bank premises..............................................

All other assets........................................................................................................

Total liabilities and equity capital...................................................................

Business and personal deposits—total..........................................................

Individuals, partnerships, and corporations—demand..........................

Individuals, partnerships, and corporations—savings..........................

Individuals and nonprofit organizations—savings................................

Corporations and other profit organizations—savings.......................

Individuals, partnerships, and corporations—time...................................

Deposits accumulated for payment of personal

loans—time...........................................................................................................

Certified and officers' checks, travelers' checks, 

letters of credit—demand..............................................................................

Government deposits—to ta l..............................................................................

United States Government—demand................................................................

United States Government—savings................................................................

United States Government—time.....................................................................

States and political subdivisions—demand.................................................

States and political subdivisions—savings.................................................

States and political subdivisions—time..........................................................

All other deposits—total.......................................................................................

Demand.........................................................................................................................

Savings..........................................................................................................................

Time...............................................................................................................................

55,532,743 43.459,007 41,172,828 27,193,870 13,978,958 2,286,179 12,073,736 12,069,448 4,288

14,854,702 14,380,222 13,338,296 7,983,537 5,354,759 1,041,926 474,480 472,580 1,900

28,250,090 28,191,763 15,464,961 13,430,975 2,033,986 12,726,802 58,327 58,327 0

236,856,746 223,243,865 179,584,844 135,756,018 43,828,826 43,659,021 13,612,881 13,610,791 2,090

167,937,855 167,675,391 115,239.517 93,793,563 21,445,954 52,435,874 262,464 261,278 1,186

61,107,896 61,051,302 39,018,985 32,301,433 6,717,552 22,032,317 56,594 56,077 517

24,508,763 24,496,572 21,689,272 17,600,614 4,088,658 2,807,300 12,191 12.191 O

9,736,157 9,734,878 6,677,296 5.897,301 779,995 3,057,582 1,279 1,279 0

41,971,994 41,853,614 27,323,946 21,753,399 5,570,547 14,529,668 118,380 117,897 483

30,613,045 30,539.025 20,530,018 16,240,816 4,289,202 10,009,007 74,020 73,834 186

20,078,751 17,732,747 14,933,490 10,908,200 4,025,290 2,799,257 2,346,004 2,303,066 42,938

1,039,037,455 1.000,400,388 729,129.546 546,455.788 164,673,758 271.270.842 38.637,067 38,159.786 477.281

7,660,080 7,657,996 7,084,293 5,567,229 1,517,064 573,703 2,084 2,084 0

20,671,128 20,551,097 14,843,212 11,968,634 2,874,578 5,707,885 120,031 92,425 27,606

2,517,740 2,475,901 1,985,969 1,544,012 441,957 489,932 41,839 19,289 22,550

70,756,115 63,776,410 58,419,598 39,719,549 18,700,049 5,356,812 6,799,705 6,567,072 232,633

1,329,012,482 1,273,189,105 961,885,965 726.298.401 235,587,564 311.303,140 55,823,377 54,899.771 923.606

875,036,279 857,642,324 615,760,269 480,270,853 135,489,416 241,882,055 17,393,955 17,346,200 47,755

311,312,230 309,347,998 228,317,516 175,953,695 52,363,821 81,030,482 1,964,232 1,921,131 43,101

217,165,009 216,503,446 147,023,837 118,019,703 29,004,134 69,479,609 661,563 661,431 132

206,185,405 205,568,072 139,673,675 112,232,683 27.440,992 65,894,397 617,333 617,201 132

10,979,604 10,935,374 7,350,162 5,787,020 1,563,142 3,585,212 44,230 44,230 0

327,425,692 316,146,234 228,399,626 178,960,744 49,438,882 87,746,608 11,279,458 11,279,458 0

109,598 109,598 87,539 64,277 23,262 22,059 0 0 0

19,023,750 15,535,048 1 1,931,751 7,272,434 4,659,317 3,603.297 3,488,702 3,484,180 4,522

88,767,961 88,240.496 59.254,334 47,962,022 11,292.312 28.986.162 527,465 526.593 872

2,732,227 2,725,862 1,900,487 1,518,949 381,538 825,375 6,365 6,362 3

82,737 82,733 57,496 51,049 6,447 25,237 4 0 4

866,499 866,499 675,944 520,376 155,568 190,555 0 0 0

19,335,289 19,202,176 12.667,760 10,367,327 2,300,433 6,534,416 133,113 133,113 0

4,314,253 4,298,654 2,603,398 1,995,931 607,467 1,695,256 15,599 14,734 865

61,436,956 61,064,572 41,349,249 33,508,390 7,840,859 19,715.323 372,384 372,384 0

79.445,876 70,501,728 67,392,909 35,969.502 31.423.407 3,108.819 8,944,148 8.939.096 5,052

56,136,821 53,474,157 51,656,332 26,185,705 25,470,627 1,817,825 2,662,664 2,657,612 5,052

45,369 43,766 30,689 23,665 7,024 13,077 1,603 1,603 0

23,263,686 16,983,805 15,705,888 9,760,132 5,945,756 1,277,917 6,279,881 6,279,881 0

ASSETS AND LIABILITIES OF BANKS 147

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Federal Reserve Bank of St. Louis
Table 107. ASSETS AND LIABILITIES OF ALL COMMERCIAL BANKS IN THE UNITED STATES (STATES AND OTHER AREAS),

D ECEM BER 3 1 , 19 7 8 -C O N T IN U E D 

BANKS GROUPED BY INSURANCE STATUS AND CLASS OF BANK

(Amounts in thousands of dollars)

Insured banks Noninsured banks

Assset, liability or expense item Total

Members of 

Federal Reserve System

Not

members

Total

Banks

of

deposit

Nondeposit

Total National State System companies

Total deposits................................................................................................................ 1,043,250,116 1,016,384,548 742,407,512 564,202,377 178,205,135 273.977,036 26,865.568 26,811,889 53,679

Demand........................................................................................................................................... 408,540,317 400,285,241 306,473,846 221,298,110 85,175,736 93,811.395 8,255,076 8,202.398 52,678

Savings........................................................................................................................................... 221,607,368 220,928.599 149,715,420 120,090,348 29,625,072 71,213,179 678,769 677,768 1,001

Time................................................................................................................................................. 413,102,431 395,170,708 286,218,246 222,813,919 63,404,327 108,952,462 17,931,723 17.931,723 0

Miscellaneous liabilities— total............................................................................... 191,280,293 163,522,078 150,643,528 109,823,930 40,819,598 12,878.550 27.758,215 27,182.693 575,522

Federal funds purchased and securities sold under 

agreements to repurchase.................................................... 96,283,820 91,291,670 84,973,167 64.908,212 20,064,955 6,318,503 4,992,150 4.980,833 11,317

Interest bearing demand notes issued to the U.S.

Treasury and other liabilities for borrowed money. . . . .............. 29,287,827 22,791,813 20,723,962 13,266,921 7,457,041 2,067,851 6,496,014 6,419,012 77,002

Mortgage indebtedness and liability for

capitalized leases.................................................................................................................... 2,042,992 2,035,029 1,655,394 1,232,722 422,672 379,635 7,963 739 7,224

All other liabilities.................................................................................................................... 63,665,654 47,403,566 43,291,005 30,416,075 12,874,930 4,112,561 16,262,088 15,782,109 479,979

Total liabilities (excluding subordinated notes

and debentures)................................................................................................... 1,234,530,409 1,179,906,626 893,051,040 674,026,307 219,024,733 286,855,586 54,623,783 53.994,582 629,201

Subordinated notes and debentures....................................................................................... 5,945,067 5,864,838 4,401,101 3,065,280 1,335,821 1,463,737 80,229 78,915 1,314

Equity capital— total................................................................................................... 88,537,005 87,417,641 64,433,824 49,206,807 15,227,017 22,983,817 1,119.364 826,273 293,091

Preferred stock—par value.................................................................................................. 120.187 113,851 32,170 28,772 3,398 81,681 6,336 5,934 402

Preferred stock—shares outstanding (in thousands)................................................. 5,948 5,866 1,632 1,151 481 4,234 82 59 23

Common stock—par value..................................................................................................... 18,355,101 18,157,997 12,940,287 9,911,602 3,028,685 5,217,710 197,104 142,399 54,705

Common stock—shares outstanding (in thousands)................................................. 2,254,594 2,244,476 1,303,588 1,054,938 248,650 940,888 10,118 6,779 3,339

Surplus........................................................................................................................................... 33,714,192 33,202,557 23,493,743 17,290,549 6,203,194 9,708,814 511,635 453,315 58,320

Undivided profits and reserve for contingencies 

and other capital reserves.............................................. 36.347.525 35,943,236 27,967,624 21,975,884 5,991,740 7,975,612 404,289 224,625 179,664

148 FEDERAL DEPOSIT INSURANCE CORPORATION

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Federal Reserve Bank of St. Louis
Percentages

Of total assets:

Cash and due from depository institutions................. 14.19 14.01 15.64 14.19 20.11 8.96 18.31 18.32 17.71

U.S. Treasury securities and obligations of other 

U.S. Government agencies and corporations................................................................ 10.03 10.37 9.01 9.17 8.51 14.58 2.39 2.28 8.53

All other securities.................................................................................................................... 10.44 10.74 10.11 10.20 9.83 12.69 3.67 3.31 24.75

Loans (including Federal funds sold and securities 

purchased under agreements to resell)........................................................................ 58.30 58.07 57.31 58.98 52.19 60.40 63.48 64.23 18.46

All o*her assets.......................................................................................................................... 7.04 6.81 7.93 7.47 9.36 3.36 12.16 11.85 30.55

Total equity capital.................................................................................................................... 6.66 6.87 6.70 6.78 6.47 7.38 2.01 1.51 31.73

Of total assets other than cash and U.S. Treasury securities:

Total equity capital................................................................................................... 8.44 8.70 8.58 8.51 8.80 9.06 2.51 1.88 42.55

Memoranda

Standby letters of credit —total................................... 20,249,831 19,019,271 1 7,790,776 11,693,263 6,097,513 1,228,495 1,230,560 1,230,560 0

Time certificates of deposit in denominations of 

$100,000 or more.................................................................................................................... 184,551,337 178,1 19,339 143,905,524 105,680,494 38,225,030 34,213,815 6,431,998 6,431,998 0

Other time deposits in amounts of $100,000 or more.............................................. 29,421,386 26,827,041 23,133,864 19,274,722 3,859,142 3,693,177 2,594,345 2,594,345 0

Number of banks at end of period....................................................................................... 14,740 14,391 5,564 4,564 1,000 8,827 349 262 87

ASSETS AND LIABILITIES OF BANKS 149

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Federal Reserve Bank of St. Louis
Table 108. ASSETS AND LIABILITIES OF ALL MUTUAL SAVINGS BANKS IN THE UNITED STATES (STATES AND OTHER AREAS),

JUNE 30, 1978, AND DECEMBER 31, 1978 

BANKS GROUPED BY INSURANCE STATUS

(Amounts in thousands of dollars)

Asset, liability, or surplus account item

June 30, 1978 December 31, 1978

Total Insured Noninsured Total Insured Noninsured

Total assets................................................................................................................................................................ 153,165,725 137,667,745 15,497,980 158,216,204 142,352,794 15,863,410

Cash, balances with banks, and collection items— total....................................................................... 2,198,250 1,975,613 222,637 3,779,649 3,570,970 208,679

Currency and coin............................................................................................................................................................... 424,967 353,289 71,678 478,801 411,640 67,161

Demand balances with banks in the United States............................................................................................. 779,348 660,657 118,691 968,325 861,088 107,237

Other balances with banks in the United States.................................................................................................. 773,553 766,938 6,615 2,152,100 2,136,238 15,862

Cash items in process ^ collection............................................................................................................................ 220,382 194,729 25,653 180,423 162,004 18,419

47,540,306 43,252,114 4,288,192 47,847,827 43,546,458 4,301,369

United States Government and agency securities —total................................................................................. 17,768,774 15,867,408 1,901,366 18,032,040 16,215,435 1,816,605

Securities maturing in 1 year or less................................................................................................................. 1,550,037 1,354,087 195.950 1.595.436 1,371,969 223.467

Securities maturing in 1 to 5 years.................................................................................................................... 4,130,637 3,531,436 599,201 3.836,804 3,270,419 566.385

Securities maturing in 5 to 10 years................................................................................................................. 1,971,321 1,674,630 296.691 1,796,268 1,517,745 278.523

Securities maturing after 10 years....................................................................................................................... 10,116,779 9.307,255 809.524 10,803,532 10,055,302 748.230

Corporate bonds..................................................................................................................................................................... 17,869,546 16,716,233 1,153,313 17,390,387 16,376,504 1,013,883

State, county, and municipal obligations.................................................................................................................... 3,015,514 2,948,680 66,834 3,358,312 3,297,215 61,097

Other bonds, notes, and debentures............................................................................................................................ 4,075,434 3,634,645 440,789 4,280,175 3,587,862 692,313

Corporate stock —total....................................................................................................................................................... 4,811,038 4,085,148 725,890 4,786,913 4,069,442 717,471

Bank....................................................................................................................................................................................... 557.871 395.171 162.700 554,289 387,736 166.553

Other.................................................................................................................................................................................... 4,253,167 3.689.977 563.190 4,232,624 3,681,706 550.918

Federal funds sold and securities purchased under agreements to resell........................................ 3,360,326 3,025,758 334,568 2,124,608 1,889,991 234,617

Other loans— total.............................................................................................................................................. 96,015,044 85,708,417 10,306,627 100,265,735 89,478,402 10,787,333

Real estate loans—total.................................................................................................................................................... 91,626,048 81,926.715 9,699,333 95,217,878 85,110,267 10,107,611

Construction loans.......................................................................................................................................................... 1,444,577 1,300,404 144.173 1,687,918 1,506,918 181.000

Secured by farmland.............................................................................................................................................. 46,659 37,929 8.730 48,193 38,425 9.768

Secured by residential properties:

Secured by 1— to 4—family residential properties:

Insured by Federal Housing Administration................................................................................. 11,062,735 10,411,496 651.239 10,835,874 10,221.738 614.136

Guaranteed by Veterans Administration....................................................................................... 11,992,407 11,028,650 963,757 11,895,197 10.941.774 953.423

Not insured or guaranteed by FHA or VA.......................................................................................... 36,769,505 30.636,633 6.132.872 40,017,561 33.464.642 6.552.919

Secured by multi family (5 or more) residential properties:

Insured by Federal Housing Administration.......................................................................................... 2.969,710 2.938.085 31,625 2,970,824 2.940.909 29.915

Not insured by FHA........................................................................................................................................... 12,305,885 11.720.942 584,943 12,320,741 11.780.535 540.206

Secured by other properties..................................................................................................................................... 15,034,570 13.852.576 1,181.994 15,441,570 14.215.326 1.226.244

Loans to domestic commercial and foreign banks................................................................................................ 11,351 11,351 0 97,670 97,670 0

Loans to other financial institutions............................................................................................................................. 66,063 65,890 173 117,426 117,296 130

Loans to brokers and dealers in securities.............................................................................................................. 0 0 0 2,000 2,000 0

Other loans for purchasing or carrying securities.................................................................................................. 1,825 1,293 532 2,278 1,688 590

Loans to farmers (excluding loans on real estate)................................................................................................ 1,318 1,318 0 1,167 1,167 0

Commercial and industrial loans.................................................................................................................................. 420,628 410,855 9,773 385,176 375,396 9,780

150 FEDERAL DEPOSIT INSURANCE CORPORATION

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Federal Reserve Bank of St. Louis
Loans to individuals for personal expenditures...........

All other loans (icluding overdrafts) ........................................................................................................................

3,783,043

104,768

3,216,884

74,111

566,159

30,657

4,328,283

113,857

3,685,543

87,375

642,740

26,482

Total loans and secu ritie s.............................................................................................................. 146,915.676 131,986,289 14.929,387 150,238,170 134.914.851 15,323,319

Bank premises, furniture and fixtures, and other assets representing bank premises.......................... 1,355,659 1.206,642 149,017 1,423,555 1,266,509 157,046

Real estate owned other than bank premises....................................................................................................... 465,477 420,531 44,946 430,301 382,005 48.296

Investments in subsidiaries not consolidated.......................................................................................................... 140,785 121,155 19,630 138,106 119,910 18,196

Other assets......................................................................................................................................................................... 2,089,878 1,957,515 132,363 2,206,423 2,098,549 107,874

Total liabilities and surplus accounts.............................................................................................................. 153,165,725 137,667,745 15,497,980 158,216,204 142,352,794 15,863,410

Deposits— to tal.................................................................................................................................................. 139,657,342 125,700,097 13,957,245 143,684,179 129,449,932 14,234,247

Savings and time deposits —total.............................................................................................................................. 137,824,190 123,939,877 13,884,313 141,778,046 127,600,309 14,177,737

Savings deposits........................................................................................................................................................... 77,946,128 69,651,486 8294,642 72,340,668 64,291.598 8,049,070

Deposits accumulated for payment of personal loans................................................................................ 1 1 0 37 37 0

Fixed maturity and other time deposits.......................................................................................................... 59,878,061 54,288,390 5,589,671 69,437,341 63,308,674 6,128,667

Demand deposits—total.................................................................................................................................................. 1,833,152 1,760,220 72,932 1,906,133 1,849,623 56,510

Miscellaneous liabilities— to ta l................................................................................................................... 3,004,951 2,673,337 331.614 3,633,409 3,250,493 382,916

Securities sold under agreements to repurchase................................................................................................. 436,104 433,960 2,144 594,397 578,706 15,691

Other borrowings................................................................................................................................................................. 732,668 709,259 23,409 1,076,612 1,025,607 51,005

Other liabilities.................................................................................................................................................................... 1,836,179 1,530,118 306,061 1,962,400 1,646,180 316,220

Total liabilities..................................................................................................................................... 142,662,293 128,373,434 14,288.859 147,317,588 132,700,425 14,617,163

Minority interest in consolidated subsidiaries.......................................................................................... 60 60 0 122 60 62

Surplus accounts— total................................................................................................................................... 10,503,372 9,294.251 1,209,121 10,898,494 9.652.309 1,246,185

Capital notes and debentures....................................................................................................................................... 350,601 350,017 584 353,956 353,956 0

Other surplus accounts..................................................................................................................................................... 10,152,771 8,944,234 1,208,537 10,544,538 9,298,353 1,246,185

PERCENTAGES

Of total assets:

Cash and balances with other banks........................................................................................................................ 1.4 1.4 1.4 2.4 2.5 1.3

U.S. Government and agency securities........................................................................................................................ 11.6 11.5 12.3 11.4 11.4 11.5

Other securities......................................................................................................................................................................... 19.4 19.9 15.4 18.8 19.2 15.7

Loans (including federal funds sold and securities purchased under

agreements to resell).................................................................................................................................................. 64.9 64.5 68.7 64.7 64.2 69.5

Other assets............................................................................................................................................................................... 2.6 2.7 2.2 2.7 2.7 2.1

Total surplus accounts........................................................................................................................................................ 6.9 6.8 7.8 6.9 6.8 7.9

Of total assets other than cash and U.S. Government obligations:

Total surplus accounts........................................................................................................................................................... 7.9 7.8 9.0 8.0 7.9 9.0

Number of banks............................................................................................................................................................................ 467 324 143 465 325 140

ASSETS AND LIABILITIES OF BANKS 151

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Federal Reserve Bank of St. Louis
Table 109. ASSETS AND LIABILITIES OF INSURED COMMERCIAL BANKS IN THE UNITED STATES (STATES AND OTHER AREAS),

DECEMBER CALL DATES, 1 9 7 3 -1 9 7 8

(Amounts in thousands of dollars)

Asset, liability, or expense item Dec. 31. 19732 Dec. 31, 19742 Dec. 31, 19752 Dec. 31, 1976 Dec. 31, 1977 Dec. 31, 1978

Total a s s e ts ............................................................................................................................. 820,689.664 899,056,643 938,888,209 1,011,273,832 1,137,794,616 1,273,189,105

Cash and due from banks— total.................................................................................. 116,940.118 126,069,289 129,022,793 130,210,127 160,382,169 178,327,313

Cash items in process of collection.................................................................................... 44,662,237 47,279,797 47,332,735 48,368,126 66,451,288 75,291,809

Demand balances with commercial banks in the United States............................. 30,129,625 34,399,470 32,168,664 33,022,240 39,238,490 42,572,323

All other balances with depository institutions in the U.S. and with banks in 

foreign countries....................................................................................................................... 3,558,726 5,546,812 10,387,072 10,664,363 11,351,612 10,493,618

Balances with Federal Reserve Banks................................................................................. 27,820,742 27,116,210 26,779,065 25,964,340 29,339,126 34,398,107

Currency and coin.......................................................................................................................... 10,768,788 11,727,000 12,355,257 12,191,058 14,001,653 15,571,456

Securities— total................................................................................................................ 188,230,007 193,877,525 227.831.583 249,964,940 258,404,575 268,777,856

U.S. Treasury securities............................................................................................................ 55.293.390 51,867,904 81,008,162 96.884.312 95.960.613 89.699,426

Obligations of other U.S. Government agencies and corporations..................... 27.537.760 31,090,271 33,285,855 34.324.587 35.812.026 42,316,375

Obligations of States and political subdivisions in the U.S.................................... 91.227.221 96,771,409 100.801,799 103.505.149 112.898.620 123,510,734

All other securities..................................................................................................................... 14.171.636 14,147,941 12,735,767 15.250.892 13.733.316 13,251,321

Federal funds sold and securities purchased under agreements to resell . . . 34,379.920 38,944,238 37.361.788 45,855,864 49,881,414 48,755,878

Loans, net............................................................................................................................ 447.786,537 493,064,162 488.721,442 518,737,329 591,327,780 682,866,654

Plus: Allowances for possible loan losses......................................................................... 5,274,856 5,871,660 6,070,344 6,195,279 694,793 7,714,708

Loans, total............................................................................................................................................ 453,061,393 498,935,822 494,791,786 524,932,608 598,022,573 690,581,362

Plus: Unearned income on loans.......................................................................................... 6,694,937 7,258,209 7,489,884 12,625,341 14,702,996 17,726,870

Loans, g ross........................................................................................................................ 459.756.330 506,194,031 502,281,670 537,557.949 612,725,569 708.308,232

Real estate loans—total............................................................................................................ 118,789,396 131,739,920 136,196,154 150,986,919 178.632,320 213,625,237

Construction and land development1............................................................................ 0 0 0 17.347.914 21,389,331 27,269,354

Secured by farmland........................................................................................................... 5.419.112 6,030,121 6.370.212 6.718.186 7,730,264 8.480.930

Secured by / — to 4—family residential properties......................................... 67.794.978 74,580,012 77.029.917 81.110,248 96,757,037 118.476.776

Secured by multi-family (5 or more) residential properties............................. 6.922.145 7,543,920 5.899.737 4,440.412 4,907,100 5.723.046

Secured by nonfarm nonrosidential properties....................................................... 38.653.161 43,585.867 46.896.288 41,370,159 47,848,588 53.675.131

Loans to financial institutions................................................................................................... 39,695,760 45,204,515 38,967,664 35,848,326 36,816,981 43,459,007

Loans for purchasing or carrying securities...................................................................... 11,925,517 9,187,663 10,879,410 15,088,146 17,110,918 14,380,222

Loans to finance agricultural production and other loans to farmers.................... 17,149,902 18,226,897 20,138,952 23,216,369 25,713,073 28,191,763

Commercial and industrial loans............................................................................................. 158,690,504 184,074,531 175,946,906 178,635,361 197,076,515 223,243,865

Loans to individuals—total............................................................................................................ 100,393,366 103,692,681 106,848,796 118,863,153 141,257,446 167,675,391

To purchase private passenger automobiles on instalment basis....................... 33.480.736 32,942,938 33.509.251 39.824.875 49,861.799 61.051.302

Credit cards and related plans............................................................................................. 9.130,563 11,126,994 12.351.630 14.430.339 18,475.596 24.496,572

To purchase mobile homes (excluding travel trailers)............................................... 8.380,191 9,001,883 8.667.742 8.737.928 9.125.428 9,734,878

All other instalment loans for household, family and other personal

expenditures.................................................................................................................... 25,647,787 27,631,598 29.099.650 31.549.012 35,852,029 41,853,614

Single payment loans for household, family and other personal

expenditures........................................................................................................... 23.754,089 22,989,268 23,220,523 24.320.999 27,942.594 30,539.025

All other loans . . 13,111.885 14,067,824 13,303,788 14,919,675 16,118,316 17,732,747

Total loans and securities............. 670,396,464 725,885,925 753,914,813 814.558,133 899.613,769 1,000,400,388

152 FEDERAL DEPOSIT INSURANCE CORPORATION

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Federal Reserve Bank of St. Louis
Lease financing receivables..................................................................................................

Bank premises, furniture and fixtures, and other assets representing bank

premises...........................................................................................................................................

Real estate owned other than bank premises........................................................................

All other assets..................................................................................................................................

2,136,002

12,788,824

433,997

17,994,259

3,056,755

14,288,523

811,239

28,944,912

4,413,014

15,598,231

1,909,555

34,029,803

5,119,280

16,702,977

2,894,011

41,789,304

5,810,261

18,344,595

3,095,496

50,548,326

7,657,996

20,551,097

2,475,901

63,776,410

Total liabilities and equity capital................................................................................... 820,689,664 899,056,643 938,888,209 1,011,273,832 1,137.794.616 1,273,189,105

Business and personal deposits— to tal.................................................................... 557,465,547 606.374,826 647,239,798 697,387,703 777,177,835 857,642,324

Individuals, partnerships, and corporations—demand................................................. 233,115,295 237,069,468 247,869,290 256,806,660 287,843,595 309,347,998

Individuals, partnerships, and corporations—savings................................................. 127,775,141 136,074,273 160,653,632 197,660,954 215,197,708 216,503,446

Individuals and nonprofit organizations—savings................................................. 127,775,141 136,074,273 160,653,632 189.028.878 204.453.839 205,568,072

Corporations and other profit organizations—savings 1..................................... 0 O O 8.632.076 10.743.869 10,935374

Individuals, partnerships, and corporations—time......................................................... 185,200,805 222,482,603 227,691,785 231,211,673 259,896,427 316,146,234

Deposits accumulated for payment of personal loans—time.................................. 513,460 369,690 279,512 144,385 100,303 109,598

Certified and officers' checks, travelers' checks, letters of credit —demand . . 10,860,846 10,378,792 10,745,579 11,564,031 14,139,802 15,535,048

Government deposits— to ta l........................................................................................ 73,661,450 74,215,373 70,707,733 71,946,030 84,641,977 88,240.496

United States Government —demand.................................................................................... 9,886,922 4,822,299 3,126,631 3,042,572 7,341,318 2,725,862

United States Government —savings!................................................................................ 0 0 0 56,735 58,209 82,733

United States Government—time......................................................................................... 440,649 500,147 588,481 686,053 828,852 866,499

States and political subdivisions —demand..................................................................... 18,747,431 18,706,776 18.879,180 17,989,214 19,208,773 19,202,176

States and political subdivisions — savings"! .................................................................. 0 0 0 6,050,857 4,789,442 4,298,654

States and political subdivisions —time.............................................................................. 44,586,448 50,186,151 48,113,441 44,120,599 52,415,383 61,064,572

All other deposits— total................................................................................................ 50,494,156 65,522,043 63,078.870 61.593,152 67,453,933 70,501,728

Demand.............................................................................................................................................. 36,497,159 43,322,732 40,800,386 44.566.366 50.222.044 53.474.157

Savings1........................................................................................................................................... 0 O 0 113.672 28.235 43.766

Time................................................................................................................................................... 13,996,997 22,199,311 21,998,972 16.913.114 17.203.654 16,983,805

Total deposits.................................................................................................................... 681,621,153 746,112,242 780,746,889 830,926,885 929.273,745 1,016,384,548

Demand.............................................................................................................................................. 309,107,653 314,300,067 321,421,066 333.968.843 378.755.532 400.285,241

Savings............................................................................................................................................. 127,775,141 136,074,273 160,653.632 203,882,218 220.073.594 220,928.599

Time................................................................................................................................................... 244,738,359 295,737,902 298,672,191 293.075.824 330.444,619 395,170,708

Miscellaneous liabilities— total................................................................................... 79,820,189 88,107,647 87,786.577 102.975,877 123,501,267 163,522,078

Federal funds purchased and securities sold under agreements to repurchase. 50,469,996 51,217,439 52,189,647 70,298,626 82,952,495 91,291,670

Interest bearing demand notes issued to the U.S. Treasury and other

liabilities for borrowed money...................................................................................... 7,118,442 4,814,560 4,604,259 5,080,647 6,694,413 22,791,813

Mortgage indebtedness and liability for capitalized leases............................... 771,519 725,190 775,396 804,996 1,038,857 2,035,029

All other liabilities................................................................................................................. 21,460,232 31,350,458 30,217,275 26,791,608 32,815,502 47,403,566

Total liabilities (excluding subordinated notes and debentures)............. 761,441,342 834,219,889 868,533,466 933,902,762 1,052,775,012 1,179,906,626

Subordinated notes and debentures....................................................................... 4,117,351 4,258,989 4,398,892 5,122,527 5,739,194 5,864,838

Equity capital— total................................................................................................... 55,130,971 60,577,765 65,955,851 72,248.543 79,280,410 87.417.641

Preferred stock—par value....................................................................................... 65,650 43,460 47,881 67,328 98,791 113,851

Common stock—par value......................................................................................... 13,846,071 14,788,893 15,565,026 16,221,264 17,265,237 18,157,997

Surplus............................................................................................................................... 23,593,350 25,312,574 26,706,053 28,894,323 31,085,492 33,202,557

Undivided profits and reserve for contingencies and other capital

reserves.................................................................................................................................. 17,625,900 20,432,838 23,636,891 27,065,628 30,830,890 35,943,236

ASSETS AND LIABILITIES OF BANKS 153

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Federal Reserve Bank of St. Louis
Table 109. ASSETS AND LIABILITIES OF INSURED COMMERCIAL BANKS IN THE UNITED STATES (STATES AND OTHER AREAS),

DECEMBER CALL DATES, 1 9 7 3 -1 978-CONTINUED

(Amounts in thousands of dollars)

Asset, liability, or expense item Dec. 31. 19732 Dec. 31, 19742 Dec. 31. 19752 Dec. 31, 1976 Dec. 31, 1977 Dec. 31, 1978

PERCENTAGES

Of total assets:

Cash and due from depository institutions......................................................................... 14.25 14.02 13.74 12.88 14.10 14.01

U.S. Treasury securities and obligations of other U.S. Goverment agencies 

and corporations............................................................................................................................. 10.09 9.23 12.17 12.97 11.58 10.37

All other securities............................................................................................................................. 12.84 12.34 12.09 11.74 11.13 10.74

Loans (including federal funds sold and securities purchased under agreements 

to resell)........................................................................................................................................... 59.39 59.83 56.68 56.44 56.94 58.07

All other assets................................................................................................................................... 3.42 4.59 5.31 5.96 6.25 6.81

Total equity capital............................................................................................................................. 6.72 6.74 7.02 7.14 6.97 6.87

Of total assets other than cash and U.S. Treasury securities:

Total equity capital.............. .............................................................................................................. 8.50 8.40 9.05 9.21 8.99 8.70

Number of banks at end of period................................................................................................... 13,976 14,228 14,384 14,411 14,412 14,391

1Not available before 1976.

2Where possible, figures are restated to reflect current reporting requirements. For amounts on an "as reported" basis, see Annual Reports of prior years.

154 FEDERAL DEPOSIT INSURANCE CORPORATION

Digitized for FRASER 

http://fraser.stlouisfed.org/ 

Federal Reserve Bank of St. Louis
Table 110. ASSETS AND LIABILITIES OF INSURED COMMERCIAL BANKS (DOMESTIC AND FOREIGN OFFICES), 

UNITED STATES AND OTHER AREAS, 1 9 7 4 -1 9 7 7

Dec. 31, 1974 Dec. 31, 1975 Dec. 31, 1976 June 30, 1977 Dec. 31, 19771

Total assets.....................................................................................................................

Cash and due from banks.......................................................................................................................................

Securities—total.........................................................................................................................................................

U.S. Treasury securities....................................................................................................................................

Obligations of U.S. Government agencies and corporations............................................................

Obligations of States and political subdivisions...................................................................................

Other bonds, notes, and debentures..........................................................................................................

Corporate stock......................................................................................................................................................

Trading account securities..............................................................................................................................

Federal funds sold and securities purchased under agreements to resell........................................

1,045,972,427

178,295,259

197,019,318

51,886,435

31,088,271

96,800,855

9.201,132

8.042,625

1,095,388,957

189,406,997

231,527,434

80,963,492

33,281,405

100,873,178

10.710,644

5,698,715

1,182,390,845

203,772,449

254,383,382

96,874,136

34,323,582

103,588,597

9,594,671

1.750,989

8.251.407

1,228,366,375

208,283,772

259,474,871

97,233,796

34,389,521

108,720,777

9,864,455

1,809,269

7,457,053

1,339,393,026

242,983,142

264,525.796

96,026,151

35,818,251

113,019,592

10,542,996

1,853,806

7,265,000

39,005,103 36,992,511 45,861,131

620,866,854

6,347,839

627,214.693

5.816,434

17,242,930

2,974,073

954,500

11,864,784

18,654,308

40,899,161

656,224,103

6,674,638

662,898,741

6,186,765

17,944,356

3,162,192

941,211

14,433,352

20,816,592

49,845,033

715,851,991

6,894,344

722,746,335

6,977,301

19,010,491

3,134,042

987,244

14,280,877

21,797,109

Loans, total....................................................................................................................................................................

Direct lease financing.................................................................................................................................

Bank premises, furniture and fixtures, and assets representing bank premises.........................

Real estate owned other than bank premises.........................................................................................

Investments in unconsolidated subsidiares and associated companies.............................................

Customers liability on acceptances outstanding...........................................................................................

Other assets.........................................................................................................................................................

Total liabilities and equity capital....................................................................................

Total deposits...........................................................................................................................................................

Federal funds purchased and securities sold under agreements to repurchase.........................

Other liabilities for borrowed money................................................................................................................

Mortgage indebtedness.............................................................................................................................................

Acceptances executed and outstanding..........................................................................................................

Other liabilities...........................................................................................................................................................

Total liabilities (excluding subordinated notes and debentures)...................................................

Subordinated notes and debentures...................................................................................................................

Reserves on loans and securities—tota|2.......................................................................................................

580,596,623

3,273,680

14,674,995

828,853

750,218

10,632,747

20,895,631

586,055,773

4,054,812

16,054,291

1,935.839

789,718

7,095,983

21,475,599

1,045,972,427 1,095,388,957 1,182,390,845 1,228,366,375 1,339,393,026

871,225,194

50,980,062

8.368,159

725,166

14,131,257

28,426,938

973,856,776

4,261,373

8,779,607

8.466.353

144,446

168,808

59,074,671

915,856,039

52,609,050

7,934,301

774.450

11.291,867

29,031.187

1,017,496,894

4,422,484

9,193,375

8,791,680

212,260

189,435

64,276,204

991,913,006

70,435,494

9,510,108

826,196

12,048,179

20,171,609

1,104,904,592

5,220,566

1,022,062,067

75,820,815

11,563,041

856,439

14,594,467

22,334,880

1,147,231,709

5,450,465

1,116,617,556

83,315,006

13,146,839

1,048,297

14,432,321

25,711,530

1,254,271,549

5,830,565

Reserve for losses on loans............................................................................................................................

Other reserves on loans....................................................................................................................................

Reserves on securities...................................................................................................................

Equity capital —total................................................................................................................................................

Memoranda

Standby letters of credit outstanding3...................................

Time certificates of $100,000 or more;3

Time certificates of deposit..............................................................................

72,265,687 75,684,201 79,290,912

16,410,420

114,172,181

23,307,985

17,198,835

112,053,745

24,503.572

20,043,593

135,756,267

Other time deposits...................................................................................................................... 26,366,568

Number of banks.............................................................................................................................................................. 14,228 14,384 14,411 14,441 14,412

1 For more detailed 19 7 7 data, see Assets and Liabilities, Commercial and Mutual Savings Banks, December 31, 1977.

2Changes in the reporting of loan losses beginning in 19 7 6 are discussed on page 142.

3Data not available prior to 1 9 7 6 .

ASSETS AND LIABILITIES OF BANKS 155

Digitized for FRASER 

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Federal Reserve Bank of St. Louis
Table 110A. ASSETS AND LIABILITIES OF INSURED COMMERCIAL BANKS (DOMESTIC AND FOREIGN OFFICES). 

UNITED STATES AND OTHER AREAS, DECEMBER 31, 1978'

Domestic only 

banks and 

reporting 

branches

Banks with foreign offices

Consolidated 

Total — Columns 1 

and 4

Foreign offices 

and Edge and 

agreement 

subsidiaries Domestic offices

Consolidated

reports

Total Assets ................................................................................................................................................. 660.586,728 239,209,434 608.421,045 847.630.479 1,508.217.207

Cash and due from depository institutions........................................................................................................... 71,047,051 96,181,149 106,832.727 203,013,876 274,060,927

Cash items in process of collection and unposted debits........................................................................ 17,115,855 1,883,165 58,020.871 59.904,036 77,019,891

Demand balances with commercial banks in the U.S................................................................................. 25,597,499 4,610,696 16,959,173 21,569,869 47,167,368

Time and savings balances with commercial banks in U.S..................................................................... 2,673,411 1,118,505 983.473 2,101.978 4,775,389

Balances with other depository institutions in the U.S.............................................................................. 2,063,973 230,887 75,165 306,052 2,370,025

Balances with banks in foreign countries........................................................................................................ 1,347.451 83,642,267 3,080.125 86,722,392 88,069,843

With foreign branches of other U.S. banks............................................................................................... N/A 18,391,587 529,493 18,921,080 N/A

With other banks in foreign countries........................................................................................................ N/A 65,250.680 2,550,632 67,801,312 N/A

Balances with central banks.................................................................................................................................. 12,553,829 4,459,660 21,866,740 26.326,400 38,880,229

Balances with Federal Reserve banks........................................................................................................ 12,553,829 566,068 21,844,206 22,410,274 34,964,103

Balances with other central banks................................................................................................................. N/A 3,893,592 22,534 3,916,126 N/A

Currency and coin....................................................................................................................................................... 9,695.033 235,969 5,847,180 6,083,149 15,778.182

Securities— total......................................................................................................................................... 174,474.133 7,724,550 94,121,950 101,846.500 276.320.633

U.S. Treasury securities........................................................................................................................................... 59,070,019 41,607 30,629,407 30,671,014 89.741.033

Obligations of U.S. Government agencies and corporations.................................................................. 30,077,067 4,278 12,239,201 12,243,479 42.320,546

Obligations of States and political subdivisions.......................................................................................... 80,683,209 203,293 42,645,915 42,849,208 123,532,417

Other bonds, notes, and debentures.................................................................................................................... 3,836,329 6,611,403 1,544,865 8.156,268 11,992,597

Corporate stock............................................................................................................................................................ 483,294 171,520 954,465 1,125,985 1,609,279

Trading account securities..................................................................................................................................... 324,215 692,449 6,108,097 6,800,546 7,124,761

Federal funds sold and securities purchased under agreements to resell................................. 24,919,434 199,066 23,809,210 24,008,276 48,927,710

366,064,370 143,903,749 314,040,754 457.944.503 824.008.873

Less: reserve for possible loan losses.............................................................................................................. 3,575,398 242,417 4,138,994 4,381,411 7,956,809

Loans, total........................................................................................................................................................................... 369,639,768 144.146,166 318,179,748 462,325.914 831,965,682

Less: unearned income on loans.......................................................................................................................... 12,473,258 1,026,444 5,175.576 6,202,020 18,675,278

Loans, gross........................................................................................................................................................................ 382,113,026 145,172,608 323.355,326 468,527,934 850,640,960

Real estate loans (including only loans secured primarily by real estate)..................................... 138,175,458 4,335,879 74.579.460 78,915,339 217,090,797

Loans to financial institutions............................................................................................................................... 4,505,362 22,780,815 38,812,812 61,593,628 66,098,990

To real estate investment trusts and mortgage companies............................................................... 1,095,496 80,891 7,218.826 7,299,717 8,395,213

To commercial banks in the U.S..................................................................................................................... 560,278 2,348,304 4,202,316 6,550,620 7,110,898

To U.S. branches and agencies of foreign banks........................................................................... N/A 447,723 1,670,141 2,117,864 N/A

To other commercial banks in the U.S................................................................................................... N/A 1,900,581 2,532,175 4,432,756 N/A

To banks in foreign countries......................................................................................................................... 228,130 15,540,309 9,922,082 25.462,391 25,690,521

To foreign branches of other U.S. banks............................................................................................. N/A 377,057 466,657 843,714 N/A

To other banks in foreign countries........................................................................................................ N/A 15,163,252 9,455.425 24,618,677 N/A

To finance companies in the U.S................................................................................................................... 633,144 284,177 8,066,647 8,350,825 8,983,969

To other financial institutions......................................................................................................................... 1,988,314 4,527,134 9,402,941 13.930,075 15,918,389

Loans for purchasing or carrying securitites (secured and unsecured).............................................. 2,574,469 961.145 11,805,591 12,766,736 15,341,205

Loans to farmers......................................................................................................................................................... 23.951.853 455.782 4,238,840 4,694,622 28,646,475

Commercial and industrial loans (except those secured primarily by real estate)....................... 93.274,518 85,542,095 128,818,212 214,360.307 307,634,824

To U.S. addressees (domicile)....................................................................................................................... N/A 3.379.190 119,830,128 123,209.318 N/A

To non-U.S. addressees (domicile).............................................................................................................. N/A 82,162,905 8.988,084 91,150.989 N/A

Loans to individuals for household, family and other personal expenditures................................ 113,376,495 4,787,396 53,740,786 58,528,182 171,904,677

All other loans............................................................................................................................................................ 6,254,872 26,309.497 11,359,623 37.669.120 43,923,992

Loans to foreign government and official institutions........................................................................ N/A 22,991,591 2,429,658 25,421,249 N/A

Other loans............................................................................................................................................................... N/A 3.317,906 8,929,965 12,247,871 N/A

Direct lease financing.................................................................................................................................................... 1,696,007 1,405,246 5,955.448 7,360,694 9,056,701

Bank premises, furniture and fixtures, and other assets representing bank premises. . . 12,363,283 824,681 8,149,433 8,974,114 21,337,397

Real estate owned other than bank premises................................................................... 922,603 119,810 1,464,912 1,584,722 2,507,325

156 FEDERAL DEPOSIT INSURANCE CORPORATION

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Federal Reserve Bank of St. Louis
Investments in unconsolidated subsidiaries and associated companies................................................ 47,549 -1,337,566 2,361,274 1,023,708 1,071,257

Customer's liability of acceptances outstanding............................................................................................... 343,721 3,797,994 18,657,383 22,455,377 22,799,098

Other assets....................................................................................................................................................................... 8,708,577 -13,609,245 33,027,954 19,418,709 28,127,286

Total liabilities and equity capital....................................................................................................... 660,586,728 239,209.434 608,421,045 847,630.479 1,508,217,207

Total deposits.............................................................................................................................................................. 573,201,984 220,619,569 439,811,012 660,430,581 1,233,632,565

Individuals, partnerships and corporations.............................................................................................. 496,960,075 68,307,952 342,052,178 410,360,130 907,320,205

Demand.............................................................................................................................................................. 171,258,720 N/A 137,446,898 N/A N/A

Savings.............................................................................................................................................................. 146,437,961 N/A 69,656,522 N/A N/A

Tim e.................................................................................................................................................................... 179,263,394 N/A 134,948,758 N/A N/A

U.S. Government................................................................................................................................................... 2,067,676 203,789 1,590,578 1,794,367 3,862,043

Demand.............................................................................................................................................................. 1.629,925 N/A 1,079,468 N/A N/A

Savings.............................................................................................................................................................. 56,212 N/A 26.456 N/A N/A

Tim e.................................................................................................................................................................... 381,545 N/A 484,654 N/A N/A

States and political subdivisions in the U.S............................................................................................. 57,227,388 225,363 27,145,004 27,370,367 84,597,755

Demand.............................................................................................................................................................. 14,275,286 N/A 4,876,954 N/A N/A

Savings.............................................................................................................................................................. 3,566,455 N/A 714,585 N/A N/A

Tim e.................................................................................................................................................................... 39,385,647 N/A 21,553,465 N/A N/A

Foreign governments and official institutions......................................................................................... 155,951 33,490,372 8,128,766 41,619,138 41,775,089

Demand.............................................................................................................................................................. 40,300 N/A 1,797,711 N/A N/A

Savings.............................................................................................................................................................. 1.139 N/A 16,101 N/A N/A

Tim e.................................................................................................................................................................... 114,515 N/A 6,314,954 N/A N/A

Deposits of commercial banks in the U.S.................................................................................................. 8,679,749 15,696.373 42,652,868 58,349,241 67,028,990

Demand.............................................................................................................................................................. 7,147,904 N/A 35,310,734 N/A N/A

Savings.............................................................................................................................................................. 3,188 N/A 414 N/A N/A

Tim e.................................................................................................................................................................... 1,528,657 N/A 7,341,720 N/A N/A

Deposits of banks in foreign countries....................................................................................................... 475,196 99,950,405 9,404,204 109,354,609 109,829,805

Demand.............................................................................................................................................................. 228,107 N/A 8.222,583 N/A N/A

Savings.............................................................................................................................................................. 0 N/A 195 N/A N/A

Tim e.................................................................................................................................................................... 247,089 N/A 1,181,426 N/A N/A

All other deposits................................................................................................................................................ 983,252 N/A N/A N/A 983,252

Demand.............................................................................................................................................................. 719,797 N/A N/A N/A N/A

Savings.............................................................................................................................................................. 22,729 N/A N/A N/A N/A

Tim e................................................................................................................................................................. 240,726 N/A N/A N/A N/A

Certified and officers checks, travelers checks, and letters of credit sold for cash. . . 6,652,697 2,745,315 8,837,414 11.582,729 18,235,426

Federal funds purchased and securities sold under agreements to repurchase . . 21,137,970 109,666 70,153,700 70,263,366 91,401,336

Interest bearing demand notes and other liabilities for borrowed money. . 6,218,268 10,181,142 16,569.445 26,750,587 32,968,855

Mortgage indebtedness................................... 905,452 43,135 1,128,767 1,171,902 2,077,354

Acceptarces executed and outstanding . . 344.036 3,838,014 18,839.318 22,677,332 23,021,368

Other liabilities................................................. 7,591,874 4,100,385 19,823,468 23,923,853 31,515,727

Total liabilities (excluding subordinated notes and debentures) . . 609,399.584 238,891,911 566,325,710 805.217,621 1,414,617,205

Subordinated notes and debentures. . 2,575,147 293,832 3,289,691 3,583,523 6,158,670

Equity capital— total.................................................................. 48,611,997 23,691 38,805,644 38.829.335 87,441,332

Memoranda

Standby letters of credit outstanding. . . . 2,428,292 6,852,521 16,438,715 23,291,236 25,719,528

Time certificates of 8100,000 or more:

Time certificates of deposits................................ 67,456,718 N/A 110,068,449 N/A N/A

Other time deposits............................................................................................................................ 9,423,712 N/A 17,139,007 N/A N/A

Number of banks.............................................................................................................................................................. 14,236 _ 155 14,391

Number of reporting branches.................................................................................................................................... 19 - - 19

1 Totals for items that are not explicitly reported are derived mathematically. 

N/A Not available.

ASSETS AND LIABILITIES OF BANKS 1 57

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Federal Reserve Bank of St. Louis
Table 111. ASSETS AND LIABILITIES OF INSURED MUTUAL SAVINGS BANKS IN THE UNITED STATES (STATES AND OTHER AREAS),

DECEMBER CALL DATES, 1 9 7 3 -1 9 7 8

(Amounts in thousands of dollars)

Asset, liability, or surplus account item Dec. 31, 1973 Dec. 31, 1974 Dec. 31, 1975 Dec. 31, 1976 Dec. 31, 1977 Dec. 31. 1978

Total a s s e ts .......................................................................................................................................................... 93,012,515 95,589,401 107,280,765 120,839,827 132,201,371 142,352,794

Cash, balances with banks, and collection items— to ta l.................................................................

Currency and coin............................................................................................................................................................

Demand balances with banks in the United States.........................................................................................

Other balances with banks in the United States...............................................................................................

Cash items in process of collection......................................................................................................................

1,847,776

226,905

711,172

817,495

92,204

2,053,353

268,102

683,943

1,022,757

78,551

2.195,390

308,887

706,116

1,091,274

89,113

2,188,926

338,001

925,344

807,240

118,341

2,214,478

386.038

761,624

922,001

144,815

3,570,970

411,640

861,088

2,136,238

162,004

Securities— total.............................................................................................................................................. 21,871,412 22,684,614 30,421,034 37,984.627 42.219.724 43,546,458

United States Government and agency securities—total..............................................................................

Securities maturing in 1 year or less...........................................................................................................

Securities maturing in 1 to 5 years.............................................................................................................

Securities maturing in 5 to 10 years.............................................................................................................

Securities maturing after 10 years................................................................................................................

5,971,200

831,719

1.513,476

789,936

2,836,069

5,967,835

712.274

1.604.165

694.251

2.957.145

9,468,682 

1.312.116

2.761.242

1.167.218

4.228.106

13,194,506

1.981.205

3.237.461

1.383.006

6.592.834

15.496,605 

1.857.506

3.427.509

1.751,417

8.460.173

16,215,435

1,371.969

3.270.419

1.517.745

10.055,302

State, county, and municipal obligations.............................................................................................................

Corporate bonds...............................................................................................................................................................

Other bonds, notes, and debentures......................................................................................................................

907,013

10,026,920

1,713,867

882,620

10,560,303

1,856,557

1,488,631

13,503,561

2,329,685

2,301,574

15.781,623

3,019,191

2,770,854

16,449,941

3,503,057

16,376,504

3,297,215

3,587,862

Corporate stock—total.......................................................

Bank................................................................................................................................................................................

Other..............................................................................................................................................................................

3,252,412

364,066

2,888,346

3,417,299

348.290

3.069.009

3,630,475

374.851

3.255.624

3,687,733 

387,161

3.300.572

3,999,267

409.239

3.590.028

4,069,442

387.736

3.681.706

Federal funds sold and securities purchased under agreements to re se ll................................... 1,252,753 964,856 897,063 1,322,316 1,880,491 1,889,991

Other loans— t o t a l.........................................................................................................................................

Real estate loans—total.............................................................................................................................................

Construction loans...................................................................................................................................................

Secured by farmland.............................................................................................................................................

Secured by residential properties:

Secured by 1— to 4—family residential properties:

Insured by Federal Housing Administration...................................................................................

Guaranteed by Veterans Administration............................................................................................

Not insured or guaranteed by FHA or VA.................................

Secured by multifamily (5 or more) residential properties:

Insured by Federal Housing Administration................................

Not insured by FHA.....................................................................................................................................

Secured by other properties..............................................

Loans to domestic commercial and foreign banks.................................

Loans to other financial institutions...........................................

Loans to brokers and dealers in securities.....................................................................................................

Other loans for purchasing or carrying securities......................................................................................

Loans to farmers (excluding loans on real estate)...................................................................................

Commercial and industrial loans.........................................................................................................................

Loans to individuals for personal expenditures............................................................................................

All other loans (including overdrafts)..............................................................................................................

65,870,714

63,946,513 

1,090,262

51,160

12,828,775

11,728,249

17,087,533

1.523,751

9,416,887

10.219.896

13,679

29,473

4,441

2,221

1,323

173,322

1,665,365

34,377

67,449,217

65,339,748 

821.250

49.185

12.052.069

11.501.239

18.275.751

1.688.126

10.076.268

10.875.860

18,339

26,324

743

930

1,416

175,360

1,812,329

74,028

70,812,040

68,371,859

824.494

48.239

11.587.451

11.342.670

20.123.915

1.949.245

10,693.613

11.802.232

25,275

32,714

0

1,480

1,456

288,976

2,052,147

38,133

7 5.990,422

72,820,626

854,499

46,364

11,147.343

11.221.051

23.393.029

2.428.166

10.874.242

12.855.932

26,955

57,234

0

1,494

918

599,849

2,412,478

70,868

82,307,795

78,739,467 

1.117.143

39.101

10.587.327

11.027,870

28.437.445

2,695,114

11,360,282

13,475,185

10,254

56,679

30,000

1,285

1,407

506,372

2,892,234

70,097

89,478,402

85,110,267

1.506.918

38.425

10.221.738

10.941.774

33.464.642

2.940.909

11.780.535

14.215.326

97,670

117,296

2,000

1,688

1,167

375,396

3,685,543

87,375

Total loans and securities............................................................................................................. 88,994,879 91,098,687 102,130,137 115,297,365 126,408,010 134,914,851

158 FEDERAL DEPOSIT INSURANCE CORPORATION

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Federal Reserve Bank of St. Louis
Bank premises, furniture and fixtures, and other assets representing bank premises.........................

Real estate owned other than bank premises..........................................................................................................

Investments in subsidiaries not consolidated..........................................................................................................

Other assets.............................................................................................................................................................................

760,289

180,671

64,883

1,164,017

857,879

233,775

82,292

1,263,415

963,664

418,233

94,253

1.479,088

1,063,867

490,059

112,754

1,686,856

1,161.551

444,012

115,357

1,857,963

1,266,509

382,005

119,910

2,098,549

Total liabilities and surplus acco u n ts......................................................................................................... 93,012.515 95,589,401 107,280,765 120,839.827 132,201,371 142,352.794

Deposits— total............................................................................................................................................... 84,890,128 86,814,415 98,126,107 110,998,759 121,265,988 129,449,932

Savings and time deposits—total........................................................................................................................... 84,008,571 85,904,825 97,133,340 109,895,767 119,734,061 127,600,309

Savings deposits..................................................................................................................................................... 57,591.849 56.497.626 62.050.661 67.295.029 70.382.619 64.291.598

Deposits accumulated for payment of personal loans.......................................................................... 476 295 430 1 19 37

Fixed maturity and other time deposits....................................................................................................... 26.416.246 29.406.904 35.082.249 42,600.737 49.351.423 63.303.674

Demand deposits—to tal............................................................................................................................................. 881,557 909,590 992,767 1,102.992 1,531,927 1,849,623

Miscellaneous liabilities— total................................................................................................................. 1,609,538 1,952,443 1,815,359 1,865,047 2,125.609 3,250,493

Securities sold under agreements to repurchase.............................................................................................. 26,089 217,561 108,715 69.118 169,166 578,706

Other borrowings........................................................................................................................................................... 445,901 667,256 465,279 356,329 483,710 1,025,607

Other liabilities................................................................................................................................................................. 1,137,548 1,067,626 1,241,365 1,439,600 1,472,733 1,646,180

Total liabilities................................................................................................................................ 86,499,666 88,766,858 99,941,466 112,863,806 123,391,597 132,700,425

Minority interest in consolidated subsidiaries..................................................................................... 0 0 70 61 61 60

Surplus accounts— to tal.............................................................................................................................. 6,512,849 6,822,543 7,339,229 7,975,960 8,809,713 9,652,309

Capital notes and debentures.................................................................................................................................... 114,953 169,460 190,279 213,264 353,386 353,956

Other surplus accounts............................................................................................................................................... 6,397,896 6,653,083 7,148,950 7,762,696 8,456,327 9,298,353

PERCENTAGES

Of total assets:

Cash and balances with other banks........................................................................................................................... 2.0 2.1 2.0 1.8 1.7 2.5

U.S. Government and agency securities..................................................................................................................... 6.4 6.2 8.8 10.9 11.7 11.4

Other securities.................................................................................................................................................................... 17.1 17.5 19.5 20.5 20.2 19.2

Loans (including federal funds sold and securities purchased under agreements to resell).............. 72.2 71.6 66.8 64.0 63.7 64.2

Other assets............................................................................................................................................................................. 2.3 2.5 2.8 2.8 2.7 2.7

Total surplus accounts........................................................................................................................................................ 7.0 7.1 6.8 6.6 6.7 6.8

Of total assets other than cash and U.S. Government and agency securities:

Total surplus accounts........................................................................................................................................................ 7.6 7.8 7.7 7.6 7.7 7.9

Number of banks....................................................................................................................................................................... 322 320 329 329 323 325

ASSETS AND LIABILITIES OF BANKS 159

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Federal Reserve Bank of St. Louis
Table 112. PERCENTAGES OF ASSETS, LIABILITIES, AND EQUITY CAPITAL OF INSURED COMMERCIAL BANKS OPERATING THROUGHOUT 1978

IN THE UNITED STATES (STATES AND OTHER AREAS) DECEMBER 31, 1978 

BANKS GROUPED BY AMOUNT OF ASSETS

Banks with assets of —

Asset, liability, or equity capital item Less $5.0 million $10.0 million $25.0 million $50.0 million $100.0 million $300.0 million $500.0 million $1.0 billion $5.0 billion

All than to to to to to to to to or

banks $5 million $9.9 million $24.9 million $49.9 million $99.9 million $299.9 million $499.9 million $999.9 million $4.9 billion or more

Total a s s e ts .............................................................................................. 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0%

Cash and due from depository institutions............................................ 14.0 10.5 9.2 9.0 9.1 9.5 10.9 13.2 13.8 15.4 18.7

U.S. Treasury securities!.............................................................................. 7.1 15.2 12.8 10.1 .9.2 8.6 8.8 8.1 8.3 6.5 4.2

Obligations of other U.S. Government agencies

and corporations.......................................................................................... 3.3 9.4 8.1 6.5 5.0 4.5 4.3 3.9 3.0 2.6 1.6

Obligations of States and political subdivisions'!............................. 9.7 3.9 7.1 11.0 13.1 13.7 13.3 11.9 11.4 9.2 5.5

All other securities.......................................................................................... 1.0 .6 .5 .5 .6 .7 .7 .9 1.1 1.0 1.7

Federal funds sold and securities purchased under

agreements to resell......................................................................... 3.8 7.0 5.1 3.9 3.2 2.9 3.4 4.5 5.0 4.9 3.2

Loans, net........................................................................................................... 53.6 51.1 54.5 56.0 56.4 56.7 55.0 53.3 52.9 53.1 51.3

Unearned income on loans........................................................................... 1.4 1.4 1.6 1.9 2.1 2.1 1.9 1.7 1.6 1.1 .7

Allowance for possible loan losses.......................................................... .6 .4 .4 .5 .5 .5 .6 .6 .6 .6 .7

Loans, gross........................................................................................................ 55.6 52.8 57.5 58.4 59.0 59.3 57.5 55.6 55.1 54.8 52.7

Real estate loans....................................................................................... 16.8 13.8 17.2 20.6 22.5 22.6 21.9 18.8 17.9 14.7 11.2

Loans to financial institutions............................................................. 3.4 .1 .1 .1 .2 .3 .6 1.3 2.0 4.2 7.5

Loans for purchasing or carrying securities................................ 11 .1 .1 .1 .2 .2 .4 1.0 .9 1.1 2.4

Loans to finance agricultural production and other

loans to farmers.................................................................................... 2.2 16.2 14.2 9.5 5.6 2.9 1.4 1.1 .8 .8 .7

Commercial and industrial loans....................................................... 17.5 7.3 8.7 10.4 11.8 14.3 15.7 16.5 17.1 19.3 21.9

Loans to individuals for household, family and other

personal expenditures......................................................................... 10.8 11.1 11.7 12.9 13.9 14.4 13.8 13.4 12.6 10.6 6.1

Single payment loans for personal expenditures....................... 2.4 3.2 3.4 3.8 3.8 3.7 3.0 2.7 2.6 2.2 1.0

All other loans............................................................................................. 1.4 1.0 1.0 1.0 .9 .9 .8 .9 1.2 1.8 1.8

All other assets...................................... 7.4 2.3 2.6 2.8 3.3 3.5 3.8 4.2 4.5 7.4 13.8

Total liabilities and equity capital..................................................... 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0

Deposits—total................................................................................................... 79.8 88.4 89.7 89.8 89.3 88.7 86.8 84.2 82.0 75.8 70.3

Demand deposits................................................................................. 31.5 36.5 31.6 30.5 29.8 29.8 30.3 32.2 33.5 31.7 32.4

Time and savings................................................................................. 48.3 51.8 58.1 59.3 59.6 58.9 56.5 52.0 48.6 44.1 37.9

Individuals, partnerships, and corporations—demand.............. 24.3 32.6 27.7 26.6 26.2 26.0 25.6 26.0 26.8 24.9 20.7

Individuals, partnerships, and corporations—time and savings 41.8 45.0 51.7 53.2 53.3 52.0 49.0 44.3 41.4 37.6 32.0

U.S. Government.......................................................................................... .3 .2 .3 .4 .3 .3 .3 .3 .3 .3 .2

States and political subdivisions.......................................................... 6.6 9.8 8.9 8.5 8.3 8.7 9.1 9.0 8.0 7.1 2.9

Certified and officers' checks................................................................ 1.2 .7 .8 .9 1.0 1.0 1.0 1.1 1.3 1.0 1.7

All other deposits....................................................................................... 5.6 .2 .2 .2 .2 .7 1.9 3.5 4.2 4.9 12.8

Federal funds purchased and securities sold under

agreements to repurchase................................................................ 7.2 .3 .5 .7 1.0 1.5 3.3 5.6 7.5 11.0 11.6

Interest-bearing demand notes issued to the U.S. Treasury

and other liabilities for borrowed money......................................... 1.8 .0 .1 .2 .3 .5 .9 1.4 1.6 2.4 3.0

All other liabilities^....................................................................................... 3.7 .4 .5 .7 1.1 1.2 1.3 1.4 1.6 3.6 8.0

Subordinated notes and debentures.......................................................... .5 .1 .1 .2 .2 .3 .5 .5 .6 .7 .4

Equity capital...................................................................................................... 6.9 10.9 9.1 8.3 7.9 7.5 7.1 6.8 6.4 6.1 6.5

Number of banks................................................................................................... 14,243 874 2,317 4,829 3,210 1,614 936 166 135 139 23

1 Securities held in trading accounts are included in "Other assets."

2|ncludes minority interest in consolidated subsidiaries.

Note: For income and expense data by size of bank, see tables 118 and 119. Dollar amounts of assets and liabilities (in $000) of insured commercial banks by size of bank are contained in Assets and LiabilitiesCommercial and Mutual Savings Banks (with 1978 Report of Income), December 31, 1978.

160 FEDERAL DEPOSIT INSURANCE CORPORATION

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Federal Reserve Bank of St. Louis
Table 113. PERCENTAGES OF ASSETS AND LIABILITIES OF INSURED MUTUAL SAVINGS BANKS OPERATING THROUGHOUT 1978 IN

THE UNITED STATES (STATES AND OTHER AREAS), DECEMBER 31, 1978 

BANKS GROUPED BY AMOUNT OF ASSETS

Asset, liability, or surplus account item All

banksl

Banks with assets of —

Less 

than 

$10.0 million

$10.0 million 

to

$24.9 million

$25.0 million 

to

$49.9 million

$50.0 million 

to

$99.9 million

$100.0 million 

to

$299.9 million

$300.0 million 

to

$499.9 million

$500.0 million 

to

$999.9 million

$1 billion 

or 

more

Total a ssets................................................................................................................ 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0%

Cash and due from banks............................................................................................... 2.5 3.4 2.2 2.6 2.2 2.4 2.6 2.5 2.5

United States Government and agency securities................................................. 11.4 7.0 13.1 8.7 8.4 10.3 12.0 12.7 11.4

Corporate bonds........................................................................................................... 11.5 6.0 6.3 6.1 5.6 7.0 7.3 9.3 14.3

State, county and municipal obligations.................................................................. 2.3 .0 1.3 .6 .6 1.3 1.2 2.2 2.9

Other securities.......................................................................................... 5.4 4.4 4.7 5.4 5.0 5.0 4.0 5.2 5.8

Federal funds sold and securities purchased under...........................................

agreements to resell........................................................................................................ 1.3 3.5 1.6 1.7 1.4 1.3 1.9 1.5 1.2

Other loans and discounts....................................................................................... 62.9 73.6 69.3 72.5 74.3 70.1 68.6 63.7 59.2

Real estate loans —total............................................................................................ 59.8 65.7 63.4 66.7 68.3 66.2 64.6 60.3 56.8

Construction loans.................................................................................................. 1.1 1.0 .4 1.2 1.8 1.9 1.8 1.0 .7

Secured by farmland.................................................................................... .0 .7 .6 .2 .2 .1 .0 .0 .0

Secured by residential properties:...............................................................

Insured by FHA.................................................................................................. 9.2 .6 1.2 1.5 2.7 3.7 7.0 9.9 11.2

Guaranteed by VA.................................................................................... 7.7 .2 3.6 2.9 3.8 4.5 7.1 7.9 8.8

Not insured or guaranteed by FHA or VA................................... 31.8 56.3 52.2 54.6 53.3 48.7 41.7 31.4 24.8

Secured by other properties.............................................................................. 10.0 6.9 5.4 6.3 6.5 7.3 7.0 10.1 11.3

Commercial and industrial loans........................................................................... .3 .3 .5 .1 .3 .1 .3 .2 .3

Loans to individuals for personal expenditures.................... 2.6 7.6 5.2 5.6 5.5 3.6 3.5 3.1 1,8

All other loans including overdrafts............................................................. .2 .0 .2 .1 .2 .2 .2 .1 .3

Other assets . . 2.7 2.2 1.5 2.4 2.5 2.6 2.4 2.9 2.7

Total liabilities and surplus accounts............................................................... 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0

Deposits —total................................................................................................................... 90.9 91.3 90.5 90.7 90.9 90.9 90.8 91.1 90.9

Savings deposits........................................................................................................... 45.2 63.1 50.8 54.3 50.2 48.3 45.1 48.7 42.9

Deposits accumulated for payment of personal loans............................... .0 .0 .0 .0 .0 .0 .0 .0 .0

Fixed maturity and other time deposits......................................................... 44.4 28.0 38.9 35.3 39.7 41.5 44.5 40.9 46.7

Demand deposits........................................................................................................... 1.3 .2 .8 1.1 1.0 1.1 1.2 1.5 1.3

Miscellaneous liabilities . . 2.3 .1 1.5 1.4 1.5 1.9 2.3 2.0 2.5

Surplus accounts................................................................................................................. 6.8 8.6 8.0 7.9 7.6 7.2 6.9 6.9 6.6

Capital notes and debentures................................................................................. 2 1.3 .3 .2 ./ ./ .2 .2 .3

Other surplus accounts............................................................................................ 6.6 7.3 7.7 7.7 7.5 7.1 6.7 6.7 6.3

Number of banks...................................................................................................................... 325 3 12 29 77 98 31 35 40

' Dollar amoonts of assets and liabilities (in $000) of insured mutual savings banks in Assets and Liabilities—Commercial and Mutual Savings Banks (with 1977 Report of Income). December 31, 1977.

ASSETS AND LIABILITIES OF BANKS 161

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Federal Reserve Bank of St. Louis
Table 114. DISTRIBUTION OF INSURED COMMERCIAL BANKS IN THE UNITED STATES (STATES AND OTHER AREAS),

DECEMBER 31, 1978

BANKS GROUPED ACCORDING TO AMOUNT OF ASSETS AND BY RATIOS OF SELECTED ITEMS TO ASSETS OR DEPOSITS

Banks with assets of —

Ratios 

(In percent)

All

banks

Less 

than 

$5 million

$5.0 million 

to

$9.9 million

$10.0 million 

to

$24.9 million

$25.0 million 

to

$49.9 million

$50.0 million 

to

$99.9 million

$100.0 million 

to

$299.9 million

$300.0 million 

to

$499.9 million

$500.0 million 

to

$999.9 million

$1.0 billion 

to

$4.9 billion

$5.0 billion 

or 

more

Ratios of cash and due from depository

institutions to total assets of —

Less than 3.0...................................................................... 143 14 35 60 21 8 4 0 0 1 0

3.0 to 5 .9 9 ................................................................................. 2,741 168 537 1,074 614 241 93 7 4 3 0

6.0 to 8 .9 9 ................................................................................. 4,937 298 807 1,723 1,198 587 259 35 19 11 0

9.0 to 1 1.99............................................................................... 3,349 183 463 1,071 794 460 275 37 36 28 2

12.0 to 14 .9 9 ............................................................................ 1,697 104 252 518 339 190 181 42 34 30 7

15.0 to 1 7 .9 9 ............................................................................ 783 84 120 190 155 84 75 17 20 33 5

18.0 to 20.99 ............................................................................ 344 36 59 107 48 26 25 11 13 15 4

21.0 to 23.99 ............................................................................ 160 22 36 42 21 7 10 6 5 11 0

24.0 or more........................................................................... 237 64 43 51 24 12 16 11 4 7 5

Ratios of U.S. Treasury securities to total assets of—

Less than 3.0.............................................................................. 2,023 133 253 712 477 232 135 31 18 25 7

3.0 to 5 .9 9 ................................................................................. 2,946 128 360 954 730 400 230 55 36 44 9

6.0 to 8 .9 9 ................................................................................. 2,813 132 358 924 674 395 218 32 38 37 5

9.0 to 1 1.99............................................................................... 2,125 113 348 731 500 216 167 16 18 15 1

12.0 to 1 4 .9 9 ............................................................................ 1,423 91 278 479 323 151 74 7 10 10 0

15.0 to 1 7 .9 9 ............................................................................ 998 80 229 351 190 89 41 10 4 3 1

18.0 to 20.99 ........................................................................... 664 57 155 230 129 51 28 6 6 2 0

21.0 to 23.99 ............................................................................ 464 52 112 163 75 39 16 3 3 1 0

24.0 to 26.99 ............................................................................ 241 29 60 91 36 14 9 1 0 1 0

27.0 to 29.99 ............................................................................ 193 37 47 59 30 10 7 2 0 1 0

30.0 to 32.99 ............................................................................ 126 26 40 32 14 8 4 2 0 0 0

33.0 to 35.99 ............................................................................ 104 22 27 36 12 3 3 1 0 0 0

36.0 or more.............................................................................. 271 73 85 74 24 7 6 0 2 0 0

162 FEDERAL DEPOSIT INSURANCE CORPORATION

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Ratios of obligations of States and political subdivisions to total assets of—

Zero................................................................................................

Less than 1.0...............................................................................

1.0 to 2 .4 9 .................................................................................

2.5 to 4 .9 9 .................................................................................

5.0 to 7 .4 9 .................................................................................

7.5 to 9 .9 9 .................................................................................

10.0 to 1 2 .4 9 ............................................................................

12.5 to 14 .9 9 ............................................................................

15.0 to 1 7 .4 9 ............................................................................

17.5 to 19 .9 9 ............................................................................

20.0 to 24.99 ............................................................................

25.0 or more...............................................................................

1,110

534

590

1,035

1,419

1,863

2,149

2,050

1,542

986

838

275

331

138

135

132

87

45

45

18

13 

12

14 

3

364

160

204

325 

324

326 

253 

172

96

58

44

26

328

127

156

326

517

729

802

644

514

311

286

96

Ratios of net loans to total assets of—

Less than 2 0 ............................................................................... 138 58 26 27

20.0 to 24.99 ............................................................................ 104 29 27 24

25.0 to 29.99 ............................................................................ 220 49 51 66

30.0 to 34.99 ............................................................................ 385 53 86 146

35.0 to 39.99 ............................................................................ 607 72 111 208

40.0 to 44.99 ............................................................................ 920 88 180 298

45.0 to 49.99 ............................................................................ 1,496 107 268 509

50.0 to 54.99 ............................................................................ 2,257 116 353 702

55.0 to 59.99 ............................................................................ 2,827 133 393 869

60.0 to 64.99 ............................................................................ 2,777 136 395 941

65.0 to 69.99 ............................................................................ 1,803 73 296 697

70.0 to 74.99 ............................................................................ 669 38 118 276

75.0 or more............................................................................... 188 21 48 73

Ratios of total demand deposits to total deposits of—

Less than 2 0 ............................................................................... 676 27 83 260

20.0 to 24.99 ............................................................................ 1,721 51 259 619

25.0 to 29.99 ............................................................................ 2,764 119 442 994

30.0 to 34.99 ............................................................................ 2,960 175 507 1,000

35.0 to 39.99 ............................................................................ 2,346 147 405 744

40.0 to 44.99 ............................................................................ 1,687 122 271 541

45.0 to 49.99 ............................................................................ 1,039 92 171 329

50.0 to 54.99 ............................................................................ 529 63 86 165

55.0 to 59.99 ............................................................................ 255 39 47 73

60.0 to 64.99 ............................................................................ 151 27 32 52

65.0 or more............................................................................... 263 111 49 59

63 16 7 1 0 0 0

66 21 15 2 3 2 0

56 12 13 5 3 5 1

134 61 22 7 6 14 8

264 113 53 14 17 22 8

389 165 120 25 24 36 4

515 269 164 35 28 36 2

583 340 213 41 23 76 0

467 251 159 17 19 6 0

326 180 82 11 5 1 0

258 145 76 8 6 1 0

93 42 14 0 1 0 0

15 6 4 1 1 0 0

16 5 3 0 0 0 0

31 15 6 1 0 1 0

49 27 19 4 0 0 1

108 49 36 9 8 5 1

179 85 47 12 11 15 5

318 124 100 24 20 22 4

515 271 191 40 32 34 3

704 386 226 37 39 36 4

668 387 191 22 15 17 5

424 197 86 15 8 7 0

156 56 24 1 0 0 0

31 7 5 0 1 2 0

182 74 37 5 5 3 0

441 224 109 10 3 5 0

679 320 164 23 11 11 1

662 350 209 24 13 18 2

508 283 168 30 35 22 4

342 187 133 31 29 27 4

225 98 57 22 14 28 3

95 42 36 13 15 11 3

49 19 9 3 5 9 2

16 7 6 4 3 2 2

15 11 10 1 2 3 2

ASSETS AND LIABILITIES OF BANKS 163

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Federal Reserve Bank of St. Louis
Table 114. DISTRIBUTION OF INSURED COMMERCIAL BANKS IN THE UNITED STATES (STATES AND OTHER AREAS),

DECEMBER 31, 1978 (CONTINUED)

BANKS GROUPED ACCORDING TO AMOUNT OF ASSETS AND BY RATIOS OF SELECTED ITEMS TO ASSETS OR DEPOSITS

Banks with assets of —

Ratios 

(In percent)

All

banks

Less 

than 

$5 million

$5.0 million 

to

$9.9 million

$10.0 million 

to

$24.9 million

$25.0 million 

to

$49.9 million

$50.0 million 

to

$99.9 million

$100.0 million 

to

$299.9 million

$300.0 million 

to

$499.9 million

$500.0 million 

to

$999.9 million

$1.0 billion 

to

$4.9 billion

$5.0 billion 

or 

more

Ratios of total equity capital to total assets of—

Less than 5 ................................................................................. 345 6 17 1 71 79 51 65 15 15 22 4

5.0 to 5 .4 9 ................................................................................. 405 3 26 83 87 65 72 22 23 21 3

5.50 to 5 .9 9 .............................................................................. 722 8 52 178 198 113 93 27 24 25 4

6.00 to 6 .4 9 .............................................................................. 1,126 19 99 337 281 194 131 17 22 22 4

6.50 to 6 .9 9 .............................................................................. 1,521 44 193 472 384 231 131 23 16 25 2

7.00 to 7 .4 9 .............................................................................. 1,833 59 260 632 446 275 125 14 9 11 2

7.50 to 7 .9 9 .............................................................................. 1,699 80 279 586 408 203 110 20 9 3 1

8.00 to 8 .4 9 .............................................................................. 1,503 55 251 579 387 143 70 9 5 3 1

8.50 to 8 .9 9 .............................................................................. 1,168 81 216 439 278 100 48 3 2 1 0

9.00 to 9 .4 9 .............................................................................. 903 59 176 369 191 68 33 3 3 0 1

9.50 to 9 .9 9 .............................................................................. 692 60 150 256 143 57 16 4 2 4 0

10.00 to 10.49........................................................................... 468 49 96 179 90 36 12 4 2 0 0

10.50 to 10.99........................................................................... 379 47 73 167 62 20 8 1 1 0 0

11.00 to 11.49........................................................................... 307 44 66 121 55 13 3 2 1 1 1

11.50 to 11.99............................................................................ 261 36 77 85 43 10 8 1 0 1 0

12.00 or more........................................................................... 1,059 323 321 282 82 36 13 1 1 0 0

Ratios of total equity capital to total assets other

than cash and government securities of—

Less than 7.0.............................................................................. 658 4 24 143 158 114 120 32 28 29 6

7.0 to 8 .4 9 ................................................................................. 2,142 26 147 573 589 394 259 44 45 59 6

8.5 to 9 .9 9 ................................................................................. 3,301 63 350 1,093 911 511 249 40 41 36 7

10.0 to 1 1 .4 9 ............................................................................ 2,792 95 435 1,070 698 295 155 26 9 7 2

11.5 to 1 2 .9 9 ............................................................................ 1,861 119 356 728 407 156 77 9 4 4 1

13.5 to 1 4 .4 9 ............................................................................ 1,121 101 288 429 193 56 38 6 5 4 1

15.5 to 1 5 .9 9 ........................................................................... 737 73 200 298 114 29 18 4 1 0 0

16.0 to 1 7 .4 9 ............................................................................ 468 65 136 173 59 19 12 2 2 0 0

17.5 to 1 8 .9 9 ............................................................................ 298 44 106 105 27 10 5 1 0 0 0

19.0 to 20.49 ............................................................................ 205 48 66 62 16 13 0 0 0 0 0

20.5 to 2 1 .9 9 ........................................................................... 151 26 52 54 12 5 1 1 0 0 0

22.0 or more.............................................................................. 657 309 192 108 30 13 4 1 0 0 0

Number of banks........................................................................... 14,391 973 2,352 4,836 3,214 1,615 938 166 135 139 23

164 FEDERAL DEPOSIT INSURANCE CORPORATION

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Federal Reserve Bank of St. Louis
INCOME OF INSURED BANKS

Table 115. Income of insured commercial banks in the United States (States and other areas), 1973 — 1978

Table 116. Ratios of income of insured commercial banks in the United States (States and other areas), 

1 9 7 3 -1 9 7 8

Table 117. Income of insured commercial banks in the United States (States and other areas), 1978

Banks grouped by class of bank

Table 118. Income of insured commercial banks operating throughout 1978 in the United States (States 

and other areas)

Banks grouped by amount of assets

Table 119. Ratios of income of insured commercial banks operating throughout 1978 in the United States 

(States and other areas)

Banks grouped according to amount of assets

Table 1 20. Income of insured mutual savings banks in the United States (States and other areas), 1973 — 

1978

Table 121. Ratios of income of insured mutual savings banks in the United States (States and other areas), 

1 9 7 3 -1 9 7 8

The income data received and published by the Corporation relate to commercial and mutual savings banks insured by the Corporation.

Commercial banks

Banks having assets of $25 million or more are required to report consolidated income accounts on an accrual basis. Where the results would not be 

significantly different, certain accounts may be reported on a cash basis. 

Smaller banks continue to have the option of submitting their reports on a 

cash or an accrual basis, except that unearned income on loans, and income 

taxes, must be reported on a current accrual basis.

Prior to 1976, insured banks were required to submit a consolidated Report 

of Income, including all majority-owned domestic premises subsidiaries

and other nonbank subsidiaries that were significant according to certain tests. 

Beginning in 1976, the consolidated income report must include also all 

majority-owned Edge Act and Agreement Corporations, and all majorityowned significant foreign subsidiaries and associated companies to the extent 

that the income of such subsidiaries is remittable.

Banks were required to report income and expenses more frequently beginning in 1976. Banks having assets of $300 million or more submit quarterly 

statements and other insured banks submit semiannual reports. In this report, 

income data are included for all insured banks operating at the end of the 

respective years, unless indicated otherwise. In addition, when appropriate, 

adjustments have been made for banks in operation during part of the year but 

not at the end of the year.

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Several changes were made in 1976 in the format of the income reports 

submitted by banks, mainly involving additional separate items on the face of 

the report. Those changes are indicated in several historical data tables to 

follow, with explanatory notes where necessary.

In 1976, the method used for determining "provision for possible loan 

losses” was changed significantly. Also, beginning in 1976, "memoranda" 

data in table 115 and elsewhere on charge-offs and recoveries to loan loss 

reserves include also the gross charge-offs and recoveries on loans by banks 

not on a reserve basis of accounting (see p. 167).

In December 1978 an abbreviated Report of Income was instituted for banks 

with total consolidated assets less than $100 million.

"Applicable income taxes" on income before securities gains or losses is an 

estimate of the tax liability that a bank would incur if its taxes were based solely on operating income and expenses; that is, if there were no security gains or 

losses, no extraordinary items, etc. The amount reported by each bank consists of Federal, State and local, and foreign income taxes, estimated using the 

tax rates applicable to the reporting bank. Income taxes currently payable, and 

deferred income taxes, are included.

The memoranda item "total provision for income taxes" includes applicable 

taxes on operating income, applicable taxes on securities gains and losses and 

extraordinary items, and tax effects on differences between the provision for 

loan losses charged to operating expense and transfers to the reserve for bad 

debt losses on loans. For banks generally the transfers to reserve for bad debts 

have exceeded the provision for loan losses and consequently have tended to 

reduce tax liability. (Since enactment of the Tax Reform Act of 1969, additions 

to loan loss reserves for Federal tax purposes have been subject to a schedule 

of limitations that will eventually put these reserves on a current experience 

basis.)

Mutual savings banks

For a discussion of the report of income and expenses for mutual savings 

banks prior to 1971, see the 1951 Annual Report, pp. 50-52.

Beginning December 31, 1971, income and expenses for mutual savings 

banks are reported on a consolidated basis in the same manner as required of 

commercial banks, including all domestic branches, domestic bank premises 

subsidiaries, and other significant nonbanking domestic subsidiaries.

Beginning in 1972, banks with total resources of $25 million or more are 

required to prepare their reports on the basis of accrual accounting. All banks

are required to report income taxes on an accrual basis.

Under operating income, certain income from securities formerly in the 

"other" category are shown separately beginning 1971. Income from U.S. 

Treasury securities is combined with income from U.S. Government agency 

and corporation securities. Somewhat fewer items are detailed under operating expenses. Beginning in 1971, actual net loan losses (charge-offs less 

recoveries) are included as an expense item in the operating section of the 

report (see discussion below). In 1970 and prior years (table 120), the 

amounts shown for this expense item were "recoveries credited to valuation 

adjustment provisions on real estate mortgage loans" less the "realized losses 

charged to valuation adjustment provisions on [these] loans," which were 

reported in those years in the memoranda section.

The nonoperating sections of the report were condensed in 1971, with 

realized gains and losses on securities, mortgage loans, and real estate 

reported "net" rather than in separate sections and captions as before. 

Detailed data formerly reported on reconcilement of valuation adjustment provisions were almost entirely eliminated, except for a simple reconciliation of 

surplus.

Sources of data

National banks and State banks in the District of Columbia not members of 

the Federal Reserve System: Office of the Comptroller of the Currency.

State banks members of the Federal Reserve System. Board of Governors of 

the Federal Reserve System.

Other insured banks: Federal Deposit Insurance Corporation.

REPORTING OF LOSSES AND RESERVES

FOR LOSSES ON LOANS,

1948 - 1978

Commercial banks

Use of the reserve method of loan accounting was greatly encouraged 

when, in 1947, the Internal Revenue Service set formal standards for loan loss 

transfers to be permitted for Federal tax purposes. In their reports submitted to 

the Federal bank supervisory agencies prior to 1948, insured commercial 

banks included in non-operating income the amounts of recoveries on loans 

(applicable to prior charge-offs for losses) which included, for

166 FEDERAL DEPOSIT INSURANCE CORPORATION

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banks using the reserve method, transfers from loan loss reserves. Direct 

charge-offs and losses on loans, and transfers to reserves were included 

together in non-operating expenses. Banks using the reserve method were not 

required to report separately their actual losses, that is, charges against loan 

loss reserves. (In statements of condition prior to 1948, insured banks 

reported loans on a net basis only, after allowance for loan loss reserves. 

Beginning with the June 30, 1948 report, banks were required to report gross 

loans, with total valuation reserves, those set up pursuant to Internal Revenue 

Service regulations, and other reserves shown separately. However, instalment 

loans ordinarily continued to be reported net if the instalment payments were 

applied directly to the reduction of the loan.)

Beginning with the year 1948, the income reports were revised to show 

separately, in a memoranda section, the losses charged to reserves. These 

items continued to be combined in the non-operating expense section until 

1961. Recoveries credited to reserves were also itemized in the memoranda 

section beginning in 1948, as were the amounts transferred to and from 

reserves during the year. Each of these debits and credits was segregated as 

to reserves set up pursuant to IRS regulations, and other reserves. Losses and 

recoveries, and transfers to and from reserves, but not the specific tax-related 

transfers, were separetely reported in the Corporation's published statistics.

Several important revisions were made in the format of the income reports 

of commercial banks in 1969. A new entry entitled "provisions for loan 

losses" was included under operating expenses. This item included actual loan 

losses (charge-offs less recoveries) during the year or, at the option of the 

bank, an amount derived by applying the average loan loss percentage for the 

five most recent years to the average amount of loans during the current year. 

Banks had the option also of providing a larger amount in any year than the 

amount indicated by the formula. Beginning in 1976, required use

of the formulas was discontinued. Banks are instructed to expense an amount 

which in the judgment of bank management will maintain an adequate reserve, 

and to provide a fully reviewable record for bank examination purposes of the 

basis for the determination of the loan-loss provision.

Also beginning in 1976, banks not on a reserve basis report gross chargeoffs and recoveries; the difference— net losses— is reported as the "provision 

for loan losses" in operating expenses. Banks continue to report all transfers to 

and from reserves in the memoranda section of the income statement, but this 

detailed information is not included in the tables to follow.

Mutual savings banks

While mutual savings banks reported loan losses and transfers to loss 

reserves prior to 1951, the Corporation's published statistics did not show 

these data separately, as was the case also for recoveries and transfers from 

reserves. When the reporting form was revised extensively in 1951, these 

various nonoperating expenses were itemized, and a memoranda section was 

added to show also the losses and recoveries in reserve accounts. "Realized" 

losses (and recoveries) for which no provision had been made, and transfers 

were included in the nonoperating expense (income) section, while direct 

write-downs and other loan losses for which provision had been made, were 

reported separately in a memoranda account.

Following 1951, the loan loss section of the reports of condition and income 

and expense remained unchanged until 1971. Beginning in 1971, the income 

report was revised in a manner similar to changes in 1969 applicable to commercial banks, to show actual net loan losses as operating expenses. (Mutual 

savings banks did not have the option available to commercial banks of reporting losses based on recent years' average experience.) At the same time, all 

valuation reserves ware merged into surplus accounts on statements of condition submitted to the Federal supervisory agencies.

INCOME OF INSURED BANKS 167

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Table 115. INCOME OF INSURED COMMERCIAL BANKS IN THE UNITED STATES (STATES AND OTHER AREAS), 1 9 7 3 -1 9 7 8

(Amounts in thousands of dollars)

Income item 1973 1974 1975 19761 19771 19781

Operating income— total..................................................................................................... 53.036,327 68,160,779 66,558,502 80.663.853 90,357,541 113,581,682

Interest and fees on loans.............................................................................................................. 35,375,638 47,138,740 43,379,504 51,645,260 58,990,506 76,182,124

4,486,655 4.887,917 6,712,575

Income on federal funds sold and securities purchased under agreements to

resell in domestic offices........................................................................................................ 2,486,695 3,712,304 2,294,621 1.984,757 2,476,313 3,682,320

Interest on U.S. Treasury securities and on obligations of other U.S.

Goverment agencies and corporations3.............................................................................. 4,937,659 5,459,834 6,789,577 8,391,374 8,863,977 9,384,132

Interest on obligations of States and political subdivisions of the U.S.3 ................. 3,864,785 4,453,876 4,918,518 5,134,676 5,365,327 6,038,829

Income from all other securities3................................................................................................ 371,987 467,873 533,244 856,053 968,672 1,094,853

534,254 699,273 861,989

Income from fiduciary activities.................................................................................................. 1,459,879 1,506,206 1,601,968 1,794,732 1,980,395 2,139,266

Service charges on deposit accounts in domestic offices.............................................. 1,326,992 1,459,858 1,555,360 1.635.463 1,806.509 2,048,989

Other service charges, commissions, and fees..................................................................... 1,251,651 1,408,525 1,653,549 2,182,927 2,408,698 2,937,435

Other income3..................................................................................................................................... 1,961,041 2,553,563 3,832,161 2,017,702 1,909,954 2,499,170

Operating expenses— t o t a l................................................................................................ 44,330,459 58,910,355 57,582,040 70,750,168 78,791,583 98,480,372

Salaries and employee benefits.................................................................................................. 10,127,808 11,586,433 12,686,720 14,752,297 16,346,067 18,743,800

Interest on time certificates of deposit of $100,000 or more issued by

domestic offices^ ........................................................................................................... 7,111,054 6,763.105 11,736.511

Interest on deposits in foreign offices^. ........................................................................ 8,749,673 10,215,971 14,558,371

Interest on other deposits.............................................................................................................. 19,834,817 27,888,772 26,245,936 19,143,238 21,832,936 23,918,087

Expense of federal funds purchased and securities sold under agreements to

repurchase in domestic offices............................................................................................. 3,899,016 5,985,504 3,322,993 3.311,741 4,542,669 7,264,001

Interest on demand notes issued to the U.S. Treasury and other borrowed

money ................................................................................................................................................. 503,941 917,638 377,195 667,197 818,374 1,457,931

Interest on subordinated notes and debentures...................................................................... 254,458 283,203 294,098 344,952 392,274 448,488

Occupancy expense of bank premises, net, and furniture and equipment

expense.............................................................................................................................................. 1,782,956 2,052,345 2,324,644 2,764,804 3.049,121 5,584,768

Provision for possible loan losses............................................................................................... 1,264,695 2,286.132 3,612,410 3,691,378 3.301,041 3,524,704

Other operating expenses................................................................................................................. 5,461,527 6,549,607 7,185,305 8,492,452 9.599,250 11,243,711

Income before income taxes and securities gains or lo sses.................................... 8,705,868 9,250,424 8,976,462 9,913,685 11,565,958 15,101,310

Applicable income ta x e s..................................................................................................... 2,121,100 2,084,028 1,792,696 2,290,772 2,831,871 4,162,112

Income before securities gains or losses....................................................................... 6,584,768 7,166,396 7,183,766 7,622,913 8,734,087 10,939,198

Securities gains or losses, gross...................................................................................... -7 3 ,4 5 8 -16 1 ,2 4 7 34,376 312,267 141,674 -44 7 ,1 2 4

Applicable income taxes................................................................................................................. -46,323 -74,195 — 2,690 118,233 43,189 -222,230

Securities gains or losses, net..................................................................................................... -27,135 -87.052 37,066 194,034 98,485 -224,894

Income before extraordinary items.................................................................................... 6,557,633 7,079,344 7,220,832 7,816,947 8,832,572 10,714,304

Extraordinary items, gross................................................................................................... 30,817 17,877 46,823 28,104 55,082 43,737

Applicable income taxes................................................................................................................. 9,256 5,957 13,044 1,774 8,249 -1,493

Extraordinary items, net.................................................................................................................... 21,561 11,920 33,779 26,330 46,833 45,230

Net income............................................................................................................................... 6,579,194 7,091,264 7,254,611 7,843,277 8,879,405 10,759.534

168 FEDERAL DEPOSIT INSURANCE CORPORATION

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Federal Reserve Bank of St. Louis
Memoranda

Dividends declared on equity capital —total.............................................................................

Cash dividends declared on common stock........................................................................

Cash dividends declared on preferred stock........................................................................

Provision for income taxes —total..................................................................................................

U.S. Federal income taxes..........................................................................................................

U.S. State and local income taxes..........................................................................................

2,429,330 

2.425,633

3.697

1,715,439 

1.336,317

379,122

2,768,104

2,765,674

2,430

1,759,739

1,357,934

402.345

3,032,444

3,030,230

2,214

1,727,041

1,225,927

501,114

3,036,222

3,033,628

2,594

2,410,779

1,371,638

491,712

547,429

-3,503,246

687,401

-4,190,647

3,304,789

3,301,525

3,264

2,883,309

1,773,219

525.833

584.257

-2,797,105

813.900

-3.611.005

3,721,926

3,718,211

3,715

3,938,389 

2,537,962

656,274

744,153

-2,496,977

1.074,435

3,571,412

Net loan losses or recoveries —total............................................................................................

Recoveries on loans.........................................................................................................................

Losses on loans..................................................................................................................................

-1,159,187

388,846

-1,548,033

-1,956,931

461,350

-2,418,281

-3,242.830

547,380

-3,790,210

Average assets, liabilities, and equity capital^

Assets— total......................................................................................................................... 776,702,572 871,394,495 924,946,738 1,123,469,176 1,249,961,111 1,403,493,088

Cash and due from depository institutions............................................................................. 110,168,143 122,224,773 126,838,007 194,312,500 218,357,890 248,632,890

U.S. Treasury securities and obligations of other U.S. agencies

and corporations3................................................................................................................... 58,603,925 52,822,043 65,992,148 88,520,749 96,664,647 131,799,055

Obligations of states and political subdivisions............................................................ 89,241,780 94,524,535 98,953,279 102,733,896 108,429,263 1 17,331,876

Other securities^.................................................................................................................................. 29,355,715 35,256,603 39,203,344 51,110,347 54,293,953 20,129,242

Net loans6............................................................................................................................................. 453,238,907 519,572,131 536,061,723 632,696,842 709,816,228 764,772,496

All other assets.................................................................................................................................. 36,094,102 46,994,410 57,898,237 54,094,842 62,399,129 74,589,592

Liabilities and equity capital— total................................................................................ 776,702,572 871,394,495 924,946,738 1,123,469.176 1,249,961,111 1,403,493,088

Total deposits....................................................................................................................................... 640,806,208 710,029,868 756,948,586 944,238,914 1,043,478,575 1,157,408,490

Demand deposits......................................................................................................................... 293,708,282 307,363,186 313,836,391 320,488,016 347.903.682 377.305.796

Time and savings deposits.................................................................................................... 347,097,926 402,666,682 443,112,195 474,499,317 519.939.386 592.066.952

Deposits in foreign offices......................................................................................... 149,251,581 175 635 507 188.034.718

Subordinated notes and debentures............................................................................................ 4,044,715 4,204,891 4,328,561 4,865,972 5,500,132 5,952,193

Other borrowings and all other liabilities................................................................................ 80,677,846 100,573,737 101,918,202 105,647,909 125,239,154 156,087,365

Total equity capital............................................................................................................................ 51,173,803 56,585,999 61,751,389 68,716,381 75,743,250 84,028,113

Number of employees on payroll (end of period)..................................................................... 1,093,616 1,160,585 1,226,415 1,255,025 1,320,598 1,319,828

Number of banks (end of period).................................................................................................... 13,976 14,228 14,384 14,411 14,412 14,391

1 Data are from fully consolidated reports of income, including domestic and foreign offices.

2Figures not available before 1976.

^Securities held in trading accounts are included in "All other assets"; income from these securities is included in "Other income."

^Included in "Interest on other deposits" before 1976.

^Averages of amounts reported at beginning, middle, and end of year. 1976, 1977, 1978 averages are based on consolidated reports, domestic and foreign. 

®For years before 1976, data are gross loans. Includes federal funds sold.

INCOME OF INSURED BANKS 169

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Federal Reserve Bank of St. Louis
Table 116. RATIOS OF INCOME OF INSURED COMMERCIAL BANKS IN THE UNITED STATES (STATES AND OTHER AREAS), 1 9 7 3 -1 9 7 8

Income item 1973 1974 1975 19761 19771 19781

Amounts per $100 of operating income

Operating income— total........................................................................................................ $100.00 $100.00 $100.00 $100.00 $100.00 $100.00

Interest and fees on loans2.............................................................................................................. 71.39 74.60 68.62 66.49 68.03 70.31

5.56 5.41 5.91

Interest on U.S. Treasury securities and on obligations of other U.S.

Government agencies and corporations................................................................................. 6.53 5.05 6.67 7.41 7.08 8.26

Interest on obligations of States and political subdivisions............................................... 7.29 6.53 7.39 6.37 5.94 5.32

Income from all other securities................................................................................................... 3.48 3.65 4.33 4.05 3.80 .96

Income from fiduciary activities...................................................................................................... 2.75 2.21 2.41 2.23 2.19 1.88

Service charges on deposit accounts in domestic offices................................................. 2.50 2.14 2.34 2.03 2.00 1.80

Other service charges, commissions, and fees......................................................................... 2.36 2.07 2.48 2.71 2.67 2.59

Other operating income....................................................................................................................... 3.70 3.75 5.76 3.16 2.88 2.96

Operating expenses— to tal................................................................................................... 83.58 86.43 86.51 87.71 87.20 86.70

Salaries and employee benefits...................................................................................................... 19.10 17.00 19.06 18.29 18.09 16.50

Interest on deposits in domestic offices.................................................................................... 37.40 40.92 39.43 32.55 31.65 31.39

10.85 11.31 12.82

Interest on demand notes issued to the U.S. Treasury and other borrowed money4 . 8.78 10.54 6.00 5.36 6.37 8.07

Occupancy expense of bank premises, net, and furniture and equipment expense . 5.62 5.01 5.79 5.56 5.51 4.92

Provision for possible loan losses................................................................................................ 2:38 3.35 5.43 4.57 3.65 3.10

Other operating expenses................................................................................................................. 10.30 9.61 10.80 10.53 10.62 9.90

Income before income taxes and securities gains or lo s s e s .................................... 16.42 13.57 13.49 12.29 12.80 13.30

Amounts per $100 of total assets^

Operating income—total.......................................................................................................................... 6.83 7.82 7.20 7.18 7.23 8.09

Operating expenses—total.................................................................................................................... 5.71 6.76 6.23 6.30 6.30 7.02

Income before income taxes and securities gains or losses................................................. 1.12 1.06 .97 .88 .93 1.08

Net income.................................................................................................................................................... .85 .81 .78 .70 .71 .77

Recoveries credited to allowance...................................................................................................... .08

Losses charged to allowance................................................................................................................. - .2 5

Provision for possible loan losses .... .25

Amounts per $100 of total equity capital5

Net income.................................................................................................................................................... 12.86 12.53 11.75 11.41 11.72 12.80

Cash dividends declared on common stock.................................................................................... 4.74 4.89 4.91 4.42 4.36 4.42

Net change in capital accounts (less cash dividends on common and preferred stock) . 8.11 7.64 6.84 6.99 7.36 14.796

Special ratios^

Income on loans per $100 of loans2....................................................................................... 8.35 9.79 8.52 8.48 8.66 9.76

Income on U.S. Treasury and other U.S. Government agency and corporation

securities per $100 of those securities........................................................................... 5.91 6.51 6.73 6.75 6.62 7.12

Income on obligations of states and political subdivisions per $100 of

those obligations........................................................................................................... 4.33 4.71 4.97 5.00 4.95 4.80

Service charges on demand deposits in domestic offices per $100 of

those deposits............................................................................................................................. .45 .47 .50 .51 .52 .54

Interest paid on time and savings deposits in domestic offices per $100 of

those deposits........................................................................................................................................ 5.71 6.93 5.92 5.53 5.50 6.02

Number of banks at end of period...................................................................................................... 13,976 14,228 14,384 14,411 14,412 14,391

1 Based on consolidated (including foreign) reports of income— see table 115, note 1.

2|ncludes federal funds sold.

3|Mot available before 1976.

^Includes interest on federal funds purchased, subordinated notes and debentures, and other borrowed money. 

^Ratios are based on averages of assets and liabilities— see table 115 notes 5 and 6.

6|ncludes all changes; prior to 1978 the ratio represents changes due to net income only.

1 70 FEDERAL DEPOSIT INSURANCE CORPORATION

Digitized for FRASER 

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Federal Reserve Bank of St. Louis
Table 117. INCOME OF ALL INSURED COMMERCIAL BANKS IN THE UNITED STATES (STATES AND OTHER AREAS), 1978

BANKS GROUPED BY CLASS OF BANK 

(Amounts in thousands of dollars)

Income item

Members F.R. System Nonmembers 

F.R. System

Operating 

throughout 

the year

Operating

National Member

less than 

full year

Operating income— to ta l................................................................................................................................... 113.581,682 67,842,394 21,288.380 24,450,908 113.521.758 59,924

Interest and fees on loans................................................................................................................................................... 76,182,124 45,997,682 13,927,640 16,256,802 76,151,465 30,659

Interest on balances with depository institutions....................................................................................................... 6,712,575 4,407,311 1,979,252 326,012 6,710,554 2,021

Income on federal funds sold and securities purchased under agreements to resell in domestic 

offices...................................................................................................................................................................................... 3,682,320 2,197,794 610,418 874,108 3,673,011 9,309

Interest on U.S. Treasury securities and on obligations of other U.S. Government agencies 

and corporations.................................................................................................................................................................... 9,384,132 4,721,572 1,457,909 3,204,651 9,372,333 11,799

Interest on obligations of States and political subdivisions................................................................................... 6,038,829 3,252,138 1,003,170 1,783,521 6,037,652 1,177

Income from all other securities....................................................................................................................................... 1,094,853 693,157 201,213 200,483 1,094,541 312

1

Income from direct lease financing................................................................................................................................. 861,989 639,358 166,597 56,034 861,988

Income from fiduciary activities....................................................................................................................................... 2,139,266 1,214,782 697,045 227,439 2,138,961 305

Service charges on deposit accounts in domestic offices...................................................................................... 2,048,989 1,089,525 244.502 714,962 2,047,616 1,373

Other service charges, commissions, and fe e s .......................................................................................................... 2,937,435 1,932,197 467,186 538,052 2,936,362 1,073

Other operating income........................................................................................................................................................ 2,499,170 1,696,878 533,448 268,844 2,497,275 1,895

Operating expenses— total................................................................................................................................ 98.480.372 58,975,758 18,807,300 20,697,314 98,419,998 60,374

Salaries and employee benefits.......................................................................................................................................... 18,743,800 10,845,175 3,270,921 4,627,704 18,727,918 15,882

Interest on time certificates of deposit of $100,000 or more issued by domestic offices.................... 11,736,511 7,021,874 2,564,736 2,149,901 11,731,711 4,800

Interest on deposits in foreign offices........................................................................................................................... 14,558,371 10,139,704 4,260.520 158,147 14,558,221 ‘ 150

Interest on other deposits...................................................................................................................................................... 23,918,087 12,873.945 2,947,332 8,096,810 23,900,369 17,718

Expense of federal funds purchased and securities sold under agreement to repurchase in 

domestic offices.................................................................................................................................................................... 7,264,001 4,989,628 1,813,834 460,539 7,262,047 1,954

Interest on demand notes issued to the U.S. Treasury and other borrowed money.................................. 1,457,931 1,023,090 380,086 54,755 1,457,819 112

Interest on subordinated notes and debentures.......................................................................................................... 448,488 234,334 99,349 114,805 448,164 324

Occupancy expense of bank premises, net, and furniture and equipment expense.................................. 5,584,768 3,194,270 1,029,957 1,360,541 5,579,539 5,229

Provision for possible loan loss.......................................................................................................................................... 3,524,704 2,131,211 639,573 753,920 3,522,959 1,745

Other operating expenses...................................................................................................................................................... 11,243,711 6,522,527 1,800,992 2,920,192 11,231,251 12,460

Income before income taxes and securities gains or lo s s e s ................................................................. 15,101,310 8,866,636 2,481,080 3,753,594 15,101,760 - 4 5 0

Applicable income taxes..................................................................................................................................... 4,162,112 2,591,042 735,925 835,145 4,161,110 1,002

Income before securities gains or lo s s e s .................................................................................................... 10,939,198 6,275,594 1,745,155 2,918,449 10,940,650 -1 ,4 5 2

Securities gains (losses), gross...................................................................................................................... -4 4 7 ,1 2 4 -2 5 3 ,5 2 8 -1 2 4 ,5 1 8 -6 9 ,0 7 8 -447,171 47

Applicable income taxes........................................................................................................................................................ -222,230 -125,232 -68,229 -2 8,769 -222,253 23

Securities gains (losses), net............................................................................................................................................. -224,894 -128,296 -56,289 -40,309 -224,918 24

Income before extraordinary item s................................................................................................................. 10,714,304 6,147,298 1,688,866 2,878,140 10.715.732 -1 ,4 2 8

Extraordinary items, g ro ss................................................................................................................................ 43,737 26,858 -1 ,9 0 2 18.781 43.808 - 7 1

Applicable income taxes........................................................................................................................................................ -1 ,49 3 808 -2 .62 5 324 -1 ,48 2 -1 1

Extraordinary items, net........................................................................................................................................................ 45,230 26,050 723 18,457 45,290 - 6 0

INCOME OF INSURED BANKS 171

Digitized for FRASER 

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Federal Reserve Bank of St. Louis
Table 117. INCOME OF ALL INSURED COMMERCIAL BANKS IN THE UNITED STATES (STATES AND OTHER AREAS), 1978

BANKS GROUPED BY CLASS OF BANK-CONTINUED

(Amounts in thousands of dollars)

Income item Total

Members F.R. System Non- Operating 

throughout 

the year

Operating

National Member

members 

F.R. System

less than 

full year

Net incom e............................................................................................................................................................. 10,759,534 6,173,348 1,689,589 2,896,597 10,761,022 -1 ,4 8 8

MEMORANDA

Dividends declared on equity capital— total................................................................................................ 3,721,926 2,196,029 732,044 793,853 3,721,592 334

Cash dividends declared on common stock.............................................................................................................. 3.718,211 2,194,664 731,852 791,695 3.717.877 334

Cash dividends declared on preferred stock........................................................................................................... 3.715 1,365 192 2,158 3.715 0

Provision for income taxes— to tal.................................................................................................................. 3,938,389 2,466,618 665,071 806,700 3,937,380 1,009

U.S. Federal income taxes................................................................................................................................................. 2.537,962 1,582.351 295,850 659,761 2.537.038 924

U.S. State and local income taxes............................................................................................................................... 656.274 338.712 176,103 141,459 656,189 85

Foreign income taxes......................................................................................................................................................... 744,153 545.555 193,118 5,480 744,153 0

Net loan losses (recoveries)— to tal............................................................................................................... -2,496,977 -1,438,705 -49 9 ,7 9 9 -5 5 8 ,4 7 3 -2,496,000 -9 7 7

Recoveries credited to allowance.................................................................................................................................. 1,074,435 685.906 178,857 209.672 1.074.235 200

Losses charged to allowance........................................................................................................................................... 3,571,412 2.124.611 678,656 768.145 3.570.235 1.177

Number of full-time equivalent employees at end of period. . 1,319,828 733,696 207,653 378,479 1,318,040 1,788

Number of banks........................................................................................................................................................................ 14,391 4,564 1,000 8,827 14,243 148

172 FEDERAL DEPOSIT INSURANCE CORPORATION

Digitized for FRASER 

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Federal Reserve Bank of St. Louis
Table 118. INCOME OF ALL INSURED COMMERCIAL BANKS OPERATING THROUGHOUT 1978 IN THE UNITED STATES

(STATES AND OTHER AREAS)

BANKS GROUPED BY AMOUNTS OF ASSETS 

(Amounts In thousands of dollars)

EJanks with assets of —

Income item All

banks!

Less 

than 

$5 million

$5.0 million 

to

$9.9 million

$10.0 million 

to

$24.9 million

$25.0 million 

to

$49.9 million

$50.0 million 

to

$99.9 million

$100.0 million 

to

$299.9 million

$300.0 million 

to

$499.9 million

$500.0 million 

to

$999.9 million

$1.0 billion 

to

$4.9 billion

$5.0 billion 

or 

more

Operating income— total................................................... 113,521,758 238,241 1,332.840 6,171.621 8,702,436 8,677.812 11,411,770 4,890,473 6,801,841 20,809.009 44,485,715

Interest and fees on loans....................................................... 76,151,465 142,972 845,519 4,052,450 5,832,373 5,895,812 7,658,493 3,232,540 4,495,531 13,720,268 30,275,507

Interest on balances with depository institutions .... 6,710,554 2,244 9,299 36,099 48,571 52,424 93,483 42,749 108,572 999,469 5,317,644

Income on federal funds sold and securities 

purchased under agreements to resell in 

domestic offices....................................................... 3,673,011 17,000 73,840 272,925 323,307 272,558 350,453 206,338 270,900 773,975 1,111,715

Interest on U.S. Treasury securities and on 

obligations of other U.S. Government agencies 

and corporations................................................................ 9,372,333 52,659 246,613 939,734 1,165,330 1,063,396 1,404,176 554,606 703,835 1,685,213 1,556,771

Interest on obligations of States and political 

subdivisions................................................................................. 6,037,652 7,209 62,930 431,260 714,525 737,408 939,665 357,400 471,848 1,125,864 1,189,543

Income from all other securities............................................ 1,094,541 1,562 7,258 34,588 53,699 56,544 76,143 38,801 74,696 122,784 628,466

Income from direct lease financing...................................... 861,988 62 877 4,567 10,053 19,186 32,092 27,562 48,036 148,924 570,629

Income from fiduciary activities........................................... 2,138,961 268 3,886 24,224 28,956 84,176 185,613 118,152 176,283 671,659 845,744

Service charges on deposit accounts in domestic 

offices............................................................................................. 2,047,616 .6,711 39,980 197,458 269,872 244,291 285,551 112,445 160,211 402,017 329,080

Other service charges, commissions, and fees.............. 2,936,362 5,038 28,907 123,217 173.395 162,764 258,567 137,511 185,778 660,252 1,200,933

Other operating income............................................................. 2,497,275 2,516 13,731 55,099 82,355 89,253 127,534 62,369 106,151 498,584 1,459,683

Operating expenses— t o t a l.............................................. 98,419,998 203.550 1,136,041 5,138,235 7,221,122 7.278.994 9,729,278 4,207,121 5.917,614 18.228.388 39,359,655

Salaries and employee benefits........................................... 18,727,918 60,092 281,980 1,165,882 1,558,028 1,568,375 2,104,519 923,527 1,306,713 3,718,621 6,040,181

Interest on time certificates of deposit of 

$100,000 or more issued by domestic offices........... 11,731,711 6,803 46,900 284,468 518,995 686,448 1,142,244 555,596 848,299 2,683,512 4,958,446

Interest on deposits in foreign offices................................ 14,558,221 0 0 0 0 0 5,755 2,174 76,125 1,074,685 13,399,482

Interest on other deposits....................................................... 23,900,369 82,125 510,208 2,377,949 3,304,283 3,107,305 3,691,152 1,349,948 1,635,555 4,043,536 3,798,308

Expense of federal funds purchased and securities 

sold under agreement to repurchase in domestic 

offices............................................................................................. 7,262,047 689 5,144 34,815 66,980 117,822 351,222 275,278 496,861 2,169,336 3,743,900

Interest on demand notes issued to the U.S. Treasury 

and other borrowed money................................................. 1,457,819 138 1,414 6,274 16,730 20,695 36,474 18,655 29,222 167,540 1,160,677

Interest on subordinated notes and debentures.............. 448,164 143 1,146 10,303 22,005 28,570 55,666 24,150 39,184 133,232 133,765

Occupancy expense of bank premises, net, and 

furniture and equipment expense..................................... 5,579,539 12,699 71,449 312,836 446,275 467,386 668,393 302,288 448,849 1,156,158 1,693,206

Provision for possible loan loss........................................... 3,522,959 7,517 47,188 187,004 255,683 250,022 315,942 139,112 217,246 749,099 1,354,146

Other operating expenses.......................................................... 1 1,231,251 33,344 170,612 758,704 1,032,143 1,032,371 1,357,91 1 616,393 819,560 2,332,669 3,077,544

Income before income taxes and securities gains or

lo sses................................................................................. 15,101.760 34,691 196,799 1,033,386 1,481,314 1,398,818 1,682,492 683,352 884,227 2,580.621 5,126,060

Applicable income ta x e s ................................................... 4,161,110 6,647 41,304 222,532 329,013 299,103 337,580 143,317 184,216 648.887 1,948,511

INCOME OF INSURED BANKS 1 73

Digitized for FRASER 

http://fraser.stlouisfed.org/ 

Federal Reserve Bank of St. Louis
Table 118. INCOME OF ALL INSURED COMMERCIAL BANKS OPERATING THROUGHOUT 1978 IN THE UNITED STATES

(STATES AND OTHER AREAS)-CONTINUED 

BANKS GROUPED BY AMOUNTS OF ASSETS 

(Amounts in thousands of dollars)

Banks with assets of —

Income item All

banks

Less 

than 

$5 million

$5.0 million 

to

$9.9 million

$10.0 million 

to

$24.9 million

$25.0 million 

to

$49.9 million

$50.0 million 

to

$99.9 million

$100.0 million 

to

$299.9 million

$300.0 million 

to

$499.9 million

$500.0 million 

to

$999.9 million

$1.0 billion 

to

$4.9 billion

$5.0 billion 

or 

more

Income before securities gains or losses.................... 10,940,650 28.044 155,495 810,854 1,152,301 1,099,715 1.344,912 540,035 700,011 1,931,734 3,177,549

Securities gains (losses), g r o s s ....................................

Applicable income taxes..........................................................

Securities gains (losses), net.................................................

-447,171

-222,253

-224,918

- 4 9 8

-1 0 2

-3 9 6

-3 ,5 0 6

-8 1 9

-2,687

-1 5 ,1 0 9

-4,924

-10,185

-2 5 ,3 1 2

-9,611

-15,701

-2 8 .3 1 6

-11,964

-16,352

-3 8 ,4 7 8

-19,006

-19,472

-1 9 ,2 6 9

-9 ,51 0

-9 ,75 9

-1 7 ,4 9 3

-9 ,12 8

-8 ,36 5

-10 8 ,6 1 2

-53,696

-54,916

-190,578

-103,493

-87,085

Income before extraordinary items................................. 10.715,732 27.648 152,808 800,669 1,136,600 1,083,363 1,325,440 530,276 691,646 1,876,818 3,090,464

Extraordinary items, gross..............................................

Applicable income taxes..........................................................

Extraordinary items, net.............................................................

43,808

-1 ,48 2

45,290

119

6

113

823

9

814

4,219

367

3,852

7.316

823

6,493

7,373

- 3 6

7,409

13,943

693

13,250

7,118

-2 6 5

7,383

3,875

434

3,441

4,322

-6 4 3

4,965

- 5 ,3 0 0

-2,870

-2,430

Net income............................................................................ 10,761,022 27,761 153,622 804.521 1,143,093 1,090,772 1,338,690 537,659 695,087 1,881,783 3,088,034

Memoranda

Dividends declared on equity capital— total...............

Cash dividends declared on common stock.................

Cash dividends declared on preferred stock.................

3,721,592

3.717,877

3,715

6.739

6.739

0

33,058

33,044

14

179,766

179,487

279

286,873

286,186

687

319,734

319,100

634

433,208

432,252

956

180,793

180.204

589

272,076

272.053

23

776,079

775,546

533

1.233.266

1.233.266

O

Provision for income taxes— total.................................

U.S. Federal income taxes....................................................

U.S. State and local income taxes....................................

Foreign income taxes................................................................

3,937,380

2,537.038

656.189

744.153

6,551

5,624

927

0

40,494

34,772

5,722

0

217,975

189,286

28,689

0

320,225

281,306

38,919

O

287,103

249,175

37,928

0

319,267

268,449

50,797

21

133,542

114.824

18.685

33

175.522

138.091

35,524

1,907

594,548

440,018

106,064

48,466

1,842,148

815.488

332.934

693.726

Net loan losses (recoveries)— total...............................

Recoveries credited to allowance......................................

Losses charged to allowance.................................................

-2,496,000

1.074.235

3.570.235

-5 .8 6 0

2,647

8,507

-3 6 ,9 1 2

14,620

51,532

-136,077

60,309

196,386

-1 8 4 ,1 1 8

85,934

270,052

-1 7 8 ,8 9 9

76,362

255,261

-22 7 ,8 4 5

89,149

316.994

-1 1 6 ,5 8 7

45.264

161.851

-1 6 3 .8 8 6

60,591

224,477

-52 5 ,4 2 7

196.788

722.215

-920,389

442.571

1.362.960

Number of full-time equivalent employees 

at end of period....................................................... 1,318,040 5,515 23,268 94,541 128,132 129,205 170,476 72,978 101,723 262,175 330,027

Number of banks........................................................................... 14,243 874 2,317 4,829 3,210 1,614 935 164 135 138 27

iThis group of banks is the same as the group shown in table 11 7 under the heading “ Operating throughout the year."

174 FEDERAL DEPOSIT INSURANCE CORPORATION

Digitized for FRASER 

http://fraser.stlouisfed.org/ 

Federal Reserve Bank of St. Louis
Table 119. RATIOS OF INCOME OF ALL INSURED COMMERCIAL BANKS OPERATING THROUGHOUT 1978 IN THE UNITED STATES

(S T A T E S A N D O TH E R A R E A S )1 

BANKS GROUPED BY AMOUNT OF ASSETS

Banks with assets of —

Income item All

banks

Less 

than 

$5 million

$5.0 million 

to

$9.9 million

$10.0 million 

to

$24.9 million

$25.0 million 

to

$49.9 million

$50.0 million 

to

$99.9 million

$100.0 million 

to

$299.9 million

$300.0 million 

to

$499.9 million

$500.0 million 

to

$999.9 million

$1.0 billion 

to

$4.9 billion

$5.0 billion 

or 

more

Amounts per $100 of operating income

Operating income— total................................................................................. $100.00 $100.00 $100.00 $100.00 $100.00 $100.00 $100.00 $100.00 $100.00 $100.00 $100.00

Interest and fees on loans.......................................................................................... 67.08 60.01 63.44 65.66 67.02 67.94 67.11 66.10 66.09 65.93 68.06

Interest on balances with depository institutions........................................... 5.91 .94 .70 .58 .56 .60 .82 .87 1.60 4.80 11.95

Income on federal funds sold and securities purchased under 

agreements to resell in domestic offices.......................................................... 3.24 7.14 5.54 4.42 3.72 3.14 3.07 4.22 3.98 3.72 2.50

Interest on U.S. Treasury securities and on obligations of other U.S. 

Government agencies and corporations^............................................................. 8.26 22.10 18.50 15.23 13.39 12.25 12.30 11.34 10.35 8.10 3.50

Interest on obligations of States and political subdivisions....................... 5.32 3.03 4.72 6.99 8.21 8.50 8.23 7.31 6.94 5.41 2.67

Income from all other securities^.............................................................................. .96 .66 .54 .56 .62 .65 .67 .79 1.10 .59 1.41

Income from fiduciary activities.............................................................................. 1.88 .11 .29 .39 .33 .97 1.63 2.42 2.59 3.23 1.90

Service charges on deposit accounts in domestic offices.......................... 1.80 2.82 3.00 3.20 3.10 2.82 2.50 2.30 2.36 1.93 .74

Other service charges, commissions, and fees................................................. 2.59 2.11 2.17 2.00 1.99 1.88 2.27 2.81 2.73 3.17 2.70

Other operating income2................................................................................................ 2.96 1.08 1.10 .97 1.06 1.25 1.40 1.84 2.26 3.12 4.55

Operating expenses— t o t a l............................................................................ 86.70 85.44 85.23 83.26 82.98 83.88 85.26 86.03 87.00 87.60 88.48

Salaries and employee benefits.............................................................................. 16.50 25.22 21.16 18.89 17.90 18.07 18.44 18.88 19.21 17.87 13.58

Interest on deposits in domestic offices............................................................. 31.39 37.33 41.80 43.14 43.93 43.72 42.35 38.96 36.52 32.33 19.68

Interest on deposits in foreign offices.................................................................. 12.82 .00 .00 .00 .00 .00 .05 .04 1.12 5.16 30.12

Expense of federal funds purchased and securities sold under 

agreements to repurchase in domestic offices.............................................. 6.40 .29 .39 .56 .77 1.36 3.08 5.63 7.30 10.42 8.42

Interest on demand notes issued to the U.S. Treasury 

and other borrowed money.................................................................................... 1.28 .06 .11 .10 .19 .24 .32 .38 .43 .81 2.61

Occupancy expense of bank premises, net, and furniture and 

equipment expense..................................................................................................... 5.32 5.38 5.43 5.25 5.39 5.71 6.35 6.50 7.18 6.20 4.11

Provision for possible loan lo ss.............................................................................. 3.10 3.16 3.54 3.03 2.94 2.88 2.77 2.84 3.19 3.60 3.04

Other operating expenses............................................................................................. 9.89 14.00 12.80 12.29 11.86 11.90 11.90 12.60 12.05 11.21 6.92

Income before income taxes and securities gains or lo sses............... 13.30 14.56 14.77 16.74 17.02 16.12 14.74 13.97 13.00 12.40 11.52

Amounts per $100 of total assets3

Operating income—total................................................................................................ 8.09 6.48 7.20 7.65 8.12 8.04 8.27 7.70 7.96 8.35 8.11

Operating expenses—total............................................................................................. 7.02 5.54 6.14 6.37 6.74 6.75 7.05 6.62 6.92 7.31 7.17

Income before income taxes and securities gains or losses.......................... 1.08 .94 1.06 1.28 1.38 1.30 1.22 1.08 1.03 1.04 .93

Net income.......................................................................................................................... .77 .76 .83 1.00 1.07 1.01 .97 .85 .81 .75 .56

INCOME OF INSURED BANKS 1 75

Digitized for FRASER 

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Federal Reserve Bank of St. Louis
Table 119. RATIOS OF INCOME OF ALL INSURED COMMERCIAL BANKS OPERATING THROUGHOUT 1978 IN THE UNITED STATES

(STATES AND OTHER AREAS) 1 - CONTINUED 

BANKS GROUPED BY CLASS OF BANK - CONTINUED

Banks with assets of —

Income item All

banks

Less 

than 

$5 million

$5.0 million 

to

$9.9 million

$10.0 million 

to

$24.9 million

$25.0 million 

to

$49.9 million

$50.0 million 

to

$99.9 million

$100.0 million 

to

$299.9 million

$300.0 million 

to

$499.9 million

$500.0 million 

to

$999.9 million

$1.0 billion 

to

$4.9 billion

$5.0 billion 

or 

more

Recoveries credited to allowance.............................................................................. .08 .07 .08 .07 .08 .07 .06 .07 .07 .08 .08

Losses charged to allowance....................................................................................... - .2 5 - .2 3 - .2 8 - .2 4 - .2 5 - .2 4 - .2 3 - .2 5 - .2 6 - .2 9 -.2 5

Provision for possible loan losses.............................................................................. .25 .20 .25 .23 .24 .23 .23 .22 .25 .30 .25

Amounts per $100 of equity ca p ital

Net income......................................................................................................................... 12.93 6.62 8.92 11.97 13.59 13.47 13.79 12.44 12.45 12.73 13.17

Cash dividends declared on common stock.......................................................... -4 .4 7 -1.61 -1 .9 2 -2 .6 7 -3 .4 0 -3 .9 4 -4 .4 5 -4 .1 7 -4 .8 7 -5 .2 5 -5 .26

Net change in capital accounts (less cash dividends on common and 

preferred stock).............................................................................................................. 14.70 7.57 10.59 13.65 15.48 15.28 16.10 14.11 15.45 15.73 13.65

Special ratios^

Income on loans per $100 of loans..................................................................... 9.87 7.53 8.35 8.99 9.70 9.70 10.06 9.39 9.80 10.20 9.99

Income on U.S. Treasury and on other U.S. Government agency and 

corporation securities per $100 of those securities...................................... 7.12 5.93 6.45 6.80 7.29 7.05 7.40 6.85 7.05 7.31 7.09

Income on obligations of State and political subdivisions per $100 of 

those obligations.............................................................................................................. 5.15 4.74 4.47 4.75 5.05 4.95 5.11 4.78 4.90 5.28 5.72

Service charge on demand deposits in domestic offices per $100 of 

those deposits................................................................................................................. .55 .52 .69 .81 .85 .76 .69 .56 .57 .54 .29

Interest paid on time and savings deposits in domestic offices per 

$100 of those deposits................................................................................................ 6.15 4.59 5.14 5.51 5.93 5.91 6.15 5.70 6.00 6.40 6.66

Number of banks at end of period........................................................................... 14,243 874 2,317 4,829 3,210 1,614 935 164 135 138 27

iT h is group of banks is the same as the group shown in table 11 7 under "Operating throughout the year.” 

2|ncome from securities held in trading accounts is included in "Other operating income."

^Ratios are based on assets and liabilities repooted at end of year.

176 FEDERAL DEPOSIT INSURANCE CORPORATION

Digitized for FRASER 

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Federal Reserve Bank of St. Louis
Table 120. INCOME OF INSURED MUTUAL SAVINGS BANKS IN THE UNITED STATES (STATES AND OTHER AREAS), 19 7 3 -1 9 7 8

(Amounts in thousands of dollars)

Income item 1973 1974 1975 19761 19771 19781

Operating income— total........................................................................................................................................................... 6,064.895 6,483,654 7,179,294 8,312,692 9,405,550 10,638,687

Interest and fees on real estate mortgage loans, net.................................................................................................................... 4,171,520 4,503,214 4,817,741 5,225,101 5,744,885 6,500,885

Interest and fees on real estate mortgage loans, gross...................................................................................................... 4.240.926 4.570.902 4.883,664 5.290,560 5.809.758 6,565.682

Less. Mortgage servicing fees.......................................................................................................................................................... 69.406 67.688 65.923 65,459 64.873 64.797

Interest and fees on other loans............................................................................................................................................................. 283,506 337,844 283,416 334.625 433,413 601,510

Interest on U.S. Government and agency securities....................................................................................................................... 414,359 403,940 567,577 869,038 1,096,826 1,229,607

Interest on corporate bonds........................................................................................................................................................................ 730,132 743,944 929,613 1,166,755 1,294,753 1,324,370

Interest on State, county, and municipal obligations.................................................................................................................... 52,982 47,028 74,858 142,958 166,939 191,868

Interest on other bonds, notes, and debentures................................................................................................................................ 116,901 125,718 150,841 200,849 255,319 293,024

Dividends on corporate stock..................................................................................................................................................................... 148,781 170,273 191,401 207,398 227,541 261,677

Income from service operations................................................................................................................................................................ 35,771 27,875 32,968 39,825 47,585 57,307

Other operating income................................................................................................................................................................................. 110,943 123,818 130,879 126,143 138,289 178,439

Operating expenses— to tal...................................................................................................................................................... 811,689 938,705 1,083,192 1,310,921 1,465,245 1,758,846

Salaries................................................................................................................................................................................................................ 307,030 344,304 388,061 440,284 497,563 570,838

Pensions and other employee benefits................................................................................................................................................. 72,567 83,338 98,268 114,310 128,539 148,166

Interest on borrowed money..................................................................................................................................................................... 28,907 66,110 55,168 45,365 46,827 122,436

Occupancy expense of bank premises (including taxes, depreciation, maintenance, rentals), net............................ 96,128 114,206 135,754 158,044 172,095 189,459

Furniture and equipment (including recurring depreciation)........................................................................................................ 37,104 43,815 52,543 62,285 73,948 88,131

Actual net loan losses (charge-offs less recoveries).................................................................................................................... 8,994 10,034 21,836 78,732 69,975 109,426

Other operating expenses........................................................................................................................................................................... 260,959 276,898 331,562 411,901 476,298 530,390

Net operating income before interest and dividends on deposits............................................................................... 5,253.206 5,544,949 6,096,102 7,001,771 7,940,305 8,879,841

Interest and dividends on deposits— total.......................................................................................................................... 4,480,901 4,916,724 5,495,842 6,287,966 6 ,997,464 7,706,674

Savings deposits............................................................................................................................................................................................ 3,567,595 3,607,170 3,778,695 4,160,435 4,222,013 3,930,597

Other time deposits....................................................................................................................................................................................... 913,306 1.309,554 1,717,147 2,127,531 2,775,451 3,776,077

Net operating income after interest and dividends on deposits................................................................................. 772,305 628,225 600,260 713,805 942,841 1,173,167

Net realized gains or losses on— total............................................................................................................................... -9 2 ,3 5 7 - 1 4 8 ,8 4 4 - 6 3 ,2 8 3 20,260 18,562 -5 3 ,4 8 4

Securities........................................................................................................................................................................................................... -65,973 -111,501 -25,899 49,283 47,625 -44,941

Real estate mortgage loans........................................................................................................................................................................ -20,187 -38,556 -22,904 -21,554 -40,988 -22,612

Real estate........................................................................................................................................................................................................ -6 7 3 588 -7,169 -4 2 3 -2 ,80 4 -2,013

Other transactions....................................................................................................................................................................................... -5,524 625 -7,311 -7 ,04 6 14,729 16,082

Less minority interest in consolidated subsidiaries........................................................................................................ 0 0 37 5 1 0

Net income before taxes........................................................................................................................................................... 679,948 479,381 536,940 734,060 961,402 1,119,683

Franchise and income taxes— total....................................................................................................................................... 201,792 161,870 171,549 227,088 280,260 310,945

Federal income tax......................................................................................................................................................................................... 114,500 81,089 66,543 107,801 139,242 171,002

State and local franchise and income taxes.................................................................................................................................. 87,292 80,781 105,006 119,287 141,018 139,943

Net income.................................................................................................................................................................................... 478,156 317,511 365,391 506,972 681,142 808,738

INCOME OF INSURED BANKS 1 77

Digitized for FRASER 

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Federal Reserve Bank of St. Louis
Table 120. INCOME OF INSURED MUTUAL SAVINGS BANKS IN THE UNITED STATES (STATES AND OTHER AREAS), 19 7 3 - 1978-CONTINUED

(Amounts in thousands of dollars)

Income item 1973 1974 1975 19761 19771 19781

Memoranda

Change in surplus accounts, n e t...............................................................

Discount on securities, total................................................................................................................................................................................

561,695

27,805

369,166

32,406

407,314

109,383

545,665

41,722

834,461

40,381

826,213

44,280

Average assets and liabilities 1

Assets— total.............................................................................................................................................

Cash and due from banks................................................................................................................................................................................

U.S. Government and agency securities...................................................................................................................................................

Other securities.................................................................................................................................................................................................

Real estate mortgage loans..........................................................................................................................................................................

Other loans and discounts.............................................................................................................................................................................

Other real estate............ ................................................................................................................................................................................

All other assets....................................................................................................................................................................................................

Liabilities and surplus accounts— to ta l.......................................................................................................

Total deposits....................................................................................................................................................................................................

Savings and time deposits.......................................................................................................................................................................

Demand deposits......................................................................

Other liabilities...........................................................................

Total surplus accounts.....................................................................

90.850.840

1,676,216

6,299,082

16,238,983

61,600,178

2,967,740

170,868

1,897,773

90.850.840

83,212,442

82,350,237

862,205

1,381,121

6,257,277

94.426.708

1,825,066

5,950,081

16,410,896

64,695,689

3,250,960

207,125

2,086,891

94.426.708

85,994,384

85,097,902

896,482

1,763,885

6,668,439

101.714.468

2,067,540

7,823,837

19,035,575

66,698,116

3,388,551

320,468

2,380,381

101.714.468

92,850,364

91,885,361

965,003

1,803,741

7,060,363

114.044.800

1,934,535

11,482,069

23,065,574

70,314,531

4,084,414

457,255

2,706,422

114.044.800

104,554,349

103,540,616

1,013,733

1,849,625

7,640,826

126.744.049

2,102,650

14,456,447

25,823,209

75,523,639

5,355,664

478,620

3,003,820

126.744.049

116,405,474

115,084,387

1,321,087

1,947,906

8,390,669

137.407.307

2,587,020

15,859,816

27,146,283

81,925,483

6,171,468

415,516

3,301,721

137.407.307

125,472,005

123,758,082

1,713,923

2,683,144

9,252,158

Number of employees (end of period)........................................................................................................................................................... 35,668 37,494 40,261 45,040 49,466 53,806

Number of banks (end of period)....................................................................................................................................................................... 322 320 329 329 323 325

1 Averages of amounts reported at beginning, middle, and end of year.

1 78 FEDERAL DEPOSIT INSURANCE CORPORATION

Digitized for FRASER 

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Federal Reserve Bank of St. Louis
Table 121. RATIO OF INCOME OF INSURED MUTUAL SAVINGS BANKS IN THE UNITED STATES (STATES AND OTHER AREAS), 1 9 73 -197 8

Income item 1973 1974 1975 19761 19771 19781

Amounts per $100 of operating income

Operating income— total............................................................................................................................................................................... $100.00 $100.00 $100.00 $100.00 $100.00 $100.00

Interest and fees on real estate mortgage loans—n e t........................................................................................................................................ 68.78 69.45 67.10 62.85 61.08 61.11

Interest and fees on other loans....................................................................................................................................................................................... 4.68 5.21 3.95 4.03 4.61 5.65

Interest on U.S. Government and agency securities.............................................................................................................................................. 6.83 6.23 7.91 10.45 11.66 11.56

Interest on corporate bonds................................................................................................................................................................................................ 12.04 11.47 12.95 14.04 13.77 12.45

Interest on State, county, and municipal obligations.............................................................................................................................................. .87 .73 1.04 1.72 1.77 1.80

Interest on other bonds, notes, and debentures....................................................................................................................................................... 1.93 1.94 2.10 2.42 2.71 2.75

Dividends on corporate stock............................................................................................................................................................................................. 2.45 2.63 2.67 2.49 2.42 2.46

Income from service operations....................................................................................................................................................................................... .59 .43 .46 .48 .51 54

Other operating income........................................................................................................................................................................................................ 1.83 1.91 1.82 1.52 1.47 1.68

Operating expense— to ta l............................................................................................................................................................................. 13.38 14.48 15.09 15.77 15.58 16.53

Salaries........................................................................................................................................................................................................................................ 5.06 5.31 5.41 5.30 5.29 5.37

Pensions and other employee benefits........................................................................................................................................................................ 1.20 1.29 1.37 1.38 1.37 1.39

Interest on borrowed money................................................................................................................................................................................................ .48 1.02 .77 .55 .50 1.15

Occupancy expense of bank premises (including taxes, depreciation, maintenance, rentals)—net................................................... 1.58 1.76 1.89 1.90 1.83 1.78

Furniture and equipment (including recurring depreciation)................................................................................................................................ .61 .68 .73 .75 .79 .83

Actual net loan losses (charge-offs less recoveries).............................................................................................................................................. .15 .15 .30 .95 .74 1.03

Other operating expenses..................................................................................................................................................................................................... 4.30 4.27 4.62 4.94 5.06 4.98

Net operating income before interest and dividends on deposits................................................................................................... 86.62 85.52 84.91 84.23 84.42 83.47

Interest and dividends on deposits— total.............................................................................................................................................. 73.88 75.83 76.55 75.64 74.40 72.44

Savings deposits2.................................................................................................................................................................................................................... 58.82 55.63 52.63 50.05 44.89 36.95

Other time deposits^.............................................................................................................................................................................................................. 15.06 20.20 23.92 25.59 29.51 35.49

Net operating income after interest and dividends on deposits...................................................................................................... 12.74 9.69 8.36 8.59 10.02 11.03

Net realized gains (or losses) on— to tal................................................................................................................................................. — 1.53 - 2 . 3 0 - . 8 8 .24 .20 - . 5 0

Securities..................................................................................................................................................................................................................................... -1 .0 9 — 1.72 - .3 6 .59 .51 - .4 2

Real estate mortgage loans................................................................................................................................................................................................ - .3 4 - .6 0 - .3 2 - .2 6 - .4 4 -.2 1

Real estate.................................................................................................................................................................................................................................. -.0 1 .01 - .1 0 -.0 1 - .0 3 - .0 2

Other transactions. . . . .-..................................................................................................................................................................................................... - .0 9 .01 - .1 0 - .0 8 .16 .15

Less minority interest in consolidated subsidiaries............................................................................................................................. .00 .00 (1) (1) (1) .00

Net income before taxes............................................................................................................................................................................... 11.21 7.39 7.48 8.83 10.22 10.53

Franchise and income taxes— to tal........................................................................................................................................................... 3.33 2.49 2.39 2.73 2.98 2.93

Federal income tax................................................................................................................................................................................................................. 1.89 1.25 .93 1.30 1.48 1.61

State and local franchise and income taxes................................................................................................................................................................ 1.44 1.24 1.46 1.43 1.50 1.32

Net income........................................................................................................................................................................................................ 7.88 4.90 5.09 6.10 7.24 7.60

INCOME OF INSURED BANKS 1 79

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Federal Reserve Bank of St. Louis
Table 121. RATIO OF INCOME OF INSURED MUTUAL SAVINGS BANKS IN THE UNITED STATES (STATES AND OTHER AREAS), 19 7 3 - 1978-CONTINUED

Income item 1973 1974 1975 19761 19771 19781

Amounts per $100 of total assets^

Operating income —total............................................................................................................................................................................................................ 6.68 6.87 7.06 7.29 7.42 7.74

Operating expense —total......................................................................................................................................................................................................... .90 .99 1.06 1.15 1.16 1.28

Net operating income before interest and dividends on deposits........................................................................................................................... 5.78 5.88 5.99 6.14 6.26 6.46

Interest and dividends on deposits—total......................................................................................................................................................................... 4.93 5.21 5.40 5.51 5.52 5.61

Net operating income after interest and dividends on deposits.............................................................................................................................. .85 .67 .59 .63 .74 .85

Net realized gains (or losses)—total.................................................................................................................................................................................. - .1 0 - .1 6 - .0 6 .02 .01 - .0 4

Net income before taxes........................................................................................................................................................................................................... .75 .51 .53 .64 .76 .81

Franchise and income taxes—total........................................................................................................................................................................................ .22 .17 .17 .20 .22 .23

.53 .34 .36 .44 .54 .59

Special ratios^

Interest on U.S. Government and agency securities per $100 of U.S. Government and agency securities........................................ 6.58 6.79 7.25 7.57 7.59 7.75

Interest and dividends on other securities per $100 of other securities............................................................................................................ 6.46 6.62 7.07 7.45 7.53 7.63

Interest and fees on real estate mortgage loans per $100 of real estate loans.............................................................................................. 6.77 6.96 7.22 7.43 7.61 7.94

Interest and fees on other loans per $100 of other loans......................................................................................................................................... 9.55 10.39 8.36 8.19 8.09 9.75

Interest and dividends on deposits per $100 of savings and time deposits....................................................................................................... 5.44 5.78 5.98 6.07 6.08 6.23

Net income per $100 of total surplus accounts.............................................................................................................................................................. 7.64 4.76 5.18 6.64 8.12 8.74

Number of banks (end of period).......................................................................................................................................................................................... 322 320 329 329 323 325

1 Less than 0.005.

2See note to table 120.

180 FEDERAL DEPOSIT INSURANCE CORPORATION

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BANKS CLOSED BECAUSE OF FINANCIAL DIFFICULTIES: 

FDIC INCOME, DISBURSEMENTS, AND LOSSES

Table 122. Number and deposits of banks closed because of financial difficulties, 1934 — 1978

Table 123. Insured banks requiring disbursements by the Federal Deposit Insurance Corporation during 

1978

Table 124. Depositors, deposits, and disbursements in failed banks requiring disbursements by the Federal 

Deposit Insurance Corporation, 1934— 1978

Banks grouped by class of bank, year of deposit payoff or deposit assumption, amount of

deposits, and State

Table 125. Recoveries and losses by the Federal Deposit Insurance Corporation on principal disbursements 

for protection of depositors, 1934— 1978

Table 126. Analysis of disbursements, recoveries, and losses in deposit insurance transactions, January 1, 

1934— December 31, 1978

Table 1 27. Income and expenses, Federal Deposit Insurance Corporation, by year, from beginning of operations, September 11, 1933, to December 31, 1978

Table 128. Protection of depositors of failed banks requiring disbursements by the Federal Deposit 

Insurance Corporation, 1934— 1978

Table 129. Insured deposits and the deposit insurance fund, 1934— 1978

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Federal Reserve Bank of St. Louis
Deposit insurance disbursements

Disbursements by the Federal Deposit Insurance Corporation to protect 

depositors are made when the insured deposits of banks in financial 

difficulties are paid off, or when the deposits of a failing bank are assumed by 

another insured bank with the financial aid of the Corporation. In deposit 

payoff cases, the disbursement is the amount paid by the Corporation on 

insured deposits. In deposit assumption cases, the principal disbursement is 

the amount loaned to failing banks, or the price paid for assets purchased from 

them; additional disbursements are made in those cases as advances for protection of assets in process of liquidation and for liquidation expenses.

Under its section 13(c) authority, the Corporation has made disbursements 

to four operating banks. The amounts of these disbursements are included in 

table 126, but are not included in tables 124 and 125.

Noninsured bank failures

Statistics in this report on failures of noninsured banks are compiled from 

information obtained from State banking departments, field supervisory 

officials, and other sources. The Corporation received no reports of noninsured bank closures due to financial difficulties in 1978.

For detailed data regarding noninsured banks that suspended in the 

years 1934-1962, see the Annual Report for 1963, pp. 27-41. For 

1 963-1978, see table 1 22 of this report, and previous reports for respective 

years.

Sources of data

Insured banks: books of bank at date of closing; and books of FDIC, December 31, 1978.

182 FEDERAL DEPOSIT INSURANCE CORPORATION

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Federal Reserve Bank of St. Louis
Table 122. NUMBER AND DEPOSITS OF BANKS CLOSED BECAUSE OF FINANCIAL DIFFICULTIES, 1 9 3 4 -1 9 7 8

Year

Number Deposits (in thousands of dollars)

Total

Non

insured!

Insured

Total

Noninsuredl

Insured

Total

Without 

disbursements 

by FDIC2

With 

disbursements 

by FDIC3

Total

Without 

disbursements 

by FDIC2

With 

disbursements 

by FDIC3

To tal............................ 692 136 556 8 548 6,081,926 143,500 5,938,426 41,147 5,897,279

1934 ................................ 61 52 9 9 37,332 35,364 1,968 1,968

1935 ................................ 32 6 26 25 13,988 583 13.405 85 13,320

1936 ................................ 72 3 69 69 28,100 592 27,508 27,508

1937 ................................ 84 7 77 75 34,205 528 33,677 328 33,349

1938 ................................ 81 7 74 74 60,722 1,038 59,684 59,684

1939 ................................ 72 12 60 60 160,211 2,439 157,772 157,772

1940 ................................ 48 5 43 43 142,788 358 142,430 142,430

1941................................ 17 2 15 15 29,796 79 29,717 29,717

1942 ................................ 23 3 20 20 19,540 355 19,185 19,185

1943 ................................ 5 5 5 12,525 12,525 12,525

1944 ................................ 2 2 2 1,915 U 1 5 1*915

1945 ................................ 1 1 1 5,695 5,695 5,695

1946 ................................ 2 1 1 1 494 147 347 347

1947 ................................ 6 1 5 5 7,207 167 7,040 7,040

1948 ................................ 3 3 3 10,674 10,674 10,674

1949 ................................ 9 4 5 4 9,217 2,552 6,665 1,190 5475

1950 ................................ 5 1 4 4 5,555 42 5,513 5,513

1951................................ 5 3 2 2 6,464 3,056 3,408 3,408

1952 ................................ 4 1 3 3 3,313 143 3,170 3,170

1953 ................................ 5 1 4 2 45,101 390 44,711 26,449 18,262

1954 ................................ 4 2 2 2 2,948 1,950 998 998

1955 ................................ 5 5 5 11,953 11,953 11,953

1956 ................................ 3 1 2 2 11,690 360 1 U 30 1U 30

1957 ................................ 3 1 2 1 12,502 1,255 11,247 10,084 1,163

1958 ................................ 9 5 4 4 10,413 2,173 8,240 8,240

1959 ................................ 3 3 3 2,593 2,593 2,593

1960 ................................ 2 1 1 1 7,965 1,035 6^930 6^930

1961................................ 9 4 5 5 10,611 1,675 8,936 8,936

1962 ................................ 3 2 1 4,231 1,220 3,011 3,011

1963 ................................ 2 2 2 23,444 23,444 23,444

1964 ................................ 8 1 7 7 23,867 429 23,438 23,438

1965 ................................ 9 4 5 5 45,256 1,395 43,861 43,861

1966 ................................ 8 1 7 7 106,171 2,648 103,523 103,523

1967 ................................ 4 4 4 10,878 10,878 10,878

1968 ................................ 3 3 3 22,524 22,524 22*524

1969 ................................ 9 a 9 40,134 40,134 40J 34

1970 ................................ 84 14 7 7 55,2444 4234 54,821 54,821

1971................................ 6 6 6 132,152 132,152 132,152

1972 ................................ 3 2 1 1 99,784 79,304 20,480 20^480

1973 ................................ 6 6 6 971,296 971,296 971,296

1974 ................................ 4 4 4 1,575,832 1,575!832 1,575^832

1975 ................................ 144 14 13 13 340,5744 1,0004 339,574 339^574

1976 ................................ 17 1 16 16 865,659 800 864,859 864,859

1977 ................................ 6 6 6 205,208 205,208 205,208

1978 ................................ 7 7 7 854,154 854,154 854’, 154

1 For information regarding each of these banks, see table 22 in the 1963 Annual Report (1963 and prior years), and explanatory notes to tables regarding banks closed because of financial difficulties in subsequent 

annual reports. One noninsured bank placed in receivership in 1934, with no deposits at time of closing, is omitted (see table 22, note 9). Deposits are unavailable for seven banks.

2For information regarding these cases, see table 23 of the Annual Report for 1963.

3For information regarding each bank, see the Annual Report for 1958, pp. 48 — 83 and pp. 9 8 — 127, and tables regarding deposit insurance disbursements in subsequent annual reports. Deposits are adjusted as 

of December 31, 1978.

^Revised.

BANKS CLOSED; FDIC INCOME, DISBURSEMENTS, AND LOSSES 183

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Federal Reserve Bank of St. Louis
Table 123. INSURED BANKS REQUIRING DISBURSEMENTS BY THE FEDERAL DEPOSIT INSURANCE CORPORATION DURING 1978

Case

number Name and location

Class 

of bank

Number of 

depositors or 

accounts^

Date of closing or 

deposit assumption

First payment to 

depositors or 

disbursements by FDIC

FDIC

disbursement?

Receiver or liquidating agent 

or assuming bank

Deposit

payoff

310 Watkins Banking Company 

Faunsdale, Alabama

NM 492 July 21, 1978 July 24, 1978 $ 818,259 Federal Deposit Insurance Corporation

Deposit

assumption

239 The Drovers' National Bank 

of Chicago. Illinois

N 43,800 January 19, 1978 118,745,794 Drovers' Bank of Chicago 

Chicago, Illinois

240 First Bank of Macon County 

Notasulga. Alabama

NM 2,919 January 26, 1978 2,129,469 First Alabama Bank 

Notasulga, Alabama

241 Wilcox County Bank 

Camden, Alabama

NM 3,447 March 1, 1978 8,200,572 Town-Country National Bank 

Camden, Alabama

242 Banco Credito y Ahorro Ponceno 

Ponce, Puerto Rico

NM 294,000 March 31, 1978 323,513,861 Banco Popular de Puerto Rico 

San Juan, Puerto Rico

Banco de Santander-Puerto Rico 

San Juan, Puerto Rico

243 Banco de Ahorro de Puerto Rico 

San Juan, Hato Rey, Puerto Rico

NM 4,202 September 5, 1978 9,526,147 Banco Commercial de Mayaguez 

Mayaguez, Puerto Rico

244 North Point State Bank 

Arlington Heights, Illinois

NM 15,500 December 16, 1978 14,739,518 The Bank & Trust Company of 

Arlington Heights 

Arlington Heights, Illinois

Assets 1 Liabilities and capital accounts

Case

number

Cash and 

due from 

banks

U.S. Government 

obligations

Other

securities

Loans, 

discounts, and 

overdrafts

Banking house, 

furniture, and 

fixtures

Other 

real estate

Other

assets

Total Deposits Other

liabilities

Capital

stock

Other capital 

accounts

Deposit

payoff

310 $ 140,240 $ 417,857 $ 69,170 $ 996,973 $ 33,074 $ 2,518 $ 1,659,832 $ 1,282,300 $ 261,967 $ 25,000 $ 90,565

Deposit

assumption

239 25,812,566 33,407,874 24,773,620 118,385,283 3,395,957 15,022,418 6,028,710 226,826,428 197,165,861 29,744,830 5,500,000 (5,584,263)

240 249,770 748,225 19,656 3,489,851 5,898 13,264 11,661 4,538,325 3,825,059 348,588 100,000 264,678

241 277,637 1,906,739 849,012 9,345,874 212,095 24,038 36,713 12,652,108 10,585,424 1,723,777 250,000 92,907

242 36,606,190 42,325,511 81,539,041 492,269,015 3,785,452 7,023,155 48,991,770 712,540,134 607,610,688 79,455,389 13,457,525 12,016,532

243 691,320 300,000 - 7,244,109 213,698 701,533 201,353 9,352,013 11.831,012 393,369 519,674 (3,392,042)

244 2,717,464 498,850 2,990,488 18,756,940 432,472 - 1,069,784 26,465,998 21,850,142 1,716,013 410,000 2,489,843

1 Figures as determined by FDIC Agents after adjustments of books of the bank immediately following its closing.

2|ncludes disbursements made to December 31, 1978, plus additional disbursements estimated to be required in these cases.

184 FEDERAL DEPOSIT INSURANCE CORPORATION

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Federal Reserve Bank of St. Louis
Table 124. DEPOSITORS, DEPOSITS, AND DISBURSEMENTS IN FAILED BANKS REQUIRING DISBURSEMENTS BY THE 

FEDERAL DEPOSIT INSURANCE CORPORATION, 1 9 3 4 -1 9 7 8 

BANKS GROUPED BY CLASS OF BANK, YEAR OF DEPOSIT PAYOFF OR DEPOSIT ASSUMPTION, AMOUNT OF DEPOSITS, AND STATE

Classification

Number of banks Number of depositors!

Deposits"!

(in thousands of dollars)

Disbursements by FDIC1 

(in thousands of dollars)

Total Payoff

cases

Assump

tion

cases

Total Payoff

cases

Assumption

cases

Total Payoff

cases

Assump

tion

cases

Principal disbursements

Advances and 

expenses2

Total Payoff

cases3

Assumption

cases^

Payoff

cases5

Assumption

casesS

All banks................................................ 548 304 244 3,764,874 623,546 3,141,328 5,897,279 469,533 5,427,746 4,678,8668 325,951 4,352,915 9,148 204,637

Class of bank

National.................................................... 101 36 65 1,538,957 108,812 1,430,145 3,262,117 113,780 3,148,337 3,061,622 65,230 2,996,392 2,917 106,286

State member F.R.S............................. 30 10 20 428,129 88,894 339,235 438,232 34,388 403,844 322,675 26,500 296,175 1,112 23,953

Nonmember F.R.S.................................. 417 258 159 1,797,788 425,840 1,371,948 2,196,930 321,365 1,875,565 1,294,569 234,221 1,060,348 5,119 74,398

Year?

1934................................................................ 9 9 15,767 15,767 1,968 1,968 941 941 43

1935 ................................................................ 25 24 1 44,655 32,331 12,324 U 3 2 0 9^091 4,229 8,891 6,026 2,865 108 272

1936 ................................................................ 69 42 27 89,018 43,225 45,793 27,508 11,241 16,267 14,460 7,735 6,725 67 934

1937 ................................................................ 75 50 25 130,387 74,148 56,239 33,349 14,960 18,389 19,481 12,365 7,116 103 905

1938 ................................................................ 74 50 24 203,961 44,288 159,673 59,684 10,296 49,388 30,479 9,092 21,387 93 4,902

1939 ................................................................ 60 32 28 392,718 90,169 302,549 157,772 32,738 125,034 67,770 26,196 41,574 162 17,603

1940................................................................ 43 19 24 256,361 20,667 235,694 142,430 5,657 136,773 74,134 4,895 69,239 89 17,237

1941................................................................ 15 8 7 73,005 38,594 34,411 29,717 14,730 14,987 23,880 12,278 11,602 50 1,479

1942 ................................................................ 20 6 14 60,688 5,717 54,971 19,185 1,816 17,369 10,825 1,612 9,213 38 1,076

1943................................................................ 5 4 1 27,371 16,917 10,454 12,525 6,637 5,888 7,172 5,500 1,672 53 72

1944................................................................ 2 1 1 5,487 899 4,588 1,915 456 1,459 1,503 404 1,099 9 37

1945 ................................................................ 1 1 12,483 12,483 5,695 5,695 1,768 1,768 96

1946 ................................................................ 1 1 1,383 1,383 347 347 265 265 ] ]

1947 ................................................................ 5 5 10,637 10,637 7,040 7,040 1,724 1 724

1948 ............ 3 3 18^540 18,540 10,674 10 674 2 990 ? QQfl

1949 ................................................................ 4 4 5^671 5*671 5*475 5,475 2,552 2 552

zuu 

1 fifi

1950 ................................................................ 4 4 6,366 6*366 5*513 5,513 3,986 3*986

1 Du

524

1951................................................................ 2 2 5,276 5*276 3^408 3 408 1,885 1 885 197

1952 ................................................................ 3 3 6*752 6J52 3*170 3,170 1^369 1 369

1 L I

1 QR

1953 ................................................................ 2 2 24,469 24,469 18,262 18,262 5 017 5 017

I j j

428

1954................................................................ 2 2 1,811 1*811 998 998 913 913 145

1955 ................................................................ 5 1 17,790 8,080 9^710 11,953 6,503 5,450 6,784 4,438 2,346 106 665

1956 ................................................................ 2 1 15,197 5,465 9,732 11,330 4,702 6,628 3,458 2,795 663 87 51

1957 ................................................................ 1 2,338 2 338 1,163 1,163 1,031 1,031 20

1958 ................................................................ 4 3 1 9,587 4,380 5,207 8^240 4! 156 4,084 3^026 2,796 230 38 31

1959 ................................................................ 3 3 3,073 3,073 2,593 2,593 1,835 1 835 51

1960 ................................................................ 1 1 11,171 11,171 6,930 6,930 4,765 4,765 82

BANKS CLOSED; FDIC INCOME, DISBURSEMENTS, AND LOSSES 185

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Federal Reserve Bank of St. Louis
Table 124. DEPOSITORS, DEPOSITS, AND DISBURSEMENTS IN FAILED BANKS REQUIRING DISBURSEMENTS BY THE 

FEDERAL DEPOSIT INSURANCE CORPORATION, 1934-1978-CONTINUED 

BANKS GROUPED BY CLASS OF BANK, YEAR OF DEPOSIT PAYOFF OR DEPOSIT ASSUMPTION. AMOUNT OF DEPOSITS, AND STATE

Classification

Number of banks Number of depositor!

Deposits!

(in thousands of dollars)

Disbursements by FDICf 

(in thousands of dollars)

Total Payoff

cases

Assumption

cases

Total Payoff

cases

Assumption

cases

Total Payoff

cases

Assumption

cases

Principal disbursements

Advances and 

expenses2

Total Payoff

cases3

Assumption

cases^

Payoff

cases5

Assump

tion

cases6

1961 5 5 8 301 8,301 8,936 8,936 6,201 6,201 154

1963 2 2 36,433 36,433 23,444 23,444 19,230 19,230 349

1964 7 7 19,934 19,934 23,438 23,438 13,744 13,744 599

1965 ................................................................ 5 3 2 15,817 14,363 1,454 43,861 42,889 972 11,431 10,958 473 640 123

1966 ................................................................ 7 1 6 95,424 1,012 94,412 103,523 774 102,749 8,732 735 7.997 35 1,609

1967 4 4 4 729 4,729 10,878 10,878 8,120 8,120 241

1968 3 3 12,850 12,850 22,524 22,524 5,586 5,586 1,114

1969 ................................................................ 9 4 5 27,374 6,544 20,830 40,134 9,012 31,122 37,619 7,599 30,020 300 4,401

1970 ................................................................ 7 4 3 31,433 20,403 11,030 54,821 33,489 21,332 49,318 29,354 19,964 698 1,859

1971................................................................ 6 5 1 71,950 31,850 40,100 132,152 74,605 57,547 162,089 53,790 108,299 788 10,795

1972 1 1 23,655 23,655 20,480 20,480 16,274 16,274 375

1973 ................................................................ 6 3 ’ 3 349,699 8,382 341,317 971,296 25,795 945,501 410,768 16,802 393,966 1,320 1,001

1974 4 4 704,283 704,283 1,575,832 1,575,832 2,257,6308 2,257,630 82,003

1975 ................................................................ 13 3 10 110,367 21,925 88,442 339,574 39,902 299,672 303,131 25,992 277,139 1,316 19,551

1976 ................................................................ 16 3 13 340,731 8,246 332,485 864,859 18,859 846,000 549,376 11,630 537,746 1,097 21,713

1977 ................................................................ 6 6 95,548 24 95,524 205,208 108 205,100 21,8109 21,810 1,761

1978 ................................................................ 7 1 6 364,384 516 363,868 854,154 1,286 852,868 494,903 818 494,085 37 11,156

Banks with deposits of:

Less than $100,000 ................................ 107 83 24 38,347 29,695 8,652 6,418 4,947 1,471 5,000 4,309 691 88 154

$100,000 to $250,000 .......................... 109 86 23 83,370 65,512 17,858 17,759 13,920 3,839 12,906 11,554 1,352 209 173

$250,000 to $500,000.......................... 62 37 25 92,179 57,287 34,892 22,315 12,921 9,394 15,615 10,549 5,066 164 611

$500,000 to $1,000,000....................... 72 36 36 160,388 74,296 86,092 54,424 26,820 27,604 36,057 20,962 15,095 444 2,352

$1,000,000 to $2,000,000 ................. 59 22 37 211,352 70,846 140,506 79,547 29,173 50,374 46,466 22,886 23,580 738 3,950

$2,000,000 to $5,000,000 ................. 58 22 36 302,665 89,127 213,538 190,451 70,385 120,066 114,576 52,052 62,524 1,177 9,329

$5,000,000 to $10,000,000 34 7 27 294,630 50,445 244,185 231,127 55,868 175,259 127,930 37,964 89,966 950 12,534

$10,000,000 to $25,000,000 ............ 24 9 15 375,371 146,454 228,917 384,848 148,421 236,427 237,983 108,954 129,029 2,544 12,181

$25,000,000 to $50,000,000 ........... 7 1 6 308,637 12,481 296,156 257,585 40,176 217,409 118,732 9,700 109,032 581 27,613

$50,000,000 to $100,000,000 .... 6 1 5 244,265 27,403 216,862 525,377 66,902 458,475 344,942 47,021 297,921 513 23,156

$100 000,000 to $500,000,000 7 7 394,670 394,670 1,142,879 1,142,879 705,7579 705,757 810 36,726

$50o!ooo!ooo to $1,000,000,000 2

1

2 629 000 629,000 1,539,566 1,539,566 728,329 728,329 930 3,894

$1 000 000 000 or mors 1 630!000 630,000 1,444,982 1,444,982 2,184,5718 2,184,571 71,962

State

Alabama.......................................................... 7 3 4 16,048 2,571 13,477 21,865 5,270 16,595 14,927 3,384 11,543 131 572

Arizona . . 1 1 2,692 2,692 5,044 5,044 5,082 5,082 394

Arkansas ....................................................... 8 6 2 6,350 4,541 1,809 4,836 1,942 2,894 3,408 1,576 1,832 43 293

California....................................................... 6 3 3 390,819 17,890 372,929 1,032,658 46,220 986,438 442,093 12,946 429,147 1,605 3,809

Colorado.......................................................... 8 4 4 18,852 6,082 12,770 24,749 6,404 18,345 13,926 4,611 9,315 292 2,476

186 FEDERAL DEPOSIT INSURANCE CORPORATION

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Federal Reserve Bank of St. Louis
Connecticut.................................................... 3 2 1 8,839 5,379 3,460 4,326 1,526 2,800 3,375 1,242 2,133 8 496

Florida............................................................. 5 2 3 14,082 1,725 12,357 17,665 2,668 14,997 11,171 2,139 9,032 65 698

Georgia.......................................................... 12 8 4 32,442 8,797 23,645 53,981 1,870 52,111 36,993 1,551 35,442 33 2,096

Idaho................................................................ 2 2 2,451 2,451 1,894 1,894 1,493 1,493 29

Illinois............................................................. 25 10 15 160,955 44,383 116,572 334,275 28,972 305,303 212^366 23^924 188,442 513 10,647

Indiana............................................................. 20 15 5 30,006 12,549 17,457 13,595 3,933 9,662 6,197 3,096 3,101 39 384

Iow a................................................................ 11 5 6 25,206 5,736 19,470 29,964 8,535 21,429 17,670 6,469 11,201 149 730

Kansas............................................................. 11 6 5 8,065 3,824 4,241 7,665 4,358 3,307 5,672 3,601 2,071 60 288

Kentucky....................................................... 26 20 6 40,313 19,352 20,961 16,072 5,768 10,304 12,479 5,041 7,438 156 621

Louisiana....................................................... 6 4 2 79,117 8,999 70,118 176,274 9,735 166,539 141,915 4,937 136,978 149 3,982

1 1 9 710 9 710 5,450 5,450 2,346 2,346 665

Maryland....................................................... 5 2 3 22,567 6,643 15,924 4^566 828 3J38 3! 109 735 2,374 ' ’ 9 371

Massachusetts............................................ 5 1 4 42,279 23,655 18,624 38,696 20,480 18,216 27,257 16,275 10,982 374 1,994

Michigan....................................................... 14 5 9 172,607 10,452 162,155 194,399 13,477 180,922 142,516 12,242 130,274 204 13,677

Minnesota.................................................... 5 5 2,650 2,650 818 818 640 640 17

Mississippi.................................................... 4 3 1 14,351 1,651 12,700 15,686 334 15.352 12,012 257 11,755 5 518

Missouri.......................................................... 52 38 14 55,554 37,977 17,577 29,153 18,167 10,986 21,492 14,028 7,464 330 1,185

Montana.......................................................... 5 3 2 1,500 849 651 1,095 215 880 639 186 453 6 21

Nebraska....................................................... 8 8 7,773 7,773 11,644 11,644 8,116 8,116 151

New Hampshire............................................ 1 1 1,780 1,780 296 296 117 117 8

New Jersey................................................. 42 13 29 563,917 113,692 450,225 250,383 49,122 201,261 121,994 40,049 81,945 519 22,790

New York....................................................... 28 3 25 925,621 28,440 897,181 1,755,500 13,286 1,742,214 2,407,8598 10,836 2,397,023 842 82,809

North Carolina.............................................. 7 2 5 10,408 3,677 6,731 3,266 1,421 1,845 2,387 1,156 1,231 23 179

North Dakota............................................... 29 18 11 14,103 6,760 7,343 3,830 1,552 2,278 2.656 1,397 1,259 24 203

Ohio................................................................... 5 2 3 21,251 7,585 13,666 102,838 2,345 100,493 90,788 1,610 89,178 7 4,388

Oklahoma....................................................... 13 8 5 28,672 20,149 8,523 20,720 11,053 9,667 11,665 7,936 3,729 178 800

Oregon............................................................. 2 1 1 3,439 1,230 2,209 2,670 1,368 1,302 1.948 986 962 11 81

Pennsylvania................................................. 31 8 23 182,590 43,828 138,762 96,907 14,340 82,567 67,485 10,133 57,352 75 10,736

South Carolina............................................ 3 1 2 68,080 403 67,677 113,553 136 113,417 60,650 136 60,514 8,751

South Dakota.............................................. 23 22 1 12,515 11,412 1,103 2,988 2,862 126 2,411 2,388 23 26 9

Tennessee .................................................... 13 8 5 132,358 9,993 122,365 338,234 1,620 336,614 128,008 1,164 126,844 28 8,289

Texas................................................................ 46 33 13 125,988 80,965 45,023 210,359 142,151 68,208 137,947 97,279 40,668 1,760 4,010

Utah................................................................... 1 1 3,254 3,254 5,992 5,992 3,538 3 538 300

Vermont.......................................................... 3 2 1 11 !o57 8,687 2^370 3,'725 3,375 350 3,445 3,259 186 ’2l' 22

Virginia .......................................................... 9 4 5 35,715 12,638 23,077 17,779 7,652 10,127 8,263 3,867 4,396 305 505

Washington.................................................... 1 1 4,179 4,179 1,538 1,538 935 935 512

West Virginia.............................................. 3 3 8,346 8,346 2,006 2,006 1,458 1,458 11

Wisconsin....................................................... 33 20 13 62,247 18,739 43,508 112,627 5,966 106,661 117,980 5,096 112,884 54 10,255

Wyoming....................................................... 1 1 3,212 3,212 2,033 2,033 202 202 19

Other areas

Virgin Islands.............................................. 1 1 11,073 11,073 14,219 14,219 8,712 8,712 897

Puerto Rico.................................................... 3 ' 3 369,840 369,840 789,442 789,442 351,5229 351,522 4,053

1 Adjusted to December 31, 1978. In assumption cases, number of depositors refers to number of deposit accounts.

2Excludes $1,429 thousand of nonrecoverable insurance expenses in cases that were resolved without payment of claims or a disbursement to facilitate assumption of deposits by another insured bank and other 

expenses of field liquidation employees not chargeable to liquidation activities.

3|ncludes estimated additional disbursements in active cases.

^Excludes excess collections turned over to banks as additional purchase price at termination of liquidation.

5These disbursements are not recoverable by the Corporation; they consist almost wholly of field payoff expenses.

6|ncludes advances to protect assets and liquidation expenses of $192,387 thousand, all of which have been fully recovered by the Corporation, and $12,250 thousand of nonrecoverable expenses.

^No cases in 1962 required disbursements. Disbursement totals for each year relate to cases occurring during that year, including disbursements made in subsequent years.

“ includes disbursements by liquidators in field ($1.5 billion) which were previously excluded from this table.

9|n 1977 the assets of Banco Economias were purchased outright by the Corporation. Disbursements in the case are included in table 126 under "Other disbursements” and are not included in this table. 

Note: Due to rounding diffierences, components may not add to totals.

BANKS CLOSED; FDIC INCOME, DISBURSEMENTS, AND LOSSES 187

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Federal Reserve Bank of St. Louis
Table 125. RECOVERIES AND LOSSES BY THE FEDERAL DEPOSIT INSURANCE CORPORATION ON PRINCIPAL 

DISBURSMENTS FOR PROTECTION OF DEPOSITORS, 1934-78

(Amounts in thousands of dollars)

Liquidation All cases Deposit payoff cases Deposit assumption cases

status and year 

of deposit payoff Number Principal Recoveries Estimated Number Principal Recoveries Estimated Number Principal Recoveries Estimated

or deposit of disburse to Dec. 31, additional of disburse to Dec. 31, additional of disburse to Dec. 31, additional

assumption banks ments 1978 recoveries Losses1 banks ments2 1978 recoveries Losses 1 banks ments3 1978 recoveries Losses 1

Total.......................... 548 4.678.866 3,539,242 852,326 287,298 304 325,951 272,345 20,366 33,240 244 4,352,915 3,266,897 831,960 254,058

Status

Active........... 73 4.281,170 3,173,606 852,326 255,238 23 173,997 139,156 20,366 14,475 50 4,107,173 3,034,450 831,960 240,763

Terminated . . . 475 397.696 365,636 32,060 281 151,954 133,189 18,765 194 245,742 232,447 13,295

Year4

1934. . . 9 941 734 207 9 941 734 207

1935. 25 8,891 6,206 3 2,682 24 6,026 4,274 1,752 1 2,865 1.932 3 930

1936. 69 14,460 12,127 2,333 42 7,735 6,397 1,338 27 6,725 5,730 995

1937. 75 19,481 15,808 3,672 50 12,365 9,718 2,647 25 7,116 6,090 1,025

1938 74 30,479 28,055 2,425 50 9,092 7,908 1,184 24 21,387 20,147 1,241

1939 60 67,770 60,618 7,152 32 26,196 20,399 5,797 28 41,574 40,219 1,355

1940. 43 74,134 70,338 3,796 19 4,895 4,313 582 24 69,239 66,025 3,214

1941 15 23,880 23,290 591 8 12,278 12,065 213 7 11,602 11,225 378

1942 20 10,825 10,136 688 6 1,612 1,320 292 14 9,213 8,816 396

1943 5 7,172 7,048 123 4 5,500 5,376 123 1 1,672 1,672

1944 2 1,503 1,462 40 1 404 363 40 1 1,099 1,099

1945 1 1,768 1,768 1 1,768 1,768

1946 1 265 265 1 265 • 265

1947. 5 1,724 1,666 1 58 5 1,724 1,666 1 58

1948 3 2,990 2,349 641 3 2,990 2,349 641

1949 4 2,552 2,183 369 4 2,552 2,183 369

1950. 4 3,986 2,601 1,385 4 3,986 2,601 1,385

1951 2 1,885 1,885 2 1,885 1,885

1952 3 1,369 577 792 3 1,369 577 792

1953. 2 5,017 5,017 2 5,017 5,017

1954. 2 913 654 258 2 913 654 258

1955. 5 6,784 6,554 230 4 4,438 4,208 230 1 2,346 2,346

1956. 2 3,458 3,245 213 1 2,795 2,582 213 1 663 663

1957.. 1 1,031 1,031 1 1,031 1,031

1958. 4 3,026 2,998 28 3 2,796 2,768 28 1 230 230

1959. 3 1,835 1,738 97 3 1,835 1,738 97

1960. 1 4,765 4,765 1 4,765 4,765

1961. 5 6,201 4,699 1,502 5 6,201 4,699 1,502

1963. 2 19,230 18,792 438 2 19,230 18,792 438

1964 7 13,744 12,080 18 1,646 7 13,744 12,080 18 1,646

1965. 5 11,431 6,761 606 4,063 3 10,958 6,435 606 3,917 2 473 326 146

1966 7 8,732 8,238 9 487 1 735 735 6 7,997 7,503 9 487

1967 4 8,120 7,016 30 1,074 4 8,120 7,016 30 1,074

1968 3 5,586 5,575 1 11 3 5,586 5.575 1 11

1969. 9 37,619 37,463 52 105 4 7,599 7,444 50 105 5 30,020 30,019 2

1970 7 49.318 45,386 2,961 970 4 29,354 25,857 2,778 720 3 19,964 19,529 183 250

1971. 6 162,089 159,387 2,438 263 5 53,790 51,091 2,436 263 1 108,299 108,296 2

1972 1 16,274 10,630 1,645 4,000 1 16,274 10,630 1,645 4,000

1973. 6 410,768 192,154 68,382 150,232 3 16,802 16,771 31 3 393,966 175,383 68,351 150,232

1974. 4 2,257,6305 1,881,708 369,922 6,000 4 2,257,630 1,881,708 369,922 6,000

1975. 13 303,131 215,260 49,536 38,335 3 25,992 13,950 10,107 1,935 10 277,139 201,310 39.429 36,400

1976 16 549,376 349,860 159,891 39,625 3 11,630 6,886 1,709 3,035 13 537,746 342,974 158 182 36,590

1977 6 21,810 11,287 7,123 3,400 6 21,810 11,287 7,123 3,400

1978 7 494,903 297,828 189,270 7,805 1 818 518 300 6 494,085 297,828 188,752 7,505

11ncludes estimated losses in active cases. Not adjusted for interest or allowable return, which was collected in some cases in which the disbursement was fully recovered 

2|ncludes estimated additional disbursements in active cases.

3Excludes excess collections turned over to banks as additional purchase price at termination of liquidation 

4|\lo case in 1962 required disbursements.

5Includes collections and disbursements by liquidators in the field ($1.5 billion), previously excluded from this table.

Note: Due to rounding differences, components may not add to totals.

188 FEDERAL DEPOSIT INSURANCE CORPORATION

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Table 126. ANALYSIS OF DISBURSEMENTS, RECOVERIES, AND LOSSES IN DEPOSIT INSURANCE TRANSACTIONS,

JANUARY 1, 1934 — DECEMBER 31, 1978

(In thousands)

Type of disbursement Disbursements Recoveries! Losses

All disbursements— total..................................................................................................................................................................................... $5,074,0712 $4,724,5352 $349,536

Principal disbursements in deposit assumption and payoff cases— to tal.................................................................................. 4.678,866 4,391,568 287,298

Loans and assets purchased in liquidations (244 deposit assumption cases):

To December 31, 1978...................................................................................................................... 4,119,165 3,165,564 254,058

699,543

Notes purchased to facilitate deposit assumptions, mergers, or consolidations:

To December 31, 1978...................................................................................................................... 233,750 101,333 0

132,417

Deposits paid (304 deposit payoff cases):3

To December 31, 1978................................................................................................................ 325,090 272,345 33,240

Estimated additional............................................................................................... 861 20,366

Advances and expenses in deposit assumption and payoff cases— total1............... 213.785 192,387 21,398

Expenses in liquidating assets:

Advances to protect assets............................................................................................................................ 106,172 106,172 0

Liquidation expenses........................................................................................................................................................ 86,215 86,215 0

Insurance expenses^........................................................................................................................................................ 12,250 0 12,250

Field payoff and other insurance expenses in deposit payoff cases4........................................................... 9,148 0 9,148

Other disbursements— total........................................................................................................................ 181,420 140,580 40,840

Corporation purchases:

To facilitate termination of liquidations.-

To December 31, 1978.................................................... 9,936 5,282 4,111

Estimated additional.......................................................... 543

To purchase assets from operating insured banks:

To December 31, 1978....................................................... 34,574 9,171 20,700

Estimated additional............................................................. 4,703

Other assets purchased outright:

To December 31, 1978.................................................... 15,281 440 14,600

Estimated additional.......................................................... 241

Unallocated insurance expenses^....................................................... 1,429 0 1,429

Assistance to operating insuued banks:

To December 31, 19785................................................................................................................................................................................................ 120,200 83,200 0

Estimated additional..................................................................................................... .............................................................. 37,000

1 Excludes amounts returned to closed bank equity-holders and $92.2 million of interest and allowable return received by the FDIC.

2|ncludes collections and disbursements by liquidators in the field ($1.5 billion), previously excluded from this table.

3|ncludes estimated amounts for pending and unpaid claims in active cases.

^Not recoverable.

^Excludes $32 million originally disbursed as assistance to Farmers Bank of the State of Delaware and subsequently applied to assets purchased from operating insured banks.

BANKS CLOSED; FDIC INCOME, DISBURSEMENTS, AND LOSSES 189

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Table 127. INCOME AND EXPENSES, FEDERAL DEPOSIT INSURANCE CORPORATION, BY YEAR, FROM BEGINNING OF OPERATIONS,

SEPTEMBER 11, 1933, TO DECEMBER 31, 1978

(In millions)

Year

Income Expenses and losses

Net income added to 

Total deposit insurance fund4

Deposit insurance 

assessments 1

Investments and 

other sources2 Total

Deposit insurance losses 

and expenses

Interest on 

capital stock3

Administrative and 

operating expenses

Total............................................... $10,266.1 $5,022.3 $5,243.8 $1,470.1 $355.9 $80.6 $1,033.6 $1,796.0

1978..................................................... 952.1 367.0 585.1 148.95 45.6 103.3 803.2

1977 ..................................................... 837.8 319.4 518.4 113.6 24.3 89.3 724.2

1976..................................................... 764.9 296.5 468.4 212.35 31.9 180.45 552.6

1975..................................................... 689.3 278.9 410.4 97.5 29.8 67.7 591.8

1974..................................................... 668.1 302.0 366.1 159.2 100.0 59.2 508.9

1973..................................................... 561.0 246.0 315.0 108.2 53.8 54.4 452.8

1972..................................................... 467.0 188.5 278.5 59.7 10.1 49.6 407.3

1971..................................................... 415.3 175.8 239.5 60.3 13.4 46.9 355.0

1970..................................................... 382.7 159.3 223.4 46.0 3.8 42.2 336.7

1969..................................................... 335.8 144.0 191.8 34.5 1.0 33.5 301.3

1968..................................................... 295.0 132.4 162.6 29.1 0.1 29.0 265.9

1967..................................................... 263.0 120.7 142.3 27.3 2.9 24.4 235.7

1966..................................................... 241.0 111.7 129.3 19.9 0.1 19.8 221.1

1965..................................................... 214.6 102.2 112.4 22.9 5.2 17.7 191.7

1964..................................................... 197.1 93.0 104.1 18.4 2.9 15.5 178.7

1963..................................................... 181.9 84.2 97.7 15.1 0.7 14.4 166.8

1962..................................................... 161.1 76.5 84.6 13.8 0.1 13.7 147.3

1961..................................................... 147.3 73.4 73.9 14.8 1.6 13.2 132.5

1960..................................................... 144.6 79.6 65.0 12.5 0.1 12.4 132.1

1959..................................................... 136.5 78.6 57.9 12.1 0.2 11.9 124.4

1958..................................................... 126.8 73.8 53.0 11.6 11.6 115.2

1957..................................................... 117.3 69.1 48.2 9.7 0.1 9.6 107.6

1956..................................................... 111.9 68.2 43.7 9.4 0.3 9.1 102.5

1955..................................................... 105.7 66.1 39.6 9.0 0.3 8.7 96.7

1954..................................................... 99.7 62.4 37.3 7.8 0.1 7.7 91.9

1953..................................................... 94.2 60.2 34.0 7.3 0.1 7.2 86.9

1952..................................................... 88.6 57.3 31.3 7.8 0.8 7.0 80.8

1951..................................................... 83.5 54.3 29.2 6.6 6.6 76.9

1950..................................................... 84.8 54.2 30.6 7.8 1.4 6.4 77.0

1949..................................................... 151.1 122.7 28.4 6.4 0.3 6.1 144.7

1948..................................................... 145.6 119.3 26.3 7.0 0.7 0.6 5.7 138.6

1947..................................................... 157.5 114.4 43.1 9.9 0.1 4.8 5.0 147.6

1946..................................................... 130.7 107.0 23.7 10.0 0.1 5.8 4.1 120.7

1945..................................................... 121.0 93.7 27.3 9.4 0.1 5.8 3.5 111.6

1944..................................................... 99.3 80.9 18.4 9.3 0.1 5.8 3.4 90.0

1943..................................................... 86.6 70.0 16.6 9.8 0.2 5.8 3.8 76.8

1942..................................................... 69.1 56.5 12.6 10.1 0.5 5.8 38 59.0

1941..................................................... 62.0 51.4 10.6 10.1 0.6 5.8 3.7 51.9

1940..................................................... 55.9 46.2 9.7 12.9 3.5 5.8 3.6 43.0

1939..................................................... 51.2 40.7 10.5 16.4 7.2 5.8 3.4 34.8

1938..................................................... 477 38.3 9.4 11.3 2.5 5.8 3.0 36.4

1937..................................................... 48.2 38.8 9.4 12.2 3.7 5.8 2.7 36.0

1936..................................................... 43.8 35.6 8.2 10.9 2.6 5.8 2.5 32.9

1935..................................................... 20.8 11.5 9.3 11.3 2.8 5.8 2.7 9.5

1933-34 .......................................... 7.0 (4) 7.0 10.0 0.2 5.6 4.26 -3 .0

1 For the period from 1950 to 1978, inclusive, figures are net after deducting the portion of net assessment income credited to insured banks pursuant to provisions of the Federal Deposit Insurance Act of 1950, 

as amended. Assessment credits to insured banks for these years amount to $5,291 million.

^Includes $21 million of interest and allowable return received on funds advanced to receivership and deposit assumption cases and $73 million of interest on capital notes advanced to facilitate deposit assumption transactions and assistance to open banks.

3Paid in 1950 and 1951, but allocated among years to which it applies. Initial capital of $289 million was retired by payments to the U.S. Treasury in 1947 and 1948.

4Assessments collected from members of the temporary insurance funds which became insured under the permanent plan were credited to their accounts at the termination of the temporary funds and were 

applied toward payment of subsequent assessments becoming due under the permanent insurance fund, resulting in no income to the Corporation from assessments during the existence of the temporary 

insurance funds.

5|ncludes net loss on sales of U.S. Government securities of $105.6 million in 1976 and $3.6 million in 1978.

6Net after deducting the portion of expenses and losses charged to banks withdrawing from the temporary insurance funds on June 30, 1934.

190 FEDERAL DEPOSIT INSURANCE CORPORATION

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Table 128. PROTECTION OF DEPOSITORS OF FAILED BANKS REQUIRING 

DISBURSEMENTS BY THE FEDERAL DEPOSIT INSURANCE CORPORATION

1 9 3 4 -1 9 7 8

Item

All cases 

(548 banks)

Deposit payoff cases 

(304 banks)

Deposit assumption cases 

(244 banks)

Number or 

amount Percent

Number or 

amount Percent

Number or 

amount Percent

Number of depositors or accounts— total 1............................................................................................................................. 3,764,874 100.0 623,546 100.0 3,141,328 100.0

Full recovery received or available....................................................................................................................................... 3,757,114 99.8 615,786 98.8 3,141,328 100.0

From FDIC2........................................................................................................................................................................................................ 3,709,590 98.5 568,2623 91.1 3,141,328 100.0

From offset^..................................................................................................................................................................................................... 41,099 1.1 41,099 6.6

From security or preference5................................................................................................................................................................... 3,283 0.1 3,283 0.6

From asset liquidation^.................................................................................................................................... . . 3,142 0.1 3,142 0.5

Full recovery not received as of December 31, 1978 ................................................................................................. 7,760 0.2 7,760 1.2

Terminated case s.................................................................................................................................................................... 3,725 0.1 3,725 0.6

Active cases................................................................................................................................................................................................... 4^035 0.1 4,035 0.6

Amount of deposits (in thousands) — total............................................................................................................................. 5,897,279 100.0 469,533 100.0 5,427,746 100.0

Paid or made available.............................................................................................................................................................. 5,882,479 99.8 454,733 96.8 5,427,746 100.0

By FDIC2........................................................................................................................................................................................................... 5,754,400 97.6 326,6547 69.6 5,427,746 100.0

By offset8........................................................................................................................................................................................................ 23,755 0.4 23,755 5.0

By security or preference9........................................................................................................................................................................ 54,478 0.9 54,478 11.6

By asset liquidation!0 ................................................................................................................................................................ 49,846 0.9 49,846 10.6

Not paid as of December 31, 1978.................................................................................................................................... 14,800 0.2 14,800 3.2

Terminated case s.......................................................................................................................................................................................... 3,172 0.0 3,172 0.7

Active cases! 1 ................................................................................................................................................................................................ 11,628 0.2 11,628 2.5

1 Number of depositors in deposit payoff cases; number of accounts in deposit assumption cases.

2Through direct payment to depositors in deposit payoff cases; through assumption of deposits by other insured banks, facilitated by FDIC disbursements of $4,352,915 thousand, in deposit assumption cases. 

3lncludes 60,913 depositors, in terminated cases, who failed to claim their insured deposits (see note 7).

^Includes only depositors with claims offset in full; most of these would have been fully protected by insurance in the absence of offsets.

^Excludes depositors, paid in part by the FDIC; whose deposit balances were less than the insurance maximum.

6The insured portions of these depositor claims were paid by the Corporation.

^Includes $516 thousand unclaimed insured deposits in terminated cases (see note 3).

8|ncludes all amounts paid by offset.

9|ncludes all secured and preferred claims paid from asset liquidation; excludes secured and preferred claims paid by the Corporation.

10lncludes unclaimed deposits paid to authorized public custodians.

111ncludes $2,985 thousand representing deposits available, expected through offset, or expected from proceeds of liquidation.

BANKS CLOSED; FDIC INCOME, DISBURSEMENTS, AND LOSSES 191

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Table 129. INSURED DEPOSITS AND THE DEPOSIT INSURANCE FUND, 1 9 3 4 -1 9 7 8

Year (December 31)

Deposits in insured banks 

(in millions)

Percentage of 

deposits insured

Deposit insurance fund 

(in millions)

Ratio of deposit insurance fund to —

Total Insured! Total deposits Insured deposits

1978.......................................................... $1,145,835 $760,706 66.4% $8,796.0 .77% 1.16%

1977 .......................................................... 1,050,435 692,533 65.9 7,992.8 .76 1.15

1976.......................................................... 941,923 628,263 66.7 7,268.6 .77 1.16

1975 .......................................................... 875,985 569,101 65.0 6,716.0 .77 1.18

1974.......................................................... 833,277 520,309 62.5 6,124.2 .73 1.18

1973.......................................................... 766,509 465,600 60.7 5,615.3 .73 1.21

1972 .......................................................... 697,480 419,756 60.2 5,158.7 .74 1.23

1971.......................................................... 610,685 374,5684 61.34 4,739.9 .78 1.274

1970....................................................... 545,198 349,581 64.1 4,379.6 .80 1.25

1969.................................................... 495,858 313,085 63.1 4,051.1 .82 1.29

1968....................................................... 491,513 296,701 60.2 3,749.2 .76 1.26

1967 .......................................................... 448,709 261,149 58.2 3,485.5 .78 1.33

1966.......................................................... 401,096 234,150 58.4 3,252.0 .81 1.39

1965.......................................................... 377,400 209,690 55.6 3,036.3 .80 1.45

1964.......................................................... 348,981 191,787 55.0 2,844.7 .82 1.48

1963.......................................................... 313,3042 177,381 56.6 2,667.9 .85 1.50

1962.......................................................... 297,5483 170,2104 57.24 2,502.0 .84 1.474

1961.......................................................... 281,304 160,3094 57.04 2,353.8 .84 1.474

1960.................................................... 260,495 149,684 57.5 2,222.2 .85 1.48

1959...................................... 247,589 142,131 57.4 2,089.8 .84 1.47

1958....................................................... 242,445 137,698 56.8 1,965.4 .81 1.43

1957 ....................................................... 225,507 127,055 56.3 1,850.5 .82 1.46

1956.......................................................... 219,393 121,008 55.2 1,742.1 .79 1.44

1955.......................................................... 212,226 116,380 54.8 1,639.6 .77 1.41

1954.......................................................... 203,195 110,973 54.6 1,542.7 .76 1.39

1953.......................................................... 193,466 105,610 54.6 1,450.7 .75 1.37

1952 .......................................................... 188,142 101,842 54.1 1,363.5 .72 1.34

1951.......................................................... 178,540 96,713 54.2 1,282.2 .72 1.33

1950.................................................... 167,818 91,359 54.4 1,243.9 .74 1.36

1949....................................................... 156,786 76,589 48.8 1,203.9 .77 1.57

1948....................................................... 153,454 75,320 49.1 1,065.9 .69 1.42

1947 .......................................................... 154,096 76,254 49.5 1,006.1 .65 1.32

1946.......................................................... 148,458 73,759 49.7 1,058.5 .71 1.44

1945....................................................... 157,174 67,021 42.4 929.2 .59 1.39

1944....................................................... 134,662 56,398 419 804.3 .60 1.43

1943....................................................... 111,650 48,440 43.4 703.1 .63 1.45

1942....................................................... 89,869 32,837 36.5 616.9 .69 1.88

1941....................................................... 71,209 28,249 39.7 553.5 .78 1.96

1940.......................................................... 65,288 26,638 40.8 496.0 .76 1.86

1939.......................................................... 57,485 24,650 42.9 452.7 .79 1.84

1938....................................................... 50,791 23,121 45.5 420.5 .83 1.82

1937 .......................................................... 48,228 22,557 46.8 383.1 .79 1.70

1936.......................................................... 50,281 22,330 44.4 343.4 .68 1.54

1935.......................................................... 45,125 20,158 44.7 306.0 .68 1.52

1934.......................................................... 40,060 18,075 45.1 291.7 .73 1.61

1 Figures estimated by applying, to the deposits in the various types of account at the regular Call dates, the percentages insured as determined from special reports secured from insured banks. 

2December 20, 1963.

3December 28, 1962.

^Revised

192 FEDERAL DEPOSIT INSURANCE CORPORATION

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INDEX 195

Absorptions:

Of insured banks requiring disbursements by FDIC. See Banks in financial difficulties.

Of operating banks, 1978...................................................................................... 15-16

Of operating banks approved by FDIC, 1978 ...................................... 15-16, 47-102

Of operating banks denied by FDIC, 197 8.......................................... 15-16,103-109

Regulation o f...........................................................................................................15-16

Admission of banks to insurance: See also Applications from banks:

Applications for, 1978 .......................................................................................... 15-16

Number of banks admitted, by class of bank, 1978...................................... 122-123

Applications from banks................................................................................................. 15-16

Areas outside continental United States, banks and branches located in:

Number, December 31, 1978.......................................................................... 125, 133

Assessments for deposit insurance................................................................................ 26-27

Assets and liabilities of FDIC.............................................................................. 27-29, 32-33

Assets, liabilities and capital of banks. See also Deposits:

Commercial banks:

Foreign, of U.S. banks......................................................... 141-142, 155, 156-157

Grouped by insurance status, June 30, 1978 and December 31, 1978 . . 143-149

Sources of data....................................................................................................... 166

Insured commercial banks:

Amounts, December call dates, 1973-1978 ................................................ 152-154

Amounts, June 30, 1978 and December 31, 1978 by class of

bank.................................................................................................................143-149

Major categories, average, 1973-1978......................................................... 168-169

Percentage distribution, by size of bank, 1978............................................ 162-164

Percentages of items, by size of bank, 1978....................................................... 160

Insured mutual savings banks:

Amounts, December call dates, 1973-1978.............................................. 158-159

Major categories, average, 1973-1978 ..................................................... 177-178

Percentages of items, by size of bank, 1 9 7 8 ....................................................161

Methods of tabulating data.............................................................................. 141-142

Mutual savings banks:

Grouped by insurance status, June 30, 1978, and December 31,

1978............................................................................................................... 150-151

Sources of d a ta ......................................................................................................... 166

Assets, purchase of, by FDIC from banks in financial difficulties................. 8-9, 17, 19-21

Assumption of deposits of insured banks with financial aid of FDIC. See Banks in financial difficulties.

Attorney General of the United States, summary reports on absorptions............... 53-109

Audit of FDIC...................................................................................................................27,114

Automatic transfer of funds from savings to checking, survey and

regulation................................................................................................... xi, 11, 15-16, 115

Bad-debt reserves. See Valuation reserves.

Banco Credito y Ahorro Ponceno, Puerto Rico............................................................. 19, 21

Banco de Ahorro de Puerto Rico, Puerto R ico.....................................................................21

Bank control, changes, regulation o f...................................................................xi, 10, 13-14

Bank holding companies, supervision o f ................................................................................ 7

Bank supervision. See Supervision of banks; Examination of insured banks.

Banking offices, number of. See Number of banks and branches.

Banks in financial difficulties:

Insured banks requiring disbursements by FDIC:

Assets and liabilities o f............................................................................................184

Deposit size o f .........................................................................................................186

Deposits protected, 1934-1978.............................................. 17-20, 185-186, 191

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196 FEDERAL DEPOSIT INSURANCE CORPORATION

Disbursements by FDIC, 1934-1978................................................ 17-18, 185-189

Failures in 1978 ............................................................................................. xi, 19-21

Loans made and assets purchased by FDIC.................................. 17-23, 28, 31-32

Location by State, 1934-1978....................................................................... 185-187

Losses incurred by depositors................................................................. 18, 19, 191

Losses incurred by FDIC.......................................................................... 18, 188-189

Number of, 1934-1978 .................................................................................. 20, 183

Number of deposit accounts, 1934-1978 .......................................... 185-187, 191

Recoveries by FDIC on assets acquired, 1934-1978 ........................... 18, 188-189

Noninsured banks:

Number and deposits of commercial banks closed, 1934-1978 ....................... 183

Banks, number of. See Number of banks and branches.

Board of Directors of FDIC. See Federal Deposit Insurance Corporation.

Board of Governors of the Federal Reserve System. See Federal Reserve authorities. 

Branches:

Establishment approved by FDIC, 1978............................................................... 15-16

Number of. See Number of banks and branches.

Call reports. See Assets, liabilities, and capital of banks:

Reports from banks.

Capita! of banks. See Assets, liabilities, and capital of banks; Banks in financial

difficulties; Income of insured commercial banks;

Examination of insured banks.

Cease-and-desist proceedings............................................................................ 11-13, 37-44

Charge-offs by banks. See Income of insured commercial banks; Income of insured 

mutual savings banks; Valuation reserves.

Class of bank, banking data presented by:

Absorptions . .....................................................................................................122-123

Income of insured commercial banks, 1978................................................... 171-172

Insured banks requiring disbursements by FDIC, 1934-1978....................... 185-187

Number of banks and banking offices, 1978................................ 122-123, 126-134

Number of banks and assets....................................................................................135

Classification of banks.........................................................................................................121

Closed banks. See Banks in financial difficulties.

Commercial banks, See Assets, liabilities, and capital of banks; Deposits; Income of 

insured commercial banks; Number of banks and branches.

Community Reinvestment A c t..................................................... xi-xii, 16, 23-24, 116-117

Compliance examinations..................................................................................xii, 5, 7, 23-24

Comptroller of the Currency........................................................................ 3, 7, 14, 24, 114

Consolidations. See Absorptions.

Consumer complaints and inquiries, 1977 and 1978......................................................... 25

Credit, bank. See Assets, liabilities, and capital of banks.

Credit unions............................................................................................................................xi

Country Exposure Report............................................................................................... 10, 15

Demand deposits. See Assets, liabilities, and capital of banks; Deposits.

Deposit insurance, applications for..................................................................................15-16

Deposits. See also Assets, liabilities, and capital of banks:

Banks closed because of financial difficulties, 1934-1978 ... 17-19, 183, 185-187 

Commercial banks:

By insurance status and type of bank, and type of account, June 30,

1978................................................................................................................. 143-145

By insurance status and type of bank, and type of account, December 31,

1978............................................................................ .................................... 146-149

By State and asset size of bank.....................................................................136-140

Insured commercial banks:

Average demand and time deposits, 1973-1978 ........................................ 168-169

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INDEX 197

December call dates, 1973-1978................................................................... 152-1 54

Insured mutual savings banks:

Average demand and time deposits, 1973-1978 ........................................ 177-178

December call dates, 1973-1978................................................................... 158-1 59

Mutual savings banks, by insurance status, June 30, 1978, and December 31,

1978 ......... ....................................................................................................... 150-151

Deposits insured by FDIC:

Estimated insured deposits, December 31, 1934-1978 ........................................ 192

Maximum per depositor, changes in................................ x, xi, 10, 17, 113, 115-116

Deposits, number of insured commercial banks with given ratios of demand to total

deposits...................................................................................................................... 162-164

Directors of banks.......................................................................................................9, 13, 23

Directors of FDIC. See Federal Deposit Insurance Corporation.

Disbursements. See Banks in financial difficulties.

Divided Examination Program................................................................................................... 7

Dividends:

To depositors in insured mutual savings banks. See Income of insured mutual 

savings banks.

To stockholders of insured commercial banks. See Income of insured commercial banks.

Earnings of banks. See Income of insured commercial banks; Income of insured mutual 

savings banks.

Electronic data processing, examination o f.....................................................................xii, 10

Employees:

Conflict of interest.........................................................................................................4

FDIC.................................................................................................................... 3-4, 116

Insured commercial banks, number and compensation, 1973-1978........... 168-169

Insured mutual savings banks, number and compensation, 1973-1978. . . . 177-178

Equal Credit Opportunity A c t..................................................................................xi, 23, 116

Examination of insured banks:

By FDIC, 1978.......................................................................................................xii, 5-7

Regions and regional directors............................................................................ vi, 5, 7

Expenses of banks. See Income of insured commercial banks; Income of insured 

mutual savings banks.

Expenses of FDIC...................................................................................... 26-27, 30, 31, 190

Failures, See Banks in financial difficulties.

Fair Credit Billing Act.............................................................................................................. 23

Fair Credit Reporting A c t.......................................................................................................23

Fair Debt Collection Practices A c t..................................................................................23-24

Fair Housing Lending......................................................................................... xi, 23-24, 116

Federal Banking Agency Audit A c t.............................................................................. 27, 114

Federal Deposit Insurance Corporation:

Actions on applications......................................................................................... 15-16

Assessments on insured banks............................................................. 26, 29-32, 190

A udit..............................................................................................................................27

Banks examined by, and submitting reports to ................................................. 5-7, 16

Borrowing power.......................................................................................................... 26

Budget and Management Committee............................................................................ 3

Capital Stock.............................................................................................................. 190

Comparative Performance Report................................................................................17

Computerized analysis capabilities...................................................................... 1 7, 24

Consumer and civil rights protection..............................................xi-xii, 9, 19, 23-26

Coverage of deposit insurance........................................x, xi, 10, 17, 113, 115-116

Delegated authority, applications approved under....................................................... 5

Deposit insurance disbursements........................................ 17-21, 26, 184-189, 191

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198 FEDERAL DEPOSIT INSURANCE CORPORATION

Deposit insurance fund (surplus).................................................. 26, 29-30, 190, 192

Directors (members of the Board)............................................................................ v, 3

Disclosure...............................................................................................................4, 116

Divisions.................................................................................................................. iv, 3-4

Employees...........................................................................................................3-4, 116

Enforcement activities.............................................................................. 11-13, 37-44

Equal Employment Opportunity Program...................................................................3-4

Examination of banks................................................................................ 3„5-7, 1 7, 23

Financial statements, 1978.................................................................................... 28-32

Income and expenses, 1933-1978.......................................................................... 190

Insured banks requiring disbursements by. See Banks in financial difficulties

Integrated Monitoring System (IMS).......................................................................... 17

Liquidation activities..................................................................................17-19, 21-22

Loans to, and purchase of assets from, insured banks................... 17-23, 28, 31-32

Losses incurred, 1934-1978..................................................................... 18, 188-189

Methods of protecting depositors........................................................................ 17, 19

Office of Congressional Relations.................................................................................. 3

Office of Corporate A udits..........................................................................................27

Officials........................................................................................................................ v, 4

Organization...............................................................................................................iv, 3

Payments to insured depositors.................................................. 18-19, 185-189, 191

Petition for Representation of Bargaining Units........................................................... 4

Problem banks.......................................................................................................xii, 7-9

Receiver, FDIC a s ................................................................................................... 21-23

Recoveries............................................................................................. 21-23, 188-189

Regions............................................................................................................................vi

Regulation of bank securities....................................................................................116

Regulation of interest rates.....................................................................xi, 10-11, 115

Reports from banks............................................................................................... 16-17

Reports of changes in bank control.......................................................................13-14

Reserve for losses on assets acquired................................................... 28, 30, 32-33

Revision of rulemaking procedures.............................................................xi, 114-115

Rules and regulations......................................................... xi, 10-11, 23-24, 114-117

Sources and application of funds................................................................................ 31

Supervisory responsibility....................................................................................5-8, 16

Surveys during 1978.......................................................................xi-xii, 13-14, 16-17

Training programs............................................................................................. 9, 15, 26

Federal Home Loan Bank Board.......................................................................... xi, 9, 24, 114

Federal legislation, 1978 ........................................................................................xi, 113-114

Federal Reserve authorities........................................................................ 5, 7, 24, 113-114

Federal Reserve member banks. See Class of bank, banking data presented by.

Financial Institutions Regulatory and Interest Rate Control

Act of 1978 ......................................................................................xi, 10-14, 17, 113-114

First Bank of Macon County, Alabama.......................................................................... . 21

General Accounting Office.....................................................................................................27

Home Mortgage Disclosure Act of 1975 .............................................................xi-xii, 23-24

Housing and Community Development Amendments Act of 1978 .........................24, 114

Income of FDIC............................................................................................... 26, 30, 32, 190

Income of insured commercial banks:

Amounts of principal components:

Annually, 1973-1978 .................................................................................... 168-169

By class of bank, 1978 .................................................................................. 171-172

By size of bank, 1978 .................................................................................... 173-174

Methods of tabulating data............................................................................ 165-167

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Federal Reserve Bank of St. Louis
INDEX 199

Ratios of income items:

Annually, 1973-1978.............................................................................................. 170

By size of bank, 1978 .................................................................................... 1 73-1 74

Sources of d a ta ......................................................................................................... 166

Income of insured mutual savings banks:

Amounts of principal components, 1973-1978 ............................................ 177-178

Ratios of income and expense items, 1973-1978 ........................................ 179-180

Sources of d a ta .........................................................................................................166

Individual Retirement Accounts................................................xi, 10-11, 17, 113, 115-116

Insider transactions............................................................................................... xi, 10, 13-14

Insolvent banks. See Banks in financial difficulties.

Insured banks. See Assets, liabilities, and capital of banks; Banks in financial 

difficulties; Deposits: Income of insured commercial banks; Income of insured 

mutual savings banks; Number of banks and branches.

Insured commercial banks not members of the Federal Reserve System.

See Class of bank, banking data presented by.

Insured deposits. See Banks in financial difficulties; FDIC, coverage of deposit 

insurance.

Insured State banks members of the Federal Reserve System. See Class of bank, banking data presented by.

Interagency Supervisory Committee........................................................................................9

Interagency Supervision...........................................................xi, 7, 9-10, 13-14, 16-17, 24

Interest rates:

Maximum rates on deposits.......................................................................... xi, 11, 115

Paid on deposits............................................................................................... 170, 183

Payment on Individual Retirement Accounts..................................................... 11,115

Payment on Keogh Retirement Plans.................................................................11,115

Payment on Treasury Tax and Loan Accounts............................................xi, 11, 115

Regulations:

Automatic Transfer of funds from savings to checking...........................xi, 10, 115

6-Month money market certificates of deposit........................................xi, 11, 115

8-year certificates of deposit.....................................................................xi, 11, 115

International banking....................................................................................xi, 10, 14-15, 113

International Banking Act of 1978.......................................................................... xi, 14, 113

Investments. See Assets, liabilities, and capital of banks; Assets and liabilities of FDIC;

Banks in financial difficulties.

Keogh retirement plans.............................................................xi, 10-11, 17, 113, 115-116

Legislation relating to deposit insurance and banking, Federal,

enacted in 1978............................................................................................... xi, 113-114

Litigation:

Fines..............................................................................................................................16

Federal Deposit Insurance Corporation vs. The Bevans State Bank of Menard .... 16

First Empire Bank vs. Federal Deposit Insurance Corporation.................................. 20

Standby letters of cred it............................................................................................. 20

Loans. See Assets, liabilities, and capital of banks; Banks in financial difficulties.

Losses:

Of banks. See Income of insured commercial banks; Income of insured mutual 

savings banks.

Of FDIC.............................................................................. 18-19, 27, 30-32, 188-190

On loans, reserves for. See Valuation reserves.

Provision for, insured banks................................ 168-169, 170, 173-174, 175-180

Mergers. See Absorptions.

Money market certificates of deposit, survey and regulation................. xi, 11, 15-16, 115

Mutual savings banks. See Assets, liabilities, and capital of banks; Deposits; Income of 

insured banks; Number of banks and branches.

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Federal Reserve Bank of St. Louis
200 FEDERAL DEPOSIT INSURANCE CORPORATION

National banks. See Class of bank, banking data presented by.

National Credit Union Administration.............................................................................. 9,114

National Neighborhood Reinvestment Corporation..................................................... 24,114

New banks, 1978......................................................................................................... 122-125

Noninsured banks. See Absorptions; Admission of banks to insurance; Assets, 

liabilities, and capital of banks; Banks in financial difficulties; Classification of 

banks; Class of bank, banking data presented by; Deposits; Number of banks and

branches; Reports from banks.

North Point State Bank, Illinois............................................................................................. 21

Number of banks and branches:

Banks;

By insurance status and type of bank, June 30, 1978, and

December 31, 1978...................................................................... 145, 149, 151

By insurance status, type of bank, number of branches, and State,

December 3 1 ,1 9 7 8 ................................................................................126-133

By State and asset size of bank.....................................................................136-140

By supervisory status and asset size.....................................................................135

Changes during 1978 .................................................................................... 122-125

Branches:

By insurance status and type of bank, December 31, 1978....................... 122-123

By insurance status, type of bank, and State, December 31, 1978 ......... 126-133

Changes during 1978 .................................. ................................................ 122-125

Insured commercial banks:

December call dates, 1973-1978 ................................................................. 152-154

Distributed by capital ratios and distribution of assets and deposits,

December 31, 1978...................................................................................... 162-164

Insured mutual savings banks:

December call dates, 1973-1978 ................................................................. 158-159

Noninsured banks by State, December 31, 1978........................................ 126-133

Unit banks, by insurance status and State, December 31, 1978............... 126-133

Obligations of banks. See Assets, liabilities, and capital of banks.

Officials of FDIC .........................................................................................................................v

Operating banks. See Number of banks and branches.

Payments to depositors in closed insured banks. See Banks in financial difficulties. 

Personnel. See Employees.

Possessions, banks and branches located in. See Areas outside continental United

States, banks and branches located in.

Problem banks................................................................................................................ xii, 7-9

Protection of depositors. See Banks in financial difficulties; Deposit insurance 

coverage.

Real Estate Settlement Procedures Act of 1974................................................................. 23

Receivership, insured banks placed in. See Banks in financial difficulties.

Recoveries:

By banks on assets charged off. See Income of insured commercial banks;

Income of insured mutual savings banks.

By FDIC on disbursements. See Banks in financial difficulties.

Regions, FDIC............................................................................................................................vi

Remote Service Facility Procedures....................................................................................117

Removal proceedings.............................................................................................................13

Reports from banks................................................................................................................ 16

Reserves:

Of FDIC, for losses on assets acquired......................................................... 28, 32-33

Of insured banks for losses on assets. See Valuation reserves.

With Federal Reserve Banks. See Assets, liabilities, and capital of banks. 

Rules and regulations of the FDIC. See Federal Deposit Insurance Corporation.

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Federal Reserve Bank of St. Louis
INDEX 201

Salaries and wages of insured banks. See Income of insured commercial banks;

Income of insured mutual savings banks.

Securities. See Assets, liabilities, and capital of banks; Assets and liabilities of FDIC;

Banks in financial difficulties.

Securities and Exchange Commission........................................................................ 16, 116

Securities, bank, regulation o f ......................................................................................16, 116

Securities Exchange Act of 1934................................................................................ 16, 116

Size of bank, data for banks classified by amount of assets:

Assets and liabilities, percentages of, insured banks, 1978 ......................... 160-161

Banks requiring disbursements by FDIC, (deposit size) 1934-1978 ..................... 186

Income of insured commercial banks, 1978................................................... 173-174

Income ratios of insured commercial banks, 1978 ........................................ 175-176

Number, assets, and deposits of all banks...............................................................135

Number, assets, and deposits of all commercial banks, by State.................136-140

Number of employees of insured commercial banks, 1978 .................................. 174

Number of insured commercial banks, grouped by ratios of selected items

to assets and deposits, December 31, 1978 .......................................... 162-164

State, banking data classified by:

Changes in commercial banks and branches, 1978 ...................................... 124-125

Disbursements, deposits, and depositors in insured banks requiring

disbursements by FDIC, 1934-1978 ......................................................... 185-187

Number, assets, and deposits of commercial banks, by asset size of bank . 136-140 

Number of banks and branches, by class of bank and type of office,

December 31, 1978 ........... ..................................................................... 126-133

Percentage of banks insured, December 31, 1978........................................ 126-133

State banks. See Class of bank, banking data presented by.

Stockholders of banks, net profits available for. See Income of insured commercial 

banks.

Supervision of bank holding companies..................................................................................7

Supervision of banks by FDIC....................................................................................... 5, 9-10

Supervisory class, banks grouped by:

Assets and liabilities of, June 30, 1978, and December 31, 1978 ............. 143-149

Changes in number of, 1978 .......................................................................... 122-123

Number of banks and s iz e ........................................................................................135

Income of insured commercial banks...............................................................171-172

Number of banking offices, by State, December 31, 1978........................... 126-133

Suspension proceedings.........................................................................................................13

Taxes paid by insured banks. See Income of insured commercial banks; Income of 

insured mutual savings banks.

Terminations of insurance for unsafe and unsound practices.............................. 11-13, 37

The Drovers' National Bank of Chicago, Illinois...................................................................21

Treasury Tax and Loan Accounts.......................................................................... xi, 11, 115

Trust activities of banks, examination of.....................................................................xii, 9-10

Trust assets of insured commercial banks, survey o f ...........................................................9

Trust Department Report.......................................................................................................10

Truth in Lending A c t.............................................................................................................. 23

Uniform Interagency Supervision. See Interagency Supervision

Unit banks, by insurance status and State, December 31, 1978 ........................... 126-133

United States National B ank................................................................................................. 19

Valuation reserves. See also Assets, liabilities, and capital of banks:

Amounts held, June 30, 1978, and December 31, 1978 ............................ 143-149

Amounts held, December call dates, 1973,1978 .......................................... 152-154

Watkins Banking Company, Alabama....................................................................................21

Wilcox County Bank, Alabama............................................................................................. 21

Digitized for FRASER 

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Federal Reserve Bank of St. Louis
Digitized for FRASER 

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Federal Reserve Bank of St. Louis