ANNUAL REPORT OF THE

FEDERAL DEPOSIT INSURANCE CORPORATION

1970

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Federal Reserve Bank of St. Louis
LETTER OF T R A N S M I T T A L

FEDERAL DEPOSIT INSURANCE CORPORATION 

Washington, D. C., June 15, 1971

SIRS: Pursuant to the provisions of Section 17(a) of the Federal Deposit 

Insurance Act, the Federal Deposit Insurance Corporation is pleased to submit 

its report for the calendar year 1970.

Respectfully yours,

FRANK WILLE,

Chairman

THE PRESIDENT OF THE SENATE

THE SPEAKER OF THE HOUSE OF REPRESENTATIVES

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FEDERAL DEPOSIT INSURANCE CORPORATION

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Federal Reserve Bank of St. Louis
B O A R D O F D IR E C T O R S

Chairm an.............................................................FrankWille

D irecto r......................................................Irvine H. Sprague

Comptroller of the Currency ............................William B. Camp

O F F IC IA L S

Assistant to the Chairman ............................. Robert E. Barnett

Assistant to the Director .................................... Alan R. Miller

Assistant to the Director

(Comptroller of the Currency) ........................Albert J. Faulstich

Director, Division of Bank Supervision ............ John L. Flannery

Associate Director,

Division of Bank Supervision.......................Edward J. Roddy

General Counsel ........................................William E. Murane

Controller ............................................. Edward F. Phelps, Jr.

Director, Division of Research.......................... Paul M. Horvitz

Chief, Division of Liquidation ............................John J. Slocum

Secretary ......................................................... E. F. Downey

Auditor (Acting) ..........................................John D. Roderick

Senior Advisor to the Board .....................Raymond E. Hengren

Executive Assistant to the B o ard............ Timothy J. Reardon, Jr.

Assistant to the B o a rd ............................... William M. Moroney

June 15, 1971

FEDERAL DEPOSIT INSURANCE CORPORATION

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

REGIONAL DIRECTORS

Atlanta

Lewis C. Beasley

2 Peachtree St., N.W., Suite 3030 

Atlanta, Georgia 30303 

Boston

Mark J. Laverick 

2 Center Plaza, Room 810 

Boston, Massachusetts 02108 

Chicago

John J. Early

164 West Jackson Blvd., Rm. 1500 

Chicago, Illinois 60604

Columbus

William D. Allen 

37 West Broad Street, Suite 600 

Columbus, Ohio 43215 

Dallas

Quinton Thompson 

300 North Ervay Street,Suite 3300 

Dallas, Texas 75201 

Madison

Wallace A. Ryen 

110 E. Main Street, Room 715 

Madison, Wisconsin 53703 

Memphis

James W. Thompson

165 Madison Avenue, Suite 1010 

Memphis, Tennessee 38103

Minneapolis

Roger B. West

109 South 7th Street, Suite 710 

Minneapolis, Minnesota 55402 

New York

Claude C. Phillippe 

345 Park Avenue 

New York, New York 10022 

Omaha

Stanley Pugh

1700 Farnam Street, Suite 1200 

Omaha, Nebraska 68102 

Philadelphia

Charles E. Doster 

5 Penn Center Plaza, Suite 2901 

Philadelphia, Pennsylvania 19103 

Richmond

Albert E. Clark 

908 E. Main Street, Suite 435 

Richmond, Virginia 23219 

St. Louis

John Stathos

720 Olive Street, Suite 2909 

St. Louis, Missouri 63101 

San Francisco 

Walter W. Smith

44 Montgomery Street, Suite 3600 

San Francisco, California 94104

FEDERAL DEPOSIT INSURANCE CORPORATION

M ain O ffic e : 550 1 7th Street, N. W., W a sh in gto n , D. C. 20429

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Federal Reserve Bank of St. Louis
CO NTENTS

Banking offices—assets and liabilities— 1970 ........................ xi

Deposit insurance participation and coverage....................... xii

PART ONE

O PERA TIO N S OF THE CO RPO RATIO N

Disbursements to protect depositors ................................. 3

Supervisory activities...................................................... 4

Administration of the Corporation..................................... 14

Finances of the Corporation ............................................. 14

PART TWO

M ERG ER DECISIO N S OF THE CO RPO RATIO N

Bank absorptions approved by the Corporation................... 23

Bank absorptions denied by the Corporation....................... 26

PART TH REE

LEG ISLA T IO N A N D R EG U LA T IO N S

Federal legislation (summary)— 1970 ................................. 147

Rules and regulations of the Corporation (summary)— 1970.. . 164

PART FOUR

STA TISTICS OF BAN KS AN D DEPOSIT IN SU RAN CE

Number of banks and branches ....................................... 174

Assets and liabilities of banks........................................... 190

Income of insured banks .................................................212

Banks closed because of financial difficulties;

deposit insurance disbursements.....................................226

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Federal Reserve Bank of St. Louis
TA BLES

DISBURSEMENTS TO PROTECT DEPOSITORS:

1. Insured banks closed during 1970 requiring disbursements by the

Federal Deposit Insurance Corporation............................... 3

2. Protection of depositors of insured banks requiring disbursements by

the Federal Deposit Insurance Corporation, 1934-1970 ........... 6

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

transactions, January 1, 1934-December 31, 1970 ................. 7

SUPERVISORY ACTIVITIES:

4. Bank examination activities of the Federal Deposit Insurance Corporation in 1969 and 1970 ............................................. 7

5. Actions to terminate insured status of banks charged with unsafe or

unsound banking practices or violations of law or regulations, 

1936-1970................................................................. 8

6. Mergers, consolidations, acquisitions of assets and assumptions of

liabilities approved under section 18(c) of the Federal Deposit 

Insurance Act during 1970 ............................................. 11

7. Approvals under section 18(c) of the Federal Deposit Insurance Act

during 1970—banks grouped by size and in States according to 

status of branch banking................................................ 12

ADMINISTRATION OF THE CORPORATION:

8. Number of officers and employees of the Federal Deposit Insurance

Corporation, December 31, 1969 and 1970.......................... -jg

FINANCES OF THE CORPORATION:

9. Statement of financial condition, Federal Deposit Insurance Corporation, December 31, 1970 .......................................... 16

10. Statement of income and the deposit insurance fund, Federal Deposit Insurance Corporation, year ended December 31, 1970 .... 17

11. Determination and distribution of net assessment income, Federal

Deposit Insurance Corporation, year ended December 31, 1970 .. 18

12. Sources and application of funds, Federal Deposit Insurance Corporation, year ended December 31, 1970 ............................ 18

13. Income and expenses, Federal Deposit Insurance Corporation, by

year, from beginning of operations, September 11, 1933, to December 31, 1970, adjusted to December 31, 1970................... 19

14. Insured deposits and the deposit insurance fund, 1934-1970 ......... 20

NUMBER OF BANKS AND BRANCHES:

Explanatory note ...................................................................174

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

United States (States and other areas) during 1970 ................. 176

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

States (States and other areas) during 1970, by State .............. 178

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

areas), December 31, 1970

Grouped according to insurance status and class of hank, and

by State or area and type of office..................................... 180

104. Number and deposits of all commercial and mutual savings banks

(States and other areas), December 31, 1970 

Banks grouped by class and deposit size............................189

ASSETS AND LIABILITIES OF BANKS:

Explanatory note ...................................................................190

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

(States and other areas), June 30, 1970, and December 31, 1970 

Banks grouped by insurance status and class of bank............ 192

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

(States and other areas), December 31, 1970 

Banks grouped by insurance status and class of bank............ 196

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

(States and other areas), June 30, 1970, and December 31, 1970 

Banks grouped by insurance status.................................. 200

108. Assets and liabilities of insured commercial banks in the United

States (States and other areas), December call dates, 1961, 1966- 

1970 ........................................................................ 202

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

States (States and other areas), December call dates, 1961, 1966- 

1970......................................................................... 205

110. Percentages of assets and liabilities of insured commercial banks

operating throughout 1970 in the United States (States and other 

areas), December 31, 1970

Banks grouped by amount of deposits.............................. 207

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

operating throughout 1970 in the United States (States and other 

areas), December 31, 1970

Banks grouped by amoun t of deposits............................. 208

112. Distribution of insured commercial banks in the United States

(States and other areas), December 31, 1970 

Banks grouped according to amount of deposits and by ratios

of selected items to assets or deposits.................................209

INCOME OF INSURED BANKS:

Explanatory n o te ...................................................................212

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

other areas), 1962-1970.................................................. 214

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

(States and other areas), 1962-1970 .................................. 216

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

other areas), 1970

Banks grouped by class of bank..................................... 217

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116. Income of insured commercial banks operating throughout 1970 in

the United States (States and other areas)

Banks grouped by amount of deposits..............................219

117. Ratios of income of insured commercial banks operating throughout

1970 in the United States (States and other areas)

Banks grouped according to amount of deposits................. 221

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

and other areas), 1962-1970............................................. 223

119. Ratios of income of insured mutual savings banks in United States

(States and other areas), 1962-1970 .................................. 225

BANKS CLOSED BECAUSE OF FINANCIAL DIFFICULTIES;

DEPOSIT INSURANCE DISBURSEMENTS:

Explanatory n o te ...................................................................226

120. Number and deposits of banks closed because of financial difficulties, 1934-1970...................................................... 228

121. Insured banks requiring disbursements by the Federal Deposit Insurance Corporation during 1970 .......................................... 229

122. Depositors, deposits, and disbursements in insured banks requiring

disbursements by the Federal Deposit Insurance Corporation, 

1934-1970

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

deposit assumption, amount of deposits, and State................. 231

123. Recoveries and losses by the Federal Deposit Insurance Corporation

on principal disbursements for protection of depositors, 1934- 

1970......................................................................... 234

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Federal Reserve Bank of St. Louis
B A N K IN G O FF IC E S—A SSET S A N D L IA B IL IT IE S-1 9 7 0

A total of 13,705 commercial banks and 494 mutual savings

banks were operating in the United States at the end of 1970. There

were 185 new commercial banks chartered in 1970, the highest

number since 1965. This increase in charters was reflected in a rise

of 24 in the number of operating commercial banks, also the first

such increase since 1965. The number of mutual savings banks declined by three. The total of branches of commercial banks rose by

1,462, and that of mutual savings banks by 101, in 1970.

The number of insured commercial banks increased by 38, to

13,511 at the end of the year. The total of insured commercial

banks not members of the Federal Reserve System rose by 140,

while declines of 48 and 54, respectively, occurred in the number of

national banks and State member banks. Twelve noninsured commercial banks became insured with continuing nonmember status

during the year, and one noninsured bank converted to a national

charter. Details of changes in numbers of banks and branches during

1970 are shown in table 101 of this report.

Commercial banks experienced substantial gains in assets and deposits in 1970. The year was one in which financial market conditions changed rapidly from record-high interest rates and general

tightness at the beginning of the year to declining interest rates and

an easier market during the second half. Total assets of insured

commercial banks rose during 1970 by 8.6 percent, to $576 billion,

compared with a 6.1 percent gain in 1969. The 4 percent increase in

loans (excluding Federal funds sold) was substantially less than the

17.4 percent increase in holdings of securities. Almost one-half of

the additional funds channeled into securities were used to purchase

State and local government obligations.

Deposits of insured commercial banks rose during the year by

more than 10 percent, to $482 billion. Growth of time deposits

produced most of this gain, which occurred almost entirely in the

second half of the year, when lower rates of interest on competing

money market instruments improved the relative attractiveness of

both large-denomination and consumer certificates of deposit. Nondeposit liabilities decreased by more than 6 percent during the year.

Deposit inflows at mutual savings banks were favorably affected

by the general easing in financial market conditions during 1970,

particularly in the second half of the year. The deposit gain for the

year was 6.7 percent, compared with 4.0 percent in 1969. The

larger deposit inflows in 1970 were used in part to increase liquidity, as investments rose more than 13 percent, while cash assets

were increased, and borrowings were reduced. Loans rose by less

than 4 percent during the year.

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FEDERAL DEPOSIT INSURANCE CORPORATION

DEPOSIT IN SU R A N C E PA RTICIPA TIO N A N D C O V ER A G E

About 98.6 percent of all commercial banks and 66.6 percent of

all mutual savings banks in the United States were insured by the

Corporation on December 31, 1970. The noninsured commercial

banks consisted of 194 banks of deposit and nondeposit trust companies operating in 37 States. There were 165 noninsured mutual

savings banks, of which 164 were located in Massachusetts and

covered under that State's deposit insurance program.

A survey of deposits conducted by the Corporation on June 30,

1970, indicated that 99 percent of deposit accounts in insured

banks were fully protected by Federal deposit insurance. The percentage of fully protected accounts has remained high because of

the several increases in the maximum insurance available to each

depositor. Most recently, by amendment to the Federal Deposit

Insurance Act, effective on December 23, 1969, the insurance maximum was increased from $15,000 to $20,000. This maximum insurance coverage applies to the insurance afforded to each depositor

on accounts held in the same right and capacity in any insured

bank.

Because large accounts—commonly held by corporations, governments, and other large depositors—are only partially protected by

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Federal Reserve Bank of St. Louis
DEPOSIT INSURANCE PARTICIPATION AND COVERAGE

Federal deposit insurance, the percentage of insured deposits to

total deposits in insured banks is considerably lower than the proportion of fully protected accounts. For all insured banks, 63.6

percent of total deposits were insured on June 30, 1970 (chart A).

Reflecting the uneven distribution of large accounts, the percentage of insured to total deposits varies considerably among different

types of accounts and classes of banks. For example, 95.1 percent

of savings deposits were insured, while 55.5 percent of demand

deposits of individuals and businesses, and only 14.3 percent of

deposits of State and local governments, were insured on June 30,

1970. In banks with less than $10 million of deposits, 86.2 percent

of total deposits were insured, although in banks with over $100

million of deposits the insurance coverage was 55.7 percent.

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Federal Reserve Bank of St. Louis
OPERATIONS OF THE CORPORATION

PART ONE

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Federal Reserve Bank of St. Louis
3

D ISB U R SE M E N T S TO PROTECT D EPO SIT O RS

Banks failing in 1970. The Corporation disbursed a total of $46.4

million to protect depositors in seven failed banks during 1970

(table 1). In four of these cases, the banks were placed in liquidation with the Corporation appointed as receiver. In three cases, the

failing banks were absorbed by other insured operating banks with

the financial assistance of the Corporation.

Four of the seven failures involved brokered funds which tied in

to classified loans or advances. In three of these cases, the classified

tie-in loans or advances exhausted the banks' capital structures. One

closing involved a large defalcation, and the remaining failures were

the result of self-serving, unsafe, and unsound loan practices.

Deposits in insured banks failing during the year totaled $52.3

million. In the four deposit payoff cases, there were more than

20,100 depositors, of which 99.3 percent were fully protected by

deposit insurance. Where banks were absorbed in deposit assumption cases, all deposit liabilities were assumed by the absorbing

banks.

Since 1934, 625 commercial banks have failed (chart B), including 489 failures of insured banks requiring disbursements by the

Table 1. INSURED BANKS CLOSED DURING 1970 REQUIRING 

DISBURSEMENTS BY THE FEDERAL DEPOSIT INSURANCE CORPORATION 1

Case

number

Name and

location

Date of

closing

or deposit

assumption

Number

of depositors

Amount

of deposits

(in thousands)2

Date of first payment to depositors

or disbursement by

FDIC

Depositors receiving

full recovery

Deposits

paid

(in thousands)2

Total 31,167 $52,340 31,025 $49,277

Deposit payoff

289 State Bank of Prairie City

Prairie City, Iowa

February 22,1970 1,670 3,897 February 26,1970 1,643 3,720

290 The Peoples State Savings

Bank

Auburn, Michigan

April 18,1970 8,089 9,940 April 24,1970 8,057 8,429

291 Farmers Bank of Petersburg

Petersburg, Kentucky

June 25,1970 474 1,259 June 29,1970 462 1,236

292 Eatontown National Bank

Eatontown, New Jersey

August 7,1970 9,904 15,912 August 15,1970 9,833 14,560

Deposit assumption

199 First State Bank of Bonne

Terre

Bonne Terre, Missouri

August 24,1970 5,778 7,118 August 31,1970 5,778 7,118

200 City Bank of Philadelphia

Philadelphia, Pennsylvania

September 3,1970 1,940 8,839 September 11,1970 1,940 8,839

201 Berea Bank and Trust

Company

Berea, Kentucky

October 8,1970 3,312 5,375 October 15,1970 3,312 5,375

1 Figures adjusted to and as of December 31,1970.

2 Includes $26,239 thousand paid by FDIC claim agents in deposit payoff cases. All deposits were made available

in full through assuming banks, with FDIC assistance, in deposit assumption cases.

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4 FEDERAL DEPOSIT INSURANCE CORPORATION

Corporation. Depositors have recovered a very high percentage of

their total deposits in failed insured banks requiring FDIC assistance. From insurance payments, secured or preferred status, offsets,

and liquidating distributions, 99.7 percent of the depositors received full recovery (chart C). Through 1970, 98.2 percent of the

total deposits in these 489 banks had been paid or made available

to depositors.

The Corporation disbursed $523 million in protecting depositors

in the 489 cases. Losses, including estimated losses in active cases,

to the Corporation have amounted to slightly under 13 percent of

these disbursements.

Further details on the extent and method of deposit insurance

protection are shown in tables 2 and 3.

SU P E R V ISO R Y A C T IV IT IE S

Bank examinations. The Corporation has supervisory responsibilities primarily for insured State banks which are not members of

the Federal Reserve System. The Corporation regularly conducts

examinations of these banks to determine the current condition of

banks, to evaluate bank management, and to discover and correct

unsafe or unsound practices or violations of laws or regulations.

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SUPERVISORY ACTIVITIES 5

Examinations or investigations are made also in connection with

banks' applications for deposit insurance, for mergers, for establishing branches, and for other such activities requiring the prior approval of the Corporation. The number of separate examinations to

which banks are subject is reduced in approximately one-half of the

States by the Corporation's conducting its examinations jointly or

concurrently with those of the State authorities.

During 1970 the Corporation conducted approximately 17,700

field examinations and investigations, about 7.8 percent above the

number in 1969 (table 4). Regular examinations of main offices

accounted for 44 percent, examinations of departments and

branches for 39 percent, and other examinations and investigations

for 17 percent of the total activity during the year.

Citations contemplating termination of insurance. When an unsound or illegal banking practice is found to exist, and consultation

between the appropriate supervisory authorities and the bank

management involved fails to bring the desired corrective action,

the Corporation is empowered under section 8(a) of the Federal

Deposit Insurance Act to initiate proceedings which may lead to

termination of the bank's insured status. When a termination action

is started, the bank is formally notified, with a specified time

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

sent its case at an administrative hearing before insurance may be

terminated. If insurance must eventually be terminated, the Act

provides that insurance shall continue on insured deposits held in

such bank, less any subsequent withdrawals, for a period of two

years from the date of termination.

Since 1934 the majority of the 210 cases initiated under section

8(a) were settled when corrective action was taken or when the

bank was absorbed by another bank (table 5). Of the six cases which

were active at the end of 1969, only two were still in process at the

end of 1970. Situations had improved so that charges could be

dropped against two banks, a type of consent cease and desist

(written corrective program agreed to by the bank's board of directors) was obtained in one case, and a date was set to terminate

deposit insurance (only the thirteenth such action in the history of

the Corporation) in one situation. Of the two unresolved 1969

carryover cases at the end of 1970, one had moved to the hearing

stage. The eight cases pending at the end of 1970 consisted of two

Table 2. PROTECTION OF DEPOSITORS OF INSURED BANKS REQUIRING 

DISBURSEMENTS BY THE FEDERAL DEPOSIT INSURANCE CORPORATION,

1934-1970

Item

All cases

(489 banks)

Number

or

amount

Percent

Deposit

payoff cases

(288 banks)

Number

or

amount

Percent

Deposit

assumption cases

(201 banks)

Number

or

amount

Percent

N um ber of depositors or accounts— t o t a l1. ..

Full recovery received or a v a ila b le ...............

From FDIC 2........................................................

From o ffse t4........................................................

From security or preference 5..........................

From asset liquidation 6...................................

Full recovery not received as of Decem ber 31,

1970............................................................................

Terminated c a s e s................................................

Active ca se s........................................................

Am ount of deposits (in thousands)— to ta l___

Paid or made a v a ila b le .........................................

By FDIC 2.............................................................

By o ffse ts.............................................................

By security or preferen ce9...............................

By asset liquidation 10.......................................

Not paid as of Decem ber 3 1 ,1 97 0 ....................

Terminated ca ses................................................

Active c a s e s11.....................................................

1,703,984

1,699,461

1,653,319

40,230

3,038

2,874

4,523

3,368

1,155

$931,263

914,224

843,526

14,593

27,566

28,539

17,039

2,307

14,732

100.0

99.7

97.0

2.3

0.2 

0.2

0 .3

0.2

0.1

100.0

98.2

90.6

1.5

3.0

3.1

1.8

0.2

1.6

528,675

524,152

478,0103

40,230

3,038

2,874

4,523

3,368

1,155

$286,036

268,997

198,299 7

14,593

27,566

28,539

17,039

2,307

14,732

100.0

99.1

90.4

7.6

0.6

0 .5

0 .9

0.7

0.2

100.0

94.0

69.3

5.1

9.6

10.0

6.0

0.8

5.2

1.175.309

1.175.309

1.175.309

$645,227

645.227

645.227

100.0

100.0

100.0

100.0

100.0

100.0

1 Number of depositors in deposit payoff cases; number of accounts in deposit assumption cases.

2 Through direct payment to depositors in deposit payoff cases; through assumption of deposits by other insured

banks, facilitated by FDIC disbursements of $267,393 thousand, in deposit assumption cases.

3 Includes 59,414 depositors in terminated cases who failed to claim their insured deposits (see note 7).

4 Includes only depositors with claims offset in full; most of these would have been fully protected by insurance in

the absence of offsets.

5 Excludes depositors paid in part by FDIC whose deposit balances were less than the insurance maximum.

6 The insured portions of these depositor claims were paid by the Corporation.

7 Includes $224 thousand unclaimed insured deposits in terminated cases (see note 3).

8 Includes all amounts paid by offset.

9 Includes all secured and preferred claims paid from asset liquidation; excludes secured and preferred claims paid

by the Corporation.

10 Includes unclaimed deposits paid to authorized public custodians.

11 Includes $15,218 thousand representing deposits available, expected through offset or expected from proceeds

of liquidations.

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SUPERVISORY ACTIVITIES 7

Table 3. ANALYSIS OF DISBURSEMENTS, RECOVERIES, AND LOSSES 

IN DEPOSIT INSURANCE TRANSACTIONS,

JANUARY 1, 1934-DEC EMBER 31, 1970

(In thousands)

Type of disbursement Disbursements Recoveries 1 Losses

$523,314 $455,611 $67,703

465,375 402,556 62,819

267,393 225,778

14,643

137,214

24,921

26,972

197,224

758

35,847

55,685 50,613 5,072

33,921

16,692

1,398

3,674

33,921

16,692

(2) 1,398

3,674

2,254 2,442 (188)

1,773 2,427

15

(669)

481 (2) 481

A ll disbursem ents— to ta l.................................................................................

P rin cip al disbursem ents in deposit assum ption and payoff

cases— to ta l...............................................................................................

Assets acquired under agreements with insured banks (201 deposit

assumption cases):

To December 31, 1970..............................................................................

Estimated additional.................................................................................

Deposits paid (288 deposit payoff cases):

To December 3 1,1 9 7 0 .............................................................................

Estimated additional.................................................................................

Advances and expenses in deposit assumption and payoff casest o t a l...................................................................................................................

Expenses in liquidating assets:

Advances to protect assets.........................................................................

Liquidation expenses....................................................................................

Insurance expenses.......................................................................................

Field payoff and other insurance expenses in 288 deposit payoff cases.

O ther disbursem ents— to ta l...........................................................................

Assets purchased to facilitate termination of liquidations:

To December 3 1,1 97 0 ..................................................................................

Estimated additional....................................................................................

Unallocated insurance expenses...................................................................

1 Excludes amounts returned to closed bankequityholders and $ 9 .9

by FDIC.

2 Not recoverable.

million of interest and allowable return received

cases started before 1970 and six cases started in 1970. One case

started in 1970 was closed when the bank involved was absorbed by

another insured bank with the Corporation's financial assistance.

Applications for deposit insurance. Under provisions of section

4(b) of the Federal Deposit Insurance Act, all national banks and all

State banks which are members of the Federal Reserve System must

be insured by the Corporation. When a national bank charter is

Table 4. BANK EXAMINATION ACTIVITIES OF 

THE FEDERAL DEPOSIT INSURANCE CORPORATION 

IN 1969 AND 1970

Activity

Field exam inations and investigations— to ta l.....................................................................

Exam inations of main o ffices— t o ta l....................................................................................

Regular examinations of insured banks not members of Federal Reserve System

Reexaminations, or other than regular examinations.....................................................

Entrance examinations of operating noninsured banks...................................................

Special examinations...................................................................................................................

Exam inations of departm ents and b ran ch e s....................................................................

Examinations of trust departments........................................................................................

Examinations of branches..........................................................................................................

In v estig atio n s..................................................................................................................................

New bank investigations ..........................................................................................................

State banks members of Federal Reserve System.......................................................

Banks not members of Federal Reserve System...........................................................

New branch investigations........................................................................................................

Mergers and consolidations.......................................................................................................

Miscellaneous investigations....................................................................................................

Number

1970

17,688 16,412

8,078 7,637

7,807 7,416

215 175

43 36

13 10

6,953 6,328

1,441 1,279

5,512 5,049

2,657 2,447

225 282

13 22

212 260

636 629

190 246

1,606 1,290

1969

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8 FEDERAL DEPOSIT INSURANCE CORPORATION

Table 5. ACTIONS TO TERMINATE INSURED STATUS OF BANKS CHARGED 

WITH UNSAFE OR UNSOUND BANKING PRACTICES OR VIOLATIONS 

OF LAW OR REGULATIONS, 1936-1970

Disposition or status

Started

during 1970

Total banks against w hich action was ta k e n ....................................................................................

Cases closed...................................................................................................................................................

Corrections made.......................................................................................................................................

Banks absorbed or succeeded by other banks................................................................................

With financial aid of the Corporation..............................................................................................

Without financial aid of the Corporation........................................................................................

Banks suspended prior to setting date of termination of insured status by Corporation.

Insured status terminated, or date for such termination set by Corporation, for failure

to make corrections......................................................... - ........................................................

Banks suspended prior to or on date of termination of insured status.........................

Banks continued in operation 2....................................................................................................

Formal written corrective program imposed and 8(a) action term inated..........................

Cases not closed Decem ber 31, 1970.............................................................................................

Action deferred pending analysis of examination......................................................................

In hearing stage.....................................................................................................................................

Action deferred pursuant to written agreement.........................................................................

1 No action to terminate the insured status of any bank was taken before 1936. In 5 cases where initial action was

replaced by action based upon additional charges, only the latter action is included.

2 One of these suspended 4 months after its insured status was terminated.

issued, or when membership in the Federal Reserve System is

granted to a State-chartered bank, upon certification by the responsible agency the bank becomes insured by the Corporation. Nonmember banks apply directly to the Corporation for insured status.

Before admitting any bank to deposit insurance, the appropriate

Federal supervisory agency is required to consider specifically the

financial history and condition of the bank, the adequacy of its

capital structure, its future earnings prospects, the general character

of its management, the convenience and needs of the community,

and finally, the consistency of the bank's corporate powers with the

purposes of the Act.

During 1970, the Corporation approved 147 applications for deposit insurance, of which 139 were for new banks. Twenty-two new

banks were located in Texas, 18 in Florida, and 16 in Illinois; in all

of these States, branching is prohibited by State law.

Applications for branches. The Federal supervisory agencies consider the same six factors listed above when they pass upon applications by insured banks to establish branches. The Corporation

approved 527 applications for new branches in 1970, about 5 percent fewer than in 1969. In addition, 26 main offices were

converted into branches of insured nonmember banks as a result of

mergers during the year.

Mergers. Following substantial increases, during the 1950s, in the

number of mergers involving insured banks, Congress in 1960 expanded the authority of the Federal supervisory agencies with

respect to approval of such mergers. The Bank Merger Act, amending section 18(c) of the Federal Deposit Insurance Act, provides

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SUPERVISORY ACTIVITIES 9

that prior approval of one of the Federal agencies is necessary

before any insured bank may engage in a merger transaction.

Approval of the Corporation is required if the surviving bank is to

be an insured nonmember bank (outside the District of Columbia)

and in any merger of a noninsured institution into an insured bank.

The Act, as further amended in 1966, provides that the responsible agency, in passing upon any merger application, shall consider

specifically the effect of the transaction on competition in the areas,

financial and managerial resources of the banks, future prospects of

the existing and proposed institutions, and convenience and needs

of the community to be served. A merger which would result in

monopoly under the Sherman Antitrust Act may not be approved,

nor may' approval be given a merger which would substantially

lessen competition, unless the anticompetitive factor is clearly outweighed in the public interest by the needs and convenience of the

community to be served.

Since 1960 the Federal supervisory agencies have approved

merger cases involving the absorption of over 1,500 operating banks

(chart D). (The merger statistics used in this section do not include

corporate reorganizations of individual banking institutions, such as

banks in process of forming one-bank holding companies, which do

not have the effect of lessening the number of existing operating

banks.) Roughly 57 percent of these absorptions were approved by

the Comptroller of the Currency, 16 percent by the Board of

Governors of the Federal Reserve System, and the remaining 27

percent by the FDIC. Approximately 40 percent of the absorbed

banks were national banks, 14 percent were State member banks,

43 percent were State nonmember insured banks, and 3 percent

were noninsured institutions.

Statistics of merger cases approved by the Federal bank supervisory agencies during 1970 are shown in tables 6 and 7. Little change

occurred in the combined number of mergers approved by the three

agencies in 1970, as compared with the previous year. Small declines in numbers of approvals by the Comptroller of the Currency

and the Corporation were about offset by a rise in Federal Reserve

approvals. As in past years, virtually all merger approvals in 1970

involved banks located in States classified in table 7 as permitting

some form of branch banking.

Delegations of authority. In order to speed the processing of

applications, the Board of Directors adopted regulations, effective

December 30, 1970, which delegate the Board's authority with

respect to certain bank applications, under specified conditions, to

the Director of the Division of Bank Supervision and the Corporation's Regional Directors. A summary of these changes may be

found on pages 170-171 of this report.

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10 FEDERAL DEPOSIT INSURANCE CORPORATION

artD M E R G E R S A P P R O V E D BY

FEDERAL B A N K S U P E R V IS O R Y A G EN C IES, 1 9 6 0 -1 9 7 0

Number of Approvals Number of Approvals

'Period beginning May 13, 1960, to end of year.

Regulation of bank securities. Legislation enacted in 1964 extended the provisions of the Securities Exchange Act of 1934 to

cover securities traded in the over-the-counter market. Responsibility for administering the Act for insured banks was given to the

Federal bank regulatory agencies. Only those corporations now

having 500 or more shareholders and more than $1 million in assets

are covered.

The Corporation, during 1970, received registration statements

from 26 insured State nonmember banks coming under the provisions of the Act, bringing the year-end total to 209, compared

with 194 at the end of 1969. The 209 figure reflects the addition of

three registered banks which withdrew from the Federal Reserve

System and the termination of registration of 14 banks. Terminations resulted primarily from registered banks merging into other

operating banks or becoming subsidiaries of one-bank holding companies.

In addition to registration statements, the Corporation requires

banks, as well as individuals, to file substantial information for

public inspection. For example, registered banks regularly file

annual reports and documents used in soliciting shareholder

proxies; officers, directors, and major shareholders report acquisitions and dispositions of a registered bank's outstanding shares; and

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SUPERVISORY ACTIVITIES 11

Table 6. MERGERS, CONSOLIDATIONS, ACQUISITIONS OF ASSETS AND 

ASSUM PTIONS OF LIABILITIES APPROVED UNDER SECTION 18(c)

OF THE FEDERAL DEPOSIT INSURANCE ACT DURING 1970

Offices operated

Banks

Number of

banks

Resources

(in thousands)

Prior to

transaction

After

transaction

ALL CASES i

Banks involved.......................................................................................... 287 $55,429,998 3,649 3,655

Absorbing banks.................................................................................. 133 2 50,299,750 a 3,206 3 3,655 3

Absorbedbanks.................................................................................. 154 5,130,248 443

National.............................................................................................. 56 2,055,091 221

State member FRS.......................................................................... 16 874,871 55

Not member FRS............................................................................. 70 2,063,929 151

Noninsured institutions................................................................. 12 136,357 16

CASES W ITH RESULTING BANK

A N A T IO N A L BANK

Banks involved.......................................................................................... 150 34,966,923 2,527 2,541

Absorbing banks.................................................................................. 68 32,268,785 2,254 2,541

Absorbed banks.................................................................................... 82 2,698,138 273

National............................................................................................... 42 1,775,905 178

State member FRS.......................................................................... 8 400,066 25

Not member FRS............................................................................. 32 522,167 70

CASES W ITH RESULTING B ANK

A STATE BANK MEMBER OF THE

FEDERAL RESERVE SYSTEM

Banks involved.......................................................................................... 45 10,487,999 401 403

Absorbing banks.................................................................................. 21 9,738,197 332 403

Absorbed banks.................................................................................... 24 749,802 4 69 4

National............................................................................................... 5 123,655 19

State member FRS.......................................................................... 6 444,576 4 28 4

Not member FRS............................................................................. 13 181,571 22

CASES W ITH RESULTING B ANK

NOT A MEMBER OF THE

FEDERAL RESERVE SYSTEM

Banks involved.......................................................................................... 92 9,975,076 721 711

Absorbing banks................................................................................... 44 8,292,768 620 711

Absorbed banks.................................................................................... 48 5 1,682,308 101

National............................................................................................... 9 155,531 24

State member FRS.......................................................................... 2 30,229 2

Not member FRS............................................................................. 25 1,360,191 59

Noninsured institutions................................................................. 12 5 136,357 16

1 Omitted are corporate reorganizations and other absorptions involving banks which prior to the transaction did not

individually operate an office in the United States (see note 4).

2 The number of absorbing banks is smaller than the number of cases because a few banks participated in more than

one case.

3 Where an absorbing bank engaged in more than one transaction, the resources included are those of the bank before

the latest transaction, and the number of offices before the first and after the latest transaction.

4 In one case, approval was given for a newly organized bank to acquire four branches of an operating bank; these

branches and resources are included in this table.

6 Includes nine savings and loan associations.

persons who have acquired, or who are attempting to tender offer

to acquire, a sizeable part of a registered bank's outstanding shares

file required information.

During 1970, amendments were made to those sections of the

Act relating to acquisitions of, and tender offers for, sizeable

amounts of registered securities. Such amendments are discussed

under the heading "Federal Legislation" in Part 3 of this report.

Changes in bank ownership and loans secured by bank stock. I n

1964 Congress enacted Public Law 88-593, which requires each

insured bank to report any of its outstanding voting stock changes

which would result in an alteration in stock control. Such reports to

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12 FEDERAL DEPOSIT INSURANCE CORPORATION

Table 7. APPROVALS UNDER SECTION 18(c) OF THE FEDERAL 

DEPOSIT INSURANCE ACT DURING 1970 

BANKS GROUPED BY SIZE AND IN STATES 

ACCORDING TO STATUS OF BRANCH BANKING

Absorbing banks Absorbed banks

Number of banks by

size (resources in $m il)1

Number

of

banks

Number

of

branches

Resources

(in

thousands)

Number of banks by size

(resources in $mil)

-5 5-10 10-25 25-100

Over

100

T o ta l— U.S. 133 154 289 $5,130,248 34 32 48 28 12

- 5 ......................................... . . . 7 6 8 219,308 3 0 2 0 1

5 -1 0 ......................................... 5 5 3 53,314 3 0 1 1 0

10-2 5 ........................................... 11 11 6 59,298 4 5 2 0 0

2 5-1 0 0 ........................................... 33 36 35 481,415 10 9 12 5 0

100-500........................................... 54 66 163 3,226,289 12 12 22 11 9

500 or m ore........................................... 23 30 74 1,090,624 2 6 9 11 2

(A ) Statew ide

branchin g 2 51 62 102 1,114,015 16 10 26 9 1

- 5 ........................................... 1 1 2 10,400 0 0 1 0 0

5 -1 0 ........................................... 1 1 1 19,885 0 0 1 0 0

1 0-2 5 ........................................... 4 4 5 29,070 1 1 2 0 0

2 5-1 0 0 ........................................... 11 12 11 120,506 5 2 4 1 0

100-500........................................... 20 26 39 503,014 8 4 12 1 1

500 or m ore......................................... 14 18 44 431,140 2 3 6 7 0

(B ) Lim ited area

branchin g 2 77 87 187 3,906,618 15 22 21 18 11

- 5 ........................................... 5 4 6 208,359 2 0 1 0 1

5 -1 0 ........................................... 3 3 2 30,424 2 0 0 1 0

10-2 5 ........................................... 7 7 1 30,228 3 4 0 0 0

25-1 0 0 ........................................... 21 23 24 358,927 4 7 8 4 0

100-500........................................... 32 38 124 2,619,196 4 8 9 9 8

500 or m ore........................................... 9 12 30 659,484 0 3 3 4 2

(C ) U n it

b a n k in g 2 5 5 0 109,615 3 0 1 1 0

- 5 ........................................... 1 1 0 549 1 0 0 0 0

5 -1 0 ........................................... 1 1 0 3,005 1 0 0 0 0

25-1 0 0 ........................................... 1 1 0 1,982 1 0 0 0 0

100-500......................................... 2 2 0 104,079 0 0 1 1 0

1 See table 6, note 1.

2 For the purpose of analyzing branching activity, 19 States and the District of Columbia were included in group A,

16 in group B, and 15 in group C. It should be noted that for other purposes the classification of some States might differ

from that used here.

the appropriate Federal banking agency must include any change or

replacement of the bank's chief executive officer, or any director,

that occurs during a 12-month period following the change in

control. The law requires also that insured banks report any loans

secured by 25 percent or more of the outstanding voting stock of

an insured bank. The Corporation received over 400 such notices of

change in control involving insured nonmember banks during 1970.

Publications and statistical reports from banks. Every insured

bank reports its assets and liabilities each quarter, and income and

expenses each year, to the appropriate Federal bank supervisory

agency. The Corporation also obtains information on assets and

liabilities, but not income, from noninsured commercial and noninsured mutual savings banks. For many years, the Corporation has

had additional responsibilities, by agreement among the Federal

supervisory agencies, for assembling and publishing statistics for all

banks.

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SUPERVISORY ACTIVITIES 13

Tabulations of midyear and year-end reports of condition of

banks are published semiannually in Assets and LiabilitiesCommercial and Mutual Savings Banks. In 1970 the Corporation

continued a program, initiated in 1967, of providing individual

operating statistics to each reporting bank. These data permit comparison between a bank's own operations and those of similar-size

banks, nationally and grouped by States and sub-State areas. These

national, State, and area tables are published for year-end data in

Bank Operating Statistics. Trust Assets of Insured Commercial

Banks—1969 was published by the Corporation in conjunction with

the Board of Governors of the Federal Reserve System and the

Comptroller of the Currency. In preparing this publication in

cooperation with the other two agencies, the Corporation processed

nearly 3,300 reports from banks holding trust assets.

To keep currently informed on developments in the markets for

savings, the Corporation conducted four surveys— on January 31,

April 30, July 31, and October 31—of interest rates paid on savings

deposits by nonmember insured commercial and FDIC-insured

mutual savings banks. Survey results for all insured banks were

published by the Board of Governors. Tabulated data and other

information obtained from the surveys were sent to each reporting

bank.

The Corporation on June 30, 1970, conducted a survey of deposits in commercial banks and mutual savings banks to obtain

additional information on deposits and its contingent liability in

insuring deposits. As in 1968, the published data consist of separate

national summaries for all commercial banks and all mutual savings

banks, and for commercial banks in each of the fourteen FDIC

Regions. Pages xii-xiii of this report contain information on insured

deposits and the extent of depositor protection obtained from the

survey.

The Corporation sponsored independent research which resulted

in publication of The Role of the Financial Sector in the Economic

Development of Puerto Rico in 1970. This 152-page book is concerned with evaluating the position of various financial institutions

in aiding the development of the Puerto Rican economy.

During the past year, the Corporation encouraged research in

banking and related fields by awarding four fellowships in banking,

finance, and economics to Ph.D. candidates who were about to

begin writing their dissertations.

The Corporation also supported continuing research in various

areas of finance by staff as well as researchers at several colleges and

universities. These studies have been published in banking trade

publications, journals, and other forms.

Training programs for examiners. At various stages in their

careers, examiners undergo formal training conducted in the CorDigitized for FRASER 

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14 FEDERAL DEPOSIT INSURANCE CORPORATION

poration's modern and versatile training center located in a nearby

suburb of Washington, D.C. These training programs include three

divisions of the Bank Examination School (Assistant Examiners,

Examiners, and Trust) and a basic and intermediate version of the

course in examining a computerized bank. Well over 600 examiners

participated in these programs in 1970.

Thirty-one examiners are enrolled annually in the graduate

schools of banking which are conducted on major college campuses

throughout the country. Nearly 400 Corporation examiners have

graduated from these programs during the past 21 years.

A D M IN IST R A T IO N OF THE CO RPO RAT IO N

Structure and employees. The Corporation's Board of Directors

consists of three members appointed by the President of the United

States with the advice and consent of the Senate. The Chairman

and the Director are each appointed as members of the Board for

six-year terms. The Comptroller of the Currency serves ex officio as

a member of the Board.

Chairman Frank Wille took the oath of office as a member of the

Board on April 1, 1970, and was elected Chairman on the same day.

Continuing as members of the Board were Director Irvine H.

Sprague, whose term began on September 27, 1968, and Comptroller of the Currency William B. Camp, who became a Board

member on February 1, 1967.

Corporation officials, Regional Directors, and Regional offices

are listed on pages v and vi.

Employment at the Corporation rose during the year by 225

persons, to a total of 2,508 at the end of the year (table 8). As in

1969, the employment gain was attributable primarily to increased

personnel in the Division of Bank Supervision. Field personnel of

this Division represent about 71 percent of total Corporation employment and accounted for more than nine of every 10 additional

employees in 1970.

A total of 146 examiners left the Corporation during 1970, including 30 who entered military service and 13 who obtained employment in other Government agencies. The turnover rate of field

examiners was 10.0 percent, down significantly from the 15.8 percent experienced in 1969.

FIN A N C ES OF THE CO RPO RATIO N

Assets and liabilities. The assets of the Corporation totaled

$4,631 million on December 31, 1970 (table 9). Cash and U.S.

Government securities valued at amortized cost amounted to

$4,584 million. The subrogated claims of depositors against closed

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FINANCES OF THE CORPORATION 15

Table 8. NUMBER OF OFFICERS AND EMPLOYEES 

OF THE FEDERAL DEPOSIT INSURANCE CORPORATION, 

DECEMBER 31, 1969 AND 1970

Unit

Total

Washington

office

Regional and other

field offices

1970 1969 1970 1969 1970 1969

Total................................................... 2,508 1 2,283 i 621 636 1,887 1,647

Directors.............................................................................. 3 3 3 3 0 0

Executive Offices............................................................... 46 49 46 49 0 0

Legal Division..................................................................... 54 55 48 49 6 6

Division of Bank Supervision.'................................... 1,890 1,686 109 135 1,781 1,551

Division of Liquidation.................................................... 175 159 85 77 90 82

Division of Research........................................................ 176 165 176 165 0 0

Office of the Controller................................................... 164 166 154 158 10 8

1 Includes 129 nonpermanent employees serving on a short-term appointment or when actually employed basis in

1970 and 151 in 1969. 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.

insured banks and other assets acquired in receivership and deposit

assumption transactions, less reserve for losses, totaled $39 million.

Land and the main office building in Washington, D.C., less depreciation, were carried at about $7 million.

The Corporation's liabilities on December 31, 1970, totaled $251

million, of which $245 million were net assessment credits due

insured banks. About 86 percent of the assessment credits were to

become available on July 1, 1971, and the remainder were available

immediately. The deposit insurance fund, consisting of the difference between the Corporation's total assets and liabilities, amounted to $4,379 million on December 31, 1970.

For the protection of depositors, the Corporation has other resources available to it by virtue of its authority to borrow from the

Treasury of the United States. Section 14 of the Federal Deposit

Insurance Act authorizes and directs the Secretary of the Treasury

to lend to the Corporation such funds as in the judgment of the

Corporation's Board of Directors are required for insurance purposes, up to $3 billion. Thus far the Corporation has not had occasion to use this borrowing authority.

Income and expenses. The total income of the Corporation in

1970 was $382 million (table 10), of which about 42 percent was

provided by net deposit insurance assessments, and 58 percent by

income from investments (chart E). After deduction of administrative and operating expenses and provision for insurance losses, an

amount of $328 million was transferred to the deposit insurance

fund.

Since 1935 the assessment rate has been set by statute at 1/12 of

one percent. The amount of each bank's semiannual assessment is

equal to one half of the annual assessment rate multiplied by the

base of total deposits subject to assessment. In 1950, enactment of

the Federal Deposit Insurance Act carried a provision for an assessDigitized for FRASER 

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16 FEDERAL DEPOSIT INSURANCE CORPORATION

Table 9. STATEMENT OF FINANCIAL CONDITION, 

FEDERAL DEPOSIT INSURANCE CORPORATION, 

DECEMBER 31, 1970

ASSETS

C a s h ......................................................................................................................................................

U.S. G overnm ent obligations:

Securities at amortized cost (face value $4 ,538,878,000; cost $4 ,502,159,770) ___

Accrued interest receivable......................................................................................................

Assets acq uired in re ceiversh ip and deposit assum ption tra n s ac tio n s :1

Special assistance to insured banks......................................................................................

Subrogated claims of depositors against closed insured banks...................................

Net insured balances of depositors in closed insured banks, to be subrogated

when paid— see related liab ility .........................................................................................

Equity in assets acquired under purchase agreements with insured banks...........

Assets purchased outright.........................................................................................................

Less reserves for losses.............................................................................................................

M iscellaneous a ssets.....................................................................................................................

Land and o ffice buildin g, less depreciation on b u ild in g .............................................

F u rn itu re , fix tu re s and eq u ip m e n t.......................................................................................

T o tal a s s e ts ...........................................................................................................

LIA B ILITIES AND DEPOSIT INSURANCE FUND 2

Accounts payable and accrued lia b ilitie s .........................................................................

Earnest m oney, escrow funds and collections held for o th e rs ..............................

Accrued annual leave of em ployees....................................................................................

Due insured banks:

Net assessment income credits available July 1, 1971 (see table 11) ......................

Other assessment credits available im m ediately..............................................................

N e t insured balances of depositors in closed insured banks— see related

a s s e t................................................................................................................................................

T o ta l lia b ilitie s ....................................................................................................

Deposit insurance fund, n et incom e accum ulated since inception (see

tab le 10) ..........................................................................................................................................

T o tal lia b ilitie s and deposit insurance fu n d .........................................

$ 75,154,117

35,574,000

$4,517,649,929

57,454,193

$ 8,676,257

43,642,500

757,932

22,061,975

15,453

$ 210,021,036

35,040,832

8,927,310

,575,104,122

39,580,117

390,715

7,364,495

1

$4,631,366,760

2,835,374

1,043,519

2,098,259

245,061,868

757,932

251,796,952

,379,569,808

$

4 ,;

$4,631,366,760

1 Reported hereunder is the book value of assets in process of liquidation. An analysis of all assets acquired in

receivership and deposit assumption transactions, including those assets which have been liquidated, is furnished in

table 3.

2 Capital stock was retired by payments to the U.S. Treasury in 1947 and 1948.

NOTE: These statements do not include accountability for the assets and liabilities of the closed insured banks for

which the Corporation acts as receiver or liquidating agent.

ment credit, resulting in a substantially reduced rate of net assessments. The credit, based on a percentage of the assessments earned

by the Corporation during the year, after subtracting its operating

expenses and insurance losses, is applied against the assessments

paid during the ensuing year. Established at 60 percent in 1950, the

assessment credit was raised in 1961 to its present level of 66-2/3

percent.

The assessment credit of $210 million in 1970 was about $10.2

million less than in 1969. Because deposits in insured banks increased only slightly during the assessment base period, assessments

earned by the Corporation rose by less than $5 million, compared

with an increase of almost $30 million in the previous year. Provision for insurance losses was up appreciably in 1970, and other

expenses also were higher. Net assessments amounted to 1/28 of

one percent of total assessable deposits in 1970.

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FINANCES OF THE CORPORATION 17

Table 10. STATEMENT OF INCOME AND THE DEPOSIT INSURANCE FUND, 

FEDERAL DEPOSIT INSURANCE CORPORATION,

YEAR ENDED DECEMBER 31, 1970

Incom e:

Deposit insurance assessments:

Assessments earned in 1970................................................................................................

Less net assessment income credits to insured banks...............................................

Adjustments of assessments earned in prior years.....................................................

Net income from U.S. Government securities................................................................

Other income.............................................................................................................................

Total in co m e.........................................................................................................

Expenses and losses:

Administrative and operating expenses:

Salaries and wages..................................................................................................................

Civil Service retirement fund and FICA payments......................................................

Travel expenses........................................................................................................................

Office rentals, communications and other expenses....................................................

Provisions for insurance losses:

Applicable to banks assisted in 1970................................................................................

Adjustments applicable to banks assisted in prior years..........................................

Nonrecoverable insurance expenses incurred to protect depositors— n et................

Total expenses and losses..............................................................................

N e t addition to th e deposit insurance fund— 1970.........................................................

Deposit insurance fund, January 1, 1970...........................................................................

Deposit insurance fund, Decem ber 31, 1970, n e t incom e accum ulated since

in c e p tio n ........................................................................................................................................

$369,200,491

209,998,311

$ 26,949,768

1,866,209

7,342,060

6,070,180

$ 13,875,000

-2 ,7 3 6 ,8 9 8

$ 159,202,180

121,621

$ 159,323,801

222,693,216

647,444

$ 382,664,461

$ 42,228,217

11,138,102

836,706

$ 54,203,025

$ 328,461,436

4,051,108,372

$4,379,569,808

Chart E

S O U R C E S A N D U S E S OF IN C O M E 

FED ERA L D EPO SIT IN SU R A N C E CO RPO RATIO N

1970

Net

Assessment

Income

41.6%

SO U R C ES U SES

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18 FEDERAL DEPOSIT INSURANCE CORPORATION

The computation and allocation of net assessment income in

1970 are shown in table 11. Sources and application of the Corporation's funds in 1970 are shown in table 12.

Income and the deposit insurance fund, 1933-1970. The income

of the Corporation, after allowance for expenses and deposit insurance losses, is transferred to the deposit insurance fund. The additions to the fund from the Corporation's income, amounting to

over 89 percent of total income since 1934, constitute the entire

amount of the fund (table 13). A total of $289 million of the

Table 11. DETERMINATION AND DISTRIBUTION OF NET ASSESSM ENT INCOME, 

FEDERAL DEPOSIT INSURANCE CORPORATION,

YEAR ENDED DECEMBER 31, 1970

D eterm in atio n of net assessm ent incom e:

Total assessments which became due during the calendar year................................... $369,200,491

Less:

Administrative and operating expenses.............................................................................

Net additions to reserve to provide for insurance losses:

Provisions applicable to banks assisted in 1970.........................................................

Adjustments to provisions for banks assisted in prior years..................................

$ 13,675,000

-2 ,5 3 6 ,8 9 8

$ 42,228,217

11,138,102

Insurance expenses................................................................................................................... 836,706

Total deductions.................................................................................................... $ 54,203,025

N et assessm ent income fo r 1 970.............................................................................................. $314,997,466

Distribution of net assessm ent income, Decem ber 31, 1970:

Net assessment income for 1970:

33Vz% transferred to the deposit insurance tu n d ..........................................................

662A % credited to insured banks.........................................................................................

$104,999,155

209,998,311

T o ta l............................................................................................................................. $314,997,466

Allocation of net assessm ent income c redit among insured banks, Decem ber

31,1 97 0:

Percentage of

total assessments becoming

due in 1970

Credit for 1970.................................................................................................................................

Adjustments of credits for prior years....................................................................................

$209,998,311

22,724

56.87921

.00615

T o ta l............................................................................................................................. $210,021,035 56.88536

Table 12. SOURCES AND APPLICATION OF FUNDS, 

FEDERAL DEPOSIT INSURANCE CORPORATION, 

YEAR ENDED DECEMBER 31, 1970

Funds provided by:

Net deposit insurance assessments...........................................................................................................

Income from U.S. Government securities, less amortized net discounts......................................

Maturities and sales of U.S. Government securities............................................................................

Collections on assets acquired in receivership and deposit assumption transactions.............

Increase in assessment credits due insured banks..............................................................................

$159,323,801

215,759,580

430,703,730

19,771,795

4,172,329

Percent

19.2

26.0

51.9

2 .4

0 .5

To ta l funds p ro vid ed ............................................................................................................. $829,731,235 100.0

Funds applied to :

Administrative, operating, and insurance expenses, less miscellaneous credits.......................

Acquisition of assets in receivership and deposit assumption transactions................................

Purchase of U.S. Government securities..................................................................................................

Net changes in other assets and liab ilities.............................................................................................

$ 42,282,275

47,986,760

731,490,244

7,971,956

5.1

5 .8

88.1

1.0

Total funds ap p lie d ................................................................................................................ $829,731,235 100.0

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FINANCES OF THE CORPORATION 19

Corporation's capital, which had been paid in by the U.S. Treasury

and the Federal Reserve banks in 1933-1934, was retired through

payments by the Corporation in 1947 and 1948.

Table 13. INCOME AND EXPENSES, 

FEDERAL DEPOSIT INSURANCE CORPORATION, 

BY YEAR, FROM BEGINNING OF OPERATIONS, 

SEPTEMBER 11, 1933, TO DECEMBER 31, 1970 

ADJUSTED TO DECEMBER 31, 1970 

(In millions)

Income

Year

Total

Deposit

insurance

assessments 1

I nvestments

and

other

sources2

Expenses and losses

Total

Deposit

insurance

losses and

expenses

Interest

on capital

stock 3

Administrative

and

operating

expenses

Net

income

added to

deposit

insurance

fund 4

1933-70.

1 9 7 0 ....

1 9 6 9 ....

1968........

1 9 6 7 ....

1 9 6 6 ....

1 9 6 5 ....

1 9 6 4 ....

1963........

1962.........

1961.........

1960.........

1959.........

1958.........

1957.........

1956.........

1 9 5 5 ....

1954.........

1953.........

1952.........

1951.........

1950.........

1949.........

1948.........

1947.........

1946.........

1945.........

1944.........

1943.........

1942.........

1941.........

1940.........

1939.........

1938.........

1937.........

1936.........

1935.........

1 933-34..

$ 4,910.6

382.7

335.8

295.0

263.0

241.0

214.6

197.1

181.9

161.1

147.3

144.6

136.5

126.8

117.3

111.9

105.7

9 9.7

94.2

88.6

83.5

84.8

151.1

145.6

157.5

130.7

121.0

99.3

86.6

69.1

62.0

55.9

5 1.2

47.7

48.2

43.8

20.8

7 .0

$2,848.2

159.3

144.0

132.4

120.7

111.7

102.2

93.0

84.2

7 6.5

7 3.4

79.6

78.6

7 3.8

69.1

68.2

66.1

62.4

60.2

57.3

54.3

54.2

122.7

119.3

114.4

107.0

93.7

80.9

70.0

5 6.5

51.4

46.2

4 0.7

38.3

3 8.8

3 5.6

11.5

(4)

$2,0 62 .4

223.4

191.8

162.6

142.3

129.3

112.4

104.1

9 7.7

84.6

73.9

6 5.0

57.9

53.0

48.2

43.7

39.6

37.3

34.0

31.3

29.2

30.6

28.4

26.3

43.1

23.7

27.3

18.4

16.6

12.6

10.6

9 .7

10.5

9 .4

9 .4

8.2

9 .3

7 .0

$531.0

56.7

35.9

29.7

29.7

2 5.0

22.9

18.4

15.3

13.8

14.8

12.5

12.1

11.6

9 .7

9 .6

9 .0

7 .8

7 .3

7 .8

6.6

7 .8

6 .4

7 .0

9 .9

10.0

9 .4

9 .3

9 .8

10.1

10.1

12.9

16.4

11.3

12.2

10.9

11.3

10.0

$67.6

14.5

2 .4

0 .7

5.3

5.2

5.2

2 .9

0 .9

0.1

1.6

0.1

0.2

0.1

0 .5

0 .3

0.1

0.1

0.8

L 4

0 .3

0 .7

0.1

0.1

0.1

0.1

0.2

0 .5

0.6

3 .5

7 .2

2 .5

3 .7

2.6

2.8

0.2

$80.6

0.6

4 .8

5 .8

5 .8

5 .8

5 .8

5 .8

5 .8

5 .8

5 .8

5 .8

5 .8

5 .8

5 .8

5.6

$382.8

42.2

3 3.5

2 9.0

2 4.4

19.8

17.7

15.5

14.4

13.7

13.2

12.4

11.9

11.6

9 .6

9.1

8.7

7.7

7 .2

7 .0

6.6

6 .4

6.1

5.7

5 .0

4.1

3 .5

3 .4

3 .8

3 .8

3.7

3 .6

3 .4

3 .0

2 .7

2 .5

2.7

4 .2 5

$ 4,379.6

326.0

299.9

265.3

233.3

216.0

191.7

178.7

166.6

147.3

132.5

132.1

124.4

115.2

107.6

102.3

96.7

9 1.9

86.9

8 0.8

7 6.9

77.0

144.7

138.6

147.6

120.7

111.6

90.0

76.8

59.0

51.9

43.0

34.8

36.4

36.0

32.9

9 .5

- 3 . 0

1 For the period from 1950 to 1970, 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 $2,602 million.

2 Includes $9.9 million of interest and allowable return received on funds advanced to receivership and deposit

assumption cases by the Corporation.

3 Paid 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.

4 Assessments 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.

6 Net after deducting the portion of expenses and losses charged to banks withdrawing from the temporary insurance

funds on June 30,1934.

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20 FEDERAL DEPOSIT INSURANCE CORPORATION

Total deposits in insured banks rose by $49 billion in 1970, while

insured deposits rose by $36 billion (table 14). In 1969, total deposits in insured banks increased by only $4 billion, but insured

deposits rose by $16 billion as a result of an increase in the statutory maximum insurance per depositor, effective late in 1969. The

ratio of the deposit insurance fund both to total deposits in insured

banks and to insured deposits fell slightly in 1970.

Audit. Since 1945 the financial transactions of the Corporation

each year have been audited by the General Accounting Office.

Previously these audits were conducted by private accounting firms

engaged by the Corporation. A continuous internal audit is provided by the Office of the Auditor.

Table 14. INSURED DEPOSITS AND THE DEPOSIT INSURANCE FUND, 1934-1970

Year

(Dec. 31)

Deposits in

insured banks

(in millions)

Percent

of

deposits

insured

Deposit

insurance

fund

(in

millions)

Ratio of deposit

insurance fund to—

Total

deposits

Insured

Total Insured 1 deposits

1970.................................. $545,198 $349,581 64.1 % $4,379.6 • 80% 1 .2 5 %

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.................................. 313,304 2 177,381 56.6 2,6 67.9 .85 1.50

1962.................................. 297,548 3 170,210 4 57.2 4 2,502.0 .84 1.47 4

1961.................................. 281,304 160,309 4 57.0 4 2,353.8 .84 1.47 4

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 41.9 804.3 .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 45.1 333.0 .83 1.84

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.

2 December 20,1963.

3 December 28,1962.

4 Revised.

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MERGER DECISIONS OF THE CORPORATION

PART TWO

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BANK ABSORPTIONS APPROVED BY THE CORPORATION 23

BANKS INVOLVED IN ABSORPTIONS 

APPROVED BY THE FEDERAL DEPOSIT INSURANCE CORPORATION

IN 1970

State Town or City Bank Page

Arizona Phoenix

California

Delaware

Iowa

Kansas

Kentucky

Louisiana

Bell Gardens 

Beverly Hills

San Francisco

West Covina 

Georgetown

Seaford

Wilmington

Bloomfield 

Lone Tree

Asherville

Simpson

Berea

Fulton

Shelbyville

Simpsonville 

Water Valley

New Orleans

Great Western Bank &

Trust Company 58

Grecon, Inc. 58 

Pacesetter Financial

Corporation 48

United Bank of Arizona 48

Golden State Bank 82

Republic National Bank

and Trust Company 109

The Hongkong and Shanghai 

Banking Corporation of 

California 109

Citrus National Bank 82

Georgetown Building and

Loan Association 27

Seaford Building and Loan

Association 27

Wilmington Savings Fund

Society 27

LBTC, Inc. 90

Davis County Investment

Company 62

Davis County Savings Bank 62 

The Farmers and Merchants

Savings Bank 117

The Lone Tree Savings Bank 117

The Farmers State Bank of

Asherville, Kansas 34

The Simpson State Bank 

(change title to The 

Farmers State Bank of 

Simpson, Kansas) 34

Berea Bank and Trust

Company 96

Peoples Bank and Trust Co. 96

Fulton Bank 70 

Citizens Bank (change title

to Citizens Union Bank) 71

Bank of Simpsonville 71

Citizens Bank 70

The Intermediate Bank and 

Trust Company (change 

title to The International 

City Bank and Trust Company) 104 

The International City Bank

and Trust Company 104

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24 FEDERAL DEPOSIT INSURANCE CORPORATION

State Town or City Bank F’age

Maryland Baltimore National City Bank of Baltimore 63

Hyattsville Suburban Trust Company 63

Riverdale Citizens Bank and Trust Company

of Maryland 65

Waldorf The Waldorf Bank 65

Missouri Bonne Terre Commerce Bank of Bonne Terre 78

First State Bank of Bonne Terre 78

New Hampshire Dover Granite State Co-operative Bank 29

Littleton The Littleton Co-operative Bank 57

The Littleton Savings Bank 57

Manchester The Manchester Trust Company

of Manchester, New Hampshire

(change title to Manchester

Savings Bank and Trust

Company) 88

Manchester Savings Bank 88

Somersworth Somersworth-Rollinsford Savings

Bank (change title to Granite

State Savings Bank) 29

New Jersey Burlington Burlington Bank & Trust Company 49

Jersey City Hudson City Savings Bank 98

The Fifth Ward Savings Bank 98

Pennsauken The Pennsauken Bank (change

Township title to Fidelity Bank and Trust

Company of New Jersey) 49

New York Albany Albany Savings Bank 40,

Home Savings Bank of the City

of Albany 83

Glens Falls Glens Falls Savings and Loan

Association 40

Greenwich Greenwich Savings and Loan

Association 83

Johnstown Johnstown Savings and Loan

Association 105

Mechanicville Mechanicville Co-operative Savings

and Loan Association 119

Monroe Orange County Savings and

Loan Association 107

New York Brevoort Savings Bank 42

(Brooklyn)

Flatbush Savings Bank (change

title to The Greater New York

Savings Bank) 111

Metropolitan Savings Bank 42

The Greater New York Savings

Bank 111

New York Emigrant Savings Bank 35

(Manhattan)

New York City Savings and Loan 35

(Queens) Association

Salamanca The First National Bank of

Salamanca 60

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State Town or City Bank Page

North Carolina

Ohio

Oklahoma

Oregon

Pennsylvania

Schenectady

Warwick

Wellsville

Biscoe

Burlington

Cliffside

Durham

Fuquay-Varina

Lexington

Monroe

Salisbury

Smithfield

Statesville

Stokesdale

Stoneville

Wilson

Middletown

The Schenectady Savings Bank 119

The Warwick Savings Bank 107

First Trust Union Bank 60

Citizens State Bank 56

North State Bank 32

The Haynes Bank 121 

Central Carolina Bank & Trust

Company 85 

Bank of Fuquay (change title

to The Fidelity Bank) 56

industrial Bank of Lexington 73 

American Anson Bank (change 

title to American Bank &

Trust Company) 51

American Bank & Trust Company 51

Security Bank and Trust Company 73 

First-Citizens Bank &Trust Company 121

Bank of Statesville 113

Stokesdale Commercial Bank 85

Bank of Stoneville 32

Branch Banking & Trust Company 113

The Barnitz Bank 59 

The Barnitz State Bank of 

Middletown (change title to

The Barnitz Bank) 59

Ardmore Lincoln Bank & Trust Company 90

Milwaukie First State Bank of Oregon 91

Portland The Multnomah Bank 91

The Oregon Bank 44,

Rainier State Bank of Rainier 74

Reedsport Umpqua National Bank 44

Doylestown The Doylestown National Bank

and Trust Company 38

Frackville The First National Bank in

Frackville 79

Franklin The Exchange Bank and Trust

Company 123

Jenkintown Industrial Valley Bank and

Trust Company 115

Milton Milton Bank and Safe Deposit

Company 52

Norristown Continental Bank 38

Philadelphia Penn Central Employes Mutual

Savings Association 115

Reading American Bank and Trust Co. of Pa. 79

Titusville The Pennsylvania Bank and Trust

Company 123

Tunkhannock The Citizens National Bank of

Tunkhannock 101

Wilkes-Barre United Penn Bank 101

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26 FEDERAL DEPOSIT INSURANCE CORPORATION

State Town or City Bank Page

Williamsport Northern Central Bank and Trust

Company 52

South Carolina Columbia First-Citizens Bank and Trust

Company of South Carolina 76,

The Commercial Bank and Trust

Company of South Carolina 46

Dillon First-Citizens Bank and Trust

Company of South Carolina 46

Georgetown State Bank of South Carolina 128

Greenville Southern Bank and Trust Company 68

Spartanburg National Bank of Commerce of

Spartanburg 76

York State Bank 68

Tennessee Nashville Capital City Bank of Nashville,

Tennessee 93

The Nashville Bank and Trust Co.

(change title to Nashville City

Bank and Trust Co.) 93

Virginia Galax The Bank of Galax (change title

to The Merchants and Farmers

Bank of Galax) 97

The Merchants and Farmers

Bank of Galax 97

Newport News Bank of Hampton Roads 87

The Coastal Bank (change title

to Bank of Hampton Roads) 87

Washington Bellevue Bank of the West 31

Prosser Bank of Prosser 54

Redmond Redmond State Bank 31

Yakima Bank of Yakima 54

Wisconsin Embarrass Embarrass State Bank 126

Greenleaf State Bank of Greenleaf (change title

to Green leaf-Way side Bank) 103

Shawano Citizens State Bank 126

Wayside Wayside State Bank 103

BANKS INVOLVED IN ABSORPTIONS

DENIED BY THE FEDERAL DEPOSIT INSURANCE CORPORATION

IN 1970

Hawaii Honolulu Bank of Hawaii 137

Hawaiian Trust Company, Limited 137

Tennessee Knoxville Bank of Knoxville 130

Valley Fidelity Bank and Trust

Company 130

Washington Aberdeen Grays Harbor Savings and Loan

Association 141

Seattle Washington Mutual Savings Bank 141

Tacoma State Mutual Savings Bank 134

United Mutual Savings Bank 134

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BA N K A BSO RPTIO N S APPRO VED BY THE CO RPO RATIO N

Resources

(in

thousands

of dollars)

Banking Offices

In

operation

To be

operated

Wilmington Savings Fund Society

Wilmington, Delaware

to acquire the assets and assume the

liabilities o f

272,506 8 9

Seaford Building and Loan Association 

Seaford 

and

Georgetown Building and Loan 

Association

1,414 1

Georgetown 179 —

Summary report by Attorney General, November 4, 1969

Seaford:

Wilmington Savings' closest branch is over forty miles from Seaford's only 

office. Nevertheless, Wilmington Savings does have 1,500 deposits in the 

amount of $1,800,000 from persons who reside in Seaford's service area. Seaford, on the other hand, has no depositors in Wilmington Savings' service area. 

Wilmington Savings holds 139 mortgages with a total balance of $4,046,037 in 

Seaford's service area. Of that amount, however, $1,900,000 is represented by 

one loan. Seaford has no loans in the Wilmington Savings service area. Hence, 

this merger will eliminate some existing competition in Sussex County.

As of September 1967, only one other savings and loan association maintained an office in Sussex County, the Bridgeville Building and Loan Association, with total assets of $777,746 and savings accounts of $616,319.

Branch offices may be established by savings and loan associations or savings 

banks in Delaware with permission of the State Board of Bank Incorporation, 

upon a showing that public convenience will be served. Because of Wilmington 

Savings' size and history of expansion, it must be considered a likely entrant 

into Sussex County. However, in view of the distances involved, and the size 

and declining market position of Seaford, we do not believe that the proposed 

acquisition would have a substantially adverse effect upon potential competition.

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28 FEDERAL DEPOSIT INSURANCE CORPORATION

November 25, 1969

Georgetown Building:

The major impact of the proposed acquisition will be in the town of Georgetown. Georgetown has an approximate population of 1,765.

Georgetown Building has only 28 mortgage loans outstanding that comprise 

its total $138,000 in mortgage loans. Wilmington Savings has $1,800,000 in 

deposits and $4,046,037 in mortgage loans in the Georgetown area. Since 

Georgetown Building does not maintain an office, or a full time staff, it is not a 

substantial competitive factor. The proposed transaction is, therefore, unlikely 

to eliminate any substantial competition.

Delaware law would permit Wilmington Savings to establish a branch in the 

Georgetown area. However, in view of the nature of the community and the 

size and declining position of Georgetown Building, we conclude that the 

proposed transaction would be unlikely to have any substantially adverse effect 

on potential competition.

Basis for Corporation approval, January 8, 1970

Wilmington Savings Fund Society, Wilmington, Delaware ("Society"), an 

insured mutual savings bank with total deposits of $243 million, has applied, 

pursuant to Section 18(c) and other provisions of the Federal Deposit 

Insurance Act, for the Corporation's prior consent to acquire the assets and 

assume the liabilities of Seaford Building and Loan Association, Seaford, 

Delaware ("Seaford B&L"), which has total share accounts of $1,300,000, and 

Georgetown Building and Loan Association, Georgetown, Delaware ("Georgetown B&L"), which has total share accounts of $162,000 under the charter and 

title of Society, and for consent to the establishment of the sole office of 

Seaford B&L at 310 High Street, Seaford, Delaware, as a branch of Society. 

The business of Georgetown B&L will be transferred to the proposed Seaford 

branch. The two transactions would increase the number of Society's offices to 

nine. As of the effective date of the sales, the share accounts of the sellers, 

including serial, full paid, and instalment full paid, will be converted to deposit 

accounts of the buyer without loss of interest and/or earnings.

Competition. Society operates eight offices: five in the Wilmington area; 

one in Newark, 13 miles southwest of Wilmington; and two in Dover, the State 

capital, 46 miles south of Wilmington. The latter city, by far the largest city in 

Delaware with a population of about 96,000, is a manufacturing and science 

center and the main commercial and service center for the State, as well as 

parts of nearby New Jersey, Maryland, and Pennsylvania. Seaford, with a population of about 6,000, is 37 miles south of Dover, and its economy is dependent upon agriculture and a DuPont nylon plant employing some 4,000 

persons. Georgetown, the seat of Sussex County, in which Seaford also is 

located, is 35 miles southeast of Dover and 15 miles east of Seaford. Its 

economy depends largely on agriculture.

The acquisitions would have no competitive effects in the areas presently 

served by offices of Society. Any competitive effects would occur in the 

Seaford-Georgetown area in Sussex County, some 80 miles south of 

Wilmington. Competition is provided in this area by eight offices of five commercial banks: three in Seaford, two each in Georgetown and Laurel, and one 

in Bridgeville. Including the share accounts of Seaford B&L and Georgetown 

B&L with the time deposits of the eight local banking offices, the two building

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and loan associations combined hold only 4.5 percent of the total. In recent 

years, both Seaford B&L and Georgetown B&L have withdrawn from competition for time deposits and mortgage loans and have been considering dissolution. The increased participation in these markets by the branch of Society 

would tend to increase competition in these markets.

The Board of Directors is of the opinion that the proposed acquisitions 

would not substantially lessen competition, tend to create a monopoly, or in 

any other manner be in restraint of trade.

Financial and Managerial Resources; Future Prospects. These factors are 

resolved in favor of the proposals.

Convenience and Needs of the Community to Be Served. The two building 

and loan associations have experienced a declining volume in recent years as a 

result of service limitations and the inability of management to provide the 

means to sustain the associations as units capable of contributing to the communities in which they are located. Dissolution and liquidation appeared inevitable and would have occurred independent of the subject proposals. Although Society does not now have an office in the Seaford-Georgetown service 

area, it has considerable loan and deposit business from the area. The public 

would benefit from the expanded services of Society through its proposed 

Seaford branch; moreover, the present shareholders of the building and loan 

associations would receive the benefits of Federal deposit insurance.

Based on 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

T o be

operated

Somersworth-Rollinsford Savings Bank

Somersworth, New Hampshire 

(change title to Granite State 

Savings Bank)

34,659 3 4

to merge with

Granite State Co-operative Bank

Dover 2,097 1

Summary report by Attorney General, December 17, 1969 

The closest offices of the merging banks are about two miles apart and their 

main offices but four miles apart. Therefore, it would appear that this merger 

would eliminate direct competition between the merging banks.

Savings Bank presently controls 31 per cent of total savings deposits in the 

Somersworth-Dover area, which is defined as its service area. Co-Op Bank 

controls 1.8 per cent of these savings deposits. The resulting bank would have 

32.8 per cent of such deposits. The Strafford Savings Bank of Dover presently 

has 40.2 per cent of these deposits. Thus, Savings Bank would retain its position as the second largest bank in its service area and would slightly increase its 

share of that area's savings deposit market.

Since this merger would combine two direct competitors, one of which has

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30 FEDERAL DEPOSIT INSURANCE CORPORATION

a substantial share of the relevant local market, we believe that it would have 

an adverse effect on competition therein.

Basis for Corporation approval, January 14, 1970

Somersworth-Rol I insford Savings Bank, Somersworth, New Hampshire 

("Applicant"), an insured mutual savings bank with total deposits of $31.8 

million, 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 Granite State Co-operative Bank, Dover, New Hampshire ("Granite Cooperative") which has total deposits of $2 million, under the charter of Applicant and with the title "Granite State Savings Bank." The one office of Granite 

Co-operative would become a branch of Applicant, increasing the number of its 

offices to four.

Competition. Both Applicant and Granite Co-operative are thrift-type institutions with almost identical asset and liability structures. Applicant operates 

its main office and one branch in Somersworth (population 9,000) and one 

branch in Rollinsford (population 1,200). Granite Co-operative operates one 

office in Dover (population 23,000). The shortest distance between offices of 

the participating banks is 2.4 miles, and there is some overlapping of trade 

areas. Of Applicant's total deposits and total loans, 4.7 percent and 4.9 percent, respectively, are from the primary trade area of Granite Co-operative, but 

it does not have any business from the primary trade area of Applicant. Granite 

Co-operative has not been a vigorous competitor. Its operations have been 

limited to granting small residential loans and, for the most part, the receipt of 

relatively small deposits. This proposed transaction would not eliminate any 

significant amount of competition between the two institutions and the resulting bank should be a more effective competitor in Dover than Granite Cooperative is at present.

Due to the home office protection provisions of State law, Applicant cannot 

establish a de novo branch in Dover. Granite Co-operative has not established 

any de novo branches in 40 years, and it does not seem likely that it would in 

the future. Thus, there is no potential competition which would be eliminated 

by this proposal.

Applicant is the second largest savings institution in the relevant service 

area, and it would continue to hold that position after consummation of this 

proposal. Granite Co-Operative has 1.9 percent of the relevant market, and the 

resulting bank would have 31.9 percent. The largest share of the market is held 

by Strafford Savings Bank, Dover, New Hampshire, with 39.2 percent of the 

market. This proposal would not reduce the number of offices, and other 

alternatives for time and savings accounts and mortgage loans will remain in the 

area.

The Board of Directors is of the opinion that the proposed transaction 

would not substantially lessen competition, tend to create a monopoly, or in 

any other manner be in restraint of trade.

Financial Resources. The growth of Granite Co-operative has been somewhat retarded, but the resulting bank would have adequate financial resources.

Managerial Resources. This proposed transaction would eliminate a potential management succession problem at Granite Co-operative, and the resulting 

bank would have satisfactory managerial resources.

Future Prospects. The future prospects for Granite Co-operative as a part of

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the resulting bank are better than they are for the bank operating as an independent unit, and the future prospects for the resulting bank are favorable.

Convenience and Needs of the Community to Be Served. The resulting bank 

should continue to adequately serve the convenience and needs of the communities of Somersworth and Rollinsford and also provide improved services to 

the community of Dover.

Based on the foregoing information, the Board of Directors has concluded 

that approval of the application is warranted.

Resources

fin

Banking Offices

thousands

of dollars)

In

operation

To be

operated

Bank of the West

Bellevue, Washington

32,070 7 8

to merge with

Redmond State Bank

D VM A M M

2,494 1

Redmond

Summary report by Attorney General, October 22, 1969

The closest offices of the two banks are presently four miles apart. 

However, West has applications for two new offices one of which would 

be two miles and the other four miles, respectively, from Redmond State's 

office. In the case of these two new offices there would be no intervening 

competing bank office. However, four other banks do maintain offices in 

or near to Redmond. This merger will eliminate whatever competition presently exists between the banks as well as the clear potential for increased competition.

Redmond State is the smallest bank in the area. Its acquisition is not 

likely substantially to increase the level of concentration in the RedmondBellevue area.

Basis for Corporation approval, January 23, 1970

Bank of the West, Bellevue, Washington ("Applicant"), a nonmember insured bank with total resources of $32,069,600, 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 Redmond State Bank, 

Redmond, Washington ("Redmond Bank"), a nonmember insured bank 

with total resources of $2,493,500. The banks would merge under the 

charter and title of Applicant; and, as an incident to the merger, the sole 

office of Redmond Bank would be established as a branch of Applicant, 

increasing its number of offices to eight.

Competition. Bellevue (population 43,000 is located 10 miles east of downtown Seattle. Redmond (population 9,213) is located 15 miles northeast of 

Seattle and 7 miles from Bellevue. The closest offices of the participating banks 

are 5 miles apart. Both banks are relatively new institutions; Applicant opened 

in 1965, and Redmond Bank in 1967. They primarily serve separate, although 

contiguous, areas. Several offices of other banks intervene their locations, and,

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32 FEDERAL DEPOSIT INSURANCE CORPORATION

although there is some minor overlapping of service areas, competition between 

them is minimal.

Several offices of some of the largest banks headquartered in the State are 

located in each of the merging bank's service area. The largest commercial bank 

in the State (total deposits $1.7 billion) holds the predominant position in the 

resulting bank's service area, with 15 of the 55 offices and 25.8 percent of total 

area deposits. Two of the other commercial banks and one mutual savings 

bank each would have about twice the volume of local deposits held by the 

resulting bank. Among seven other commercial banks with fewer local deposits 

than the resulting bank, three have total deposits greatly in excess of those of 

the resulting bank. The merger would result in a bank with but 7.2 percent of 

total local deposits, an increase of only 0.5 percent for Applicant, and would 

have no adverse effect on competition.

The Board of Directors is of the opinion that the proposed merger would 

not substantially lessen competition, tend to create a monopoly, or in any 

other manner be in restraint of trade.

Financial and Managerial Resources; Future Prospects. These factors are 

favorable for the proposal. Future prospects for Redmond Bank, as a part of 

Applicant, would be improved under the more aggressive and progressive management of Applicant, which is responsive to the needs of the community.

Convenience and Needs of the Community to Be Served. The increased 

lending limit would benefit customers of both merging banks, which are 

located in economically expanding areas. The resulting bank will offer, to a 

greater extent, complete mortgage loan services demanded by the heavy residential building activity in both service areas. It is planned to extend the daily 

hours to the branch in Redmond for the convenience of the commuter population.

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

To be

operated

North State Bank

Burlington, North Carolina

11,598 5 6

to merge with

Bank of Stoneville 

Stoneville

5,647 1

Summary report by Attorney General, December 18, 1969 

The closest offices of the merging banks are approximately 47 miles apart. 

It would appear that there is little if any existing competition between them 

which would be eliminated by the merger.

Under North Carolina law, State Bank could be permitted to establish a 

branch in Stoneville. However, in view of State Bank's relatively limited reDigitized for FRASER 

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BANK ABSORPTIONS APPROVED BY THE CORPORATION 33

sources, and the existence of other larger and more likely potential entrants, 

we conclude that the proposed merger is unlikely to have any adverse effect on 

potential competition.

Basis for Corporation approval, January 30, 1970

North State Bank, Burlington, North Carolina ("North Bank"), an insured 

State nonmember bank with total deposits of $9,797,000, has applied, pursuant to Section 18(c) and other provisions of the Federal Deposit Insurance 

Act, for the Corporation's prior approval to merge with Bank of Stoneville, 

Stoneville, North Carolina ("Other Bank"), which has total deposits of 

$4,894,000. The banks would merge under the charter and title of North Bank; 

and, as an incident to the merger, the one office of Other Bank would become 

a branch of North Bank, increasing the number of its offices to six.

Competition. North Bank operates two offices in Burlington (population 

40,000) and three other offices in communities within a 5-mile radius of 

Burlington in Alamance County. The economy of the trade area served by 

North Bank is a mixture of commerce, industry, and agriculture. Other Bank 

operates its only office in Stoneville (population 1,100) in the northwestern 

corner of Rockingham County.

Stoneville is 47 miles northwest of Burlington, and there are several commercial banking offices in the intervening area. There are no common customers, and neither of the participants has any business from the trade area of 

the other. There is no direct competition between the participating banks; 

thus, none would be eliminated by this proposed transaction.

Legally, either of the participating banks could establish de novo branches 

in the other bank's trade area; but, in view of its relatively small size and past 

history of not branching de novo, it is not likely that Other Bank would branch 

de novo into North Bank's trade area. The town of Stoneville is quite small, 

and it is also unlikely that North Bank would seek to establish a de novo

branch at that location.

After consummation of this proposed transaction, the position of North 

Bank in relation to its competitor institutions would be virtually unchanged. In 

the Burlington area, North Bank is, and the resulting bank would be, in competition with four of the five largest banks in the State. Two of these much 

larger banks have total deposits of over $1 billion. Other Bank's competition 

includes two much larger institutions. One has total deposits of $132 million, 

and the other total deposits of $405 million. Consummation of this proposal 

would enable the resulting bank to compete more effectively with the much 

larger banks operating in the relevant trade area.

The Board of Directors is of the opinion that the merger would not substantially lessen competition, tend to create a monopoly, or in any other manner 

be in restraint of trade.

Financial and Managerial Resources. Financial and managerial resources are 

adequate with respect to both participating banks and are so projected for the 

resulting bank.

Future Prospects. North Bank has been a more aggressive competitor, and 

has grown faster, than Other Bank. The future prospects for the resulting bank 

are favorable.

Convenience and Needs of the Community to Be Served. This proposed 

merger would have no significant effect in the trade area served by North Bank,

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34 FEDERAL DEPOSIT INSURANCE CORPORATION

but it would improve the quantity and quality of banking services in the 

Stoneville area.

Based on 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

To be

operated

The Simpson State Bank

Simpson, Kansas

(change title to The Farmers State 

Bank of Simpson, Kansas)

515 1 1

to merge with

The Farmers State Bank of Asherville, 

Kansas

Asherville

549 1

Summary report by Attorney General, January 9, 1970

Farmers' office is located only three miles from Simpson Bank's office, and 

there are no intervening banks between them. The banks are or would be but 

for the existing common ownership, engaged in competition with each other. 

However, Farmers and Simpson Bank are the two smallest of the eight banks 

serving their market area, together having only 6.5 per cent of the area's total 

deposits.

In view of the small absolute and relative size of the merging banks, we 

conclude that the proposed merger is not likely to have a significantly adverse 

effect on competition.

Basis for Corporation approval, February 9,1970

The Simpson State Bank, Simpson, Kansas (“Applicant"), a nonmember 

insured bank with total resources of $515,200, has applied, pursuant to 

Section 18(c) of the Federal Deposit Insurance Act, for the Corporation's prior 

consent to merge with The Farmers State Bank of Asherville, Kansas, 

Asherville, Kansas ("Farmers"), a nonmember insured bank with total resources of $549,900, under the Applicant's charter and with the title "The 

Farmers State Bank of Simpson, Kansas." Branch banking is prohibited in 

Kansas; therefore, the sole office of Farmers will be discontinued.

Competition. Simpson and Asherville are rural agricultural communities located 3 miles apart in north-central Kansas, having populations of only about 

150 and 40, respectively. Wheat and livestock are the principal sources of 

income. There has been very little economic growth in the area in the past 10 

years; however, when the Solomon Valley Irrigation District and a nearby feed

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BANK ABSORPTIONS APPROVED BY THE CORPORATION 35

lot corporation are completed, agricultural production is expected to increase 

along with some stimulus to small commercial businesses.

There are no other banks in the immediate area of Simpson and Asherville, 

and the service areas of Applicant and Farmers overlap. Accordingly, there is 

competition between them which will be eliminated; however, this does not 

loom large in view of their relatively small size and the limited banking services 

they can offer as separate institutions. Much larger competing banks are located in Beloit, the county seat, located 10 miles northwest of Simpson, and 

three other communities located from 6 to 15 miles in various directions. 

Applicant and Farmers are by far the two smallest banks in the area, and the 

resulting bank will be by far smallest among six remaining banks—less than 

one-half the size of the next smallest bank, as measured in terms of IRC 

deposits. The resulting bank will have 4.2 percent of the area IPC deposits as 

compared with 32.9 percent for the largest bank and 9.6 percent for the next 

to the smallest bank.

The Board of Directors is of the opinion that the merger would not substantially lessen competition, tend to create a monopoly, or in any other manner 

be in restraint of trade.

Financial and Managerial Resources; Future Prospects. These factors are 

favorable for the proposal.

Convenience and Needs of the Community to Be Served. The merger will 

result in a bank better able to serve the financial needs of the AshervilleSimpson area, through greater resources, a larger capital base, and a lending 

limit more adequate to meet the growing credit needs of the surrounding 

agricultural community. Also, the larger bank will have sufficient resources and 

capital to provide a wider and more modern range of banking services, all of 

which will better serve the convenience and needs of the Simpson and 

Asherville communities.

Based on the foregoing, the Board of Directors has concluded that approval 

of the application is warranted.

Resources /in

Banking Offices

thousands

of dollars)

In

operation

T o be

operated

Emigrant Savings Bank

New York (Manhattan), New York

1,769,181 4 7

to merge with

City Savings and Loan Association 78,445 3

New York (Queens)

Summary report by Attorney General, November 26, 1969 

Since distances between offices of the two institutions are not great and in 

view of the large number of people who commute via mass transportation

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36 FEDERAL DEPOSIT INSURANCE CORPORATION

facilities into Manhattan from Queens, it would appear that the merging institutions compete to some extent for savings deposits. While the two institutions 

also compete in mortgage loans, it appears that neither institution has a significantly large share of the mortgage lending market in New York City.

According to the application and other available information, 17 savings 

banks, operating 92 offices in Manhattan, have total savings deposits of 

$14,285,374,000. Emigrant is the 3rd largest savings bank in New York City 

with approximately 12% of total savings deposits of the Manhattan savings 

banks.

Emigrant has approximately 10.6% of savings deposits of all savings banks 

and savings and loan associations in Manhattan and it has approximately 8.1% 

of savings deposits of all banks and savings and loan associations in both 

Manhattan and Queens.

As of September, 1967, 25 savings and loan associations in Queens, operating 53 offices, had approximately $1,473,974,600 in savings accounts. City 

Savings is the tenth largest savings and loan association in the County with 

about 4.4% of total Queens County savings and loan associations deposits.

City Savings has approximately 1.5% of all savings deposits of savings and 

loan associations and savings banks in Queens and it has approximately 0.3% of 

savings deposits of all savings and loan associations and savings banks in both 

Queens and Manhattan.

These figures indicate that while some direct competition will be eliminated 

by the proposed merger, the overall concentration in the two counties will not 

be greatly increased.

Ordinarily, Emigrant, as the 3rd largest savings bank in New York City, 

would have to be considered one of the leading potential entrants into the 

Queens market. However, New York banking law provides that a savings bank 

which has reached its statutory limit of four de novo branch offices can only 

enter other parts of New York City by acquisition of existing banks. While the 

application states that Emigrant has obtained permission to open its fifth 

branch, it does not state whether Emigrant has reached its statutory limit for 

de novo branches.

In any event, due to the large number of other potential entrants into the 

Queens area and the relatively small size of City Savings, we conclude that the 

proposed merger would not have a significantly adverse effect on potential 

competition.

Basis for Corporation approval, February 13, 1970

Emigrant Savings Bank, New York (Manhattan), New York ("Emigrant"), 

an insured mutual savings bank with total resources of $1,769,181,000, 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 City Savings 

and Loan Association, Jamaica (Queens), New York, New York ("City"), an 

insured savings and loan association with total resources of $78,445,000, under 

Emigrant's charter and title and, incident thereto, to establish three branches at 

the present locations of City.

Competition. The merging institutions operate in widely separated service 

areas. Emigrant's four offices are located in midtown and downtown 

Manhattan; City's three offices are located in the Borough of Queens. The two 

service areas are connected only by a number of bridges over and tunnels under

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the East River, which separates Manhattan from Brooklyn and Queens. The 

nearest offices of Emigrant and City are Tk miles apart.

Emigrant is the fourth largest savings bank by asset size among 48 mutual 

savings banks in New York City, based on June 30, 1969, statistics. It holds 5.4 

percent of the deposits and 5.5 percent of the mortgage loans. Following the 

merger, Emigrant still would rank fourth, and its proportionate holdings of 

deposits and loans would increase only fractionally to 5.5 percent and 5.7 

percent, respectively.

The proposed merger would not have any significant competitive effects in 

the Borough of Manhattan but would expand Emigrant's service area into the 

Borough of Queens. Queens is the largest of the five New York City boroughs, 

and it is the fastest growing. It covers an area of 118 square miles and has a 

residential population in excess of two million. Within its service area(s), City 

competes for deposits with 21 branches of 12 sizeable savings banks, five of 

which have main offices in Brooklyn and one with its main office in 

Manhattan. In addition, there are 17 branches of nine large Manhattan-based 

commercial banks and 10 offices of eight savings and loan associations. City 

has been unable to increase its dividend rate above 41/a percent; thus, has been 

unable to meet the higher interest and dividend rates paid by its larger competitors. The higher dividend rates of Emigrant at the three offices of City, in 

addition to other services it can provide the public, should tend to increase 

competition in City's service area. In view of the large number of alternative 

choices available to the public, for both deposit and loan relationships, and the 

small size of City, the reduction in alternatives would be competitively insignificant.

The Board of Directors is of the opinion that the proposed merger would 

not 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 larger and more 

competitive Emigrant, paying higher dividend rates and offering additional 

services to the public, should be able to achieve better results, depositwise, 

than has City, with benefits to both participants. The prospects for future 

expansion of deposit volume through the newly acquired offices of City would 

improve the financial resources and future prospects of Emigrant, which presently is burdened by low-yielding investments made years ago.

Convenience and Needs of the Community to Be Served. The resulting bank 

would provide the customers of City with all services which mutual savings 

banks are permitted by statute to offer. These include the following services 

which are not presently available at the three offices of City: student loans, 

low-cost savings banks life insurance and annuities, foreign remittances, selfemployed retirement plans, and computerized on-line banking facilities, 

making it possible for customers to transact business at any of the eight offices 

(includes one approved but unopened branch of Emigrant) in Manhattan and in 

Queens. Importantly, City, because of lack of funds, has been unable to meet 

the demand in its area for mortgage financing for small dwellings and has been 

unable to meet competitive dividend rates. Emigrant has a much greater 

capacity for meeting mortgage loan demands, would make available low-cost 

mortgage insurance, and would increase the 41A percent dividend rate presently 

paid by City.

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Based on 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

To be

operated

Continental Bank

Norristown, Pennsylvania

558,117 42 48

to merge with

The Doylestown National Bank 

and Trust Company

Doylestown

43,562 6

Summary report by Attorney General, November 28, 1969

Continental Bank has no offices in Bucks County. The closest offices of the 

merging banks are about 12 miles apart. There is apparently some amount of 

direct competition between the banks that will be eliminated by the proposed 

merger. According to the application, only a small percentage of loans and 

deposits originating in one bank's service area are held by the other bank. We 

note the reported existence of a small number of common depositors and loan 

customers.

Under Pennsylvania law, either bank could be permitted to establish de

novo branch offices in the service area of the other. Continental Bank, as one 

of the larger banks in the greater Philadelphia area, has the resources and 

incentive to open de novo offices in that part of Bucks County served by 

Doylestown National.

Seven commercial banks operate offices in the service area of Doylestown 

National:

Bucks County Deposits Total Deposits 

Philadelphia National Bank $53.6 million $1,700 million

Bucks County Bank and Trust 38.1 57

Doylestown National 35.7 37

Industrial Valley Bank & Trust 23.0 391

First Pennsylvania 16.5 2,000

Girard Trust Bank 15.9 1,500

Solebury National Bank 11.0 12

The Fidelity National Bank of Philadelphia (total deposits $1.2 billion) and 

the Cheltenham National Bank (total deposits $45 million) have also announced plans to establish de novo offices in the area.

Should the proposed merger be approved, Continental would be eliminated 

as a potential de novo entrant into the area of Bucks County served by 

Doylestown National and potential competition between the banks would be 

eliminated.

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Basis for Corporation approval, March 3, 1970

Continental Bank, Norristown, Pennsylvania ("Applicant"), an insured nonmember State bank with total deposits of $460,951,000, has applied, pursuant 

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

the Corporation's prior approval to merge with The Doylestown National Bank 

and Trust Company, Doylestown, Pennsylvania ("Other Bank"), which has 

total deposits of $38,083,000. The banks would merge under the charter and 

title of Applicant; and, as an incident to the merger, the six offices of Other 

Bank would become branches of Applicant, increasing the number of its offices 

to 48.

Competition. The service area of Applicant, of which the population is 

estimated at 2.3 million, is essentially Philadelphia and southeastern 

Pennsylvania. Of Applicant's 42 offices, 21 are in Philadelphia. The city of 

Philadelphia and the surrounding area are heavily industrialized with diversified 

activity, extensive commercial services, port facilities, and an expanding residential population. The economy in the communities in the surrounding 

counties (Montgomery, Chester, and Delaware) where Applicant presently has 

branches, for the most part, is geared to the economy of the greater Philadelphia area.

Other Bank operates six offices in central Bucks County, which is considered to be its trade area (estimated population 37,000), with some penetration 

into Montgomery County by its branch in Warminster, which is close to the 

county line. The nature of the economy in the trade area served by Other Bank 

is changing from agricultural to industrial, commercial, and residential.

Applicant has no offices in Bucks County, and the shortest distance between offices of the participating banks is the 10 miles separating Applicant's 

branch in Hatfield and Doylestown. There are offices of other commercial 

banks in the intervening area, and there appears to be no direct competition 

between the participating banks which would be eliminated by this proposal. 

Moreover, there appears to be little potential for competition. Other Bank 

would be unlikely to branch de novo into Applicant's trade area, in view of the 

much larger banks operating therein. The trade area served by Other Bank is 

well provided with existing and approved but unopened banking offices. Even 

if this area could support additional de novo branches, such an entry by Applicant would not be likely to lead to the development of significant competition 

between Applicant and Other Bank.

Applicant is the sixth largest commercial bank in its trade area as measured 

in terms of I PC deposits, and this proposal would not change that position. 

One commercial bank headquartered in Philadelphia has total IPC deposits of 

over $2 billion and three other Philadelphia-based banks have total IPC deposits of over $1 billion. In addition, one of the mutual savings banks in 

Philadelphia has total deposits of $1.8 billion. With respect to this market area, 

the merger would have no significant effect on competition.

Other Bank has been the only independent Doylestown bank since the 

recent merger of the other independent bank by a Jenkintown-based bank 

which now operates one branch in Doylestown. The first and second largest 

Philadelphia-based banks also operate one branch each in Doylestown. In addition, the third largest commercial bank and the largest mutual savings bank in 

Philadelphia have the necessary approvals to establish a de novo branch each in

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Doylestown. Thus, bank competition in central Bucks County is now an integral part of the overall competitive picture in the Delaware Valley. This proposal would replace a small bank, which faces formidable competition, with a 

larger institution possessing the resources and management to compete more 

effectively. Consummation of this proposed transaction should tend to increase 

competition in the area now served by Other Bank.

The Board of Directors is of the opinion that the merger would not substantially lessen competition, tend to create a monopoly, or in any other manner 

be in restraint of trade.

Financial and Managerial Resources; Future Prospects. Financial and managerial resources are satisfactory with respect to both participating banks and 

are so projected for the resulting bank. The earning record of Other Bank has 

not been as good as Applicant's, and the future prospects of Other Bank, as a 

part of the resulting bank, would be enhanced. Future prospects for the resulting bank are favorable.

Convenience and Needs of the Community to Be Served. It is not anticipated that this proposal would significantly benefit the trade area served by 

Applicant, but it should permit the resulting bank to provide an alternate 

source for additional services in the trade area served by Other Bank.

Based on the foregoing information, the Board of Directors has concluded 

that approval of the application is warranted.

Resources

/in

Banking Offices

lin

thousands

of dollars)

In

operation

T o be

operated

Albany Savings Bank 

Albany, New York

337,217 3 5

to merge with

Glens Falls Savings and Loan Association 

Glens Falls

14,086 2

Summary report by Attorney General, February 26, 1970 

The service area of Albany Bank includes primarily the SMSA noted above 

(Albany, Schenectady, Rensselaer and Saratoga Counties) and Washington 

County. Its secondary service area extends through broad areas of north central 

New York and includes Warren County where Glens Falls Savings' more limited 

service area is centered. The closest offices of the merging institutions are 47 

miles apart, with numerous savings banks and savings and loan associations, as 

well as commercial banks, intervening. Nonetheless, both draw not insubstantial deposit and loan accounts from the primary service areas of each other. 

Their merger will eliminate some existing competition between them.

New York, with exceptions not relevant here, does not permit savings banks 

to open de novo branches beyond the county in which their head offices are

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located. Albany Bank is, therefore, not a potential de novo entrant into the 

area primarily served by Glens Falls Savings, or other parts of Warren and 

Washington Counties. According to the application, Albany Bank conducts 

extensive business by mail in these areas, and has substantial incentive to locate 

an office therein. Merger with one of the two substantially smaller savings 

institutions in Washington County could provide this office in a manner which 

would not eliminate the most able competitor among the very limited number 

of local savings institutions.

Basis for Corporation approval, March 6, 1970

Albany Savings Bank, Albany, New York ("Albany Savings"), an insured 

mutual savings bank with total resources of $337,217,000, 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 Glens Falls Savings and 

Loan Association, Glens Falls, New York ("Savings and Loan"), an insured 

savings and loan association with total resources of $14,086,000, under Albany 

Saving's charter and title and, incident thereto, to establish two branches at the 

present locations of Savings and Loan.

Competition. The merging institutions are situated in widely separated geographical areas. Albany Savings operates three offices, two in the city of 

Albany and one approximately 5 miles northwest in the town of Colonie. All 

are located within the Albany-Schenectady-Troy SMSA, which, with Washington County, comprises the primary trade area of Albany Savings, with a 

total population of 739,000. The two offices of Savings and Loan are located 

in the city of Glens Falls and in the township of Queensbury. The nearest 

offices of Albany Savings and Savings and Loan are 51 miles apart. There is 

little competition between the two institutions for loans, and competition for 

deposits is limited to business attracted by Albany Savings' service, "Bank By 

Mail." Nor is there any significant potential for competition in view of legal 

restrictions on de novo branching and on the types of service the respective 

institutions can offer.

In the primary service area of the merging institutions, there are eight mutual savings banks, the largest being Albany Savings, 13 savings and loan associations, of which Savings and Loan is fifth largest, and 20 commercial banks 

with total time and savings deposits and share balances of $2,454,405,000 and 

loans of $2,446,373,000. Albany Savings holds 11.9 percent of the deposits 

and 11.3 percent of the loans. Following the merger, Albany Savings' proportionate holdings of deposits and loans would increase only fractionally to 12.4 

percent and 11.7 percent, respectively.

The proposed merger would not have any significant competitive effects 

within the primary service area of Albany Savings, but it should stimulate 

competition in the Glens Falls area. Savings and Loan has been unable to 

increase above 41A percent the dividend rate paid to the bulk of its depositors; 

thus, it has been unable to meet the higher interest and dividend rates paid by 

its competitors. The higher dividend rates of Albany Savings at the two offices 

of Savings and Loan, in addition to other services it can provide the public, 

should tend to increase competition in Savings and Loan's service area.

The Board of Directors is of the opinion that the proposed merger would 

not substantially lessen competition, tend to create a monopoly, or in any 

other manner be in restraint of trade.

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42 FEDERAL DEPOSIT INSURANCE CORPORATION

Financial and Managerial Resources; Future Prospects. Financial and managerial resources are, in general, satisfactory at both institutions and are so 

projected for the resulting bank. Albany Savings, paying higher dividend rates 

and offering additional services to the public, should be able to achieve better 

results, depositwise, than has Savings and Loan. Prospects for expanding deposit volume through acquisition of offices of Savings and Loan would improve 

the financial resources and future prospects of Albany Savings.

Convenience and Needs of the Community to Be Served. The customers of 

Savings and Loan would receive all services which mutual savings banks are 

permitted by statute to offer, including the following services which are not 

presently available at the two offices of Savings and Loan: student loans, 

low-cost savings banks life insurance and annuities, and computerized on-line 

banking facilities, making it possible for customers to transact business at any 

of the five offices of the resulting bank. Savings and Loan has been unable to 

meet the demand in its area for home mortgage financing and to meet competitive dividend rates. Albany Savings has a much greater mortgage lending capacity, would make available low-cost mortgage insurance, and would increase the 

dividend rate presently paid by Savings and Loan to 5 percent.

Based on 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

T o be

operated

Metropolitan Savings Bank

New York (Brooklyn), New York

245,011 4 9

to merge with

Brevoort Savings Bank

New York (Brooklyn)

298,629 5

Summary report by Attorney General, February 26, 1970 

Distances between offices of the two savings institutions are small since all 

save the newly opened branch of Brevoort Bank at Forest Hills are located in 

Brooklyn. The main office of Metropolitan Bank is less than a mile from the 

main office of Brevoort Bank, and one of its branch offices is about two miles 

from a branch office of Brevoort Bank. An analysis of sample accounts at the 

Metropolitan Bank determined that 79 per cent of its deposit accounts originated in the primary service area of Brevoort Bank and 11 per cent in the rest 

of New York City. A similar analysis at Brevoort Bank disclosed that 82 per 

cent of its deposit accounts originated in the primary service area of Metropolitan Bank and 7 per cent in the rest of New York City. Also, 5.9 per cent of 

the mortgage loans placed by Metropolitan Bank are located in Brooklyn, while

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BANK ABSORPTIONS APPROVED BY THE CORPORATION 43

7.4 per cent of such loans are located in the rest of New York City. This 

compares with 16.4 per cent of its mortgage loans placed by Brevoort Bank in 

Brooklyn, and 5.1 per cent of such loans placed in the rest of New York City. 

These figures and the close proximity of the banks indicate that the proposed 

merger would eliminate substantial direct competition.

Metropolitan Bank ranks sixteenth out of twenty savings banks headquartered in Kings County (Brooklyn) and Brevoort Bank ranks fourteenth. As 

of June 30, 1968, Metropolitan Bank held some 2.6 per cent of total savings 

deposits held by offices of county savings banks while Brevoort Bank held 

about 3.2 per cent of such deposits. On that date, the largest share of these 

deposits was held by the Dime Savings Bank of Brooklyn, 19 per cent. The 

four largest savings banks held about 41 per cent of such deposits. The participants' combined share of such total savings would have been 5.8 per cent, 

resulting in the fourth largest savings bank based in Kings County. Inclusion of 

savings deposits held by savings and loan associations and commercial banks 

would reduce this total to about 5.1 per cent.

We conclude that this merger would eliminate substantial direct competition 

between the participants and would increase concentration among savings 

banks based in Kings county. Under these circumstances, its effect on competition would be adverse.

Basis for Corporation approval, March 6, 1970

Metropolitan Savings Bank, New York (Brooklyn), New York ("Metropolitan"), an insured mutual savings bank with total deposits of $224.6 

million, has applied, pursuant to Section 18(c) and other provisions of the 

Federal Deposit Insurance Act, for the Corporation's prior approval to merqe 

with the Brevoort Savings Bank, New York (Brooklyn), New York ("Brevoort"), 

an insured mutual savings bank which has total deposits of $272.5 million. The 

banks would merge under the charter and title of the applicant; and, incident 

to the merger, the five offices of Brevoort would become branches of the 

resulting bank, which would have a total of nine banking offices.

Competition. Metropolitan's four offices and Brevoort's main office and 

three of its branches are located in the Borough of Brooklyn. Brevoort operates 

an additional branch in the Borough of Queens. Each of the merging banks' 

offices serve separate neighborhoods, and their service areas overlap only in the 

vicinity of their main and closest offices, which are 4,500 feet apart. The 

overlap includes a small area in an overcrowded and substandard section of 

Brooklyn. Numerous offices of other savings banks, as well as commercial 

banks and savings and loan associations, intervene the merging banks' offices, 

and there is no significant competition between them.

The effect of the proposed merger on the concentration of savings bank 

resources in Brooklyn would be nominal, and virtually nonexistent in the larger 

New York City area. The merging banks rank 14th and 16th in deposit size 

among the 17 mutual savings banks in Brooklyn. The resulting bank would be 

eighth largest and have but 4.9 percent of the deposits held by Brooklyn 

mutual savings banks. It would be 24th in size among the 46 savings banks in 

New York City and have 1.6 percent of the deposits. In addition to the other 

mutual savings banks, competition is afforded by 823 commercial bank offices 

holding $4.6 billion savings deposits and by 143 savings and loan association 

offices holding savings of $4.4 billion.

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

The Board of Directors is of the opinion that the proposed merger would 

not substantially lessen competition, tend to create a monopoly, or in any 

other manner be in restraint of trade.

Financial and Managerial Resources; Future Prospects; Convenience and

Needs of the Community to Be Served. The banking factors are satisfactory 

with respect to each merging bank and are favorable with respect to the resulting bank. The resulting bank would be in a generally sound condition, with 

increased depth and calibre of management and greater prospects for operating 

economies and improved service to the community.

The Board of Directors, for the reasons stated above, has concluded that 

approval of the bank's application is warranted.

Resources

(in

thousands

of dollars)

Banking Offices

In

operation

To be

operated

The Oregon Bank

Portland, Oregon

105,430 17 18

to acquire the assets and assume the

deposit liabilities o f

Umpqua National Bank 

Reedsport

13,500 1

Summary report by Attorney General, November 25, 1969 

The closest office of Oregon Bank in Eugene is about ninety miles from 

Umpqua Bank. Therefore, it does not appear that any significant amount of 

direct competition would be eliminated by the proposed merger.

Under Oregon law, Oregon Bank is barred from opening a de novo branch in 

Reedsport proper. However, Oregon Bank could open an office in suburban 

areas of Reedsport so that it could in fact become a direct competitor of 

Umpqua Bank. Presently, Umpqua Bank controls nearly 75% of commercial 

bank deposits in Reedsport and 28.1% in the area of western Douglas, Lane 

and Coos Counties which it defines as its service area. In both of these areas 

Umpqua Bank is the largest bank in terms of deposits. Oregon Bank is the 

fourth largest bank in Oregon and has shown a recent interest in becoming a 

state-wide banking organization. Thus, Oregon Bank is a likely potential entrant into the Reedsport area.

Commercial banking in the State of Oregon is dominated by two banks 

which between them hold around 90% of deposits in Oregon banks. Both of 

these banks have branches in the general vicinity of Reedsport, and are therefore more likely de novo entrants into Reedsport area than is Oregon Bank. 

Furthermore, Oregon Bank is less than one-sixth the size of the two dominant 

banks in the state. The third largest bank in the state is a branch of a California 

bank which has only one office in the state and has shown no signs of expanding its business by opening new offices. Hence, Oregon Bank is one of three

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BANK ABSORPTIONS APPROVED BY THE CORPORATION 45

likely entrants into the Reedsport area but it is substantially smaller than are 

the two more likely entrants.

Basis for Corporation approval, March 6, 1970

The Oregon Bank, Portland, Oregon ("Oregon Bank"), a nonmember insured bank with total resources of $105,430;000, has applied, pursuant to 

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

the Corporation's prior consent to acquire the assets of $13,500,000 and assume liability to pay deposits made in Umpqua National Bank, Reedsport, 

Oregon ("Umpqua"), and to establish the sole office of Umpqua as a branch.

Competition. Oregon Bank's 17 offices serve seven separate and distinct 

areas, the largest and most important of which is the Portland metropolitan 

area. Its closest office to Umpqua is its Eugene branch, located approximately 

90 miles to the northeast. There is no overlapping of the service areas and no 

competition between the two banks to be eliminated; also, the potential for 

competition through the establishment of a de novo branch by Oregon Bank in 

Reedsport is precluded by branch restrictions contained in Oregon statutes.

Banking in Oregon is concentrated in two statewide branch systems which, 

combined, hold 76.7 percent of total bank deposits, based on October 21, 

1969, statistics. Oregon Bank, with 2.4 percent of the State's total bank deposits, and ranking fourth in size, is dwarfed by the two largest banks with which 

it competes in all but one of its seven service areas. The acquisition of Umpqua 

would have no effect on competition in the areas presently served by Oregon 

Bank, except for a larger loan limit.

Any competitive effects would occur in Reedsport and in the surrounding 

area, known as Lower Umpqua, of which Reedsport is the hub with a population of 4,200. In this area, offices of the State's two largest banks also hold the 

largest shares of the market among seven banks—nearly 30 percent for each, as 

measured in terms of total area deposits. Umpqua ranks about equally with one 

other bank as third largest, holding 14.2 percent and less than one-half the 

volume held by offices of each of the two largest banks. The entry of Oregon 

Bank into this area, with its greater resources and broader range of specialized 

services, should tend to increase competition.

The Board of Directors is of the opinion that the transaction would not 

substantially lessen competition, tend to create a monopoly, or in any other 

manner be in restraint of trade.

Financial and Managerial Resources; Future Prospects. These factors are 

resolved as favorable for the proposal.

Convenience and Needs of the Community to Be Served. The acquisition 

would not cause a reduction in the number of banking offices, and there would 

be no effect as to the convenience and needs factor in the areas presently 

served by Oregon Bank, other than a larger loan limit. The public in the 

Reedsport area will benefit from the larger loan limit of the resulting bank and 

from the specialized services, not now available locally in Reedsport, which 

Oregon Bank can provide, including trust, credit card and international banking 

services, and automation facilities. The proposal will provide the residents and 

business establishments in the Reedsport community with a major banking 

source.

Based on the foregoing, the Board of Directors has concluded that approval 

of the application is warranted.

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

Resources

(in

thousands

of dollars)

Banking Offices

In

operation

T o be

operated

First Citizens Bank and

Trust Company of South Carolina 37,903 8 12

Dillon, South Carolina 

to merge with

The Commercial Bank and

Trust Company of South Carolina

Columbia

32,362 4

Summary report by Attorney General, February 26, 1970

The two branch offices of Citizens Bank in Lancaster, about 56 miles north 

of Columbia, are the nearest existing offices to Commercial Bank. After Citizens Bank's merger with Bank of Great Falls, the nearest office of Citizens 

Bank to Commercial Bank will be forty miles to the north. In view of the 

substantial distance between the two banks and the existence of other banks in 

the intervening area, the proposed merger will have little, if any, effect on 

direct competition between the banks.

Under South Carolina law either bank could be permitted to establish a 

branch office in the market or markets served by the other bank. Lancaster 

(population 8,000) and Dillon are the largest markets that Citizens Bank presently serves. Its two offices in Lancaster compete with two banks in the town, 

and the main office in Dillon competes with an office of South Carolina 

National Bank (total deposits of $463.7 million) and two other banks in surrounding communities. While these markets may experience some industrial 

growth in the future and become attractive to entry by other banks, the large 

statewide banks are more likely to enter these areas de novo than Commercial 

Bank.

Commercial Bank's offices serve Columbia and the adjacent community of 

West Columbia, the largest banking market in South Carolina. Six commercial 

banks in addition to Commercial Bank have offices in Columbia, including the 

four largest banks in the state each of which have total deposits of over $150 

million. As of June 1968, these seven banks operated 38 offices in Columbia. 

The five largest of these seven also operated eight offices in the adjoining 

communities of West Columbia and Cayce. In June 1968, Commercial Bank 

held the fifth largest share of deposits in Columbia and the two adjacent 

communities in Lexington County-about 6.4 percent of total IPC demand 

deposits and 10 percent of total deposits. The three largest banks, which are 

also the three largest in the state, accounted for about 81 percent of total IPC 

demand deposits and about 73 percent of total deposits in the Columbia area.

Citizens Bank, which has demonstrated an interest in expanding its operations into other banking markets by its acquisition of several other banks and 

pending application to establish an office de novo in Charleston, appears to be 

a likely de novo entrant into the growing Columbia area. However, Consolidation of Commercial Bank, one of the smaller banks in the Columbia area, and 

Citizens Bank could result in a stronger competitor to challenge the leading 

banks and reduce concentration. We conclude that the proposed merger would 

be unlikely to have any significantly adverse effect on potential competition.

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BANK ABSORPTIONS APPROVED BY THE CORPORATION 47

Basis for Corporation approval, March 6, 1970

Citizens Bank of South Carolina, Dillon, South Carolina ("Citizens"), a 

State nonmember insured bank with total deposits of $33,645,000, whose title 

was changed subsequent to the filing of the applications, to First-Citizens Bank 

and Trust Company of South Carolina, 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 Commercial 

Bank and Trust Company of South Carolina, Columbia, South Carolina 

("Commercial"), a State nonmember insured bank with total deposits of 

$28,596,000, and for consent to the establishment of the four offices of Commercial as branches of the resulting bank. The merger would increase the 

number of offices of Citizens from eight to 12. Approval is also requested to 

the change of location of the main office from Dillon to Columbia, to the 

exercise of trust powers, and to the retirement, at the option of the holders 

thereof, of the Series C convertible preferred stock to be issued in connection 

with the merger.

Competition. Citizens presently is headquartered in Dillon and operates 

branches in Lancaster, Clio, Nichols, Cheraw, Lake View, and Great Falls—all 

located in the northeastern quadrant of South Carolina. Among the banks with 

offices in its several service areas, Citizens holds the largest share of the local 

market (25.2 percent), as measured in terms of total local deposits, and has the 

largest number of local offices. This compares with 15.0 percent held by the 

bank which has the second largest share of the local market. However, this 

relationship in the local market would not change as a result of the merger. 

Citizens is in competition with branches of the State's largest and third largest 

banks and with the third and seventh largest banks in North Carolina. As a 

result of the merger, Citizens would be in a stronger competitive position with 

the larger banks, through greater overall resources, an increased lending limit, 

and the acquisition of trust powers.

Commercial's offices are all located in the greater Columbia metropolitan 

area in the center of the State. In this area, it holds 9 percent of the local 

deposits, ranking fifth, which is only a little more than one-half the volume of 

local deposits held by the bank ranking fourth. Commercial is in direct competition with 20 offices of the State's two largest banks (headquartered in 

Charleston) and with 19 offices of the State's third and fourth largest banks 

(headquartered in Columbia). As a result of its greater resources and expanded 

services, the resulting bank would be in a position to offer stronger competition in the Columbia area with the State's four largest banks.

Citizens and Commercial presently serve separate trade areas, and there is no 

competition between them which would be eliminated by their merger. Citizens' nearest location to Commercial is 42 miles north of Columbia. South 

Carolina statutes permit statewide branching, and Citizens could enter the 

Columbia market through de novo branching; however, with no established 

locations in Columbia and in the face of well-established locations of Commercial and the State's four largest banks (along with others), it is unlikely that 

de novo entry by Citizens could develop substantial competition for these 

other banks within a reasonable period of time. Also, it is unlikely that Commercial would seek to enter the areas served by Citizens through de novo

branching.

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

The Board of Directors is of the opinion that the proposed merger would 

not substantially lessen competition, tend to create a monopoly, or in any 

other manner be in restraint of trade.

Financial and Managerial Resources; Future Prospects. These factors are 

resolved in favor of the proposed merger. Commercial is confronted with a 

management problem due to advanced age of its present executive officer and 

lack of a successor, whereas Citizens possesses considerable management depth 

through its affiliation with First-Citizens Bank & Trust Company, Smithfield, 

North Carolina.

Convenience and Needs of the Community to Be Served. In the Columbia 

area, aside from changing the identity of the offices of Commercial from a 

small local branch system to the main office and resulting branches of a much 

larger institution, there will be several major improvements in services to the 

public, including a lending limit nearly triple that of Commercial, bank credit 

card plan, and other expanded services. In the service areas of Citizens, the loan 

limit will be nearly doubled and trust services will become available to its 

customers. In general, the merger will result in a wider range of enlarged 

banking services available at the offices of both Citizens and Commercial.

Based on the foregoing information, the Board of Directors has concluded 

that approval of the applications is warranted.

Resources

(in

thousands

of dollars)

Banking Offices

In

operation

To be

operated

United Bank of Arizona

Phoenix, Arizona

117,807 13 13

to merge with

Pacesetter Financial Corporation

Phoenix

2,631 —

Summary report by Attorney General, February 16, 1970 

The proposed merger is part of a transaction which will result in United 

Bank of Arizona becoming a wholly-owned subsidiary of a one-bank holding 

company. Thus, this merger is merely part of a corporate reorganization and as 

such will have no effect on competition.

Basis for Corporation approval, March 26, 1970

United Bank of Arizona, Phoenix, Arizona ("Applicant"), a nonmember 

insured bank with total deposits of $100,394,700, has applied, pursuant to the 

provisions of Section 18(c)(1)(A) of the Federal Deposit Insurance Act, for the 

Corporation's prior consent to merge under its charter and title with Pacesetter 

Financial Corporation, Phoenix, Arizona, a nonbanking corporation formed for 

the sole purpose of facilitating the formation of a one-bank holding company 

to own applicant.

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BANK ABSORPTIONS APPROVED BY THE CORPORATION 49

Applicant is the only operating bank involved in this proposal. It presently 

operates its main office and nine branches within the Phoenix Standard Metropolitan Statistical Area and one branch each in Casa Grande, Coolidge, and 

Yuma. This proposal, of itself, will not change the number of offices or the 

services presently offered by Applicant, which will continue operations at the 

same locations and with the same assets, liabilities, capital, and management.

On the basis of the above information, the Board of Directors has concluded 

that approval of the application is warranted.

Resources

(in

thousands

of dollars)

Banking Offices

In

operation

To be

operated

The Pennsauken Bank

Pennsauken Township, New Jersey 

(change title to Fidelity Bank and 

Trust Company of New Jersey)

25,019 2 3

to merge with

Burlington Bank & Trust Company

Burlington

20,331 1

Summary report by Attorney General, February 26, 1970 

The distance between the closest offices of The Pennsauken Bank and 

Burlington Bank is 17 miles. There are several commercial banks in the intervening area. While each of the banks do have some deposits and loans and 

discounts originating in the service area of the other, the application states that 

this is a result of an allocation of business resulting from common ownership 

and management. For these reasons, it would appear that the proposed merger 

would not eliminate any significant amount of existing competition between 

the merging banks.

Under New Jersey law, either bank could be permitted to open de novo

branches in the service area of the other, although not in communities subject 

to home office protection. The Pennsauken Bank is the sixth largest of eight 

banks situated in Camden County and controls about 2 per cent of total 

county deposits. Burlington Bank is the eighth largest of fifteen banks in 

Burlington County and controls about 5 per cent of total county deposits.

The merging banks have about 40 per cent common stock ownership and a 

common Chairman of the Board of Directors. Neither has a history of expansion. While both banks are in rapidly growing areas, neither Burlington Bank 

nor the Pennsauken Bank would appear to be among the most likely potential 

entrants into the other's service area.

We conclude that the proposed merger is unlikely to have a significantly 

adverse effect on competition.

Basis for Corporation approval, March 26, 1970 

The Pennsauken Bank, Pennsauken Township, New Jersey ("Applicant"), a

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

State nonmember insured bank with total deposits of $21,841,000, 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 with the title of "Fidelity Bank and Trust Company of New Jersey," with 

Burlington Bank & Trust Company, Burlington, New Jersey ("Other Bank"), a 

State member bank with total deposits of $17,865,000, and for consent to 

establish a branch at the one location where Other Bank is presently operating. 

The merger would increase the number of offices of Applicant to three. Applicant has also requested the Corporation's consent to exercise trust powers.

Competition. The two offices of Applicant are located in Pennsauken Township in Camden County, adjacent to the city of Camden. The one office of 

Other Bank is located within the city and county of Burlington, which adjoins 

Camden County to the north and east. Both of the participating banks are 

located in the Philadelphia, Pennsylvania-New Jersey SMSA, which had a population of 4.3 million in 1960. The New Jersey portion of the SMSA consists of 

Burlington, Camden, and Gloucester counties. Both service areas are experiencing growth, with that of Applicant leaning towards further industrialization while Other Bank's increase is to greater residential density with overtones of commercial activity.

Applicant's service area extends 5 miles east-west and 3 miles in a roughly 

north-south direction. Other Bank's trade area consists of most of Burlington 

Township, part of Florence Township to the east, and Edgewater Park 

Township to the southwest. The two main offices are approximately 17 air 

miles apart. The trade areas served by Applicant and Other Bank are separate 

and distinct with no overlapping. There is no direct competition between the 

participating banks, whose nearest service area borders are some 8 miles apart 

with a number of commercial banking offices of several institutions located in 

the intervening area.

There are seven banks with 13 offices in the trade area served by Applicant. 

A Camden-based bank with four offices and 31 percent of the I PC deposits has 

the greatest share of the market. Applicant has 12.6 percent, and four of the 

banks operating in the trade area have a greater share of the market than 

Applicant.

Only four banks with eight offices presently in operation compete in the 

service area of Other Bank. The other Burlington-based commercial bank has a 

total of 13 offices and total deposits of over $50 million. Three of its branches 

in Other Bank's trade area have 44.9 percent of the market. Other Bank is the 

second largest, with 23.8 percent of the market. The resulting bank should be 

able to compete more effectively with the other larger Burlington-based bank 

than Other Bank can at present.

In Applicant's trade area the resulting bank would be competing with two 

banks with total deposits in excess of $250 million and one with total deposits 

in excess of $100 million. The resulting bank would be only fifth in asset rank 

among the seven institutions competing in the Pennsauken area, while in the 

Burlington service area, the resulting bank would be substantially smaller than 

the other Burlington-based bank.

Due to legal limitations on de novo branching, common ownership, and 

other deterring factors, there is no significant amount of potential competition 

which would be eliminated by this proposal.

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BANK ABSORPTIONS APPROVED BY THE CORPORATION 51

The Board of Directors is of the opinion that the proposed merger would 

not substantially lessen competition, tend to create a monopoly, or in any 

other manner be in restraint of trade.

Financial and Managerial Resources; Future Prospects. Financial and managerial resources are adequate with respect to both participating banks and are 

so projected for the resulting bank. Future prospects for the resulting bank are 

favorable.

Convenience and Needs of the Community to Be Served. The resulting bank 

would be better equipped to supply the credit needs in both trade areas than 

the participating banks are at present. This proposal would also provide the 

residents of the Pennsauken area with an alternate source of trust services.

Based on the foregoing information, the Board of Directors has concluded 

that approval of the applications is warranted.

Resources

(in

thousands

of dollars)

Banking Offices

In

operation

To be

operated

American Anson Bank

Monroe, North Carolina 

(in organization; change title to 

American Bank & Trust Company)

300 14

to merge with

American Bank & Trust Company

Monroe

55,424 14

Summary report by Attorney General, February 16, 1970 

The proposed merger is part of a plan under which The Waccamaw Corporation proposes to acquire all of the voting shares of American Anson Bank, a 

non operating institution and to effect the merger of American Bank & Trust 

Company into American Anson Bank. The effect of these transactions will be 

to transfer control of an existing bank to The Waccamaw Corporation which 

will become a registered bank holding company. In and of itself, however, the 

proposed merger would merely combine an existing bank with a non operating 

institution; as such, and without regard to acquisition of the surviving bank by 

The Waccamaw Corporation, the proposed merger would have no effect on 

competition.

Basis for Corporation approval, March 26, 1970

Pursuant to Sections 5 and 18(c) and other provisions of the Federal 

Deposit Insurance Act, applications have been filed for Federal deposit insurance for American Anson Bank, Monroe, North Carolina, a proposed new bank 

in organization, and for consent to merge with American Bank & Trust 

Company, Monroe, North Carolina ("Old Bank"), an operating nonmember 

insured bank, and for permission to establish 17 branches. Old Bank presently 

operates 13 branch offices and has the necessary approvals to establish four

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

additional de novo branches. As of September 30, 1969, Old Bank had total 

resources of $55,424,000. The resulting bank would operate under the charter 

of New Bank and with the title of Old Bank.

The proposal is designed to facilitate the acquisition of ownership of Old 

Bank by a one-bank holding company which will file the necessary applications 

with the Board of Governors of the Federal Reserve System to become a 

registered bank holding company. New Bank will not be in operation as a 

commercial bank prior to consummation of the proposed transaction, and it 

will begin business at the present locations of Old Bank with the latter's assets, 

liabilities, capital, and management.

Old Bank has provided banking services to its trade area on a convenient and 

successful basis for many years. The subject proposal, in and of itself, will not 

alter these services or the service area and, involving only a change in form of 

corporate organization, will, of itself, have no effect on competition. All factors required to be considered relative to each application are favorably resolved.

On the basis of the above information, the Board of Directors has concluded 

that approval of the applications is warranted.

Resources

fin

Banking Offices

thousands

of dollars)

In

operation

T o be

operated

Northern Central Bank and Trust 

Company

Williamsport, Pennsylvania

60,275 3 4

to merge with

Milton Bank and Safe Deposit 

Company

Milton

9,898 1

Summary report by Attorney General, January 26, 1970

The offices of NCB and Milton Bank are 20 miles apart, in different 

counties. Five banking offices, operated by four banks, intervene. The two 

banks have few common customers and each bank obtains only a small amount 

of deposits and loans from the service area of the other. Therefore, it appears 

that the merger would eliminate only a limited amount of competition between the banks.

NCB is the largest of 13 banks headquartered in Lycoming County, holding

20.7 per cent of the total deposits held by these banks. Two other banks, also 

headquartered in Williamsport, hold comparable shares. Milton Bank is fourth 

largest of nine banks operating within ten miles of Milton, holding 12.0 per 

cent of the total deposits held by these banks.

Under Pennsylvania law, both banks could branch de novo into the service 

areas of the other. Because of its relative size, NCB could be considered a likely 

potential de novo entrant into Milton Bank's service area. The merger would

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BANK ABSORPTIONS APPROVED BY THE CORPORATION 53

eliminate this potential competition between the two banks.

Basis for Corporation approval, March 26, 1970

Northern Central Bank and Trust Company, Williamsport, Pennsylvania 

("Applicant"), an insured nonmember bank with total resources of $60 

million, 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 Milton Bank and Safe Deposit Company, Milton, Pennsylvania ("Milton 

Bank"), which has total resources of $9.9 million, under the charter and title 

of Applicant and, incident thereto, to establish the sole office of Milton Bank 

as a branch.

Competition. The service area of Applicant's three offices covers Williamsport (population 42,000) and its environs. Industry is well diversified, and 

favorable transportation facilities together with educational and recreational 

opportunities contribute to continued economic growth.

The sole office of Milton Bank lies in the Borough of Milton (estimated 

population 8,600), and 54,000 persons live within a 15-mile radius. The outlying area is primarily agricultural, and several manufacturing firms have located in or near Milton.

The nearest offices of the two banks are separated by 20 miles, there is no 

significant overlapping of their trade areas, and there is no evidence of any 

direct competition between them which would be eliminated by the proposed 

merger. The limited resources of Milton Bank weigh against the possibility of 

branching de novo into the Williamsport area. The size of Applicant indicates a 

potential for competitive branching; however, the bank has not favored de

novo branching in the past and would be unlikely to choose the Milton area for 

such an entry, since there are nine banks operating within a 10-mile radius.

While Applicant is the largest bank in its trade area measured in terms of 

I PC deposits, its margin over the second- and third-ranked banks is small and 

would be increased only slightly by this merger.

Neither Milton Bank nor its local competitor, which is of approximately 

equal size, are considered adequately equipped to meet the credit requirements 

and the need for a full scope of banking services resulting from the present and 

projected economic growth of the area. This proposal would enable local interests to compete more effectively against large banks in Philadelphia and New 

York City which historically have solicited the larger and more profitable 

commercial accounts throughout the region.

The Board of Directors is of the opinion that the merger would not substantially lessen competition, tend to create a monopoly, or in any other manner 

be in restraint of trade.

Financial and Managerial Resources; Future Prospects. These factors are 

satisfactory with respect to the participating banks and are projected favorably 

for the resulting bank.

Convenience and Needs of the Community to Be Served. Milton Bank, 

because of its modest resources and unit structure, is unable to provide the full 

range of banking services for which demand is increasing. The merger would 

introduce the advantages of a larger bank which could extend these services, 

thereby facilitating the development of the community. The only appreciable 

benefit to the Williamsport community would be the increased lending limit 

resulting from the merger.

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54 FEDERAL DEPOSIT INSURANCE CORPORATION

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

To be

operated

Bank of Yakima

Yakima, Washington

25,982 6 7

to merge with

Bank of Prosser 

Prosser

4,191 1

Summary report by Attorney General, January 14, 1970

The home offices of the participating banks are 51 miles apart. The closest 

office of Yakima Bank at Sunnyside is some 15 miles from Prosser. There are 

several banks in the area between Sunnyside and Prosser, including branches of 

the National Bank of Commerce and the Old National Bank of Washington, 

with total deposits of $1.1 billion and $254 million, respectively. It would 

appear, therefore, that little if any, direct competition between the banks 

would be eliminated by the proposed merger.

Washington law prevents any banks from establishing a de novo branch in 

any additional city or town where any other bank regularly transacts business 

(although it does permit state wide expansion by acquisition or merger.) Accordingly, the only way in which Yakima Bank might enter Prosser is by means 

of merger with an existing bank. But Yakima Bank could open an office in any 

community adjacent to Prosser which did not presently have a bank and, thus, 

become a direct competitor of Prosser Bank. Yakima Bank is the fourth largest 

bank in terms of deposits in Yakima County. The three larger banks are all 

state wide organizations with many times the assets overall of Yakima Bank. As 

a result, Yakima Bank must be considered a significantly less likely entrant into 

the Prosser area than these three banks.

The overall competitive effect of this merger is not likely to be adverse.

Basis for Corporation approval, March 26, 1970

Bank of Yakima, Yakima, Washington ("Applicant"), an insured nonmember State bank with total deposits of $22,328,000, has applied, pursuant 

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

the Corporation's prior approval to merge with Bank of Prosser, Prosser, 

Washington ("Other Bank"), a State nonmember insured bank with total 

deposits of $3,734,000. The banks would merge under the charter and title of 

Applicant; and, as an incident to the merger, the one office of Other Bank 

would become a branch of Applicant, increasing the number of its offices to 

seven.

Competition. In addition to its main office, Applicant operates four 

branches in the city of Yakima (population 48,000) and one in Sunnyside 

(population 7,200), both in Yakima County. Sunnyside is 45 miles southeast 

of Yakima. The economy of the trade area served by Applicant is primarily

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BANK ABSORPTIONS APPROVED BY THE CORPORATION 55

dependent upon agricultural activities, and irrigation has been a major factor in 

the development of Yakima County.

Other Bank is located in Prosser (population 3,100) in Benton County. The 

economy of the trade area served by Other Bank is also predominantly agricultural. The shortest distance between offices of the participating banks is the 

16 miles separating Sunnyside and Prosser. There are offices of other commercial banks in the intervening area as well as in Sunnyside and Prosser. 

Neither of the participating banks derives any significant amount of business 

from the trade area of the other, and there is no appreciable amount of direct 

competition which would be eliminated by this proposal.

State law prohibits de novo branching by a bank into a community where 

another bank maintains an office. At present there are two commercial bank 

offices in Prosser, and it does not appear that this small community could 

support a third office. The amount of potential competition which would be 

eliminated by this proposed merger is not significant.

The two largest commercial banks in the State of Washington hold 50 

percent of the deposits held by commercial banks in the State. Applicant and 

Other Bank combined hold less than 1 percent of statewide deposits. Within 

the resulting bank's trade area, it would hold 12.7 percent of the deposits held 

by commercial banks and one mutual savings bank. The resulting bank would 

be competing with four commercial banks and one mutual savings bank. Based 

on trade area deposits, the resulting bank would rank fourth, but each of the 

competing institutions has total deposits greatly in excess of the resulting bank. 

The four competing commercial banks range in size from $264 million to $1.7 

billion in deposits, and the one competing mutual savings bank has total deposits of $680 million. The resulting bank would be competing with four 

commercial banks and one mutual savings bank which are among the six largest 

banks headquartered in the State of Washington. Consummation of this proposed transaction should tend to increase competition, as the resulting bank 

should be able to compete more effectively with its giant competitors than the 

participants can as independent units.

The Board of Directors is of the opinion that the merger would not substantially lessen competition, tend to create a monopoly, or in any other manner 

be in restraint of trade.

Financial Resources. The financial history and present condition of each 

merging bank is generally satisfactory, and the resulting bank would have adequate financial resources.

Managerial Resources. The management of Applicant has established a record of satisfactory performance, and the resulting bank would have adequate 

managerial resources.

Future Prospects. The earnings record of Other Bank has not been as good 

as Applicant's, and the future prospects of Other Bank, as a part of the resulting bank, would be enhanced. Future prospects for the resulting bank are 

favorable.

Convenience and Needs of the Community to Be Served. It is not anticipated that this proposal would significantly benefit the trade area served by 

Applicant, but it should permit the resulting bank to provide an alternate 

source for additional services in the trade area served by Other Bank.

Based on the foregoing information, the Board of Directors has concluded 

that approval of the application is warranted.

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56 FEDERAL DEPOSIT INSURANCE CORPORATION

Resources

(in

thousands

of dollars)

Banking Offices

In

operation

To be

operated

Bank of Fuquay

Fuquay-Varina, North Carolina 

(change title to The Fidelity Bank)

24,116 4 8

to merge with

Citizens State Bank

Biscoe

11,887 4

Summary report by Attorney General, February 20, 1970

The head offices of the merging banks are 90 miles apart, their closest 

offices are about 80 miles apart, the counties in which each operates are 

separated by another county, there are several intervening banks, and three 

stockholders common to both banks (including an officer of Bank of Fuquay 

who is a director of both banks) own a controlling amount of stock in each 

bank. In view of these facts, the proposed merger would not eliminate any 

substantial amount of direct competition.

While North Carolina permits statewide de novo branching, it does not 

appear that, given the size and long-standing common ownership of the 

merging banks, either bank could be regarded as a likely potential entrant into 

the area served by the other.

Basis for Corporation approval, April 16, 1970

Bank of Fuquay, Fuquay-Varina, North Carolina ("Applicant"), an insured 

nonmember bank with total resources of $24.1 million, 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 Citizens State Bank, Biscoe, 

North Carolina ("Other Bank"), which has total resources of $11.9 million, 

under the charter of Applicant, with the title "The Fidelity Bank"and, incident 

thereto, to establish the four offices of Other Bank as branches.

Competition. Applicant's three branches are within 20 miles of its head 

office, which is located in an area historically dominated by agricultural pursuits, especially tobacco raising and marketing, but more recently witnessing a 

trend toward an industrialized and urbanized economy. Two branches are in 

Cary, a suburb of Raleigh, the State capital and county seat. All of these 

locations, as well as that of an approved application for a branch in Wake 

Forest, are in Wake County, which is coterminous with the Raleigh, North 

Carolina, SMSA. Other Bank is situated in a small town in the center of the 

State and, with its three branches, serves a local area dependent upon textile, 

hosiery, and rug manufacturing and several lumber mills.

The nearest offices of these two banks are separated by 68 miles; there is no 

overlapping of service areas, no known instance of either deriving business from 

the trade area of the other, and no evidence of common deposit or loan 

customers. These two banks have been commonly owned and managed for 

approximately 20 years by the Holding family, which also controls a number 

of other banks. One of these affiliates is the fourth largest bank in the State,

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BANK ABSORPTIONS APPROVED BY THE CORPORATION 57

with deposits of $611 million as of December 31, 1969, and another, The Bank 

of Candor, is located in the trade area of Other Bank.

While North Carolina permits statewide de novo branching, the potential for 

any such development here is seen as remote, in view of the localized nature 

and relatively small size of the banks involved, as well as the common ownership and management presently in evidence.

The Board of Directors is of the opinion that the merger would not 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 these factors 

is satisfactory with respect to both banks and is projected as favorable for the 

resulting bank.

Convenience and Needs of the Community to Be Served. The effect of the 

proposal in this respect is regarded as minimal. Some benefit may accrue from 

the 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

T o be

operated

The Littleton Savings Bank

Littleton, New Hampshire

34,633 1 1

to merge with

The Littleton Co-operative Bank 

Littleton

284 1

Summary report by Attorney General, March 12, 1970

The merging banks, across the street from one another, compete for savings 

deposits and loans. Two other banks serve Littleton, Littleton National Bank 

with deposits of $6 million and Peoples National Bank with deposits of $4 

million. The merger will eliminate some competition.

Basis for Corporation approval, April 30, 1970

The Littleton Savings Bank, Littleton, New Hampshire ("Applicant"), an 

insured mutual savings bank with total deposits of $30 million, 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 Littleton 

Co-operative Bank, Littleton, New Hampshire ("Littleton Co-operative"), a 

noninsured State institution which has total deposits of $218,000, under the 

charter and title of Applicant. The present office of Littleton Co-operative 

would be discontinued.

Littleton Co-operative is operated by one of its directors, who receives only 

token compensation for his services and provides office space at no cost in the 

quarters occupied by his own insurance business. Management of Littleton 

Co-operative desires to terminate its affairs.

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58 FEDERAL DEPOSIT INSURANCE CORPORATION

Competition. Both Applicant and Littleton Co-operative are thrift-type institutions and operate single offices within 100 feet of each other. It is estimated that about 50 percent of Littleton Co-operative's depositors also have 

accounts at Applicant. Littleton Co-operative is a very small institution that 

has originated no new loans in the past year. Its deposits are declining, and its 

management intends to liquidate voluntarily if the merger is not consummated.

Applicant is the largest bank, and only mutual savings bank, in the relevant 

service area; and this proposal would increase its share of total IPC deposits in 

the service area from 65.6 percent to 66.1 percent.

In view of the unusual circumstances presented by Littleton Co-operative's 

small size, declining deposits, limited services, and intended liquidation, the 

Board of Directors is of the opinion that the proposed transaction would not 

substantially lessen present or potential competition, tend to create a 

monopoly, or in any other manner be in restraint of trade.

Financial Resources. The declining size of Littleton Co-operative prevents it 

from offering any meaningful amount of services to the community, but the 

resulting bank will have adequate financial resources.

Managerial Resources. Applicant has adequate managerial resources to 

operate successfully the resulting bank.

Future Prospects. Applicant has been growing at a steady, though moderate, 

pace; and the prospects for the resulting bank are favorable.

Convenience and Needs of the Community to Be Served. The resulting bank 

should continue to serve adequately the convenience and needs of the community. Both Applicant and Littleton Co-operative pay 5 percent interest on 

their savings deposits, so depositors at Littleton Co-operative would not be penalized by this proposed merger.

Based on 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

To be

operated

Great Western Bank & Trust Company 116,560 19 19

Phoenix, Arizona

to merge with

Grecon, Inc. — —

Phoenix

Summary report by Attorney General, (received April 16, 1970)

This merger is part of a corporate reorganization and will combine an existing bank with a corporation which does no banking business. As such it will 

have no effect on competition.

Basis for Corporation approval, May 22, 1970 

Great Western Bank & Trust Company, Phoenix, Arizona ("Applicant"), a

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BANK ABSORPTIONS APPROVED BY THE CORPORATION 59

nonmember insured bank with total deposits of $99,853,000, has applied, pursuant to the provisions of Section 18(c)(1)(A) of the Federal Deposit insurance Act, for the Corporation's prior consent to merge under its charter and 

title with Grecon, Inc., Phoenix, Arizona, a nonbanking corporation formed 

for the sole purpose of facilitating the exchange of stock of Applicant held by 

minority stockholders for stock in Great Western Corporation, a one-bank 

holding company.

Applicant is the only operating bank involved in this proposal. At the 

present time, in addition to the main office, Applicant operates 18 offices: 

four in Tucson, two full-service branches and four facilities in Phoenix, and one 

each in Scottsdale, Kingman, Prescott, Holbrook, Window Rock, Snowflake, 

Winslow, and Tuba City. This proposal, of itself, will not change the number of 

offices or the services presently offered by Applicant, which will continue 

operations at the same locations and with essentially the same assets, liabilities, 

capital, and management.

On the basis of the above information, the Board of Directors has concluded 

that approval of the application is warranted.

Resources

/ J m

Banking Offices

u n

thousands

of dollars)

In

operation

To be

operated

The Barnitz State Bank of Middletown

Middletown, Ohio 

(in organization; change title to 

The Barnitz Bank)

500 3

to merge with

The Barnitz Bank 

Middletown

40,584 3

Summary report by Attorney General, May 20, 1970 

The proposed merger is part of a plan under which First Banc Group of 

Ohio, a registered bank holding company, proposes to acquire all of the voting 

shares of Barnitz State Bank of Middletown (Org.),a non operating institution 

and as a contemporaneous transaction, to effect the merger of Barnitz Bank 

into Barnitz State Bank of Middletown (Org.). The effect of these transactions 

will be to transfer control of an existing bank to a registered bank holding 

company. In and of itself, however, the proposed merger would merely combine an existing bank with a non operating institution; as such, and without 

regard to acquisition of the surviving bank by First Banc Group of Ohio, the 

proposed merger would have no effect on competition.

Basis for Corporation approval, May 28, 1970

Pursuant to Sections 5 and 18(c) and other provisions of the Federal Deposit Insurance Act, applications have been filed for Federal deposit insurance 

for The Barnitz State Bank of Middletown, Middletown, Ohio ("New Bank"), a 

proposed new bank in organization, and for consent to merge with The Barnitz

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60 FEDERAL DEPOSIT INSURANCE CORPORATION

Bank, Middletown, Ohio ("Old Bank"), an operating nonmember insured bank, 

and for permission to establish two branches. As of December 31, 1969, Old 

Bank operated two branches and had total resources of $40,584,000. The 

resulting bank would operate under the charter of New Bank and with the title 

of Old Bank.

The proposal is designed to facilitate the acquisition of ownership of Old 

Bank by First Banc Group of Ohio, Inc., a registered bank holding company 

which has received permission from the Board of Governors of the Federal 

Reserve System to acquire all of the voting shares of Old Bank. New Bank will 

not be in operation as a commercial bank prior to consummation of this 

proposed transaction, and it will begin business at the present locations of Old 

Bank, with the latter's assets, liabilities, capital, and management.

Old Bank has provided banking services to its trade area on a convenient and 

successful basis for many years. The subject proposal, in and of itself, will not 

alter these services or the service area and, involving only a change in form of 

corporate organization, will, of itself, have no effect on competition. All factors required to be considered relative to each application are favorably resolved.

On the basis of the above information, the Board of Directors has concluded 

that approval of the applications is warranted.

Resources

(in

thousands

of dollars)

Banking Offices

In

operation

T o be

operated

First Trust Union Bank

Wellsville, New York

52,763 8 9

to merge with

The First National Bank of Salamanca 6,639 1

Salamanca

Summary report by Attorney General, March 11, 1970

The nearest office of First Trust to First National is located in Franklinville 

about 21 miles northeast of Salamanca. The Franklinville branch of First Trust 

(total deposits $6.7 million) and First National's office in Salamanca each 

derives most of its business from the town in which it is located and the 

immediate area. There is some competitive overlap, however, in the Great 

Valley area between Frankl invil le and Salamanca. This direct competition between the banks would be eliminated by the merger. However, in view of the 

small amount of business each bank derives from the Great Valley area, and 

competition afforded by three banks in Olean, New York and a branch of 

Manufacturers & Traders Trust Co. (the second largest Buffalo bank) in 

Ellicottville, the proposed merger would not appear to have a significantly 

adverse effect on direct competition.

Under New York law, First Trust could not be permitted to establish a de

novo branch in Salamanca. First National could, however, be permitted to 

establish a de novo office in any of the seven towns in which First Trust has a 

branch office. In view of the nature of these communities, however, and the

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BANK ABSORPTIONS APPROVED BY THE CORPORATION 61

presence of other potential entrants, we conclude that the merger would not 

have any significantly adverse effect on potential competition.

Basis for Corporation approval, July 23, 1970

First Trust Union Bank, Wellsville, New York ("First Trust"), an insured 

State nonmember bank with total deposits of $48,516,000, has applied, pursuant to Section 18(c) and other provisions of the Federal Deposit Insurance 

Act, for the Corporation's prior approval to merge with The First National 

Bank of Salamanca, Salamanca, New York ("First National"), which has total 

deposits of $6,428,000. The banks would merge under the charter and title of 

First Trust; and, as an incident to the merger, the one office of First National 

would become a branch of First Trust, increasing the number of its off ices to 

nine.

Competition. First Trust operates its main office in Wellsville (population 

8,300), six branches at other locations in Allegany County, and one branch 

office in Franklinville in Cattaraugus County. An application has been approved for another branch at Yorkshire Corners in the northeast portion of 

Cattaraugus County. The economy of the area served is a mixture of agriculture, commerce, and industry. First National operates its only office in 

Salamanca (population 8,500) in Cattaraugus County.

Wellsville is 50 miles east of Salamanca, and there are several offices of other 

commercial banks in the intervening area. Little business is generated by either 

First Trust or First National from areas served by the other, and they have few 

common customers. While some competition would be eliminated between 

First National and the Frankl invil le branch of First Trust, 21 miles to the 

northeast, the volume of business generated from the area of competitive overlap is minimal. A second local bank in Salamanca and a branch office of the 

second largest Buffalo bank (total assets $1.1 billion) in El I icottville would 

continue to offer the Cattaraugus County public in this area reasonably convenient alternatives for banking services.

The home office protection features of the New York Banking Law do not 

permit First Trust to branch de novo into Salamanca or First National to 

branch de novo into Wellsville, but either could establish de novo branches in 

other places where they might become direct competitors. Increased competition between the two banks in the future is not regarded as likely for several 

reasons, including First National's limited resources, the relatively limited population served by each commercial bank office already in Allegany and 

Cattaraugus counties, the relatively low income levels prevailing in the two 

counties, and the slow rates of population growth anticipated for the two 

counties during the next 10 years.

First National is one of two local banks headquartered in Salamanca. It 

ranks sixth in asset size among the seven commercial banks headquartered in 

Cattaraugus County and 12th in asset size among the 13 commercial banks 

with offices there. The proposed merger would eliminate one of these banking 

alternatives and would increase First Trust's share of commercial bank deposits 

in Cattaraugus County to approximately 9 percent, and its share of commercial 

bank offices in Cattaraugus County to approximately 17 percent. A large number of commercial bank alternatives would remain after the merger, however, 

and they should be sufficiently numerous to insure vigorous competition in a 

county of only 80,000 people. The proposed merger would not affect First

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

Trust's competitive position within Allegany County, while its shares of commercial bank assets and offices in New York's Ninth Banking District would be 

increased to only 1.5 percent and 3.9 percent, respectively.

The Board of Directors is of the opinion that the merger would not substantially lessen competition, tend to create a monopoly, or in any other way be in 

restraint of trade.

Financial and Managerial Resources. The financial and managerial resources 

of First National would be strengthened by the proposed merger, without 

significant effect on the resulting bank.

Future Prospects. First Trust has been an aggressive competitor within its 

service area, whereas First National has assumed a less competitive and more 

conservative posture in the Salamanca area. The future prospects of the resulting bank are favorable.

Convenience and Needs of the Community to Be Served. Within the immediate Salamanca area, the merger would result in the payment of higher rates 

on savings and other time deposits. In addition, larger loan limits, more liberal 

lending terms, trust department services, and several other banking services 

would become available, for the first time, to First National customers. While 

some of these services are available at the other bank locally headquartered in 

Salamanca and at Ellicottville, the merger would bring to the area's public the 

benefits of additional competition.

Based on 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

To be

operated

Davis County Savings Bank

Bloomfield, Iowa

12,137 2 2

to merge with

Davis County Investment Company

Bloomfield

137 —

Summary report by Attorney General, June 14, 1970 

Davis County Investment Company is a wholly-owned subsidiary of Davis 

County Savings Bank and its only activity has been ownership of the banking 

houses of the latter bank. For this reason the proposed merger will have no 

adverse competitive effect.

Basis for Corporation approval, August 6, 1970

Davis County Savings Bank, Bloomfield, Iowa ("Davis"), with total resources of $12,137,000, has applied, pursuant to the provisions of Section 

18(c)(1)(A) of the Federal Deposit Insurance Act, for the Corporation's prior 

consent to merge under its charter with Davis County Investment Company, 

Bloomfield, Iowa ("Investment Company"), a wholly owned noninsured instiDigitized for FRASER 

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BANK ABSORPTIONS APPROVED BY THE CORPORATION 63

tution with no deposit liabilities which was organized for the sole purpose of 

holding title to the premises of Davis. Essentially, the proposal involves transfer 

of ownership of bank premises to Davis by means of merger.

Competition. Davis operates its main office in Bloomfield, Iowa, and a 

teller's facility in the community of Moulton, a distance of 18 miles west. The 

Exchange Bank, a private noninsured institution with deposits of approximately $2,500,000, is located in Bloomfield. Except for a teller's facility in 

Pulaski, Iowa, 10 miles east, there are only five other commercial banking 

offices with estimated deposits of $70,100,000 within 25 miles. Investment 

Company has never engaged in the business of banking, its sole purpose has 

been to hold title to the premises occupied by Davis and its facility under lease 

arrangements. The merger would not alter the number of banks in the area and, 

consequently, there would be no resulting effect on competition.

The Board of Directors is of the opinion that the merger would not substantially lessen competition, tend to create a monopoly, or in any other manner 

be in restraint of trade.

Financial and Managerial Resources; Future Prospects. These factors are 

generally satisfactory with respect to the merging institutions and are so projected for the resulting bank.

Convenience and Needs of the Community to Be Served. The transaction 

will not change the services and facilities presently provided by Davis; thus, the 

convenience and needs of the community will be served as in the past.

Based on the foregoing information, the Board of Directors has concluded 

that approval of the application is warranted.

Resources

(in

thousands

of dollars)

Banking Offices

I n

operation

To be

operated

Suburban Trust Company

Hyattsville, Maryland

527,327 45 49

to merge with

National City Bank of Baltimore

Baltimore

22,590 4

Summary report by Attorney General, May 27, 1970

Although each of the merging banks draws isolated accounts from the 

other's service area, the proposed merger will not eliminate any significant 

amount of direct competition. Their closest offices are separated by substantial 

distances and numerous banking alternatives.

Under Maryland law, each of these banks may branch anywhere in the 

State. As the largest Maryland bank not now operating in Baltimore City and 

County, Suburban may be considered the most likely entrant into the 

Baltimore vicinity.

However, in view of the size and market position of Baltimore Bank, and 

the fact that Suburban may be expected to compete actively to increase its

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64 FEDERAL DEPOSIT INSURANCE CORPORATION

market position in the Baltimore area, we conclude that the proposed merger 

will have no significantly adverse effect on potential competition.

Basis for Corporation approval, August 6, 1970

Suburban Trust Company, Hyattsville, Maryland ("Suburban"), an insured 

State nonmember bank with total deposits of approximately $460 million, 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 National City 

Bank of Baltimore, Baltimore, Maryland ("National City"), which has total 

deposits of approximately $20 million, under the charter and title of Suburban. Application is also made for consent to establish six branches at the 

four locations where National City is presently operating offices and at two 

approved but unopened locations for which National City has regulatory approval. After the establishment of these six branches, the resulting bank would 

have a total of 51 authorized offices.

Competition. The primary service area of Suburban is Prince Georges and 

Montgomery counties, from which it derives most of its business. Suburban 

also has branch approvals for Howard and Charles counties.

The primary service area of National City consists of the city of Baltimore 

and surrounding portions of Baltimore County. The city of Baltimore had a 

population of 939,000 at the time of the 1960 census, and it is estimated that 

the entire National City service area has a population of 1.6 million. The 

Baltimore metropolitan area is highly industrialized, and it has a stable economy with good prospects for the future. National City, which was organized in 

1963, is the next to smallest commercial bank in Baltimore.

At present the Beltsville Branch of Suburban is the nearest location to an 

office of National City, and the distance involved is approximately 20 miles. 

Suburban and National City serve separate trade areas, although Suburban 

derives some isolated business from the Baltimore area, and there is no significant amount of direct competition between them which would be eliminated 

by the proposed merger. Suburban has the necessary approvals to establish a de

novo branch at Columbia in Howard County, which is closer to Baltimore than 

its Beltsville branch. The establishment by Suburban of a branch at Columbia, 

however, is unlikely to result in significant direct competition between the 

participating banks since there are numerous offices of other commercial banks 

in the area between Columbia and the offices of National City.

Legally each of the participating banks could branch de novo into the trade 

area served by the other since Maryland law permits statewide branching. 

National City, being a relatively small commercial bank in direct competition 

with the largest banks in Maryland, is not considered likely to branch de novo

into areas served by Suburban, but Suburban may be considered the most 

likely outside entrant into the Baltimore market, since it has had extensive 

success in opening de novo offices elsewhere, has an aggressive and expansionminded management, and is the largest bank in the State of Maryland presently 

without offices in the growing Baltimore area. The elimination of this potential 

competition, however, is reduced in significance by National City's relatively 

small size, both in terms of deposits and number of offices, among Baltimorebased banks (its share of total deposits held by such banks being an estimated

0.25 percent, by the presence of a significant number of commercial bank 

alternatives in the Baltimore area, and by the likely efforts of Suburban, subDigitized for FRASER 

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BANK ABSORPTIONS APPROVED BY THE CORPORATION 65

sequent to the merger, to expand its share of the Baltimore market at the 

expense of the larger banks presently dominant there.

Suburban is the fourth largest bank in the State of Maryland, with 9.5 

percent of the deposits held by all commercial banks in the State. Consummation of this proposed transaction would not change the position of Suburban as 

the fourth largest bank, although its share of statewide commercial bank deposits would increase to 9.8 percent. The first, second, and third largest commercial banks in the State would have 19.1 percent, 12.0 percent, and 10.6 

percent, respectively, of statewide deposits.

The proposed transaction would have no significant effect in Suburban's 

present trade area, but in the Baltimore area the resulting bank should be able 

to compete more effectively with the largest banks in the State than National 

City can as an independent unit. This aspect of the proposed merger may be 

considered procompetitive.

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. Each of the participating banks has 

adequate financial resources, as would the resulting bank. The resulting bank 

would also have a satisfactory and diversified management.

Future Prospects. The future prospects for National City as a part of the 

resulting bank would appear to be brighter than as an independent unit in a 

major city. Future prospects for the resulting bank are favorable.

Convenience and Needs of the Community to Be Served. This proposed 

transaction would have no significant effect on the public convenience and 

needs in the trade area served by Suburban; but, by replacing the offices of 

National City with branches of the fourth largest bank in the State, an additional source for many specialized banking and trust services in the Baltimore 

area would be provided.

Based on 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

T o be

operated

Citizens Bank and Trust Company

of Maryland

Riverdale, Maryland

231,113 32 34

to merge with

The Waldorf Bank

Waldorf

12,674 2

Summary report by Attorney General, May 7, 1970 

The closest office of Citizens to The Waldorf Bank is located in Fort 

Washington, some 10 miles north of the Accokeek branch of the latter and 

about 15 miles from Waldorf. Although the application states that there is only

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

a negligible amount of competition between the merging banks, developing 

population patterns and commuter habits indicate that a limited amount of 

direct competition will be eliminated by the proposed merger.

Under Maryland law, Citizens, as well as any other commercial bank, could 

be permitted to open de novo offices throughout the state. As the application 

indicates, Citizens is actively pursuing a competitive program of de novo

branching in other parts of the greater Washington area.

As southern portions of Prince Georges County and northern Charles 

County become more fully integrated into the Washington metropolitan area, 

commercial banks presently serving that area can be expected to seek entry 

into this region to follow existing customers and serve developing communities. 

Citizens should be considered high on the list of potential entrants into northern Charles County, for, as well as being the seventh largest commercial bank in 

Maryland, it holds a very strong position in adjoining Prince Georges County. 

Citizens presently holds the second leading position among commercial banks 

in Washington's Maryland suburbs; as of June 30, 1968, it held almost 25 

percent of the commercial bank deposits in Prince Georges County. Suburban 

Trust Company, the state's fourth largest bank, held some 44 percent of such 

deposits.

The proposed merger would eliminate Citizens as a potential de novo entrant into northern Charles County. This adverse effect on potential competition is to some extent ameliorated by the existence of other potential entrants, 

including Suburban Trust Company and larger banks headquartered in 

Baltimore, but which are now increasing their efforts in the Washington 

suburbs.

Basis for Corporation approval, August 6, 1970

Citizens Bank and Trust Company of Maryland, Riverdale, Maryland 

("Citizens"), an insured nonmember bank with total deposits of $203 million, 

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 

Waldorf Bank, Waldorf, Maryland ("Other Bank"), which has total deposits of 

$12 million. The banks would merge under the charter and title of Citizens; 

and, as an incident to the merger, the two offices of Other Bank would become 

branches of Citizens.

Competition. The service area of Citizens lies primarily in Montgomery 

County and Prince Georges County, the two Maryland counties which are 

included in the fast growing Washington, D.C., SMSA. Citizens operates 31 

offices and has approval to open five additional branches in these two counties. 

It also has one office in Anne Arundel County, but none in Charles County, 

where Other Bank is headquartered.

Because of the disparate size of the two banks, the most immediate impact 

of their proposed merger will be felt in the northern portion of Charles County 

and in the southern portion of Prince Georges County (which Other Bank 

serves from a branch office in Accokeek). This area is just beginning to realize 

the effects of accelerated expansion previously experienced by other suburban 

areas surrounding the District of Columbia.

The main offices of the two banks are separated by 28 miles, and the 

nearest Citizens branch is 7 miles from Other Bank's branch at Accokeek, and 

16 miles from Other Bank's main office. There is little overlapping of the areas

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BANK ABSORPTIONS APPROVED BY THE CORPORATION 67

served by the two banks, however, and only a minimal amount of present 

competition would be eliminated.

Since statewide branch banking is permitted by Maryland law, and since the 

service area of Other Bank is now expected to experience steady growth, the 

two banks in the absence of merger might find themselves in increasing competition in the future through the establishment of de novo branches. While 

Other Bank may lack the resources for significant de novo branching in areas 

served by Citizens, Citizens has demonstrated in the past its capacity for extensive, de novo branch activity. However, the present population of the town of 

Waldorf (estimated at 1,200), which is served by three commercial bank 

offices, and the present population of Charles County (estimated at 42,000), 

which is served by eight commercial bank offices, provide little incentive to 

Citizens to establish de novo branches in the county, although future growth 

might make such branches increasingly attractive. Any such future growth, 

however, will also attract other large banks to Charles County, thereby reducing the significance of eliminating potential competition between Citizens 

and Other Bank through consummation of the proposed merger. Moreover, to 

the extent future growth includes persons who commute to Washington, D.C., 

the commercial bank alternatives available to them would include all of the 

District banks as well as local Maryland banks.

Citizens holds about 25 percent of the commercial bank deposits in Prince 

Georges County, the second largest share. The State's first, third, and fourth 

largest banks, however, also compete in the county. Other Bank holds about 19 

percent of the commercial bank deposits in Charles County, the third largest 

share. It faces competition from Maryland's largest bank and from a newly 

established office of Suburban Trust Company, Hyattsville, Maryland's fourth 

largest bank.

Citizens is the seventh largest commercial bank in the State of Maryland, 

with 4.1 percent of the commercial bank deposits in the State. The proposed 

merger would raise this percentage to 4.3. Five Baltimore-based banks and 

Suburban Trust Company would continue to be larger in percentage shares of 

of statewide deposits.

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. The position of Citizens is satisfactory 

with respect to each of these factors. The managerial resources of Other Bank 

have become strained in recent years, with some resulting deterioration of its 

financial resources. Merger with Citizens would provide managerial talent in 

sufficient depth to overcome such deficiencies.

Future Prospects. The future prospects of both banks, and of the resulting 

bank, are satisfactory.

Convenience and Needs of the Community to Be Served. Customers of 

Other Bank would be convenienced by a broader range of banking services, 

including trust department services, higher lending limits, and Applicant's more 

aggressive management. The public in Other Bank's service area would also 

benefit from the convenient availability of another source for such commercial 

bank services.

Based on the foregoing, the Board of Directors has concluded that approval 

of the application is warranted.

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68 FEDERAL DEPOSIT INSURANCE CORPORATION

Resources

(in

thousands

of dollars)

Banking Offices

In

operation

To be

operated

Southern Bank and Trust Company

Greenville, South Carolina

73,318 18 19

to merge with

State Bank 

York

2,128 1

Summary report by Attorney General, May 7, 1970

Southern Bank presently operates two branch offices in York County. Its 

Rock Hill office lies about 15 miles east of State Bank, while its office in 

Clover is about 10 miles north of State Bank, with no other banking offices in 

the intervening areas. In addition, Southern Bank presently has another branch 

office in Rock Hill under construction. Thus, the proposed merger will eliminate some existing competition between the merging banks.

As of June 30, 1968, nine banks operated a total of 17 banking offices in 

York County. As of that date, the three largest of such banks held about 70 

per cent of total commercial bank deposits in the county.

The proposed merger would cause an increase in commercial banking concentration in York County. Southern Bank, with the third largest share, holds 

approximately 13 per cent of total county commercial bank deposits; its 

merger with State Bank would increase this market share to 16 per cent, and 

cause a similar increase in the share of the York County market held by the 

three largest commercial banks.

Basis for Corporation approval, August 6, 1970

Southern Bank and Trust Company, Greenville, South Carolina 

("Applicant"), an insured State nonmember bank with total deposits of $64 

million, has applied, pursuant to Section 18(c) and other provisions of the 

Federal Deposit Insurance Act, for the Corporation's prior approval to merge 

with State Bank, York, South Carolina ("Merging Bank"), which has total 

deposits of $2 million. The banks would merge under the charter and title of 

Applicant; and, as an incident to the merger, the one office of State Bank 

would become a branch of Applicant, increasing the number of its operating 

and approved offices to 19.

Competition. Applicant operaties 16 offices in the northwest part of South 

Carolina, and two additional offices have been authorized by the supervisory 

authorities. Two of Applicant's existing offices are in York County: one at 

Clover, some 10 miles north of the town of York, and one at Rock Hill, some 

16 miles to the east. In addition, an authorized but unopened office is under 

construction in Rock Hill. The Merging Bank operates its only office in the 

town of York (population 4,800) in the central part of York County. Because 

of the disparate size of the two banks, the most immediate impact of the 

proposed merger would be felt in the trade area served by the Merging Bank,

i.e., the town of York and its surrounding environs. The economy of this area 

is relatively stable and is oriented toward textile manufacturing and agricultural 

activities.

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BANK ABSORPTIONS APPROVED BY THE CORPORATION 69

The proposed merger would eliminate whatever competition presently exists 

between the Merging Bank and Applicant's branches in York County, but this 

is a factor of only limited significance since neither bank derives a significant 

amount of deposit or loan business from areas served by the other and since 

the Merging Bank has no trust department.

If the proposed merger is consummated, Applicant would control approximately 16 percent of the commercial bank deposits and offices in York 

County. It would be one of eight banks with offices in the county, including 

three much larger banks: one with a branch at Clover and two with branches in 

Rock Hill. In the town of York, Applicant would compete, as the Merging 

Bank has in the past, with a local bank having deposits of $6.4 million—more 

than three times the deposits held by the Merging Bank. In a county of some

85,000 persons, eight commercial bank alternatives should be adequate to 

insure a vigorously competitive climate in the future. Moreover, since statewide 

branch banking is authorized in South Carolina, other large banks may seek to 

enter York County by de novo branching if countywide growth makes this 

attractive, thus adding to the number of commercial bank alternatives available 

to the York County public.

Under South Carolina law, either bank involved in the proposed merger 

could find itself in greater competition with the other by establishing de novo

branches in areas served by the other. The proposed merger would eliminate 

that potential for increased competition between them, but the likelihood that 

such de novo branch activity would take place is remote. Because of its small 

size, the Merging Bank is unlikely to undertake de novo branching to any 

significant extent. Applicant, on the other hand, has little incentive to branch 

into the area now served by the Merging Bank, because of the already low 

population per commercial bank office in the central part of York County and 

because that part of the county, unlike other parts of the county, is not expected to grow significantly in the foreseeable future.

Applicant ranks sixth in deposit size among commercial banks in South 

Carolina, with approximately 3 percent of the commercial bank deposits in the 

State. The approximate percentage shares controlled by the five largest commercial banks are, in decreasing order of magnitude, 23 percent, 14 percent, 10 

percent, 9 percent, and 4 percent, and the three largest of these banks already 

have offices in York County. The proposed merger would have only nominal 

effect on Applicant's percentage share, while other merger alternatives open to 

the Merging Bank cannot be said to be clearly preferable to the proposed 

merger with Applicant.

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

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. Financial and managerial resources are 

adequate with respect to both participating banks and are so projected for the 

resulting bank.

Future Prospects. Applicant has been a much more aggressive competitor 

than the Merging Bank and has grown at a rapid rate. The future prospects for 

the resulting bank are favorable.

Convenience and Needs of the Community to Be Served. The proposed 

merger would have no significant effect in the areas presently served by the

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70 FEDERAL DEPOSIT INSURANCE CORPORATION

Applicant, but it would improve the quality and quantity of banking services 

for customers of the Merging Bank. They would, for example, have conveniently available Applicant's more liberal and progressive loan policies, significantly higher lending limits than those of either local bank today, Applicant's 

certificates of deposit, and its various trust department services.

Based on the foregoing information, the Board of Directors has concluded 

that approval of the application is warranted.

Resources

(in

Banking Offices

thousands

of dollars)

In

operation

To be

operated

Fulton Bank

Fulton, Kentucky

8,118 1 1

to acquire the assets and assume the

liabilities o f

Citizens Bank

Water Valley

605 1

Summary report by Attorney General, June 30, 1970

Citizens Bank ceased banking operations December 15, 1969, and liquidated 

its assets with the assistance of Fulton Bank.

In view of the size and financial condition of Citizens Bank, it is unlikely 

that this transaction would have an adverse effect on competition.

Basis for Corporation approval, August 21, 1970

Fulton Bank, Fulton, Kentucky ("Applicant"), an insured State nonmember bank with total deposits of $7,412,100, has applied, pursuant to 

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

the Corporation's retroactive consent to its purchase of the assets and assumption of the liabilities of Citizens Bank, Water Valley, Kentucky ("Citizens 

Bank"), an uninsured bank with total deposits of $501,300 at the time it 

closed.

Competition. Applicant operates its main and only office in Fulton, 

Kentucky, which has an estimated population of 8,000. Prior to year-end 

1969, Citizens Bank operated its main and only office in Water Valley, 

Kentucky, which has a population of less than 300. This office was closed 

permanently upon consummation of the transaction because Kentucky law 

authorizes a Fulton County bank to operate branches only in Fulton County. 

Water Valley is 6 miles from Fulton in Graves County.

While there were no intervening banking offices between Fulton and Water 

Valley, the amount of business each institution drew from the area served by 

the other was minimal. For a number of reasons, Citizens Bank had determined 

to liquidate, and a sizeable portion of Citizens Bank's deposits would have been 

transferred to Applicant in any event.

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Applicant currently ranks second in size among the four banks in its competing area, based on total deposits. This position was not changed by the 

consummation of this transaction.

The Board of Directors is of the opinion that this transaction has not, in any 

section of the country, substantially lessened competition, tended to create a 

monopoly, or in any other way been in restraint of trade.

Financial and Managerial Resources; Future Prospects. The financial and 

managerial resources of the Applicant, and its future prospects, appear adequate for purposes of this transaction.

Convenience and Needs of the Community to Be Served. The voluntary 

closing of Citizens Bank left the community of Water Valley without a banking 

institution. Approximately 90 percent of the people in that community, however, travel the 6 miles to nearby Fulton to shop, and their banking requirements continue to be met with only slight inconvenience. In addition to the 

banks in Fulton, there are numerous other banks within reasonable driving 

distance of Water Valley.

Based on 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

To be

operated

Citizens Bank

Shelbyville, Kentucky

(change title to Citizens Union Bank)

4,387 1 2

to merge with

Bank of Simpsonville

Simpsonville

2,581 1

Summary report by Attorney General, March 12, 1970 

This proposal involves the merger of the second and fifth largest banks in 

Shelby County, Kentucky.

A distance of about eight miles separates the merging banks. There are no 

banks operating in the intervening area, and it appears that each bank draws 

some business from areas immediately served by the other. At least some 

competition exists between these banks; such competition, of course, will be 

eliminated by the proposed merger.

As of June 29, 1968, six commercial banks, holding some $17.6 million in 

total deposits, operated in Shelby County. Three banks, including Citizens 

Bank, held about 66 per cent of these deposits. Citizens Bank, the second 

largest, held 21.9 per cent and Simpsonville Bank, the fifth largest, held 10.1 

per cent of these deposits. If the proposed merger is consummated, the resulting institution will be the largest bank in Shelby County and will hold about 32 

per cent of total commercial bank deposits in Shelby County.

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72 FEDERAL DEPOSIT INSURANCE CORPORATION

Basis for Corporation approval, August 21, 1970

Citizens Bank, Shelbyville, Kentucky ("Applicant"), an insured State nonmember bank with total deposits of $4,277,000, 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 Bank of Simpsonville, 

Simpsonville, Kentucky ("Other Bank"), an insured State nonmember bank 

which has total deposits of $2,208,000. The banks would merge under the 

charter of the Applicant with the title of "Citizens Union Bank." Incident to 

the merger, the one and only office of Other Bank would become a branch of 

Applicant.

Competition. Applicant operates its main and only office in Shelbyville, 

Kentucky, which has a current estimated population of 5,500. Other Bank 

operates its main and only office 8 miles to the west of Shelbyville in 

Simpsonville, Kentucky, which has a current population estimated at 1,000.

Applicant is presently fourth in deposit size among eight competing independent banks in its service area, two of which are on the southern border of 

Henry County to the north. Applicant has 12.2 percent of the total commercial bank deposits within this relevant market area, and consummation of 

the proposal would increase this percentage share to 18.5 percent. The resulting bank would be the largest institution by deposit size in Shelbyville, but it 

should not be a dominant influence in view of the similar size of the three 

other banks headquartered there.

A small amount of existing competition between the two banks would be 

eliminated by the proposed merger, but the relatively more aggressive management of Other Bank should bring a better competitive climate to Shelbyville 

itself. As to increased competition between the two banks in the future, Other 

Bank cannot branch de novo, into the city of Shelbyville under Kentucky law 

because of home office protection, while the sparsely populated unincorporated areas of Shelby County are not likely to provide much incentive to the 

Applicant to branch de novo, in view of the already low population per commercial bank office, the relatively low income levels that prevail, and the very 

slow population growth experienced by the county since 1950.

Under these circumstances, the Board of Directors is of the opinion that the 

merger would not, in any section of the country, substantially lessen competition, tend to create a monopoly, or in any other way be in restraint of trade.

Financial and Managerial Resources. Financial and managerial resources of 

the resultant bank would be adequate, as they are for the merging banks.

Future Prosepcts. The future prospects for the resultant bank are regarded 

as favorable and somewhat stronger than for either bank as an independent 

institution.

Convenience and Needs of the Community to Be Served. Customers of 

Other Bank would obtain the convenience of a branch office in Shelbyville, the 

county seat, if the merger is consummated. In addition, the lending limit 

applicable to Other Bank's customers would be increased almost threefold, and 

the services of a small trust department would become available. The public 

generally would benefit from access to a passbook savings service and an installment loan department which actively solicits business.

Based on the foregoing information, the Board of Directors has concluded 

that approval of the application is warranted.

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Resources

(in

thousands

of dollars)

Banking Offices

In

operation

To be

operated

Security Bank and Trust Company

Salisbury, North Carolina

62,936 19 20

to merge with

Industrial Bank of Lexington

Lexington 4,276 1

Summary report by Attorney General, June 3, 1970

Security Bank operates no Davidson County office, although its branches in 

Spencer and Salisbury, 12 and 15 miles southwest of Lexington, respectively, 

are readily accessible via interstate highway. The application indicates that 

Security Bank's Spencer office derives deposits from Lexington equivalent to 

about 10 per cent of Industrial Bank's total deposits and loans from Lexington 

equivalent to about 5 per cent of Industrial Bank's total loans. While Industrial 

Bank apparently has never utilized many of the powers of a commercial bank, 

it has been a vigorous institution. Its total assets have trebled and its total loans 

have almost quadrupled since December 31, 1960. It appears, consequently, 

that some direct competition exists between Industrial Bank and Security 

Bank. This competition, of course, would be permanently eliminated by the 

proposed merger.

Six banks, including branches of the largest and third largest banks in the 

State, operate 13 banking offices in Davidson County. The three largest banks 

in Davidson County held about 79 per cent of total county deposits. Industrial 

Bank, a small local institution, held less than 4 per cent of such deposits.

Basis for Corporation approval, August 21, 1970

Security Bank and Trust Company, Salisbury, North Carolina ("Security"), 

an insured State nonmember bank with total deposits of $53 million, 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 Industrial 

Bank of Lexington, Lexington, North Carolina ("Industrial"), an insured State 

nonmember bank with total deposits of $4 million. The merger would be 

effected under Security's charter and title; and, as an incident thereto, Industrial's one and only office would be operated as a branch, increasing the number of Security's offices to 22, including two authorized but unopened 

branches.

Competition. Security serves 11 communities in the south-central part of 

the State where its 19 offices are located. Industrial's one and only office is 

located in Lexington (estimated population 18,500), 16 miles northeast of 

Security's nearest office, where it competes with First Union National Bank of 

North Carolina, the State's third largest commercial bank, with $1 billion in 

assets, as well as an independent local bank six times its size. The Branch 

Banking and Trust Company, the State's sixth largest commercial bank, with 

$250 million in assets, recently received approval to open a branch in 

Lexington, thereby increasing by one the number of large-bank competitors in 

Industrial's trade area. Industrial has the smallest share (about 6 percent) of the 

local deposits held by commercial banks in this area.

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74 FEDERAL DEPOSIT INSURANCE CORPORATION

Industrial is a closely held, limited service institution. In view of its small 

size, its distance from Security's present service area, and its limited range of 

services, only a small amount of existing competition would be eliminated by 

the proposed merger.

Linder North Carolina law, which permits statewide de novo branching, 

either bank could find itself in increasing competition with the other in the 

future, by establishing de novo branches in areas served by the other. Industrial's small size, its lack of branch offices, and its limited services make it an 

unlikely potential competitor in areas served by Security. Security, however, is 

capable of de novo entry into the Lexington area, but it is not likely to find 

this attractive in view of the much larger banks presently authorized to do 

business there, and the already low population per commercial bank office in 

the Lexington area. Moreover, there are numerous banks in North Carolina, 

much larger than Security, that can be considered likely to enter Lexington by 

de novo branching if the area's future growth should make this attractive. The 

proposed merger is not likely, therefore, to have an adverse effect on future 

competition.

Security controls less than 1 percent of the commercial bank deposits in 

North Carolina, and this acquisition would have no appreciable effect on its 

competitive position statewide or on the structure of commercial banking in 

the State as a whole.

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. These factors are 

satisfactory with respect to both banks, and they are so projected for the 

resultant bank.

Convenience and Needs of the Community to Be Served. The proposed 

merger would make available to Industrial's customers demand deposit services, 

credit card services, a lending limit almost 10 times greater than Industrial's 

present limit of $45,000, a larger amount of lendable funds, and a broad range 

of specialized loan services, without reducing the number of offices or commercial bank alternatives in the Lexington area. The public generally should 

benefit from the increased competition which would be afforded the other 

banks in Lexington.

Based on 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

To be

operated

The Oregon Bank

Portland, Oregon

to merge with

State Bank of Rainier

Rainier

123,017

4,112

18 19

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BANK ABSORPTIONS APPROVED BY THE CORPORATION 75

Summary report by Attorney General, February 26, 1970

State's office is about 40 miles from the nearest office of Oregon Bank, with 

several banks operating intervening offices. The proposed merger will not, 

therefore, eliminate any existing competition between the two banks.

Although Oregon Bank has shown a tendency to branch de novo, state law 

prohibits it from branching into Rainier itself. However, it could branch into 

areas adjacent to Rainier. Oregon banking is dominated by United States 

National Bank of Oregon (total deposits as of December 31, 1968, of $1,538 

billion) and the First National Bank of Oregon, Portland, Oregon, (total deposits as of December 31, 1968, of $1,667 billion). U.S. National has an office 

in Columbia County, already, and First National's offices are as close to 

Rainier as are Oregon Banks. Given the vast size disparity between the dominant banks in Oregon and Oregon bank, and the relatively small size of State, 

we conclude that the proposed merger is not likely to have a substantially 

adverse effect on potential competition.

Basis for Corporation approval, August 21, 1970

The Oregon Bank, Portland, Oregon ("Applicant"), a nonmember insured 

bank with total resources of $123,017,000, 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 State Bank of Rainier, Rainier, Oregon 

("Other Bank"), a nonmember insured bank with total resources of 

$4,112,000, and to establish the sole office of Other Bank as a branch of the 

resulting bank. This would increase the number of offices operated by Applicant to 19.

Competition. Applicant's 18 offices serve eight separate and distinct areas, 

the largest and most important of which is the Portland metropolitan area. 

Applicant has no office in Columbia County (population 30,100), where Other 

Bank is located. The closest office of Applicant to Other Bank is some 50 miles 

from Rainier. There is no overlapping of service areas, and no present competition between the two banks which would be eliminated by the proposed merger. The potential, moreover, for future competition between the two banks, 

through the establishment of de novo branches, is limited. Applicant cannot 

branch de novo into Rainier, and neither bank can branch de novo into the 

other cities of Columbia County because of statutory branch restrictions. 

Other Bank's small size makes extensive de novo branch activity remote in any 

event, while the limited population per commercial bank office in Columbia 

County provides little incentive for Applicant to branch de novo into the area 

served by Other Bank.

Banking in Oregon is concentrated in two statewide branch systems which, 

combined, hold 78.0 percent of total commercial bank deposits, based on 

December 31, 1969, statistics. Applicant, with only 2.8 percent of the State's 

commercial bank deposits, ranks fourth in deposit size and competes against 

two large banks in all but one of its eight service areas. The acquisition of 

Other Bank would have no significant effect on competition in the areas presently served by Applicant.

The proposed merger would have its greatest impact in Rainier and in 

Columbia County. Within Other Bank's trade area in Columbia County, the 

second largest bank in the State has two offices and 37.8 percent of the deposit

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76 FEDERAL DEPOSIT INSURANCE CORPORATION

market, while Other Bank has 11.4 percent of the deposit market and one 

office, ranking fourth in deposit size among the five banks with offices in the 

county. The largest bank in the State is also one of the five, and Other Bank 

competes in addition with offices of the two largest banks in the State of 

Washington located 7 miles away in Longview. The entry of Applicant into this 

service area with its greater resources and broader range of specialized services 

should enhance competition with these four large banks.

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. These factors are 

considered satisfactory for both banks and, accordingly, for the resulting bank.

Convenience and Needs of the Community to Be Served. The public in the 

Rainier area would benefit from the proposed merger through the significantly 

larger loan limit of the resulting bank and the specialized services, not now 

available locally in Rainier, which Applicant can provide, including trust department, credit card, automation, and international banking services. In addition, Applicant pays the highest interest rates allowed by law on time deposits, 

irrespective of amount or maturity, while Other Bank does not. At the same 

time, the proposed merger would not reduce the number of commercial bank 

offices or alternatives in Columbia County.

Based on the foregoing, the Board of Directors has concluded that approval 

of the application is warranted.

Resources

fin

Banking Offices

lm

thousands

of dollars)

In

operation

T o be

operated

First-Citizens Bank and Trust Company 

of South Carolina

Columbia, South Carolina

72,000 13 16

to merge with

National Bank of Commerce 

of Spartanburg

Spartanburg

8,378 3

Summary report by Attorney General, June 3, 1970 

The two branch offices of First-Citizens' at Lancaster, 77 miles distant from 

the head office of Spartanburg Bank, are its closest offices to Spartanburg 

Bank. Therefore, it would appear that the proposed merger will have little 

effect on direct competition between the banks.

Under South Carolina law either bank could be permitted to establish a 

branch office in the market or markets served by the other bank. In view of its 

size, Spartanburg Bank does not appear to be one of the more likely potential 

entrants into areas presently served by First-Citizens.

First-Citizens has demonstrated an interest in expanding its operations into 

new banking markets by its acquisition of several other banks and itsapplicaDigitized for FRASER 

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BANK ABSORPTIONS APPROVED BY THE CORPORATION 77

tion to establish a de novo office in Charleston. It has grown to the extent that 

it should be considered a likely potential entrant into the growing Spartanburg 

area. In addition to Spartanburg Bank, four commercial banks, including three 

of the largest statewide banks, operate offices in Spartanburg. These three large 

banks hold about 85 per cent of the total IPC deposits in the Spartanburg area, 

while Spartanburg Bank holds less than 1 per cent. Although First-Citizens 

should be considered a likely potential de novo entrant into Spartanburg, its 

acquisition of one of the smaller banks therein could result in stronger competition to the leading banks.

We conclude that the proposed merger is unlikely to have any significantly 

adverse effect on potential competition.

Basis for Corporation approval, August 21, 1970

First-Citizens Bank and Trust Company of South Carolina, Columbia, South 

Carolina ("Citizens"), a State nonmember insured bank with deposits of 

$62,820,000, 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 National Bank of Commerce of Spartanburg, Spartanburg, 

South Carolina ("National"), with deposits of $6,060,000, and for consent to 

the establishment of the three offices of National as branches of the resulting 

bank. The merger would increase the number of offices of Citizens from 13 to 

17.

Competition. As .of April 15, 1970, Citizens' main office was moved from 

Dillon to Columbia, and it now operates four branches in Columbia and 

vicinity, two in Lancaster, and one each in Dillon, Clio, Nichols, Cheraw, Lake 

View, and Great Falls. All of National's offices are located in the Spartanburg 

area, with one branch located 10 miles east at Pacolet. The nearest offices of 

the two banks are some 60 miles apart.

Citizens presently controls about 16.1 percent of the aggregate deposits in 

its service areas, ranking third behind the two largest banks in the State. The 

third largest bank in the State also controls 16.1 percent of the total deposits. 

On a statewide basis, Citizens ranks sixth in deposit size, along with Southern 

Bank and Trust Company, Greenville, each controlling 3.0 percent of the total 

commercial bank deposits in the State. The approximate percentage shares 

controlled by the five largest commercial banks are, in decreasing order of 

magnitude, 23, 14f 10, 9f and 4. This proposal would increase Citizens'share of 

statewide deposits to 3.4 percent.

Because of the disparate size of the two banks, the most immediate impact 

of the proposed merger would be felt in the trade area served by National. This 

trade area is in the Piedmont Industrial Crescent, a rapidly growing urban area. 

The local Spartanburg economy is relatively stable and is oriented toward 

textile manufacturing and agricultural activities.

In its trade area, National competes with four other banks, including the 

three largest in the State. The remaining competitor is a locally headquartered 

independent bank, more than three times National's deposit size. Based on 

local deposits, National has the smallest share (4.9 percent) of these five banks.

Citizens and National presently serve separate trade areas some 60 miles 

apart. There are numerous intervening banks and branch offices, and there is 

no competition presently existing between the two banks which would be 

eliminated by the proposed merger.

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78 FEDERAL DEPOSIT INSURANCE CORPORATION

Under South Carolina law, which permits statewide branch banking, however, either bank could find itself in greater competition with the other by 

establishing de novo branches in areas served by the other. The proposed 

merger would eliminate that potential for increased competition between 

Citizens and National, but this is not considered a significant factor under the 

circumstances presented by this proposal. National is unlikely, because of its 

limited size, to undertake de novo branching into areas served by Citizens. 

Citizens, on the other hand, has the resources to branch de novo into the 

Spartanburg area, but the entrenched position of the three largest banks in the 

State, the smallest of which is three times Citizens' deposit size, is a disincentive to do so. Moreover, there are other large banks in South Carolina that 

could also enter the Spartanburg area should economic growth in the area in 

the future make such entry attractive. In the interim, Citizens will offer stronger competition to the larger banks in Spartanburg than National could as an 

independent institution.

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. Both banks have adequate financial and 

managerial resources, and there would be no diminution of capital funds or 

reduction in management talent as a result of this merger.

Future Prospects. The merging banks have had a satisfactory growth, and 

future prospects for the resulting bank are favorable.

Convenience and Needs of the Community to Be Served. The proposed 

merger would have no significant effect on the convenience and needs of the 

public in areas presently served by Citizens, but it would improve the quality 

and quantity of banking services for customers of National without reducing 

the number of offices or commercial bank alternatives in the Spartanburg area. 

Thus, in an industrialized area with significant demand for large lines of credit, 

the resulting bank would have a lending limit more than seven times greater 

than National alone and would offer more competitive rates on larger time 

deposits. Another large-bank source for trust services, credit card services, and 

specialized loan demands would also be available to the public generally in the 

area.

Based on 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

To be

operated

Commerce Bank of Bonne Terre

Bonne Terre, Missouri 

(in organization)

6,605 — 1

to acquire a portion o f the assets and

assume the deposit liabilities o f

First State Bank of Bonne Terre 

Bonne Terre

8,128 1

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BANK ABSORPTIONS APPROVED BY THE CORPORATION 79

Approved under emergency provisions. No report requested from the 

Attorney General

Basis for Corporation approval, August 28, 1970 

Pursuant to Sections 5 and 18(c) of the Federal Deposit Insurance Act, 

applications have been made by Commerce Bank of Bonne Terre for Federal 

deposit insurance, for the establishment of a branch at Bonne Terre, and for 

consent to purchase certain assets and assume the deposit liabilities of First 

State Bank of Bonne Terre, Bonne Terre, Missouri, an insured nonmember 

bank which has been closed and is in the hands of the Commissioner of 

Finance of the State of Missouri.

The Commissioner of Finance took possession of the closed bank at the 

opening of business on August 24, 1970, for "liquidation or rehabilitation." It 

has been determined that rehabilitation is impossible, and various groups have 

been solicited to submit bids. The successful bidder is a group representing 

Commerce Bancshares, Inc., Kansas City, Missouri, a registered bank holding 

company which presently owns 15 insured banks in Missouri, none of which 

are in the competitive area served by the defunct bank.

Bonne Terre has a population of about 3,220, with a trade area population 

estimated at 25,000. First State Bank of Bonne Terre, the only bank in the 

community, had operated there for many years, developing a sizable volume of 

business before being closed. The closest banking facilities outside Bonne Terre 

are 10 miles distant. It is expected that the Commerce Bank of Bonne Terre 

will successfully replace the former institution.

Based on the above information, the Board of Directors has concluded that 

approval of the applications for Federal deposit insurance, for the establishment of a branch, and for consent to the assumption transaction is warranted.

Resources

(in

thousands

of dollars)

Banking Offices

In

operation

To be

operated

American Bank and Trust Co. of Pa.

Reading, Pennsylvania

511,507 32 33

to merge with

The First National Bank in Frackville 9,995 1

Frackville

Summary report by Attorney .General, March 31, 1970 

The closest branch of American is approximately seven miles south of 

Frackville in Pottsville. Three other American branches are also located in 

Schuylkill County, 13-17 miles north and east of Frackville. According to the 

application, in spite of this proximity, American has made little penetration 

into those areas of the county served by Frackville Bank. Although some 

alternative banking sources lie in the intervening and adjacent area, it is likely 

that the proposed merger will eliminate some amount of existing competition.

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80 FEDERAL DEPOSIT INSURANCE CORPORATION

Moreover, under Pennsylvania law, American could be permitted to open a 

de novo office in the growing Frackville area. One of its major competitors in 

this area, Pennsylvania National Bank and Trust Company, is following this 

course. This proposed merger would eliminate American as a potential entrant 

in this manner.

As of June 30, 1968, 19 commercial banks operated a total of 42 banking 

offices in Schuylkill County. American held the third largest share of such 

deposits, about 12 per cent, while Frackville Bank held the eighth largest share, 

or about 3 per cent. Their combined share would make the resulting bank thre 

second leading bank in Schuylkill County; the shares of the four leading banks 

would then total about 64 percent. The extremely strong position of the 

County's largest bank, Pennsylvania National Bank and Trust Company, in that 

part of the county surrounding Frackville, would, of course, remain unchanged.

We conclude that the overall effect of the proposed merger on competition 

would be adverse.

Basis for Corporation approval, September 3, 1970

American Bank and Trust Co. of Pa., Reading, Pennsylvania ("Applicant"), 

an insured State nonmember bank with total deposits of $438,293,000, has 

applied, pursuant to Section 18(c) and other provisions of the Federal Deposit 

Insurance Act, for the Corporation's prior approval to merge with The First 

National Bank in Frackville, Frackville, Pennsylvania ("First National"), which 

has total deposits of $9,119,000. The banks would merge under the charter 

and title of the Applicant; and, as an incident to the merger, the main office 

and the approved but unopened branch of First National would become 

branches of Applicant, increasing the number of its offices to 34.

Competition. Applicant's main office is in Reading, the seat of Berks 

County. It operates 31 branches in six of the seven counties in which it may 

legally establish such offices, including four in Schuylkill County, where First 

National is headquartered.

The proposed merger would have its greatest impact in First National's 

service area, which may be defined roughly as the city of Frackville and the 

surrounding area within a radius of approximately 8 miles. Within that area, 

First National's share of the total commercial bank deposits is estimated at

11.7 percent, ranking First National fourth among seven commercial banks 

with offices in its service area. Applicant's closest office to First National is at 

Pottsville, 8 miles south of Frackville, but a range of mountains running east to 

west on the south of Frackville, and a number of intervening offices of 

competing banks, significantly limit the area of competitive overlap. The two 

banks have only three customers in common, arising from loan participations 

in each case, and neither is believed to draw significantly from the deposit and 

loan business originating in areas served by the other. The proposed merger, 

therefore, would not eliminate significant existing competition between the 

two banks.

At year-end 1969, 17 commercial banks operated 42 offices in Schuylkill 

County (1970 estimated population 158,000). Applicant was the largest of 

these banks, but it had less than half the Schuylkill County deposits held by 

Pennsylvania National Bank and Trust Company, headquartered in Pottsville. 

This bank recently received regulatory approval to open a de novo branch in

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BANK ABSORPTIONS APPROVED BY THE CORPORATION 81

Frackville, and Applicant clearly has the capacity to do so as well. Frackville, 

however, has a population of approximately 5,700 people, and the prospect of 

two new branch offices in addition to First National's main office makes 

additional de novo branching in the same area unattractive in the foreseeable 

future. First National, in turn, is unlikely, because of its limited resources, to 

open de novo branches in areas presently served by Applicant. The proposed 

merger, accordingly, is unlikely to eliminate significant future competition 

between Applicant and First National.

Within the seven-county area where it may branch or merge under Pennsylvania law, i.e., its headquarters county and all adjacent counties, Applicant 

holds 8 percent of the commercial bank offices and 11.4 percent of the commercial bank deposits. In one of the adjacent counties (Montgomery), where 

Applicant has 10 authorized branch offices, Applicant faces competition from 

six larger banks and two only slightly smaller. As more Philadelphia banks join 

the four which have already moved their main offices to Montgomery County, 

however, Applicant will find itself under increasing competition in Berks 

County, where its main office and 12 branches are located, and in Chester 

County, both of which are within the branching and merging area of 

Montgomery county banks. Thus, within Applicant's area of possible competition, its present share of commercial bank assets and offices may well diminish, 

rather than increase in the future.

Under these circumstances, the addition of a $9 million bank with two 

offices to Applicant's present holdings of commercial bank deposits and offices 

in the seven-county area within which it can legally operate is not likely to 

result in such a concentration of assets as to foreclose effective commercial 

bank competition in the area in the future.

For the reasons stated, 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 these factors 

is favorable with respect to the merging banks, and they are so projected for 

the resulting bank.

Convenience and Needs of the Community to Be Served. The public in the 

Frackville area would benefit from the full range of specialized lending services, 

trust department services, credit card services, and automated data processing 

services offered by Applicant, and from the higher rate Applicant pays on 

passbook savings accounts. Local businesses would benefit from a legal lending 

limit almost 40 times larger than First National's present limit of $85,000, and 

from the availability of larger denomination certificates of deposits issued at 

the maximum interest rates allowed by current regulations. Following the 

opening of the authorized branch of Pennsylvania National Bank and Trust 

Company, the Frackville public would have a choice between two wellmanaged and aggressive banks for many of these services, with the resulting 

benefits of a more vigorously competitive banking system.

Based on the foregoing, the Board of Directors has concluded that approval 

of the application is warranted.

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82 FEDERAL DEPOSIT INSURANCE CORPORATION

Resources

(in

thousands

of dollars)

Banking Offices

in

operation

To be

operated

Golden State Bank

Bell Gardens, California

49,600 5 7

to merge with

Citrus National Bank 

West Covina

15,531 2

Summary report by Attorney General, June 14, 1970

The closest offices of the merging banks are about 10 miles apart. There, 

however, are a number of banking offices of some of the largest banks in the 

state within the service area of the merging banks, including nine offices of 

Bank of America; six of Security Pacific National Bank; two of CrockerCitizens National Bank; three of United California Bank; one of Wells Fargo 

Bank; one of First Western Bank & Trust Co.; one of United States National 

Bank. Hence, although competition may be eliminated by this merger, it is not 

likely to effect the overall competitive situation in the area. Hence, neither the 

elimination of competition nor the increase in concentration, as a result of this 

merger, is likely to be substantial.

We conclude that the proposed merger is not likely to have an adverse effect 

on competition.

Basis for Corporation approval, September 25, 1970

Golden State Bank, Bell Gardens, California ("Golden State"), an insured 

nonmember commercial bank with total deposits of approximately $44 

million, 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 Citrus National Bank, West Covina, California ("Citrus"), with total deposits of approximately $13.5 million, under the charter and title of Golden 

State. Application is also made for consent to establish two branches at locations where Citrus is presently operating. After the establishment of these two 

branches, the resulting bank would have a total of seven operating offices.

Competition. Each bank competes in a separate, but economically similar, 

suburban area within the Los Angeles-Long Beach SMSA. The offices of the 

two banks serve specific segments of the metropolitan population, and their 

respective trade areas are limited to a 2-mile radius surrounding each office.

The closest Golden State office to Citrus is located at Pico Rivera, about 10 

miles from the Citrus main office. Neither bank appears to derive a significant 

amount of business from areas served by the other, and their proposed merger 

will eliminate little, if any, present competition between them.

Citrus competes today with offices of five of the largest statewide banks in 

California. It holds 12.7 percent of the local deposits derived from its service 

area and ranks fourth among the commercial banks with offices in that area. 

Golden State is in a somewhat similar competitive position within its service 

area. Their proposed merger would create a bank holding less than 1 percent of 

all commercial bank deposits in the Los Angeles-Long Beach SMSA, but a bank 

better able to compete in its service area with the large statewide branch banks 

presently operating there.

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BANK ABSORPTIONS APPROVED BY THE CORPORATION 83

Since statewide branch banking is permitted by California law, the two 

banks could branch de novo into each other's trade area. However, the large 

size of competing banks and the number of offices of such banks in both trade 

areas provide little incentive to adopt this course of action. Moreover, the fact 

that residents commute to Los Angeles and surrounding areas for employment 

appears to offer such residents access to other commercial banks not presently 

represented in the two trade areas.

The Board of Directors, accordingly, 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 participating banks has satisfactory resources, and the management of both banks is 

considered to be capable and experienced. Prospects for each bank, and for the 

resulting bank, appear favorable.

Convenience and Needs of the Community to Be Served. The proposed 

merger would bring to customers of Citrus trust services, significantly larger 

lending limits, and a broader range of commercial bank services than those now 

offered by that bank. For the public generally in the area served by Citrus, the 

merger would provide a convenient local source for these services, in addition 

to the large statewide commercial banks with offices in the area.

Based on the foregoing information, the Board of Directors has concluded 

that approval of the application is warranted.

Resources

fin

Banking Offices

Viii

thousands

of dollars)

In

operation

To be

operated

Home Savings Bank of the 

City of Albany

Albany, New York

117,360 3 4

to merge with

Greenwich Savings and 

Loan Association

Greenwich

2,569 1

Summary report by Attorney General, June 29, 1970 

The proposal would merge Greenwich S & L, the smaller of two savings and 

loan associations operating in Washington County, with Home Savings, the 

fourth largest of six mutual savings banks operating in Albany County.

The nearest offices of the merging institutions are about 40 miles apart. 

Numerous other savings and lending institutions, including commercial banks, 

operate in the intervening area, and neither institution obtains substantial 

business from the areas immediately served by the other. Therefore, significant 

direct competition probably does not exist between the merging institutions.

New York law would not permit Home Savings to establish de novo

branches in Washington County. In view of this fact, and the size of the

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84 FEDERAL DEPOSIT INSURANCE CORPORATION

merging institution, we conclude that the proposed merger would be unlikely 

to have any significantly adverse effect on potential competition.

Basis for Corporation approval, September 25, 1970

Home Savings Bank of the City of Albany, Albany, New York ("HSB"), an 

insured mutual savings bank having total time deposits of approximately $109 

million, 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 Greenwich Savings and Loan Association, Greenwich, New York 

("Merging Association"), an operating noninsured institution having total time 

deposits of approximately $2.3 million, under the charter and title of HSB. 

Application is also made for consent to establish a branch at the sole existing 

location where Merging Association presently does business.

Competition. HSB operates its main office and one branch in the city of 

Albany and has one additional branch operating in the town of Colonie, an 

Albany suburb. Under New York law, it may open de novo branches only in 

Albany County, but can acquire branches by merger anywhere in the State's 

Fourth Banking District. The Merging Association operates its one office in 

Washington County, New York, and serves a stable agricultural trade area of

20,000 persons in Greenwich and in the bordering towns of Cambridge and 

Schuylerville. Under State law, Merging Association could open a de novo

branch within 50 miles of its main office, including those portions of Albany 

County not subject to "home office protection." Merging Association is the 

only mutual institution serving its trade area.

Greenwich is 40 miles from the city of Albany, and the nearest offices of the 

two institutions are 35 miles apart. There is little direct competition between 

them at the present time, and almost no prospect of increased competition 

between them in the future because of the branching restrictions on HSB and 

because of Merging Association's small size.

HSB is the fourth largest savings bank headquartered in the city of Albany 

and the sixth largest mutual institution headquartered in the Fourth Banking 

District. At year-end 1969, it held 5.9 percent of all the deposits held by 

mutual savings institutions in the District, while the comparable percentage for 

Merging Association was 0.1.

The most immediate impact of the proposed merger will be in the 

Greenwich area, where increased lending limits and the introduction of services 

not before available at the Merging Association will increase the competition 

between resulting bank's branch and nearby commercial banks.

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 overall financial 

and managerial position of each institution, and of the resulting bank, is considered satisfactory. The future prospects of each institution, and of the resulting bank, are also considered satisfactory.

Convenience and Needs of the Community to Be Served. The major benefits 

to the public in the area served by Merging Association include higher rates on 

savings deposits, more liberal mortgage lending policies, larger size mortgage 

loans, and additional services such as FHA and VA loans, a 5 percent day-ofDigitized for FRASER 

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deposit-to-day-of-withdrawal account, time deposits, and savings bank life insurance.

Based on the foregoing, the Board of Directors has concluded that approval 

of the application is warranted.

BANK ABSORPTIONS APPROVED BY THE CORPORATION 85

Resources

(in

thousands

of dollars)

Banking Offices

In

operation

To be

operated

Central Carolina Bank & Trust Company

Durham, North Carolina

165,242 33 35

to merge with

Stokesdale Commercial Bank

Stokesdale

4,904 2

Summary report by Attorney General, July 29, 1970

The proposal would merge the $4.7 million deposit Stokesdale Bank with 

Central Carolina, a $145.2 million deposit institution headquartered in 

Durham.

A distance of about 40 miles separates the nearest offices of the merging 

banks, and several banks operate offices in the intervening area. According to 

the Application, neither of the participating banks obtains any significant business from areas immediately served by the other. Consequently, it appears that 

there is little direct competition presently existing between these banks.

North Carolina law permits statewide branching, and Central Carolina, the 

eighth largest bank in the State has the ability to establish de novo offices in 

the growing Stokesdale-Summerfield area. Such potential competition will, of 

course, be eliminated by the proposed merger.

As of June 30, 1968, Stokesdale Bank held less than 1 per cent of total 

deposits held by banking offices in Guilford County, an area where the State's 

two largest banks held over 74 per cent of county total deposits and the four 

largest banks in the State controlled over 90 per cent of total deposits. Stokesdale Bank's share of total banking deposits in that portion of northern Guilford 

County where it is the only commercial bank, however, would be much higher.

In these circumstances, we conclude that this merger would not have any 

significantly adverse effect on competition.

Basis for Corporation approval, September 25, 1970

Central Carolina Bank & Trust Company, Durham, North Carolina 

("Central"), an insured nonmember bank with total resources of $165 million, 

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

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

Stokesdale Commercial Bank, Stokesdale, North Carolina ("Stokesdale Bank"), 

a nonmember insured bank with total resources of $4.9 million, under the 

charter and title of Central and, incident thereto, to establish branches at the 

two existing locations of Stokesdale Bank in Stokesdale and Summerfield, 

North Carolina.

Competition. Central, which operates 32 branches, is a regional bank offering a complete range of banking services. All but tour of its offices are located 

within a 55-mile radius of Durham which, together with Chapel Hill and Research Triangle Park, comprise its principal service area. Stokesdale is located in 

Guilford County, about 75 miles northwest of Durham. Stokesdale Bank, 

which is the only bank in Stokesdale or Summerfield, serves a stable agricultural area of approximately 12,000 persons. It holds 1 percent of the total 

commercial bank deposits in Guilford County. Central has no offices in 

Guilford County.

The nearest offices of the two banks are 40 miles apart, and there is no 

overlapping of service areas. Neither bank derives deposit or loan business from 

areas served by the other, and there appear to be no common customers. Thus, 

the proposed merger would not eliminate any present competition between the 

two banks.

Central, ranking eighth in size among all North Carolina banks at year-end 

1969, competes with offices of the largest banks in the State. It is much 

smaller than most of its major competitors, holding 2.2 percent of all commercial bank deposits in the State, as compared with 20.5 percent held by the 

largest bank and 16.8 percent and 13.4 percent held by the second and third 

largest banks, respectively. The proposed merger would increase Central's share 

of statewide deposits by less than 0.1 percent and would not change in any 

significant way its competitive position within North Carolina.

Under North Carolina law, either bank could branch de novo into areas 

served by the other. Such de novo branching by Stokesdale Bank may be 

considered remote in view of its small size and the distances involved, while 

Central has little incentive to branch de novo into a sparsely populated area 

already served by two offices of Stokesdale Bank and having numerous offices 

of several of the largest banks in the State within a 15-mile radius.

The Board of Directors, accordingly, 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. These factors are 

satisfactory with respect to both participating banks and are so projected for 

the resulting bank.

Convenience and Needs of the Community to Be Served. Stokesdale Bank, 

because of its limited resources and conservative management, does not provide 

a full range of banking services. As a result of the merger, the StokesdaleSummerfield area would gain the advantages of a large regional bank aggressively offering all types of banking services and facilities, including personal 

trust and consumer credit services.

Based on the foregoing, the Board of Directors has concluded that approval 

of the application is warranted.

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BANK ABSORPTIONS APPROVED BY THE CORPORATION 87

Resources

/Jn

Banking Offices

lin

thousands

of dollars)

In

operation

To be

operated

The Coastal Bank

Newport News, Virginia 

(in organization; change title to 

Bank of Hampton Roads)

50 5

to merge with

Bank of Hampton Roads

Newport News

23,530 5

Summary report by Attorney General, June 14, 1970

The proposed merger is part of a plan under which Fidelity American 

Bankshares, Inc., a registered bank holding company, proposes to acquire all of 

the voting shares of Coastal Bank (organizing), a non operating institution and 

as a contemporaneous transaction, to effect the merger of Bank of Hampton 

Roads and Coastal Bank (organizing). The effect of these transactions will be 

to transfer control of an existing bank to a registered bank holding company. 

In and of itself, however, the proposed merger would merely combine an 

existing bank with a non operating institution; as such, and without regard to 

acquisition of the surviving bank by Fidelity American Bankshares, Inc., the 

proposed merger would have no effect on competition.

Basis for Corporation approval, September 25, 1970

Pursuant to Sections 5 and 18(c) and other provisions of the Federal Deposit Insurance Act, applications have been filed for Federal deposit insurance 

and to exercise trust powers for The Coastal Bank, Newport News, Virginia 

("Coastal"), a proposed new bank in organization, and for consent to its merger with Bank of Hampton Roads, Newport News, Virginia ("Hampton"), total 

resources $23,530,000, under Coastal's charter and with Hampton's title. The 

resulting bank will operate from the present main office and four branches of 

Hampton.

The new bank formation and merger are designed solely as a vehicle for 

Fidelity American Bankshares, Inc., Lynchburg, Virginia, a registered bank 

holding company, to acquire controlling ownership of Hampton. The holding 

company has filed the appropriate application with the Board of Governors of 

the Federal Reserve System for consent to the acquisition of 100 percent of 

the voting shares of the successor bank to the merger. Coastal will not be in 

operation as a commercial bank prior to the merger, following which it will 

operate the same banking business, plus trust activities, at the same locations as 

Hampton and with the same executive management. Except for the addition of 

trust powers, the proposal, of itself, will not change the banking services which 

Hampton has provided usefully and conveniently to the Newport News community for several years. Within the city of Newport News, Virginia, where the 

main office and three of its four branches are located, there are 16 other 

banking offices in operation, which include four offices of the second largest 

bank in the State. The other office of Hampton, located in the city of

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88 FEDERAL DEPOSIT INSURANCE CORPORATION

Hampton, competes with 15 other banking offices, including seven of the 

State's largest bank. All factors required to be considered relative to each 

application are favorably resolved.

On the basis of the above information, the Board of Directors has concluded 

that approval of the applications is warranted.

Resources

(•n

thousands

of dollars)

Banking Offices

In

operation

To be

operated

The Manchester Trust Company of 

Manchester, New Hampshire

Manchester, New Hampshire 

(change title to Manchester Savings 

Bank and Trust Company)

2,850 3 3

to acquire the assets and assume

the deposit liabilities o f

Manchester Savings Bank

Manchester

142,948 3

Summary report by Attorney General, February 11, 1969

Manchester Savings operates two offices in Manchester, New Hampshire, the 

largest city in the State. Manchester Trust, also located in Manchester, is presently inactive and has no deposits or loans. Since December 1, 1967, 

Manchester Trust has been a wholly-owned subsidiary of Manchester Savings.

Manchester is the principal industrial city in the State. In the past decade 

the Manchester area has experienced considerable growth. The city is presently 

served by three mutual savings banks and eight commercial banks (excluding 

Manchester Trust). Manchester Savings is the second largest of the eight banks.

While Manchester Trust is authorized by law to accept deposits and otherwise compete with Manchester Savings, it in fact, has not done so. This reflects 

both a practice common in New Hampshire by which savings banks and commercial banks often share common quarters and do not compete in overlapping 

areas of service and the fact that prior to its acquisition by Manchester Savings, 

Manchester Trust was controlled by the principals of Manchester National 

Bank. At present, Manchester Savings, Manchester Trust, and Manchester 

National Bank all have their head offices in the same building in Manchester, 

and since 1967, Manchester Trust has been a wholly-owned subsidiary of 

Manchester Savings. Since the merging institutions have never been active competitors, and are now affiliated, we conclude that this proposed merger will not 

have any significant adverse effect on competition in the Manchester area.

Basis for Corporation approval, October 1, 1970

The Manchester Trust Company of Manchester, New Hampshire, 

Manchester, New Hampshire ("Trust Company"), an insured State nonmember 

commercial bank with total deposits of $2.1 million, has applied, pursuant to 

Section 18(c) of the Federal Deposit Insurance Act, for the Corporation's prior 

consent to acquire the assets of and assume the deposit liabilities of Manchester

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BANK ABSORPTIONS APPROVED BY THE CORPORATION 89

Savings Bank, Manchester, New Hampshire ("Savings Bank"), an insured 

mutual savings bank with total deposits of $123 million. The resulting bank 

would operate under the charter of Trust Company and with the title of 

"Manchester Savings Bank and Trust Company" at three locations.

Competition. Trust Company, as permitted by New Hampshire law, is presently a relatively inactive affiliate of Savings Bank. They share banking quarters 

at each of the three locations at which Savings Bank does business: two of 

which are in Manchester and the other of which is in nearby Bedford. The end 

result of the acquisition proposed would be to convert Savings Bank into a 

commercial bank owned by a one-bank holding company. The terms of that 

exchange have been passed on favorably by the New Hampshire Supreme 

Court. In view of the present ownership of Trust Company, neither existing 

nor potential competition between the two would be eliminated by consummation of the acquisition.

In the Manchester area, the number of mutual savings banks would be 

reduced from three to two, while the number of active commercial banks 

would be increased from eight to nine. Trust Company would become the 

largest commercial bank in its service area and in the State of New Hampshire, 

but there is no showing and no empirical evidence that any existing commercial 

bank will find itself unable to compete successfully with the resulting bank, at 

least for the commercial bank business it now has. Savings Bank at present is 

the second largest of the three mutual savings banks, but all three are larger 

than any of the commercial banks in Manchester save one.

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

proposed acquisition 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. Due to the nature of the proposed 

transaction, the financial resources of Trust Company are not a significant 

factor. Savings Bank has adequate financial resources, as would the resulting 

bank. Management of the resulting bank would include an experienced commercial loan officer as well as Savings Bank's present management team.

Future Prospects. Initially there may be a reduction in the resulting bank's 

savings and time accounts since by regulation it could not pay as much interest 

on such accounts as Savings Bank is presently paying. The interest differential 

presently existing, however, is 0.25 percent for all accounts, and the deposit 

attrition may be only nominal in view of the interest which Savings Bank's 

present depositors would have, as stockholders, in the success of the resulting 

bank. The future prospects for the resulting bank should be at least as good as 

the future prospects of Savings Bank as an independent institution.

Convenience and Needs of the Community to Be Served. Manchester is the 

largest city in New Hampshire, located in the south-central portion of the 

State. The area is a well-diversified center of industry, commerce, and finance, 

with one-seventh of the State's total population and assessed property.

The resulting bank would have new capabilities in the commercial lending 

field: namely, loans based on accounts receivable, inventory, equipment, and 

machinery, as well as term and unsecured loans, all backed by substantial 

resources. The resulting bank would have a basic lending limit of $1,350,000.

Present and potential customers would benefit from this wider range of 

lending capabilities, while mutual savings bank options in Manchester would

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

remain available for those deposit customers whose primary concern is obtaining the highest rate of return allowed by current regulations. Businessmen in 

the area, particularly the relatively new firms and the relatively large firms with 

significant financing requirements, would benefit from the local availability of 

a commercial bank with the highest lending limits in New Hampshire, the 

sizeable lending resources which would be available to it, and a greater choice 

among local area banks for the usual commercial bank services and for trust 

services.

Based on the foregoing information, the Board of Directors has concluded 

that approval of the application is warranted.

Resources Banking Offices

(in

thousands

of dollars)

In

operation

T o be

operated

Lincoln Bank & Trust Company

Ardmore, Oklahoma

9,654 1 1

to merge with

LBTC, Inc. 701 _

Wilmington, Delaware

Summary report by Attorney General, June 14, 1970

The proposed merger is part of a plan of corporate reorganization through 

which Lincoln Bank & Trust Company will become a subsidiary of a one-bank 

holding company. As such, it will have no effect on competition.

Basis for Corporation approval, October 2, 1970

Lincoln Bank & Trust Company, Ardmore, Oklahoma ("Lincoln"), a nonmember insured bank with total resources of $9,654,000, has applied, pursuant 

to the provisions of Section 18(c)(1) of the Federal Deposit Insurance Act, for 

the Corporation's prior consent to merge under its charter and title with LBTC, 

Inc., Wilmington, Delaware, a nonbanking corporation formed for the sole 

purpose of facilitating the exchange of stock of Lincoln for stock in First 

Southwest Corporation, a one-bank holding company.

Lincoln is the only operating bank involved in this proposal. It operates its 

sole office in the town of Ardmore, Oklahoma, and except for two National 

banks in Ardmore with total deposits of $40 million, there are only two other 

banking institutions within 25 miles of the town. Lincoln will continue operations with essentially the same assets, liabilities, capital, and management. The 

merger will not alter the number of banks or banking offices in the area and, 

consequently, of itself, would have no effect on competition.

The Board of Directors is of the opinion that the merger would not substantially lessen competition, tend to create a monopoly, or in any other manner 

be in restraint of trade.

Financial and Managerial Resources; Future Prospects,. These factors are 

found satisfactory with respect to the merging institutions and are so projected 

for the resulting bank.

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BANK ABSORPTIONS APPROVED BY THE CORPORATION 91

Convenience and Needs of the Community to Be Served. The transaction 

will not change the services and facilities presently provided by Lincoln; thus 

the convenience and needs of the community will be served as in the past.

Based on 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

To be

operated

First State Bank of Oregon

Milwaukie, Oregon

65,873 10 14

to merge with

The Multnomah Bank

Portland

21,236 4

Summary report by Attorney General, May 7, 1970 

The head offices of the merging banks are nine miles apart; however, two of 

their branch offices are two miles apart; and two others are only three miles 

apart. In addition, two branches of Multnomah are but three and four miles, 

respectively, from the home office of First State. Thus, it would appear that 

the proposed merger would eliminate considerable direct competition.

In the Portland Standard Metropolitan Statistical Area ("SMSA"), where all 

offices of the merging banks are located, nine banks operate 49 banking 

offices. First State ranks seventh among these nine banks and Multnomah last. 

First State controls about 2 per cent of the total deposits in this area, and 

Multnomah about .6 per cent of such deposits. Commercial banking in the 

Portland SMSA and the State of Oregon is dominated by two banks which 

between them hold over 90 per cent of deposits in Oregon banks. These banks 

are based in Portland, and they also control nearly 90 per cent of total commercial bank deposits in that area. The resulting bank's share of such total 

deposits would increase to 2.6 per cent and it would advance in rank from 

seventh to sixth.

We conclude that this merger would eliminate direct competition between 

the participants and would slightly increase concentration among commercial 

banks in the Portland area. However, in the context of the overwhelming 

dominance of commercial banking in the Portland SMSA by the two largest 

banks, this merger is not likely to have a significantly adverse effect on 

competition.

Basis for Corporation approval, October 2, 1970 

First State Bank of Oregon, Milwaukie, Oregon ("First State"), an insured 

nonmember bank with total deposits of approximately $58.7 million, 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 

Multnomah Bank, Portland, Oregon ("Multnomah Bank"), which has total 

deposits of approximately $19.3 million. The banks would merge under the

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

charter and title of First State; and, as an incident to the merger, the four 

offices of Multnomah Bank would become branches of First State.

Competition. First State's 10 offices are located in four separated suburban 

areas outside the city of Portland. It has no offices within the city of Portland, 

wher§ Multnomah's main office and two of its three branches are located. 

Multnomah's third branch is in Progress, about 41/2 miles west of Portland and 

21/2 miles from First State's nearest office. While there is some overlap of 

service areas in the vicinity of Progress, the direct competition between the two 

banks is not considered substantial in view of the total deposit and loan 

business originating in these service areas and the relatively recent establishment of their branch offices in and near Progress. Since First State can branch 

de novo into Progress and into the city of Portland, and since both banks can 

expand in the growing unincorporated areas, some potential for increased competition between the two banks would also be eliminated by the proposed 

merger, but the significance of this factor is reduced by the extensive de novo

branching activity of the State's two largest branch banks and by the large 

number of commercial bank alternatives remaining in the three-county 

Portland area. Moreover, de novo entry by First State into Portland, where the 

State's two largest branch banks are headquartered and strongly entrenched, 

cannot be said to be clearly preferable to the proposed merger, since the 

merger would give First State a larger base from which to compete with nearby 

offices of these two banks and would assure a more aggressive competitor in 

the future than Multnomah Bank.

The two large statewide branch banks to which reference has been made 

hold 78.0 percent of all commercial bank deposits in the State of Oregon and a 

comparable percentage of commercial bank deposits in the Oregon portion of 

the Portland SMSA. Within that three-county area, First State accounts for 

approximately 2.8 percent of total commercial bank deposits, and Multnomah 

Bank for about 1.0 percent. First State ranks fifth in area deposits, while 

Multnomah Bank is one of the smaller banks operating in the three-county 

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. Both banks have 

adequate financial resources, as would the resulting bank. After merger, the 

resulting bank should have better earnings than the present combined earnings 

of the two banks as low-yielding assets of Multnomah Bank are reinvested. 

Management is considered capable and experienced. The future prospects of 

each bank, and of the resulting bank, are considered satisfactory.

Convenience and Needs of the Community to Be Served. If the proposed 

merger is approved, customers of Multnomah Bank would gain the convenience 

of more liberal lending terms on conventional home mortgages, FHA and VA 

mortgage services, a bank with the capacity to handle significantly larger loans, 

management policies which would free more funds for lending purposes, and 

personal trust services. The public, in areas served by Multnomah's four offices, 

would benefit from having an additional conveniently available alternative for 

all such services.

Based on the foregoing, the Board of Directors has concluded that approval 

of the application is warranted.

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BANK ABSORPTIONS APPROVED BY THE CORPORATION 93

Resources

fin

Banking Offices

Un

thousands

of dollars)

In

operation

To be

operated

The Nashville Bank and Trust Co.

Nashville, Tennessee 

(change title to Nashville 

City Bank and Trust Co.)

38,281 3 8

to merge with

Capital City Bank of Nashville, 

Tennessee

Nashville

19,485 5

Summary report by Attorney General, November 26, 1969 

The head offices of the merging banks are approximately one block apart. 

The branch offices of NB&T and Capital City are, however, widely separated. 

No branch of the former is located within the neighborhood service area of the 

latter.

Nevertheless, the close proximity of the head offices, where the bulk of the 

accounts of the participating banks are maintained, indicates that a sizeable 

quantum of competition exists between these institutions. This competition 

will be eliminated if this merger is approved.

Eight banks presently operate in metropolitan Nashville, as follows:

IPC Demand 

Deposits % of Nos. of

(000 Omitted) Service Area Offices

First American $179,382 42.2 22

Third National 158,881 37.1 16

Commerce Union 60,310 14.1 16

NB&T 13,337 3.1 3

Capital City 7,667 1.8 5

Goodlettsville 3,406 .8 1

Citizens 1,977 .5 1

White Creek 1,820 .4 1

NB&T holds approximately 2.3 percent of total deposits in all commercial 

banks located in Metropolitan Nashville, and Capital City holds 1.5 percent. 

For more than 20 years the 3 largest banks in this area have held in excess of 

90 percent of such deposits. The proposed merger adds little, if anything, to 

this extreme concentration. A somewhat larger bank, with increased capital 

and deposits, will replace two small units. This may enable the resulting bank 

to compete more effectively with the "big three."

In light of the relatively small size and market shares of the banks proposing 

to merge, we conclude that the proposed merger is not likely to have a significantly adverse effect on competition.

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

Basis for Corporation approval, October 7, 1970

The Nashville Bank and Trust Co., Nashville, Tennessee ("Nashville Bank"), 

an insured nonmember bank with total resources of $38,281,000, 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 Capital City 

Bank of Nashville, Tennessee, Nashville, Tennessee ("Capital City"), an insured 

nonmember bank with total resources of $19,485,000, under Nashville Bank's 

charter and with the title "Nashville City Bank and Trust Co." and to establish 

five existing offices of Capital City as branches of the resulting bank. Approval 

is also requested for the retirement of the 4 percent convertible preferred stock 

to be issued in connection with this merger.

Competition. Nashville Bank commenced operations in December 1968 

with three offices, $33 million in deposits, and a management team spun off 

from Third National Bank in Nashville. This action followed a consent decree 

which terminated a lengthy antitrust attack on the 1964 merger of that bank 

with the earlier Nashville Bank and Trust Company.

In determining whether the merger now proposed would itself violate 

Section 7 of the Clayton Act, as required under the Bank Merger Act of 1966, 

Davidson County (estimated population 470,000) may be considered the 

largest geographic area within which a merger of Nashville Bank and Capital 

City would have competitive significance. Both banks derive the bulk of their 

banking business from Davidson County, it is the area of reasonable banking 

choice for most customers of the two banks, and it is the geographic area to 

which the two banks and their competitors are limited by Tennessee law in the 

establishment of offices, either by merger or by de novo branching.

Eight commercial banks are headquartered in Davidson County. Nashville 

Bank is the fourth largest of these in terms of deposits, and Capital City is fifth 

largest. Both are substantially smaller than the three lead banks in the county, 

as indicated in the following table:1

Total

Deposits % Offices in

(000 Omitted) Total County

First American National Bank

of Nashville $522,293 38.8 22

Third National Bank in Nashville 462,705 34.1 16

Commerce Union Bank 295,522 21.8 16

Nashville Bank 33,603 2.5 3

Capital City 19,890 1.5 5

The Bank of Gbodlettsville 12,228 0.9 1

Citizens Savings Bank 5,373 0.4 1

Whites Creek Bank & Trust Company 5,132 0.4 1

$1,356,764 100.0 65

1 Figures as of December 31, 1969. If IPC deposits under $100,000 were separately

tabulated in an effort to exclude large-account commercial business, for which Nashville

Bank and Capital City do not presently compete, their respective market shares would not

be substantially different from the percentages listed in the total deposit table.

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The relative shares held by each bank of all commercial bank assets, I PC 

demand deposits, and loans in Davidson County are not materially different. 

Except for The Bank of Goodlettsville and Whites Creek Bank and Trust 

Company, which are located in suburban areas, all the banks listed are headquartered in the city of Nashville.

Capital city's main office is in the same block as Nashville Bank's main 

office, and each holds more than two-thirds of its deposits at that office. 

Within the limitations of size and office locations, each bank competes with 

the other for most types of commercial bank business. None of their branch 

offices are in close proximity, but de novo branching activity, which is particularly likely on the part of Nashville Bank, could bring each into increasing 

competition with the other in the future. Their merger would thus eliminate 

both existing and potential competition between them.

Because of the small percentage of commercial bank business held by each 

of the two banks in the relevant market, however, the Board cannot find, 

under current judicial precedents, that the effect of the proposed merger "may 

be substantially to lessen competition" in commercial banking in Davidson 

County within the meaning of Section 7 of the Clayton Act, as incorporated 

into the relevant provisions of the Bank Merger Act of 1966. While commercial 

banking in Davidson County is highly concentrated in three large banks, the 

merger proposed would not add to the share of the banking market held by 

any of them. Cf. United States v. Philadelphia National Bank, 374 U.S. 321 

(1963); United States v. Third National Bank in Nashville, 390 U.S. 171 (1968) 

United States v. Phillipsburg National Bank,_\J.S__(decided June 29, 1970).

Even though the proposed merger does not appear to violate Section 7 of 

the Clayton Act, the Board does find the net effect of the proposal to be 

anticompetitive: at least some competition between the two banks, both existing and potential, would be eliminated; the already small number of commercial bank options available to the 470,000 residents of Davidson County 

for their retail banking needs would be reduced by one, while only a small 

number of commercial customers would benefit from the resulting bank's increased ability to compete with the three dominant banks; and finally, an 

independent bank would be removed from a concentrated banking market, a 

bank which could serve as a vehicle for the entry of significant new competition into that market in the course of Tennessee's growing multibank holding 

company movement.

Convenience and Needs of the Community to Be Served. The proposed 

merger would serve the convenience of at least some customers of the two 

banks. Eight offices, rather than only Capital City's five or Nashville Bank's 

three, would be available to those retail customers who do not wish to bank at 

one of the three large banks. Special checking accounts, not now offered by 

Capital City, would become available to Capital City customers, and more 

extensive installment lending could be expected. A fully staffed credit department would also be available. Nashville Bank's normal lending limits would 

increase by approximately 50 percent, thereby adding a fourth alternative to 

the local banking scene for those customers with financing requirements between $650,000 and $1,000,000. Construction loans, mortgage warehousing 

operations, certain types of specialized loan services, and trust services might 

become more feasible in time with a larger bank, but there is no commitment 

to the introduction of any of these services at any specified date in the future.

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96 FEDERAL DEPOSIT INSURANCE CORPORATION

Since these services are conveniently available at least at the three large banks 

in Davidson County, and since there is no showing that any essential banking 

need is going unmet in the county at the present time, the Board believes that 

in this respect the likely benefits of the merger to the public at large in 

Davidson County would be modest. The merger's effect, however, in resolving 

the problems of Capital City discussed below should result in benefits generally 

to the consumers of banking services in the county.

Financial and Managerial Resources; Future Prospects. Nashville Bank began 

operations at year-end 1968 with a capable and well-rounded management 

team, in accordance with the terms of the consent decree with Third National 

Bank in Nashville. The bank's early deposit runoff has been reversed, and its 

asset condition and overall financial position are satisfactory. With the addition 

of Capital City's branch system and deposit base, its prospects for the future 

are brighter than they would be without the acquisition. Capital City, by 

contrast, has both managerial and financial problems. Opened in 1960, the 

bank has not been able to attract a strong management team and has been 

operating without a full-time chief executive officer since May. Recent supervisory concern has also centered on Capital City's lending policies and its internal 

routine and controls. These handicaps, together with its lack of management 

depth, raise serious questions about its ability to compete effectively in the 

Nashville market, at least in the near term. Merger with Nashville Bank should 

solve these Capital City problems. Since the number of less anticompetitive 

merger alternatives and holding company options available to Capital City that 

would also solve these problems are extremely limited, these banking factors 

lend significant weight to approval of the present application. In appropriate 

cases, moreover, it would appear that such factors may still be given decisive 

weight by a banking agency under the Bank Merger Act of 1966.

In light of all the circumstances, the Board of Directors has concluded that 

approval of the application is warranted.

Resources

fin

Banking Offices

U n

thousands

of dollars)

In

operation

T o be

operated

Peoples Bank and Trust Co.

Berea, Kentucky 

(in organization)

650 — 1

to acquire certain assets and assume

the deposit liabilities of

Berea Bank and Trust Company 5,411 1

Berea

Approved under emergency provisions. No report requested from the 

Attorney General.

Basis for Corporation approval, October 15, 1970 

Pursuant to Sections 5 and 18(c) of the Federal Deposit Insurance Act, 

applications have been made by Peoples Bank and Trust Co. for Federal deposit insurance and for consent to purchase certain assets and assume the

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BANK ABSORPTIONS APPROVED BY THE CORPORATION 97

deposit liabilities of Berea Bank and Trust Company, Berea, Kentucky, an 

insured nonmember bank which has been closed and is in the hands of the 

Commissioner of Banking of the Commonwealth of Kentucky.

The Commissioner of Banking took possession of the closed bank at the 

opening of business October 8, 1970, for "temporary custodianship." After 

close of business on October 8, 1970, it was determined that rehabilitation was 

impossible, and various groups subsequently submitted bids. The successful 

bidder was a group headed by Mr. Garvice Kincaid.

Berea has a population of about 4,302, with a trade area population estimated at 15,000. One other banking institution, The Berea National Bank, is 

headquartered in Berea. It is expected that Peoples Bank and Trust Co. will 

successfully replace Berea Bank and Trust Company.

Based on the above information, the Board of Directors has concluded that 

approval of the applications for Federal deposit insurance and for consent to 

the assumption transaction is warranted.

Resources

(in

thousands

of dollars)

Banking Offices

In

operation

To be

operated

The Bank of Galax 

Galax, Virginia

(in organization; change title to

The Merchants and Farmers Bank of 

Galax)

50 3

to merge with

The Merchants and Farmers Bank 

of Galax

Galax

17,458

3

Summary report by Attorney General, August 13, 1970 

The proposed merger is part of a plan under which Virginia Commonwealth 

Bankshares, Inc., a registered bank holding company, proposes to acquire all of 

the voting shares of Bank of Galax (organizing), a non operating institution and 

as a contemporaneous transaction, to effect the merger of Merchants and 

Farmers Bank of Galax and Bank of Galax (organizing). The effect of these 

transactions will be to transfer control of an existing bank to a non operating 

institution; as such, and without regard to acquisition of the surviving bank by 

Virginia Commonwealth Bankshares, Inc., the proposed merger would have no 

effect on competition.

Basis for Corporation approval, October 23, 1970

Pursuant to Sections 5 and 18(c) and the other provisions of the Federal 

Deposit Insurance Act, applications have been filed for Federal deposit insurance for The Bank of Galax, Galax, Virginia ("BOG"), a proposed new bank in 

organization, and for consent to its merger with The Merchants and Farmers

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98 FEDERAL DEPOSIT INSURANCE CORPORATION

Bank of Galax, Galax, Virginia ("M&F Bank"), total resources $17,458,000, 

under BOG's charter and with M&F Bank's title. The resulting bank will operate from the present main office and two branches of M&F Bank.

The new bank formation and merger are designed solely as a vehicle for 

Virginia Commonwealth Bankshares, Inc., Richmond, Virginia, a registered 

bank holding company, to acquire controlling ownership in M&F Bank. The 

holding company has filed the appropriate application with the Board of 

Governors of the Federal Reserve System for consent to the acquisition of 100 

percent of the voting shares of the successor bank to the merger. BOG will not 

be in operation as a commercial bank prior to the merger, following which it 

will operate the same banking business at the same locations as M&F Bank, and 

with the same executive management. The proposal will not, of itself, change 

the banking services which M&F Bank has provided usefully and conveniently 

to the Galax community for several years. Within the city of Galax, Virginia, 

where the main office and two branches are located, there is the main office 

and one branch of another bank. All factors required to be considered relative 

to each application are favorably resolved.

On the basis of the above information, the Board of Directors has concluded 

that approval of the applications is warranted.

Resources

(in

thousands

of dollars)

Banking Offices

In

operation

To be

operated

Hudson City Savings Bank

Jersey City, New Jersey

195,771 6 7

to merge with

The Fifth Ward Savings Bank

Jersey City

15,185 1

Summary report by Attorney General, September 18, 1970 

Hudson Bank operates three offices in Jersey City. Its closest office to Fifth 

Ward is about one mile away. It seems clear that direct competition exists 

between the merging banks; the application indicates that an interest rate 

differential has caused some of Fifth Ward's customers to establish banking 

relationships with Hudson Bank. Competition existing between the merging 

banks would, of course, be eliminated by the proposed merger.

Three mutual savings banks and two savings and loan associations operate a 

total of 15 banking offices in Jersey City. The three offices of Hudson Bank 

hold about 21 per cent of total time and savings deposits housed in these 15 

offices, while Fifth Ward's sole office holds about 3.3 per cent. If time and 

savings deposits held by commercial banking offices located in Jersey City are 

considered, the shares of Hudson Bank and Fifth Ward would decrease to 

about 15 per cent and 2.4 per cent, respectively.

These percentages may overstate the effects of the proposed merger, as 

savings institutions in nearby metropolitan areas of New Jersey, as well as those

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BANK ABSORPTIONS APPROVED BY THE CORPORATION 99

in New York City, probably compete to some extent for savings deposits in 

Jersey City.

In view of the elimination of some direct competition between the merging 

banks, and the resulting increase in concentration among savings institutions in 

Jersey City, we conclude that the proposed merger would have an adverse 

effect on competition.

Basis for Corporation approval, October 30, 1970

Hudson City Savings Bank, Jersey City, New Jersey ("Hudson"), an insured 

mutual savings bank with total deposits of $175,691,000, has applied, pursuant 

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

the Corporation's prior approval to merge with The Fifth Ward Savings Bank, 

Jersey City, New Jersey ("Fifth Ward"), which has total deposits of 

$13,577,000. The banks would merge under the charter and title of Hudson, 

and the sole office of Fifth Ward would be established as a branch of Hudson, 

increasing the number of its offices to seven.

Competition. Hudson's main office and two of its five branches are in Jersey 

City, Hudson County. Its other branches are located in North Bergen, Oradell, 

and Waldick, the last two being recently opened offices in Bergen County. The 

one office of Fifth Ward is located in the easternmost section of Jersey City. 

There are three mutual savings banks and two savings and loan associations 

headquartered in Jersey City, but significant competition is also offered by 

mutual thrift institutions located in Manhattan, whose offices are conveniently 

available to the large number of Jersey City residents who commute to work in 

New York City.

Hudson's closest office to Fifth Ward is located approximately 1 mile distant. The two banks have a number of common customers, but the volume of 

business involved is not substantial. Fifth Ward receives its primary competition from the main office of Provident Savings Bank, the largest mutual thrift 

institution in Jersey City, only 0.7 mile distant, and from a branch of a savings 

and loan association, both of which pay 5 percent interest on passbook savings 

accounts, compared with Fifth Ward's 41/2 percent. As its passbook rate 

indicates, Fifth Ward is not a significant competitor for thrift institution deposits in any relevant geographic market. It has lost deposits steadily over the 

past 10 years because of noncompetitive rates and the poor location of its main 

office. Moreover, it has made few mortgage loans in recent years. For these 

reasons, the Corporation concludes that the proposed merger would not eliminate significant existing competition between the two institutions.

Legally, Hudson and Fifth Ward could branch de novo anywhere in New 

Jersey's First Banking District, subject to home office protection. The area 

immediately surrounding Fifth Ward, however, has been razed as part of a 

long-term urban renewal program which is not expected to be completed for 

many years. Because of this, it is unlikely that any savings bank or savings and 

loan association headquartered in Jersey City would seek to establish a branch 

in Fifth Ward's area in the foreseeable future. The management of Fifth Ward, 

in turn, has neither the inclination nor the experience to open de novo

branches elsewhere. The proposed merger, therefore, is unlikely to eliminate 

significant potential competition between Hudson and Fifth Ward.

Hudson is the second largest of the five mutual thrift institutions headquartered in Jersey City, holding approximately 24 percent of the total time

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100 FEDERAL DEPOSIT INSURANCE CORPORATION

and savings deposits held at their offices in Jersey City, while Fifth Ward is the 

smallest, with approximately 3 percent of such deposits. These figures, however, substantially overstate the likely competitive impact of the proposed 

merger, because of the convenient availability of mutual thrift institutions in 

Manhattan to the large number of Jersey City residents who commute to work 

in Manhattan. The inclusion in the market computation above merely of the 

deposits in Manhattan offices of New York City mutual savings banks would 

reduce the percentage held by Hudson and Fifth Ward to 0.76 percent and 

0.09 percent, respectively.1

While Fifth Ward may have a limited number of less anticompetitive merger 

alternatives available to it from among the seven mutual savings banks in the 

First Banking District not headquartered in Jersey City, none of them has 

expressed interest in acquiring Fifth Ward or its problems. While not headquartered in Jersey City, four of the seven, moreover, are significantly larger 

than Hudson, thereby raising other competitive problems that would have to 

be considered. For the reasons stated, 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 these factors 

is favorable with respect to Hudson and is so projected for the resulting bank.

Fifth Ward's prospects as an independent institution could hardly be less 

promising. While the net decline in its deposits over the past 10 years may be 

due in part to physical developments around its main and only office, a greater 

share of the responsibility for Fifth Ward's present condition must be placed 

on the bank's management. Payment of less than competitive dividend rates 

has accelerated the decline in deposits, while the necessity of meeting consequent withdrawal demands with liquid assets has acted to depress even 

further a poor earnings performance. Neither the relocation of the main office 

nor the establishment of de novo branches has been pursued. A part-time 

president is backed up by a superannuated operating officer without management depth or succession. The proposed merger should effectively resolve Fifth 

Ward's myriad problems with Hudson's aggressive and competent management 

and more secure financial condition.

Convenience and Needs of the Community to Be Served. Customers of Fifth 

Ward would benefit from the wider range of deposit accounts and the higher 

rates of return on them offered by Hudson. Thus, the rate on passbook savings 

accounts would be increased to a competitive 5 percent, rates on certificate 

accounts would be increased, a day-of-deposit-to-day-of-withdrawal account at 

4-3/4 percent per annum would be made available, and 6 percent 2-year certificates would be offered. In addition, a greater volume of mortgage lending 

and student loan activity could be expected, and Fifth Ward customers would 

be able to obtain checking account services along with the more traditional 

thrift institution services.

Iln view of the authority of New Jersey savings banks to offer limited checking

account services, it might be appropriate, even under applicable judicial precedents, to

include in the same computation time and savings deposits of less than $100,000 held by

commercial banks at offices located in the relevant market area. The inclusion of such

deposits would make the percentages of the total market held by Hudson and Fifth Ward

even smaller in both areas.

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BANK ABSORPTIONS APPROVED BY THE CORPORATION 101

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

To be

operated

United Penn Bank

Wilkes-Barre, Pennsylvania

193,499 11 12

to merge with

The Citizens National Bank 

of Tunkhannock

Tunkhannock

10,226 1

Summary report by Attorney General, July 28, 1970

Citizens Bank in Tunkhannock is approximately 30 miles up the North 

Branch of the Susquehanna River from United's home office in Wilkes-Barre. 

United's Dallas office is about 20 miles from Tunkhannock. Although no commercial banks operate offices between Dallas and Tunkhannock, the application indicates that the merging banks draw little banking business from one 

another's service area. It would appear that the proposed merger would eliminate no more than a limited amount of direct competition.

Six banks operate a total of eight banking offices in Wyoming County. 

Citizens Bank is one of two banks with offices in Tunkhannock. As of June 30, 

1968, Citizens Bank held the largest share, about 24 per cent, of commercial 

bank deposits in Wyoming County.

Under Pennsylvania law, United could be permitted to open de novo

branches in Wyoming County and in Tunkhannock. United is one of the largest 

banks legally capable of entering Wyoming County.

In view of recent industrial development, the Tunkhannock area should 

become increasingly attractive to banks in Wilkes-Barre, including United. It 

would appear that the proposed merger would eliminate some potential for 

increased competition.

Basis for Corporation approval, October 30, 1970

United Penn Bank, Wilkes-Barre, Pennsylvania ("United Penn"), an insured 

State nonmember bank with total deposits of $172,875,000, has applied, pursuant to Section 18(c) and other provisions of the Federal Deposit Insurance 

Act, for the Corporation's prior approval to merge with The Citizens National 

Bank of Tunkhannock, Tunkhannock, Pennsylvania ("Citizens"), which has 

total deposits of $9,197,000. The banks would merge under the charter and 

title of United Penn; and, as an incident to the merger, the only office of 

Citizens would become a branch of United Penn, increasing the number of its 

offices to 12.

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102 FEDERAL DEPOSIT INSURANCE CORPORATION

Competition. Applicant's main office and nine branches are in Wilkes-Barre 

and the Wyoming Valley area of Luzerne County, while one branch is located 

in Bloomsburg in Columbia County, 35 miles southwest of Wilkes-Barre. 

Citizens has only one office, located in Tunkhannock, the county seat of 

Wyoming County.

United Penn's closest office to Citizens is at Dallas, 21 miles south of 

Tunkhannock. There are no intervening commercial bank offices, but the area 

is sparsely populated. The two banks have only a few common customers, and 

neither is believed to draw significantly from the deposit and loan business 

originating in areas served by the other. The proposed merger, therefore, would 

not eliminate significant existing competition between the two banks.

The proposed merger would have its greatest impact in the area presently 

served by Citizens, which can be roughly defined as the area within a radius of 

13 miles of Tunkhannock (population 2,500). Within that area, five commercial banks operate six offices. Citizens, with $9.2 million in deposits holds 

28.4 percent of the total commercial bank deposits held by these offices, the 

largest share of the market. Its principal competitor, however, is The Wyoming 

National Bank of Wilkes-Barre, a $66 million institution with a branch in 

Tunkhannock holding 21.5 percent of the local deposit market. The entry of 

United Penn should stimulate competition with this institution in 

Tunkhannock and in the surrounding area generally.

Under Pennsylvania law, United Penn could branch de novo anywhere in 

Wyoming County (population 18,000), and Citizens could branch de novo

anywhere in Luzerne or Columbia counties, or in any other counties which 

adjoin their respective headquarters county. Because of its small size and the 

distances involved, however, Citizens is unlikely to open de novo branches in 

areas presently served by United Penn. While United Penn has the capacity and 

resources to open de novo branches in Wyoming County, this is unlikely to be 

attractive for several years in view of the limited population presently being 

served by each commercial bank office there and in view of the slow population growth which has accompanied the industrialization that has taken place 

in the county in recent years. Moreover, there are several sizeable banks headquartered in Wilkes-Barre and Scranton that also have the capacity and resources to enter Wyoming County de novo if the long-term future growth of 

the county warrants. United Penn, it should be noted, holds slightly less than 

10 percent of the total commercial bank deposits in the eight-county area 

within which it may branch or merge under State law. The proposed merger, 

accordingly, would not eliminate significant potential competition in Wyoming 

County and would not establish any adverse precedent for commercial bank 

competition in the future in the broader eight-county area within which United 

Penn can compete.

For the reasons stated, 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 these factors 

is favorable with respect to the merging banks and is so projected for the 

resulting bank.

Convenience and Needs of the Community to Be Served. Customers of 

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BANK ABSORPTIONS APPROVED BY THE CORPORATION 103

eluding FHA and VA mortgage loans), trust department services, and additional funds for housing construction that United Penn can offer. Local 

businesses would benefit from a legal lending limit 11 times larger than 

Citizens' present limit of $93,200, and from the availability of largedenomination certificates of deposit issued at the maximum rates of interest 

allowed by current regulations. Consummation of this proposed transaction 

would provide the public generally in the Tunkhannock area with a choice 

between two relatively large banks for most of these services, with the resulting 

benefits of a more vigorously competitive banking structure.

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

To be

operated

State Bank of Greenleaf

Greenleaf, Wisconsin 

(change title to GreenleafWayside Bank)

2,078 1 1

to merge with

Wayside State Bank 1,646 1

Wayside

Summary report by Attorney General, July 29, 1970

Greenleaf (population 350) is situated about 10 miles northwest of Wayside 

(population 200) in the southern portion of Brown County, Wisconsin. Brown 

County, located about 80 miles north of Milwaukee in the eastern part of the 

state, is largely agricultural in character, especially in the area served by the 

merging banks. As of June 30, 1968, Brown County was served by 16 commercial banks with 21 banking offices. The merging banks are among the 

smallest in the county.

The merging banks are located 10 miles from each other, with no other 

banks in the intervening area. It would appear that some competition would 

exist between the merging banks which will be eliminated by this merger.

Basis for Corporation approval, October 30, 1970

State Bank of Greenleaf, Greenleaf, Wisconsin ("Greenleaf Bank"), an insured State nonmember bank with total deposits of $1.9 million, has applied, 

pursuant to Section 18(c) of the Federal Deposit Insurance Act, for the Corporation's prior consent to merge with the Wayside State Bank, Wayside, 

Wisconsin ("Wayside Bank"), an insured State nonmember bank with total 

deposits of $1.5 million. The merger would be effected under the Greenleaf 

Bank's charter and with the title "Greenleaf-Wayside Bank." Upon consummation of this proposed transaction, Wayside Bank would cease to operate. The 

State Attorney General has ruled that under Wisconsin law a bank may not file 

an application for permission to establish a branch unless the community in 

which the branch is to be located is "bankless." If the proposed merger is 

consummated, Greenleaf-Wayside Bank intends immediately to file the 

necessary applications for permission to establish a branch in Wayside.

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Competition. Greenleaf Bank's sole office, in Greenleaf (population 350), is

9 miles from the one office of Wayside Bank, in Wayside (population 200). 

Their service areas overlap slightly, with no banks intervening, but there are 

few common customers. The same individual presently owns stock control and 

serves as executive officer of both banks. Neither bank operates a trust department. There is, in short, little direct competition between the two banks, each 

serving primarily its own agricultural community and surrounding areas.

There are nine other commercial banks within 15 miles of one or the other 

bank which may be regarded as competitive, and Greenleaf Bank and Wayside 

Bank are each smaller than any of them. The resulting bank would have total 

deposits of $3.3 million and would be the eighth largest of the then remaining

10 banks in the competitive area. The other banks have IPC deposits ranging 

from $2.0 million to $16.9 million. The proposed merger, accordingly, would 

have no adverse effect on competition.

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 manner be in restraint of trade.

Financial and Managerial Resources; Future Prospects. These are favorable 

with respect to the merging banks and are so projected for the resulting bank.

Convenience and Needs of the Community to Be Served. The Greenleaf 

Bank has experienced heavy loan demands from its agricultural customers, 

many of whom now require loans of larger amounts than the bank's $25,000 

lending limit. While the Greenleaf Bank has been able to arrange participations 

with other banks, most often Wayside Bank, some increased convenience to 

customers of both banks may be expected in the ability of the resulting bank 

to accommodate directly loan requirements of up to $50,000. Temporarily at 

least, customers of Wayside Bank may be inconvenienced by the lack of a local 

banking facility, but this situation would be expected to last only a short 

period of time. Consequently, the convenience and needs of both service areas 

should continue to be satisfied.

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

To be

operated

The Intermediate Bank 

and Trust Company

New Orleans, Louisiana 

(in organization; change title to 

The International City Bank 

and Trust Company)

100 5

to merge with

The International City Bank 

and Trust Company

New Orleans

112,380 5

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BANK ABSORPTIONS APPROVED BY THE CORPORATION 105

Summary report by Attorney General, September 18, 1970

The proposed merger is part of a transaction which will result in International City Bank and Trust Company becoming a wholly-owned subsidiary 

of a one-bank holding company. Thus, this merger is merely part of a corporate 

reorganization and as such will have no effect on competition.

Basis for Corporation approval, November 6, 1970

Pursuant to Sections 5 and 18(c) and the other provisions of the Federal 

Deposit Insurance Act, applications have been filed for Federal deposit insurance for The Intermediate Bank and Trust Company, New Orleans, 

Louisiana ("New Bank"), a proposed new bank in organization, and for consent to its merger with The International City Bank and Trust Company, New 

Orleans, Louisiana ("Old Bank"), total resources $112,380,000, under New 

Bank's charter and with Old Bank's title. The resulting bank will operate from 

the present main office and four branches of Old Bank.

The new bank formation and merger are designed solely as a vehicle for The 

ICB Corporation, New Orleans, Louisiana, a newly formed one-bank holding 

company, to acquire controlling ownership in Old Bank. New Bank will not be 

in operation as a commercial bank prior to the merger, following which it will 

operate the same banking business at the same locations as Old Bank, and with 

the same executive management. The proposal will not, of itself, change the 

banking services which Old Bank has provided usefully and conveniently to its 

trade area since its organization, or have any effect on competition. All factors 

required to be considered relative to each application are favorably regarded.

On the basis of the above information, the Board of Directors has concluded 

that approval of the applications is warranted.

Resources

I i n

Banking Offices

Viii

thousands

of dollars)

In

operation

To be

operated

Albany Savings Bank

Albany, New York

360,948 5 6

to merge with

Johnstown Savings and 

Loan Association

Johnstown

5,021 1

Summary report by Attorney General, July 29, 1970 

ASB's nearest office to Johnstown S&L is in Colonie, 43 miles southeast of 

Johnstown. Numerous savings banks, commercial banks, and savings and loan 

associations intervene.

ASB derives $2.8 million of deposits and $5.2 million of loans from 

Johnstown S&L's service areas. Johnstown S&L derives $321,885 of deposits 

and $706,562 of loans from ASB's service areas. Thus, if the proposed merger 

is approved, some existing competition for loans and deposits will be eliminated. However, the increase in ASB's shares of Fourth Banking District deDigitized for FRASER 

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106 FEDERAL DEPOSIT INSURANCE CORPORATION

posits and loans willYiot be substantial.

Under existing New York law, savings banks are not permitted to branch de

novo outside of their home-office counties. ASB is not, therefore, a potential 

de novo entrant into Fulton County. Moreover, Johnstown S&L is the smallest 

thrift institution and mortgage lender in Fulton County. Thus, the proposed 

acquisition of Johnstown S&L would provide ASB with a means of entry into 

Fulton County for mortgage lending competition therein.

Basis for Corporation approval, November 6, 1970

Albany Savings Bank, Albany, New York ("ASB"), an insured mutual savings bank with total resources of $360,948,000, 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 Johnstown Savings and Loan 

Association, Johnstown, New York ("S&L"), a federally insured savings and 

loan association with total resources of $5,021,000, under ASB's charter and 

title and, incident thereto, to establish a branch in S&L's sole office.

Competition. ASB operates five offices in New York's Fourth Banking District: two in the city of Albany, one in the town of Colonie, an Albany suburb, 

and two in Warren County acquired by a recent merger with Glens Falls 

Savings and Loan Association. Under New York law, ASB may open de novo

branches only in Albany County, but can acquire branches by merger anywhere in the State's Fourth Banking District. In that District, ASB is the largest 

mutual institution, holding 17.4 percent of the deposits and 9.8 percent of the 

offices of all mutual savings banks and savings and loan associations located 

therein.

S&L operates its one and only office in the city of Johnstown, Fulton 

County, some 43 miles northwest of ASB's nearest office. Its primary service 

area has a population of nearly 75,000, including the 29,000 residents of 

Johnstown and the neighboring community of Gloversville. This is a highly 

industralized area which produces a major share of the gloves manufactured in 

the United States. Since April 1, S&L has paid interest on its withdrawable 

shares at the rate of 4% percent per annum, as compared with the 5 percent 

paid by ASB on its regular savings accounts. Under State law, S&L could open 

a de novo branch within 50 miles of its main office, including those portions of 

Albany County not subject to "home office protection." S&L is by far the 

smaller of the two mutual institutions located in Fulton County and holds only 

0.2 percent of thrift institution deposits in the Fourth Banking District.

Because of the distance between S&L and the various offices of ASB, and 

because S&L has not been paying a competitive dividend on its savings accounts, there is little direct competition between the two institutions at the 

present time. The secondary areas served by ASB and S&L overlap to some 

extent in Montgomery County, and ASB has developed about $2.8 million in 

savings deposits from Fulton County through vigorous bank-by-mail promotions emphasizing the higher dividend rates it has been paying.

Neither has more than a nominal amount of mortgage business from areas 

served by the other. While some deposit competition between ASB and S&L 

will be eliminated by this proposal, that competition is attributable largely to 

the rate differential and cannot be considered significant in relation to the total 

thrift deposits originating from Fulton County residents. Furthermore, there is 

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cause of the de novo branching restrictions on ASB and because of S&L's small 

size and the distances involved.

Even a slight addition by merger to ASB's dominant size among mutual 

institutions in the Fourth Banking District requires careful regulatory scrutiny 

to the end that effective competition by other mutual institutions in the District will not be foreclosed in the future. The proposed merger, however, 

involves the smaller of two savings and loan associations in Fulton County, 

significant public benefits, and the likelihood of increased competition in the 

future for the deposits of Fulton County residents in S&L's trade area.

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. Financial and managerial resources of both institutions are considered satisfactory and should 

continue to be so in the resulting bank. While S&L has not had impressive 

earnings or significant growth in deposit totals, ASB has been a highly successful mutual savings bank for many years, and the future prospects of the resulting bank should be good.

Convenience and Needs of the Community to Be Served. Because of the 

disparity in size and services of the two institutions, the proposed merger 

would have little, if any, effect in ASB's present service areas. The greatest 

impact of the proposed merger would be in S&L's service area, where the 

resulting bank will offer a 5 percent dividend rate on regular savings accounts 

and the following services not presently available at S&L: savings bank life 

insurance, "on-line" service at tellers' windows, day-of-deposit-to-dayof-withdrawal accounts at a 5 percent rate compounded daily, FHA and VA 

loan services, and more liberal mortgage lending policies backed up with the 

funds necessary to provide significant new competition in S&L's area for the 

financing of homes, apartments, and commercial properties.

Based on 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

To be

operated

The Warwick Savings Bank

Warwick, New York

25,364 1 3

to merge with

Orange County Savings 

and Loan Association

Monroe

5,966 2

Summary report by Attorney General, June 14, 1970 

The closest offices of the merging institutions are about 15 miles apart. No 

offices of other savings institutions, but numerous offices of commercial banks

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108 FEDERAL DEPOSIT INSURANCE CORPORATION

lie in the intervening area. According to the application, the ..Mimary service 

areas of the merging institutions are adjacent to one another, but do not 

overlap. However, the merging institutions do some deposit and loan business 

in areas served by each other. Existing competition between them will, of 

course, be eliminated by the proposed merger.

Warwick Savings is the third largest of five mutual savings banks operating in 

Orange County, and holds about 7.5 per cent of the total time and savings 

deposits in savings banks and savings and loan associations in the County. 

Orange Savings is the seventh largest of nine savings and loan associations in the 

county and holds about 2 per cent of such deposits. Consideration of the time 

and savings deposits in commercial banks with offices in Orange County would 

reduce these percentages to about 4.7 per cent and 1.3 percent, respectively.

We do not believe that the proposed merger would have a significantly 

adverse effect on competition.

Basis for Corporation approval, November 6, 1970

The Warwick Savings Bank, Warwick, New York ("WSB"), an insured 

mutual savings bank with total deposits of $23,546,000, has applied, pursuant 

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

the Corporation's prior approval to merge with Orange County Savings and 

Loan Association, Monroe, New York ("S&L"), which has total deposits of 

$5,503,000. The participants would merge under the charter and title of WSB; 

and, as an incident to the merger, the two offices of S&L would become 

branches of WSB, increasing the number of its offices to three.

Competition. WSB's only office is in the village and the town of Warwick, 

which are located in the south-central portion of Orange County, a part of New 

York's Third Banking District. Under New York law, WSB may open one de

novo branch, which must be located in Orange County, but it can also acquire 

branches by merging with other mutual thrift institutions anywhere in the 

District. S&L operates two offices in central Orange County, 15 and 20 miles 

northeast of Warwick, and has one remaining branch privilege which it can use 

within 50 miles of its main office.

While there is some overlap of the areas served by the two institutions, and a 

small amount of deposit and loan business which each derives from the other's 

service area, the degree of competition which would be eliminated by their 

merger does not appear significant in view of the small size of S&L relative to 

other thrift institutions in Orange County. The loss of potential competition 

between the two institutions also appears insignificant in view of the fact that 

each has only one unused de novo branch privilege and in view of the large 

number of thrift institutions remaining in the county that could branch into 

southern Orange County as the area's anticipated growth in population and 

income takes place.

Neither in Orange County nor in the Third Banking District would there be 

a significant increase in the concentration of mutual thrift institution assets. In 

the District, WSB has less than 1 percent of all mutual thrift institution deposits and offices, while S&L has only 0.2 percent of the deposits and 1.8 

percent of the offices of such institutions. In Orange County, WSB has 7.7 

percent of the deposits and 6.3 percent of the offices of all mutuals, while S&L 

has only 1.8 percent of such deposits and 12.5 percent of such offices. In the 

local trade area of the two institutions, WSB holds 9.5 percent and S&L 2.5

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BANK ABSORPTIONS APPROVED BY THE CORPORATION 109

percent of all mutual institution deposits. In all areas, numerous thrift institution alternatives would remain after the merger, there being four other savings 

banks and eight other savings and loan associations in Orange County.

For the reasons stated, 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. With S&L's increase 

last January in its rate on withdrawable shares from 4% percent to 5 percent, its future prospects now seem favorable, and each of the statutory factors 

referred to may now be considered satisfactory for each of the merging institutions and for the resulting bank.

Convenience and Needs of the Community to Be Served. While customers 

and potential customers of S&L would lose the benefits of higher interest 

payments on Christmas Club accounts and of lower down payment requirements on conventional home mortgages, they would gain the advantages of a 

stronger institution better able than S&L alone to meet the thrift institution 

needs of an expanding local economy. They would, for example, benefit from 

the convenient availability of the following additional services offered by WSB 

but not available at S&L: FHA and VA mortgage loans, day-of-deposit-to-dayof-withdrawal accounts, home improvement loans, student loans, savings bank 

life insurance, "on-line" depositor service, commercial mortgage loans, higher 

lending limits, and a greater supply of lendable funds.

Based on the foregoing, the Board of Directors has concluded that approval 

of the application is warranted.

Resources

fin

Banking Offices

im

thousands

of dollars)

In

operation

To be

operated

The Hongkong and Shanghai Banking 

Corporation of California

San Francisco, California

91,226 4 9

to acquire the assets and assume

the deposit liabilities o f

Republic National Bank and 

Trust Company 

Beverly Hills

25,110 5

Summary report by Attorney General, October 1, 1970 

The closest offices of Hongkong and Republic are about two miles apart in 

Los Angeles. Moreover, all of Republic's offices are within Los Angeles 

County. Thus, it would appear that some direct competition may be eliminated 

by the proposed transaction.

As of June 29, 1968, Republic and Hongkong together held less than 1 per 

cent of the total deposits held by all commercial bank offices in Los Angeles 

County. Since each bank holds a minor share of total bank deposits in Los

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110 FEDERAL DEPOSIT INSURANCE CORPORATION

Angeles County, the proposed transaction will have little effect on commercial 

banking concentration in the county.

Basis for Corporation approval, November 10, 1970

The Hongkong and Shanghai Banking Corporation of California, San 

Francisco, California ("Applicant"), an insured State nonmember bank with 

total deposits of $72,034,000, has applied, pursuant to Section 18(c) and other 

provisions of the Federal Deposit Insurance Act, for the Corporation's prior 

approval to acquire the assets of and assume liability to pay deposits made in 

Republic National Bank and Trust Company, Beverly Hills, California 

("Republic"), which has total deposits of $21,112,000. The purchase and sale 

would be under the charter and title of Applicant; and, as an incident to the 

proposal, the five offices of Republic would become branches of Applicant, 

increasing the number of its offices to nine.

Competition. Applicant's main office and one of its three branches are 

located in San Francisco. It also operates a branch in Sacramento and one 400 

miles south, in the heart of the Los Angeles financial district; another branch in 

San Jose has been approved but is as yet unopened. Republic's main office is in 

Beverly Hills, and its other offices in Los Angeles, North Hollywood, Encino, 

and Carson are also part of the metropolitan Los Angeles banking market. 

Republic opened for business in 1964, merged with Silver Lake National Bank 

in 1968, and now holds about 2 percent of the total deposits held by all 

commercial banks in its combined service areas. In four of its service areas, it 

competes with several of the largest California banks.

The proposed merger would have competitive impact primarily in the metropolitan Los Angeles banking market, and more specifically in Republic's 

service areas. Applicant's present office in Los Angeles is about 2 miles from 

Republic's nearest office, but there are numerous intervening commercial bank 

offices in this densely populated area. Applicant's existing share of the multibillion dollar Los Angeles deposit market is nominal; each bank draws from a 

different geographic area within that market; and neither derives any significant business from the trade area of the other. Although each bank could 

legally branch de novo into areas served by the other, limited resources make 

de novo entry into the central business district unlikely for Republic, while 

there are already a large number of commercial bank offices in Republic's 

service area that would discourage de novo entry by Applicant. The acquisition 

of Republic, in fact, may serve to make Applicant a more significant competitive force within the greater Los Angeles banking market, where each bank 

today faces a sizeable number of larger competitors.

California's 10 largest banks control 84 percent of the State's total commercial bank deposits, with four of these accountable for nearly 70 percent of 

the total. If the proposed merger is approved, the resulting bank would hold 

only 0.3 percent of the State's total commercial bank deposits.

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. Each of these factors 

is favorable with respect to the merging banks and is so projected for the 

resulting bank.

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BANK ABSORPTIONS APPROVED BY THE CORPORATION 111

Convenience and Needs of the Community to Be Served. In the trade areas 

served by Republic, the proposed transaction would provide another convenient bank alternative for large loans and for international banking services. 

Present customers of Republic would also benefit by somewhat lower service 

charges on checking accounts and lower interest rates on commercial, installment, and real estate loans.

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

To be

operated

Flatbush Savings Bank

New York (Brooklyn), New York 

(change title to The Greater New 

York Savings Bank)

250,085 2 12

to merge with

The Greater New York Savings Bank 

New York (Brooklyn)

728,223 10

Summary report by Attorney General, August 19, 1970

Both of the merging banks operate offices in central Brooklyn. Their closest 

offices are less than two miles apart. According to the application, each bank 

draws substantial business from those areas primarily served by the other. The 

proposed merger would eliminate some direct competition between the banks 

for savings deposits.

Both banks also make substantial real estate loans in New York and indeed 

throughout the United States.

Fifteen savings banks operate over 60 offices in Brooklyn. Greater New 

York is the fifth largest Brooklyn savings bank; Flatbush is the fifteenth. The 

resulting bank would become the fourth largest of such institutions.

Greater New York holds about 6 per cent of total time and savings deposits 

in Brooklyn savings banks and savings and loan associations, while Flatbush 

holds about 2.5 per cent of such deposits. If time and savings deposits held by 

commercial banks in Brooklyn are included, these percentages will decrease 

slightly. The three leading savings institutions in Brooklyn share about 43 per 

cent of savings deposits therein.

It is unlikely that the proposed merger will significantly increase concentration among institutions making real estate loans in New York.

Basis for Corporation approval, November 10, 1970

Flatbush Savings Bank, New York (Brooklyn), New York ("Flatbush"), an 

insured mutual savings bank having total deposits of $233 million, 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 Greater 

New York Savings Bank, New York (Brooklyn), New York ("GNY"), an inDigitized for FRASER 

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112 FEDERAL DEPOSIT INSURANCE CORPORATION

sured mutual savings bank having total deposits of approximately $655 million, 

under the charter of Flatbush but with the title of GNY. Application also is 

made for consent to establish branches at the 10 locations where GNY presently does business. Request also is made, following the merger, to interchange the 

designation of the branch at 451 Fifth Avenue, Brooklyn, New York, and the 

main office at 1045 Flatbush Avenue, Brooklyn, New York.

Competition. GNY, the larger of the two banks, has 10 offices: seven in its 

headquarters borough, two recently established in Manhattan, and one recently 

established in Queens. In opening new offices in other boroughs of New York 

City, GNY has been taking advantage of relatively recent changes in State law 

and following a pattern established by other Brooklyn savings banks with one 

or more offices in stagnant or declining areas. GNY ranks fifth in asset size 

among the 16 savings banks headquartered in Brooklyn and 16th in asset size 

among the 45 savings banks headquartered in New York City. It has 6.2 percent of the assets of all mutual institutions headquartered in Brooklyn and 1.9 

percent of the assets of all mutual institutions headquartered in New York 

City.

Flatbush has two offices, both in the relatively stable central section of 

Brooklyn. It ranks 15th in asset size among the 16 savings banks headquartered 

in Brooklyn and 39th in asset size among the 45 savings banks headquartered 

in New York City. It has 2.1 percent of the assets of all mutual institutions 

headquartered in Brooklyn and 0.7 percent of the assets of all mutual institutions headquartered in New York City. The two banks would merge under 

Flatbush's charter in order to preserve its six unused branching privileges, one 

of which may be utilized in Nassau or in Westchester County.

Two of GNY's 10 offices are within 2 miles of a Flatbush office, and the 

two banks derive more than $35 million in deposits from residents of the 

overlapping areas served by offices of both banks. The neighborhoods involved 

are densely populated with numerous high-rise apartment buildings. Two other 

savings banks serve the same area, and several savings and loan associations are 

also nearby. The degree of competition which would be eliminated by the 

proposed merger of Flatbush and GNY does not, however, in terms of their 

respective shares of the mutual savings market in Brooklyn and New York City, 

appear so great as to require a denial of the application. In both areas, numerous thrift institutions, conveniently available to the people served by both 

banks, would remain. Other thrift institutions throughout New York City can 

also be reached quickly by public transportation.

The same considerations minimize the importance of the potential competition between Flatbush and GNY which would be eliminated by their merger. 

Forty-three savings banks and a greater number of savings and loan associations, with numerous unused branch privileges, would remain to insure 

vigorous competition for thrift institution deposits both in Brooklyn and 

throughout New York City.

The resulting bank would become the fourth largest of 15 savings banks 

headquartered in Brooklyn, holding 8.3 percent of the deposits of all mutuals 

headquartered there, and the 12th largest of 44 savings banks headquartered in 

New York City, holding 2.6 percent of the deposits of all mutuals headquartered in the city.

Under these circumstances, the Board of Directors is of the opinion that the 

proposed merger would not, in any section of the country, substantially lessen

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BANK ABSORPTIONS APPROVED BY THE CORPORATION 113

competition, tend to create a monopoly, or in any other manner be in restraint 

of trade.

Financial and Managerial Resources; Future Prospects. The financial condition of GNY is satisfactory, with good earnings and a surplus position which is 

above the statewide average. Flatbush has turned in a poor earnings performance in recent years as a result of past investment decisions. The bank has a 

heavy bond depreciation and an extremely low surplus position. Unlike most 

New York City-based savings banks, Flatbush is still unable to meet dividend 

costs and the mandatory transfer to surplus required by New York law, despite 

recent improvements in gross yields and net earnings. Its board of trustees is 

elderly, and its operating management unimaginative. Management succession 

is lacking. The future of Flatbush as an independent institution is obviously 

bleak, but under the leadership of GNY's management team, the future prospects of the resulting bank can be regarded as favorable.

Convenience and Needs of the Community to Be Served. Although both 

banks provide the basic savings bank services, Flatbush customers would gain 

some convenience in having available at offices of the resulting bank the 

following services which GNY offers but Flatbush does not: FHA loans, higher 

loan-value ratios and longer maturities on conventional and VA loans, 514 

percent certificates of deposit, "on-line" depositor facilities, home modernization loans, uninsured student loans, and somewhat more liberal methods of 

calculating interest. These services, however, are already conveniently available 

at other mutual institutions in Brooklyn and elsewhere in New York City, so 

that the increase in public convenience and needs that would occur because of 

the proposed merger must be considered only slight.

Because the proposed merger provides a not unreasonable solution to the 

various operating problems Flatbush faces, the Board of Directors has concluded that approval of the application is warranted.

Resources

(in

thousands

of dollars)

Banking Offices

In

operation

To be

operated

Branch Banking & Trust Company

Wilson, North Carolina

257,640 50 52

to merge with

Bank of Statesville 

Statesville

7,500 2

Summary report by Attorney General, September 18, 1970 

The head offices of Branch and Statesville Bank are 185 miles apart. The 

nearest office of Branch to Statesville Bank is located in Mocksville, approximately 21 miles away. According to the application, none of Branch's deposits 

or loans originate within the service area of Statesville Bank. Hence, it does not 

appear that there is any significant existing competition between the two banks

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114 FEDERAL DEPOSIT INSURANCE CORPORATION

which will be eliminated by the merger.

Because North Carolina permits statewide de novo branching, Branch is a 

potential entrant into the area now served by Statesville Bank. Indeed, as 

Branch is the sixth largest banking organization in North Carolina, and three of 

the five largest are already present in the market, Branch is one of the most 

likely entrants. The proposed merger will, therefore, eliminate Branch as a 

potential de novo entrant into Iredell County.

Basis for Corporation approval, November 25, 1970

Branch Banking & Trust Company, Wilson, North Carolina ("Branch 

B & T "), an insured State nonmember bank with total deposits of 

$220,278,000, has applied, pursuant to Section 18(c) and other provisions of 

the Federal Deposit Insurance Act, for the Corporation's prior approval to 

merge with Bank of Statesville, Statesville, North Carolina, an insured State 

nonmember bank which has total deposits of $6,361,000. The banks would 

merge under the charter and title of the applicant; and, as an incident to the 

merger, the two offices of Bank of Statesville would become branches of 

Branch B&T, increasing the number of its offices to 52.

Competition. Branch B&T presently operates its main office and three 

branches in Wilson, 44 additional branches throughout eastern North Carolina, 

and two branches, acquired by merger in 1967, in Mocksville in the Piedmont 

section of the State. Bank of Statesville's two offices are located in Statesville, 

Iredell County, also in the Piedmont section of the State.

The proposed merger would have its greatest impact in the Statesville service 

area, consisting of Statesville and its surrounding suburbs. Within that area, 

Bank of Statesville holds 8.3 percent of total deposits, the third largest share of 

four banks, and competes with offices of North Carolina National Bank, First 

Union National Bank, and The Northwestern Bank, respectively, the second, 

third, and fifth largest banks in the State. Branch B&T's closest offices to Bank 

of Statesville are in Mocksville, 21 miles to the northeast. There is no overlap in 

their service areas, and neither derives much business from the service area of 

the other. The proposed merger, therefore, would not eliminate significant 

existing competition between the two banks.

Legally, either bank participating in this proposal could branch de novo

anywhere in North Carolina. Bank of Statesville is unlikely to do so in view of 

its limited resources and present operating problems. Branch B&T has the 

capacity to branch into Iredell County and the Statesville area de novo, but its 

incentive to do so is limited by the already low population per commercial 

bank office and by the presence of much larger banks in entrenched positions. 

The proposed merger, therefore, is unlikely to eliminate any significant potential for increased competition between the banks in the future.

Applicant holds 3.3 percent of total commercial bank deposits in North 

Carolina, ranking sixth largest in the State. It is less than one-sixth the size of 

the largest bank in the State and about half the size of the fifth largest bank in 

the State. Acquisition of a weak bank in territory new to Branch B&T will not 

place it in any dominating position in the Statesville area, while its relative size 

and rank in the State will remain virtually unchanged. At the same time, the 

acquisition should enhance competition in the Statesville area with three much 

larger banks without creating any adverse precedent for the future commercial 

bank structure of North Carolina. Under these circumstances, the Board of

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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.

Convenience and Needs of the Community to Be Served. The public in the 

Statesville area would benefit from the availability of a fourth convenient 

alternative source for trust department services, expanded loan facilities, and 

specialized services.

Financial and Managerial Resources; Future Prospects. Each of these factors 

is favorable with respect to Branch B&T and is so projected for the resulting 

bank. Bank of Statesville lacks adequate internal controls, holds a deteriorating 

loan portfolio, and needs new management. These pervasive operating problems will be corrected by the proposed merger and lend significant weight to 

supervisory approval.

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

To be

operated

Industrial Valley Bank 

and Trust Company

Jenkintown, Pennsylvania

463,916 41 41

to acquire the assets and assume

the deposit liabilities o f

Penn Central Employes Mutual 

Savings Association 

Philadelphia

16,888 1

Summary report by Attorney General, October 21, 1970

Both institutions operate in Philadelphia, Pennsylvania, and there may have 

been some competition between them for the types of deposit and loan services offered by Penn Central Savings. The limited clientele of Penn Central 

Savings, however, coupled with the current financial difficulties of that institution, indicate that the amount of competition eliminated by this transaction 

would not be significant.

IVB is the eighth largest commercial bank operating in the Philadelphia area. 

There are also several mutual savings banks and savings and loan associations 

operating in the area. Two of these are also larger than IVB. In view of this 

fact, and in view of the relatively small size of Penn Central Savings, the 

increase in concentration caused by this transaction would not be substantial, 

and the effect on competition would not be adverse.

Basis for Corporation approval, November 25, 1970

Industrial Valley Bank and Trust Company, Jenkintown, Montgomery 

County, Pennsylvania ("IVB"), an insured State nonmember bank with deDigitized for FRASER 

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

posits of $395 million, 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 and assume the deposit liabilities of the Penn 

Central Employes Mutual Savings Association, Philadelphia, Pennsylvania 

("Penn Central Association"), which has deposits of $16 million, under the 

charter and title of IVB, and for consent to the retirement provisions of subordinated debentures.

Competition. IVB is the eighth largest commercial bank operating in the 

Philadelphia area. Four of its larger competitors each have deposits in excess of 

$1 billion. Penn Central Association is a savings association maintained by the 

Penn Central Transportation Company for the benefit of its employes and the 

employes of certain affiliated companies. Both deposit and loan payments are 

on a payroll deduction plan.

The proposed acquisition will have no competitive effect. Penn Central 

Association is an insolvent institution facing certain liquidation if the proposed 

acquisition is not consummated. It has never competed with IVB for the deposit or loan business of its members. IVB's relative standing in the Philadelphia area will not be affected by the acquisition of $16 million in deposits, 

nor will the acquisition significantly affect its competitive capabilities.

Financial and Managerial Resources; Future Prospects. The financial difficulties of the Penn Central Transportation Company prompted unusually 

heavy withdrawal demands on Penn Central Association in June and July 1970, 

amounting to more than $5 million. This caused the managers of the association to require 30 days' notice for all savings withdrawals and also to refuse 

new deposits, since its investment portfolio could not be liquidated except at 

sizeable losses which would have prevented its 23,000 members from receiving 

full payment of their accounts. On July 28, 1970, the U.S. District Court for 

the Eastern District of Pennsylvania enjoined the managers of Penn Central 

Association from paying out any moneys to depositors. The managers then 

began negotiations with various Philadelphia banks to purchase the assets and 

assume the liabilities of the association. Only its discussions with IVB were 

productive.

IVB's proposal, accepted by the managers and overwhelmingly approved by 

vote of the members of Penn Central Association, contemplates IVB's assumption of all the assets and liabilities of the association, including in the case of 

depositors:

a. The payment in cash of all deposit accounts of less than $10.

b. The conversion of all deposit accounts between $10 and $200 into an 

IVB passbook savings account for the full amount, to bear interest at the 

maximum rate allowed by Federal regulations.

c. The conversion of all deposit accounts over $200 into (1) an IVB passbook savings account for the first $200 at the maximum rate of interest 

so allowed, (2) a 6-year IVB certificate of deposit at 41/2 percent per 

annum for 60 percent of the balance over $200, and (3) a 10-year IVB 

subordinated debenture at 6 percent per annum for the remaining 40 

percent over $200.

IVB has the financial and managerial resources to effectuate the acquisition 

proposed and to enable all members of Penn Central Association to receive full 

payment of their deposit accounts in accordance with the plan. The future

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prosepcts of Penn Central Association, in the absence of this proposed transaction, appear to be nonexistent.

Convenience and Needs of the Community. This proposal will avoid any loss 

in savings to members of the Penn Central Association and, in that respect, will 

be in the public interest.

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

T o be

operated

The Farmers and Merchants 

Savings Bank

Lone Tree, Iowa

5,598 2 2

to merge with

The Lone Tree Savings Bank

Lone T ree

3,005 1

Summary report by Attorney General, August 31, 1970

The area surrounding Lone Tree (population 810) is mostly rural with the 

exception of the business districts of Lone Tree and Nichols. This area is 

primarily agricultural and residential with light industrial development anticipated. Lone Tree's prospects for growth are bettered due to its proximity to 

the industrial communities of Iowa City (15 miles) and Muscatine (22 miles) 

with populations of 40,000 and 20,000, respectively.

This merger involves the only two banks in the small community of Lone 

Tree. Eight other banks operate nine offices within a radius of 20 miles of 

Lone Tree; two of these banks have total deposits in excess of $30 million. The 

proposed merger would eliminate substantial direct competition between the 

merging banks and for this reason would have an adverse effect on competition 

in the Lone Tree area.

Basis for Corporation approval, December 1, 1970

The Farmers and Merchants Savings Bank, Lone Tree, Iowa ("Farmers & 

Merchants"), an insured State nonmember bank with total deposits of 

$5,142,700, has applied, pursuant to Section 18(c) and other provisions of the 

Federal Deposit Insurance Act, for the Corporation's prior approval to merge 

with The Lone Tree Savings Bank, Lone Tree, Iowa ("Lone Tree Bank"), 

which has total deposits of $2,801,100. The banks would merge under the 

charter and title of Farmers & Merchants. It is intended that the sole office of 

Lone Tree Bank would be discontinued.

Competition. The two banks proposed to be merged are the only banks 

located in Lone Tree, Iowa (population 810). From these offices, they serve an 

agricultural area with about 2,800 people. Farmers & Merchants also has an

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118 FEDERAL DEPOSIT INSURANCE CORPORATION

office, as permitted under Iowa law, in Nichols, 7 miles east, serving an area of 

1,200 people. Both areas have been experiencing a decline in population, as 

small family farms have been consolidated into larger and more profitable 

operations.

Under applicable judicial precedents for assessing the competitive impact of 

a proposed merger, it is highly unlikely that a trade area as small as Lone Tree 

and its environs would be considered a separate, economically significant 

"section of the country." Both banks, in fact, are located within the trade area 

served by banks in Iowa City (population 46,444), 15 miles away, and by 

banks located in the nearby communities of Hills, Riverside, and West Liberty, 

respectively 8, 9, and 11 miles from Lone Tree.

Within this relevant market area, there are eight banks, among which Farmers & Merchants is the sixth largest in deposit size, and Lone Tree Bank the 

seventh largest. If the proposed merger is approved, the resulting bank would 

rank sixth out of seven banks and hold 6.4 percent of their total deposits and

5.0 percent of their total loans. By contrast, the three banks in Iowa City 

would hold 35.3 percent, 28.7 percent, and 6.6 percent of total deposits, the 

bank in Hills 13.7 percent, the bank in West Liberty 7.2 percent, and the bank 

in Riverside 2.1 percent of total deposits. The proposed merger should actually 

enhance competition with the five larger banks in the market area.

While the proposed merger would eliminate one small unit bank in Lone 

Tree (Iowa law would not permit the present main office of Lone Tree Bank to 

be maintained as an office of another bank so long as Farmers & Merchants had 

its main office in Lone Tree), area residents and businessmen are not likely to 

be seriously inconvenienced. The two banks have catered to somewhat different clientele: Farmers & Merchants emphasizing agricultural credits, and 

Lone Tree Bank the credit needs of nonfarmers and persons employed by 

others. Six other banks, within relatively easy driving distance, will remain as 

alternative sources of banking services should area residents or businessmen 

desire such alternatives.

It might also be noted that any merger by Lone Tree Bank with a bank not 

headquartered in Lone Tree would have the same result under Iowa law: its 

office in Lone Tree would have to be closed because Farmers & Merchants has 

its main office in Lone Tree.

For the reasons stated, the Board of Directors is of the opinion that the 

proposed merger would not, in any economically significant section of the 

country, substantially lessen competition, tend to create a monopoly, or in any 

other manner be in restraint of trade.1

Financial and Managerial Resources; Future Prospects. Except for a lack of 

depth in management, these factors are favorably resolved for Farmers & Merchants. Lone Tree Bank, also lacking depth in management, is faced with a 

deteriorating capital position, which is not likely to be overcome by the reteniF o r purposes of this analysis, the Corporation has ignored the fact that the two

participating banks were recently brought under common control through stock purchase

of a controlling interest in Lone Tree Bank, apparently motivated by a desire to effectuate

their merger. Absent unusual circumstances, such a stock purchase lends no persuasive

weight to an approval of the merger. In fact, to adopt the argument that the banks do not

compete because of the common stock ownership would, in many cases, defeat the very

purpose of the Bank Merger Act, as amended.

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BANK ABSORPTIONS APPROVED BY THE CORPORATION 119

tion of earnings. The resulting bank would have a relatively favorable capital 

position and greater management depth than either bank would have as an 

independent institution. Operating economies could be achieved by the resulting bank which would have the effect of utilizing more efficiently its financial 

and managerial resources.

Convenience and Needs of the Community to Be Served\ The resulting bank 

would provide a wider range of services at one location within the Lone Tree 

community than either participating bank as a separate institution, in addition 

to having a larger lending capability. With increased depth in management, the 

resulting bank should be able to provide more effective banking and personal 

trust services to customers of both institutions.

Based on the foregoing, the Board of Directors has concluded that approval 

of the application is warranted.

Resources / J nBanking Offices

im

thousands

of dollars)

In

operation

To be

operated

The Schenectady Savings Bank

Schenectady, New York

339,079 2 3

to merge with

Mechanicville Co-operative Savings 

and Loan Association

Mechanicville

8,803 1

Summary report by Attorney General, July 16, 1970

Schenectady Savings attracts approximately 75 per cent of its deposits from 

its primary service area, which does not include Saratoga County. The closest 

office of Schenectady Savings is approximately 14 miles from Mechanicville. 

As of December 31, 1969, Schenectady Savings had 283 regular savings accounts with a balance of $1,143,734 located in the primary service area of 

Mechanicville Savings. Therefore, some actual competition will be eliminated 

by the proposed merger.

Other savings institutions, primarily located in Albany County, provide 

some competition in southern Saratoga County.

Savings banks in New York are not permitted to branch de novo beyond the 

geographic limits of their home counties. Therefore, Schenectady Savings can 

only open an office in Saratoga County through merger. There are no other 

merger alternatives in Saratoga County for Schenectady Savings.

Basis for Corporation approval, December 1, 1970

The Schenectady Savings Bank, Schenectady, New York ("Schenectady 

SB"), an insured mutual savings bank with total resources of $339,079,000, 

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

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120 FEDERAL DEPOSIT INSURANCE CORPORATION

Mechanicville Co-operative Savings and Loan Association, Mechanicvilie, New 

York ("S&L"), an insured savings and loan association with total resources of 

$8,803,000, under the former's charter and title and, incident thereto, to 

establish a branch in S&L's sole office.

Competition. Schenectady SB operates two offices in the city of Schenectady, New York, and has one approved but unopened branch in Niskayuna, a 

town to the southeast of Schenectady. Under New York law, Schenectady SB 

may open one additional de novo branch, but may only open such branch in 

Schenectady County. With appropriate supervisory approvals, it may merge 

with any mutual savings bank or savings and loan association headquartered in 

the State's Fourth Banking District. Schenectady SB is the second largest mutual institution in that District, with 16.6 percent of the deposits held by all 

mutual institutions headquartered therein. It is the only mutual savings bank in 

Schenectady County, but the $86 million deposit Schenectady Savings and 

Loan Association also competes for thrift institution deposits.

S&L operates its only office in P/lechanicville, a locality on the Hudson 

River in the southern part of Saratoga County, about 20 miles north of the city 

of Albany and 18 miles northeast o1 the city of Schenectady. Mechanicville 

S&L is the only mutual institution headquartered in Saratoga County, although 

the $20 million Gloversville Federal Savings and Loan Association, headquartered in Fulton County, has a small office in Saratoga County. S&L pays 

only 41/2 percent compounded semiannually on its regular accounts and 5 

percent on its income shares, as compared with Schenectady SB's 5 percent 

compounded quarterly on regular accounts, and even higher rates, as permitted 

by Federal regulations, on certificate accounts. Under New York law, S&L 

could open a de novo branch within 50 miles of its main office, including those 

portions of Schenectady County not sjbject to "home office protection." S&L 

holds only 0.4 percent of thrift institution deposits in the State's Fourth 

Banking District.

The primary service areas of the two institutions do not overlap, but 

Schenectady SB's secondary area over laps S&L's trade area. S&L draws only a 

minor volume of deposits and loans from Schenectady SB's areas, but the latter 

has about $1 million in deposits and a sizeable volume of mortgage loans from 

the Mechanicville area, attributable to more attractive interest rates over the 

years than S&L and a vigorous mortgage lending operation in Saratoga County. 

While some competition between the two institutions will be eliminated by 

their proposed merger, that competition cannot be considered significant in 

relation to the total savings and mortgage business originating in lower Saratoga 

County. There is, moreover, almost rio prospect of increased competition between them in the future because of the de novo branching restrictions on 

Schenectady SB and because of S&L's limited resources.

Schenectady SB is only slightly smaller than Albany Savings Bank, the 

largest mutual institution in New York's Fourth Banking District. As the 

Corporation stated in its recent approval of a proposed merger between Albany 

Savings Bank and Johnstown Savings-and loan Association, even a slight addition by merger to the size of such a dominant institution requires careful 

regulatory scrutiny to the end that effective competition by other mutual 

institutions in the District will not be: foreclosed in the future. Here, as there, 

the proposed merger involves a smal savings and loan association, significant

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BANK ABSORPTIONS APPROVED BY THE CORPORATION 121

public benefits, and the likelihood of increased competition in the future for 

the deposits of residents in the association's trade area.

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. Financial and managerial resources of both institutions are considered satisfactory and should 

continue to be so in the resulting bank. Schenectady SB offers more services to 

the public and pays a higher dividend rate than S&L. Its successful entrance into 

the Mechanicville area and the future prospects of the resulting bank seem 

assured.

Convenience and Needs of the Community to Be Served. Because of the 

disparity in size and services of the two institutions, the proposed merger 

would have little effect in Schenectady. SB's present service areas. The greatest 

impact of the proposed merger would be in S&L's service area, where the 

resulting bank will offer a 5 percent dividend rate compounded quarterly on 

regular savings accounts and the following services not presently available at 

S&L: 5 percent day-of-withdrawal accounts, 5% percent to 6 percent time 

deposits, depending on maturity, savings bank life insurance, safe deposit 

boxes, and student loans. In addition, the resulting bank would offer its more 

liberal mortgage lending terms and expects to commit significantly larger 

amounts than presently to mortgage lending operations generally in the 

Mechanicville area.

Based on 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

To be

operated

First-Citizens Bank & Trust Company

Smithfield, North Carolina

722,901 142 144

to merge with

The Haynes Bank

Cliffside

2,829 2

Summary report by Attorney General, July 28, 1970 

The proposal would merge the $2.4 million deposit Haynes Bank, Cliffside, 

North Carolina, with First-Citizens Bank and Trust Company, a $571.0 million 

institution headquartered in Smithfield, North Carolina.

The nearest office of First-Citizens fo Haynes Bank is in Shelby, about 16 

miles east. Several banks operate offices in this intervening area, and according 

to the application, neither of the merging banks obtains significant business

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122 FEDERAL DEPOSIT INSURANCE CORPORATION

from areas primarily served by offices of the other. Under such circumstances 

and in view of the size of Haynes E*ank, it is unlikely that substantial direct 

competition would be eliminated by the proposed merger.

North Carolina law permits statewide de novo branching and First-Citizens 

could establish de novo offices in the Cliffside-Henrietta area of southern 

Rutherford County (estimated population 15,000). Hence, some potential 

competition would, of course, be eliminated by the proposed merger.

Three banks operated offices in Rutherford County, an area which probably 

overstates the relevant market. Haynes Bank, the smallest, held 6.3 per cent of 

county total deposits of $31.5 million as of June 30, 1968. Its share of total 

deposits in the Cliffside-Henrietta area of southern Rutherford County where it 

is the only commercial bank, of course, would be considerably higher.

Basis for Corporation approval, December 1, 1970

First-Citizens Bank & Trust Company, Smithfield, North Carolina 

("Citizens"), an insured State nonmember bank with total deposits of 

$585,251,000, has applied, pursuant to Section 18(c) and other provisions of 

the Federal Deposit Insurance Act, for the Corporation's prior approval to 

merge with The Haynes Bank, Cliffside, North Carolina ("Haynes"), an insured 

State nonmember bank with total deposits of $2,406,000. The banks would 

merge under the charter and title of Citizens; and, as an incident to the merger, 

the two offices of Haynes would become branches of Citizens, increasing the 

number of its offices to 144.

Competition. Citizens is the fourth largest bank in North Carolina. It has 

branches widely distributed throughout the State, but most of its 142 offices 

are located in eastern North Carolina. Citizens has no office in Rutherford 

County.

Haynes has its main office in Cliffside, a textile community of 1,275 in 

southern Rutherford County near the South Carolina border. Its one branch is 

located 2 miles north of Cliffside in the even smaller community of Henrietta. 

It is the only bank in these two communities. Within a 10-mile radius of 

Cliffside, however, Haynes competes with branches of Union Trust Company, a 

$38 million institution headquartered in Shelby, branches of The Northwestern 

Bank, North Carolina's fifth largest bank, and the main office of Chesnee State 

Bank, a $2.9 million institution located 10 miles south of Cliffside in Chesnee, 

South Carolina. Haynes is fourth ranking among these banks in terms of area 

deposits, holding 10.9 percent of the total.

The nearest office of Citizens to an office of Haynes is a recently established 

de novo branch in Shelby, 16 miles to the northeast. The areas served by the 

two banks do not overlap, and Union Trust Company has an intervening office 

in Boiling Springs. The proposed merger would eliminate no meaningful existing competition between Citizens and Haynes.

Based on these facts, 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 manner be in restraint 

of trade.

Financial and Managerial Resources; Future Prospects. These factors are 

adequate with respect to both merging banks and should be favorable for the 

resulting bank. Haynes would gain more aggressive management and greater 

management depth as a result of the proposed merger, and the resulting bank,

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BANK ABSORPTIONS APPROVED BY THE CORPORATION 123

because of the wider range of services it could offer, should have more favorable future prospects in the trade area served by Haynes than Haynes would as 

an independent institution.

Convenience and Needs of the Community to Be Served. Within the trade 

area served by Haynes, an additional source of trust services, large loans, and 

specialized credit services would be available to the public at large. Customers 

of Haynes would benefit from the various deposit instruments that Citizens 

offers, but Haynes does not, at rates exceeding 41/2 percent per annum.

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

To be

operated

The Pennsylvania Bank 

and Trust Company

Titusville, Pennsylvania

120,323 13 16

to merge with

The Exchange Bank and 

Trust Company

Franklin

28,524 3

Summary report by Attorney General, June 25, 1970 

All of Exchange Bank's offices are in central Venango County. The closest 

office of Pennsylvania Bank is also in Venango County, some 18 miles northeast of Franklin. However, the major city of the county, Oil City, lies between 

these offices of the merging banks. The county's two leading banks operate a 

number of offices in this area. Because of the distance involved and the presence of intervening banking facilities, the proposed merger would probably 

eliminate only a limited amount of direct competition.

As of June 30, 1968, Exchange Bank held the third largest share of commercial bank deposits in the county, about 19 per cent, while Pennsylvania 

Bank held about 2 per cent of such deposits.

Pennsylvania Bank is the largest bank in this region able to open de novo

branches in the Franklin-Oil City area which is not already operating therein. 

Accordingly, it will be eliminated as one of the most likely potential entrants 

into the area by the proposed merger. Exchange Bank is the smallest of the 

four banks operating in the central part of the county in terms of absolute size, 

but holds the third largest share of deposits.

In view of the elimination of potential competition that will attend 

Exchange Bank's merger into what is already one of the larger banks in the 

region, we conclude that is is likely to have an adverse effect on competition.

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124 FEDERAL DEPOSIT INSURANCE CORPORATION

Basis for Corporation approval, December 1, 1970

The Pennsylvania Bank and Trust Company, Titusville, Pennsylvania 

('Titusville Bank"), an insured State nonmember bank with total deposits of 

$109,867,000, has applied, pursuant to Section 18(c) and other provisions of 

the Federal Deposit Insurance Act, for the Corporation's prior approval to 

merge with The Exchange Bank and Trust Company, Franklin, Pennsylvania 

("Exchange Bank"), which has total deposits of $23,781,000. The banks 

would merge under the charter and title of Titusville Bank; and, as an incident 

to the merger, the three offices of Exchange Bank would become branches of 

Titusville Bank, increasing the number of its offices to 16.

Competition. The service area of Titusville Bank involves communities in 

widely separated areas in Crawford County, in the northern half of Warren 

County, in the eastern portions of Erie County, and in the area surrounding 

Pleasantville in northern Venango County. The economy of the areas served by 

Titusville Bank is mixed residential-industrial with some dairy farming, mining, 

and oil production.

Exchange Bank's main office and two drive-in facilities are all located in the 

Franklin area (1970 population 8,550) in the west-central part of Venango 

County. The economy of the Franklin area is similar to that of areas served by 

Titusville Bank, with steel and steel products dominating. Some oil production 

and strip mining are also represented.

The most significant effects on competition of the proposed merger would 

be felt in the central Venango County area, where Exchange Bank has been 

competing with the Franklin branches of First National Bank of Pennsylvania, 

Meadville ($183 million in total deposits), and with the Oil City offices, 8 miles 

east, of Northwest Pennsylvania Bank and Trust Company ($134 million in 

deposits) and of First Seneca Bank & Trust Company ($112 million in deposits). Within the Franklin-Oil City area, Exchange Bank is the third largest of 

the four banks in terms of local deposits, holding approximately 22 percent of 

the area's deposits.

Titusville Bank has one office in Venango County at Pleasantville, approximately 18 miles northeast of Franklin. There are offices of other commercial 

banks in the intervening areas, and there does not appear to be any significant 

existing competition between the participating banks that would be eliminated 

by the proposed merger.

Under Pennsylvania law, both banks may branch de novo within their headquarters county and within counties adjacent thereto. Accordingly, Titusville 

Bank could branch de novo into the Franklin-Oil City area of Venango County, 

and Exchange Bank could branch de novo into Oil City and the northern part 

of the county and into areas presently served by Titusville Bank in Crawford 

and Warren counties. In addition, both banks could branch de novo into 

Mercer County, where neither has an office today. While a merger such as the 

one proposed may be more attractive than de novo branching to each participant in view of the sizable banks that already compete in such areas, at least 

some de novo branching appears to be feasible in most of these areas. Both 

banks, moreover, have the resources necessary for more aggressive de novo

branch activity. The proposed merger would eliminate this potential for increased competition in the future between the two institutions.

Within the five-county area of potential competition for Titusville Bank 

(i.e., the five counties—Erie, Crawford, Mercer, Venango, and Warren—within

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BANK ABSORPTIONS APPROVED BY THE CORPORATION 125

which Titusville Bank may branch or merge), Titusville Bank is the fourth 

ranking commercial bank in terms of deposits held at offices in these five 

counties, with slightly more than 10 percent of the total. Since it has no office 

in Mercer County, only one office in Venango County, and only two offices in 

Erie County, this figure substantially understates its relative competitive position in the areas it principally serves. Exchange Bank's share of the same 

five-county deposit total is 2.2 percent. The five banks with the largest holdings of local deposits in the five-county area each have more than $100 million 

in such deposits, and together hold 57.6 percent of the total. Under these 

circumstances, the supervisory authorities have an obligation to scrutinize carefully each merger proposed by any one of them to avoid a precedent which 

would significantly encourage a greater concentration of commercial banking 

resources in this relevant area.

In analyzing this application, the Corporation has noted with some concern 

for future competition in this western Pennsylvania area the ownership by 

Titusville Bank for its own account of common stock in 12 other banks which 

may branch or merge into one or more of the five counties listed. These banks 

include both banks in Oil City and each of the three larger banks headquartered elsewhere in the five-county area. The purchase and retention of 

such stock is authorized for State-chartered banks under Pennsylvania law, but 

as a practical matter can only be utilized by State banks which are not members of the Federal Reserve System (State member banks may not purchase or 

acquire such stock for their own account under the Federal Reserve Act except 

upon default of a debt previously contracted, while national banks in 

Pennsylvania are similarly prohibited from purchasing or acquiring such stocks 

for their own account under the National Bank Act). To avoid any artificial 

restraint on banking competition in the five-county area within which Titusville Bank may branch or merge, and to discourage the further concentration of 

commercial banking resources in that area, the Corporation deems it advisable, 

in view of the share of that market which the resulting bank would control 

after the proposed merger, to require a reasonably prompt divestiture of such 

stock as a condition to its approval of the proposed transaction. The 

Corporation intends to follow the same approach in similar applications in the 

future from banks in Pennsylvania and the nine other States which allow such 

holdings where the resulting bank would control a like percentage of the commercial bank deposits in the area within which it may branch or merge.

With the contemplated divestiture of Titusville Bank's investment in the 

common stock of actual and potential competitors, 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 both participating banks are satisfactory and are so 

projected for the resulting bank. Future prospects for the resulting bank are 

favorable.

Convenience and Needs of the Community to Be Served. While no claim is 

made that the banking requirements of residents and businessmen in the 

Franklin-Oil City area are going unmet today, the proposed merger would 

substitute for Exchange Bank a fourth large bank from which the public may 

choose for specialized bank services. Competition with the First National Bank

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126 FEDERAL DEPOSIT INSURANCE CORPORATION

of Pennsylvania's Franklin offices and with the two Oil City banks should be 

enhanced. Customers of Exchange Bank would benefit from the resulting 

bank's higher lending limit, from Titusville Bank's wider range of bank services, 

and from the greater diversification of management skills that would be available to serve them.

Based on the foregoing, the Board of Directors has concluded that approval 

of the application is warranted.

Resources /! r»

Banking Offices

l*n

thousands

of dollars)

In

operation

To be

operated

Citizens State Bank

Shawano, Wisconsin

18,044 1 1

to consolidate with

Embarrass State Bank 

Embarrass

1,816 1

Summary report by Attorney General, September 18, 1970

The two banks are eight miles apart and no banks operate in the intervening 

area. The consolidation will, therefore, eliminate existing competition between 

the two banks.

In addition to the consolidating banks, there are five other banks within 13 

miles of Shawano, two of which are within five miles of Embarrass. Citizens is 

the smaller of the two banks in Shawano and the second largest bank in the 

area. The consolidation will increase not insubstantially the dominant position 

of the two Shawano banks in this area.

Basis for Corporation approval, December 4, 1970

Citizens State Bank, Shawano, Wisconsin ("Citizens Bank"), an insured 

State nonmember bank with total deposits of $16,400,000, has applied, pursuant to Section 18(c) and other provisions of the Federal Deposit Insurance 

Act, for the Corporation's prior approval to consolidate with the Embarrass 

State Bank, Embarrass, Wisconsin ("Embarrass Bank"), an insured State nonmember bank with total deposits of $1,600,000. The banks would consolidate 

under the charter and title of Citizens Bank. It is expected that the consolidated bank will apply to establish a branch at Embarrass Bank's sole office 

once the merger is consummated, under a provision of Wisconsin law which 

permits branches to be established in "bankless" communities.

Competition. Citizens Bank's sole office is located in Shawano, a community of approximately 6,500 persons in the east-central section of 

Wisconsin. The economy is primarily dairy farming, with some general farming 

and varied light industry. Five banks operate in Citizens Bank's service area. 

Citizens Bank is the smaller of two banks in Shawano and holds 29.5 percent

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BANK ABSORPTIONS APPROVED BY THE CORPORATION 127

of the total I PC deposits held by the five area banks. Its larger competitor, 

Shawano National Bank, holds 45.5 percent.

Embarrass Bank is a unit bank serving a farming community of 306 persons, 

located in Waupaca County, 11 miles southwest of Shawano. It is the smallest 

of three banks in its primary service area, which consists of the ClintonvilleEmbarrass area. Embarrass Bank holds 9.0 percent of area I PC deposits, while 

its two larger competitors, located 4 miles southwest in Clintonville, hold 35.4 

percent and 55.6 percent of area IPC deposits. The smaller bank in Clintonville 

is a subsidiary of First National Corporation, the eighth largest bank holding 

company in Wisconsin.

The areas served by Citizens Bank and Embarrass Bank overlap slightly, but 

the two banks derive only nominal business from each other's service areas. 

The proposed merger would have little competitive impact in areas presently 

served by Citizens Bank, except insofar as the higher lending limit of the 

resulting bank would enable it to compete more effectively with its larger 

competitor in Shawano for certain agricultural credits. In the EmbarrassClintonville area, the superior financial condition and more aggressive management of Citizens Bank should enhance competition with the two banks in 

Clintonville if a branch office is opened in Embarrass, as contemplated. The 

proposed merger would not change Citizens Bank's relative standing in 

Shawano nor in the combined service areas of the two banks. Since neither 

bank can branch de novo under Wisconsin law except into a bankless community, the proposed merger would not eliminate potential competition between them through the de novo branching route.

Under these 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.1

Financial and Managerial Resources; Future Prospects. Each of these factors 

is favorable with respect to Citizens Bank. Embarrass Bank has had financial 

and operational problems for the past 10 years, and several changes of control 

and management have occurred as a consequence. Its future prospects as an 

independent bank are not encouraging. These factors for the consolidated bank 

appear favorable, and lend affirmative weight to approval of the application.

Convenience and Needs of the Community to Be Served. If, as contemplated, the consolidated bank establishes a branch in Embarrass, area residents 

would gain the convenience of an additional source for certain banking services 

not now available at Embarrass Bank, including larger size agricultural credits, 

5 percent Golden Passbook accounts, and somewhat lower interest charges on 

loans. Should a branch office not be established in Embarrass, the convenience 

of area residents in this sparsely settled community would be only moderately

1 For purposes of this analysis, the Corporation has ignored the fact that the two

participating banks were recently brought under common control through the purchase of

a controlling stock interest in Embarrass Bank, apparently motivated by a desire to effectuate their merger. Absent unusual circumstances, such a stock purchase lends no persuasive weight to approval of a merger. In fact, to adopt the argument that the banks do

not compete because of such recently acquired common stock ownership would, in many

cases, defeat the very purposes of the Bank Merger Act, as amended.

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128 FEDERAL DEPOSIT INSURANCE CORPORATION

affected, as Clintonville and Shawano banks would remain within relatively 

easy driving distance.

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

To be

operated

First-Citizens Bank and Trust 

Company of South Carolina

Columbia, South Carolina

81,019 17 18

to merge with

State Bank of South Carolina

Georgetown

1,360 1

Summary report by Attorney General, November 3, 1970

Since most of the acquiring bank's offices are over 100 miles distant from 

Georgetown (the nearest First Citizen's branch is located in Charleston 60 

miles distant), there is little or no existing competition between the two banks 

which would be eliminated by the merger.

Under South Carolina law, either bank could be permitted to establish a 

branch in the market or markets served by the other bank. Georgetown Depository's size, however, would preclude it from being a potential entrant into any 

area served by First Citizens. The latter has demonstrated an interest in expanding its operations into other banking markets by its recent acquisitions of 

several other banks and would be considered a likely entrant into the 

Georgetown area if an increase in the size of the community and an expansion 

of its economic structure were foreseeable. However, First Citizen's proposed 

acquisition of a small banking organization in Georgetown could be considered 

a "foothold" acquisition and may result in stronger competition to the larger 

banks operating there.

Basis for Corporation approval, December 18, 1970

First-Citizens Bank and Trust Company of South Carolina, Columbia, South 

Carolina ("Citizens"), an insured State nonmember bank with total deposits of 

$68,715,000, 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 State Bank of South Carolina, Georgetown, South Carolina 

("Georgetown Bank"), an insured State nonmember bank with total deposits 

of $1,136,000, under Citizens' charter and title and, as an incident to the 

merger, to establish a branch in Georgetown Bank's sole office, increasing the 

number of its offices to 18.

Competition. Citizens, the sixth largest bank in South Carolina, operates 17 

offices in nine service areas which are largely separate and distinct from each 

other. With 3.4 percent of statewide commercial bank deposits, Citizens ranks 

behind the five larger banks in the State which hold, respectively, 22.9 percent,

14.0 percent, 9.7 percent, 8.8 percent, and 3.9 percent of such deposits.

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Georgetown Bank was organized in 1932 with limited powers but converted 

to an insured State nonmember bank under its present title on October 26, 

1970. It operates its sole office in Georgetown (population 12,261), approximately 60 miles north of Citizens' nearest office in Charleston and over 100 

miles from most of Citizens' other offices. Georgetown, the seat of 

Georgetown County, is a seaport community with its economy based on manufacturing, farming, and tourism.

Due to the distances between their offices and the small size of Georgetown 

Bank, the proposed merger of Citizens and Georgetown Bank would eliminate 

little, if any, existing competition between them. The proposed merger would 

have no competitive effect in Citizens' present service areas, but it should 

stimulate competition in the Georgetown area where Georgetown Bank competes with two offices of the largest bank in South Carolina, and a branch 

office of a smaller bank, each of which has more in area deposits than 

Georgetown Bank.

Under South Carolina law, which permits statewide branch banking, each 

bank could establish de novo branches in areas served by the other bank. 

Because of its limited resources, however, and the distances involved, 

Georgetown Bank is unlikely to engage in any such de novo branching activity. 

While Citizens has the capabilities for de novo branching, it has little incentive 

to enter the Georgetown area because of the number of commercial bank 

offices presently serving that market. Moreover, if economic growth in the area 

in the future should make additional de novo branching desirable, there are 

other large banks in South Carolina that could also enter the Georgetown area 

in this way. Because of this, the effect of the merger in eliminating a potential 

for increased competition between Georgetown Bank and Citizens through de

novo branching is not considered significant.

Nor would the merger have any adverse effect as a precedent on the competitive structure of commercial banking in the State of South Carolina as a 

whole, in view of the share of the statewide market presently held by Citizens 

and the limited addition to that share represented by the acquisition of 

Georgetown Bank.

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. Financial and managerial resources of both institutions are considered satisfactory and should 

continue to be satisfactory in the resulting bank. Georgetown Bank has had 

insignificant growth in recent years, but the future prospects of the resulting 

bank should be good.

Convenience and Needs of the Community to Be Served. The proposed 

merger would broaden the range of banking services available to customers of 

Georgetown Bank without reducing the number of offices or commercial bank 

alternatives in its service area. Additional services would include trust and 

credit card services, automated data processing services, specialized lending 

services, and a significantly larger lending limit. Other area residents would 

benefit from having an additional local source for these services.

Based on the foregoing information, the Board of Directors has concluded 

that approval of the application is warranted.

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BA N K ABSO RPTIO N S D E N IE D BY THE CO RPO RATIO N

Resources Banking Offices

(m

thousands

of dollars)

In

operation

To be

operated

Valley Fidelity Bank and Trust Company

Knoxville, Tennessee

71,648 6

to merge with

Bank of Knoxville

Knoxville

32,013 2

Summary report by Attorney General, December 18, 1969 

The proposed would merge Valley Bank, Knox County's third largest commercial bank, with Knoxville Bank, the county's fifth largest bank.

The head offices of the participating banks are located in the same block in 

downtown Knoxville. There is no doubt that significant direct competition 

exists between them. This competition will, of course, be eliminated by consummation of the proposed merger.

Commercial banking in Knox County is highly concentrated. As of June 30, 

1968, six banks operated in the county with total deposits of about $443 

million, the three largest controlling about 85 per cent of such deposits. Valley 

Bank, the third largest, held 12.1 per cent, and Knoxville Bank, the fifth 

largest, held 5.4 per cent of these deposits. Following consummation of the 

proposed merger, the resulting bank would hold 17.5 per cent, and the three 

largest banks, including the resulting bank, would hold more than 90 percent.

The merger would eliminate significant direct competition existing between 

the participating banks and would result in a substantial increase in concentration in an already highly concentrated banking market. The over-all effect of 

this merger on competition will be significantly adverse.

Basis for Corporation denial, September 3, 1970

Valley Fidelity Bank and Trust Company, Knoxville, Tennessee (Valley 

Fidelity), a state nonmember insured bank with total deposits of $62,690,000, 

has applied, pursuant to Sectiori 18(c) and other provisions of the Federal 

Deposit Insurance Act, for the Corporation's prior consent to merge under its 

charter and the title Valley Fidelity Bank of Knoxville, with Bank of 

Knoxville, Knoxville, Tennessee, a state nonmember insured bank with total 

deposits of $25,503,000, and for consent to establish three branches at the 

locations of Bank of Knoxville's main office, a drive-in facility, and an authorized but unopened branch. The proposed merger would give the resulting bank 

eight operating offices and two authorized but unopened offices.

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BANK ABSORPTIONS DENIED BY THE CORPORATION 131

Competition. Under the Bank Merger Act of 1966, as interpreted by the 

United States Supreme Court, it is clear that the appropriate banking agency, 

no less than the lower Federal Courts, is required, in assessing the merits of a 

typical bank merger, to engage in a two-step process, the first of which is to 

decide whether the transaction would violate the antitrust prohibitions of 

Section 7 of the Clayton Act. If such a violation is found, the agency or the 

court must then decide whether "the anticompetitive effects of the proposed 

transaction are clearly out-weighed in the public interest by the probable effect 

of the transaction in meeting the convenience and needs of the community to 

be served." The agencies and the lower Federal courts have been further advised that in the second step of the process, the burden of proof is on the 

merging banks to show that the probable effect of the transaction in meeting 

the convenience and needs of the public is likely to benefit all seekers of 

banking services in the area of competitive impact, rather than merely those 

interested in large loan and trust services, and that the expected gains in convenience and needs cannot reasonably be achieved through other, less 

anticompetitive, means.1

For purposes of the Section 7 analysis of the merger now before the Corporation, Knox County (estimated population 269,000) may be considered the 

largest geographic area within which a merger of Valley Fidelity and Bank of 

Knoxville would have competitive significance. Knox County is the area from 

which both banks derive the bulk of their banking business, it is the area of 

reasonable banking choice for most customers of the two banks, and it is the 

geographic area to which the two banks and their competitors are limited by 

Tennessee law in the establishment of offices.

Only six commercial banks are headquartered in Knox County. Valley 

Fidelity ranks third in deposit size among them, with 12.4% of all commercial 

bank deposits in Knox County, and Bank of Knoxville fifth, with 5.0% of all 

commercial bank deposits in Knox County. The other banks in Knox County, 

and the comparable deposit share for each is as follows:

Deposits % Total

Hamilton National Bank of Knoxville $213,088,000 42.2

Park National Bank of Knoxville 152,511,000 30.2

Fountain City Bank 39,916,000 7.9

Volunteer State Bank (established 1964) 10,862,000 2.2

The relative shares held by each bank of all commercial bank assets, loans 

and IPC demand deposits in Knox County are not materially different. With 

the exception of Fountain City Bank, all of the banks in Knox County have 

their main offices in downtown Knoxville.

Bank of Knoxville's main office is in the same block as Valley Fidelity's 

main office, and its only other office, a drive-in facility, is two blocks away.

1 United States v. First City National Bank of Houston, 386 U.S. 361 (1967); United

States v. Third National Bank in Nashville, 390 U.S. 171 (1968); and United States v. 

Phillipsburg National Bank, __U .S .___ (decided June 29, 1970).

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132 FEDERAL DEPOSIT INSURANCE CORPORATION

The two banks are not significant competitors at the present time for certain 

types of commercial bank business, but they are significant competitors for 

IPC demand deposits, for time and savings deposits, for commercial and industrial loans, for single payment loans to individuals, for residential loans and for 

instalment loans. Changes in management policy and additional de novo 

branches, moreover, could bring both banks, as independent institutions, into 

increasing competition with each other in the future. Their merger would 

obviously eliminate both existing and potential competition between them.

A comparison with the facts recently before the United States Supreme 

Court in the Phillipsburg case compels the conclusion that a merger of Valley 

Fidelity with Bank of Knoxville would violate Section 7 of the Clayton Act. In 

that case, seven commercial banks were found to be competitors in the relevant 

geographic market. Here, there are six. The banks there seeking to marge 

ranked third and fifth among the seven, the larger having 13.7% of the total 

commercial bank deposits in the market. Here Valley Fidelity ranks third and 

Bank of Knoxville fifth among the competing banks, with Valley Fidelity 

holding 12.4% of the total commercial bank deposits in the market. There, the 

largest bank held 41.4% of all the commercial bank deposits in the market. 

Here, the largest bank holds 42.2%. There, the merger increased the share of 

deposits held by the three largest banks from 70% to 80%. Here, the comparable percentage would be increased from 85% to 90%. There, as here, the 

applicants made the claim that they are too small to serve their community 

effectively and to compete vigorously, and that the proposed merger would 

have pro-competitive effects by enhancing their competitive position against 

larger banks. The Court's response was that "such considerations are certainly 

relevant in determining the 'convenience and needs of the community' under 

the Bank Merger Act, [but] they are not persuasive in the context of the 

Clayton Act."

The Corporation finds, accordingly, that the effect of the proposed merger 

"may be substantially to lessen competition" in commercial banking in Knox 

County within the meaning of Section 7 of the Clayton Act, as incorporated 

into the relevant provisions of the Bank Merger Act of 1966.

Convenience and Needs of the Community to be Served' Customers of Bank 

of Knoxville would undoubtedly benefit from the more aggressive and innovative management of Valley Fidelity, the greater variety of specialized credit 

services now offered by Valley Fidelity and the extension of trust services 

presently available at Valley Fidelity but not at Bank of Knoxville. Customers 

of both banks would derive the benefit of the larger lending limits of the 

resulting bank and the possible introduction of new services for business customers. In addition, the applicants claim that the resulting bank would expand 

by a minimum of $4 million Valley Fidelity's present mortgage servicing operation, which is apparently unique among Knox County commercial banks, and 

that the banking public throughout Knox County would benefit significantly 

from the prompt establishment of new commercial bank branch offices in areas 

of the County not now conveniently served.

The claims related to tmst services and the more convenient servicing of 

certain business customers are not compelling. Trust services are now available 

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tance of Bank of Knoxville. The demand for the services that might be made 

available to business customers has not been demonstrated, and the increment 

in Valley Fidelity's lending limits which are likely to be used as a result of this 

merger would affect only a small number of businesses which have other 

sources available for loans over $1 million.2

Of the benefits claimed, the ones most likely to affect "all seekers of banking services in the community" are those relating to the immediate expansion 

of Valley Fidelity's mortgage servicing department and its branch system. As to 

the first, the funds for the proposed expansion can be said to be available 

within Valley Fidelity's present asset structure. The importance, moreover, to 

the Knox County public of a $4 million increase in Valley Fidelity's present 

mortgage servicing operation cannot properly be assessed without definitive 

information, not presented by the Applicant, as to the mortgage servicing 

operations of independent brokers and savings and loan associations also operating in the Knox County area. As to the second benefit claimed, both banks 

recognize the importance to their future prospects of de novo branching and 

have expressed their intention of pursuing such a course of action whether or 

not the merger is approved. It is relevant here that the Corporation recently 

approved two de novo branch applications in Knox County for Volunteer State 

Bank, the smallest competitor in the market and the one most recently established. It is also relevant to both claims of community benefit that the two 

banks are profitable and well-managed institutions: Valley Fidelity added more 

than $450,000 to capital funds after taxes and dividends in 1969, while Bank 

of Knoxville added more than $160,000 the same year. Thus, by natural 

growth, Valley Fidelity, if not Bank of Knoxville, should be able to provide the 

various benefits claimed to the Knox County public in the near future without 

the necessity for this merger.

On the record, the Board cannot find that the anticompetitive effects of the 

proposed merger are clearly outweighed in the public interest by the probable 

effect of the transaction in meeting the convenience and needs of the banking 

public in Knox County.

Financial and Managerial Resources; Future Prospects. Both banks have 

satisfactory financial and managerial resources for the business they do as 

independent institutions, and both have satisfactory prospects for the future. 

The same would be true of the resulting bank if the merger were to be approved, but consideration of these factors adds no significant weight either to 

approval or denial of an application in which a violation of Section 7 of the 

Clayton Act has been found.

Based on the foregoing, the Board of Directors has concluded that approval 

of the application is not warranted and that it must, accordingly, be denied.

2 State banks in Tennessee have a lending limit equal to 25% of capital funds, but 

Valley Fidelity limits its loans, except on rare occasions, to 15% of capital funds as a 

matter of prudence. The 15% limitation amounts today to approximately $900,000 and is 

increasing each year by $50,000 or more as earnings are retained. Fifteen percent of Bank 

of Knoxville's capital funds would add approximately $450,000 to Valley Fidelity's voluntary limit. The lending limits of the two larger national banks in Knoxville are, 

respectively, about $1.7 million and $1.1 million.

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134 FEDERAL DEPOSIT INSURANCE CORPORATION

Resources Banking Offices

(in

thousands

of dollars)

I n

operation

To be

operated

United Mutual Savings Bank

Tacoma, Washington

71,039 5

to merge with

State Mutual Savings Bank 34,025 5

Tacoma

Summary report by Attorney General, June 2, 1970

The head offices of the merging institutions are approximately eight miles 

apart, and their closest offices, at Bremerton, are about three miles apart. A 

branch of Seattle's Puget Sound Mutual Savings Bank (total deposits of $86 

million) is the only other mutual savings bank in Pierce County. Hence, despite 

the presence of offices of several area commercial banks and savings and loan 

associations in the intervening area, analysis of the applicants' business indicates that they are presently in direct competition against each other, as might 

be expected from their similar character and the location of their offices. This 

direct competition, of course, would be eliminated by the proposed merger.

United Mutual and State Mutual are the dominant mutual savings banks in 

Pierce County, where they hold most of the mutual savings bank deposits. 

However, savings and loan associations provide reasonably direct competition 

for savings deposits; and they should be included in the same market. As of 

June 29, 1968, the total county savings in such thrift institutions was $309.7 

million, of which the four largest held 78 percent. United Mutual had about 19 

percent of that total amount and State Mutual had about 9 percent.

It is possible that savings deposits in commercial banks should also be considered, despite the rate differentials for savings that prevail between commercial banks and thrift institutions. As of June 29, 1968, the total savings at 

all financial institutions in Pierce County was $560 million savings deposits, of 

which the four largest held about 58 percent. United Mutual held about 10 

percent of this total amount and State Mutual held about 5 percent. However, 

we recognize that these market share percentages may somewhat understate 

the anticompetitive effect of the proposed merger, which would substantially 

increase United Mutual's present leading position among mutual savings institutions in Pierce County.

We conclude that the proposed merger would eliminate substantial direct 

competition between the parties and increase concentration in the area. Accordingly, we find it is likely to have a significantly adverse effect upon competition.

Basis for Corporation denial, October 2, 1970

United Mutual Savings Bank, Tacoma, Washington (United Mutual), an insured mutual savings bank with total deposits of $65,541,000, 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 State Mutual

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Savings Bank, Tacoma, Washington (State Mutual), an insured mutual savings 

bank with total deposits of $31,071,000. The participants would merge under 

the charter of United Mutual and with the title of State United Mutual Savings 

Bank. As an incident of the merger, the five offices of State Mutual would 

become branches of the resulting bank, increasing the number of its offices to 

ten.

Competition. United Mutual and State Mutual are mutual savings banks 

headquartered in Tacoma, Washington. In determining the competitive implications of their proposed merger for purposes of Section 7 of the Clayton Act, as 

incorporated into the Bank Merger Act as amended, consideration must first be 

given to a definition of the line or lines of commerce within which they 

compete.

Whenever the United States Supreme Court has considered the competitive 

implications of mergers between commercial banks, it has found that the decisive "line of commerce" for such purposes is commercial banking because of 

the unique "cluster" of services which commercial banks alone can offer. It has 

rejected the claims of defendent banks that the various services offered by 

commercial banks should be considered as constituting separate lines of commerce in which other types of financial institutions and even nonfinancial 

organizations may also compete. The Court's most recent bank merger decision 

(United States v. Phillipsburg National Bank, decided June 29, 1970) reaffirmed its earlier views on this point, but indicated that "submarkets" for 

commercial banking "would be clearly relevant, for example, in analyzing the 

effect on competition of a merger between a commercial bank and another 

type of financial institution."

In the State of Washington, where mutual savings and loan associations have 

the option to become mutual savings banks (State Mutual converted at the end 

of 1969), where both types of institutions may pay interest on deposits below 

$100,000 at the same rates and each at rates higher than commercial banks, 

where at least some differential in interest rates has persisted between thrift 

institutions and commercial banks at almost all times throughout the post 

World War II period, where both types of institutions are identified by the 

public as thrift institutions engaged primarily in mortgage lending, where both 

by statute have very similar powers, privileges, restrictions and liabilities, it 

would appear that the decisive line of commerce for assessing the competitive 

implications of a proposed merger of mutual savings banks should be "thrift 

institution banking" as offered by savings banks and savings and loan associations. As indicated, in the State of Washington, savings banks and savings and 

loan associations are uniquely able to compete for deposits under $100,000 

and are generally considered interchangeable alternatives for thrift-type deposits and for deposit institutions emphasizing home mortgage lending.

The geographic area within which the proposed merger would have its greatest competitive impact is Pierce County (the Tacoma SMSA). Each institution 

has four offices in Pierce County, and each derives the bulk of its deposits and 

loan business from the growing residential areas of Tacoma and Pierce County. 

The proposed merger would also have a competitive impact in Kitsap County, 

since each bank has a fifth office in Bremerton, the county's largest community, and the State as a whole must also be considered, because it is the 

widest area within which savings banks in Washington may branch or merge.

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The main offices of the two banks are eight blocks apart in downtown 

Tacoma, and their eight offices in Pierce County represented one-third of the 

24 offices of savings banks and savings and loan associations located in the 

county at year-end 1969. United Mutual is the second largest of the 9 thrift 

institutions in the area, based on Pierce County deposits, and held approximately 20% of such deposits at year-end 1969. State Mutual is the fourth 

largest thrift institution in Pierce County, and held approximately 9.5% of the 

Pierce County deposits held by such institutions on the same date. While the 

largest thrift institution in Pierce County would be slightly larger than the 

resulting bank, the proposed merger would create a second-ranking thrift institution having almost 30% of the Pierce County deposits held by all such 

institutions.1 The share of such deposits held by the two largest thrift institutions in Pierce County would be increased from 52.7% to 62.3%, and the share 

held by the three largest would be increased from 69.6% to 79.1%.

In Kitsap County, United Mutual and State Mutual each have one recently 

established office, located about three miles apart in Bremerton. They are the 

only savings banks with offices in the county, but they also compete with two 

savings and loan associations. The percentage share of thrift institution deposits 

which they hold in Kitsap County is small but growing.

While it is obvious that significant deposit competition presently existing 

between United Mutual and State Mutual would be eliminated by the proposed 

merger, the transaction would also eliminate the possibility of greatly increased 

competition between them in the future. Both may open de novo branches 

anywhere in the State of Washington, and each has demonstrated in Pierce and 

Kitsap Counties its ability and success in opening branch offices in locations 

where vigorous deposit competition is presented.

Based on the foregoing, the Corporation finds that the effect of the proposed merger "may be substantially to lessen competition" between thrift 

institutions in Pierce County within the meaning of Section 7 of the Clayton 

Act, as incorporated into the relevant provisions of the Bank Merger Act of 

1966.

Convenience and Needs of the Community to be Served. Both United Mutual and State Mutual offer "on line" computer service to depositors, although 

significant business is also done by mail. Both pay the maximum rates on 

savings deposits and certificate accounts allowed by FDIC regulations. Both are 

profitable, well-managed and growing institutions. The application states that 

the resulting bank would extend FHA and VA mortgage lending services to the 

present offices of State Mutual, and that additional resources could be committed to central city and urban renewal needs in the Tacoma area. FHA and 

VA mortgage loans, however, are available at many of the financial institutions 

in Pierce County, and there has been no demonstration that the overall demand 

for such loans is going unsatisfied. As to additional lending in central city and

1Even if the competitive deposit market, despite the differential in rates, were broadened to include the time and savings deposits held in Pierce County at commercial bank 

offices—an inclusion which would significantly understate the competitive position of 

United Mutual and State Mutual in the market for accounts below $100,000—the percentages held by each (10.9% and 5.2%, respectively) would still be sufficiently high to 

indicate a substantial lessening of competition for such accounts within the meaning of 

Section 7 of the Clayton Act.

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urban renewal areas, United Mutual should be able to supply the sums mentioned even without the proposed merger by marketing a portion of its FHA 

loans through the newly formed Savings Bank Trust Company-Northwest and 

through similar secondary market operations. Finally, while applicants claim 

that the merger would result in certain economies of scale, similar economies 

of scale could be realized for each bank through other, less anticompetitive, 

mergers among the State's 71 thrift institutions.

On the record, the Board cannot find that the anticompetitive effects of the 

proposed merger are clearly outweighed in the public interest by the possible 

effect of the transaction in meeting the convenience and needs of the banking 

public in Pierce County.

Financial and Managerial Resources; Future Prospects. Both banks have 

satisfactory financial and managerial resources for the business they do as 

independent institutions, and both have satisfactory prospects for the future. 

The same would be true of the resulting bank if the merger were to be approved, but consideration of these factors adds no significant weight either to 

approval or denial of an application in which the proposed merger appears to 

violate Section 7 of the Clayton Act.

Based on the foregoing, the Board of Directors has concluded that approval 

of the application is not warranted and that it must, accordingly, be denied.

Resources

(in

thousands

of dollars)

Banking Offices

In

operation

To be

operated

Bank of Hawaii

Honolulu, Hawaii

647,049 66

to merge with

Hawaiian Trust Company, Limited

Honolulu

24,154 2

Summary report by Attorney General, June 10, 1970 

On September 16, 1966, we submitted our original competitive report to 

you; in it we advised that the proposed merger would, in our view, have 

substantially adverse competitive effects. We stressed the particularly high degree of concentration in the commercial banking and the trust business in 

Hawaii and Honolulu County and the fact that the Applicants held dominant 

market positions in their respective fields. Bank of Hawaii ("Bank") then held 

over 40 per cent of total commercial bank deposits and Hawaiian Trust 

Company, Limited ("Trust Company") held over 40 per cent of the total assets 

of trust companies in the state and the county.

Nothing in the supplemental information in the Application or in other 

sources, indicates that the conditions of over-all concentration in the banking 

and trust markets or the dominant positions of the Applications in these markets have changed materially.

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As of June 30, 1969, the two largest banks in Hawaii held 72.8 per cent of 

all bank deposits in the state. Bank, with total deposits of $605.7 million, then 

had 40.4 per cent of total deposits in the state. It was the largest bank in the 

state.

Trust Company had 46.8 per cent of the trust business in the state in 1968 

and 45.5 per cent in 1969.

This merger would combine the largest bank in a highly concentrated banking market and the largest trust company in a highly concentrated trust market. With the removal of the previous statutory wall between them by Act 273 

of 1965, the two institutions, however, are now substantial potential competitors in banking, trust, and other financial services.

As the largest institutions in their respective markets, each of the Applicants 

is the most likely entrant into the other's market. The proposed merger will 

defeat the unique opportunity afforded for a reduction in the unusually high 

concentration in both banking and trust services in Hawaii and the potential 

for greater competitive balance among the institutions serving the state. It will 

tend to entrench the leading positions of the existing leaders in their respective 

markets and perpetuate the Applicants' dominance of banking and trust services in Hawaii.

We confirm our original view that the competitive effects of the proposed 

merger would be substantially adverse. Moreover, we would stress that the 

competitive effects of this merger would be more serious than those at issue in 

United States v. First National Bank of Hawaii. Each of the merging parties 

here is a larger factor in its respective market.

Basis for Corporation denial, December 18, 1970

Bank of Hawaii, Honolulu, Hawaii, an insured, nonmember, commercial 

bank, 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 Hawaiian Trust Company, Limited, Honolulu, Hawaii (Trustco), a noninsured institution, under the charter and title of Bank of Hawaii.

Competition. Bank of Hawaii is the largest commercial bank in the State of 

Hawaii, with total deposits of $572 million, representing about 38 percent of 

commercial bank deposits Statewide. It has 58 authorized offices at locations 

throughout the Hawaiian Islands and eight other offices on various Pacific 

islands to the west. It has no trust department, although a State law enacted in

1965 permits commercial banks to exercise fiduciary powers and to merge with 

State-chartered trust companies.

There are only six other commercial banks in Hawaii, and the largest of 

these is First Hawaiian Bank, with total deposits of $495 million, representing 

about 32 percent of commercial bank deposits Statewide. The five remaining 

commercial banks range in deposit size from $71 to $112 million, representing 

4.6 to 7.4 percent of total Statewide commercial bank deposits.

In November 1969, a consent decree terminated antitrust action filed in

1966 to enjoin First Hawaiian Bank's merger with Cooke Trust Company, 

Limited. At the time of its merger, Cooke Trust Company was the third largest 

State-chartered trust company administering about 10 percent of the total 

trust assets of all such fiduciaries. One other commercial bank, American 

Security Bank, with total deposits of $112 million, recently established a trust

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department de novo, but its fiduciary activities have so far been limited to 

acting as custodian for corporate pension and profit-sharing plans.

Trustco is the largest of three independent State-chartered trust companies 

in Hawaii, administering trust assets valued at approximately $1 billion. It is 

estimated that Trustco controls some 50 percent of the total corporate fiduciary business in Hawaii. Bishop Trust Company, Ltd. is the second-ranking 

trust company, controlling some 35 percent of the total corporate fiduciary 

business in Hawaii, including the trust assets administered by a wholly-owned 

affiliate located in Hilo. Honolulu Trust Company, Ltd., the remaining Statechartered trust company holds a relatively insignificant portion of the corporate fiduciary business in Hawaii. Trustco's main office is in Honolulu on the 

island of Oahu, and a recently opened branch is located in Hilo on the island of 

Hawaii.

Since Bank of Hawaii does not operate a trust department, and since 

Trustco does not conduct a general commercial banking business, the only area 

of competitive overlap today involves local lending where Trustco's share of 

the total would be relatively small. Accordingly, the amount of existing competition between Bank of Hawaii and Trustco which would be eliminated by their 

proposed merger may be deemed not significant.

Consummation of the proposed merger, however, would eliminate the possibility of future competition between the largest commercial bank in Hawaii 

and the largest trust company in Hawaii. Under the State law enacted in 1965, 

Bank of Hawaii can enter the fiduciary field de novo as well as by merger. 

Trustco, for its part, can enter the commercial banking field by merger with a 

much smaller commercial bank or by merger with a de novo commercial bank. 

A merger between these two institutions is obviously not required to permit 

Bank of Hawaii to exercise fiduciary powers or to permit Trustco to engage in 

commercial banking activities.

The Corporation recognizes that the establishment of a de novo trust department by Bank of Hawaii is likely to involve initial operating losses, a major 

effort to recruit qualified personnel, and a period of years to generate the 

fiduciary business necessary to make its activities in this area profitable. 

Smaller banks than Bank of Hawaii have successfully done so, however, and 

achieved profitable operations within a reasonable period of time. Bank of 

Hawaii, moreover, would start with certain advantages smaller banks might not 

have. Its financial and management resources, including investment skills, are 

obvious advantages, but more importantly, its influential customer relationships in the commercial banking field should help significantly to attract the 

large fiduciary accounts that most consistently make a trust department operation profitable. Bank of Hawaii, furthermore, is likely to have considerable 

incentive to enter the trust area, as indeed this application confirms. Its principal commercial bank competitor recently acquired a much smaller and less 

profitable trust operation than Trustco's. With proper management, successful 

trust department operations may add not only to the bank's profits but also to 

the bank's commercial banking business. Conversely, the absence of a trust 

department, when competitors have them, may in time inhibit the growth of 

Bank of Hawaii's commercial banking business. All of these considerations 

mark Bank of Hawaii as the one commercial bank most able and most likely to 

enter the trust field de novo.

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In view of the concentrated nature of the commercial banking business in 

Hawaii and the even more concentrated nature of corporate fiduciary activities 

in the State, the Corporation believes Bank of Hawaii should be required to 

enter the trust business on a de novo basis, if it is to enter the field at all. The 

State has only two large commercial banks and two large trust operations. In 

both fields, the two largest institutions control 70 percent or more of the total 

business. There are, in addition, significant stockholdings by each of the two 

largest trust companies in each of the two largest commercial banks and a 

significant number of director interlocks and common stockholdings which 

intensify regulatory concern over the concentration of commercial banking and 

corporate fiduciary business in the State of Hawaii. Approval of the proposed 

merger would foreclose the substantial probability of increased competition in 

both fields, since Bank of Hawaii, as previously stated, is the one commercial 

bank in the State most able and most likely to enter the corporate trust field 

de novo, while Trustco is the corporate fiduciary most able to contribute 

significant new business to one of the smaller commercial banks or to enter the 

commercial banking field itself de novo. Approval of the proposed merger 

would serve also to perpetuate Bank of Hawaii's dominant position in commercial banking in Hawaii, and the dominant position of its trust department, 

acquired from Trustco, in the corporate fiduciary field. Finally, smaller commercial banks would have only one independent trust company of significant 

size remaining to which to refer the trust business of their customers.

While the immediate extension of trust services through Bank of Hawaii's 

branch system would be convenient to at least some potential users of trust 

services and would enhance competition in this field with First Hawaiian Bank, 

the Corporation believes that the longer-term effect of the proposed merger 

"may be substantially to lessen competition" in both commercial banking and 

the corporate fiduciary business in the State of Hawaii, to restrict the public's 

choice of alternative sources for both commercial banking and corporate fiduciary services, and to concentrate still further the banking and corporate fiduciary business in a market which is already highly concentrated.

Financial and Managerial Resources; Future Prospects. Both institutions are 

in sound financial condition, ably managed and profitable. Each has enjoyed 

substantial growth, and their future prospects are bright, irrespective of 

whether the proposed merger is consummated. While these factors would also 

be favorable for the resulting bank, they add no significant weight to a determination on the merits of the application.

Convenience and Needs of the Community to be Served. If the proposed 

merger is approved, users of trust services in Hawaii might find it convenient to 

transact their trust business through one of Bank of Hawaii's 58 branches 

located throughout the Islands, rather than being forced to transact such business at locations in Hilo or Honolulu. This convenience would be somewhat 

limited, at least initially, since Bank of Hawaii proposes to have its trust officers travel back and forth to branch locations as needed, centralizing its actual 

trust operations at its principal offices in Honolulu and Hilo. These arrangements would be similar to those now available at branches of First Hawaiian 

Bank. Whatever increase in convenience trust customers would actually experience as a result of the proposed merger, however, could also be achieved by 

Bank of Hawaii's establishment of a trust department de novo.

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Based on the foregoing, the Board of Directors has concluded that the 

anticompetitive effects of the proposed merger are not clearly outweighed in 

the public interest by the probable effect of the proposal in meeting the 

convenience and needs of the community to be served and that the application 

of Bank of Hawaii should, accordingly, be denied.

Resources

(in

thousands

of dollars)

Banking Offices

In

operation

To be

operated

Washington Mutual Savings Bank

Seattle, Washington

807,335 22

to consolidate with

Grays Harbor Savings and 

Loan Association

Aberdeen

5,148 1

Summary report by Attorney General, August 13, 1970

Aberdeen is about 40 miles west of Olympia, the location of the nearest 

office of The Washington Mutual Savings Bank ("Bank"). Bank currently obtains an insignificant portion of its deposits from the service area of The Grays 

Harbor Savings and Loan Association ("Association").

Bank could enter the Aberdeen area by opening a new office (RCW A 

32.04.030). Association is the smallest of the three serving the Aberdeen area, 

and it has less than 8 per cent of the deposits in all such associations in 

Aberdeen. Hence, this consolidation is not likely to have any significantly 

adverse effect on potential competition.

Basis for Corporation denial, December 18, 1970

Washington Mutual Savings Bank, Seattle, Washington ("Washington 

Mutual"), an insured mutual savings bank with total deposits of $744,000,000, 

has applied, pursuant so Section 18(c) and other provisions of the Federal 

Deposit Insurance Act, for the Corporation's prior approval to consolidate with 

Grays Harbor Savings and Loan Association, Aberdeen, Washington ("S&L") 

which has total withdrawable balances of $4,700,000. The institutions would 

consolidate under the charter and title of Washington Mutual and the only 

office of S&L would become a branch of Washington Mutual, increasing the 

number of its offices to twenty-three. Five of these branches resulted from 

mergers approved in 1964 and 1965.

Competition. Washington Mutual is an ably and aggressively managed savings bank. It is, by a substantial margin, the largest mutual thrift institution 

today in the State of Washington, holding approximately 22.9 percent of the 

total deposits held by such institutions—a percentage share which has increased

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142 FEDERAL DEPOSIT INSURANCE CORPORATION

steadily over the past seven years from the 17.9 percent share held at year-end 

1963? The next largest mutual thrift institution in the State is a savings and 

loan association, headquartered in Tacoma, less than one-third the size of 

Washington Mutual, holding approximately 6.8 percent of the total deposits 

held by such thrift institutions. Only two other thrift institutions exceed $100 

million in deposit size, while the remaining 71 range from very small institutions up to $85 million in deposit size.2

Savings banks and savings and loan associations in Washington may branch 

de novo or by merger throughout the State. Mutual savings and loan associations under State law may become mutual savings banks and the two types of 

institutions may merge with one another following such a conversion.

Washington Mutual operates twenty-two offices throughout the State, and 

has three additional offices authorized but unopened. Its office nearest to 

Aberdeen, where S&L is located, is in Olympia, the State capital, fifty miles to 

the east. Neither institution derives more than a nominal amount of business 

from areas presently served by the other, and their proposed merger, accordingly, would not eliminate any meaningful existing competition.

S&L is the fourth largest of five mutual thrift institutions serving approximately 62,500 people in the Aberdeen-Hoquiam area. The three larger mutual 

thrift institutions have, respectively, $30 million, $17 million and $9 million in 

withdrawable shares. Because of its limited resources and the distances involved, S&L is unlikely to branch de novo into areas now served by Washington 

Mutual but Washington Mutual has a proven capability and success in opening 

denovo branches, and could in the normal course enter the Aberdeen-Hoquiam 

area in this way if the proposed merger is denied. The proposed merger would 

eliminate this potential for increased competition between Washington Mutual 

and S&L in the Aberdeen-Hoquiam area.

More importantly, the proposed merger would establish a significant precedent for the approval of additional mergers in highly concentrated markets 

in the State of Washington and elsewhere, among commercial banks as well as 

mutual thrift institutions, with the cumulative effect of further concentrating 

the banking resources of a given market in the largest institutions which operate there. As such concentration continues, the public's choice of alternate 

sources of banking services is likely to diminish. Given the fact that Washington 

Mutual is more than three times the size of the next largest mutual thrift 

institution in the State and that it already controls 22.9 percent of total thrift 

institution deposits on a Statewide basis, approval of the proposed merger 

could easily lead to other merger proposals on the part of Washington Mutual

1 For the reasons stated in its October 1, 1970, statement accompanying the denial of 

the application of United Mutual Savings Bank, Tacoma, to merge with State Mutual 

Savings Bank, Tacoma, the Corporation considers the decisive line of commerce for assessing the competitive implications of the proposed merger to be “thrift institution banking" 

as offered by mutual savings banks and mutual savings and loan associations in the State of 

Washington.

2Commercial banking is similarly concentrated in the State of Washington. Only two 

commercial banks exceed Washington Mutual in size and they hold 53.0 percent of total 

commercial bank deposits. Six other commercial banks exceed $100 million in deposit 

size, representing in the aggregate an additional 30.0 percent of total commercial bank 

deposits. Some 93 smaller commercial banks hold the balance.

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to extend its branch system into new areas by the merger route rather than by 

the establishment of de novo branches, thus losing successive opportunities for 

increasing the public's choice of banking alternatives in each area. A denial of 

the proposed merger, on the other hand, would encourage S&L to seek out a 

different merger partner from among the State's 73 other mutual thrift institutions, thereby also preserving the possibility of more effective competition 

against Washington Mutual in the future from among the State's other thrift 

institutions.

The Corporation believes that the Bank Merger Act as amended requires 

consideration of the long-term competitive implications of a proposed merger 

as well as its short-term effects. In situations where one of the institutions 

involved in a proposed merger already has such a large share of its potential 

market as Washington Mutual, the Corporation further believes that additions 

by merger to its existing strength should be avoided unless (i) significant improvements in banking service can be achieved only by consummation of the 

proposed merger or (ii) the condition of the institution to be merged is such 

that an immediate resolution of its problems appears to be necessary to prevent 

a failure.

Convenience and Needs of the Community to be Served. The proposed 

merger would bring to S&L's customers certain services not presently offered 

by S&L: FHA and VA mortgage loans, home improvement loans, limited personal trust services, student loans, and certain other types of personal loan 

services, all of which Washington Mutual can and does offer in accordance with 

State law. No claim is made, however, that any banking needs of the public in 

the Aberdeen-Hoquiam area are going unmet today, and each of these services 

appears to be available at one or more of the mutual thrift institutions or 

commercial banks with offices in the area. S&L and Washington Mutual, moreover, pay the same rate of interest on regular deposits, i.e., the highest permitted under current Federal ceilings, and S&L also offers 5% percent and 6 

percent certificates. The slight benefit in convenience of having one more local 

source for the services offered by Washington Mutual but not by S&L could 

also be achieved by S&L's merger with a number of the other mutual savings 

banks in the State. No finding, accordingly, can be made that there would be 

significant improvements in banking service in the Aberdeen-Hoquiam area or 

that these improvements can be achieved only by S&L's merger with 

Washinqton Mutual.

Financial and Managerial Resources; Future Prospects. The Corporation's 

examination of S&L as of the close of business July 13, 1970 disclosed a 

conservatively run association with no classified assets, minimal depreciation in 

the securities account, decent earnings, adequate surplus, and a record of slow 

deposit growth over the years. The only weakness in S&L's current condition 

involves the advanced age of its two principal operating officers (both of whom 

have been with S&L since 1924) and a lack of management depth. While the 

management succession problem could be resolved by the proposed merger, it 

could also be resolved by merger with a less dominant mutual thrift institution. 

The record, moreover, indicates no effort by S&L to recruit the successor 

management it claims to need or any inability on its part to pay the salaries 

needed to attract such management. In these circumstances, it cannot be said 

that the condition of S&L is such that an immediate resolution of its problems 

appears to be necessary to prevent a failure.

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144 FEDERAL DEPOSIT INSURANCE CORPORATION

While the financial and managerial resources and future prospects of both 

institutions are consistent with approval, they lend no decisive weight to a 

determination on the application.

On these facts, the Corporation concludes that approval of the proposed 

merger is not warranted.

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Federal Reserve Bank of St. Louis
LEGISLATION AND REGULATIONS

PART THREE

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147

Bank Holding Company Act Amendments of 1970. Many observers view the Bank Holding Company Act Amendments of 1970

(Public Law 91-607; 84 Stat. 1760) as the most significant item of

banking legislation to emerge from Congress since enactment of the

Banking Act of 1935 (49 Stat. 684) if not, indeed, since enactment

of the Federal Reserve Act (38 Stat. 251) in 1913.

The basic objective in regulating bank holding companies is to

restrict holding company operations to fields clearly related to

banking and to prevent such companies from reducing competition

in the banking industry. If these companies were unregulated, their

ability to coordinate their banking subsidiaries with other business

ventures would discourage competition for banking services. An

absence of regulation might also tend to concentrate American business under the holding companies which control the lending resources of major banks. Prompted by changing business practices

and especially by a sudden increase in the number of one-bank

holding companies, Congress, through enactment of the Bank Holding Company Act Amendments of 1970, made a number of important adjustments in the Federal bank holding company laws.

The first of these amendments broadened the scope of the Bank

Holding Company Act of 1956, as amended (12 U.S.C. 1841-1849),

by eliminating several exceptions. When the holding company laws

were last reexamined in 1966, almost all the one-bank holding

companies involved small or "country" banks. A sa result. Congress

continued the exemption given one-bank holding companies. However, during the next three years, a substantial number of the largest

banks in the country became the property of one-bank holding

companies, with dealings in many fields. Although Congress found

no abuse of these arrangements, the potential for frustrating the

objectives of the Act were so great that Congress felt compelled, in

enacting the Bank Holding Company Act Amendments of 1970, to

eliminate the exemption for one-bank holding companies. The exemption once given to partnerships which control banks was also

eliminated, as was the exemption of a bank holding stock in trust

when such bank has exclusive voting rights.

In recognition of the fact that even relatively small blocks of

stock can control a widely held corporation, Congress tightened the

definition of "control." It authorized the Board of Governors of

the Federal Reserve System to determine that a company is in

control of a bank, even when it holds less than 25 percent of any

voting class of stock of the bank, if the company directly or indirectly exercises a controlling influence over the management or

FEDERAL LEGISLATION - 1970

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148 FEDERAL DEPOSIT INSURANCE CORPORATION

policies of the bank. When holdings exceed 25 percent, the Act

retains the rule that the holding company has a controlling position.

The changes in scope just described could have created serious

divestiture problems for the smaller banks which had never before

been within the scope of the Bank Holding Company Act of 1956.

Hence, Congress added a new section 4(d) to the Act. It permits the

Board of Governors of the Federal Reserve System, in its discretion,

to grant exemptions from the Act to any bank holding company

which controlled only one bank on July 1, 1968, and has not since

acquired a second bank. Any such exemption must, however, be

consistent with the purposes of the Act. Appropriate situations for

an exemption include (1) long-established business relationships

which have never adversely affected the banks or communities involved, (2) cases where a forced sale of a small locally owned bank

would transfer control to purchasers not as representative of

community interests as the present owners, or (3) situations where

the bank is so small in relation to the holding company's total

interests and so small in relation to the local banking market as

to m inim ize the likelihood that the bank's credit-granting

powers can be used to influence the holding company's other

interests.

To further alleviate the divestiture problem. Congress inserted a

"grandfather clause" in section 4(a) of the Act. Since the evils to be

remedied were prospective. Congress felt that it was unnecessary to

force divestiture of all the large banks recently acquired by onebank holding companies. Hence, the Bank Holding Company Act

Amendments of 1970 allow a company which became a bank holding company as a result of the amendments to continue any activity

in which it was lawfully engaged on June 30, 1968, or in which it

became engaged after that date as a result of an acquisition pursuant to a binding contract entered into on or before June 30,

1968, so long as it or one of its subsidiaries has been continuously

engaged in the activity since June 30, 1968. In order to prevent this

exemption from becoming an umbrella for undesirable activities,

the Board of Governors of the Federal Reserve System was given

power to terminate the exemption whenever it determines that such

action is necessary to prevent undue concentration of resources,

decreased or unfair competition, conflicts of interest, or unsound

banking practices. This decision must, however, be made within 2

years after December 31, 1970, if the banking subsidiary's assets

exceed $60,000,000, or 2 years after the date on which the banking

subsidiary's assets first exceed $60,000,000.

One of the most important parts of the Bank Holding Company

Act of 1956 is section 4(c)(8). It establishes the primary test to be

used by the Board of Governors of the Federal Reserve System in

deciding whether an acquisition by or activity of a bank holding

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FEDERAL LEGISLATION— 1970 149

company is permissible. There was significant pressure in the Congress to liberalize this standard, and Congress did in fact redraft the

test. There is, however, a division of opinion as to whether the

change in wording amounts to a liberalization of the law.

Prior to amendment, section 4(c)(8) required the Board of

Governors, after due notice and hearing, to find that the activities

of an acquired company are—

... of a financial, fiduciary, or insurance nature [and] ... so

closely related to the business of banking or of managing or

controlling banks as to be a proper incident thereto and as to

make it unnecessary for the prohibitions of this section [4] to

apply in order to carry out the purposes of this A c t;. . .

As amended, the subsection required the Board, after notice and

opportunity for hearing, to find that the activities of an acquired

company are—

... so closely related to banking or managing or controlling

banks as to be a proper incident thereto. In determining whether

a particular activity is a proper incident to banking or managing

or controlling banks the Board shall consider whether its performance by an affiliate of a holding company can reasonably be

expected to produce benefits to the public, such as greater convenience, increased competition, or gains in efficiency, that outweigh possible adverse effects, such as undue concentration of

resources, decreased or unfair competition, conflicts of interests,

or unsound banking practices ....

The Board is also permitted to distinguish newly created affiliates

from acquired affiliates because the former more often tend to

introduce additional competition.

It appears that this change may result in a widened range of

approved activities for bank holding companies. The acquired

operations need no longer be of a financial, fiduciary, or insurance

nature, and the test balancing public benefits against adverse effects

could easily extend the notion of what is a proper incident to

banking.

The Board of Governors' present practice of allowing potential

competitors of a new acquisition to appear as parties in interest is

also confirmed and formalized by the amendments. As amended,

the Act allows anyone who may become a competitor of an applicant or a subsidiary of an applicant to intervene with the full rights

of a party in interest in Board proceedings when the applicant seeks

authorization to acquire a bank or nonbank enterprise.

Finally, it should be noted that the entire authority for regulating bank holding companies and for implementing the Act remains with the Board of Governors of the Federal Reserve System

and is not divided among the agencies which regulate the particular

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150 FEDERAL DEPOSIT INSURANCE CORPORATION

banks controlled by a holding company.

Tying arrangements involving banks. Section 106 of the Bank

Holding Company Act Amendments of 1970 (Public Law 91-607;

84 Stat. 1766) contains provisions prohibiting any bank from extending credit or furnishing any other service, or varying the consideration therefor, upon condition that a customer obtain or provide any additional credit, property, or service from or to the lending bank (except a loan, discount, deposit, or trust service, or a

service related thereto), its parent holding company, or any subsidiary of the holding company. It also prohibits any bank from extending credit or furnishing any other service on condition that the

customer refrain from obtaining any credit or service from a competitor of the bank or of any affiliate thereof, except as may

reasonably be necessary to assure the soundness of the credit extended. The Board of Governors has authority to grant such exceptions to these prohibitions as it considers not to be contrary to the

purposes of section 106.

Section 106 applies to all banks, whether or not they are affiliated with holding companies. Its purpose is to prevent banks from

engaging in certain anticompetitive practices. The legislative history

makes clear, however, that there was no intent to interfere with the

conduct of appropriate traditional banking practices. The report of

the Senate Committee on Banking and Currency stated, for

example, as follows:

This will enable the customer to continue to negotiate with the

bank on the basis of his entire relationship with the bank. For

example, where the customer uses multiple banking services such

as deposit, loan, fiduciary, and commercial accounts or facilities,

the parties may be free to fix or vary the consideration for any

services upon the existence or extent of utilization of such banking services. Similarly, the language is not intended to affect bank

correspondent relationships, but insures that traditional correspondent relationships cannot be perverted by being tied to or

conditioned upon maintenance or establishment of relationships

with nonbank subsidiaries of bank holding companies, or with

businesses operated within the bank or by the people controlling

a bank. Also, the language is not intended to prevent such traditional banking practices which protect extensions of credit by

agreement to restrict other borrowing, but insures that such

agreements may not be tied to or conditioned upon an agreement

not to do business with competitors of other subsidiaries of the

bank holding company, the bank, or of the operators of the

bank. (S. Rep. No. 91-1084, 91st Cong., 2d sess. 17 (1970)).

Enforcement of section 106 is the responsibility of the U.S.

attorneys under the direction of the Attorney General. The section

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FEDERAL LEGISLATION— 1970 151

also gives private parties the right to sue for injunctive relief and for

treble damages when they have sustained or are threatened with loss

or damage as a result of a violation of the statutory prohibitions.

Financial recordkeeping and reporting. Title I of the Act of

October 26, 1970 (Public Law 91-508; 84 Stat. 1114) contains

provisions designed to subject certain financial transactions to greater public scrutiny. Through an amendment to the Federal Deposit

Insurance Act, as amended (12U.S.C. 1811-1831), it states findings

by Congress—

. .. that adequate records maintained by insured banks have a

high degree of usefulness in criminal, tax, and regulatory investigations and proceedings [and] . .. that microfilm or other reproductions and other records made by banks of checks, as well

as records kept by banks of the identity of persons maintaining

or authorized to act with respect to accounts therein, have been

of particular value in this respect.

Accordingly, the purpose of the amendment to the Federal Deposit

Insurance Act is to require the maintenance of appropriate types of

records by insured banks in the United States where such records

have a high degree of usefulness in criminal, tax, or regulatory

investigations or proceedings, in accordance with regulations prescribed by the Secretary of the Treasury.

While the amendment appears to give the Secretary considerable

discretion in determining the types of records and other evidence to

be maintained and the form and content thereof, it virtually directs

him to prescribe certain regulations in this area. These regulations

will require insured banks, at a minimum, to (1) maintain records

and other evidence of the identity of each person having an account

in the United States with them and of each person authorized to

sign checks, make withdrawals, or otherwise act with respect to any

such account; (2) make a microfilm or other reproduction of

each check, draft, or similar instrument drawn on them and presented to them for payment; (3) make a record of each check,

draft, or similar instrument received by them for deposit or collection, together with an identification of the party for whose account

it is to be deposited or collected; and (4) retain evidence of the

identity of any individual engaging in a transaction with them involving the payment, receipt, or transfer of U.S. currency.

Through an amendment to title IV of the National Housing Act,

as amended (12 U.S.C. 1724-1730c), title I of the Act of October

26, 1970, also directs the Secretary of the Treasury to prescribe

such regulations as are appropriate to carry out, with respect to

institutions insured by the Federal Savings and Loan Insurance Corporation, the purposes set forth in the amendment to the Federal

Deposit Insurance Act.

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Finally, in recognition of the fact that noninsured banks and

institutions and persons carrying on certain other functions engage

in functions similar to those participated in by insured banks and

institutions— namely, issuing or redeeming checks, money orders,

travelers' checks, or similar instruments; transferring funds or

credits domestically or internationally; operating a currency exchange or otherwise dealing in foreign currencies or credits;

operating a credit card system; or performing such similar, related,

or substitute functions for the functions enumerated or for banking—this title of the Act authorizes the Secretary of the Treasury to

prescribe certain pertinent regulations. Such banks, institutions, or

persons may be required to (1) require, retain, or maintain, with

respect to their functions, any records or evidence of any type

which the Secretary is authorized under the amendment to the

Federal Deposit Insurance Act to require insured banks to require,

retain, or maintain; and (2) maintain procedures designed to assure

compliance with any such requirements. Moreover, it permits him

to require noninsured banks and institutions of any type to make

appropriate reports with respect to their ownership, control, and

managements and any changes therein.

As to persons and organizations other than insured banks and

institutions, whenever the Secretary has reasonable cause to believe

that any person has engaged, is engaged, or is about to engage in

any acts or practices constituting a violation of any regulation prescribed by him pursuant to this title of the Act of October 26,

1970, he may bring an action to enjoin such acts or practices.

Furthermore, for each willful violation by any such person of any

such regulation, he may assess upon any person to which the regulation applies—or, if the person is a partnership, corporation, or other

entity, upon any partner, director, officer, or employee thereof

who willfully participates in the violation—a civil penalty not exceeding $1,000. Finally, any such person who willfully violates any

such regulation may, upon conviction, be fined not more than

$1,000 or imprisoned for not more than 1 year, or both.

Any person or organization (including any insured bank or insured institution) to whom or to which the Secretary's regulations

may apply who willfully violates any such regulation, where the

violation is, committed in furtherance of the commission of any

violation of Federal law punishable by imprisonment for not more

than 1 year, is subject to a fine of not more than $10,000 or to

imprisonment for not more than 5 years, or both.

The Secretary's responsibility for assuring compliance with the

requirements of this title of the Act of October 26, 1970, may be

delegated to the appropriate bank supervisory agency or other

supervisory agency, in the discretion of the Secretary. Presumably,

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FEDERAL LEGISLATION— 1970 153

those agencies are authorized to invoke sanctions available to them

under other statutes for the purpose of enforcing compliance with

the Secretary's regulations.

Under the provisions of section 401 of the Act of October 26,

1970, the financial recordkeeping and reporting requirements of

this title of the Act take effect on May 1, 1971. However, the

Secretary of the Treasury may by regulation provide that the requirements shall be effective on any date not earlier than publication of the regulation in the Federal Register and not later than

November 1, 1971.

Currency and Foreign Transactions Reporting Act. The Currency

and Foreign Transactions Reporting Act, enacted by title II of the

Act of October 26, 1970 (Public Law 91-508; 84 Stat. 1118), is

designed to further the purpose of Congress to require certain reports or records where such reports or records have a high degree of

usefulness in criminal, tax, or regulatory investigations or proceedings.

In its simplest terms, it requires transactions involving any

domestic financial institution to be reported to the Secretary if

they involve the payment, receipt, or transfer of U.S. currency, or

such other monetary instruments as the Secretary may specify, in

such amounts, denominations, or both, or under such circumstances, as the Secretary's regulations may require. "Domestic

financial institution" is defined by the Act as including, among

other things, an insured bank; a commercial bank or trust company;

a private banker; an agency or a branch within the United States of

any foreign bank; an institution insured by the Federal Savings and

Loan Insurance Corporation; a savings bank, building and loan

association, credit union, industrial bank, or other thrift institution;

and any other type of business or institution performing similar,

related, or substitute functions specified by the Secretary of

the Treasury. The term "domestic," used with reference to

"financial institution," limits the applicability of the requirement

to the performance by such an institution of functions within the

United States. The term "monetary instruments" means—

... coin and currency of the United States, and in addition,

such foreign coin and currencies, and such types of travelers

checks, bearer negotiable instruments, bearer investment securities, bearer securities, and stock with title passing upon delivery,

or the equivalent thereof, as the Secretary may by regulation

specify.. ..

The Act requires reports of domestic currency transactions to be

signed or otherwise made both by the domestic financial institution

involved and by one or more of the other parties to or participants

in any such transaction, as the Secretary may require. If any party

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to or participant in any such transaction is not an individual acting

only for himself, the report must identify the person or persons on

whose behalf the transaction is entered into and must be made by

the individual acting as agent or bailee with respect thereto.

The form and content of reports with respect to domestic currency transactions, as well as the reporting procedure to be followed, are left largely to the discretion of the Secretary of the

Treasury.

Secondly, the Act requires the filing of a report with the Secretary of the Treasury by any person who, whether as principal,

agent, or bailee, or by an agent or bailee, knowingly (1) transports

or causes to be transported monetary instruments in an amount

exceeding $5,000 on any one occasion either from any place within

the United States to or through any place outside the United States

or to any place within the United States from or through any place

outside the United States; or (2) receives monetary instruments in

an amount exceeding $5,000 on any one occasion at the termination of their transportation to the United States from or through

any place outside the United States. The Secretary may require that

any such report identify (1) the legal capacity in which the person

filing the report is acting with respect to the monetary instruments

transported; (2) the origin, destination, and route of the transportation; (3) where the monetary instruments are not legally and beneficially owned by the person transporting them, or are transported

for any purpose other than the use in his own behalf of the person

transporting them, the identity of the person from whom the monetary instruments are received, or to whom they are to be delivered,

or both; and (4) the amounts and types of monetary instruments

transported. Monetary instruments transported in violation of these

requirements, or with respect to which a report contains material

omissions or misstatements, are subject to seizure and forfeiture to

the United States. Moreover, the Secretary may assess a civil penalty, not exceeding the amount of monetary instruments with

respect to whose transportation a report is required to be filed and

reduced by the amount of any forfeiture, upon any person who

fails to file a report regarding the exportation or importation of

monetary instruments or who files a report containing any material

omission or misstatement.

Finally, the Act directs the Secretary of the Treasury to prescribe

regulations requiring residents or citizens of the United States, or

persons in the United States and doing business therein, to maintain

records and to file reports regarding their direct or indirect transactions or relationships with foreign financial agencies. The Secretary

is required, in prescribing such regulations, to recognize the need to

avoid impeding or controlling the export or import of currency or

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FEDERAL LEGISLATION— 1970 155

ably burdening persons who legitimately engage in transactions with

foreign financial agencies. For the purposes of the requirement, the

term "financial agency" means—

. . . any person which acts in the capacity of a financial institution or in the capacity of a bailee, depository trustee, agent, or in

any other similar capacity with respect to money, credit, securities, or gold or transactions therein, on behalf of any person

other than a government, a monetary or financial authority when

acting as such, or an international financial institution of which

the United States is a member.

The Secretary's regulations may require that such records and reports set forth information regarding (1) the identities and addresses of the parties to any such transaction or relationship; (2) the

legal capacities in which the parties to the transaction or relationship are acting and the identities of the real parties in interest if the

parties are not acting solely as principals; and (3) a description of

the transaction or relationship, including the amounts of money,

credit, or other property involved. No person required to maintain

any such records may be required to produce or otherwise disclose

the contents of the records except in compliance with a subpoena

or summons duly authorized and issued or as may otherwise be

required by law.

The Act vests the Secretary of the Treasury with a variety of

enforcement powers, both civil and criminal, for assuring compliance with the recordkeeping and reporting requirements imposed

by the Act. Moreover, it authorizes him to prescribe such regulations as he may deem appropriate to carry out the purposes of the

Act, to grant conditional or unconditional exemptions from any

requirements otherwise imposed, and to delegate his responsibility

for assuring compliance with the requirements of the Act to the

appropriate bank supervisory agency or other supervisory agency.

Under the provisions of section 401 of the Act of October 26,

1970, the Currency and Foreign Transactions Reporting Act takes

effect on May 1, 1971. However, the Secretary of the Treasury may

by regulation provide that the Act shall be effective on any date not

earlier than publication of the regulation in the Federal Register

and not later than November 1, 1971.

Credit card legislation. In October, Congress enacted legislation

which, effective upon the date of its enactment (October 26, 1970),

prohibits the issuance of unsolicited credit cards and, 90 days after

the date of enactment, limits the liability of a cardholder for the

unauthorized use of his card.

Under the provisions of section 502 of the Act of October 26,

1970 (Public Law 91-508; 84 Stat. 1126), which adds new sections

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156 FEDERAL DEPOSIT INSURANCE CORPORATION

132 through 134 to the Truth in Lending Act, as amended (15

U.S.C. 1601-1665), no credit card, except a credit card issued in

renewal of or in substitution for an accepted credit card, may now

be issued except in response to a request or application therefor.

After January 24, 1971, no cardholder is liable for the unauthorized use of a credit card issued after that date unless (1) the

card is an accepted credit card, (2) the liability is not in excess of

$50, (3) the card issuer has given adequate notice to the cardholder

of the potential liability, (4) the card issuer has provided the cardholder with a self-addressed, prestamped notification to be mailed

by the cardholder in the event of loss or theft of the card, (5) the

unauthorized use occurs before the cardholder has notified the card

issuer that an unauthorized use of the credit card has occurred or

may occur as the result of loss, theft, or otherwise, and (6) the card

issuer has provided a method whereby the user of the credit card

can be identified as the person authorized to use it. After January

24, 1972, no cardholder is liable for the unauthorized use of any

credit card—regardless of the date of its issuance—unless these prescribed conditions of liability are met.

On and after October 26, 1970, whoever, in a transaction affecting interstate or foreign commerce, uses any counterfeit, fictitious,

altered, forged, lost, stolen, or fraudulently obtained credit card to

obtain goods or services, or both, having a retail value aggregating

$5,000 or more may be fined not more than $10,000 or imprisoned

not more than 5 years, or both.

Authority to prescribe regulations implementing these new sections of the Truth in Lending Act is vested in the Board of

Governors of the Federal Reserve System by previously existing

sections of that Act.

Fair Credit Reporting Act. A good credit record is one of the

most valuable assets anyone can have. Yet, it has been almost impossible for an individual to keep his record complete and free of

errors. Even the careless or intentional misuse of records has been

beyond a consumer's control. To correct these and other inequities,

Congress, by section 601 of the Act of October 26, 1970 (Public

Law 91-508; 84 Stat. 1127), amended the Consumer Credit Protection Act, as amended (15 U.S.C. 1601-1675), by adding a new title

VI, called the "Fair Credit Reporting Act,” which takes effect on

April 25, 1971.

The amendment imposes duties upon both suppliers and users of

information gathered on individuals whenever (1) the information

transmitted constitutes a "consumer report" and (2) the party

supplying the information is a "consumer reporting agency." A

"consumer report" is any communication of any information by a

consumer reporting agency bearing on an individual's credit rating.

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character, reputation, personal characteristics, or mode of living

which is collected for the purpose of serving as a factor in establishing the individual's eligibility for (1) credit or insurance used primarily for personal, family, or household purposes, (2) employment,

or (3) any other privilege or benefit which arises from what would

be a permissible use of a consumer report. The Act expressly excludes from this definition (1) reports relating solely to transactions

or experiences between a consumer and the person making the

report, (2) any authorization of a specific extension of credit by the

issuer of a credit card or similar device, and (3) any report in which

a person who has been requested by a third party to make a specific

extension of credit to an individual conveys his decision about the

request, so long as the third party and the person to whom the

request was made make certain disclosures. A "consumer reporting

agency" is any entity which, for monetary fees, dues, or on a cooperative nonprofit basis, regularly assembles or evaluates information

on individuals for the purpose of furnishing consumer reports to

third parties and which uses some means of interstate commerce in

preparing or furnishing consumer reports.

The permissible purposes for which a consumer report may be

given are restricted by the Act. Such a report may always be given

in response to a valid court order or with the written permission of

the individual described in the report. It is also permissible to use

reported information about an individual in connection with (1) an

extension of credit to, or the review or collection of an account of,

the individual; (2) employment; (3) the underwriting of insurance

involving the individual; or (4) a determination of the individual's

eligibility for a license or other benefit granted by a governmental

instrumentality required by law to consider an applicant's financial

responsibility or status. To assure that this specific list does not

unnecessarily hamper commerce, the Act also permits reporting to

any person or business having a legitimate business need for the

information in connection with a business transaction involving the

individual. In addition, a consumer reporting agency may furnish an

individual's name and present as well as former addresses and places

of employment to any governmental agency without regard to the

agency's purpose.

Just as there are limits on those who may receive consumer reports, so too, the amendment regulates what may be included in a

report. The agency must follow procedures which insure maximum

accuracy and all obsolete information must be omitted from consumer reports except where large amounts of credit, insurance, or

salary are involved. Most adverse information is considered obsolete

if it antedates the report by more than 7 years. The sole exception

is for bankruptcies, which may be reported unless the most recent

adjudication antedates the report by more than 14 years.

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158 FEDERAL DEPOSIT INSURANCE CORPORATION

While the restrictions on use and content offer some protection

to individuals, the most valuable aspects of the amendment are its

disclosure obligations and correction procedures. Every consumer

reporting agency must disclose to an individual the nature and substance of almost all the information in its files on that individual, as

well as the sources of the information and the names of all recent

recipients of a consumer report on the individual. Medical information is excluded from this requirement. The other major exception

excludes sources used and reports made prior to April 25, 1971,

except to the extent that the nonmedical information involved remained in the files on that date. If an individual disputes the completeness or accuracy of any item disclosed to him, then the agency

must reinvestigate that matter unless it reasonably believes the

challenge is frivolous or irrelevant. If the information proves inaccurate or cannot be verified, it must be deleted, and, if reinvestigation does not resolve the dispute, the individual may file a brief

statement describing his position. The consumer reporting agency

must note the dispute and include the statement or a fair summary

of it in every report discussing the disputed issue. Regardless of

whether information is deleted or a notation is added, the consumer

reporting agency must, upon request by the individual, furnish the

statement or notice of the deletion to parties who recently received

a consumer report.

All the obligations discussed above affect consumer reporting

agencies, but the Act also places requirements on users of consumer

reports. Anyone who uses a consumer report must give the individual to whom it relates the name and address of the reporting

agency which supplied information that results in the user's adverse

action on an application for employment or for credit or insurance

for personal, family, or household purposes. Whenever the individual promptly requests it, the amendment also requires disclosure of

the nature of the adverse information if it leads to a refusal of, or

an increased charge for, personal, family, or household credit and

came from someone other than a consumer reporting agency.

A somewhat different pattern of regulation applies to "investigative consumer reports." These consist of consumer reports supplemented with information on an individual's character, reputation, personal characteristics, or mode of living obtained through

personal interviews. Because there would be no way to gather most

investigative information if sources were disclosed, the Act does not

apply a disclosure-of-source requirement to investigative consumer

reports so long as the information is not used for a purpose different from that for which the report was prepared. Yet, this will

generally make it impossible for an individual to use the procedure

for disputing the accuracy of information. To compensate for this

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disadvantage, the Act provides that no adverse information, other

than that taken from a public record, may be included in an investigative consumer report made more than 3 months subsequent to

the last verification of the adverse information unless the information is again verified. For the same reason, a user must give the

individual notice of the investigation no more than 3 days after

requesting an investigative consumer report unless the report is required for employment considerations not specifically initiated by

the individual. The notice must disclose that the individual may, by

written request, force the procurer to disclose the nature and scope

of the investigation.

Because employment is probably the most basic transaction requiring a good performance record, man of the Act's requirements

are stronger when reports are, or were, sought for employment

purposes. Even when a consumer reporting agency transmits information available in public records, the agency must notify the

individual that this information is being reported and give the name

and address of the recipient if the information might have an adverse effect on the individual's employment.

In order to assure compliance, the Act creates a Federal cause of

action, without regard to the amount in controversy, for any

individual damaged by noncompliance with the Act. There are also

criminal sanctions against obtaining information under false pretenses or providing information to a person not authorized to receive it. Almost all the responsibility for enforcement of the Act is

given to the Federal Trade Commission, and any violation of the

Act will be considered an unfair or deceptive act or practice in

violation of the Federal Trade Commission Act. With respect to

insured banks, however, authority for administrative enforcement is

vested in the three Federal bank regulatory agencies, following the

pattern already established by title I of the Consumer Credit Protection Act. This means the Act can also be enforced as to banks

through termination of insurance, cease-and-desist, and suspension

or removal of directors or officers proceedings.

Margin requirements on foreign loans. Under section 7 of the

Securities Exchange Act of 1934 (15 U.S.C. 78g), the Board of

Governors of the Federal Reserve System has authority to regulate

the extension of credit collateralized by securities. Prior to 1970,

however, it was unclear whether this authority extended to

borrowers as well as lenders. The increased use of foreign loans to

finance the purchase of securities in the United States, particularly

in connection with attempted corporate takeovers, led to the enactment in 1970 of legislation authorizing the Board of Governors to

regulate borrowing abroad by U.S. persons, or foreign persons

controlled thereby or acting on behalf thereof, for the purpose of

purchasing or carrying securities.

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Title III of the Act of October 26, 1970 (Public Law 91-508; 84

Stat. 1124) added a new subsection (f) to section 7 of the Securities

Exchange Act of 1934 making it unlawful for any U.S. citizen or

resident, any domestic organization, estate, or trust, or any foreign

person controlled by or acting for such a U.S. person to borrow

abroad for the purpose of purchasing or carrying any securities in

the United States or any U.S. securities abroad, unless the loan

complies with Federal Reserve margin regulations. The statute permits the Board of Governors to make this prohibition effective by

regulation not later than November 1, 1971,

Housing and Urban Development Act of 1970. On December 31,

1970, the President approved the Housing and Urban Development

Act of 1970 (Public Law 91-609; 84 Stat. 1770). The purpose of

this Act, among other things, is to provide for the establishment of

a national urban growth policy, to encourage and support the proper growth and development of the States, metropolitan areas, cities,

counties, and towns, with emphasis upon new community and

inner-city development, and to extend and amend laws relating to

housing and urban development.

Briefly, the Act establishes a community development corporation within the Department of Housing and Urban Development to

administer a new program of financial assistance for the development of new communities; extends and provides funds for existing

housing and urban development programs; amends various statutes

governing the administration and operation of many of those programs; and authorizes the Secretary of Housing and Urban Development to write essential property insurance for homeowners and

small businessmen in those instances in which private insurance is

either unavailable or is available only at unreasonable rates. It also

amends statutes governing the operations of savings and loan associations to increase from 15 percent to 20 percent of assets the

amount that a Federal savings and loan association may invest in

multifamily housing and to increase from 1 year to 5 years the

maturity on advances by the Federal home loan banks to member

savings and loan associations.

Three sections of the Act should be of particular interest to

insured banks.

Section 908 makes permanent the authority of the Federal Deposit Insurance Corporation, the Board of Governors of the Federal

Reserve System, the Comptroller of the Currency, the Federal

Home Loan Bank Board, and the Federal Savings and Loan Insurance Corporation (1) to issue temporary and permanent ceaseand-desist orders to insured institutions for violations of law, rule,

regulation, charter, or written condition or agreement or for unsafe

or unsound practices and (2) to take action to suspend or remove

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FEDERAL LEGISLATION— 1970 161

officers or directors of insured institutions for violations of law,

rule, regulation, or final cease-and-desist order, or for engaging or

participating in any unsafe or unsound practice, when personal dishonesty is involved. This section of the Act also makes permanent

the authority of those regulatory agencies to suspend or remove

persons convicted of any criminal offense involving dishonesty or a

breach of trust or charged with a felony of that nature. By express

provisions of the Financial Institutions Supervisory Act of 1966

(Public Law 89-695; 80 Stat. 1028), which originally conferred the

authority, all of the authority had been scheduled to expire at the

close of June 30, 1972.

Section 910 of the Housing and Urban Development Act of 1970

amends sections 3 and 7 of the Federal Deposit Insurance Act, as

amended (12 U.S.C. 1813, 1817), to make banks in American

Samoa eligible for Federal deposit insurance, to include branches

located in American Samoa within the definition of the term

"branch," and to include obligations of a bank that are payable

only at an office located in American Samoa within the definition

of the term "deposit," thereby making such obligations a part of

total deposits as well as a part of an insured deposit.

Finally, section 915 of the Act amends section 1014 of title 18,

U.S. Code, so that, on and after December 31, 1970, whoever

knowingly makes any false statement or report, or willfully overvalues any land, property, or security, for the purpose of influencing in any way the action of any insured bank upon any

application, advance, discount, purchase, purchase agreement, repurchase agreement, commitment, or loan, or any change or extension thereof, by renewal, deferment of action, or otherwise, or the

acceptance, release, or substitution of security therefor, may be

fined not more than $5,000 or imprisoned not more than 2 years,

or both. Prior to the date of the amendment, section 1014 extended to false statements or reports and to overvaluations made to

Federal savings and loan associations, small business investment

companies, and Federal credit unions, among other types of financial organizations, but not to false statements or reports or to overvaluations made to federally insured banks.

Amendments to the Securities Exchange Act of 1934. Since

1965, the registration and reporting requirements imposed by sections 13(d), 13(e), 14(d), and 14(e) of the Securities Exchange Act

of 1934, as amended (15 U.S.C. 78 m(d), 78m(e), 78n(d), and

78n(e)), have applied to securities issued by banks. With respect to

securities issued by insured banks, the functions, powers, and duties

vested in the Securities and Exchange Commission to administer

and enforce sections 13(d), 13(e), and 14(d) of that Act are vested

in the three Federal bank regulatory agencies.

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162 FEDERAL DEPOSIT INSURANCE CORPORATION

Generally, sections 13(d) and 14(d) of the Securities Exchange

Act of 1934 have required the filing of a statement with the Securities and Exchange Commission by any person who acquired the

beneficial ownership of more than 10 percent of any equity

security of a class which was registered under section 12 of the

Securities Exchange Act of 1934, as amended (15 U.S.C. 78I), or

who made a tender offer for, or a request or invitation for tenders

of, more than 10 percent of any class of equity security which was

so registered. In addition to such other information as the Commission might have prescribed as necessary or appropriate in the

public interest or for the protection of investors, the statement had

to contain information bearing on (1) the identity, background, and

plans of the person acquiring the security or making a tender offer

for, or a request or invitation for tenders of, the security; (2) the

size of the holdings of the person involved in the transaction; (3)

the source of the funds used or to be used to acquire the security;

(4) any contracts or arrangements relating to the security; and (5) if

the purpose of the acquisition or tender offer was to acquire control of the business of the issuer of such security, any plans to

liquidate the issuer, sell its assets, merge it with another company,

or make any other major changes in its business or corporate

structure.

In order to cure the inadequacies in and to supplement the protection already accorded investors under existing law, the Act of

December 22, 1970 (Public Law 91-567; 84 Stat. 1497) extends the

disclosure requirements of sections 13(d) and 14(d) of the Securities Exchange Act of 1934 to acquisitions of and tender offers for

over 5 percent—rather than 10 percent—of any registered equity

security. It also expressly authorizes the Securities and Exchange

Commission to permit simpler reporting for persons who, although

acquiring more than 5 percent of any equity security, have done so

in the ordinary course of business and not for the purpose of

changing or influencing the control of the security's issuer.

The December 22, 1970, amendments to sections 13(e), 14(d),

and 14(e) of the Securities Exchange Act of 1934 sought to give

investors a sounder basis for intelligent decisions and a higher

measure of protection against fraudulent, deceptive, or manipulative acts or practices engaged in in connection with tender offers.

They subject stock-for-stock exchange offers made pursuant to a

registration statement filed under the Securities Act of 1933, as

amended (15 U.S.C. 77a et seq.), to the disclosure requirements and

investor protection provisions applicable to tender offers; and they

authorize the Securities and Exchange Commission to distinguish

between acquisitions by or for the issuer and acquisitions by or for

a person in a controlling relationship with the issuer in adopting

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FEDERAL LEGISLATION— 1970 163

rules and regulations applicable to disclosures in connection with

acquisitions by certain issuers of their own securities. Also, the

Commission is required, by rules and regulations, to define and to

prescribe means reasonably designed to prevent fraudulent, deceptive, or manipulative acts and practices sometimes engaged in by

both sides in contested tender-offer situations.

Investment Company Amendments Act of 1970. On December

14, 1970, the President approved the Investment Company Amendments Act of 1970 (Public Law 91-547; 84 Stat. 1413), providing

for important changes in the Investment Company Act of 1940, the

Investment Advisers Act of 1940, and other laws. Although the Act

was primarily directed at the mutual fund sector of the investment

company industry, a large number of changes in the securities laws

were effected in an effort to facilitate, update, and improve their

administration and enforcement. Among the Act's provisions are

several amendments designed to clarify the status of funds held by

banks in various capacities.

Common trust funds or similar funds maintained by banks exclusively for the collective investment and reinvestment of moneys

contributed thereto by the banks in their capacities as trustees,

executors, administrators, or guardians have been exempt from the

provisions of the Investment Company Act of 1940 since its enactment. The 1970 amendments exempt interests or participations in

bank common trust funds from the registration requirements of the

Securities Act of 1933 and the Securities Exchange Act of 1934,

but not from the antifraud provisions of those Acts. The exemption

is intended to apply to interests or participations in common trust

funds maintained by banks for the collective investment of assets

held by them in bona fide fiduciary capacities and incident to their

traditional trust department activities. It does not exempt interests

or participations in bank funds maintained as vehicles for direct

investment by individual members of the public.

Collective trust funds maintained by banks, which consist solely

of assets of employees' stock bonus, pension, or profit-sharing

trusts meeting the requirements for qualification for tax-exempt

treatment of income pursuant to section 401 of the Internal Revenue Code of 1954, are statutorily exempted from the regulatory

pattern of the Investment Company Act of 1940 by the amendments. This exemption, which would include trust funds comprised

of the assets of retirement trusts for self-employed individuals,

often called "H.R. 10 trusts," reflects the prior administrative position of the Securities and Exchange Commission. The amendments

exempt interests or participations in trusts comprised solely of

assets of employees' stock bonus, pension, or profit-sharing trusts

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164 FEDERAL DEPOSIT INSURANCE CORPORATION

suant to section 401 of the Internal Revenue Code of 1954, other

than trusts comprised of the assets of retirement trusts for selfemployed individuals, from the registration provisions of the Securities Act of 1933 and the provisions of the Securities Exchange Act

of 1934 that do not apply to "excepted securities" under that Act.

These interests or participations would continue to be subject to

the antifraud provisions of the Securities Act of 1933 and the

Securities Exchange Act of 1934. Interests or participations in bank

collective trust funds issued in connection with H.R. 10 trusts remain subject to the registration provisions of the Securities Act of

1933 and the provisions of the Securities Exchange Act of 1934

with the exception of the over-the-counter registration provisions of

the latter Act, from which they were exempted by the amendments.

The amendments took no legislative position on the question

whether banks may enter the mutual fund business through the

creation of commingled managing agency accounts or by other

means. This question was accordingly left to the Supreme Court of

the United States.

R U LES A N D R EG U LA T IO N S A N D ST A T EM EN T S

OF G E N E R A L PO LICY

Interest on deposits. On January 20, 1970, the Board of Directors announced changes in the maximum rates of interest payable on time and savings deposits by insured State nonmember

commercial banks and by mutual savings banks insured by the Corporation. This action was taken to provide the small saver in commercial banks and thrift institutions a more equitable rate of return

on his savings, in comparison with rates then available on comparable alternative investment outlets, and to bring commercial

banks and thrift institutions into somewhat closer touch with thenexisting market conditions and with financial flows from which

they had become increasingly isolated over the preceding year as a

result of rapidly rising interest rates.

In announcing modifications in the interest-rate structure, the

Board stated that the changes were being made within the framework of continued credit restraint and that they did not signal any

alteration in then-existing anti-inflationary policies. Combined with

concurrent action by the Board of Governors of the Federal Reserve System and the Federal Home Loan Bank Board, the upward

realignment of rate ceilings was intended to help maintain the flow

of savings into commercial banks and thrift institutions to support

housing and other essential financing requirements. It was also designed to minimize any disruptive flows among commercial banks,

mutual savings banks, and savings and loan associations.

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Under the changes in the rate structure, the maximum rate of

interest payable by insured State nonmember commercial banks on

savings deposits was increased from 4 to 4'A percent, originally

effective January 21, 1970. On January 23, 1970, however, the

Board of Directors expanded its previous decision, to avoid additional complexities in computing interest. Insured nonmember commercial banks which increased their rate of interest on passbook

savings under the January 20 ceilings were allowed to compute

interest at the new rate from January 1, 1970, on savings deposits

held on January 20.

For insured State nonmember commercial banks, ceilings for

single-maturity time deposits of less than $100,000 with maturities

of from 1 year to less than 2 years and for those with maturities of

2 years and over were set at 51/2 percent and 5% percent, respectively. The 5 percent rate previously in effect for all of these particular time deposits was retained for such deposits having maturities

of 30 days or more but less than 1 year.

At the same time, a new maturity and rate structure was established for single-maturity time deposits of $100,000 and over held

by insured nonmember commercial banks, as follows:

Maturity Maximum rate payable

(in percent)

30-59 days .................................................... 6%

60-89 days .................................................... 6'A

90-179 days .................................................. 6%

180 days or more but

less than 1 y e a r........................................... 7

1 year or more ............................................... 71/2

Previously, the maximum rates payable on such deposits had ranged

from 5>2 percent, on deposits with maturities of from 30-59 days,

to 6% percent, on deposits with maturities of 180 days and over.

This same maturity and rate structure was adopted for these types

of deposits in FDIC-insured mutual savings banks and in mutual

savings banks in Massachusetts not insured by the Corporation.

Although the maximum rate payable by insured nonmember

commercial banks on multiple-maturity time deposits with maturities of from 30 to 89 days was increased from 4 to 4/4 percent, the

5 percent rate was retained for those payable at intervals of at least

90 days.

The Board of Directors also modified other rate ceilings in effect

for FDIC-insured mutual savings banks. These institutions were permitted to pay new maximum rates on single-maturity time deposits

of less than $100,000: 5% percent on those with maturities of 90

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166 FEDERAL DEPOSIT INSURANCE CORPORATION

days or more but less than 1 year, 5% percent on those with maturities of 1 year or more but less than 2 years, and 6 percent on those

with maturities of 2 years or longer.

Additionally, the Board of Directors established interest- and

dividend-rate ceilings applicable to mutual savings banks in

Massachusetts not insured by the Corporation. The Board took this

action under its authority, given in December 1969, to extend interest-rate controls to banks not insured*by the Corporation in certain

States. Effective January 21, 1970, those mutual savings banks were

generally restricted to paying a rate not exceeding bVz percent on

regular savings deposits or on other special deposits. However, on

single-maturity time deposits of less than $100,000 with maturities

of 1 year or more but less than 2 years, they were permitted to pay

a rate of interest or dividends not exceeding 5% percent per annum;

and on those with maturities of 2 years or more, not exceeding 6

percent per annum.

All of the amendments—except those as to savings deposits,

which were retroactive to January 1, 1970—were effective January

21, 1970.

In recognition of the convenience, to bank customers, of automatic renewal and the practice followed by the Federal Home Loan

Bank Board in permitting automatic renewal of similar deposits in

savings and loan associations, Part 329 of the Corporation's rules

and regulations relating to interest on deposits was amended again

on February 27, 1970. The amendment increased the maximum

rates of interest payable on multiple-maturity time deposits of 1

year or more by insured State nonmember commercial and mutual

savings banks and by savings banks in Massachusetts not insured by

the Corporation. The new rates were similar to the rates that the

banks affected could then pay on single-maturity time deposits of

less than $100,000 with comparable maturity periods.

The amendments were designed to permit insured non member

commercial banks, effective January 21, 1970, to pay 51/2 percent

per annum on multiple-maturity time deposits payable only 1 year

or more after the date of deposit, or 1 year or more after the last

preceding date on which they might have been paid, and 5% percent

per annum on such deposits payable only 2 years or more after the

date of deposit, or 2 years or more after the last preceding date on

which they might have been paid. Rates then applicable to multiple-maturity time deposits payable at intervals of less than 1 year

continued in effect unchanged.

The amendments applicable to insured mutual savings banks and

savings banks in Massachusetts not insured by the Corporation permitted such banks, effective January 21, 1970, to pay 5% percent

per annum on multiple-maturity time deposits payable only 1 year

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RULES AND REGULATIONS OF THE CORPORATION 167

or more after the date of deposit, or 1 year or more after the last

preceding date on which they might have been paid, and 6 percent

per annum on such deposits payable only 2 years or more after the

date of deposit, or 2 years or more after the last preceding date on

which they might have been paid.

The increased rates were made applicable to multiple-maturity

time deposits bearing the required maturity periods without regard

to the amount of the deposits.

The Board of Governors of the Federal Reserve System issued

similar regulations applicable to member banks.

The Corporation's rules and regulations relating to interest on

deposits were next amended on June 23, 1970. At this time, the

ceilings on the maximum rates of interest payable by all insured

nonmember banks, and by savings banks in Massachusetts not insured by the Corporation, on single-maturity time deposits of

$100,000 or more with maturities of 30 through 89 days were

suspended, effective June 24, 1970. The Board of Governors of the

Federal Reserve System simultaneously acted on ceilings on interest

rates payable by member banks. No changes were made in the

ceilings applicable to longer term certificates of deposit (CDs) of

$100,000 or more. These stayed at 6% percent for deposits having

maturities of 90 to 179 days, 7 percent for deposits having maturities of 180 days to 1 year, and 71/2 percent for deposits having maturities of 1 year or more. Moreover, ceilings applicable to savings

deposits or to time deposits (including CDs) of less than $100,000

remained the same.

On July 30, 1970, the Corporation's Board of Directors revoked

that portion of Part 329 of its rules and regulations which established interest- and dividend-rate ceilings applicable to non-FDICinsured mutual savings banks in Massachusetts. This action followed

the adoption by the Commissioner of Banks for the Commonwealth

of Massachusetts of regulations governing the payment of interest

or dividends on deposits by "nonfederally insured" savings banks

in that State. The Board believed that the Commissioner's action

nullified its authority to regulate the rates of interest or dividends

payable on deposits by savings banks in Massachusetts not insured

by the Corporation.

At the same time, the Board amended section 329.7(f) of the

Corporation's rules and regulations, relating to the maximum rates

of interest or dividends payable on deposits by mutual savings

banks in Massachusetts insured by the Corporation, to permit the

eight FDIC-insured mutual savings banks in the State to pay the

same maximum rates of interest or dividends on their deposits as

those prescribed, as of July 31, 1970, by the Commissioner of

Banks for the Commonwealth of Massachusetts for nonfederally

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

insured thrift institutions in that State. The revocation and amendment were effective July 31, 1970.

Obligations other than deposits. By an amendment to section

18(g) of the Federal Deposit Insurance Act, as amended (12 U.S.C.

1828(g)), section 4(b)(2) of the Act of December 23, 1969 (83

Stat. 374) authorized the Corporation's Board of Directors to apply

statutes and regulations relating to interest on deposits to obligations other than deposits that are undertaken by insured nonmember banks or their affiliates to obtain funds to be used in the

banking business. Pursuant to that authority, the Board of Directors, on November 25, 1970, amended Part 329 of the Corporation's rules and regulations to place all obligations other than deposits that are issued or undertaken by insured nonmember banks

(including insured nonmember mutual savings banks) to obtain

funds to be used in the banking business under the interest-rate

control provisions of Part 329. For purposes of the amendment, the

term "obligations" includes, but is not limited to,,promissory notes,

acknowledgements of advance, due bills, repurchase agreements, or

similar obligations (written or oral).

The amendment does not apply to (1) "interbank" transactions,

including obligations evidencing funds received from certain foreign

governments and governmental entities, or funds received from

agencies of the United States or the Government Development

Bank of Puerto Rico; (2) obligations evidencing an indebtedness

arising from a transfer of direct obligations of, or obligations fully

guaranteed as to principal and interest by, the United States or an

agency thereof that the bank is obligated to repurchase; (3) certain

borrowings from securities dealers; or (4) certain subordinated

notes or debentures.

For a subordinated note or debenture to be exempt from Part

329 under the amendment, it must have an original maturity of 7

years or more, be in an amount of at least $500, expressly state that

it is not a deposit and is not insured by the Federal Deposit Insurance Corporation, and also state that it is subordinated to the

claims of depositors. In addition, the obligation must be ineligible

as collateral for a loan by the issuing bank and must be approved by

the Federal Deposit Insurance Corporation as an addition to the

bank's capital structure. The Corporation may approve the issuance

of subordinated notes or debentures with a maturity of less than 7

years where exigent circumstances so require.

The amendment closely parallels provisions of regulations issued

by the Board of Governors of the Federal Reserve System, which

are applicable to member banks.

Time deposits of foreign governmental entities and international

organizations. Effective February 10, 1970, the Board of Directors

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Federal Reserve Bank of St. Louis
RULES AND REGULATIONS OF THE CORPORATION 169

amended section 329.3(g) of the Corporation's rules and regulations, which exempts time deposits of foreign governmental entities

and international organizations from ceilings on interest rates. The

amendment clarifies the fact that the exemption applies only for

foreign national governments and agencies thereof having national

jurisdiction and that it does not apply for foreign states, provinces,

municipalities, or other regional or local governmental units, or for

agencies or instrumentalities thereof.

On March 18, 1970, in order to encourage the maintenance of

time deposits belonging to foreign, international, or supranational

entities in American banks, the Board of Directors designated certain entities whose time deposits are exempt from the interest-rate

limitations payable on time deposits of 2 years or less. The action

of the Board of Directors was effective March 6, 1970.

Brokered funds. On February 13, 1970, the Board of Directors

of the Corporation approved a statement of policy concerning brokered funds. Inasmuch as the use of brokered funds has been associated with abuses in banking and has contributed to some recent

bank closings, bankers were again urged to be on the alert for

schemes which would expose depositors' and shareholders' funds to

the risks involved in loans based on brokered "deposits."

Regulations issued by both the Board of Governors of the

Federal Reserve System and the Federal Deposit Insurance Corporation prohibit advertising of excessive yields on deposits solicited for

federally supervised banks. The statement of policy advised that a

bank is considered to be evading the purposes of the interest-rate

regulations to the extent that it takes any part in these transactions.

Where the bank pays a fee to a broker and knows or has reason to

know that the fee is being shared with the depositor, the bank is

also in violation of the regulations to the extent the yield to the

depositor exceeds the maximum permissible rate.

Since such activities can result in "unsafe and unsound" situations and could adversely affect the overall condition of a bank, the

Corporation instructed bank examiners to continue to report all

cases where banks are obtaining deposits at premium rates, whatever the source of the premium, and also to scrutinize any tie-in

loans. Appropriate corrective action will be required of all banks

where such deposits and loans are found.

Premiums not considered payment of interest or dividends. Part

329 of the Corporation's regulations prohibits the payment of interest on demand deposits by insured nonmember banks and prescribes maximum rates of interest or dividends payable on time and

savings deposits by insured nonmember commercial and mutual savings banks. A second statement of policy approved by the Board of

Directors on February 13, 1970, announced that in applying these

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

provisions on or after March 1, 1970, premiums given to depositors,

whether in the form of merchandise, credit, or cash, will be considered an advertising or promotional expense rather than a payment of interest or dividends if (1) the premium is given to a

depositor only at the time he opens a new account or adds to an

existing account; (2) the premium is not given to any depositor on a

recurring basis; and (3) the value of the premium or, in the case of

articles of merchandise, the wholesale cost (excluding shipping and

packaging costs) does not exceed $5, except that the value or

wholesale cost may be not more than $10 if the amount of the

deposit is $5,000 or more.

Until July 30, 1970, the statement of policy was also applicable

to savings banks in Massachusetts not insured by the Corporation.

Information regarding computation of interest and dividends on

deposits. Paragraph (f) of section 329.8 of the Corporation's rules

and regulations pertains to the payment of interest and dividends

on deposits, and it prohibits an insured nonmember bank from

making any advertisement, announcement, or solicitation relating

to the interest or dividends paid on deposits which is inaccurate or

misleading or which misrepresents the deposit contracts.

The Board of Directors approved a third statement of policy on

February 13, 1970, which seeks to avoid a misunderstanding on the

part of a bank's customers. The statement urges every insured nonmember bank to inform the holder of a time or savings deposit, at

the time of the opening of the account, as to the method that will

be used in computing and paying interest or dividends on the

account. This includes any provision for nonpayment of interest or

dividends on deposits made after the beginning of an interest or

dividend payment period or withdrawn before the end of the

period. Notice of any change in the method used in computing and

paying interest or dividends that will be less favorable to a depositor

than the previous method should be mailed to each depositor at his

last known address.

Until July 30, 1970, the statement of policy was applicable to

savings banks in Massachusetts not insured by the Corporation.

Delegations of authority. In a major move to speed action on

applications, the Board of Directors adopted regulations, effective

December 30, 1970, which empower the Director of the Division of

Bank Supervision and the Corporation's 14 Regional Directors to

act on certain bank requests, under specified conditions.

Specifically, the Board delegated authority to the Director of the

Division of Bank Supervision and, upon confirmation by the latter,

to the Regional Director of the Region in which the applicant bank

is located, to act on applications and requests from insured State

nonmember banks for the Corporation's consent to (1) the estabDigitized for FRASER 

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Federal Reserve Bank of St. Louis
RULES AND REGULATIONS OF THE CORPORATION 171

lishment of teller's window, drive-in, or like facilities as adjuncts to

a main office or a branch office; (2) the relocation of branches or

main offices; (3) the operation of temporary banking facilities for

no longer than 1 month; (4) the reduction or retirement of capital;

(5) the issuance of subordinated capital debt under the provisions

of section 329.10(b)(3) of the Corporation's rules and regulations;

(6) the exercise of trust powers; (7) extensions of time within

which to perform acts or conditions required by prior Corporation

action on bank applications; and (8) minor or nominal deviations

(10 percent or less of dollar requirements where applicable) from

requirements prescribed by prior Corporation action. Certain administrative actions relating to bank service corporations, the Bank

Protection Act of 1968, and the Securities Exchange Act of 1934

were included within the delegations.

In effect, the Director of the Division of Bank Supervision and,

through him, the Regional Directors are now authorized to act

upon applications in a wide range of cases which do not involve

substantial changes in the overall competitive situation.

Operating instructions implementing these delegations of authority, available to the public at the various Regional offices of the

Corporation and at its Washington office, have been furnished by

the Director of the Division of Bank Supervision to each Regional

Director.

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Federal Reserve Bank of St. Louis
STATISTICS OF BANKS

AND DEPOSIT INSURANCE

PART FOUR

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NUMBER OF BANKS AND BRANCHES

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

States (States and other areas) during 1970

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

(States and other areas) during 1970, by State

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

December 31, 1970

Grouped according to insurance status and class of bank, and by State or

area and type of office

Table 104. Number and deposits of all commercial and mutual savings banks (States and

other areas), December 31, 1970

Banks grouped by class and deposit size

Tabulations for all banks are prepared in accordance with an 

agreement among the Federal bank supervisory agencies. Provision of deposit facilities for the general public is the chief 

criterion for distinguishing between banks and other types of 

financial institutions. However, trust companies engaged in general fiduciary business, though not in deposit banking, are included; 

and credit unions and savings and loan associations are excluded 

except in the case of a few which accept deposits under the 

terms of special charters.

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 which prohibit the operation of 

branches, such limited facilities are not considered branches 

within the meaning of State law.

174 FEDERAL DEPOSIT INSURANCE CORPORATION

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Federal Reserve Bank of St. Louis
Commerical 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;

Special types of banks of deposit; regulated certificated banks, 

and a savings and loan company operating under Superior Court 

charter in Georgia; government-operated banks in North Dakota 

and Puerto Rico; a cooperative bank, usually classified as a credit 

union, operating under a special charter in New Hampshire; a savings institution, known as a “trust company," operating under special charter in Texas; the Savings Banks Trust Company in New 

York; and branches of foreign banks engaged in a general deposit 

business in New York, Oregon, Washington, 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 activties.

Mutual savings banks include all banks operating under State 

banking codes applying to mutual savings 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 which 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 authored 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;

Federal 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 operate as rediscount banks and do not accept 

deposits except from financial institutions.

NUMBER OF BANKS AND BRANCHES 175

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Table 101. CHANGES IN NUM BER AND CLASSIFICATION OF BANKS AND BRANCHES IN THE UNITED STATES

(STATES AND OTHER AREAS) DURING 1970

All banks Commercial banks and nondeposit trust companies Mutual savings banks

Insured Noninsured

Type of change

Total

InsuredNoninsured Total

Total

Members F.R.

System

Not

members

F.R.

System

Banks

of

deposit

Nondeposit

trust

companies

Total

In ­

sured

Noninsured

National State

ALL B A N K IN G OFFICES

N um ber of o ffic es , D ecem ber 31, 197 0 -............................................................................ 37,166 36,544 622 35,585 35,321 17,191 4,798 13,332 209 55 1,581 1,223 358

N um ber of offices, Decem ber 31, 19691..................................................................................... 35,582 34,959 623 34,099 33,821 16,428 4,683 12,710 221 57 1,483 1,138 345

N e t change during y e a r................................................................................................................ + 1 ,5 8 4 + 1 ,5 8 5 - 1 + 1 ,4 8 6 + 1 ,5 0 0 + 7 6 3 + 1 1 5 + 6 2 2 - 1 2 - 2 + 9 8 + 8 5 + 1 3

O ffices op en ed ............................................................................................................................... 1,864 1,837 27 1,759 1,746 871 235 640 10 3 105 91 14

Banks...................................................................................................................................... 186 179 7 185 178 40 8 130 5 2 1 1 0

Branches..................................................................................................................... 1,678 1,658 20 1,574 1,568 831 227 510 5 1 104 90 14

O ffices clo sed ....................................................... 280 265 15 273 259 117 50 92 10 4 7 6 1

Banks................................................................................................. 165 156 9 161 153 61 18 74 5 3 4 3 1

Branches...................................................................................... . . 115 109 6 112 106 56 32 18 5 1 3 3 0

Change in c la s s ific a tio n ............................................................ 0 + 1 3 - 1 3 0 + 1 3 + 9 - 7 0 + 7 4 - 1 2 - 1 0 0 0

Among banks........................................................................... 0 + 1 3 - 1 3 0 + 1 3 - 2 7 - 4 4 + 8 4 - 1 2 - 1 0 0 0

Among branches......................................................................... 0 0 0 0 0 + 3 6 - 2 6 - 1 0 0 0 0 0 0

BANKS

N um ber of banks, Decem ber 31, 1970 .................. 14,199 13,840 359 13,705 13,511 4,621 1,147 7,743 147 47 494 329 165

N um ber of banks, Decem ber 31, 1969 ........... 14,178 13,804 374 13,681 13,473 4,669 1,201 7,603 159 49 497 331 166

N e t change d u rin g y e a r ......................................................................... + 2 1 + 3 6 - 1 5 + 2 4 + 3 8 - 4 8 - 5 4 + 1 4 0 - 1 2 - 2 - 3 - 2 - 1

Banks beginn ing o p e ra tio n ....................................................... 186 179 7 185 178 40 8 130 5 2 1 1 0

New banks...................................................................................... 186 179 7 185 178 40 8 130 5 2 1 1 0

Banks ceasing o p e ra tio n ..................................................... -1 6 5 -1 5 6 - 9 - 1 6 1 - 1 5 3 - 6 1 - 1 8 - 7 4 - 5 - 3 - 4 - 3 - 1

Absorptions, consolidations, and mergers.................. -1 5 5 -1 5 1 - 4 -1 5 1 -1 4 8 - 6 0 - 1 8 - 7 0 - 2 - 1 - 4 - 3 - 1

Closed because of financial difficulty.................................................... - 4 - 4 0 - 4 - 4 - 1 0 - 3 U 0 o u o Other liquidations................................................................ - 4 - 1 - 3 - 4 - 1 0 0 - 1 - 2 - 1 o o 0

Discontinued deposit operation.................................... - 1 0 - 1 - 1 o 0 0 o - 1 0 o o o

Banks deleted from count.................................................. - 1 0 - 1 - 1 0 0 0 0 0 - 1 0 0 0

Noninsured banks becom ing in s u red .................................... 0 + 1 3 - 1 3 0 + 1 3 + 1 0 + 1 2 - 1 2 - 1 0 0 0

176 FEDERAL DEPOSIT INSURANCE CORPORATION

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O th e r changes in c la s s ific a tio n ...................................................................

National succeeding State bank....................................................................

State succeeding national bank....................................................................

Withdrawal from F.R. System with continued insurance.....................

C hanges not in vo lvin g num ber in any c la s s .........................................

Change in title .....................................................................................................

Change in location..............................................................................................

Change in title and location............................................................................

Change in name of location............................................................................

Change in location within c ity ........................................................................

C hanges in corporate p o w e rs .......................................................................

Granted trust powers (State nonmember banks o n ly).........................

BRANCHES

N um ber of branches, D ecem ber 31, 1970 1......................................................

N um ber of branches, D ecem ber 31, 1969 1......................................................

N e t change d uring y e a r ........................................................................................

B ranches opened fo r b u siness.....................................................................

Facilities designated by Treasury.................................................................

Absorbed bank converted to branch...........................................................

Branch replacing head office relocated......................................................

New branches......................................................................................................

Branches and/or facilities added to co u n t2.............................................

B ranches d isco n tin u ed .....................................................................................

Facilities designated by Treasury.................................................................

Branches................................................................................................................

Branches and/or facilities deleted from count........................................

O th er changes in c la s s ific a tio n ...................................................................

Branches changing class as a result of conversion................................

Branches transferred through absorption, consolidation, or merger

Branches of insured banks withdrawing from FRS...............................

Changes not involving num ber in any c la s s .........................................

Changes in operating powers of branches.................................................

Branches transferred through absorption, consolidation, or merger

Changes in title, location, or name of location........................................

0 0i 0 0 0 -28 -44 +72 0 0 0 0

0 0 0 0 0 +11 -6 -5 0 0 0 0

0 0 0 0 0 -39 0 +39 0 0 0 0

0 0 0 0 0 0 -38 +38 0 0 0 0

270 266 4 261 259 81 18 160 2 0 9 7

25 25 0 23 23 9 3 11 0 0 2 2

18 18 0 18 18 13 1 4 0 0 0 0

8 8 0 8 8 4 0 4 0 0 0

158 156 2 154 154 44 5 105 0 0 4 2

52 52 0 52 52 0 0 52 0 0 0 0

22,967 22,704 263 21,880 21,810 12,570 3,651 5,589 62 8 87 894

21,404 21,155 249 20,418 20,348 11,759 3,482 5,107 62 8 986 807

+1,563 +1,549 +14 +1,462 +1,462 +811 +169 +482 0 0 +101 +87

1,678 1,658 20 1,574 1,568 831 227 510 5 1 104 90

5 5 0 5 5 4 0 1 0 0 0 0

131 129 2 128 127 79 22 26 0 1 3 2

26 26 0 26 26 15 1 10 0 0 0 0

1,496 1,479 17 1,397 1,392 724 202 466 5 0 99 87

20 19 1 18 18 9 2 7 0 0 2 1

115 109 6 112 106 56 32 18 5 1 3 3

4 4 0 4 4 3 0 1 0 0 0 0

102 96 6 99 93 46 30 17 5 1 3 3

9 9 0 9 9 7 2 0 0 0 0 0

0 0 0 0 0 +36 -26 -10 0 0 0 0

0 0 0 0 q -5 -7 +12 0 0 0 0

0 0 0 0 0 +41 -5 -36 0 0 0 0

0 0 0 0 0 0 -14 +14 0 0 0 0

7 7 0 7 7 6 0 1 0 0 0 0

221 218 3 214 214 188 7 19 0 0 7 4

332 331 1 315 315 171 30 114 0 0 17 16

193

179

+ 1 4

140

1

0

121

0

0

0

0

0

0

0

0

1 Includ es facilities established at 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.

2 Branches opened prior to 1970 but not included in count as of December 31,19 6 9 .

NUMBER OF BANKS AND BRANCHES 177

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Table 102. CHANGES IN NUMBER OF COMMERCIAL BANKS AND BRANCHES IN THE UNITED STATES 

(STATES AND OTHER AREAS) DURING 1970, BY STATE

State

In operation Net change

during 1970

Beginning operation in 1970 Ceasing operation in 1970

Dec. 31, 1970 Dec. 31, 1969 Banks Branches Banks Branches

Banks Branches Banks Branches New Other Banks Branches New Other Absorptions Other Branches Other

To ta l U n ited S ta te s .............. 13,705 21,880 13,681 20,418 + 2 4 + 1 ,4 6 2 185 0 1,415 159 151 10 99 13

50 S tates and D .C................... 13,686 21,644 13,661 20,197 + 2 5 + 1 ,4 4 7 185 0 1,398 159 151 9 97 13

O th er A re a s .............................. 19 236 20 221 - 1 + 1 5 0 0 17 0 0 1 2 0

State

Alabam a....................................... 272 272 268 247 + 4 + 2 5 4 0 23 2 0 0 0 0

A laska........................................... 11 62 10 59 + 3 1 0 3 0 0 0 0 0

Arizona......................................... 12 323 12 299 NA + 2 4 0 0 26 0 0 0 2 0

Arkansas...................................... 250 165 249 155 + 1 + 1 0 1 0 11 0 0 0 1 0

California...................................... 152 3,033 155 2,900 - 3 +1 33 7 0 133 10 10 0 5 5

Colorado....................................... 270 19 267 12 + 3 + 7 3 0 6 1 0 0 0 0

Connecticut................................. 61 436 62 405 - 1 + 3 1 1 0 29 2 2 0 0 0

D elaware...................................... 18 87 19 79 - 1 + 8 0 0 8 1 1 0 1 0

District of Columbia................. 14 103 14 100 NA + 3 0 0 5 0 0 0 2 0

Florida........................................... 500 33 475 29 + 2 5 + 4 25 0 4 0 0 0 0 0

Georgia.......................................... 441 296 433 270 + 8 + 2 6 9 0 29 0 0 1 3 0

H aw aii........................................... 10 140 11 129 - 1 + 1 1 0 0 10 1 1 0 0 0

Idaho............................................. 24 156 26 149 - 2 + 7 0 0 5 2 2 0 0 0

Illin ois........................................... 1,108 98 1,088 74 + 2 0 + 2 4 20 0 23 1 0 0 0 0

Ind iana......................................... 407 632 410 601 - 3 + 3 1 0 0 28 4 3 0 1 0

Io w a............................................... 666 318 668 298 - 2 + 2 0 1 0 18 2 2 1 0 0

Kansas.......................................... 601 69 603 61 - 2 + 8 0 0 8 0 2 0 0 0

Kentucky...................................... 343 328 345 306 - 2 + 2 2 3 0 20 2 4 1 0 0

Louisiana...................................... 231 393 231 359 NC + 3 4 1 0 33 1 1 0 0 0

M aine............................................. 43 226 44 209 - 1 + 1 7 2 0 18 3 2 1 4 0

M aryland...................................... 115 521 122 491 - 7 + 3 0 0 0 26 7 7 0 3 0

Massachusetts............................ 162 744 161 713 + 1 + 3 1 2 0 34 1 1 0 4 0

Michigan....................................... 331 1,203 332 1,153 - 1 + 5 0 4 0 60 4 4 1 14 0

Minnesota.................................... 729 11 724 10 + 5 + 1 6 0 1 0 1 0 0 0

Mississippi................................... 182 348 181 321 + 1 + 2 7 1 0 27 0 0 0 0 0

Missouri........................................ 671 93 668 85 + 3 + 8 4 0 8 1 1 0 1 0

Montana....................................... 140 5 136 5 + 4 NA 4 0 0 0 0 0 0 0

Nebraska...................................... 441 42 442 39 - 1 + 3 1 0 3 0 0 2 0 0

N evada......................................... 8 86 8 81 NA + 5 0 0 5 0 0 0 0 0

New Hampshire......................... 74 63 76 52 - 2 + 1 1 0 0 9 2 2 0 0 0

178 FEDERAL DEPOSIT INSURANCE CORPORATION

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New Jersey.................................. 217 1,012 228 891 - 1 1 + 1 2 1 10 0 104 22 20 1 4 1

New M exico................................ 66 130 64 121 + 2 + 9 2 0 9 0 0 0 0 o New Y o rk..................................... 311 2,441 320 2,298 - 9 + 1 4 3 3 0 139 12 11 1 8 0 North Carolina........................... 98 1,119 109 1,016 - 1 1 + 1 0 3 1 0 96 12 12 0 4 1

North Dakota.............................. 169 71 169 68 NA + 3 0 0 3 0 0 0 0 0

O hio................................................ 516 1,304 521 1,217 - 5 + 8 7 2 0 85 9 7 0 7 0 Oklahoma..................................... 434 60 426 58 + 8 + 2 8 0 4 1 0 0 2 1

Oregon........................................... 49 337 51 319 - 2 + 1 8 1 0 16 3 3 0 1 0

Pennsylvania.............................. 471 1,727 492 1,616 - 2 1 + 1 1 1 1 0 105 22 22 0 16 0

Rhode Islan d.............................. 13 171 13 161 NA + 1 0 0 0 11 0 0 0 1 0

South Carolina........................... 102 418 105 380 - 3 + 3 8 0 0 38 3 3 0 3 0 South Dakota.............................. 161 98 163 94 - 2 + 4 0 0 2 2 2 0 0 o Tennessee.................................... 308 488 305 449 + 3 + 3 9 4 0 42 3 1 0 3 3 Texas............................................. 1,191 76 1,166 67 + 2 5 + 9 26 0 9 0 1 0 0 0 U tah............................................... 48 139 51 126 - 3 + 1 3 1 0 10 4 4 0 1 0

Verm ont........................................ 43 85 44 78 - 1 + 7 0 0 6 1 1 0 0 0 V irginia......................................... 233 825 233 765 NC + 6 0 5 0 57 8 5 0 4 1

Washington.................................. 91 558 92 523 - 1 + 3 5 7 0 27 9 8 0 1 0

West V irginia.............................. 200 5 195 5 + 5 NA 5 0 0 0 0 0 0 o Wisconsin..................................... 608 273 604 252 + 4 + 2 1 9 0 22 1 5 0 1 1

Wyoming....................................... 70 2 70 2 NA NA 0 0 0 0 0 0 0 0

O th er Areas

Pacific Islands............................ 0 20 0 16 NA + 4 0 0 5 0 0 0 1 o

Panama Canal Zone................. 0 2 0 2 NA NA 0 0 0 0 0 0 0 o Puerto Rico.................................. 13 190 13 183 NA + 7 0 0 8 0 0 0 1 o

Virgin Islands............................. 6 24 7 20 - 1 + 4 0 0 4 0 0 1 0 0

NA— No activity

NC— No change

NUMBER OF BANKS AND BRANCHES 179

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Table 103. NUM BER OF BANKING OFFICES IN THE UNITED STATES (STATES AND OTHER AREAS), DECEMBER 31, 1970

G R O U P ED A C CO R D IN G TO IN SU R A N C E 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 1

Total

In ­

sured

Noninsured Total

Insured Noninsured

Total

In ­

sured

Noninsured

All

banks

of

deposit

Commercial

banks

of

deposit

Mutual

savings

Total banks

Members F. R.

System

Not

members

F. R.

System

Banks

of deposit 2

Nondeposit

trust

comNa­ panies

tional State

U n ited S ta te s —a ll o ffic e s ........................................................... 37,166 36,544 622 35,585 35,321 17,191 4,798 13,332 209 55 1,581 1,223 358 98.5 99.4 77.4

Banks................................................................................................... 14,199 13,840 359 13,705 13,511 4,621 1,147 7,743 147 47 494 329 165 97.8 98.9 66.6

Unit banks..................................................................................... 9,883 9,634 249 9,689 9,518 2,934 694 5,890 128 43 194 116 78 97.9 98.7 59.8

Banks operating branches......................................................... 4,316 4,206 110 4,016 3,993 1,687 453 1,853 19 4 300 213 87 97.5 99.5 71.0

Branches............................................................................................. 22,967 2 2,704 263 21,880 21,810 12,570 3,651 5,589 62 8 1,087 894 193 98.9 99.7 82.2

50 States & D.C .— a ll o ffic e s ...................................................... 36,910 36,321 589 35,330 35,099 17,142 4,798 13,159 176 55 1,580 1,222 358 98.6 99.5 77.3

Banks................................................................................................... 14,179 13,830 349 13,686 13,502 4,620 1,147 7,735 137 47 493 328 165 97.9 99.0 66.5

Unit banks..................................................................................... 9,874 9,632 242 9,681 9,517 2,934 694 5,889 121 43 193 115 78 98.0 98.7 59.6

Banks operating branches......................................................... 4,305 4,198 107 4,005 3,985 1,686 453 1,846 16 4 300 213 87 97.6 99.6 71.0

Branches............................................................................................ 22,731 22,491 240 21,644 21,597 12,522 3,651 5,424 39 8 1,087 894 193 99.0 99.8 82.2

O ther A reas— all o ffic e s ............................................................... 256 223 33 255 222 49 0 173 33 0 1 1 0 87.1 87.1 100.0

Banks................................................................................................... 20 10 10 19 9 1 0 8 10 0 1 1 0 50,0 47.4 100.0

Unit banks..................................................................................... 9 2 7 8 1 0 0 1 7 0 1 1 0 22.2 12.5 100.0

Banks operating branches......................................................... 11 8 3 11 8 1 0 7 3 0 0 0 0 72.7 72.7 .0

Branches............................................................................................. 236 213 23 236 213 48 0 165 23 0 0 0 0 90.3 90.3 .0

State

A labam a— a ll o ffic e s ...................................................................... 544 544 0 544 544 282 33 229 0 0 0 0 0 100.0 100.0 .0

Banks................................................................................................... 272 272 0 272 272 89 20 163 0 0 0 0 0 100.0 100.0 .0

Unit banks..................................................................................... 183 183 0 183 183 42 15 126 0 0 0 0 0 100.0 100.0 .0

Banks operating branches......................................................... 89 89 0 89 89 47 5 37 0 0 0 0 0 100.0 100.0 .0

Branches............................................................................................. 272 272 0 272 272 193 13 66 0 0 0 0 0 100.0 100.0 .0

A laska— a ll o ffic e s .......................................................................... 75 74 1 73 72 60 0 12 1 0 2 2 0 98.7 98.6 100.0

Banks................................................................................................... 13 12 1 11 10 5 0 5 1 0 2 2 0 92.3 90.9 100.0

Unit banks..................................................................................... 6 0 1 4 3 0 0 3 1 0 2 2 0 83.3 75.0 100.0

Banks operating branches.......................................................... 7 7 0 7 7 5 0 2 0 0 0 0 0 100.0 100.0 .0

Branches............................................................................................. 62 62 0 62 62 55 0 1 0 0 0 0 0 100.0 100.0 .0

A rizona— a ll o ffic e s ........................................................................ 335 335 0 335 335 221 20 94 0 0 0 0 0 100.0 100.0 .0

Banks.................................................................................................. 12 12 0 12 12 3 1 8 0 0 0 0 0 100.0 100.0 .0

Unit banks..................................................................................... 3 3 0 3 3 1 0 2 0 0 0 0 0 100.0 100.0 .0

Banks operating branches......................................................... 9 9 0 9 9 2 1 6 0 0 0 0 0 100.0 100.0 .0

Branches............................................................................................ 323 323 0 323 323 218 19 86 0 0 0 0 0 100.0 100.0 .0

180 FEDERAL DEPOSIT INSURANCE CORPORATION

Digitized for FRASER 

http://fraser.stlouisfed.org/ 

Federal Reserve Bank of St. Louis
A rkansas— a ll o ffic e s ..........

Banks........................................

Unit banks...........................

Banks operating branches

Branches..................................

C a lifo rn ia — all o ffic e s .........

Banks........................................

Unit banks...........................

Banks operating branches

Branches..................................

Colorado— a ll o ffic e s ...........

Banks........................................

Unit banks...........................

Banks operating branches

Branches..................................

C o n n ec tic u t— a ll o ffic e s ...

Banks....................................

Unit banks...........................

Banks operating branches

Branches..................................

D elaw are — a ll o ffic e s ..........

Banks........................................

Unit banks...........................

Banks operating branches

Branches..................................

D .C .— a ll o ffic e s .....................

Banks........................................

Unit banks...........................

Banks operating branches

Branches..................................

Florida— a ll o ffic e s ...............

Banks........................................

Unit banks...........................

Banks operating branches

Branches..................................

G eorgia— a ll o ffic e s ..............

Banks........................................

Unit banks...........................

Banks operating branches

Branches..................................

H aw a ii— a ll o ffic e s ................

Banks........................................

Unit banks...........................

Banks operating branches

Branches..................................

415 413

2 415 413

250 248

2 250 248

167 165 2 167 165

83 83

0 83 83

165 165 0 165 165

3,185 3,172 13 3,185 3,172

152 144 8 152 144

31 25 6 31 25

121 119 2 121 119

3,033 3,028 5 3,033 3,028

289 246 43 289 246

270 227 43 270 227

253 210 43 253 210

17 17 0 17 17

19 19 0 19 19

716 713 3 497 494

130 127 3 61 58

40 37 3 17 14

90 900 44 44

586 586 0 436 436

119 119 0 105 105

20 20 0 18 18

9 9 0 9

9

11 11 0 9 9

99 99 0 87 87

117 117 0 117 117

14 14

0 14 14

1 1

0 1 1

13 13 0 13 13

103 103 0 103 103

533 528 5 533 528

500 495 5 500 495

471 466 5 471 466

29 29 0 29 29

33 33 0 33 33

737 730

7 737 730

441 434

7 441 434

333 326

7 333 326

108 108 0 108 108

296 296 0 296 296

150 145 5 150 145

10 7 3 10 7

2 0 2 2 0

8 7

1 8 7

140 138

2 140 138

152 32 229 1 1 0 0 0 99.8 99.8 .0

69 12 167

1

1 0 0 0 99.6 99.6 .0

35 5 125 1 1 0 0 0 99.4 99.4 .0

34

7 42 0 0 0 0 0 100.0 100.0 .0

83 20 62 0 0 0 0 0 100.0 100.0 .0

2,466 298 408

0 13 0 0 0 100.0 100.0 .0

60 9 75 0 8 0

0 0 100.0 100.0 .0

8 0 17 0

6

0 0 0 100.0 100.0 .0

52 9 58 0 2 0 0 0 100.0 100.0 .0

2,406 289 333

0

5 0 00 100.0 100.0 .0

137 18 91 43 0 0 0 0 85.1 85.1 .0

122 17 88 43

0

0 0 0 84.1 84.1 .0

109 16 85 43 0 0 0 0 83.0 83.0 .0

13 1 3 0 0 0 0 0 100.0 100.0 .0

15

1 3 0 0 0 0 0 100.0 100.0 .0

247 122 125

2

1 219 219 0 99.7 99.6 100.0

26 4 28 2 1 69 69 0 98.4 96.7 100.0 6 0 8 2 1 23 23 0 94.9 87.5 100.0

20

4 20 0 0 46 46 0 100.0 100.0 100.0

221 118 97 0

0 150 150 0 100,0 100,0 100.0

9 40 56 0

0 14 14 0 100.0 100.0 100.0

5 2 11 0 0 2 2 0 100.0 100.0 100.0 3 0 6 0 0 0 0 0 100.0 100.0 .0

2 2 5 0 0 2

2 0 100.0 100.0 100.0

4 38 45 0 0 12 12 0 100.0 100.0 100.0

78 30 9 0 0 0 0 0 100.0 100.0 .0

11 1 2 0 0 0 0 0 100.0 100.0 .0 1 0 0 0 0 0 0 0 100.0 100.0 .0

10 1 2 0 0 0 0 0 100.0 100.0 .0

67 29 7 0 0 0

0 0 100.0 100.0 .0

227 10 291

2 3 0 0 0 99.6 99.6 .0

215 9 271 2 3 0 0

0 99.6 99.6 .0

204

8 254 2 3

0 0 0 99.6 99.6 .0

11 1 17 0 0 0 0 0 100.0 100.0 .0

12 1 20 0 0 0

0

0 100.0 100.0 .0

234 46 450 7 0 0 0 0 99.1 99.1 .0

62 10 362 7 0 0

00 98.4 98.4 .0

30 3 293

7 0 0 0 0 97.9 97.9 .0

32 7 69 0 0 0

0

0 100.0 100.0 .0

172 36 88 0 0

0 0 0 100.0 100.0 .0

10 0 135 0 5 0 0 0 100.0 100.0 .0 1 0 6 0 3 0 0 0 100.0 100.0 .0

0 0 0 0 2 0 0 0 .0 .0 .0

1 0 6 0 1 0

0 0 100.0 100.0 .0

9 0 129 0 2 0

0

0 100.0 100.0 .0

NUMBER OF BANKS AND BRANCHES 181

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, 1970—CONTINUED

GRO U PED A C CO RD IN G TO IN SU R A N C E STATUS AND CLASS OF BANK, AND BY STATE OR AREA AND TYPE OF OFFICE

Ail banks Commercial banks and nondeposit trust companies Mutual savings banks Percentage insured 1

State and type of bank

or office

Insured Noninsured

All

banks

of

deposit

Commercial

banks

of

deposit

Total

In ­

sured

Noninsured Total

Total

Members F. R.

System

Not

members

F. R.

System

Banks

of deposit 2

Nondeposit

trust

companies3

Total

In ­

sured

Noninsured

Mutual

savings

banks

National State

Idaho— a ll o ffic e s ............................................................................ 180 180 0 180 180 116 34 30 0 0 0 0 0 100.0 100.0 .0

Banks.................................................................................................. 24 24 0 24 24 7 6 11 0 0 0 0 0 100.0 100.0 .0

11 11 0 11 11 3 3 5 0 0 0 0 0 100.0 100.0 .0

Banks operating branches.......................................................... 13 13 0 13 13 4 3 6 0 0 0 0 0 100.0 100.0 .0

Branches............................................................................................. 156 156 0 156 156 109 28 19 0 0 0 0 0 100.0 100.0 .0

Illin o is — a ll o ffic e s .......................................................................... 1,206 1,203 3 1,206 1,203 473 86 644 1 2 0 0 0 99.9 99.9 .0

Banks................................................................................................... 1,108 1,105 3 1,108 1,105 414 78 613 1 2 0 0 0 99.9 99.9 .0

Unit banks ............................................................................. 1,014

94

1,011

94

3 1,014 1,011 358 70 583 1 2 0 0 0 99.0 99.9 .0

Banks operating branches ....................................................... 0 94 U 56 8 30 0 0 0 0 0 100.0 100.0 .0

Branches .......................................................................................... 98 98 0 98 98 59 8 31 0 0 0 0 0 100.0 100.0 .0

Ind iana— a ll o ffices ....................................... 1,043

411

1,040

408

3 1,039 1,036 462 125 449 2 1 4 4 0 99.8 99.8 100.0

Banks................................................................................................... 3 407 404 122 63 219 2 1 4 4 0 99.5 99.5 100.0

Unit banks..................................................................................... 218 215 3 214 211 48 40 123 2 1 4 4 0 99.1 99.1 100.0

Banks operating branches ....................................................... 193 193 0 193 193 n 23 96 0 0 0 0 0 100.0 100.0 .0

Branches ........................................................................................... 632 632 0 632 632 340 62 230 0 0 0 0 0 100.0 100.0 .0

Iow a— all o ffices ........................................................................... 984 976 8 984 976 153 79 744 7 1 0 0 0 99.3 99.3 .0

Banks................................................................................................... 666 658 8 666 658 99 50 509 7 1 0 0 0 98.9 98.9 .0

Unit banks..................................................................................... 448 440 8 448 440 59 33 348 7 1 0 0 0 98.4 98.4 .0

Banks operating branches.......................................................... 218 218 0 218 218 40 17 161 0 0 0 0 0 100.0 100.0 .0

Branches ........................................................................................... 318 318 0 318 318 54 29 235 0 0 0 0 0 100.0 100.0 .0

Kansas— a ll o ffic e s ......................................................................... 670 669 1 670 669 205 39 425 1 0 0 0 0 99.9 99.9 .0

Banks ............................................................................................. 601 600 1 601 600 171 32 397 1 0 0 0 0 99.8 99.8 .0

Unit banks ........................................................................... 534 533 1 534 533 139 25 369 1 0 0 0 0 99.8 99.8 .0

Banks operating branches ....................................................... 67 67 0 67 67 32 7 28 0 0 0 0 0 100.0 100.0 .0

B ranches ........................................................................... 69 69 0 69 69 34 1 28 0 0 0 0 0 100.0 100.0 .0

K entucky— a ll o ffices .................................................................. 671 667 4 671 667 222 68 377 4 0 0 0 0 99.4 99.4 .0

Banks ...................................................................................... 343 339 4 343 339 80 14 245 4 0 0 0 0 98.8 98.8 .0

Unit banks . ........................................................... 208 204 4 208 204 36 6 162 4 0 0 0 0 98.1 98.1 .0

Banks operating branches ....................................................... 135 135 0 135 135 44 8 83 0 0 0 0 0 100.0 100.0 .0

Branches............................................................................................. 328 328 0 328 328 142 54 132 0 0

° ° 0 100.0 100.0 .0

182 FEDERAL DEPOSIT INSURANCE CORPORATION

Digitized for FRASER 

http://fraser.stlouisfed.org/ 

Federal Reserve Bank of St. Louis
Louisiana— a ll o ffic e s ...........

Banks..........................................

Unit banks..........................

Banks operating branches .

Branches....................................

M a in e— a ll o ffic e s ....................

Banks..........................................

Unit banks.............................

Banks operating branches.

Branches....................................

M ary lan d — all o ffic e s ............

Banks..........................................

Unit banks.............................

Banks operating branches.

Branches....................................

M assachusetts— all o ffic e s .

Banks..........................................

Unit banks.............................

Banks operating branches.

Branches 3.................................

M ichigan— a ll o ffic e s .............

Banks..........................................

Unit banks............................

Banks operating branches .

Branches....................................

M in n eso ta— all o ffic e s ..........

Banks..........................................

Unit banks.............................

Banks operating branches.

Branches....................................

M ississippi— all o ffic e s .........

Banks..........................................

Unit banks.............................

Banks operating branches.

Branches....................................

M iss o u ri— a ll o ffic e s ..............

Banks..........................................

Unit banks.............................

Banks operating branches.

Branches....................................

M o n tan a— a ll o ffic e s ..............

B anks..........................................

Unit banks.............................

Banks operating branches.

Branches....................................

624 623 1 624 623

231 230 1 231 230

98 97 1 98 97

13S 133 0 133 133

393 393 0 393 393

325 320 5 269 265

75 70 5 43 39

28 23

5 11

7

47 47

0 32 32

250 250

0 226 226

684 677

7 636 629

120 119 1 115 114

44 44

0 44 44

76 75 1 71 70

564 558 6 521 515

1,306 943 363 906 900

334 166 168 162 158

119 39 80 40 37

215 127 88 122 121

972 111 195 744 742

1,534 1,530 4 1,534 1,530

331 329

2 331 329

129 128

1 129 128

202 201 1 202 201

1,203 1,201 2 1,203 1,201

741 738

3 740 737

730 727

3 729 726

723 720

3 722 719

7 7 0

7

7

11 11 0 11 11

530 530

0 530 530

182 182

0 182 182

68 68 0 68 68

114 114

0 114 114

348 348

0 348 348

764 757 7 764 757

6/1 664

7 671 664

578 571

7 578 571

93 93 0 93 93

93 93

0 93 93

145 144

1 145 144

140 139 1 140 139

135 134

1 135 134

5 5

0

5

5

5 5

0

5

5

230 47 346

1

0

49 10 171

1

0

11 1 85 1 0

38

9 86

0

0

181 37 175 0

0

122 70 73

4

0

19 6 14

4

0

4

1

2

4

0

15

5 12

0

0

103 64 59

0

0

299 75 255

7

0

42

7 65 1

0

11

1 32

0

0

31 6 33

1

0

257 68 190

6

0

514 171 215

6

0

86 15 57 4 0

22 0 15

3

0

64 15 42

1

0

428 156 158

2

0

662 531 337

3

1

101 103 125 1 1

30 38 60

0

1

71 65 65 1

0

561 428 212 2

0

205 24 508 3

0

199 24 503

3

0

197 24 498

3

0

2 0

5 0 0

6 0

5 0 0

182 19 329

0

0

38 6 138

0

0

4

1 63

0

0

34

5 75 0 0

144 13 191 0

0

123 87 547 4

3

98 71 495 4

3

73 55 443

4

3

25 16 52

0

0

25 16 52

0

0

51 43 50 0 1

49 41 49

0

1

47 39 48 0 1 2 2 1 0 0 2 2 1 0 0

0

0 99.8 99.8 .0

0

0 99.6 99.6 .0

0

0 99.0 99.0 .0

0

0 100.0 100.0 .0

0 0 100.0 100.0 .0

55

1 98.5 98.5 98.2

31 1 93.3 90.7 96.9

16

1 82.1 63.6 94.1

15 0 100.0 100.0 100.0

24

0 100.0 100.0 100.0

48

0 99.0 98.9 100.0

5

0 99.2 99.1 100.0

0

0 100.0 100.0 .0

5

0 98.7 98.6 100.0

43

0 98.9 98.8 100.0

43 357 72.2 99.3 10.7

8 164 49.7 97.5 4.7 2 77 32.8 92.5 2.5 6 87 59.1 99.2 6.5

35 193 79.9 99.7 15.4

0 0 99.8 99.8 .0 0 0 99.7 99.7 .0 0 0 100.0 100.0 .0 0 0 99.5 99.5 .0 0 0 99.8 99.8 .0 1 0 99.6 99.6 100.0

1 0 99.6 99.6 100.0 1 0 99.6 99.6 100.0 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 99.5 99.5 .0

0 0 99.4 99.4 .0 0 0 ,99.3 99.3 .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

00000

56

32

17

15

24

48505

43

400

172

79

93

2280000011100000000000000000

NUMBER OF BANKS AND BRANCHES 183

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, 1970—CONTINUED

G R O U P ED A C C O R D IN G TO IN SU R A N C E 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 insured 1

State and type of bank

or office

Insured Noninsured

All

banks

of

deposit

Commercial

banks

of

deposit

Total

In ­

sured

Noninsured Total

Total

Members F. R.

System

Not

members

F. R.

System

Banks

of deposit 2

Nondeposit

trust

companies3

Total

In ­

sured

Noninsured

Mutual

savings

banks

National State

483 479 4 483 479 150 12 317 0 4 0 0 0 100.0 100.0 .0

Banks ............................................................................... 441 437 4 441 437 125 11 301 0 4 0 0 0 100.0 100.0 .0

401

40

397 4 401 397 101 10 286 0 4 0 0 0 100.0 100.0 .0

Banks operating branches......................................................... 40 0 40 40 24 1 15 0 0 0 0 0 100.0 100.0 .0

Branches ........................................................................................... 42 42 0 42 42 25 1 16 0 0 0 0 0 100.0 100.0 .0

N evada— a ll o ffic es ...................................................................... 94 94 0 94 94 65 15 14 0 0 0 0 0 100.0 100.0 .0

Banks ........................................................................................ 8 8 0 8 8 4 1 3 0 0 0 0 0 100.0 100.0 .0

Unit banks..................................................................................... 2 2 0 2 2 1 0 1 0 0 0 0 0 100.0 100.0 .0

Banks operating branches ....................................... 6 6 0 6 6 3 1 2 0 0 0 0 0 100.0 100.0 .0

Branches ............................................................. 86 86 0 86 86 61 14 11 0 0 0 0 0 100.0 100.0 .0

N ew H am pshire— a ll o ffic e s ....................................................... 182 180 2 137 135 101 2 32 2 0 45 45 0 98.9 98.5 100.0

Banks ........................................................... 104 102 2 74 72 48 1 23 2 0 30 30 0 98.1 9 7.3 100.0

Unit banks .. . . .................................................... 67 65 2 45 43 25 0 18 2 0 22 22 0 97.0 95.6 100.0

Banks operating branches ........................................... 37 37 0 29 29 23 1 5 0 0 8 8 0 100.0 100.0 100.0

Branches . .................................................................... 78 78 0 63 63 53 1 9 0 0 15 15 0 100.0 100.0 100.0

N ew Jersey— a ll o ffices . ........................................... 1,298 1,296 2 1,229 1,227 816 227 184 0 2 69 69 0 100.0 100.0 100.0

Banks ........................................................................................... 237 235 2 217 215 129 33 53 0 2 20 20 0 100.0 100.0 100.0

Unit banks ......................................... 56 54 2 48 46 22 5 19 0 2 8 8 0 100.0 100.0 100.0

Banks operating branches ....................................................... 181 181 0 169 169 107 28 34 0 0 12 12 0 100.0 100.0 100.0

Branches .................................................... 1,061 1,061 0 1,012 1,012 687 194 131 0 0 49 49 0 100.0 100.0 100.0

N ew M exico— a ll o ffices ........................................... 196 196 0 196 196 106 12 78 0 0 0 0 0 100.0 100.0 .0

Banks ............................................................. 66 66 0 66 66 33 6 27 0 0 0 0 0 100.0 100.0 .0

Unit banks . .................................................................. 17 17 0 17 17 8 2 7 0 0 0 0 0 100.0 100.0 .0

Banks operating branches......................................................... 49 49 0 49 49 25 4 20 0 0 0 0 0 100.0 100.0 .0

.0 Branches . ............................................................. 130 130 0 130 130 73 6 51 0 0 0 0 0 100.0 100.0

N ew York— a ll o ffic es ........................................................ 3,215 3,181 34 2,752 2,718 1,434 1,114 170 27 7 463 463 0 99.2 99.0 100.0

100.0 Banks ...................................................................................... 432 408 24 311 287 169 76 42 18 6 121 121 0 95.8 94.1

147 131 16 121 105 64 21 20 11 5 26 26 0 92.3 90.5 100.0

Banks operating branches ........................................... 285 277 8 190 182 105 55 22 7 1 95 95 0 97.5 96.3 100.0

2,783 2,773 10 2,441 2,431 1,265 1,038 128 9 1 342 342 0 99.7 9 9.6 100.0

184 FEDERAL DEPOSIT INSURANCE CORPORATION

Digitized for FRASER 

http://fraser.stlouisfed.org/ 

Federal Reserve Bank of St. Louis
N o rth C a ro lin a — a ll o ffic es

Banks........................................

Unit banks...........................

Banks operating branches.

Branches....................................

N o rth D akota— a ll o f f ic e s ..

Banks........................................

Unit banks...........................

Banks operating branches.

Branches....................................

Ohio— a ll o ffic e s ....................

Banks..........................................

Unit banks............................

Banks operating branches.

Branches....................................

O klahom a— a ll o ffic e s .........

Banks........................................

Unit banks..........................

Banks operating branches.

Branches..................................

O regon— a ll o ffic e s ...............

Banks........................................

Unit banks...........................

Banks operating branches.

Branches 3...............................

P en n sy lv a n ia — a ll o f f ic e s ..

Banks........................................

Unit banks...........................

Banks operating branches.

Branches 3...............................

Rhode Island— a ll o ffic e s ..

Banks........................................

Unit banks...........................

Banks operating branches.

Branches....................................

South C arolina— a ll o ffices .

Banks..........................................

Unit banks...........................

Banks operating branches.

Branches....................................

South D akota— a ll o ffic e s ..

Banks..........................................

Unit banks............................

Banks operating branches.

Branches....................................

1,217 1,209 8 1,217 1,209 572 4 633

98 97

1 98 97 22 2 73

30 30 0 30 30 3

1 26

68 67

1 68 67 19 1 47

1,119 1,112 7 1,119 1,112 550

2 560

240 235

5 240 235 54 6 175

169 166 3 169 166 42 4 120

118 1162 118 116 31 3 82

51 50

1 51 50 11 1 38

71 69

2 71 69 12 2 55

1,821 1,819

2 1,820 1,818 962 467 389

517 515

2 516 514 217 120 177

238 236 2 237 235 68 64 103

279 279 0 279 279 149 56 74

1,304 1,304 0 1,304 1,304 745 347 212

494 493 1 494 493 243 22 228

434 433 1 434 433 203 19 211

376 375 1 376 375 165 16 194

58 58 0 58 58 38

3 17

60 60 0 60 60 40 3 17

389 387 2 386 384 260 0 124

50 48 2 49 47 10 0 37

20 18 2 20 18 3 0 15

30 30 0 29 29 7 0 22

339 339 0 337 337 250

0 87

2,301 2,291 10 2,198 2,188 1,346 264 578

479 471

8 471 463 299 23 141

220 213 7 219 212 139

9 64

259 258

1 252 251 160 14 77

1,822 1,820 2 1,727 1,725 1,047 241 437

262 252 10 184 174 98

0 76

20 18 2 13 11

5

0

6

0 0 0 0 0 0

0

0

20 18 2 13 11

5 0 6

242 234 8 171 163 93 0 70

520 520 0 520 520 261 11 248

102 102 0 102 102 19

6 77

40 40

0 40 40

4 3 33

62 62 0 62 62 15 3 44

418 418 0 418 418 242

5 171

259 259

0 259 259 91 29 139

161 161 0 161 161 33 25 103

122 122 0 122 122 24 22 76

39 39 0 39 39 9 3 27

98 98 0 98 98 58 4 36

8 0

0

0 0 99.3 99.3 .0

1 0 0 0 0 99.0 99.0 .0 0 0 0 0 0 100.0 100.0 .0

1 0 0 0 0 98.5 98.5 .0 1 0 0 0 0 9 9.4 99.4 .0

5 0 0 0 0 97.9 97.9 .0

3 0 0 0

0 98.2 98.2 .0

2 0 0 0 0 98.3 98.3 .0 1 0 0 0 0 98.0 98.0 .0

2 0 0 0 0 97.2 97.2 .0 2 0 1 1 0 99.9 99.9 100.0 2 0 1 1 0 99.6 99.6 100.0

2 0 1 1

0 99.2 99.2 100.0

0 0

0

0

0 100.0 100.0 .0

0 0 0 0 0 100.0 100.0 .0

0 1 0 0 0 100.0 100.0 .0 0 1 0 0 0 100.0 100.0 .0

0 1 0 0 0 100.0 100.0 .0 0 0 0 0 0 100.0 100.0 .0

0 0 0

0

0 100.0 100.0 .0

2 0 3 3

0 99.5 99.5 100.0

2 0

1

1

0 96.0 95.9 100.0

2 0 0 0

0 90.0 90.0 .0

0 0 1 1 0 100.0 100.0 100.0

0 0 2 2 0 100.0 100.0 100.0 7 3 103 103 0 99.7 99.7 100.0

5 3 8 8 0 98.9 98.9 100.0 4 3 1 1 0 98.2 98.1 100.0 1 0 7 7 0 99.6 99.6 100.0 2 0 95 95 0 99.9 99.9 100.0

10 0 78 78 0 96.2 94.6 100.0

2 0

7 7 0 90.0 84.6 100.0

0 0 0 0

0 .0 .0 .0

2 0 7 7 0 90.0 84.6 100.0 8 0 71 71 0 96.7 95.3 100.0

0 0 0 0

0 100.0 100.0 .0

0 0

0 0 0 100.0 100.0 .0

0 0 0 0 0 100.0 100.0 .0 0 0 0 0 0 100.0 100.0 .0 0 0 0 0 0 100.0 100.0 .0 0 0 0 0 0 100.0 100.0 .0 0 0 0 0 0 100.0 100.0 .0

0 0 0 0

0 100.0 100.0 .0

0 0 0 0

0 100.0 100.0 .0

0 0 0 0 0 100.0 100.0 .0

NUMBER OF BANKS AND BRANCHES 185

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, 1970—CONTINUED

G R O U P ED A C CO R D IN G TO IN SU R A N C E 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 1

Total

Insured

Noninsured Total

Insured Noninsured

Total

In ­

sured

Noninsured

All

banks

of

deposit

Commercial

banks

of

deposit

Mutual

savings

Total banks

Members F. R.

System

Not

members

F. R.

System

Banks

of deposit 2

Nondeposit

trust

comNa­ panies3

tional State

T en n essee—’a ll o ffic e s .................................................................. 796 791 5 796 791 353 46 392 4 1 0 0 0 99.5 99.5 .0

Banks................................................................................................... 308 304 4 308 304 77 13 214 3 1 0 0 0 99.0 99.0 .0

Unit banks............... ...................................................................... 165 162 3 165 162 17 8 137 2 1 0 0 0 98.8 98.8 .0

Banks operating branches.......................................................... US 142 1 143 142 60 5 77 1 0 0 0 0 99.3 99.3 .0

Branches............................................................................................. 488 487 1 488 487 276 33 178 1 0 0 0 0 99.8 99.8 .0

T exas— a ll o ffic e s ............................................................................. 1,267 1,259 8 1,267 1,259 550 58 651 8 0 0 0 0 99.4 99.4 .0

Banks................................................................................................... 1,191 1,183 8 1,191 1,183 530 50 603 8 0 0 0 0 99.3 99.3 .0

Unit banks..................................................................................... 1,120 1,112 8 1,120 1,112 512 43 557 8 0 0 0 0 99.3 99.3 .0

Banks operating branches......................................................... 71 71 0 71 71 18 7 46 0 0 0 0 0 100.0 100.0 .0

Branches ............................................................................................ 76 76 0 76 76 20 8 48 0 0 0 0 0 100.0 100.0 .0

U tah — a ll o ffic e s ............................................................................... 187 187 0 187 187 88 34 65 0 0 0 0 0 100.0 100.0 .0

Banks................................................................................................... 48 48 0 48 48 10 6 32 0 0 0 0 0 100.0 100.0 .0

Unit banks..................................................................................... 28 28 0 28 28 5 3 20 0 0 0 0 0 100.0 100.0 .0

Banks operating branches.......................................................... 20 20 0 20 20 5 3 12 0 0 0 0 0 100.0 100.0 .0

Branches............................................................................................. 139 139 0 139 139 78 28 33 0 0 0 0 0 100.0 100.0 .0

V erm ont— a ll o ffic e s ....................................................................... 136 135 1 128 127 75 0 52 0 1 8 8 0 100.0 100.0 100.0

Banks................................................................................................... 49 48 1 43 42 26 0 16 0 1 6 6 0 100.0 100.0 100.0

Unit banks..................................................................................... 22 21 1 18 17 11 0 6 0 1 4 4 0 100.0 100.0 100.0

Banks operating branches.......................................................... 27 27 0 25 25 15 0 10 0 0 2 2 0 100.0 100.0 100.0

Branches............................................................................................. 87 87 0 85 85 49 0 36 0 0 2 2 0 100.0 100.0 100.0

V irg in ia — a ll o ffic e s ........................................................................ 1,058 1,058 0 1,058 1,058 589 166 303 0 0 0 0 0 100.0 100.0 .0

Banks................................................................................................... 233 233 0 233 233. 101 42 90 0 0 0 0 0 100.0 100.0 .0

Unit banks..................................................................................... 82 82 0 82 82 27 18 37 0 0 0 0 0 100.0 100.0 .0

Banks operating branches......................................................... 151 151 0 151 151 74 24 53 0 0 0 0 0 100.0 100.0 .0

Branches............................................................................................. 825 825 0 825 825 488 124 213 0 0 0 0 0 100.0 100.0 .0

W ashington— a ll o ffic e s ................................................................ 712 710 2 649 647 469 50 128 1 1 63 63 0 99.9 99.8 100.0

Banks................................................................................................... 100 98 2 91 89 25 8 56 1 1 9 9 0 99.0 98.9 100.0

Unit banks..................................................................................... u 42 2 42 40 8 3 29 1 1 2 2 0 97.7 97.6 100.0

Banks operating branches......................................................... 56 56 0 49 49 17 5 27 0 0 7 7 0 100.0 100.0 100.0

Branches 3.......................................................................................... 612 612 0 558 558 444 42 72 0 0 54 54 0 100.0 100.0 100.0

186 FEDERAL DEPOSIT INSURANCE CORPORATION

Digitized for FRASER 

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Federal Reserve Bank of St. Louis
W est V irg in ia — a ll o ffic e s .................

Banks........................................................

Unit banks..........................................

Banks operating branches...............

Branches..................................................

W isconsin— a ll o ffic e s .........................

Banks........................................................

Unit banks..........................................

Banks operating branches..............

Branches..................................................

W yom ing— a ll o ffic e s ...........................

Banks........................................................

Unit banks..........................................

Banks operating branches..............

Branches..................................................

O th e r A reas

P ac ific Islands— a ll o ffic e s 4...........

B anks........................................................

Unit banks..........................................

Banks operating branches..............

Branches 5...............................................

Panam a C anal Zone— a ll o f f ic e s ..

B anks........................................................

Unit banks..........................................

Banks operating branches..............

Branches 6...............................................

P u erto R ico— a ll o ffic e s ....................

Banks........................................................

Unit banks..........................................

Banks operating branches..............

Branches 7...............................................

V irg in Islands— a ll o ffic e s ................

Banks........................................................

Unit banks..........................................

Banks operating branches..............

Branches 8...............................................

205 205 0 205 205

200 200

0 200 200

195 195 0 195 195 5 5 0 5 5 5 5 0 5 5

884 880 4 881 877

611 607

4 608 604

m 438

4 439 435

169 169

0 169 169

273 273

0 273 273

72 72

0 72 72

70 70 0 70 70

68 68

0 68 68

2

2

0

2

2

2

2

0

2

2

20 9 11 20 9 0 0 0 0 0 0 0 0 0 0

0 0

0

0

0

20

9 11 20

9

2 0

2

2

0

0

0 0 0

0

0 0 0 0

0

0

0 0 0

0

2 0 2

2

0

204 189 15 203 188

14

9

5 13

8

4

2

2 3 1

10

7

3 10

7

190 180 10 190 180

30 25

5 30 25

6

1

5

6

1

5

0

5

5

0

1

1

0

1

1

24 24

0 24 24

37 83

0

0

35 80 0

0

33 77 0

0

2 3

0

0

2 3 0

0

62 625

1

3

42 437 1 3

33 312 1

3

9 125 0

0

20 188

0

0

13 17

0

0

13 16 0

0

13 15 0 0

0 1 0 0 0 1 0 0 0 4 11 0 0 0 0 0 0 0 0 0 0 0 0 0 0 4 11 0 0 0 2 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 2 0 0 169 15 0 0 8 5 0 0 1 2 0 0 7 3 0 0 161 10 0 0 0 5 0 0 0 5 0 0 0 5 0 0 0 0 0

0 0

0

0

0 100.0 100.0 .0 0 100.0 100.0 .0 0 100.0 100.0 .0 0 100.0 100.0 .0 0 100.0 100.0 .0 0 99.9 99.9 100.0 0 99.8 99.8 100.0 0 99.8 99.8 100.0 0 100.0 100.0 .0 0 100.0 100.0 .0

0 100.0 100.0 .0 0 100.0 100.0 .0 0 100.0 100.0 .0 0 100.0 100.0 .0 0 100.0 100.0 .0 0 45.0 45.0 .0 0 .0 .0 .0 0 .0 .0 .0 0 .0 .0 .0 0 45.0 45.0 .0 0 .0 .0 .0 0 .0 .0 .0

0 .0 .0 .0 0 .0 .0 .0 0 .0 .0 .0 0 92.6 92.6 100.0 0 64.3 61.5 100.0 0 5 0.0 3 3.3 100.0

0 70.0 70.0 .0 0 94.7 94.7 .0 0 83.3 83.3 .0 0 16.7 16.7 .0 0 .0 .0 .0 0 100.0 100.0 .0 0 100.0 100.0 .0

00000333000000000000000001110000000

NUMBER OF BANKS AND BRANCHES 187

Digitized for FRASER 

http://fraser.stlouisfed.org/ 

Federal Reserve Bank of St. Louis
Table 103. NUM BER OF BANKING OFFICES IN THE UNITED STATES (STATES AND OTHER AREAS),

DECEMBER 31, 1970— CONTINUED 

G R O U P ED A C CO RD IN G TO IN SU R A N C E STATUS AND CLASS OF BANK, AND BY STATE OR AREA AN D TYPE OF OFFICE

1 Nondeposit trust companies are excluded in computing these percentages.

2 Includes 13 noninsured branches of insured banks; 11 branches in the Pacific Islands and

2 in the Panama Canal Zone.

s Massachusetts: 1 branch operated by a noninsured bank in New York.

New York: 14 branches operated by 3 insured banks in Puerto Rico (not members of

F. R. System ).

Oregon: 1 branch operated by a national bank in California.

Pennsylvania: 2 branches— 1 operated by a noninsured bank in New York and 1 operated

by a national bank in New Jersey.

Washington: 2 branches operated by a national bank in California.

4 United States possessions (American Samoa, Guam, Midway Islands, and Wake Island);

Trust Territories (K w ajalein, Majuro, Palau Islands, Ponape Island, Saipan, and Truk).

5 Pacific Islands: 20 branches.

American Samoa (Pago Pago): 1 insured branch operated by an insured bank in Hawaii

(not member of F. R. System).

Caroline Islands on T ruk: 1 noninsured branch operated by a national bank in California.

Mariana Islands: 6 branches (4 insured on Guam and 2 noninsured on Saipan) operated by a national bank in California.

Guam: 4 insured branches operated by 2 insured banks in Hawaii (not members of

F. R. System) and by a national bank in New York.

Caroline Islands: 3 noninsured branches (1 on Palau Islands [Koror], 1 on Ponape Island

[ Kolonia], 1 on Yap Island [Colonia]) operated by an insured bank in Hawaii (not member

of F. R. System).

Marshall Islands: Kwajalein— 2 noninsured branches operated by an insured bank in

Hawaii (not member of F. R. System). Majuro— 1 noninsured branch operated by a

national bank in California.

Midway Islands on Sand Island: 1 noninsured branch operated by an insured bank in

Hawaii (not member of F. R. System).

Wake Island: 1 noninsured branch operated by an insured bank in Hawaii (not member

of F. R. System).

6 Panama Canal Zone: 2 noninsured branches operated by 2 national banks in New York.

7 Puerto Rico: 19 insured branches operated by 2 national banks in New York,

8 Virgin Islands: 16 insured branches operated by 2 national banks in New York and by

1 national bank in California.

188 FEDERAL DEPOSIT INSURANCE CORPORATION

Digitized for FRASER 

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Federal Reserve Bank of St. Louis
Table 104. NUMBER AND DEPOSITS OF ALL COMMERCIAL AND MUTUAL SAVINGS BANKS, 

(STATES AND OTHER AREAS), DECEMBER 31, 1970 

BA N K S GROUPED BY CLA SS AND D EPO SIT SIZE

Deposit size

(in dollars)

All

banks

Insured commercial banks Noninsured

banks

and trust

companies

Mutual savings banks

Total

Members F.R. System Nonmembers

F.R. System

Insured

Noninsured

National State

N u m b er of banks

Less than 1 million ............................................................................................................ 295 192 24 5 163 103 0 0

1 to 2 million .......................................................................................... 929 908 97 37 774 20 0 1

2 to 5 m illio n ......................................................................................................................... 3,304 3,277 636 203 2,438

2,046

19 6 2

5 to 10 m illio n ....................................................................................................................... 3,493 3,449 1,132 271 14 14 16

10 to 25 m illio n ..................................................................................................................... 3,501

1,337

643

3,388

1,210

536

1,456

624

313 1,619

446

12 63 38

25 to 50 m illio n . . ......................................................................................... 140 6 71 50

50 to 100 m illio n .................................................................................................................. 305 61 170 10 60 37

100 to 500 m illio n ................................................................................................................ 535 426 265 84 77 10 79 20

500 million to 1 b illio n ....................................................................................................... 97 69 45 14 10 0 27 1

1 billion or m o re.................................................................................................................. 65 56 37 19 0 0 9 0

T o t a l.................................................................................................................................... 14,199

170,266

1,452,010

11,304,488

25,330,415

54,386,752

46,428,297

44,810,679

114,556,289

68,992,939

190,172,964

13,511

141,563

1,418,868

11,206,071

24,988,903

52,335,634

4,621 1,147

(In thousand

3,127

61,030

730,602

2,005,608

4,992,252

7,743

Is of dollars)

120,297

1,203,588

8,197,954

14,610,483

24,475,305

15,158,248

11,780,080

13,940,772

6,079,063

0

194 329 165

A m o unt of deposits

Less than 1 million ............................................................................................................ 18,139

154,250

2,277,515

28,703

31,146

65,280

116,096

217,374

0 0

1 to 2 million ......................................................................................... 0 1,996

2 to 5 m illio n ......................................................................................................................... 25,339 7,798

5 to 10 m illio n ....................................................................................................................... 8,372,812

22,868,077

97,292 128,124

10 to 25 m illio n .................................................................................................................... 1,141,626 692,118

25 to 50 m illio n ..................................................................................................................... 41,766,517

37,090,858

90,126,507

49,022,812

174,416,122

21,626,316

21,045,550

58,462,457

33,397,740

117,212,801

4,981,953

4,265,228

17,723,278

9,546,009

57,203,321

261,299

686,394

1,599,343

0

2,544,348 1,856,133

2,565,005

3,488,108

662,544

0

50 to 100 m illio n .................................................................................................................. 4,468,422

19,342,331

19,307,583

15,756,842

100 to 500 m illio n . ......... ................................................................

500 million to 1 billion.......................................................................................................

1 billion or m ore................................................................................................................... 0

T o ta l .................................................................................................................................. 557,605,099 482,513,855 285,435,657 101,512,408 95,565,790 3,005,635 62,683,783 9,401,826

NUMBER OF BANKS AND BRANCHES 189

Digitized for FRASER 

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Federal Reserve Bank of St. Louis
Table

Table

Table

Table

Table

Table

Table

Table

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

other areas), June 30, 1970

Banks grouped by insurance status and class of bank

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

other areas), December 31, 1970

Banks grouped by insurance status and class of bank

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

other areas), June 30, 1970, and December 31, 1970

Banks grouped by insurance status

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

other areas), December call dates, 1961, 1966-1970

109. Assets and liabilities of insured mutual savings banks in the United States (States 

and other areas), December call dates, 1961, 1966-1970

110. Percentages of assets and liabilities of insured commercial banks operating 

throughout 1970 in the United States (States and other areas), December 31, 

1970

Banks grouped by amount of deposits

111. Percentages of assets and liabilities of insured mutual savings banks operating 

throughout 1970 in the United States (States and other areas), December 31, 

1970

Banks grouped by amount of deposits

112. Distribution of insured commercial banks in the United States (States and other 

areas), December 31, 1970

Banks grouped according to amount of deposits and by ratios of selected items

to assets or deposits

ASSETS AND LIABILITIES OF BANKS

190 FEDERAL DEPOSIT INSURANCE CORPORATION

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Federal Reserve Bank of St. Louis
Before 1969, statements of assets and liabilities were submitted

by insured commercial banks on either a cash or an accrual basis,

depending upon the bank’s method of bookkeeping. In 1969, insured commercial banks having resources of $50 million or more,

and beginning in 1970, $25 million or more, were required to report their assets and liabilities on the basis of accrual accounting.

Where the results are not significantly different, particular accounts

may be reported on a cash basis. Banks not subject to full accrual

accounting are required to report the installment loan function on

an accrual basis, or else to submit a statement of unearned income

on installment loans carried in surplus accounts. All banks are

required to report income taxes on an accrual basis.

All majority-owned premises subsidiaries are fully consolidated

in 1969 and subsequent reports. Consolidation is required of other

majority-owned domestic subsidiaries (but not domestic commercial

bank subsidiaries) meeting either of the following criteria: any subsidiary in which the bank's investment represents 5 percent or more

of its equity capital accounts, or any subsidiary whose gross operating revenues amount to 5 percent of the bank's gross revenues.

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.

Prior to 1969, securities held by commercial banks were reported

net of valuation reserves; total loans were reported both gross

(before deductions for reserves) and net, the latter included in

“Total assets." Beginning in 1969, loans and securities are shown

on a gross basis in “Total assets" of commerical banks. All reserves on loans and securities, including the reserves for bad debts

set up pursuant to Internal Revenue Service rulings, are included

in “ Reserves on loans and securities" on the liability side of the

balance sheet.

Individual loan items are reported gross. Installment loans, however, are ordinarily reported net if the installment 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" includes 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.)

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 June

30, 1970, and December 31, 1970, are shown in the Corporation's

semiannual publication Assets and Liabilities— Commercial and

Mutual Savings Banks.

Sources of data. Insured banks: see p. 213; noninsured banks:

State banking authorities; and reports from individual banks.

ASSETS AND LIABILITIES OF BANKS 191

Digitized for FRASER 

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Federal Reserve Bank of St. Louis
Table 105. ASSETS AND LIABILITIES OF ALL COMMERCIAL BANKS IN THE UNITED STATES (STATES AND OTHER AREAS),

JUNE 30, 1970

B A N K S G R O U P E D B Y IN S U R A N C E S T A T U S A N D C L A S S O F B A N K

(Amounts in thousands of dollars)

Insured banks Noninsured banks

Asset, liability, or capital account item Total

Total

Members of

Federal Reserve System

Not

members

of F.R.

System

Total

Banks

of

deposit2

Nondeposit

trust

1 companies 4Total National State 

T o ta l a s s e ts .................................................................................................................... 534,932,157 529,911,148 431,543,317 314,334,409 117,208,908 98,367,831 5,021,009 1,616,928 404,081

Cash, re serves, balances w ith banks, and collection item s— to ta l. 85,909,632 85,086,666 75,598,145 52,000,544 23,597,601 9,488,521 822,966 771,472 51,494

Currency and coin................................................................................................ 7,141,544 7,106,654 5,487,542 4,150,768 1,336,774 1,619,112 34,890 34,446 444

Reserve with Federal Reserve banks (member b a n k s).........................

Demand balances with banks in U.S. (except American branches

21,532,330 21,532,330 21,532,330 16,285,978 5,246,352 0 0 0 0

of foreign b an ks).............................................................................................. 18,035,319 17,370,388 10,452,787 8,361,267 2,091,520 6,917,601 664,931 621,697 43,234

Other balances with banks in United States.............................................. 285,151 254,858 167,856 143,624 24,232 87,002 30,293 22,589 7,704

Balances with banks in foreign countries.................................................... 399,524 343,840 315,928 187,003 128,925 27,912 55,684 55,591 93

Cash items in process of collection................................................................ 38,515,764 38,478,596 37,641,702 22,871,904 14,769,798 836,894 37,168 37,149 19

S ec u ritie s — to ta l..................................................................................................... 127,700,683 126,449,958 95,491,472 71,526,495 23,964,977 30,958,486 1,250,725 1,016,284 234,441

U.S. Treasury securities..................................................................................... 51,860,255 51,390,820 37,344,965 28,212,097 9,132,868 14,045,855 469,435 424,135 45,300

Securities of other U.S. Government agencies and corporations — 10,198,281 9,995,016 6 ,152,716 4,790,965 1,361,751 3,842,300 203,265 192,879 10,386

Obligations of States and subdivisions......................................................... 63,152,940 62,709,981 50,127,351 37,064,271 13,063,080 12,582,630 442,959 333,053 109,906

Other securities..................................................................................................... 2,489,20? 2,354,141 1,866,440 1,459,162 407,278 487,701 135,066 66,217 68,849

Investm ent securities— to ta l............................................................................ 124,721,827 123,475,545 92,566,512 69,482,585 23,083,927 30,909,033 1,246,282 1,011,841 234,441

U.S. Treasury securities................................................................................. 50,982,270 50,517,278 36,495,081 27,567,557 8,927,524 14,022,197 464,992 419,692 45,300

Securities o f other U.S. Government agencies and corporations.......... 9,777,131 9,573,866 5,748,377 4,509,768 1,238,609

12,511,032

3,825,489 203,265

442,959

192,879 10,386

Obligations o f States and subdivisions........................................................ 61,519,591 61,076,632 48,500,775 35,989,743 12,575,857 333,053 109,906

Other securities................................................................................................... 2,442,885 2,307,769 1,822,279 1,415,517 406,762 485,490 135,066 66,217 68,849

Trading account securities— to tal................................................................... 2,978,856 2,974,413 2,924,960 2,043,910 881,050 49,453 4,443 4,443 0

U.S. Treasury securities................................................................................. 877,985 873,542 849,884 644,540 205,344 23,658 4 ,U 3 4,443 0

Securities o f other U.S. Government agencies and corporations........... 421,150 421,150 404,339 281,197 123,142 16,811 0 0 0

Obligations o f States and subdivisions......................................................... 1,633,349 1,633,349 1,626,576 1,074,528 552,048 6,773 0 0 0

Other securities.................................................................................................... 46,372 46,372 44,161 43,645 516 2,211 0 0 0

Federal funds sold and secu ritie s purchased under agreem ents

6,544,113 1,732,992 2,600,646 325,251 322,701 2,550 to re s ell— t o t a l................................................................................................ 11,203,002 10,877,751 8,277,105

With domestic commercial banks................................................................... 10,672,712 10,350,461 7,766,063 6,074,469 1,691,594 2,584,398 322,251 319,701 2,550

With brokers and dealers in securities......................................................... 339,740 336,740 330,494 298,697 31,797 6,246 3,000 3,000 0

With others.............................................................................................................. 190,550 190,550 180,548 170,947 9,601 10,002 0 0 0

192 FEDERAL DEPOSIT INSURANCE CORPORATION

Digitized for FRASER 

http://fraser.stlouisfed.org/ 

Federal Reserve Bank of St. Louis
O th er loans and discounts— t o t a l.................................................................

Real estate loans— to ta l.....................................................................................

Secured, by farm land........................................................................................

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 FH A or V A .....................................

Secured by multifamily (5 or more) residential properties:

Insured by Federal Housing Administration..................................

Not insured by F H A ..............................................................................

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 e s ta te )..................................

Commercial and industrial loans (incl. open market p aper)...............

Other loans to individuals— to ta l...................................................................

Passenger automobile instalment loans.......................................................

Credit cards and related plans:

Retail (charge account) credit card plans..............................................

Check credit and revolving credit plans..................................................

Other retail consumer instalment loans......................................................

Residential repair and modernization instalment loans........................

Other instalment loans for personal expenditures...................................

Single-payment loans for personal expenditures.....................................

All other loans (including o verdrafts)..........................................................

To ta l loans and s e c u ritie s .......................................................................

Bank premises, furniture and fixtures, and other assets representing

bank prem ises...................................................................................................

Real estate owned other than bank prem ises...........................................

Investments in subsidiaries not consolidated...........................................

Customers’ liability on acceptances outstanding.....................................

Other assets............................................................................................................

T o ta l lia b ilitie s , reserves, and cap ital a c c o u n ts .....................................

Business and personal deposits— t o t a l.....................................................

Individuals, partnerships, and corporations— demand..........................

Individuals, partnerships, and corporations— tim e .................................

Savings deposits................................................................................................

Deposits accumulated for payment o f personal loans..............................

Other deposits o f individuals, partnerships, and corporations.............

Certified and officers' checks, letters of credit, travelers' checks, etc.

288,152,972 286,052,783 233,372,281 170,666,608 62,705,673 52,680,502 2,100,189 2,054,572 45,617

71,291,260 70,961,829 53,519,027 40,846,231 12,672,796 17,442,802 329,431 313,921 15,510

4,054,310 4,029,714 1,973,418 1,548,587 424,831 2,056,296 24,596 24,014 582

7,223,518 7,121,922 6,251,866 5,216,019 1,035,847 870,056 101,591 101,274 317

2,575,045 2,521,351 2,176,995 1,749,294 427,701 344,^56 53,694 53,367 327

31,733,090 31,643,881 23,347,843 18,254,813 5,093,030 8,296,038 89,209 83,155 6,054

576,921 574,539 526,306 282,732 243,574 48,233 2,382 2,382 0

2,736,220 2,731,858 2,206,608 1,476,848 729,760 525,250 4,362 4,362 0

22,392,161 22,338,564 17,035,991 12,317,938 4,718,053 5,302,573 53,597 45,367 8,230

2,536,373 2,457,448 2,228,151 1,356,672 871,479 229,297 78,925 78,925 0

14,452,033 14,307,600 13,466,670 8,915,621 4,551,049 840,930 144,433 144,385 48

3,972,371 3,885,941 3,748,746 1,705,322 2,043,424 137,195 86,430 82,210 4,220

3,568,615 3,545,295 2,922,666 1,971,187 951,479 622,629 23,320 16,457 6,863

11,258,947 11,240,836 6,641,153 5,556,779 1,084,374 4,599,683 18,111 17,904 207

109,321,072 108,278,105 95,548,469 67,743,184 27,805,285 12,729,636 1,042,967 1,032,055 10,912

64,574,674 64,270,398 48,791,586 37,905,364 10,886,222 15,478,812 304,276 300,941 3,335

22,580,650 22,466,491 16,112,958 13,092,184 3,020,774 6,353,533 114,159 112,910 1,249

3,054,467 3,054,462 2,766,909 2,208,081 558,828 287,553 5 5 0

1,183,703 1,182,240 1,037,364 721,552 315,812 144,876 1,463 1,463 0

7,003,526 6,981,796 5,023,574 4,128,137 895,437 1,958,222 21,730 21,506 224

3,623,000 3,616,790 2,818,570 2,111,541 707,029 798,220 6,210 6,066 144

10,113,629 10,032,922 7,378,527 5,621,052 1,757,475 2,654,395 80,707 79,721 986

17,015,699 16,935,697 13,653,684 10,022,817 3,630,867 3,282,013 80,002 79,270 732

7,177,627 7,105,331 6,505,813 4,666,248 1,839,565 599,518 72,296 67,774 4,522

427,056,657 423,380,492 337,140,858 248,737,216 88,403,642 86,239,634 3,676,165 3,393,557 282,608

8,598,407 8,549,723 6,911,637 5,334,964 1,576,673 1,638,086 48,684 31,003 17,681

397,957 388,435 291,453 231,747 59,706 96,982 9,522 5,349 4,173

738,663 718,234 709,850 558,695 151,155 8,384 20,429 4,936 15,493

4,034,721 3,954,569 3,793,198 2,231,073 1,562,125 161,371 80,152 80,152 0

8,196,120 7,833,029 7,098,176 5,240,170 1,858,006 734.853 363,091 330,459 32,632

534,932,157 529,911,148 431,543,317 314,334,409 117,208,908 98,367,831 5,021,009 1,616,928 404,081

358,526,294 356,622,276 280,818,087 209,581,343 7 1,236,744 75,804,189 1,904,018 1,757,011 147,007

165,367,055 164,400,237 133,159,243 98,062,966 35,096,277 31,240,994 966,818 847,561 119,257

182,858,307 182,113,347 138,471,657 106,700,592 31,771,065 43,641,690 744,960 717,210 27,750

94,608,364 94,309,625 73,287,600 56,517,486 16,770,114 21,022,025 298,739 281,254 17,485

949,566 942,743 714,209 536,349 177,860 228,534 6,823 6,803 20

87,300,377 86,860,979 64,469,848 49,646,757 14,823,091 22,391,131 439,398 429,153 10,245

10,300,932 10,108,692 9,187,187 4,817,785 4,369,402 921,505 192,240 192,240 0

ASSETS AND LIABILITIES OF BANKS 193

Digitized for FRASER 

http://fraser.stlouisfed.org/ 

Federal Reserve Bank of St. Louis
Table 105. ASSETS AND LIABILITIES OF ALL COMMERCIAL BANKS IN THE UNITED STATES (STATES AND OTHER AREAS),

JUNE 30, 1970— CONTINUED 

BANKS GROUPED BY INSURANCE STATUS AND CLASS OF BANK

(Amounts in thousands of dollars)

Insured banks N oninsured banks

Asset, lia b ility, or capital account item Total

Total

Members of 

Federal Reserve System

Not 

members 

of F.R. 

System

Total

Banks

of

d e p o sit2

Nondeposit 

trust 

Total National State 1 companies 4

G overn m ent deposits— t o t a l............................................................................. 42,806,580 4 2,555,59 2 3 3 ,3 3 0 ,9 8 5 26,090,569 7,2 4 0 ,4 1 6 9 ,224,6 07 250,988 249,001 1,987

United States Government— d em and ........................................................ 8,099,047 8,049,504 6,960,409 5,069,841 1,890,568 1,089,095 49,543 4 7,5 56 1,987

United States Government— tim e ............................................................... 209,947 209,865 17 1 ,779 137,160 34,619 38,086 82 82 0

States and su b d ivisio n s— d em and............................................................. 17,2 18 ,4 1 3 17,0 9 1,0 18 1 2 ,9 7 2 ,7 7 7 10 ,244,879 2 ,72 7,8 9 8 4 ,118 ,2 4 1 127,39 5 127 ,39 5 0

States and sub d ivisio n s— tim e................................................................... 1 7 ,2 7 9 ,1 7 3 17,2 05,205 13,226,020 10,638,689 2 ,5 8 7 ,33 1 3 ,9 79 ,1 8 5 73,968 73,9 68 0

Dom estic in terbank deposits— t o t a l............................................................. 24,514,952 2 4 ,32 8 ,373 2 3 ,4 1 1 ,7 1 5 14,106,036 9 ,305,6 79 916,658 186,579 186,279 300

Commercial banks in the United States— d em an d ................................ 22,782,246 2 2 ,738 ,5 38 2 1,9 57,9 59 13,4 14 ,10 2 8 ,54 3 ,8 57 780,579 4 3,708 43,408 300

Com mercial banks in the United States— tim e ...................................... 511,144 510,344 421,228 216,282 204,946 89,116 800 800 0

Mutual savings banks in the United States— d em an d .......................... 1,0 79 ,761 985,280 939,657 404,170 535,487 45,623 94,481 94,481 0

Mutual savings banks in the United States— tim e ................................ 141,801 94,211 92,871 71,482 21,389 1,340 47,590 47,590 0

Foreign governm ent and bank deposits— t o t a l...................................... 10,802,16 1 1 0 ,4 6 5 ,5 73 10 ,225 ,5 04 6 ,04 1,2 05 4 ,184,299 240,069 336,588 335,090 1,498

Foreign governm ents, central banks, etc.— d e m a n d............................. 1,009,104 942,301 922,250 496,313 425,937 20,051 66,803 66,475 328

Foreign governm ents, central banks, etc.— tim e .................................... 6,858,406 6,796,190 6 ,730 ,0 52 4,140,009 2,590,043 66,138 62,216 61,216 1,000

Banks in foreign countries— dem and........................................................ 2,58 1,6 76 2,395,089 2 ,3 1 4 ,2 7 4 1,218,588 1,095,686 80,815 186,587 186,417 170

Banks in foreign countries— tim e ............................................................... 352,975 331,993 258,928 186,295 72 ,6 33 73,065 20,982 20,982 0

T otal d ep o s its ............................................................................................. 436,649,987 4 33,9 71 ,814 3 4 7,786 ,2 9 1 2 55,81 9,1 53 9 1,9 6 7,1 38 8 6 ,1 85 ,5 2 3 2 ,6 7 8 ,1 7 3 2 ,5 2 7 ,3 8 1 150,792

Demand....................................................................................................... 228,438,234 226,710,659 188,413,756 133,728,644 54,685,112 38,296,903 1,727,575 1,605,533 122,042

T im e............................................................................................................. 208,211,753 207,261,155 159,372,535 122,090,509 37,282,026 47,888,620 950,598 921,848 28,750

M iscellaneous lia b ilitie s — to ta l...................................................................... 50,112,865 48,400,620 4 5,292 ,746 30,6 0 1,2 2 3 14 ,6 9 1,523 3 ,1 0 7 ,8 7 4 1 ,7 1 2 ,2 4 5 1,660,596 51,649

Federal funds purchased (borrowed) and securities sold under 

agreements to re pu rch ase ........................................................................ 1 5 ,715 ,6 39 15,627,626 15 ,170 ,6 4 3 1 1 ,3 4 5 ,7 7 3 3,82 4,8 70 456,983 88,013 88,013 0

Other liab ilities for borrowed m oney........................................................ 2,928,141 2,632,086 2 ,3 4 6 ,79 7 1 ,71 5 ,1 4 2 6 31,655 285,289 296,055 284,370 11,685

Mortgage indeb ted ness................................................................................. 704,697 702,231 564,160 352,248 211,912 138,071 2,466 2,466 0

Acceptances outstanding.............................................................................. 4,129,269 4 ,02 8,523 3,86 6 ,749 2,268,652 1,598,097 16 1,774 100,746 100,746 0

Other lia b ilit ie s ............................................................................................... 26,635,119 25,410,154 2 3,34 4 ,39 7 14,919,408 8,424,989 2 ,0 6 5 ,75 7 1,224,965 1,1 85,0 01 39,964

Total lia b ilitie s .......................................................................................... 486,762,852 482 ,372,434 3 9 3,0 79 ,037 286,420,376 106,658,661 8 9,2 9 3,39 7 4 ,390 ,4 18 4 ,1 8 7 ,9 7 7 202,441

M in o rity in te re s t in consolidated s u b s id iaries...................................... 3,9 71 3,38 3 831 812 19 2,552 588 0 588

194 FEDERAL DEPOSIT INSURANCE CORPORATION

Digitized for FRASER 

http://fraser.stlouisfed.org/ 

Federal Reserve Bank of St. Louis
R eserves on loans and s e c u ritie s — t o t a l.................................................. 6,260,351 6,240,888 5,272,183 3,800,316 1,471,867 968,705 19,463 18,549 914

Reserve for bad debt losses on loans........................................................... 5,942,459 5,930,886 5,076,852 3,670,186 1,406,666 854,034 11,573 10,905 668

Other reserves on loans..................................................................................... 126,950 125,495 65,248 41,502 23,746 60,247 1,455 1,455 0

Reserves on securities........................................................................................ 190,942 184,507 130,083 88,628 41,455 54,424 6,435 6,189 246

C apital accoun ts— t o t a l..................................................................................... 41,904,983 41,294,443 33,191,266 24,112,905 9,078,361 8,103,177 610,540 410,402 200,138

Capital notes and debentures.......................................................................... 2,142,779 2,052,091 1,806,518 1,136,734 669,784 245,573 90,688 90,688 0

Equity capital— to tal........................................................................................... 39,762,204 39,242,352 31,384,748 22,976,171 8,408,577 7,857,604 519,852 319,714 200,138

Preferred stock......................................................................................... 112,154 107,614 95,747 62,583 33,164 11,867 4,540 4,540 0

Common stock.......................................................................................... 11,033,526 10,902,703 8,611,012 6,356,970 2,254,042 2,291,691 130,823 75,358 55,465

Surplus..................................................................................................... 17,760,426 17,599,075 14,361,377 10,438,277 3,923,100 3,237,698 161,351 124,447 36,904

Undivided profits..................................................................................... 9,788,762 9,622,386 7,493,932 5,437,743 2,056,189 2,128,454 166,376 79,660 86,716

Reserve for contingencies and other capital reserves............................ 1,067,336 1,010,574 822,680 680,598 142,082 187,894 56,762 35,709 21,053

PERCENTAGES

Of to ta l assets:

Cash and balances with other banks................................................................ 16.1% 16.1% 17.5% 16.5% 20.1% 9 .6 % 16.4% 16.7% 12.7%

U.S. Treasury securities and securities of other U.S. Government

agencies and corporations................................................................................. 11.4 11.3 9 .8 10.2 8.7 18.1 13.3 13.3 13.8

Other securities......................................................................................................... 12.5 12.5 12.3 12.6 11.8 13.3 11.6 8.7 44.2

Loans and discounts (including Federal funds sold and securities

purchased under agreements to re s ell)....................................................... 56.0 56.0 56.0 56.4 55.0 56.2 48.3 51.5 11.9

Other assets................................................................................................................ 4.1 4 .0 4 .4 4.3 4 .4 2.7 10.4 9 .8 17.3

Total capital accounts 5.......................................................................................... 7.9 7.8 7.7 7.7 7.7 8.2 17.8 3 13.2 3 49.5

O f to tal assets other than cash and U.S. Trea su ry securities:

Total capital accounts 5.......................................................................................... 10.6 10.5 10.4 10.3 10.7 10.8 23.5 3 1 7 .4 3 65.1

Number of banks.......................................................................................................... 13,690 13,487 5,804 4,638 1,166 7,683 203 154 49

1 Excludes 1 noninsured trust company in Massachusetts not engaged in deposit banking.

2 Includes asset and liability figures for 16 branches of foreign banks (tabulated as banks) licensed to do a deposit business in the State of New York. Capital is not allocated to these branches by the

parent banks.

3 Data for branches of foreign banks referred to in the previous footnote have been excluded in computing this ratio for noninsured banks of deposit and in total columns.

4 Amounts shown as deposits are special accounts and uninvested trust funds, with the latter classified as demand deposits of individuals, partnerships, and corporations. Includes 1 trust company, a

member of the Federal Reserve System.

5 Only 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 capital accounts to assets.

Note: Further information on the reports of assets and liabilities of banks may be found on page 191.

ASSETS AND LIABILITIES OF BANKS 195

Digitized for FRASER 

http://fraser.stlouisfed.org/ 

Federal Reserve Bank of St. Louis
Table 106. ASSETS AND LIABILITIES OF ALL COMMERCIAL BANKS IN THE UNITED STATES (STATES AND OTHER AREAS),

DECEMBER 31, 1970

BANKS GROUPED BY INSURANCE STATUS AND CLASS OF BANK

(Amounts in thousands of dollars)

Insured banks Noninsured banks

Asset, liability, or capital account item Total

Members of

Federal Reserve System

Not

members

of F.R.

System

Total

Banks

of

Nondeposit

trust

Total National State deposit1 companies3

T o ta l a s s e ts ................................................................................................................... 581,536,361 576,350,801 468,079,443 342,619,142 125,460,301 108,271,358 5,185,560 4,788,489 397,071

Cash, re serves, balances w ith banks, and collection item s— total 94,029,650

7,108,147

93,048,095

7,084,430

81,589,882

5,458,344

56,118,102

4,170,463

25,471,780

1,287,881

11,458,213

1,626,086

981,555

23,717

927,729

23,164

53,826

553

Reserve with Federal Reserve banks (member ban ks)......................... 23,325,123

21,806,059

23,325,123 23,325,123 16,389,622 6,935,501 0 0 0 0

Demand balances with banks in U.S. (except American branches

of foreign banks) .................................................................................... 21,088,737 12,685,561 9,928,136 2,757,425 8,403,176 717,322 675,272 42,050

11,213 Other balances with banks in United S ta te s .. . ................................ 1,522,694 1,401,661 1,062,245 921,152 141,093 339,416 121,033 109,820

Balances with banks in foreign countries .................................................. 475,948 395,356 344,758 224,122 120,636 50,598 80,592 80,592 0

Cash items in process of collection................................................................ 39,791,679 39,752,788 38,713,851 24,484,607 14,229,244 1,038,937 38,891 38,881 10

Secu rities— to tal ...................................................................................... 148,403,234 147,218,922 112,043,806 84,246,852 27,796,954 35,175,116 1,184,312 969,449 214,863

34,896

12,749

108,227

58,991

U S. Treasury securities . . .................................................................. 62,019,003 61,616,966 45,420,445 34,223,491 11,196,954 16,196,521 402,037 367,141

Securities of other U.S. Government agencies and corps...................... 13,459,256 13,277,707 8,680,486 6,681,300 1,999,186 4,597,221 181,549 168,800

Obligations of States and subdivisions ........................................... 69,844,469 69,390,338 55,680,891 41,541,587 14,139,304 13,709,447 454,131 345,904

Other securities..................................................................................................... 3,080,506 2,933,911 2,261,984 1,800,474 461,510 671,927 146,595 87,604

Investment securities— total ........................................................................... 142,736,921 141,554,863 106,455,254 80,242,479 26,212,775 35,099,609 1,182,058 967,195 214,863

U S Treasury securities......................................................................... 59,280,214 58,880,431 42,725,323 32,211,784 10,513,539 16,155,108 399,783 364,887 34,896

12,749 Securities o f other U S Government agencies and corps..................... 12,662,608

67,868,524

12,481,059 7,900,022 6,158,087 1,741,935 4,581,037 181,549 168,800

Obligations o f States and subdivisions................................................... 67,414,393 53,719,296 40,223,446 13,495,850 13,695,097 454,131 345,904

87,604

108,227

2,925,575 2,778,980 2,110,613 1,649,162 461,451 668,367 146,595 58,991

Trading account securities— to ta l................................................................... 5,666,313 5,664,059 5,588,552 4,004,373 1,584,179 75,507 2,254 2,254 0

0

JJ S Treasury securities ..................................................... 2,738,789 2,736,535 2,695,122 2,011,707 683,415 41,413 2,254 2,254

Securities o f other U S Government agencies and corps..................... 796,648 796,648 780,464 523,213 257,251 16,184 0 0 0

Obligations o f States and subdivisions ........................................... 1,975,945

154,931

1,975,945 1,961,595 1,318,141 643,454 14,350 0 0 0

154,931 151,371 151,312 59 3,560 0 0 0

F ederal funds sold and sec u ritie s purchased under ag reem en ts

to re s e ll— to ta l ................................................................................ 16,251,177 15,952,321 12,687,146 10,435,738 2,251,408 3,265,175 298,856 293.047

293.047

5.809

5.809 With domestic commercial banks................................................................... 13,474,649 13,175,793 9,959,706 7,901,946 2,057,760 3,216,087 298,856

With brokers and dealers in secu rities.. . ........................................... 2,267,869 2,267,869 2,226,429 2,051,828 174,601 41,440 0 0 0

508,659 508,659 501,011 481,964 19,047 7,648 0 0 0

196 FEDERAL DEPOSIT INSURANCE CORPORATION

Digitized for FRASER 

http://fraser.stlouisfed.org/ 

Federal Reserve Bank of St. Louis
O th e r lo a n s a n d d is c o u n ts — t o t a l..........................................................

Real estate loans— to tal.............................................................................

Secured by farm land..............................................................................

Secured by residential properties:

Secured by 1- to 4-fam ily residential properties:

Insured by Federal Housing Administration.............................

Guaranteed by Veterans Administration....................................

Not insured or guaranteed by FH A or V A ................................

Secured by multifamily (5 or more) residential properties:

Insured by Federal Housing Administration.............................

Not insured by F H A .....................................................................

Secured by other properties...................................................................

Loans to domestic com m ercial and foreign b a n ks..............................

Loans to other financial in stitu tio n s.......................................................

Loans to brokers and dealers in se c u ritie s ...........................................

Other loans for purchasing or carrying se c u ritie s...............................

Loans to farm ers (excluding loans on real e s ta te ).............................

Com m ercial and industrial loans (in cl. open market p a p e r)............

Other loans to in d ivid u a ls— to ta l............................................................

Passenger automobile installment loans.............................................

Credit cards and related plans:

Retail (charge account) credit card plans........................................

Check credit and revolving credit plans...........................................

Other retail consumer installment loans.............................................

Residential repair and modernization installment loans..................

Other installment loans for personal expenditures............................

Single-payment loans for personal expenditures................................

A ll other loans (includ ing o v e rd ra fts)....................................................

T o ta l lo a n s an d s e c u r it ie s ...........................................................

Bank prem ises, furniture and fixtures, and other assets representing

b a n k.p rem ises.........................................................................................

Real estate owned other than bank pre m ise s..........................................

Investm ents in sub sid iaries not co nsolidated..........................................

Customers' liab ility on acceptances outstanding.....................................

Other a ss e ts......................................................................................................

T o tal lia b ilit ie s , re s e r v e s , and ca p ita l a c c o u n t s .................................

B u s in e s s and p e rso n a l d e p o s its — t o t a l................................................

In d ivid uals, partnerships, and corporations— dem and......................

In d iv id u a ls, partnerships, and corporations— tim e .............................

(Savings deposits.....................................................................................

Deposits accumulated for payment o f personal loans........................

Other deposits o f individuals, partnerships, and corps......................

Certified and officers' checks, letters of credit, travelers' checks, etc.

300,409,513 298,189,504 242,740,855 178,029,442 64,711,413 55,448,649 2,220,009 2,171,553 48,456

73,275,013 73,053,364 54,911,714 41,826,420 13,085,294 18,141,650 221,649 209,366 12,283

4,351,457 4,319,352 2,213,128 1,552,195 660,933 2,106,224 32,105 31,531 574

7,329,231 7,302,286 6,380,939 5,320,612 1,060,327 921,347 26,945 25,918 1,027

2,589,471 2,563,475 2,195,646 1,787,069 408,577 367,829 25,996 25,168 828

32,410,311 32,321,718 23,783,793 18,594,639 5,189,154 8,537,925 88,593 82,355 6,238

589,986 588,760 518,955 293,023 225,932 69,805 1,226 1,226 0

2,720,757 2,718,829 2,175,018 1,425,403 749,615 543,811 1,928 1,928 0

23,283,800 23,238,944 17,644,235 12,853,479 4,790,756 5,594,709 44,856 41,240 3,616

2,674,249 2,581,078 2,344,574 1,382,772 961,802 236,504 93,171 93,171 0

15,949,662 15,794,299 14,712,648 10,088,786 4,623,862 1,081,651 155,363 155,315 48

6,333,081 6 ,208,570 5,963,127 2,886,705 3,076,422 245,443 124,511 120,952 3,559

3,536,951 3,517,601 3,028,177 2,145,273 882,904 489,424 19,350 13,022 6,328

11,168,541 11,153,583 6,543,686 5,478,728 1,064,958 4,609,897 14,958 14,744 214

113,422,100 112,214,990 98,255,729 70,329,427 27,926,302 13,959,261 1,207,110 1,189,985 17,125

66,307,647 66,005,700 49,950,215 38,851,857 11,098,358 16,055,485 301,947 298,786 3,161

22,495,211 22,366,443 15,962,109 12,994,079 2,968,030 6,404,334 128,768 127,519 1,249

3,808,035 3,807,987 3,439,779 2,730,815 708,964 368,208 48 48 0

1,345,977 1,343,990 1,174,986 797,872 377,114 169,004 1,987 1,987 0

7,328,361 7,306,995 5,283,131 4,306,451 976,680 2,023,864 21,366 21,140 226

3,722,792 3,716,802 2,883,803 2,174,929 708,874 832,999 5,990 5,837 153

10,608,505 10,534,538 7,722,134 5,914,927 1,807,207 2,812,404 73,967 73,169 798

16,998,766 16,928,945 13,484,273 9,932,784 3,551,489 3,444,672 69,821 69,086 735

7,742,269 7,660,319 7,030,985 5,039,474 1,991,511 629,334 81,950 76,212 5,738

465,063,924 461,360,747 367,471,807 272,712,032 94,759,775 93,888,940 3,703,177 3,434,049 269,128

9,196,645 9,143,432 7,363,342 5,709,767 1,653,575 1,780,090 53,213 35,549 17,664

417,761 406,832 288,911 211,590 77,321 117,921 10,929 5,515 5,414

761,651 740,897 732,715 583,430 149,285 8,182 20,754 3,729 17,025

3,860,194 3,753,246 3,561,963 2,054,612 1,507,351 191,283 106,948 106,948 0

8,206,536 7,897,552 7,070,823 5,229,609 1,841,214 826,729 308,984 274,970 34,014

581,536,361 576,350,801 468,079,443 342,619,142 125,460,301 108,271,358 5,185,560 4,788,489 397,071

397,263,608 395,246,811 311,879,233 232,709,438 79,169,795 83,367,578 2,016,797 1,868,678 148,119

182,882,185 181,897,284 146,905,537 107,672,239 39,233,298 34,991,747 984,901 862,526 122,375

205,794,490 204,962,756 157,654,910 120,849,780 36,805,130 47,307,846 831,734 806,000 25,734

99,123,483 98,815,863 76,585,410 59,260,813 17,324,597 22,230,453 307,620 290,253 17,367

810,035 802,924 580,308 432,871 147,437 222,616 7,111 7,093 18

105,860,972 105,343,969 80,489,192 61,156,096 19,333,096 24,854,777 517,003 508,654 8,349

8,586,933 8,386,771 7,318,786 4,187,419 3,131,367 1,067,985 200,162 200,152 10

ASSETS AND LIABILITIES OF BANKS 197

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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),

DECEMBER 31, 1970— CONTINUED 

BAN KS GROUPED BY INSURANCE STATUS AND CLASS OF BANK 

(Amounts in thousands of dollars)

Insured banks Noninsured banks

Asset, lia b ility, or capital account item Total

Total

Members of 

Federal Reserve System

Not 

members 

of F.R. 

System

Total

Banks

of

deposit 1

Nondeposit 

trust 

State companies 3Total National

G overn m ent deposits— t o t a l............................................................................. 49,745,675 49,455,597 38,659,130 30,204,661 8,454,469 10,796,467 290,078 286,645 3,433

United States Government— dem and........................................................ 7,968,600 7,9 14 ,9 62 6 ,4 6 5 ,2 5 3 4 ,7 4 4 ,9 7 7 1 ,72 0 ,2 76 1,4 4 9 ,709 5 3,638 50,207 3,431

United States Government— tim e .............................................................. 465,851 465,476 406,837 321,559 85,278 58,639 375 373 2

States and subdivisions— dem and............................................................. 17,9 33,2 8 7 1 7,78 4 ,76 8 13,282,059 10,291,206 2 ,990,853 4,502 ,70 9 148,519 148,519 0

States and subdivisions— tim e ................................................................... 2 3 ,3 7 7 ,9 3 7 23,290,391 18,504,981 14,846,919 3,658,062 4 ,78 5 ,4 10 87,546 87,546 0

Dom estic interbank deposits— t o t a l............................................................. 29,227,829 28,968,652 27,856,291 17,736,266 10,120,025 1,112,361 259,177 258,422 755

Commercial banks in the United States— d em an d................................ 2 6 ,3 79 ,3 5 0 26,290,939 25,34 9,8 26 16 ,39 2,19 9 8 ,9 5 7 ,6 2 7 9 4 1,113 88,411 87,681 730

Com mercial banks in the United States— tim e...................................... 1,4 32,8 4 9 1,424,049 1 ,3 0 5 ,3 7 6 802,878 502,498 118,6 73 8,800 8,800

127,19 3

0

Mutual savings banks in the United States— d e m a n d......................... 1,1 0 2 ,6 3 1 9 75,413 927,389 406,388 521,001 48,024 127,218 25

Mutual savings banks in the United States— tim e................................ 312,999 278,251 273,70 0 134,801 138,899 4 ,551 34 ,74 8 34 ,74 8 0

Foreign g overnm ent and bank deposits— t o t a l...................................... 9,282,378 8,842,795 8,553,411 4,785,292 3,768,119 289,384 439,583 438,154 1,429

Foreign governm ents, central banks, etc.— d em an d............................. 999,237 919,683 892,683 514,602 378,081 27,000 79 ,554 79 ,26 3 291

Foreign governm ents, central banks, etc.— tim e .................................... 4 ,76 1,8 8 5 4 ,6 27,306 4 ,5 4 0 ,5 5 7 2 ,8 71,4 6 0 1,6 6 9,0 9 7 86,749 134,579 133,5 79 1,000

Banks in foreign co u n trie s— d e m a n d ....................................................... 3,16 8,2 09 3,000,626 2,8 82 ,934 1 ,2 7 0 ,7 1 5 1,6 12 ,2 19 117,692 16 7,583 167,445 138

Banks in foreign countries— tim e .............................................................. 353,047 295,180 2 37,2 37 128,515 108,722 57,943 57,867 57,867 0

Total dep o sits............................................................................................. 485,519,490 482,513,855 386,948,065 285,435,657 101,512,408 95,565,790 3,005,635 2,851,899 153,736

Demand............................................................................................. 249,020,432 247,170,446 204,024,467 145,479,745 58,544,722 43,145,979 1,849,986 1,722,986

1,128,913

127,000

T im e.................................................................................................. 236,499,058 235,343,409 182,923,598 139,955,912 42,967,686 52,419,811 1,155,649 26,736

M iscellaneous lia b ilitie s — to ta l...................................................................... 46,531,967 44,968,169 41,704,338 28,471,821 13,232,517 3,263,831 1,563,798 1,510,224 53,574

Federal funds purchased (borrowed) and securities sold under 

agreements to repurch ase........................................................................ 16 ,70 7,856 16,609,041 16,198,007 11,829,689 4 ,3 6 8 ,3 1 8 411,034 98,815 98,815 0

Other liab ilities for borrowed m oney........................................................ 2 ,745,864 2 ,572 ,52 8 2 ,390,458 1,2 8 0 ,36 5 1,1 10 ,0 9 3 182,070 173,336 161,393 11,943

Mortgage indebtedness................................................................................. 670,904 668,545 507,468 386,110 121,358 16 1,0 77 2,359 2,359 0

Acceptances outstanding.............................................................................. 3 ,9 7 1 ,7 5 6 3,848,666 3,656,996 2 ,0 96 ,325 1,56 0,6 71 191,670 123,090 123,090 0

Other lia b ilit ie s ............................................................................................... 22,435,587 21,269,389 18,951,409 1 2 ,8 79 ,3 3 2 6 ,0 7 2 ,0 7 7 2 ,3 17,9 8 0 1,1 66 ,19 8 1 ,1 2 4 ,56 7 41,631

Total lia b ilitie s ........................................................................................... 532,051,457 527,482,024 428,652,403 313,907,478 114,744,925 98,829,621 4,569,433 4,362,123 207,310

M in o rity in te rest in consolidated s u b s id iaries...................................... 3,824 3,219 858 831 27 2,361 605 0 605

198 FEDERAL DEPOSIT INSURANCE CORPORATION

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Federal Reserve Bank of St. Louis
R eserves on loans and sec u ritie s — t o t a l..................................................

Reserve for bad debt losses on loans...........................................................

Other reserves on loans.....................................................................................

Reserves on securities........................................................................................

6,315,760

6,009,872

118,348

187,540

6,299,150

5,998,689

115,601

184,860

5,318,893

5,121,978

63,882

133,033

3,835,776

3,704,652

41,777

89,347

1,483,117

1,417,326

22,105

43,686

980,257

876,711

51,719

51,827

16,610

11,183

2,747

2,680

15,610

10,515

2,747

2,348

1,000

668

0

332

C apital accoun ts— t o t a l...................................................................................... 43,165,320 42,566,408 34,107,289 24,875,057 9,232,232 8,459,119 598,912 410,756 188,156

Capital notes and debentures.......................................................................... 2,184,868 2,091,879 1,821,909 1,161,120 660,789 269,970 92,989 92,989 0

Equity capital— to ta l.......................................... ................................................ 40,980,452 40,474,529 32,285,380 23,713,937 8,571,443 8,189,149 505,923 317,767 188,156

Preferred stock......................................................................................... 111,8U 107,304 95,843 62,680 33,163 11,461 4,540 4,540 0

Common stock........................................................................................... 11,266,696 11,137,824 8,765,499 6,456,797 2,308,702 2,372,325 128,872 78,208 50,664

Surplus..................................................................................................... 18,228,960 18,072,590 14,637,523 10,659,140 3,978,383

2,107,657

3,435,067 156,370 124,747 31,623

Undivided profits..................................................................................... 10,309,567 10,145,848 7,971,481 5,863,824

671,496

2,174,367 163,719 77,786 85,933

Reserve for contingencies and other capital reserves............................ 1,063,385 1,010,963 815,034 143,538 195,929 52,422 32,486 19,936

PERCENTAGES

if to tal assets:

Cash and balances with other banks................................................................ 16.2% 16.1% 17.4% 16.4% 20.3% 10.6% 18.9% 19.4% 13.6%

U.S. Treasury securities and securities of other U.S. Government

agencies and corporations................................................................................ 12.4 12.4 10.8 11.2 9.8 19.2 11.2 11.1 12.0

Other securities.......................... .......................................................................... 13.1 13.2 13.1 13.4 12.4 13.3 11.6 9.1 42.1

Loans and discounts (including Federal funds sold and securities

purchased under agreements to re s e ll)....................................................... 54.5 54.5 54.6 55.0 53.4 54.2 48.6 51.5 13.7

Other assets................................................................................................................ 3.9 3 .8 4.1 4 .0 4.2 2.7 9.7 8.9 18.7

Total capital accounts 4.......................................................................................... 7.4 7.4 7.3 7.3 7.4 7.8 18.2 2 13.9 2 47.4

If to tal assets oth er than cash and U.S. T re a s u ry secu rities:

Total capital accounts 4 .......................................................................................... 10.1 10.0 9 .9 9 .8 10.3 10.5 24.0 2 18.52 61.0

lumber of banks.......................................................................................................... 13,705 13,511 5,768 4,621 1,147 7,743 194 147 47

1 Includes asset and liability figures for 15 branches of foreign banks (tabulated as banks) licensed to do a deposit business in New York. Capital is not allocated to these branches by the parent banks.

2 See table 105, note 3.

3 Amounts shown as deposits are special accounts and uninvested trust funds, with the latter classified as demand deposits of individuals, partnerships, and corporations.

4 See table 105, note 5.

Note: Further information on the reports of assets and liabilities of banks may be found on page 191.

ASSETS AND LIABILITIES OF BANKS 199

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Federal Reserve Bank of St. Louis
Table 107. ASSETS AND LIABILITIES OF ALL MUTUAL SAVINGS BANKS IN THE UNITED STATES (STATES AND OTHER AREAS),

JUNE 30, 1970, AND DECEMBER 31, 1970

BANKS GROUPED BY INSURANCE STATUS

(Amounts in thousands of dollars)

Asset, liability, or surplus account item

June 30,1970 December 31,1970

Total Insured Noninsured Total Insured Noninsured

76,372,866 66,116,253 10,256,613 79,014,649 68,541,276 10,473,373

907,623 785,441 122,182 1,244,438 1,115,656 128,782

176,688 145,431 31,257 206,277 173,646 32,631

516,031 443,832 72,199 610,214 538,858 71,356

132,912 122,947 9,965 327,102 316,584 10,518

Cash items in process of collection.............................................................................................................. 81,992 73,231 8,761 100,845 86,568 14,277

S ecu rities— to ta l................................................................................................................................................... 15,021,043 12,346,495 2,674,548 16,119,470 13,470,992 2,648,478

O blig atio ns of th e U.S. G overn m ent, net—-total .......................................................................... 3,160,479 2,376,775 783,704 3,061,473 2,353,525 707,948

Valuation reserves . ...........................................................................

12,091 12,091 0 10,462 10,462 0

O bligations of th e U.S. G overnm ent, gross— to tal ....................................................................... 3,172,570 2,388,866 783,704 3,071,935 2,363,987 707,948

Direct:

151,070 119,251 31,819 172,202 149,078 23,124

Treasury certificates o f indebtedness .......................................................... 4,150 880 3,270 4,168 0 4,168

Treasury notes maturing in 1 year or less .................................................................. 297,058 215,839 81,219 265,801 203,496 62,305

Treasury notes maturing after 1 iiear .......................................................... 854,847 620,312 234,535 936,299 678,095 258,204

United States nonmarketable bonds ........................................................

16,118 11,588 4,530 6,223 4,465 1,758

Other bonds maturing in 1 i/ear or less .......................................................... 77,997 57,293 20,704 68,877 52,825 16,052

Other bonds maturing in 1 to 5 years .......................................................... 552,084 420,317 131,767 463,369 355,401 107,968

Other bonds maturing in 5 to 10 years ................................................................ 71,120 42,061 29,059 111,554 88,156 23,398

Other bonds maturing after 10 years ............................................................ 818,132 714,505 103,627 699,158 608,034 91,124

329,994 186,820 143,174 344,284 224,437 119,847

O bligations of States and subdivisions, net ............................................................ 195,573 188,834 6,739 194,944 187,197 7,747

Valuation reserves ................................................................... 5,562 5,562 0 5,409 5,409 0

O bligations of States and subdivisions, gross .............................................................. 201,135 194,396 6,739 200,353 192,606 7,747

O ther bonds notes and d eb entures, net— to tal ............................................................ 9,357,112 7,859,961 1,497,151 10,392,848 8,884,377 1,508,471

Valuation reserves ..................................................................... 25,762 25,689 73 25,719 25,654 65

O ther bonds notes and d ebentures, gross— to tal ................................. 9,382,874 7,885,650 1,497,224 10,418,567 8,910,031 1,508,536

Railroads ......................................................................................... 605,094 533,339 71,755 627,523 560,371 67,152

Utilities ......................................................................... 4,514,770 3,819,233 695,537 4,976,888 4,237,176 739,712

Industrials ....................................................................................................................... 1,126,071 1,047,083 78,988 1,365,424 1,265,937 99,487

408,048 Securities of Federal agencies and corporations not guaranteed by U.S.. .......................... 1,707,960 1,277,870 430,090 1,904,337 1,496,289

All other ..................................................................................... 1,428,979 1,208,125 220,854 1,544,395 1,350,258 194,137

C orp orate stocks n e t- “ to tal .......................................................

2,307,879 1,920,925 386,954 2,470,205 2,045,893 424,312

Valuation reserves ........................................................................................................... 38,552 38,455 97 38,371 38,332

424,351

235,850

188,501

Corporate stocks gross— to tal ................................................................................ 2,346,431 1,959,380 387,051 2,508,576 2,084,225

503,632 263,917 239,715 487,171 251,321

1,842,799 1,695,463 147,336 2,021,405 1,832,904

200 FEDERAL DEPOSIT INSURANCE CORPORATION

Digitized for FRASER 

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Federal Reserve Bank of St. Louis
L o a n s and d is c o u n ts , n e t— t o t a l............................................................

Valuation re se rve s.......................................................................................

L o a n s and d is c o u n ts , g ro s s — t o t a l ........................................................

Real estate loans— to ta l...............................................................................

Secured by farm land..............................................................................

Secured by residential properties:

Insured by F H A ................................................................................

Guaranteed by V A .............................................................................

Not insured or guaranteed by FH A or V A ....................................

Secured by other properties...................................................................

Commercial and industrial loans (including open market p a p e r)...

Loans to individuals for personal exp e n d iture s...................................

All other loans (including o v e rd ra fts)....................................................

T o ta l lo a n s and s e c u r i t ie s ............................................................

Bank p re m ise s..............................................................................................

Furniture and fix tu re s ................................................................................

Real estate owned other than bank p re m ise s......................................

M iscellaneous a ss e ts...................................................................................

T o ta l lia b ilit ie s and s u r p lu s a c c o u n t s ......................................................

D e p o sits— t o t a l..............................................................................................

Demand deposits of in divid uals, partnerships, and corporations...

Tim e deposits of individ uals, partnerships, and corporations..........

Other deposits (official checks, e t c .)......................................................

States and s u b d iv is io n s .............................................................................

United States Governm ent........................................................................

In te rb a n k .......................................................................................................

Total demand deposits..........................................................................

Total savings and time deposits...........................................................

M is c e lla n e o u s lia b il it ie s ............................................................................

T o ta l lia b ilit ie s (e x c lu d in g s u rp lu s a c c o u n t s ) .........................

S u rp lu s a c c o u n ts — t o t a l1...........................................................................

S u rp lu s ...........................................................................................................

Undivided profits.........................................................................................

Other segregations of s u rp lu s ..................................................................

P E R C E N T A G E S

Of to tal a s s e t s :

Cash and balances with other b a n k s..........................................................

U.S. Government obligations, direct and guaranteed...............................

Other se c u ritie s................................................................................................

Loans and d isco u n ts........................................................................................

Other a ss e ts......................................................................................................

Total su rp lu s a ccounts...................................................................................

Of to ta l a s s e ts o th e r th an c a s h and U.S. G o vern m en t o b lig a tio n s: 

Total surplus accounts.................................................................................

Number of b a n k s.................................................................................................

59,076,717

132,525

59,209,242

56,880,148

100,927

51,730,077

122,737

51,852,814

49,872,706

95,031

7,346,640

9,788

7,356,428

7,007,442

5,896

60,220,954

131,918

60,352,872

57,947,779

118,517

52,635,417

118,391

52,753,808

50,695,693

112,723

7,585,537

13,527

7,599,064

7,252,086

5,794

15,931,136

12,091,828

21,236,838

7,519,419

417,238

1,274,568

637,288

14,796,944

10,953,676

17,654,761

6,372,294

403,284

1,003,473

573,351

1,134,192

1,138,152

3,582,077

1,147,125

13,954

271,095

63,937

16,086,537

12,008,036

21,841,919

7,892,770

600,374

1,353,655

451,064

14,921,659

10,884,718

18,104,579

6,672,014

586,589

1,081,513

390,013

1,164,878

1,123,318

3,737,340

1,220,756

13,785

272,142

61,051

74,097,760 64,076,572 10,021,188 76,340,424 66,106,409 10,234,015

455,115

117,519

63,405

731,444

409,065

99,230

59,926

686,019

46,050

18,289

3,479

45,425

474,240

120,712

66,593

768,242

426,043

102,637

62,805

727,726

48,197

18,075

3,788

40,516

76,372,866 66,116,253 10,256,613 79,014,649 68,541,276 10,473,373

69,288,670

620,211

68,602,203

24,136

32,162

7,840

2,118

60,197,536

563,227

59,569,837

24,054

31,277

7,037

2,104

9,091,134

56,984

9,032,366

82

885

803

14

72,085,609

573,994

71,432,412

26,398

40,255

8,277

4,273

62,683,783

555,746

62,049,610

26,348

39,913

7,895

4,271

9,401,826

18,248

9,382,802

50

342

382

2

654,365

68,634,305

596,481

59,601,055

57,884

9,033,250

612,298

71,473,311

593,615

62,090,168

18,683

9,383,143

1,464,300 1,141,536 322,764 1,217,388 1,000,127 217,261

70,752,970 61,339,072 9,413,898 73,302,997 63,683,910 9,619,087

5,619,896

3,825,833

1,273,012

521,051

4,777,181

3,356,983

990,319

429,879

842,715

468,850

282,693

91,172

5,711,652

3,864,751

1,296,002

550,899

4,857,366

3,382,374

1,017,646

457,346

854,286

482,377

278,356

93,553

1 .2 %

4.1

15.5

11A

1.8

7.4

1 .2 %

3 .6

15.1

78.2

1.9

7.2

1 .2%

7 .6

18.4

71.6

1.1

8.2

1 .6%

3 .9

16.5

76.2

1.8

7.2

1.6 %

3.4

16.2

76.8

1.9

7.1

1.2%

6.8

18.5

72.4

1.1

8.2

7.8 7 .6 9 .0 7 .6 7.5 8.9

497 331 166 494 329 165

1 Includes par value of debentures aggregating $6,067 thousand of eight banks located in six States and Puerto Rico.

ASSETS AND LIABILITIES OF BANKS 201

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Federal Reserve Bank of St. Louis
Table 108. ASSETS AND LIABILITIES OF INSURED COMMERCIAL BANKS IN THE UNITED STATES (STATES AND OTHER AREAS),

DECEMBER CALL DATES, 1961, 1966-1970

(Amounts in thousands of dollars)

Asset, liability, or capital account item Dec. 30,1961 Dec. 31,1966 Dec. 30,1967 Dec. 31,1968 Dec. 31,1969 1 Dec. 31,1970

279,980,591 2 407,283,269 2 455,445,184 2 505,453,732 2 530,714,711 576,350,801

Cash, reserves, balances w ith banks, and collection item s— t o t a l............................. 56,181,467

3,692,593

68,651,850

5,457,281

77,532,592

5,953,155

83,269,951

7,216,003

89,335,129

7,346,973

93,048,095

7,084,430

16,917,834 19,068,820 20,275,051 21,230,246 21,452,826 23,325,123

Demand balances with banks in the U.S. (except American branches of foreign banks). 13,816,911

8 0 ,/13

15,136,611

257,066

16,520,060

544,658

18,089,886

334,917

19,389,950

230,150

320,921

21,088,737

1,401,661

249,421 250,872 280,249 264,433 395,356

Cash items in process of collection................................................................................................. 21,423,995 28,481,200 33,959,419 36,134,466 40,594,309 39,752,788

89,661,642 104,285,823 123,263,625 135,242,315 122,203,185 141,554,863

66,090,869 55,903,996 62,229,348 64,171,324 53,262,588 58,880,431

Securities of other U.S. Government agencies and corporations......................................... 2,112,292

20,103,538

5,959,194

40,831,664

8,901,164

49,820,973

10,081,641

58,391,738

9,239,140

57,572,607

12,481,059

67,414,393

Other securities .............................................................................................................. 1,354,943 1,590,969 2,312,140 2,597,612 2,128,850 2,778,980

T rad in g accoun t s ec u ritie s 3............................................................................................................. 3,181,756 5,664,059

F ederal funds sold 4 ....................................................................................... 2,460,941 3,924,357 6,526,458 9,712,405 15,952,321

O th er loans and discounts— to tal ............................................................ 127,413,856 2 220,331,690 2 237,518,086 2 264,671,395 2 286,751,602 298,189,504

Real estate loans— total ................................................................................... 30,330,432 54,099,590 58,678,014 65,332,745 70,325,953 73,053,364

Secured by farmland ............................................................................. 1,731,465 3,112,422 3,419,336 3,735,180 3,992,931 4,319,352

Secured by residential properties:

Secured by 1 -to 4-fam ily residential properties:

Insured by Federal Housing Administration . .............................................. 6,996,563 7,441,201 7,603,100 7,809,567 7,262,023 7,302,286

Guaranteed by Veterans Administration..................................................................... 2,613,165 2,556,527 2,613,060 2,626,560

30,712,679

2,596,261 2,563,475

Not insured or guaranteed by FH A or VA .......................................................... 12,570,273 24,659,845 27,157,632 31,210,921 32,321,718

Secured by multifamily (5 or more) properties:

T'no'urDfi Jin Wedernl TJn'iiQ'iYin A 3 562,501 588,760

Not insured by F H A ® . . . 2,647,857 2,718,829

Secured by other properties ................................................................................... 7,448,966 16,329,595 17,884,886 20,448,759 22,053,459 23,238,944

Loans to domestic commercial and foreign banks..................................................................... 1,032,864 2,132,957 1,847,683 2,145,604 2,425,147 2,581,078

Loans to other financial institutions . . ........................................................ 7,310,112 13,186,453 12,447,077 13,676,953 14,938,963 15,794,299

Loans to brokers and dealers in securities..................................................................................

Other loans for purchasing or carrying securities.....................................................................

Loans to farmers (excluding loans on real estate) ................................................................

4,030,000

2,107,360

6,224,041

5,643,112

3,149,552

8,549,399

6,017,418

3,724,055

9,260,220

6,409,302

4,068,900

9,712,410

5,646,962

3,994,818

10,323,657

6,208,570

3,517,601

11,153,583

Commercial and industrial loans (including open market pap er).......................................

Other loans to individuals— to tal.....................................................................................................

Passenger automobile installment loans . . . . . ............................................

45,156,607

27,819,669

9,062,043

80,408,482

47,992,068

18,290,164

88,257,588

51,628,083

18,890,458

98,161,381

58,414,799

21,200,443

108,393,788

63,355,683

22,706,108

112,214,990

66,005,700

22,366,443

Credit cards and related plans:

Retail (charge account) credit card plans........................................................................

Check credit and revolving credit plans...........................................................................

Other retail consumer installment loans.............................................................................

Residential repair and modernization installment loans..................................................

Other installment loans for personal expenditures............................................................

( 5)

(5)

2,807,751

2,693,068

4,480,462

( 5)

(5)

4,692,533

3,216,162

8,091,439

828,313

521,909

4,781,232

3,351,554

8,361,180

1,312,020

798,115

5,520,274

3,494,813

9,390,559

2,639,497

1,082,791

6,269,924

3,654,863

9,936,340

3,807,987

1,343,990

7,306,995

3,716,802

10,534,538

Single-payment loans for personal expenditures................................................................ 8,776,345 13,701,770 14,893,437 16,698,575 17,066,160 16,928,945

All other loans (including overdrafts)............................................................................................ 3,402,771 5,170,077 5,657,948 6,749,301 7,346,631 1 ,660,319

202 FEDERAL DEPOSIT INSURANCE CORPORATION

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Federal Reserve Bank of St. Louis
T o ta l lo a n s and s e c u r it ie s .............................................................................................

Bank prem ises, fu rn itu re and fixtures, and other assets representing bank p re m ise s..

Real estate owned other than bank p re m ise s.......................................................................

Investm ents in su b sid ia rie s not consolidated 3 ....................................................................

C ustom ers’ lia b ility on acceptances o u tstan d in g..................................................................

Other a s s e ts ...................................................................................................................................

T o ta l lia b ilit ie s , r e s e r v e s , and ca p ita l a c c o u n t s ..................................................................

B u s in e s s and p e rso n a l d e p o s its — t o t a l.................................................................................

In d iv id u a ls, partnerships, and corporations— d e m an d .......................................................

In d iv id u a ls, partnerships, and corporations— tim e ..............................................................

Savings deposits.....................................................................................................................

Deposits accumulated for payment o f personal loans........................................................

Other deposits o f individuals, partnerships, and corporations..........................................

Certified and officers' checks, letters of cred it, travelers' checks, etc.............................

G o v e rn m e n t d e p o sits— t o t a l......................................................................................................

United States Governm ent— d e m a n d ......................................................................................

United States Governm ent— tim e .............................................................................................

States and su b d ivisio n s— d e m an d ...........................................................................................

States and su b d ivisio n s— tim e .................................................................................................

D o m e stic in te rb a n k d e p o sits— t o t a l.......................................................................................

Com m ercial banks in the United States— d e m a n d ..............................................................

Com m ercial banks in the United States— tim e ....................................................................

Mutual savings banks in the United States— d e m an d ........................................................

Mutual savings banks in the United States— tim e ..............................................................

Fo re ig n g o v e rn m e n t and bank d e p o s its — t o t a l..................................................................

Foreign governm ents, central banks, etc.— dem and...........................................................

Foreign governm ents, central banks, etc.— tim e ..................................................................

Banks in foreign countries— dem and......................................................................................

Banks in foreign countries— tim e .............................................................................................

T o tal d e p o s it s .........................................................................................................................

Demand..............................................................................................................................

T im e...................................................................................................................................

M is c e lla n e o u s l ia b ilit ie s — t o t a l...............................................................................................

Federal funds purchased (borrow ed)7 ....................................................................................

Other lia b ilities for borrowed m oney......................................................................................

Mortgage indebtedness 3 ............................................................................................................

Acceptances o u tsta n d in g ..........................................................................................................

Other lia b ilit ie s .............................................................................................................................

T o ta l l ia b il it ie s .......................................................................................................................

M in o rity in te re s t in c o n so lid a te d s u b s id ia r ie s .................................................................

R e s e rv e s on lo a n s and s e c u r it ie s — t o t a l .............................................................................

Reserve for bad debt losses on lo a n s.....................................................................................

Other reserves on loans 3 ..........................................................................................................

Reserves on securities 3..............................................................................................................

217,075,498 327,078,454 364,706,068 406,440,168 421,848,948 461,360,747

3,450,217

93,778

5,619,987 6 6,007,170

282,704

6,656,856

323,257

8,070,059

360,820

651,095

9,143,432

406,832

740,897

1,651,595

1,528,036

2,178,017

3,754,961

2,314,772

4,601,878

2,472,778

6,290,722

3,308,881

7,139,779

3,753,246

7,897,552

279,980,591 407,283,269 155,445,184 505,453,732 530,714,711 576,350,801

203,088,106

123,489,686

74,561,084

63,887,537

771,554

9,901,993

5,037,336

293,565,757

144,323,672

142,261,089

90,076,746

1,223,553

50,960,790

6,980,996

329,860,033

158,491,340

162,727,918

94,451,458

1,283,923

66,992,537

8,640,775

361,993,247

172,006,973

180,506,278

96,166,256

1,215,522

83,124,500

9,479,996

365,934,821

178,185,683

176,240,900

93,796,302

1,129,305

81,315,293

11,508,238

395,246,811

181,897,284

204,962,756

98,815,863

802,924

105,343,969

8,386,771

23,881,005

5,943,251

280,030

12,215,686

5,442,038

33,768,382

4,990,164

257,599

15,059,104

13,461,515

36,990,123

5,238,918

285,533

15,577,942

15,887,730

41,385,278

5,012,445

376,629

16,881,042

19,115,162

36,092,200

5,050,538

222,560

17,559,438

13,259,664

49,455,597

7,914,962

465,476

17,784,768

23,290,391

16,680,600

15,751,918

213,214

700,355

15,113

18,355,321

16,947,228

476,896

782,525

148,672

20,660,087

18,788,406

727,014

935,212

209,455

23,221,458

21,424,784

714,271

933,799

148,604

24,858,037

23,394,428

415,216

1,017,123

31,270

28,968,652

26,290,939

1,424,049

975,413

278,251

4,255,164

656,922

2,178,055

1,297,787

122,400

7,150,699

869,268

4,212,084

1,784,407

284,940

8,285,680

874,451

5,166,228

1,909,911

335,090

8,051,716

866,885

4,752,732

2,118,758

313,341

10,104,607

940,239

6,378,964

2,475,098

310,306

8,842,795

919,683

4,627,306

3,000,626

295,180

247,904,875

165,092,941

82,811,934

352,840,159

191,737,364

161,102,795

395,795,923

210,456,955

185,338,968

434,651,699

228,724,682

205,927,017

436,989,665

240,130,785

196,858,880

482,513,855

247,170,446

235,343,409

7,346,272

462,309

18,413,009

2,824,088

1,904,513

20,910,731

4,980,322

568,797

28,958,217

7,468,200

1,214,440

47,966,725

14,684,700

3,367,342

601,562

44,968,169

16,609,041

2,572,528

668,545

1,689,406

5,194,557

2,234,455

11,449,953

2,382,072

12,979,540

2,508,707

17,766,870

3,387,309

25,925,812

3,848,666

21,269,389

255,251,147 371,253,168 416,706,654 463,609,916 484,956,390 527,482,024

3,295 3,219

2.606.474

2.606.474

4.336.933

4.336.933

4.732.606

4.732.606

5.215.817

5.215.817

6,178,797

5,885,873

108,824

6,299,150

5,998,689

115,601

184,100 184,860

ASSETS AND LIABILITIES OF BANKS 203

Digitized for FRASER 

http://fraser.stlouisfed.org/ 

Federal Reserve Bank of St. Louis
Table 108. ASSETS AND LIABILITIES OF INSURED COMMERCIAL BANKS IN THE UNITED STATES (STATES AND OTHER AREAS),

DECEMBER CALL DATES, 1961, 1966-1970— CONTINUED

(Amounts in thousands of dollars)

Asset, liab ility, or capital account item Dec. 30, 1961 Dec. 31, 1966 Dec. 30, 1967 Dec. 31, 1968 Dec. 31, 1969 1 Dec. 31, 1970

72,122,970 31,693,168 34,005,924 36,627,999 39,576,229 42,566,408

22,107 1,729,902 1,984,390 2,110,137 1,998,316 2,091,879

22,100,863 29,963,266 32,020,534 34,517,862 37,577,913 40,474,529

Preferred stock ........................................................................ 14,7^5 61,583 87,076 90,686

9,772,605

103,416 107,304

Common stock ..................................................................................................... 6,584,701 8,856,837 9,253,642 10,529,322 11,137,824

Surplus ............................................................................................. 10,798,364 13,998,697 14,983,375 16,173,907 17,460,832 18,072,590

TJt)Hmidpd Tirofit^ - - A. 156.76A

'546,289

6 .1 6 6 .A77

879,672

6.610.743

1,086,698

7.419.669 8.426.787 10.145.848

Reserve for contingencies and other capital reserves........................................................... 1,060,995 1,057,556 1,010,963

PERCENTAGES

Of to tal assets:

Cash and balances with other banks ................................................................................. 20.1%

24.3

16.9% 17.0% 16.5% 16.8% 16.1%

U.S. Treasury securities and securities of other U.S. Government agencies and corporations ............................................................................................ 15.2 15.6 14.7 11.8 12.4

Other securities ................................................................................. 7.7 10.4 11.5 12.1 11.8 13.2

Loans and discounts (including Federal funds sold and securities purchased under

agreements to resell) ................................................................................. 45.5 54 7 53.0 53.6 55.9 54.5

Other assets ................................................................................................................... 2.4 2 .8 2 .9 3.1 3.7 3 .8

Total capital accounts ................................................................................. 7.9 7.8 7 .5 7.2 7.5 7 .4

Of to tal assets o th er than cash and U.S. Treas u ry sec u rities:

Total capital accounts ................................................................... 14.0 11.2 10.8 10.2 10.2 10.0

Number of banks . . . ....................................................................................... 13,115 13,541 13,517 13,488 13,473 13,511

1 For description of changes in 1969 in the Report of Condition, see p. 191 and notes to tables. ^ *.»■ , nce , oco

2 Assets in 1968 and prior years include "Other loans and discounts" at gross (before deduction of valuation reserves) value, as reported in 1969 and 1970. Other loans and discounts in 1966-1968

exclude Federal funds sold, now reported separately.

° noi avauauie uiiui iu uguie m iu w ii, bee nuie i. ... . t *

4 Prior to December 31, 1966, “ Federal funds sold (loaned)” not reported separately; most were included with loans to banks; beginning m 1967, includes securities purchased under agreements to

resell, which previously were reported with “ Loans to domestic commercial and foreign banks” and “Other loans for purchasing or carrying securities.”

6 Before 1967, loans extended under credit cards and related plans were distributed among other installment loan items.

e Net of mortgages and other liens; previously included with “ Other liabilities.” Includes real estate owned other than bank premises.

7 Prior to December 31, 1966, Federal funds purchased were included in “ Other liabilities for borrowed money” ; beginning in 1967, includes securities sold under agreements to repurchase, which

previously were reported with “Other liabilities for borrowed money.”

204 FEDERAL DEPOSIT INSURANCE CORPORATION

Digitized for FRASER 

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Federal Reserve Bank of St. Louis
Table 109. ASSETS AND LIABILITIES OF INSURED MUTUAL SAVINGS BANKS IN THE UNITED STATES (STATES AND OTHER AREAS),

DECEMBER CALL DATES, 1961, 1966-1970

(Amounts in thousands of dollars)

Asset, liability, or surplus account item Dec. 30, 1961 Dec. 31,1966 Dec. 30,1967 Dec. 31, 1968 Dec. 31,1969 Dec. 31,1970

T o ta l a s s e ts ........................................................................................................................... 37,064,623 53,049,468 57,867,208 62,123,491 64,633,716 68,541,276

Cash, balances w ith banks, and co llection item s— to ta l..................................... 828,199 847,825 881,596 883,058 780,079 1,115,656

Currency and co in .................................................................................................................... 126,598 145,587 153,639 164,965 179,378 173,656

Demand balances with banks in the United States.................................................... 490,382 474,276 461,378 497,725 499,506 538,858

Other balances with banks in the United S tates....................................................... 167,637 166,743 202,325 157,610 42,964 316,584

Cash items in process of collection................................................................................... 43,582 61,219 64,254 62,758 58,231 86,568

S ecu rities— t o t a l........................................................................................... 9,847,742 8,675,750 10,447,028 11,802,948 11,843,577 13,470,992

O bligations o f th e U.S. G overn m ent, n e t— t o ta l............................................ 4,689,898 3,323,662 3,110,649 2,854,896 2,445,609 2,353,525

Valuation reserves...................................................................................... 23,841 13,504 13,610 12,559 13,004 10,462

O blig atio ns of th e U.S. G overn m ent, gross— to ta l................................................ 4,713,739 3,337,166 3,124,259 2,867,455 2,458,613 2,363,987

Treasury bills................................................................................................... 137,757 289,812 365,155 284,785 122,070 149,078

Treasury certificates o f indebtedness........................................................................ 43,881 16,900 50 1,800 2,043 0

Treasury notes maturing in 1 year or less............................................................. 233,269 98,058 109,244 146,108 158,515 203,496

Treasury notes maturing after 1 year........................................................... 660,190 219,584 487,248 696,291 654,983 678,095

United States nonmarketable bonds............................................... 165,631 61,857 36,129 25,560 13,997 4A 65

Other bonds maturing in 1 year or less....................................................... 64,902 34,647 70,330 116,940 91,152 52,825

Other bonds maturing in 1 to 5 years............................................ 393,825 797,174 604,801 453,476 437,306 355,401

Other bonds maturing in 5 to 10 years.......................... 1,328,363 684,249 386,957 152,659 11,718 88,156

Other bonds maturing after 10 years.......................................................... 1,617,533 1,003,468 902,375 808,814 762,119 608,034 Guaranteed obligations...................................................... 68,388 131,417 161,970 181,022 204,710 224,437

O blig atio ns of States and subdivisions, n e t..................... 628,978 236,697 205,323 185,211 185,388 187,197 Valuation reserves................................................................... 10,236 6,168 6,126 5,733 5,561 5,409 O b lig atio n s of S tates and subdivisions, g ro s s .............................. 639,214 242,865 211,449 190,944 190,949 192,606

O th e r bonds, notes, and d ebentures, n e t— to ta l....................... 3 ,850,055 3,941,772 5,752,972 7 ,150,316 7,396,659 8,844,377 Valuation reserves..................................................................... 23,363 22,642 24,055 22,634 26,765 25,654

O th e r bonds, n otes, and d eb en tu res, gross— to ta l................. 3,873,418 3,964,414 5,777,027 7,172,950 7,423,424 8,910,031 Railroads................................................................................................ 516,916 368,290 480,595 500,629 512,297 560,371 U tilities........................................................................................ 1,824,076 1,654,151 2,714,948 3,436,139 3,624,115 4,237,176 Industrials................................................... 477,080 429,976 760,267 950,371 953,590 1,265,937

Securities of Federal agencies and corporations not guaranteed by U.S. . 505,463 1,009,066 1,049,964 1,235,256 1,149,455 1,496,289 All o th e r.......................................................................................................... 549,883 502,931 771,253 1,050,555 1,183,967 1,350,258

C orporate stocks, n et— t o t a l............................... 678,811 1,173,619 1,378,084 1,612,525 1,815,921 2,045,893 Valuation reserves................................... 66,668 42,067 38,615 35,084 37,918 38,332

C orporate stocks, gross— t o t a l.......................... 745,479 1,215,686 1 ,416,699 1,647,609 1,853,839 2,084,225 B an k................................................................................................................. 171,616 225,177 232,232 246,455 251,903 251,321 O th er...................................................................................... 573,863 990,509 1,184,467 1,401,154 1,601,936 1,832,904

Loans and discounts, n e t— t o t a l......................................... 25,812,078 42,593,177 4 5,492,445 4 8,287,403 50,828,568 52,635,417

Valuation reserves................................................... 219,703 140,483 126,789 121,876 120,928 118,391

Loans and discounts, gross— t o t a l............................................... 26,031,781 42,733,660 45,619,234 48,409,279 50,949,496 52,753,808

Real estate loans— to ta l......................................... 25,639,686 41,808,403 44,595,807 47,177,405 49,329,087 50,695,693

Secured by farm land................................................................................................. 45,346 47,719 110,695 111,935 106,943 112,723

ASSETS AND LIABILITIES OF BANKS 205

Digitized for FRASER 

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Federal Reserve Bank of St. Louis
Table 109. ASSETS AND LIABILITIES OF INSURED MUTUAL SAVINGS BANKS IN THE UNITED STATES (STATES AND OTHER AREAS)

DECEMBER CALL DATES, 1961, 1966-1970— CONTINUED

(Amounts in thousands of dollars)

Asset, liability, or surplus account item Dec. 30, 1961 Dec. 31, 1966 Dec. 30, 1967 Dec. 31, 1968 Dec. 31,1969 Dec. 31, 1970

Secured by residential properties:

Insured by F H A .................................................................................................... 7,565,963 13,563,472 14,057,536 14,500,512 14,742,577 14,921,659

Guaranteed by V A .................................................................................................. 8,378,382 10,473,930 10,756,786 10,940,229 11,030,456 10,884,718

Not insured or guaranteed by FH A or V A ........................................................ 7,288,2^8 13,490,913 14,824,561 16,029,770 17,193,309 18,104,579

Secured by other properties....................................................................................... 2,361,747 4,232,369 4,846,223 5,594,959 6,255,802 6,672,014

Commercial and industrial loans (including open m arket p a p e r).......................... 112,337 191,599 158,428 237,600 206,348 586,589

Loans to individuals for personal expenditures............................................................ 235,492 617,747 734,973 869,601 987,198 1,081,513

All other loans (including overdrafts)............................................................................... 44,266 115,911 130,026 124,673 426,863 390,013

T o tal loans and s e c u ritie s ................................................................................................. 35,659,820 51,268,927 55,939,473 60,090,351 62,6 72,145 66,106,409

Bank prem ises............................................................................................................................... 223,326 329,951 355,946 382,353 400,375 426,043

Furniture and fixtures.................................................................................................................. 23,489 57,444 72,833 88,068 96,684 102,637

Real estate owned other than bank prem ises.................................................................... 20,211 27,798 30,617 36,449 47,607 62,805

Miscellaneous assets................................................................................................................... 309,578 517,523 586,743 643,212 636,826 727,726

T otal lia b ilitie s and surplus a cc o u n ts ................................................................................ 37,064,623 53,049,468 57,857,208 62,123,491 64,633,716 68,541,276

Deposits— t o t a l................................................................................................................... 33,399,591 48,255,636 52,912,962 56,861,324 58,867,848 62,683,783

Demand deposits of individuals, partnerships, and corporations.......................... 246,989 366,110 412,089 463,777 503,982 555,746

Time deposits of individuals, partnerships, and corporations................................ 33,121,088 47,834,854 52,443,585 56,339,968 58,303,307 62,049,610

Other deposits (official checks, e tc .).................................................................. 6,796 11,513 14,327 18,571 18,378 26,348

States and subdivisions.......................................................................................................... 17,780 35,384 35,548 30,499 32,660 39,913

United States Government..................................................................................................... 6,140 6,445 6,151 6,231 7,213 7,895

In terbank..................................................................................................................................... 798 1,330 1,262 2,278 2,308 4,271

Total demand deposits............................................................................................... 261,901 387,162 435,035 489,980 533,836 593,615

Total savings and time deposits................................................................................ 33,137,690 47,868,474 52,477,927 56,371,344 58,334,012 62,090,168

M iscellan eo u s lia b ilitie s ........................................................................................................ 474,350 653,735 716,615 781,183 1,068,152 1,000,127

T o tal lia b ilitie s (exclu d in g surplus a c c o u n ts ).................................................. 33,873,941 48,909,371 53,629,577 57,642,507 59,936,000 63,383,910

Surplus accoun ts— t o t a l......................................................................................................... 3,190,682 4,140,097 4,237,631 4,480,984 4,697,716 4,857,366

Surplus......................................................................................................................................... 2,269,864 2,923,692 3,072,343 3,245,950 3,317,372 3,382,374

Undivided profits...................................................................................................................... 624,503 821,662 774,284 842,645 970,376 1,017,646

Other segregations of surplus.............................................................................................. 296,315 394,743 391,004 392,389 409,968 457,346

PERCENTAGES

Of to tal assets:

Cash and balances with other banks..................................................................................... 2 .2 % 1.6% . 1 .5 % 1 .4 % 1 .2 % 1 .6 %

U.S. Government obligations, direct and guaranteed...................................................... 12.7 6.3 5.4 4 .6 3 .8 3 .4

Other securities.............................................................................................................................. 13.9 10.1 12.7 14.4 14.5 16.2

Loans and discounts.................................................................................................................... 69.6 80.3 78.6 11.1 78.6 76.8

Other assets.................................................................................................................................... 1.6 1.7 1.8 1.9 1.8 1.9

Total surplus accounts................................................................................................................ 8.6 7 .8 7 .3 7.2 7.3 7.1

Of to tal assets o th e r than cash and U.S. G overn m ent obligations:

Total surplus accounts................................................................................................................ 10.1 8.5 7.9 7.7 7.7 7 .5

Number of banks.............................................................................................................................. 330 332 333 334 331 329

206 FEDERAL DEPOSIT INSURANCE CORPORATION

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Federal Reserve Bank of St. Louis
Table 110. PERCENTAGES OF ASSETS AND LIABILITIES OF INSURED COMMERCIAL BANKS OPERATING THROUGHOUT 1970 IN

THE UNITED STATES (STATES AND OTHER AREAS), DECEMBER 31, 1970 

BANKS GROUPED BY AMOUNT OF DEPOSITS

Banks with deposits of—

Asset, liability, or capital account item

All

banks

Less

than

$1 million

$1 million

to

$2 million

$2 million

to

$5 million

$5 million

to

$10 million

$10 million

to

$25 million

$25 million

to

$50 million

$50 million

to

$100 million

$100 million

to

$500 million

$500 million

to

$1 billion

$1 billion

or

more

T o tal a ss 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 banks.................................................... 16.2 17.8 13.5 12.0 12.0 11.8 12.1 12.9 16.0 16.5 19.6

U.S. Treasury securities 1.................................................... 10.2 28.8 26.3 21.9 17.9 15.6 12.7 12.2 9 .8 8.9 6 .8

Obligations of States and political subdivisions 1 . . . . 11.7 3.1 3 .5 7.6 11.4 13.5 14.2 14.1 13.4 12.0 9 .8

Other securities 1..................................................................... 2.7 6.5 7.7 6 .8 5.4 4 .5 4.2 3 .5 2.5 1.7 1.3

Federal funds sold (loaned)2............................................... 2 .8 4.6 3 .2 3.1 3 .5 3.5 3 .4 3.2 3.1 3.3 2.0

Other loans and discounts— to ta l...................................... 51.8 37.3 44.6 47.0 47.9 48.9 50.5 50.9 51.8 53.0 53.4

Real estate............................................................................. 12.7 6.4 9 .9 13.6 15.0 16.1 16.5 16.8 14.5 12.9 8.9

To banks and other financial institutions.................. 3.1 1.3 .6 .6 .6 .7 1.0 1.4 2 .4 4 .3 5.3

To purchase or carry securities..................................... 1.7 .3 .2 .3 .4 .5 .6 .8 1.4 1.0 3.0

To farm ers............................................................................. 1.9 13.1 17.1 13.7 9.2 4.7 2 .0 1.2 .8 .6 .5

Commercial and industrial.............................................. 19.5 5.3 5 .9 7.0 8.6 10.7 13.5 14.8 17.1 20.2 27.0

Installm ent loans for personal expenditures........... 8.5 7.1 7 .7 8 .5 10.2 11.9 12.6 11.6 13.7 8.9 4.9

Single-payment loans for personal expenditures... 2.9 2.7 2 .6 2.9 3.2 3.6 3.7 3.6 3 .6 3 .4 2.0

All other loans (including overdrafts)......................... 1.3 1.3 .6 .5 .6 .7 .6 .7 1.4 1.6 1.8

Other assets 1............................................................................ 4.7 1.9 1.2 1.5 1.9 2.3 2.9 3.1 3 .4 4 .5 7.1

T otal lia b ilitie s , reserves, and cap ital a c c o u n ts ... 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0

Deposits— to tal......................................................................... 83.7 74.9 87.5 88.8 89.4 89.2 88.4 87.7 86.0 82.9 78.6

Demand....................................................................... 43.0 50.9 48.3 41.8 40.8 39.6 39.6 40.2 43.4 45.6 44.5

T im e............................................................................ 40.7 24.0 39.2 47.0 48.5 49.7 48.8 47.5 42.6 37.3 34.1

Individuals, partnerships, and corporations—

dem and............................................................................... 31.8 44.2 41.3 34.7 33.3 32.1 32.5 32.0 32.3 33.6 30.3

Individuals, partnerships, and corporations— tim e. 35.5 20.7 35.6 43.4 44.9 45.8 44.7 42.6 37.6 32.5 27.7

U.S. Government.................................................................. 1.5 .3 .8 1.2 1.5 1.8 1.3 1.1 1.4 1.8 1.4

States and subdivisions.................................................... 7.1 8.9 9.1 8.7 8.7 8.2 7.7 8.5 8.2 8.2 5.4

Domestic in terb an k........................................................... 5.4 .3 .3 .3 .3 .5 1.1 2.3 5.3 5.6 9.1

Foreign government and b an k....................................... 1.0 .0 .0 .0 .0 .0 .0 .1 .1 .2 2.4

Other deposits...................................................................... 1.5 .4 .4 .6 .8 .9 1.0 1.1 1.0 1.0 2.2

Federal funds purchased (borrowed)3............................. 2.9 .1 .0 .1 .1 .1 .3 .7 2.1 4.5 5.1

Other liabilities for borrowed money............................. .4 .0 .1 .1 .1 .1 .1 .2 .4 .7 .7

Other liab ilities4...................................................................... 4 .5 2.3 .9 1.1 1.5 2.1 2 .8 3.0 3.1 3.5 7.2

Reserves on loans and securities...................................... 1.0 .3 .5 .6 .9 .8 1.0 .9 1.0 1.0 1.3

Capital notes and debentures............................................. .4 .0 .0 .0 .1 .1 .2 .3 .3 .5 .5

Other capital accounts........................................................... 7.0 22.4 10.9 9.2 8.1 7.5 7.2 7.1 7 .0 6 .8 6.7

Number of banks......................................................................... 13,342 159 861 3,208 3,436 3,382 1,209 536 426 69 56

1 Securities held in trading accounts are included in "Other assets.”

2 Includes securities purchased under agreements to resell.

3 Includes securities sold under agreements to repurchase.

4 Includes minority interest in consolidated subsidiaries.

Note: For income and expense data by size of bank, see tables 116 and 117. Assets and liabilities (in $000) of all commercial banks by size of bank are contained in Assets and Liabilities— 

Commercial and Mutual Savings Banks (with 1970 report of income), December 31, 1970.

ASSETS AND LIABILITIES OF BANKS 207

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Federal Reserve Bank of St. Louis
Table 111. PERCENTAGES OF ASSETS AND LIABILITIES OF INSURED MUTUAL SAVINGS BANKS OPERATING THROUGHOUT 1970 IN

THE UNITED STATES (STATES AND OTHER AREAS), DECEMBER 31, 1970 

BA NK S GROUPED BY AM O U NT OF DEPO SITS

Banks with deposits of—

Asset, liability, or surplus account item All

banks 1

Less

than

$5 million

$5 million

to

$10 million

$10 million

to

$25 million

$25 million

to

$50 million

$50 million

to

$100 million

$100 million

to

$500 million

$500 million

to

$1 billion

$1 billion

or

more

T o tal a s s e ts .................................................................................................................... 100.0% 100.0% 1 00.0% 100.0% 100.0% 1 00.0% 100.0% 100.0% 100.0%

Cash and due from banks....................................... .............................. 1.6 3.1 3 .8 2 .5 2.1 2 .0 1.6 1.6 1.4

Obligations of the U.S. Government, n e t........................................................... 3.4 5.9 11.6 6 .5 4 .9 4.1 3 .6 3.3 2.7

Valuation reserves................................................................................................ (2) .0 (2) (2) (2) (2) (2) (2) (2)

Other securities, n e t................................................................................................. 16.2 9.3 17.4 18.6 15.2 18.2 16.6 15.2 16.4

Valuation reserves................................................................................................ .1 .1 .3 .1 .1 .1 .1 .1 .1

Loans and discounts, n e t........................................................................................ 76.8 80.8 65.9 71.0 76.5 74.1 76.2 77.8 77.5

Valuation reserves................................................................................................ .2 .2 .3 .1 .2 .2 .1 .2 .2

Real estate loans— to tal...................................................................................... 74.0 71.9 60.4 66.3 71.5 70.5 72.8 75.7 75.3

Secured by farm land................................................................................

Secured by residential properties:

.2 1.5 .6 4 4 .1 .0 4 .0

Insured by F H A ........................................................................................... 21.8 11.2 6 .0 7 .7 9 .7 1 4 4 20.4 24,2 25.6

Guaranteed by V A ............................................................................... 15.9 4 4 6 .2 6 .0 8 .2 10.3 15.5 15.5 2 04

Not insured or guaranteed by F H A or V A ...................................... 2 6 4 48.8 39.3 4 5 4 45.8 3 8.6 28.5 24.3 18.3

Secured by other properties..................................................................... 9.7 6.1 8 .3 6 .9 74 7.1 8 .3 11.2 11.0

Commercial and industrial loans (including open market p ap er). . . . .9 .3 .3 .3 .6 .3 .9 .7 1.2

Loans to individuals for personal expenditures........................................ 1.6 6.6 4 .0 3 .3 3 .2 2 .5 1.9 1.2 1.0

All other loans (including overdrafts)........................................................... .6 2.1 1.5 1.2 1.4 1.0 .8 .4 .1

Other assets................................................................................................................. 1.9 .9 1.3 1.4 1.3 1.6 1.9 2.1 2.0

Total liabilities and surplus accounts................................... 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0

Deposits— to ta l........................................................................................................... 91.5 90.4 91.1 91.0 91.4 91.4 91.8 91.4 91.2

Demand deposits of individuals, partnerships, and corporations___ .8 .5 .1 .5 .8 .9 1.0 .7 .8

Tim e deposits of individuals, partnerships, and corporations............. 90.5 84.9 90.1 9 0.0 89.9 90.3 90.7 90.6 90.4

Other deposits........................................................................................................ .1 5.0 1.0 .5 .7 .2 .2 .0 .0

Miscellaneous liab ilities.......................................................................................... 1.5 2.0 .4 .7 .8 .8 1.1 1.5 2.1

Surplus accounts— to ta l.......................................................................................... 7.1 7.7 8 .5 8.3 7 .8 7 .8 7 .1 7.1 6.7

S urplus...................................................................................................................... 4 .9 3.9 4 .6 4 .6 4 .5 4 .4 4 .8 5 .1 5.1

Undivided profits................................................................................................... 1.5 2.2 2 .8 2 .8 2 .3 2 .6 1.6 1 .4 .9

Other segregations of surplus.......................................................................... .7 1.5 1.0 .9 .9 .7 .7 .6 .7

Number of banks........................................................................................................... 327 6 13 63 70 60 79 27 9

1 Dollar amounts of assets and liabilities of all mutual savings banks are shown in Assets and Liabilities— Commercial and M utual Savings Banks (with 1970 report of incom e); see table 110 notes.

2 Less than 0.05 percent.

208 FEDERAL DEPOSIT INSURANCE CORPORATION

Digitized for FRASER 

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Federal Reserve Bank of St. Louis
Table 112. DISTRIBUTION OF INSURED COMMERCIAL BANKS IN THE UNITED STATES (STATES AND OTHER AREAS),

DECEMBER 31, 1970

B A N K S G R O U P ED A CCO RD IN G TO AM O UNT OF DEPO SITS AND BY RATIOS OF SELECTED ITEM S TO A SSET S OR DEPO SITS

Ratios All

Number of banks with deposits of—

(In percent) banks Less

than

$1 million

$1 million

to

$2 million

$2 million

to

$5 million

$5 million

to

$10 million

$10 million

to

$25 million

$25 million

to

$50 million

$50 million

to

$100 million

$100 million

to

$500 million

$500 million

to

$1 billion

$1 billion

or

more

R atios of oblig atio n s of S tates and subdivisions to

to tal assets o f—

Zero ......................................................................................................

More than 0.0 but less than 1 .0 ................................................

1.0 to 2.4 9 ..........................................................................................

2.5 to 4 .9 9 ..........................................................................................

921

643

736

1,111

110

21

24

16

265

168

125

135

366

317

373

479

127

87

130

289

43

40

67

127

9

7

9

36

0

3

4

13

1

0

4

14

0

0

0

2

0

0

0

o

5.0 to 7 .4 9 .......................................................................................... 1,432 9 93 446 413 303 72 37 37 11 11 7.5 to 9 .9 9 .......................................................................................... 1,712 4 47 369 547 434 160 65 61 15 10 10.0 to 12.49..................................................................................... 1,751 2 24 308 493 551 184 95 65 13 16 12.5 to 14.99..................................................................................... 1,629 2 9 220 441 554 211 91 75 16 10 15.0 to 17.49...................................................................................... 1,354 1 15 157 353 462 198 96 66 4 2

17.5 to 19.99..................................................................................... 863 2 14 95 220 290 131 56 48 3 4 20.0 to 24.99..................................................................................... 982 0 10 96 243/ 380 150 57 40 3 3 25.0 or more..................................................................................... 377 1 3 51 106 137 43 19 15' 2 0

Ratios of U.S. T re a s u ry s ec u ritie s to to ta l assets

of—

Less than 5 ........................................................................................ 910 17 46 175 211 249 104 41 44 6 17 5 to 9 .9 9 ............................................................................................. 2,439 19 69 361 538 655 345 179 202 40 31 10 to 14.99......................................................................................... 2,950 19 121 476 753 873 374 180 126 20 8

15 to 19.99......................................................................................... 2,372 18 97 521 689 706 230 75 36 0 o 20 to 24.99 ......................................................................................... 1,769 23 155 517 497 432 95 38 10 2 o

25 to 29.99......................................................................................... 1,214 22 98 428 349 253 43 16 4 1

o

o

30 to 34.99 ......................................................................................... 723 17 96 300 181 111 11 4 3 o

35 to 39.99......................................................................................... 478 20 75 215 102 61 4 1 o o o 40 to 4 4.99......................................................................................... 272 11 55 116 62 26 2 0 o o o 45 to 49.99 ......................................................................................... 162 15 37 66 34 7 1 1 1

0

o o

50 or m ore......................................................................................... 222 11 59 102 33 15 1 1 0 0

ASSETS AND LIABILITIES OF BANKS 209

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Federal Reserve Bank of St. Louis
Table 112. D ISTRIBU TIO N OF IN SURED COMMERCIAL BANKS IN THE UNITED STATES (STATES AND OTHER AREAS),

DECEMBER 31, 1970— CONTINUED 

B A N K S G RO U PED A CCO RD IN G TO AM O U NT OF DEPOSITS AND BY RATIOS OF SELECTED ITEM S TO A SSETS OR DEPO SITS

Ratios

(In percent)

All

banks

Number of banks with deposits of—

Less

than

$1 million

$1 million

to

$2 million

$2 million

to

$5 million

$5 million

to

$10 million

$10 million

to

$25 million

$25 million

to

$50 million

$50 million

to

$100 million

$100 million

to

$500 million

$500 million

to

$1 billion

$1 billion

or

more

Ratios of loans to to tal assets of—

Less than 2 0 ...................................................................................... 115 18 23 45 16 9 1 2 1 0 0

20 to 2 4 .9 9 ......................................................................................... 146 10 30 53 37 14 0 1 1 0 0

25 to 29.9 9 ......................................................................................... 293 10 53 97 81 43 4 3 2 0 0

30 to 34.99......................................................................................... 505 16 53 177 137 97 15 8 2 0 0

35 to 3 9.99......................................................................................... 938 20 84 285 268 197 58 15 10 0 1

40 to 4 4.99......................................................................................... 1,500 15 120 432 408 350 107 38 29 0 1

45 to 4 9.9 9 ......................................................................................... 2,120 23 127 495 554 583 185 82 58 8 5

50 to 54.99......................................................................................... 2,483 19 134 497 603 721 261 120 97 20 11

55 to 59.99......................................................................................... 2,475 27 108 497 575 649 296 137 133 25 28

60 to 6 4.99......................................................................................... 1,670 17 73 347 416 439 192 95 72 11 8

65 to 6 9 .9 9 ......................................................................................... 844 6 68 210 225 212 73 28 16 5 1

70 to 74.99......................................................................................... 294 9 21 96 93 54 10 7 3 0 1

75 or m ore......................................................................................... 128 2 14 46 36 20 8 0 2 0 0

Ratios of cash and due from banks to to ta l assets

o f—

Less than 5 ........................................................................................ 430 4 40 141 106 82 40 10 7 0 0

5.0 to 7 .4 9 .......................................................................................... 1,901 10 130 534 546 482 128 43 24 3 1

7.5 to 9 .9 9 .......................................................................................... 3,037 19 153 779 817 841 262 101 58 6 1

10.0 to 12.49..................................................................................... 2,752 24 144 601 698 775 280 135 77 13 5

12.5 to 14.99..................................................................................... 1,981 24 126 418 509 492 227 105 63 10 7

15.0 to 17.49..................................................................................... 1,285 17 82 296 306 302 137 66 58 7 14

17.5 to 19.99...................................................................................... 814 26 76 187 181 181 56 34 49 11 13

20.0 to 24.99..................................................................................... 833 19 94 190 190 165 66 31 56 15 7

25.0 to 29.9 9..................................................................................... 303 20 39 87 63 44 10 9 22 4 5

30.0 or m ore..................................................................................... 175 29 24 44 33 24 4 2 12 0 3

210 FEDERAL DEPOSIT INSURANCE CORPORATION

Digitized for FRASER 

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Federal Reserve Bank of St. Louis
R atios of to tal dem and deposits to to ta l deposits

o f—

Less than 2 5 .....................................................................................

25 to 29.99 .........................................................................................

30 to 34.99.........................................................................................

35 to 39.9 9........................................................................................

40 to 44.99.........................................................................................

45 to 4 9.99 .........................................................................................

50 to 5 4.99.........................................................................................

55 to 59.9 9.........................................................................................

60 to 64.99.........................................................................................

65 to 69.99.........................................................................................

70 to 79.99.........................................................................................

80 to 89.99........................................................................................

90 or m o re........................................................................................

384

810

1,361

1,853

2,182

2,033

1,644

1,223

749

463

435

143

231

4

2

4

6

11

18

13

17

17

15

22

19

44

11

31

40

79

99

146

112

91

71

51

70

34

73

82

204

331

428

535

487

389

280

166

130

136

36

73

126

218

344

499

585

511

421

297

203

96

95

28

26

119

221

391

530

566

531

411

311

148

79

57

17

7

24

86

149

177

211

178

167

104

64

30

12

5

3

8

37

64

78

93

83

63

53

24

17

12

1

3

10

9

35

47

68

62

54

52

39

27

18

3

2

0

1

2

5

7

11

8

9

9

10

7

0

0

0

1

1

4

7

6

6

9

8

8

6

0

0

Ratios of to tal cap ital accounts to to tal assets o ther

than cash and due from banks, and U.S. Tre asu ry

secu rities, and U.S. G overnm ent agency securitie s of—

Less than 7 .5 .................................................................................... 418 0 2 23 53 161 96 37 36 3 7

7.5 to 9 .9 9 .......................................................................................... 3,093 0 23 276 693 1,113 505 231 191 35 26

10.0 to 12.49..................................................................................... 3,947 4 88 674 1,188 1,210 418 182 143 24 16

12.5 to 14.99..................................................................................... 2,311 8 117 695 719 544 129 59 28 5 7

15.0 to 17.49..................................................................................... 1,301 9 127 515 379 202 39 11 18 1 0

17.5 to 19.99..................................................................................... 739 18 113 326 175 80 13 9 4 1 0

20.0 to 2 2.49..................................................................................... 478 16 75 235 110 30 5 5 2 0 0

22.5 to 24.99..................................................................................... 305 15 61 148 54 22 1 2 2 0 0

25.0 to 29.99..................................................................................... 352 24 91 168 49 15 4 0 1 0 0

30.0 to 34.99..................................................................................... 205 17 72 97 15 4 0 0 0 0 0

35.0 to 39.99..................................................................................... 96 12 38 31 11 3 0 0 1 0 0

40.0 or m ore..................................................................................... 266 69 101 89 3 4 0 0 0 0 0

R atios of to tal cap ital accounts to to ta l assets of—

Less than 5 ....................................................................................... 280 0 2 28 54 105 55 19 14 1 2

5 to 5 .9 9............................................................................................. 1,092 1 14 121 266 408 149 64 56 4 9

6 to 6 .99 ............................................................................................. 2,602 0 50 378 677 833 356 145 131 18 14

7 to 7 .99 ............................................................................................. 3,117 5 94 641 845 902 323 155 105 30 17

8 to 8 .9 9 ............................................................................................. 2,322 10 128 601 671 552 183 87 71 10 9

9 to 9 .9 9 ............................................................................................. 1,491 14 109 485 433 308 73 36 27 3 3

10 to 10.99........................................................................................ 921 13 122 336 236 149 30 17 13 3 2

11 to 11.99........................................................................................ 567 18 101 234 114 66 27 5 2 0 0

12 to 12.99........................................................................................ 323 20 62 152 55 25 4 1 4 0 0

13 to 14.99........................................................................................ 325 24 81 118 66 22 7 5 2 0 0

15 to 16.99........................................................................................ 165 21 50 64 17 11 1 1 0 0 0

17 or m ore........................................................................................ 306 | 66 95 119 15 7 2 1 1 0 0

Number of banks................................................................................ 13,511 192 908 3,277 3,449 3,388 1,210 536 426 69 56

ASSETS AND LIABILITIES OF BANKS

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Federal Reserve Bank of St. Louis
INCOME OF INSURED BANKS

Table 113. Income of insured commercial banks in the United States (States and other areas),

1962-1970

Table 114. Ratios of income of insured commercial banks in the United States (States and

other areas), 1962-1970

Table 115. Income of insured commercial banks in the United States (States and other areas),

1970

Banks grouped by class of bank

Table 116. Income of insured commercial banks operating throughout 1970 in the United

States (States and other areas)

Banks grouped by amount of deposits

Table 117. Ratios of income of insured commercial banks operating throughout 1970 in

the United States (States and other areas)

Banks grouped according to amount of deposits

Table 118. Income of insured mutual savings banks in the United States (States and other

areas), 1962-1970

Table 119. Ratios of income of insured mutual savings banks in the United States (States

and other areas), 1962-1970

The income data received and published by the Corporation

relate to commercial and mutual savings banks insured by the

Corporation.

Commercial banks

Prior to 1969, reports of income and dividends were submitted

to the Federal supervisory agencies on either a cash or an accrual

basis. In 1969, banks with assets of $50 million or more, and

beginning in 1970, $25 million or more, were required to report

consolidated income accounts on an accrual basis. Smaller banks

continue to have the option of submitting their reports on a cash

or an accrual basis, except that unearned discount on installment

loans, and income taxes, must be reported on an accrual basis.

For more detail on the method of cash or accrual reporting by

banks, and on the inclusion of subsidiaries in consolidated statements of condition and income, refer to page 191 of this report.

Income data are included for all insured banks operating at the

end of the respective years, unless indicated otherwise. In addition,

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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In 1969 the Report of Income was revised to include a more

detailed breakdown of investment income and separation of income

from Federal funds transactions from other loan income. The overall contents of “Operating income" were not changed significantly

from prior years, the principal changes being the consolidation of

subsidiaries and conversion to accrual accounting.

Under "Operating expenses," expense of Federal funds transactions, which is now itemized separately, was included prior to

1969 under "Interest on borrowed money." "Interest on capital

notes and debentures," now included in operating expenses, before

1969 was not treated as a charge against operating earnings or

net income. The item "Provision for loan losses" covers actual

loan losses (charge-offs less recoveries), or an average percentage

of loan losses experienced during the previous five years, applied

to average loans outstanding during the year, beginning in 1969.

Newly organized banks and others are also permitted to determine

their loan loss ratio by averaging forward from 1969 or their first

year of operation. Prior to 1969, loan losses for most banks (those

on a reserve basis) were not charged against operating income or

net income. Instead, transfers to loan loss reserves were included

as a charge against net income (but not against operating income).

Actual losses charged to loan loss reserves were treated as a

memorandum item.

In 1969 and 1970, "Applicable income taxes" for 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.

Income from securities gains and losses, reported both gross

and after taxes, prior to 1969 was reported as separate gain or

loss items. It is now included, along with a subtraction for minority interest in consolidated subsidiaries, before arriving at net income (after taxes).

The memorandum item "Total provision for income taxes" does

not necessarily equal the sum of "Applicable income taxes" and

the tax effects of security gains or losses and of extraordinary

charges or credits. The principal difference is accounted for by the

fact that the transfer to reserve for bad debts generally exceeds

provision for loan loss and consequently tends to reduce tax

liability.

In comparing the 1969 and 1970 reports with prior data, certain

generalizations are applicable. Because of the inclusion of additional items in "Operating expenses," "Income before taxes or

security gains or losses" is understated, compared with the current

operating income of prior reports. On the other hand, "Net income"

for years prior to 1969 tends to be somewhat understated because

it includes transfers to bad debt reserves which would generally

exceed the provision for loan losses. Table 114 provides several

operating ratios which afford comparsions between years prior

to 1969 and more recent earnings experience.

Mutual savings banks

The present report of income and dividends for mutual savings

banks was first used by the Corporation for the calendar year

1951. For a discussion of the history and principles of this report

see pp. 50-52 in Part 2 of the 1951 Annual Report

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.

INCOME OF INSURED BANKS 213

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Federal Reserve Bank of St. Louis
Table 113. INCOME OF INSURED COMMERCIAL BANKS IN THE UNITED STATES (STATES AND OTHER AREAS), 1962-1970

(Amounts in thousands of dollars)

Income item 1962 1963 1964 1965 1966 1967 1968 1969 1 1970

O p eratin g incom e— to tal

Interest and fees on loans 2. . . .

Income on Federal funds sold and securities purchased under

agreements to resell 2 .........................

12,218,959

7,717,845

13,509,713

8,672,315

15,024,487

9,785,238

16,817,187

11,204,863

19,508,414

13,286,400

21,781,611

14,646,637

25,478,404

17,121,079

30,806,805

20,726,664

811,580

2,845,257

551,068

2,215,971

134.548

l , 0 2 i ; 900

1,120,196

693,578

686,043

34,716,420

22,967,366

1,006,367

3,078,725

688,421

2,620,257

151,832

1,132,292

1,178,192

842,480

1,050,488

Interest on U.S. Treasury securities.. .

Interest and dividends on securities of other U.S. Government

agencies and corporations 3................................. ....................

2,093,207 2,176,454 2,240,389 2,224,711 2,317,794 2 ,601,900 3,004,655

Interest on obligations of States and political subdivisions 3..............

Interest and dividends on other securities 3

Trust department income..................................................................................

Service charges on deposit accounts............................................................

Other service charges, collection and exchange charges, commissions, and fe e s ............................................................ ......................

Other operating income......................................................................................

759,030

543,916

681,243

237,446

186,272

q?i nsn

573’, 252

728,857

248,362

189,413

1 nas 3 3 4 

’ 629’, 694

781,405

280,289

222,138

1,285,287

689,628

842,775

304,276

265,647

1,531,517

756,130

915,049

354,036

347,488

1 904.886

’ 820,269

987,187

411,021

409,711

2.376.223

'906!206

1,055,964

478,028

536,249

O p erating expense— t o t a l4......................................................................

Salaries and wages of officers and employees..........................................

Pensions and other employee benefits....................................................

Interest on deposits...........................................

Expense of Federal funds purchased and securities sold under

agreements to repurchase 5 ...........

8,589,177

3,073,552

419,098

2,845,283

9,714,980

3,284,375

457,033

3,464,308

10,897,460

3,519,062

490,732

4,088,061

12,486,120

3,762,024

525,692

5,070,781

14,561,852

4,095,742

598,768

6,259,472

16,553,642

4,537,896

667,345

7,379,863

19,354,237

5,101,803

755,744

8,681,705

24,076,791

5,878,812

903,469

9 ,789,893

1,205,787

433,120

100,742

1,073,339

1,331,926

258,587

773,072

521,064

3,397,493

27,588,602

6,656,884

1,060,167

10,483,795

1,400,838

464,568

104,730

1,254,520

1,555,734

301,214

909,090

703,150

4,550,860

Interest on other borrowed money 5.............................................................

Interest on capital notes and debentures 4

64,325 106,517 127,277 189,519 301,768 266,476 528,986

Occupancy expense of bank premises, n e t.................................................

Gross occupancy expense..............................................................................

Less rental income..........................................................................................

Furniture and equipment, depreciation, rental costs, servicing, etc..

Provision for loan losses 4

555,670

699,296

143,626

267,885

608,462

760,908

152,446

311,518

670,243

831,158

160,915

362,301

731,573

898,440

166,867

411,889

802,060

980,444

178,384

458,695

873,541

1,059,785

186,244

533,846

970,034

1,173,423

203,389

631,564

Other operating expenses................................................................................. 1,363,364 1,482,767 1,639,784 1,794,642 2,045,347 2,294,675 2,684,401

Incom e before incom e taxes and secu ritie s gains or lo s ses6___

N e t c u rre n t o p erating earnings (old b a s is ).............................................

Applicab le incom e ta x e s 6

6,730,014

2,164,419

4,565,595

-2 3 7 ,7 0 7

-5 1 2 ,2 4 2

-2 7 4 ,5 3 5

4,327,888

6,914

3,994

- 2 ,9 2 0

235

4,334,567

7,127,818

2,173,775

4,954,043

-1 0 3 ,6 9 5

-2 2 4 ,0 2 8

-1 2 0 ,3 3 3

4,850,348

-1 2 ,8 1 0

-3 5 ,8 6 5

-2 3 ,0 5 5

245

4,837,293

3,629,782 3,794,733 4,127,027 4,331,067 4,946,562 5,227,969 6,124,167

Incom e b efore s ec u ritie s gains or lo s s e s 6

S ecu rities gains or losses, n e t 6. . . . . ..

Gross..........................................................................................................................

T a x es 6 ..................................................................................

198,048 117,558 -1 3 ,6 7 4 - 4 2 6 -3 9 2 ,4 4 7 - 4 ,3 1 2 -4 3 8 ,5 2 0

N e t incom e b efore e xtrao rd in ary ite m s 6

E xtrao rd in ary charges or cred its, n e t 6 ..................

Gross ...................................................................................

Taxes .......................................

Less m inority in te re s t in consolidated s u b s id ia rie s 6

N e t incom e ..................

214 FEDERAL DEPOSIT INSURANCE CORPORATION

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R eco veries, c h arg e-o ffs, tra n s fe rs from reserves, n e t....................

N e t incom e before taxes (old b a s is )...........................................................

T o ta l provision fo r incom e ta x e s .................................................................

Federal income taxes..........................................................................................

State and local income taxes...........................................................................

N et incom e a fte r tax es (old b a s is )..............................................................

-5 6 7 ,6 5 2

3,260,178

1,256,382

1,159,725

96,657

-5 3 2 ,7 4 5

3,379,546

1,226,783

1,130,629

96,154

-6 8 1 ,5 2 1

3,431,832

1,148,203

1,050,624

97,579

-7 8 6 ,7 4 6

3,543,895

1,029,162

927,423

101,739

-8 3 9 ,8 6 9

3,714,246

1,029,906

911,585

118,321

-9 0 4 ,6 4 5

4,319,012

1,177,154

1,020,988

156,166

-9 9 2 ,6 6 5

4,692,982

1,267,044

1,086,889

180,155

1,505,336

1,287,514

217,822

1,863,787

1,619,790

243,997

2,003,796 2,152,763 2,283,629 2,514,733 2,684,340 3,141,858 3,425,938

Dividends on cap ital— t o t a l7...........................................................................

Cash dividends declared on common stock...............................................

Cash dividends declared on preferred stock 7..........................................

941,189

939,426

1,763

993,374

990,039

3,335

1,088,310

1,062,561

25,749

1,202,349

1,146,186

56,163

1,307,387

1,240,048

67,339

1,426,202

1,342,538

83,664

1,589,114

1,488,670

100,444

1,769,314

1,762,279

7,035

2,040,027

2,033,288

6,739

M em oranda

Recoveries credited to reserves (not included above):

On loans..................................................................................................................

On securities..........................................................................................................

Losses charged to reserves (not included above):

On loans..................................................................................................................

On securities..........................................................................................................

84,863

4,714

238,825

16,305

96,897

6,216

323,475

17,314

157,791

4,515

394,181

43,683

124,062

4,158

429,490

25,761

143,859

3,300

545,647

60,282

168,680

5,638

601,194

29,072

219,115

1,913

629,707

32,262

209,124

1,986

697,874

12,448

255,350

1,260

1,236,988

2,881

A verage assets and lia b ilitie s 8

Assets— t o t a l...........................................................................................................

Cash and due from banks.................................................................................

United States Treasury securities.................................................................

Obligations of States and political subdivisions9

276,869,632

49,438,670

64,519,914

301,861,288

50,997,566

64,058,431

328,756,207

54,449,343

61,439,390

360,944,351

59,013,596

59,419,551

391,255,121

62,867,398

56,088,649

425,619,337

70,248,679

57,357,584

473,138,013

78,504,024

61,545,807

516,325,483

86,663,384

56,724,083 '<>

58,011,200 10 

11,839,130 'o

283,479,251

19,608,435 10

543,880,408

89,089,607

54,198,407 w

62,012,771 10

12,821,687 w

301,667,242

24,090,694 10

Other securities9..................................................................................................

Loans and discounts...........................................................................................

All other assets.....................................................................................................

L ia b ilities and cap ital— t o t a l..........................................................................

Total deposits........................................................................................................

Demand deposits.................................................................................

Time and savings deposits.................................................................

Borrowings and other liab ilities.....................................................................

Total capital accounts........................................................................................

25,761,084

130,437,964

6,712,000

31,421,875

147,948,743

7,434,673

36,360,062

168,082,284

8,425,128

41,540,772

191,391,533

9,578,899

47,054,812

214,381,628

10,862,634

55,213,293

230,636,149

12,163,632

65,318,374

253,678,319

14,091,481

276,869,632

243,319,550

153,849,494

89,470,056

10,846,274

22,703,808

301,861,288

264,069,489

159,561,973

104,507,516

13.507.899

24.283.900

328,756,207

287,988,560

168,382,122

119,606,438

14,376,273

26,391,374

360,944,351

315,643,533

178,089,360

137,554,173

16,479,957

28,820,861

391,255,121

340,336,714

185,336,407

155,000,307

20,067,721

30,850,686

425,619,337

368,906,501

194,982,924

173,923,577

23,836,162

32,876,674

473,138,013

407,508,260

213,628,389

193,879,871

30,297,605

35,332,148

516,325,483

431,468,339

230,490,525

200,977,814

46,642,486

38,214,658

543,880,408

449,522,141

237,588,875

211,933,266

53,212,878

41,145,389

Number of employees (end of p erio d )............................................................. 656,153 648,967 702,658 732,163 777,361 815,037 866,725 904,008 959,867

Number of banks (end of perio d )................................................................... 13,124 13,291 13,493 13,547 13,541 13,517 13,488 13,473 13,511

1 Figures before 1969 may differ slightly from those published by the Board of Governors of the Federal Reserve System and the Comptroller of the Currency because of differences in rounding

techniques. Revisions in Report of Income in 1969 are discussed on pp. 212-213; also see notes to tables.

2 "Income on Federal funds sold” was included in "Interest and discount on loans" in 1968 and prior years (see 1968 report, p. 198).

3 Income from "Securities of other U.S. Government agencies and corporations” and from "Obligations of States and political subdivisions” were included in income from "Other securities” in 1968

and prior years.

4 "Interest on capital notes and debentures” and "Provision for loan losses” not included in "Operating expense— total” in 1968 and prior years.

5 "Expense of Federal funds purchased and securities sold under agreements to repurchase” were included in "Interest on borrowed money” in 1968 and prior years.

e Data are not available prior to 1969. See p. 213 of this report.

7 In 1968 and prior years, "Dividends declared on preferred stock” was reported in combination with "Interest on capital notes and debentures.”

8 For 1964-1970, averages of amounts reported at beginning, middle, and end of year. For 1962, averages of amounts for four consecutive official call dates beginning with the end of the previous year

and ending with the fall call of the current year. For 1963, averages of amounts reported at 1962 year-end, 1963 spring, midyear, and year-end calls. 1962-1968 averages of securities and loans have been

revised to a gross basis.

9 In 1968 and prior years, "Obligations of States and political subdivisions” were included in "Other securities.”

10 Securities held in trading accounts are included in "All other assets.”

INCOME OF INSURED BANKS 215

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Table 114. RATIOS OF INCOME OF INSURED COMMERCIAL BANKS IN THE UNITED STATES (STATES AND OTHER AREAS), 1962-1970

Income item 1962 1963 1964 1965 1966 1967 1968 1969 1970

A m ounts per $100 of o p erating incom e

O p erating incom e— t o t a l . . . ............................

Income on loans 1.................... .........................................................................

Interest on U.S. Treasury securities 2 ..................................................................

Interest on State and local government obligations 2 ..........................

$100.00

63.16

17.13

$100.00

64.19

16.11

$100.00

65.13

14.91

$100.00

66.63

13.23

$100.00

68.11

11.88

$100.00

67.24

11.95

$100.00

67.20

11.79

$100.00

69.91

9.23

7.19

2.23

3.32

3 .64

2.25

2.23

$100.00

69.05

8.87

7.55

2.42

3.26

3.39

2.43

3.03

Interest and dividends on other securities 2 ........................................................................................

Trust department income.......... .......................................................................................

Service charges on deposit accounts.........................................................................................................

Other charges, commissions, fees, etc......................................................................................................

Other operating income..................................................................................................................................

O perating expense— t o t a l3...........................................................................................................................

Salaries and wages..........................................................................................................................................

Pension* and other henefits................................................................................................................

Interest on tim e and savings deposits......................................................................................................

Interest on borrowed money 3.....................................................................................................................

Occupancy expense of bank premises, n e t.............................................................................................

Furniture and equipment, etc.......................................................................................................................

Provision for loan losses 3. .. ......................... ........................

6.21

4.45

5.58

1.94

1.53

6.82

4.24

5.39

1.84

1.41

7.22

4.19

5.20

1.87

1.48

7.64

4.10

5.01

1.81

1.58

7.85

3.88

4.69

1.81

1.78

8 .74

3.77

4 .53

1.89

1.88

9.33

3.56

4.14

1.88

2.10

70.29

25.15

3.43

23.28

.53

4.55

2.19

71.91

24.31

3.38

25.64

.79

4.50

2.31

72.53

23.42

3.27

27.21

.85

4.46

2.41

74.25

22.37

3.13

30.15

1.13

4 .35

2.45

74.64

20.99

3.07

32.09

1.55

4.11

2.35

76.00

20.83

3.07

33.88

1.22

4.01

2.45

75.96

20.02

2.97

34.07

2.08

3.81

2.48

78.15

19.08

2.93

31.78

5.65

3.48

2.51

1.69

11.03

79.47

19.18

3.05

30.20

5.67

3.61

2.62

2.03

Other operating expenses.............................................................................................................................. 13.11

Incom e b efore incom e tax e s and s e c u ritie s gains or losses

11.16 10.98 10.91 10.67 10.48 10.54 10.53

21.85 20.53

N e t c u rre n t op eratin g e arn in g s (old basis) 29.71 28.09 27.47 25.75 25.36 24.00 24.04

A m ounts per $100 of to tal assets

Operating income— to ta l.....................................................................................................................................

Net current operating earnings (old b asis).................................................................................................

Income before income taxes and securities gains or losses

4.41

1.31

4.48

1.26

4.57

1.26

4 .66

1.20

4.99

1.26

5.12

1.23

5.38

1.29

5.97 6.38

1.30

.84

1.31

Net income 4........................................................................................................................................................... .89

A m ounts p er $100 of to ta l cap ital accoun ts

Net income 4...........................................................................................................................................................

Cash dividends declared on common stock................................................................................................

Net additions to capital from income............................................................................................................

Special ratio s

Income on loans per $100 of loans 1..............................................................................................................

Income on U.S. Treasury securities per $100 of U.S. Treasury securities......................................

Income on obligations of States and political subdivisions per $100 of obligations of States

and political subdivisions2 .................................. .............................

.72 .71 .69 .70 .69 .74 .72

8.83

4.14

4.68

8.86

4.08

4.77

8.65

4.03

4.53

8.73

3.98

4 .56

8.70

4.02

4.46

9.56

4.08

5.22

9.70

4.21

5.20

11.34

4.61

6.71

11.76

4.94

6.80

5.92

3.24

5.86

3.40

5.82

3.65

5.85

3.74

6.20

4.13

6.35

4.54

6.75

4.88

7.60

5.02

3.82

5.79

.49

4.87

7.95

5.68

4.23

6.55

.50

4.95

Income on other securities per $100 of other securities 2.....................................................................

Service charges per $100 of demand deposits...........................................................................................

Interest paid per $100 of tim e and savings deposits...............................................................................

2.95

.44

3.18

2.93

.46

3.31

2.98

.46

3.42

3.09

.47

3.69

3.25

.49

4.04

3.45

.51

4.24

3.64

.49

4.48

Number of banks (end of period)................................................................................................................. 13,124 13,291 13,493 13,547 13,541 13,517 13,488 13,473 13,511

1 Includes Federal funds sold. • • , . j .

2 "Interest on State and local government obligations" included in “ Interest and dividends on other securities" in 1968 and prior years. Income from securities held in trading accounts is included in

“ Other operating income.”

3 “ Interest on capital notes and debentures,” which is included in “ Interest on borrowed money” in 1969 and 1970, and “ Provision for loan losses” were not included in “ Operating expense— total

in 1968 and prior years.

4 Because of changes in the form of reporting by banks, figures in 1969 and 1970 are not fully comparable with those in 1968 and prior years; see table 113 and p. 213.

216 FEDERAL DEPOSIT INSURANCE CORPORATION

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Table 115. INCOME OF INSURED COMMERCIAL BANKS IN THE UNITED STATES (STATES AND OTHER AREAS), 1970

BANKS GROUPED BY CLASS OF BANK

(Amounts in thousands of dollars)

Income item Total

Members F.R. System Nonmembers

F.R. System

Operating

throughout

the year

Operating

less than

National State full year

O p eratin g incom e— t o t a l.................................................................................................................... 34,716,420

22,967,366

1,006,367

3,078,725

688,421

2,620,257

151,832

1,132,292

1,178,192

842,480

1,050,488

20,433,731

13,698,354

602,927

1,654,123

326,990

1,535,309

90,675

626,202

686,411

534,791

677,949

7,489,285

5,012,703

178,686

555,336

87,880

556,048

28,007

448,503

181,577

146,904

293,641

6,793,404

4,256,309

224,754

869,266

273,551

528,900

33,150

57,587

310,204

160,785

78,898

34,695,215

22,957,256

1,003,770

3,074,736

686,712

2,619,916

151,368

1,132,281

1,177,301

842,032

1,049,843

21,205

10,110

2,597

3,989

1,709

341

464

11

891

448

645

Interest and fees on loans..............................................................................................................................................

Income on Federal funds sold and securities purchased under agreements to resell...............................................

Interest on U.S. Treasury securities..................................................................................................

Interest and dividends on securities of other U.S. Government agencies and corporations.................

Interest on obligations of States and political subdivisions..........................................................................

Interest and dividends on other securities...............................................................................

Trust department incom e.............................................................................................

Service charges on deposit accounts..............................................................................................................................

Other service charges, collection and exchange charges, commissions, and fees..................................

Other operating incom e....................................................................................................................

O p eratin g expense— t o t a l......................................................................................

Salaries and wages of officers and employees.................................................................................................

Pensions and other employee benefits.....................................................................................

Interest on deposits........................................................................................................

27,588,602

6,656,884

1,060,167

10,483,795

1,400,838

464,568

104,730

1,254,520

1,555,734

301,214

909,090

703,150

4 ,550,860

16,301,996

3 ,838,556

625,174

6,215,245

937,495

169,780

55,165

723,788

923,541

199,753

546,553

405,564

2,784,676

5,899,683

1,445,331

250,807

1,977,682

428,009

274,629

35,091

289,353

352,715

63,362

175,882

129,032

893,867

5,386,923

1,372,997

184,186

2,290,868

35,334

20,159

14,474

241,379

279,478

38,099

186,655

168,554

872,317

27,562,913

6,649,015

1,059,514

10,478,528

1,400,767

464,538

104,715

1,252,622

1,553,692

301,070

907,943

702,460

4,542,811

25,689

7,869

653

5,267

71

30

15

1,898

2,042

144

1,147

690

8,049

Expense of Federal funds purchased and securities sold under agreements to repurchase

Interest on other borrowed m oney....................................................................

Interest on capital notes and debentures..................................................................................

Occupancy expense of bank premises, n e t.......................................................

Gross occupancy expense............................................................

Less-rental incom e................................................................................................................

Furniture and equipment, depreciation, rental costs, servicing, etc___

Provision for loan losses....................................................................

Other operating expenses......................................................................................

Incom e b efore incom e tax e s and s e c u ritie s gains or losses..........................................

A pplicab le incom e ta x e s ...........................................................................

Incom e before s ec u ritie s gains or losses.................................................

N e t secu ritie s gains or lo sses..........................................................................

Gross.............................................................................................................................. ...........

7 ,127,818

2,173,775

4 ,954,043

-1 0 3 ,6 9 5

-2 2 4 ,0 2 8

-1 2 0 ,3 3 3

4,131,735

1,239,931

2,891,804

-6 4 ,5 1 2

-1 3 6 ,8 1 7

-7 2 ,3 0 5

1,589,602

535,870

1,053,732

-4 2 ,5 6 1

-8 7 ,7 4 6

- 4 5 ,1 8 5

1,406,481

397,974

1,008,507

3,378

535

- 2 ,8 4 3

7,132,302

2,173,624

4,958,678

-1 0 3 ,8 4 8

-2 2 4 ,1 8 4

-1 2 0 ,3 3 6

- 4 ,4 8 4

151

- 4 ,6 3 5

153

156

Taxes......................................................................................................................... 3

N e t incom e befo re e xtra o rd in a ry ite m s ....................................

E xtrao rd in ary charges or cre d its , n e t............................................................

Gross...................................................................................................

Taxes.............................................................................................................................

4,850,348

- 1 2 ,8 1 0

-3 5 ,8 6 5

-2 3 ,0 5 5

2,827,292

2,081

84

-1 ,9 9 7

1,011,171

-1 7 ,0 1 7

-3 7 ,5 9 5

-2 0 ,5 7 8

1,011,885

2,126

1,646

-4 8 0

4,854,830

-1 2 ,7 1 7

-3 5 ,7 8 6

-2 3 ,0 6 9

- 4 ,4 8 2

- 9 3

- 7 9

14

INCOME OF INSURED BANKS 217

Digitized for FRASER 

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Federal Reserve Bank of St. Louis
Table 115. INCOME OF INSURED COMMERCIAL BANKS IN THE UNITED STATES (STATES AND OTHER AREAS), 1970-CONTINUED

BA NK S GROUPED BY CLASS OF BANK

(Amounts in thousands of dollars)

Income item Total

Members F.R. System Nonmembers

F.R. System

Operating

throughout

the year

Operating

less than

National State full year

Less m in o rity in te re s t in consolidated su b s id iarie s ........................................................................................................ 245

4,837,293

39

2,829,334

206

1,013,805

245

N e t in c o m e ............................................................................................................................................................................................. 4,841,868

T o ta l provision fo r incom e ta x e s ...............................................................................................................................................

Federal income taxes.......................................................................................................................................................................

State and local income taxes........................................................................................................................................................

Dividends on cap ital— t o t a l...........................................................................................................................................................

Cash dividends declared on common stock.............................................................................................................................

Cash dividends declared on preferred stock...........................................................................................................................

994,154 -4 ,5 7 5

1,863,787

1,619,790

243,997

1,058,327

924,202

134,125

422,626

348,913

73,713

382,834

346,675

36,159

1,863,648

1,619,656

243,992

139

134

5

2,040,027

2,033,288

6,739

1,277,716

1,273,039

4,677

476,357

474,876

1,481

285,954

285,373

581

2,039,897

2,033,158

6,739

130

130

M em oranda

Recoveries credited to reserves (not included above):

On loans................................................................................................................................................................................................

On securities.......................................................................................................................................................................................

Losses charged to reserves (not included above):

On loans................................................................................................................................................................................................

On securities........................................................... .............................................................................................................

255,350

1,260

1,236,988

2,881

164,375

608

763,047

1,495

40,990

153

240,414

342

49,985

499

233,527

1,044

255,305

1,251

1,236,713

2,881

45

9

275

Number of employees , December 31 .......................................................................................................................................... 959,867 558,124 187,618 214,125 957,984 1,883

Number of banks, December 3 1 ................................................................................................................................................... 13,511 4,621 1,147 7,743 13,342 169

218 FEDERAL DEPOSIT INSURANCE CORPORATION

Digitized for FRASER 

http://fraser.stlouisfed.org/ 

Federal Reserve Bank of St. Louis
Table 116. INCOME OF INSURED COMMERCIAL BANKS OPERATING THROUGHOUT 1970 IN THE UNITED STATES

(STATES AND OTHER AREAS)

BA N K S GROUPED BY AM O U NT OF DEPO SITS

(Amounts in thousands of dollars)

Banks with deposits of—

Income item All

banks1

Less

than

$1 m illion2

$1 million

to

$2 million

$2 million

to

$5 million

$5 million

to

$10 million

$10 million

to

$25 million

$25 million

to

$50 million

$50 million

to

$100 million

$100 million

to

$500 million

$500 million

to

$1 billion

$1 billion

or

more

O p eratin g incom e— t o t a l....................................................... 34,695,215 9,108 94,683 753,132 1,680,115 3 ,551,251 2,876,271 2,575,305 6,284,565 3,583,386 13,287,399

Interest and fees on loans.................................................... 2 2,957,256 4,643 51,391 430,277 995,139 2,164,968 1,810,720 1,649,301 4,174,644 2,460,654 9,215,519

Income on Federal funds sold and securities purchased under agreements to resell............................... 1,003,770 460 3,612 29,424 70,072 142,200 103,638 86,006 184,867 96,901 286,589

Interest on U.S. Treasury securities................................. 3 ,074,736 2,255 23,291 152,175 272,056 481,756 320,630 268,568 526,429 250,753 776,823

Interest and dividends on securities of other U.S.

Government agencies and corporations...................... 686,712 768 7,006 49,685 83,454 139,581 103,513 71,383 105,499 33,166 92,657

Interest on obligations of States and political subdivisions.................................................................................. 2 ,619,916 97 2,001 35,376 121,630 304,121 262,402 233,131 523,855 262,181 875,122

Interest and dividends on other securities.................... 151,368 94 598 3,450 6,870 14,942 11,382 11,455 28,078 15,622 58,877

Trust departm ent incom e..................................................... 1,132,281 32 23 379 2,822 17,530 33,742 49,217 221,123 157,340 650,073

Service charges on deposit accounts................................ 1,177,301 364 3,414 28,979 77,798 183,279 136,580 107,075 226,141 111,956 301,715

Other service charges, collection and exchange

charges, commissions, and fee s..................................... 842,032 264 2,281 16,683 34,482 68,025 60,355 64,961 179,000 101,846 314,135

Other operating income......................................................... 1,049,843 131 1,066 6,704 15,792 34,849 33,309 34,208 114,929 92,967 715,888

O perating expense— t o t a l..................................................... 27,562,913 7,208 72,721 590,006 1,318,897 2,801,994 2,276,003 2,062,652 4,974,662 2,799,337 10,659,433

Salaries and wages of officers and employees.............. 6,649,015 2,978 25,898 172,552 344,776 682,164 549,602 504,606 1,267,125 708,870 2,390,444

Pensions and other employee benefits............................ 1,059,514 246 2,023 16,727 41,034 89,370 79,987 73,722 202,852 121,941 431,612

Interest on deposits................................................................ 10,478,528 1,534 25,161 247,247 579,947 1,259,871 1,009,199 889,520 1,933,979 959,142 3,572,928

Expense of Federal funds purchased and securities

sold under agreements to repurchase......................... 1,400,767 3 6 226 1,249 6,744 11,382 27,036 184,357 187,524 982,240

Interest on other borrowed m oney................................... 464,538 12 49 733 1,816 4,819 6,839 8,552 32,165 51,889 357,664

Interest on capital notes and debentures....................... 104,715 0 17 194 776 3,693 4,846 6,263 18,933 13,976 56,017

Occupancy expense of bank premises, n e t.................... 1,252,622 403 2,618 21,870 52,245 120,438 103,109 97,279 245,214 130,111 479,335

Gross occupancy expense................................................. 1,553,692 416 2,778 23,402 56,123 132,670 120,122 121,654 313,849 184,537 598,141

Less rental incom e.............................................................. 301,070 13 160 1,532 3,878 12,232 17,013 24,375 68,635 54,426 118,806

Furniture and equipment, depreciation, rental costs,

servicing, etc.......................................................................... 907,943 219 1,988 17,843 42,737 94,537 82,381 78,706 209,531 115,204 264,797

Provision for loan losses....................................................... 702,460 427 2,575 18,581 44,056 87,431 59,469 57,095 119,995 75,008 237,823

Other <iperating expenses..................................................... 4,542,811 1,386 12,386 94,033 210,261 452,927 369,189 319,873 760,511 435,672 1,886,572

Incom e be fo re incom e taxes and s ec u ritie s gains

or losses..................................................................................... 7,132,302 1,900 21,962 163,126 361,218 749,257 600,268 512,653 1,309,903 784,049 2,627,966

A pplicab le incom e ta x e s ....................................................... 2,173,624 495 5,488 43,082 98,947 208,779 165,981 143,267 385,819 255,244 866,522

INCOME OF INSURED BANKS 219

Digitized for FRASER 

http://fraser.stlouisfed.org/ 

Federal Reserve Bank of St. Louis
Table 116. INCOME OF INSURED COMMERCIAL BANKS OPERATING THROUGHOUT 1970 IN THE UNITED STATES

(STATES AND OTHER AREAS)—CONTINUED

BA N K S GROUPED BY AM O UNT OF D EPO SITS

(Amounts in thousands of dollars)

Banks with deposits of—

Income item All

banks 1

Less

than

$1 m illion2

$1 million

to

$2 million

$2 million

to

$5 million

$5 million

to

$10 million

$10 million

to

$25 million

$25 million

to

$50 million

$50 million

to

$100 million

$100 million

to

$500 million

$500 million

to

$1 billion

$1 billion

or

more

Incom e b efo re s e c u ritie s g ain s or losses................... 4,958,678 1,405 16,474 120,044 262,271 540,478 434,287 369,386 924,084 coo one J^O,OUJ 1 *7C1 AA/k X, / U1, I t t

-103,848 -1 9 30 21 1,192 184 -5 0 9 1,289 - 6 ,3 6 7 - 3 ,5 8 1 - 9 5 ,9 9 0

-2 2 4 ,1 8 4 - 1 7 64 58 1,201 - 1 ,7 9 3 - 3 , 4 1 8 106 -1 6 ,9 4 5 - 7 ,9 2 0 — 195,306

Taxes .................................................................................... -1 2 0 ,3 3 6 2 34 37 9 - 1 ,9 7 7 - 2 , 9 0 9 - 1 ,1 8 3 -1 0 ,5 7 8 -4 ,3 3 9 —99,316

N e t incom e b efo re e xtra o rd in a ry ite m s ........................ 4,854,830 1,386 16,504 120,065 263,463 540,662 433,778 370,675 917,717 525,224 1,665,356

E xtrao rd in ary charges or c re d its , n e t ......................... -12,717

- 35,786

3 -2 2 112 568 786 2,115 3,555 - 6 7 6 572 -1 9 ,7 3 0

Gross ................................................................................ 4 - 1 6 58 678 947 2,254 3,257 - 2 ,0 6 0 389 -4 1 ,2 9 7

-2 1 ,5 6 7 Taxes............................................................................................ -23,069 1 6 - 5 4 110 161 139 - 2 9 8 - 1 ,3 8 4 - 1 8 3

Less m in o rity in te re s t in consolidated s u b sid iaries. 245 0 6 1 - 1 45 19 5 173 - 3 0

N e t in c o m e .................................................................................... 4,841,868 1,389 16,476 120,176 264,032 541,403 435,874 374,225 916,868 525,799 1,645,626

To tal provision fo r incom e ta x e s ..................................... 1,863,648 758 6,318 44,847 98,514 198,785 153,640 132,979 346,798 226,831 654,178

516,622 Federal income taxes.............................................................. 1,619,656 726 5,919 41,445 91,213 182,867 141,631 121,634 313,685 203,914

State and local income t a x e s ............................................ 243,992

2,039,897

2 ,0 3 3,15 8

6,739

32 399 3,402 7,301 15,918 12,009 11,345 33,113 22,917 13 7,556

D ividends on cap ital— to ta l ....................................... 328 4,525 30,411 65,294 145,962 129,170 120,966 372,324 236,795 934,122

Cash dividends declared on common stock................... 328 4,525 30,401 65,200 145,692 128,958 120,519 371,740 235,933 929,862

Cash dividends declared on preferred stock................. 0 0 10 94 270 212 447 584 862 4,260

M em oranda

Recoveries credited to reserves (not included ab o ve):

On loans....................................................................................... 255,305 67 740 6,631 17,750 35,442 26,504 22,980 45,927 20,637 78,627

On securities ....................................................................... 1,251 0 4 11 79 427 199 223 307 1 0

Losses charged to reserves (not included ab o ve):

On loans ........................................................................... 1,236,713 191 2,352 22,468 59,208 128,033 96,747 91,071 213,137 142,982 480,524

On securities..................................................... ..................... 2,881 1

2 252 230 399 898 498 353 0 248

Number of employees, December 31................................ 957,984 I 628 4,348 26,472 53,399 115,850 86,684 77,799 188,656 101,458 302,690

Number of banks, December 31 ...................................... 13,341

I 1 5 8

861 3,208 3,436 3,382 1,209 536 426 69 56

1 This group of banks is the same as the group shown in table 115 under the heading "Operating throughout the year ” (see note 2 ) .

2 Figures do not include a noninsured trust company which became an insured bank in a corporate reorganization resulting in its subsequent merger. Data of this bank are included in the $1 billion-ormore category.

220 FEDERAL DEPOSIT INSURANCE CORPORATION

Digitized for FRASER 

http://fraser.stlouisfed.org/ 

Federal Reserve Bank of St. Louis
Table 117. RATIOS OF INCOME OF INSURED COMMERCIAL BANKS OPERATING THROUGHOUT 1970 IN THE UNITED STATES (STATES

AND OTHER AREAS)1

BANKS GROUPED ACCORDING TO AMOUNT OF DEPOSITS

Banks with deposits of—

Income item Less

than

$1 million

$1 million

to

$2 million

$2 million

to

$5 million

$5 million

to

$10 million

$10 million

to

$25 million

$25 million

to

$50 million

$50 million

to

$100 million

$100 million

to

$500 million

$500 million

to

$1 billion

$1 billion

or

more

A m ounts p er $100 o f o p e ra tin g incom e

O p erating incom e— t o t a l.................................................................. 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 Income on loans 2................................................................................. 56.03 58.09 61.04 63.40 64.97 66.56 67.38 69.37 71.37 71.51 Interest on U.S. Treasury securities 3 ......... 24.76 24.60 20.21 16.19 13.57 11.15 10.43 8.38 7.00 5.85 Interest on State and local government obligations 3.......................... 1.06 2.11 4.7 0 7.24 8.56 9.12 9 .05 8.33 7.32 6.59 Interest and dividends on other securities 3.............................. 9.46 8.03 7.05 5.38 4 .35 3.99 3 .22 2.12 1.36 1.14 Trust department incom e.................................................................. .35 .02 .05 .17 .49 1.17 1.91 3.52 4.39 4.89 Service charges on deposit accounts.................................. 4.00 3.61 3.85 4.63 5.16 4.75 4 .16 3.60 3.12 2.27 Other charges, commissions, fees, etc.................... 2.90 2.41 2.21 2.05 1.92 2.10 2.52 2.85 2.84 2.36 Other operating income 3........................................... 1.44 1.13 .89 .94 .98 1.16 1.33 1.83 2.60 5.39

O perating expense— t o t a l.............................. 79.14 76.80 78.34 78.50 78.90 79.13 80.09 79.16 78.12 80.22 Salaries and wages............................... 32.70 27.35 22.91 20.52 19.21 19.11 19.59 20.16 19.78 17.99 Pensions and other benefits.............................................. 2.70 2.14 2.22 2 .44 2.52 2 .78 2.86 3.23 3.40 3.25 Interest on tim e and savings deposits........................ 16.84 26.57 32.83 34.52 35.48 35.09 34.54 30.77 26.77 26.88 Interest on borrowed m oney............................... .16 .08 .15 .23 .43 .80 1.62 3.75 7.07 10.51 Occupancy expense of bank premises, n e t........................... 4.43 2.76 2.90 3.11 3.39 3.58 3 .78 3.90 3.63 3.61 Furniture and equipment, etc.................................................... 2.40 2.10 2.37 2.54 2.66 2.86 3.06 3.34 3.22 1.99 Provision for loan losses................................................... 4.69 2.72 2.47 2.62 2.46 2.07 2.22 1.91 2.09 1.79 Other operating expenses............................................ 15.22 13.08 12.49 12.52 12.75 12.84 12.42 12.10 12.16 14.20

Incom e before incom e tax e s and s ecu ritie s gains or losses___ 20.86 23.20 21.66 21.50 21.10 20.87 19.91 20.84 21.88 19.78

Am ounts p er $100 o f to ta l assets

Operating income— to ta l.............................................. 6.12 6.15 6.08 6.03 6.07 6.11 6.10 6.06 6.14 5.99 Income before income taxes and securities gains or losses 1.28 1.43 1.32 1.30 1.28 1.27 1.21 1.26 1.34 1.18 Net income............................................. .93 1.07 .97 .95 .93 .93 .89 .88 .90 .74

M em oranda

Recoveries credited to reserves (not included ab o ve):

On loans......................................... .04 .05 .05 .06 .06 .06 .05 .04 .04 .04 On securities..............................

Losses charged to reserves (not inciuded ab o ve):

0 (4) (4) (4) (4) (4) (4) (4) (4) 0

On loans......................................... .12 .15 .18 .21 .22 .21 .22 .21 .25 .22 On securities.............................. (4) 0 ) (4) (4) (4) (4) (4) (4) 0 (4)

INCOME OF INSURED BANKS 221

Digitized for FRASER 

http://fraser.stlouisfed.org/ 

Federal Reserve Bank of St. Louis
Table 117. RATIOS OF INCOME OF INSURED COMMERCIAL BANKS OPERATING THROUGHOUT 1970 IN THE UNITED STATES (STATES

AND OTHER AREAS)1—CONTINUED

BANKS GROUPED ACCORDING TO AMOUNT OF DEPOSITS

Banks with deposits of—

Income item Less $1 million $2 million $5 million $10 million $25 million $50 million $100 million $500 million $1 billion

than to to to to to to to to or

$1 million $2 million $5 million $10 million $25 million $50 million $100 million $500 million $1 billion more

A m ounts per $100 o f to ta l c ap ital acco u n ts

Net incom e................................................................................................................. 5.67 9.74 10.49 11.65 12.16 12.58 11.95 11.99 12.17 10.41

Cash dividends declared on common stock.................................................. 1.34 2.68 2.65 2.88 3.27 3.72 3.85 4.86 5.46 5.88

Net additions to capital from income.............................................................. 4.33 7.07 7.83 8.77 8.88 8.85 8.09 7.12 6.69 4.50

M em oranda

Recoveries credited to reserves (not included above):

On loans................................................................................................................. .18 .44 .58 .78 .80 .77 .73 .60 .48 .50

On securities........................................................................................................ 0 (4) (4) (4) .01 .01 .01 (4) (4) 0

Losses charged to reserves (not included above):

On loans................................................................................................................. .52 1.39 1.96 2.61 2.88 2.79 2.91 2.79 3.31 3.04

On securities......................................................................................................... (4) (4) .02 .01 .01 .03 .02 (4) (4)

S pecial ra tio s 5

Income on loans per $100 of loans 1................................................................ 7.44 7.47 7.41 7.45 7.53 7.54 7.60 7.66 7.78 7.73

Income on U.S. Treasury securities per $100 of U.S. Treasury

securities 3........................................................................................... 5.83 5.74 5.61 5.47 5.29 5.36 5.22 5.19 4.83 5.16

Income on obligations of States and political subdivisions per $100

of obligations of States and political subdivisions 3.............................. 3.43 3.74 3.76 3.82 3.84 3.92 3.92 3.77 3.75 4.02

Income on other securities per $100 of other securities 3....................... 8.44 6.40 6.32 5.94 5.94 5.82 5.55 5.08 4.79 5.10

Service charges per $100 of demand deposits............................................. .44 .46 .56 .68 .79 .73 .63 .50 .42 .31

Interest paid per $100 of tim e and savings deposits................................. 3.91 4.17 4.25 4.29 4.34 4 .40 4.44 4.38 4.41 4.72

Number of banks, December 3 1 ........................................................................ 158 861 3,208 3,436 3,382 1,209 536 426 69 56

1 This group of banks is the same as the group shown in table 115 under heading "Operating throughout the year.”

2 Includes Federal funds.

3 Income from securities held in trading accounts is included in “ Other operating income."

4 Less than 0.005.

6 Ratios are based on assets and liabilities reported at end of year.

222 FEDERAL DEPOSIT INSURANCE CORPORATION

Digitized for FRASER 

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Federal Reserve Bank of St. Louis
Table 118. INCOME OF INSURED MUTUAL SAVINGS BANKS IN THE UNITED STATES (STATES AND OTHER AREAS), 1962-1970

(Amounts in thousands of dollars)

Income item 1962 1963 1964 1965 1966 1967 1968 1969 1970

C u rre n t o p eratin g incom e— t o t a l.......................................................................................... 1,755,582 1,946,776 2,164,115 2,391,753 2,606,012 2,884,789 3,238,735 3,581,559 3,874,870

Interest on U.S. Government obligations............................................................................ 156,410 153,659 153,368 147,751 142,509 130,873 134,857 130,111 119,465

Interest and dividends on other securities......................................................................... 206,367 203,720 207,164 211,278 226,023 301,218 417,984 503,724 574,521

Interest and discount on real estate mortgage loans— n e t........................................... 1,342,896 1,534,446 1,738,621 1,950,930 2,141,099 2,326,459 2,538,502 2,768,370 2,963,859

Interest and discount on real estate mortgage loans—gross...................... 1,383,735 1,580,276 1,790,318 2,009,214 2,203,133 2,391,848 2,605,960 2,836,248 3,031,459

39,283

1,556

44,174 49,756 56,165 59,998 63,405 65,426 67,338 67,298

Premium amortization.................................................... 1,656 1,941 2,119 2,036 1,984 2,032 541 302

Interest and discount on other loans and discounts— n e t............................................ 22,733 27,576 33,538 41,773 53,172 67,925 83,807 121,172 154,230

Income on real estate other than bank building— n e t................................................... - 5 2 - 1 0 8 -1 2 2 - 9 7 - 2 5 5 - 2 0 9 -4 1 5 126 832

Income on real estate other than bank building—gross........................... 302 296 421 541 513 767 1,664 2,030 3,635

Less: Operating expense........................................................ 354 404 543 638 768 976 2,079 1,904 2,803

26,856 Income on other assets.............................................................................................................. 9,777 9,984 13,121 18,713 18,095 25,248 23,036 22,114

Income from service operations.............................................................................................. 17,451 17,499 18,425 21,405 25,369 33,275 40,964 35,942 35,107

C u rren t o p e ra tin g expense— t o t a l........................................................................................ 252,963 274,544 290,471 311,755 334,451 353,947 389,780 442,151 519,499

Salaries— officers.......................................................................................................................... 40,466 42,792 45,391 48,514 52,085 55,510 60,161 66,937 73,608

Salaries and wages— other em ployees................................................................................. 79,165 84,514 89,514 93,680 98,421 105,612 115,146 126,676 143,928

Pension, hospitalization and group insurance payments, and other employee

benefits.................................................................................................................................... 25,419 27,202 28,138 30,080 33,593 34,243 37,149 41,860 47,072

Fees paid to trustees and committee m em bers................................................................ 4,158 4,404 4,604 4,720 4,855 4,945 5,111 5,484 6,103

Occupancy, maintenance, etc., of bank premises (including taxes and recurring

depreciation)— n e t.............................................................................................................. 29,269 32,160 34,683 37,219 38,855 42,412 47,184 52,491 60,655

Occupancy, maintenance, etc., of bank premises (including taxes and recurring

depreciation)—gross......................................................... 39,297 42,583 45,871 49,093 51,387 55,631 61,405 67,376 76,285

Less: Income from bank building............................................... 10,028 10,423 11,188 11,874 12,532 13,219 14,221 14,885 15,630

Deposit insurance assessments............................................................................................... 12,172 12,709 14,035 15,887 16,810 17,712 19,571 21,145 20,865

Furniture and fixtures (including recurring depreciation)............................................ 5,997 7,714 9,182 10,262 11,777 13,799 16,414 19,726 22,603

All other current operating expenses.................................................................................... 56,317 63,049 64,924 71,393 78,055 79,714 89,044 107,831 144,665

N e t c u rre n t o p e ra tin g in c o m e ................................................................................................ 1,502,619 1,672,232 1,873,644 2,079,996 2,271,561 2,530,842 2,848,955 3,139,408 3,355,371

Franchise and incom e tax es— t o t a l..................................................................................... 17,966 22,587 26,022 29,487 37,480 37,708 47,710 61,874 78,421

State franchise and income taxes........................................................................................... 17,502 19,168 21,657 22,048 31,426 33,737 39,281 47,571 53,111

Federal income taxes.................................................................................................................. 464 3,419 4,365 7,439 6,054 3,971 8,429 14,303 25,310

N e t c u rre n t o p era tin g incom e a fte r ta x e s ....................................................................... 1,484,653 1,649,645 1,847,622 2,050,511 2,234,081 2,493,134 2,801,245 3,077,535 3,276,950

Dividends and in te re s t on d ep o sits ...................................................................................... 1,334,005 1,481,869 1,653,768 1,809,350 2,087,072 2,395,762 2,612,638 2,808,141 2,987,200

N e t c u rre n t op eratin g incom e a fte r ta x e s and d iv id en d s........................................ 150,648 167,776 193,854 241,161 147,009 97,372 188,607 269,394 289,750

N o n recu rrin g incom e, re a liz ed p ro fits and reco verie s credited to p ro fit

and loss, and tra n s fe rs fro m valu atio n ad ju stm en t provisions— to ta l . 105,907 113,085 105,454 75,130 177,612 93,536 135,049 104,501 60,241

Nonrecurring income................................................................................................................... 20,453 28,678 18,048 15,242 20,211 20,377 29,394 23,743 14,509

Realized profits and recoveries on:

Securities sold or m atured................................................................................................... 55,751 28,752 36,472 27,375 59,173 47,292 77,817 64,809 26,405

Real estate mortgage loans................................................................................................... 739 2,465 1,088 1,266 773 705 1,351 865 657

Other real estate....................................................................................................................... 462 807 571 719 1,548 2,059 2,286 2,555 2,084

All other assets......................................................................................................................... 957 871 1,096 1,532 3,429 1,114 2,066 4,238 1,421

Transfers from valuation adjustment provisions1 on:

Securities.................................................................................................................................... 5,460 26,995 22,029 11,817 13,635 7,774 11,884 4,463 7,055

Real estate mortgage loans.................................................................................................. 21,465 24,342 25,786 16,365 78,458 13,435 9,583 3,167 7,559

Other real estate....................................................................................................................... 66 46 92 121 20 64 56 81 46

All other assets......................................................................................................................... 554 129 272 693 365 716 612 573 505

INCOME OF INSURED BANKS 223

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Table 118. INCOME OF INSURED MUTUAL SAVINGS BANKS IN THE UNITED STATES (STATES AND OTHER AREAS), 1962 1970—CONTINUED

(Amounts in thousands of dollars)

Income item 1962 1963 1964 1965 1966 1967 1968 1969 1970

N o n rec u rrin g expenses, re a liz e d losses charged to p ro fit and loss, and

tra n s fe rs to valu atio n a d ju s tm e n t provisions— t o t a l......................................... 109,192 101,611 88,234 93,036 147,688 94,744 100,690 160,669 186,073

Nonrecurring expenses............................................................................................................... 18,941 17,331 12,991 15,306 10,499 12,458 12,693 13,434 22,315

Realized losses on:

Securities sold........................................................................................................................... 31,379 47,629 39,884 48,124 100,585 63,624 64,136 98,959 113,744

Real estate mortgage loans.................................................................................................. 1,083 1,681 2,023 3,037 7,015 4,891 4,488 24,246 26,991

Other real estate....................................................................................................................... 662 656 712 886 1,644 1,850 1,609 2,186 2,541

All other assets.......................................................................................................................... 424 655 936 927 2,646 1,932 3,219 2,608 3,920

Transfers to valuation adjustment provisions1 on:

Securities..................................................................................................................................... 30,925 11,548 8,692 6,524 13,015 5,229 7,962 15,224 8,233

Real estate mortgage loans................................................................................................... 25,252 21,534 22,266 17,394 11,590 3,796 5,558 3,266 6,640

Other real estate....................................................................................................................... 76 74 57 122 97 127 189 39 548

All other assets.......................................................................................................................... 450 503 673 716 597 837 836 704 1,141

Npt addition s tn total su rplu s a rrn y n ts frnm nppratinn s 147 3K3 179 750 211,074 ??3.255 176,933 96,164 222,966 213,225 163,918

M em oranda

R eco veries cred ited to v alu a tio n ad ju s tm e n t p rovisions1 (n o t included in

re c o v erie s above) o n :

Securities.......................................................................................................................................... 1,658 3,389 756 341 1,277 2,726 391 1,946 3,719

Real estate mortgage loans.......................................................................................................

Other real estate .......................................................................................................

48 201 64 85 212 231

1

183

2

154

199

97

4

All other assets.............................................................................................................................. 35 14 13 24 46 89 116 141 73

R ealized losses charged to v alu atio n ad ju s tm e n t provisions1 (not in clu d ­

ed in re a liz ed losses above) on:

Securities......................................................................................................................................... 5,830 12,973 6,058 6,564 6,811 2,172 2,835 5,515 8,140

Real estate mortgage loans....................................................................................................... 501 5,136 765 841 1,220 4,040 1,072 1,052 1,460

Other real estate ............................... 6 190 118 257 204 186 134 115

All other assets.............................................................................................................................. 448 178 258 308 341 1,016 353 562 284

A v erag e assets and lia b ilitie s 2

Assets— to ta l 63,314,677 65,788,122 ....................... ................................................................................................. 38,152,221 41,180,616 44,609,410 48,466,656 51,399,898 55,173,023 59,674,026

Cash and due from banks.......................................................................................................... 794,362 786,298 768,719 891,727 838,855 953,843 825,767 715,778 778,430

United States Government obligations.................................................................................. 4,748,691 4,563,328 4,351,966 4,030,731 3,594,830 3,156,304 3,049,815 2,702,791 2,386,678

Other securities.............................................................................................................................. 5,151,555 5,115,637 5,057,794 5,069,343 5,153,130 6,312,183 8,135,834 9,334,079 9,898,447

Real estate mortgage loans....................................................................................................... 26,435,337 29,538,513 33,121,502 36,991,670 40,095,486 42,794,592 45,445,434 47,971,370 49,628,670

Other loans and discounts......................................................................................................... 441,994 543,458 588,196 672,117 842,896 1,003,436 1,175,629 1,462,572 1,903,163

Other real estate............................................................................................................................ 19,640 21,114 28,389 27,228 29,263 27,987 36,156 38,345 57,981

All other assets.............................................................................................................................. 560,642 612,268 692,844 783,840 845,438 924,678 1,005,391 1,089,742 1,134,753

L ia b ilitie s and surplus accoun ts— t o t a l............................................................................. 38,152,221 41,180,616 44,609,410 48,466,656 51,399,898 55,173,023 59,674,026 63,314,677 65,788,122

Total deposits................................................................................................................................. 34,350,820 37,175,285 40,334,274 43,985,749 46,590,719 50,247,915 54,534,572 57,834,645 59,862,839

Savings and time deposits............................................................................................. 34,070,511 36,870,906 39,997,217 43,609,062 46,172,242 49,805,468 54,053,723 57,304,999 59,296,823

Demand deposits............................................................................................................ 280,309 304,379 337,057 376,687 418,477 442,447 480,849 529,646 566,016

Other lia b ilitie s .. . .............................................................................................................. 537,630 588,622 660,037 653,614 764,445 730,825 793,930 888,123 1,162,859

Total surplus accounts................................................................................................................ 3,263,771 3,416,709 3,615,099 3,827,293 4,044,734 4,194,283 4,345,524 4,591,909 4,762,424

Number of active officers (end of period)............................................................................... 3,085 3,170 3,281 3,423 3,602 3,708 3,899 4,178 4,300

Number of other employees (end of period)......................................................................... 17,617 18,459 18,958 19,451 19,609 20,367 21,164 21,927 23,205

Number of banks (end of perio d )............................................................................................... 331 330 327 329 322 333 334 331 329

1 Includes "Valuation reserves” and "Other asset valuation provisions (direct write-downs).”

2 Averages of amounts for four consecutive official call dates beginning with end of the previous year and ending with the fall call of the current year.

224 FEDERAL DEPOSIT INSURANCE CORPORATION

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Table 119. RATIOS OF INCOME OF INSURED MUTUAL SAVINGS BANKS IN THE UNITED STATES (STATES AND OTHER AREAS), 1962-1970

Income item 1962 1963 1964 1965 1966 1967 1968 1969 1970

A m o unts p er $100 o f c u rre n t operating incom e

C u rren t o p eratin g incom e— to ta l $100.00

8.91

$100.00

7.8 9

$100.00

7 .09

$100.00

6 .1 8

$100.00

5 .47

$100.00

4.54

$100.00

4.16

$100.00

3.63

$100.00

Interest on U.S. Government obligations............... 3.08

Interest and dividends on other secu rities.. . . 11.76 10.46 9.57 9.8 3 8.67 10.44 12.90 14.07 14.83

1 nterest and discount on real estate motgage loans— net 76.49 78.82 80.34 81.57 82.16 80.65 78.38 77.30 76.49

Interest and discount on other loans and discounts— n e t .. 1.29 1.42 1.55 1.75 2.04 2.35 2.59 3.38 3.98

Income on other a ss e ts.. . .56 .51 60 78 69 87 .71 .62 .71

Income from service operations .99 .90 .85 .89 .97 1.15 1.26 1.00 .91

C u rre n t o p eratin g expense— t o t a l .......... 14.41 14.10 13.42 13.03 12.83 12.27 12.04 12.35 13.41

Salaries— officers................. 2.30 2.20 2.10 2.03 2 .00 1.93 1.86 1.87 1.90

Salaries and wages— other employees......................... 4.51 4.3 4 4.14 3.92 3.78 3.66 3.55 3.54 3.71

Pension, hospitalization and group insurance payments, and other employee benefits............................. 1.45 1.40 1.30 1.26 1.29 1.19 1.15 1.17 1.22

Fees paid to trustees and comm ittee m em bers........... . . . . .24 .23 .21 .20 .19 .17 .16 .15 .16

Occupancy, maintenance, etc., of bank premises (including taxes and recurring depreciation)— n e t..

Deposit insurance assessments...............................

1.67

.69

1.65

.65

1.60

.65

1.55

.66

1.49

.64

1.47

.61

1.46

.60

1.47

.59

1.57

.54

Furniture and fixtures (including recurring depreciation)..................................... .34 .39 .42 .43 .45 .48 .51 .55 .58

All other current operating expenses . . 3.21 3.2 4 3.00 2 .98 2.99 2.76 2.75 3.01 3.73

N e t c u rre n t o p e ra tin g in c o m e ... 85.59 85.90 85.58 86.97 87.17 87.73 87.96 87.65 86.59

Franchise and incom e tax e s — t o t a l................... 1.02 1.16 1.20 1.24 1.44 1.31 1.37 1.73 2.02

State franchise and income tax e s .. 1.00 .98 1.00 .93 1.21 1.17 1.21 1.33 1.37

Federal income taxes....................... .02 .18 .20 .31

85.73

.23

85.73

.14

86.42

.26

86.49

.40 .65

N e t c u rre n t op eratin g incom e a fte r ta x e s ................................................. 84.57 84.74 85.38 85.92 84.57

D ividends and in te re s t on deposits. 75.99 76.12 76.42 75.65 80.09 83.04 80.67 78.40 77.09

N et cu rren t op eratin g incom e a fte r tax e s and d iv id en d s............... 8.58 8.6 2 8.9 6 10.08 5 .64 3.38 5.82 7.52 7.48

A m ounts p er $100 of to tal assets2

Current operating income— to ta l.......................................... 4.60 4 .73 4.8 5 4.9 3 5 07 5.23

.64

4.39

.07

5.42

.65

4.77

.08

4.69

5.66 5.89

Current operating expenses— to ta l....................... .66 .67 .65 .64 .65

4.42

.07

70 79

Net current operating incom e............................. 3.94 4 .06 4 .20 4 .29 4.96

.10

5.10

Franchise and income taxes— to ta l................. .05 .05 .06 .06 .12

Net current operating income after taxes................ 3.89 4.01 4.14 4 .23 4 .35 4.52 4.86 4.98

Dividends and interest on deposits.............. 3.50 3 .60 3.71 3.73 4 .06 4.34 4 37 4.44 4.54

Net curr&nt operating income after taxes and dividends. . .39 .41 .43 .50 .29 .18 .32

.22

.42 .44

Nonrecurring income, realized profits and recoveries credited to profit and loss, and transfers from

valuation adjustment provisions— to ta l1............................... .28 .27 .24 .15 .34 .16 .17 .09

Nonrecurring expenses, realized losses charged to profit and loss, and transfers to valuation adjustment provisions— to ta l1................................................................ .28 .24 .20 .19 .29 .17 .17 .25 .28

Net additions to total surplus accounts from operations............................. .39 .44 .47 .46 .34 .17 .37 .34 .25

S pecial ra tio s 2

Interest on U.S. Government obligations per $100 of U.S. Government obligations........................................ 3.29 3.37 3.52 3.67 3.96 4 .15 4.42 4.81 5.01

Interest and dividends on other securities per $100 of other securities 4.01 3 .98 4.10 4.17 4 .39 4.77 5.14 5.40 5.80

Interest and discount on real estate mortgage loans per $100 of real estate mortgage loans 5.08 5.19 5.25 5.27 5.34 5.44 5.59 5.77 5.97

Interest and discount on other loans and discounts per $100 of other loans and discounts......................... 5.14 5.07 5.70 6.22 6.31 6.77 7.13 8.28 8.10

Dividends and interest on deposits per $100 of savings and time deposits.................... 3.92 4 .02 4.13 4 .15 4 .52 4.81 4.83 4.90 5.04

Net additions to total surplus accounts from operations per $100 of total surplus accounts........................ 4.52 5.25 5.84 5.83 4.37 2.29 5.13 4.64 3.44

Number of banks (end of p e rio d )................................................................................... 331 330 327 329 332 333 334 331 329

1 See table 118, note 1.

2 Based on average amounts of assets, deposits, or surplus accounts for four consecutive call dates (see table 118, note 2 ).

INCOME OF INSURED BANKS 225

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BANKS CLOSED BECAUSE OF FINANCIAL DIFFICULTIES;

DEPOSIT INSURANCE DISBURSEMENTS

Table 120. Number and deposits of banks closed because of financial difficulties,

1934-1970

Table 121. Insured banks requiring disbursements by the Federal Deposit Insurance

Corporation during 1970

Table 122. Depositors, deposits, and disbursements in insured banks requiring disbursements by the Federal Deposit Insurance Corporation, 1934-1970

Banks grouped by class of bank, year of deposit payoff or deposit assumption, amount of deposits, and State

Table 123. Recoveries and losses by the Federal Deposit Insurance Corporation on principal

disbursements for protection of depositors, 1934-1970

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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.

Noninsured bank failures

No noninsured bank failed in 1970.

For detailed data regarding noninsured banks which suspended

in the years 1934-1962, see the Annual Report for 1963, pp.

27-41. For 1963-1969, see table 120 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, 1970.

BANKS CLOSED AND DEPOSIT INSURANCE DISBURSEMENTS 227

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Table 120. NUMBER AND DEPOSITS OF BANKS CLOSED BECAUSE OF FINANCIAL DIFFICULTIES, 1934-1970

Number Deposits (in thousands of dollars)

Insured Insured

Year

Total

Noninsured 1 Total

Without

disbursements

by F D IC 2

With

disbursements

by FDIC 3

Total

Noninsured 1 Total

Without

disbursements

by FDIC 2

With

disbursements

by FDIC s

T o ta l................................. 625 131 494 8 486 1,023,013

37,332

61,973

35,364

583

961,040

1,968

13,404

27,508

33,613

59,406

157,772 1 AO Aon

18,726

19,186

12,525

1,915

5,695

347

41,147 919,893

1,968

13,319

27,508

33,285

59,406

157,772

142,429

18,726

19,186

12,525

1,915

5,695

347

1934.................................... 61 52 9 9

1935.................................... 32 6 26 1 25 13,987 85

1936.................................... 72 3 69 69 28,100 592

1937.................................... 83 7 76 2 74 34,141 528 328

1938.................................... 80 7 73 73 60,444 1,038

1939.................................... 72 12 60 60 160,211

142,787

2,439

1940.................................... 48 5 43 HO 358

1941.................................... 16 2 14 14 18,805 79

1942.................................... 23 3 20 20 19,541

12,525

1,915

5,695

494

355

1943 ....................... 5 5 5

1944.................................... 2 2 2

1945.................................... 1 1 1

1946.................................... 2 1 1 147 1

1947.................................... 6 1 5 5 7,207

10,674

9,217

167 7,040

10,674

6,665

5,513

3,408

7,040

10,674

5,475

1948.................................... 3 3 3

1949.................................... 9 4 5 1 4 2,552 1,190

1950.................................... 5 1 4 4 5,555 42 5,513

1951.................................... 5 3 2 2 6,464 3,056 3,408

1952.................................... 4 1 3 3 3,313 143 3,170 3,170

1953.................................... 5 1 4 2 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

11,689

11,953

11,329

11,953

1956 ........................... 3 1 2 2 360 11,329

1957.................................... 3 1 2 1 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

I960 .................... 2 1 1 1 7,965

10,611

1,035 6,930

8,936

6,930

1961 .............................. 9 4 5 5 1,675 8,936

1962 ....................... 3 2 1 1 4,231 1,220 3,011 3,011

1963 .................. 2 2 2 23,444

23,867

23,444

23,438

23,444

1964 .............................. 8 1 7 7 429 23,438

1965 ....................... 9 4 5 5 45,256 1,395 43,861 43,861

1966 ..................... 8 1 7 7 106,171

10,878

22,524

2,648 103,523 103,523

1967 4 4 4 10,878

22,524

10,878

1968 ....................... 3 3 3 22,524

1969 ................ 9 9 9 40,120

52,340

40,120 40,120

1970 7 7 7 52,340 52,340

1 For information regarding each of these banks, see table 22 in the Annual Report of the Federal Deposit Insurance Corporation for 1963, page 221 of the report for 1964, page 179 of the report for

1965, and page 183 of the 1966 report. 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 7 banks.

2 For information regarding these cases, see table 23 of the Annual Report for 1963.

3 For information regarding each bank, see the Annual Report for 1958, pp. 48-83 and pp. 98-127, and tables regarding deposit insurance disbursements in subsequent annual reports. Deposits are adjusted as of December 31, 1970 and exclude deposits for three cases requiring disbursements by the Corporation: 1 bank in voluntary liquidation in 1937 (payoff case no. 90); 1 noninsured bank in 1938

with insured deposits at date of suspension, its insurance status having been terminated prior to suspension (payoff case no. 162); and 1 foreign-owned bank closed in 1941 by order of the Federal Government (payoff case no. 234).

228 FEDERAL DEPOSIT INSURANCE CORPORATION

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Federal Reserve Bank of St. Louis
Table 121. INSURED BANKS REQUIRING DISBURSEMENTS BY THE FEDERAL DEPOSIT INSURANCE CORPORATION DURING .1970

Case

number Name and location

Class of

bank

Number of

depositors or

accounts1

Date of closing or

deposit assumption

First payment to

depositors or

disbursement by

FDIC

FDIC

disbursem ent2

Receiver or liquidating agent

or assuming bank

Deposit

payoff

289 State Bank of Prairie City

Prairie City, Iowa

NM 1,670 February 22, 1970 February 26,1970 $3,640,287 Federal Deposit Insurance Corporation

290 The Peoples State Savings Bank

Auburn, Michigan

NM 8,089 April 18, 1970 April 24, 1970 8,342,277 Federal Deposit Insurance Corporation

291 Farmers Bank of Petersburg

Petersburg, Kentucky

NM 474 June 25, 1970 June 29,1970 1,178,066 Federal Deposit Insurance Corporation

292 Eatontown National Bank

Eatontown, New Jersey

N 9,904 August 7, 1970 August 15,1970 13,530,172 Federal Deposit Insurance Corporation

Deposit

assumption

199 First State Bank of Bonne Terre

Bonne Terre, Missouri

NM 5,778 August 24,1970 August 31, 1970 5,545,396 Commerce Bank of Bonne Terre,

Bonne Terre, Missouri

200 City Bank of Philadelphia

Philadelphia, Pennsylvania

NM 1,940 September 3, 1970 September 11, 1970 8,851,685 Girard Trust Bank,

Philadelphia, Pennsylvania

201 Berea Bank and Trust Company

Berea, Kentucky

NM 3,312 October 8,1970 October 15,1970 5,298,811 Peoples Bank and Trust Co.

Berea, Kentucky

BANKS CLOSED AND DEPOSIT INSURANCE DISBURSEMENTS 229

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Table 121. INSURED BANKS REQUIRING DISBURSEMENTS BY THE FEDERAL DEPOSIT INSURANCE CORPORATION DURING 1970

—CONTINUED

Assets 1 Liabilities and capital accounts 1

Case

number Cash and

due from

banks

U.S. Government

obligations

Other

securities

Loans,

discounts.

and

overdrafts

Banking

house

furniture &

fixtures

Other

real

estate

Other

assets

Total

Deposits

Other

liabilities

Capital

stock

Other

capital

accounts

Deposit

payoff

289 424,522 56,172 16,851 3,422,540 17,000 0 193,193 4,130,278 3,896,924 0 50,000 183,354

290 2 ,144,095 624,000 414,636 7,410,394 228,923 47,417 7,325 10,876,790 9,940,084 0 300,000 636,706

291 277,527 75,500 33,100 649,939 1,249 5,343 30,903 1,073,561 1,258,647 0 25,000 -2 1 0 ,0 8 6

292 2,390,334 1,000,141 2,692,730 8,813,271 745,811 12,471 5,762,192 21,416,950 15,911,633 3,692,024 625,000 1,188,293

Deposit

assumption

199 325,540 495,398 346,141 6,545,433 248,603 24,370 17,220 8,002,705 7,118,202 79,456 280,000 525,047

200 2,661,154 100,250 95,000 7,298,049 239,281 0 381,561 10,775,295 8,838,859 4,693 875,000 1,056,743

201 209,012 714,511 654,264 4,210,363 83,279 0 0 5,871,429 5,375,007 0 125,000 371,422

1 Figures as determined by FDIC agents after adjustment of books of the bank immediately following its closing.

2 Includes disbursements made to December 31, 1970, plus additional disbursements estimated to be required in these cases.

230 FEDERAL DEPOSIT INSURANCE CORPORATION

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Federal Reserve Bank of St. Louis
Table 122. DEPOSITORS, DEPOSITS, AND DISBURSEMENTS IN INSURED BANKS REQUIRING DISBURSEMENTS BY THE

FEDERAL DEPOSIT INSURANCE CORPORATION, 1934-1970

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 1

Deposits 1

(in thousands of dollars)

Disbursements by FDIC 1

(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

cases 3

Assumption

cases 4

Payoff

cases5

Assumption

cases6

A ll b a n k s ................................................... 489 288 201 1,703,984 528,675 1,175,309 931,321 286,095 645,226 465,374 197,980 267,394 3,672 52,014

Class of banks

N ational.................................................. 90 33 57 357,427 97,622 259,805 223,273 102,121 121,152 114,751 56,525 58,226 1,233 7,607

State member F.R.S............................ 27 10 17 376,257 88,892 287,365 197,673 34,388 163,286 108,179 26,498 81,681 270 19,385

Nonmember F.R.S............................... 372 245 127 970,300 342,161 628,139 510,374 149,586 360,788 242,444 114,957 127,487 2,169 25,022

Y ea r

1934.......................................................... 9 9 15,767 15,767 1,968 1,968 941 941 43

1935.......................................................... 25 24 1 44,655 32,331 12,324 13,319 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 14,781 8,056 6,725 67 934

1937.......................................................... 75 50 25 130,387 74,148 56,239 33,349 14,960 18,389 19,161 12,045 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 20,667 235,694 142,429 5,657 136,773 74,134 4,895 69,239 89 17,237

1941.......................................................... 15 8 7 73,005 38,594 34,411 29,718 14,730 14,987 23,880 12,278 11,602 50 1,479

1942.......................................................... 20 6 14 60,688 5,717 54,971 19,186 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 11

1947.......................................................... 5 5 10,637 10,637 7,040 7,040 1,724 1,724 372

1948.......................................................... 3 3 18,540 18,540 10,674 10,674 2,990 2,990 200

1949...................................................... 4 4 5,671 5,671 5,475 5,475 2,552 2,552 166

1950.......................................................... 4 4 6,366 6,366 5,513 5,513 3,986 3,986 524

1951.......................................................... 2 2 5,276 5,276 3,408 3,408 1,885 1,885 127

1952.. . 3 3 6,752 6,752 3,170 3,170 1,369 1,369 195

1953.......................................................... 2 2 24,469 24,469 18,262 18,262 5,017 5,017 428

1954.......................................................... 2 2 1,811 1,811 998 998 913 913 145

1955.......................................................... 5 4 1 17,790 8,080 9,710 11,953 6,503 5,450 6,784 4,438 2,346 106 665

1956.......................................................... 2 1 1 15,197 5,465 9,732 11,329 4,702 6,628 3,458 2,795 663 87 51

1957.......................................................... 1 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

1961. . 5 5 8,301 8,301 8,936 8,936 6,200 6,200 154

1963.......................................................... 2 2 36,430 36,430 23,444 23,444 19,232 19,232 304

1 96 4 ... ................ 7 7 19,934 19,934 23,438 23,438 13,746 13,746 585

1965.......................................................... 5 3 2 15,817 14,363 1,454 43,861 42,889 972 11,391 10,918 473 600 123

1966.......................................................... 7 1 6 95,424 1,012 94,412 103,523 774 102,749 15,075 735 14,340 25 1,142

1967.......................................................... 4 4 4,729 4,729 10,878 10,878 8,125 8,125 217

1968 ...................................................... 3 3 12,850 12,850 22,524 22,524 5,284 5,284 650

1969.......................................................... 9 4 5 27,370 6,540 20,830 40,133 9,011 31,122 37,039 7,631 29,408 215 2,349

1970.......................................................... 7 4 3 31,167 20,137 11,030 52,419 31,087 21,332 46,379 26,690 19,689 373 220

BANKS CLOSED AND DEPOSIT INSURANCE DISBURSEMENTS 231

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Table 122. DEPOSITORS, DEPOSITS, AND DISBURSEM ENTS IN INSURED BANKS REQ UIRING DISBURSEM ENTS BY TH E 

FEDERAL DEPOSIT INSURANCE CORPORATION, 1934-1970— CONTINUED 

BANKS GROUPED BY CLASS OF BANK, YEAR OF DEPOSIT PAYOFF OR DEPOSIT ASSUMPTION, AMOUNT OF DEPOSITS, AND STATE

Number of banks Number of depositors 1

Deposits 1

(in thousands of dollars)

Disbursements by FDIC 1

(in thousands of dollars)

Classification Total Payoff

cases

AssumpTotal Payoff

cases

Assumption

cases

Total Payoff

cases

Assump­ Principal disbursements

Advances and

expenses 2

tion

cases

tion

cases

Total Payoff

cases 3

Assumption

cases 4

Payoff

cases 5

Assumption

cases6

Banks w ith deposits of—

Less than $100,000.............................

$100,000 to $250,000..........................

107

109

83

86

24

23

38,347

83,370

29,695

65,512

8,652

17,858

6,418

17,759

4,947

13,920

1,471

3,839

5,000

12,906

4,309

11,554

691

1,352

88

209

154

173

611

2,330

3,680

6,352

6,726

6,327

25,339

320

$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

398

479

748

556

497

531

$500,000 to $1,000,000....................... 70 34 36 159,587 73,495 86,092 53,285 25,681 27,604 34,981 19,886 15,095

$1,000,000 to $2,000,000................... 56 20 36 208,886 69,402 139,484 74,927 26,353 48,574 43,016 20,817 22,199

$2,000,000 to $5,000,000...................

$5,000,000 to $10,000,000.................

$10,000,000 to $25,000,000...............

46

24

9

18

5

4

28

19

5

274,375

256,796

222,591

80,956

40,754

99,093

193,419

216,042

123,498

151,139

161,285

151,639

59,101

37,655

65,341

92,038

123,630

86,297

85,370

80,089

83,242

42,092

26,139

52,974

43,278

53,950

30,268

$25 000,000 to $50,000,000............... 5 1 4 284,809 12,481 272,328 199,594 40,176 159,418 95,153 9,660 85,493

ecn Ann nnn tn tin n nnn nnn 1

4

1

2

83,044

9,170

83,044

7,111

92,960

6,170

92,960

2,185

10,000 10,000 «pOUyUUUyUUU 10 ^iuuyuuu,uuu.............

S tate

Alabama .................................. 2 2,059 3,985 3,557 2,562 995 81

43

626

40

91

48

754

754

Arkansas................................................. 7 6 1 5,446 4,541 905 2,538 1,942 596 1,720 1,576 144

12,701

3,524 C a lifo r n ia .............................................. 4 3 1 21,059 17,890 3,169 47,298 46,220 1,078 25,607 12,906

Colorado ..................... 4 2 2 8,810 1,382 7,428 11,052 2,262 8,790 4,462 938

2 2 5,379

14,082

5,379

1,725

1,526 1,526 1,242 1,242 8

Florida..................................................... 5 2 3 12,357 17,665 2,668 14,997 6,163 2,145

1,551

1,493

22,003

3,096

4,018

69

60

33

29

549

33 Georgia.................................................... 10

2

21

8

2

9

2 9,410

2,451

81,193

8,797

2,451

43,274

613 1,959

1,894

52,563

1,870

1,894

26,879

89 1,620

1,493

29,985 Idaho........................................................

Illinois ................................................... 12 37,919 25,684 7,982

3,101

378

39

791

384 Indiana ......................................... 20 15 5 30,006 12,549 17,457 13,593 3,932 9,662 6,197

Iowa ...................................... 8 5 3 17,725 5,736 11,989 13,376 8,358 5,018 7,515 6,444

3,601

4,506

668

1,071

492

7,425

106

54

86

10

113

72

263 Kansas..................................................... 10 6 4 6,715 3,824 2,891 5,052 4,357 694 4,093

Kentucky................................................ 25

3

1

19

3

6 39,925

6,087

9,710

22,567

18,964

6,087

20,961 15,522

1,652

5,450

5,212

1,652

10,309 11,931

668 Louisiana................................................

Maine 1 9,710 5,450 2,346 2,346 665

Maryland ......................... 5 2 3 6,643 15,924 4,566 828 3,738 3,109 735 2,374

1,564

9 371

1,030 Massachusetts...................................... 2

12

5

2 9,046

125,711

2,650

9,046

115,538

3,019 3,019 1,564

Michigan..................................................

M in n es o ta .............................................

5

5

7 10,173

2,650

119,834

818

11,334

818

108,499 27,214

640

9,654

640

257

17,560 156

17

5

1,193

Mississippi............................................. 3 3 1,651 1,651 334 334 257

232 FEDERAL DEPOSIT INSURANCE CORPORATION

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Federal Reserve Bank of St. Louis
M issouri..............

M ontana..............

Nebraska............

New Hampshire

New Jersey........

New Y o rk...........

North C arolina..

North D a ko ta ...

O hio......................

Oklahoma...........

Oregon.................

Pennsylvania...

South Carolina.

South Dakota. . .

Tennessee..........

T exas...................

U tah.....................

Verm ont..............

V irginia...............

Washington___

West Virginia . .

Wisconsin...........

Wyoming.............

29

47,055

1,500

6,069

1,780

532,467

269,621

10,408

14,103

13,751

27,650

3,439

168,834

1,848

12,515

12,358

59,132

3,254

11,057

35,715

4,179

8,346

26,898

3,212

29,478

849

6,069

i i3 j 7oi

28,440

3,677

6,760

7,585

20,149

1,230

43,828

403

11,412

9,993

40,916

8,687

12,638

8,346

18,739

17,577

651

" U 86

418,766

241,181

6,731

7,343

6,166

7,501

2,209

125,006

1,445

1,103

2,365

18,216

3,254

2,370

23,077

4,179

8,159

3,212

18,225

1,095

8,145

296

7,240

215

8,145

296

10,985

880

13,214

639

5,008

117

6,009

186

5,008

210,542 49,040 161,502 95,655 39,998

145,439

3,266

3,830

7,223

18,920

13,286

1,421

1,552

2,345

11,053

132,153

1,845

2,278

4,877

7,867

67,997

2,387

2,656

2,098

10,275

10,836

1,156

1,397

1,610

7,936

2,670

84,595

849

2,987

1,942

1,368

14,340

136

2,862

1,620

1,302

70,255

714

126

322

1,948

60,144

274

2,411

1,278

986

10,133

136

2,388

1,164

52,831

5,992

3,725

17,778

1,538

2,006

9,512

2,033

26,398 26,432

5,992

350

10,127

1,538

3,545

2,033

33,148

3,248

3,445

8,263

935

19,342

3,375

7,652

3,259

3,867

2,006

5,966

1,458

7,188

202

1,458

5,096

7,205

453

117

55,657

57,161

1,231

1,259

488

2,339

962

50,011

138

23

114

13,806

3,248

186

4,396

935

2,092

202

99

6

46

319

32

23

24

7

178

11

75

' 26

28

635

"21

295

11

54

432

21

20,154

10,847

179

203

44

306

81

9,585

10

9

25

1,332

178

22

505

512

430

19

1 Adjusted to December 31,1970. In assumption cases, number of depositors refers to number of deposit accounts. > . . . , , .

2 Excludes $481 thousand of nonrecoverabie insurance expenses in cases which 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 Includes estimated additional disbursements in active cases.

4 Excludes excess collections turned over to banks as additional purchase price at termination of liquidation.

5 These disbursements are not recoverable by the Corporation; they consist almost wholly of field payoff expenses. J

6 Includes advances to protect assets and liquidation expenses of $50,613 thousand, all of which have been fully recovered by the Corporation, and $1,398 thousand of nonrecoverabie expenses.

7 No case in 1962 required disbursements. Disbursement totals for each year relate to cases occurring during that year, including disbursements made in subsequent years.

Note: Due to rounding differences, components may not add to totals.

BANKS CLOSED AND DEPOSIT INSURANCE DISBURSEMENTS 233

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Federal Reserve Bank of St. Louis
Table 123. RECOVERIES AND LOSSES BY THE FEDERAL DEPOSIT INSURANCE CORPORATION ON PRINCIPAL

DISBURSEM ENTS FOR PROTECTION OF DEPOSITORS, 1934-1970

(Amounts in thousands of dollars)

Liquidation

status and

year of deposit payoff

or deposit

assumption

All cases Deposit payoff cases Deposit assumption cases

Num ber

of

banks

Principal

disbursements

Recoveries

to Dec.

31, 1970

Estimated

additional

recoveries

Number

of

banks

Principal

disbursements 2

Recoveries

to Dec.

31, 1970

Estimated

additional

recoveries

Number

of

banks

Principal

disbursements 3

Recoveries

to Dec.-

31, 1970

Estimated

additional

recoveries

T o ta l...........

S ta tu s

Active.

Term inated

Y e a r 4

193 4 

193 5 

193 6 

193 7 

193 8 

193 9 

194 0 

194 1 

194 2 

194 3 

194 4 

194 5 

194 6 

194 7 

194 8 

194 9 

195 0 

195 1 

195 2 

195 3 

195 4 

195 5 

195 6 

195 7 

195 8 

195 9 

196 0 

196 1 

196 3 

196 4 

196 5 

196 6 

196 7 

196 8 

196 9 

197 0 

49

440

465,372

2 01 ,83 0

2 63 ,54 3

941

8 ,891

14,781

19,161

3 0,4 79

6 7,7 70

7 4,1 34

23,880

10,825

7 ,172

1,503

1 ,768

265

1,724

2 ,9 9 0

2 ,552

3 ,9 8 6

1 ,885

1 ,369

5 ,017

913

6 ,7 8 4

3 ,4 5 8

1,031

3 ,0 2 6

1,835

4 ,7 6 5

6,200

19,232

13,743

11,391

15,075

8 ,125

5,2 8 4

3 7,0 39

4 6,3 79

362,993

126,693

236,300

734

6,202

12.325

15,610

2 8,0 55

6 0,6 18

7 0,3 38

23,2 90

1 0,136

7 ,0 4 8

1 ,462

1 ,768

265

1,6 4 5

2,3 4 9

2 ,1 8 3

2,6 0 1

1 ,885

577

5,0 1 7

654

6 ,5 5 4

3 ,1 6 3

1,031

2 ,9 9 8

1,738

4,7 6 5

4 ,6 9 8

17,140

11,168

5 ,9 6 9

5,121

5,561

4 ,5 4 3

25,4 55

8 .3 2 5

39.565

3 9.5 65

1

1 ,542

891

210

1,464

1,028

196

9,9 8 5

24,176

62,815

35,572

27,244

207

2,683

2,4 5 5

3 ,549

2 ,425

7,153

3,796

591

67

641

369

1,385

258

230

240

......... 28

97

1,501

550

1,686

5,214

8,491

1,535

546

1 ,600

13,875

25

263

197,979

88,870

109,109

941

6,026

8 ,056

12,045

9 ,092

26,196

4 ,895

12,278

1,612

5,500

404

4 ,438

2.795

1,031

2.796

1,835

4,765

6,200

19,232

13,743

10,918

735

8,125

’ 7,631

26,690

137,212

4 4,4 69

9 2,743

734

4 ,2 7 4

6 ,595

9 ,5 2 0

7 ,908

20,399

4 ,3 1 3

12,065

1 ,320

5 ,3 7 6

363

24,921

4 ,208

2,5 0 0

1,031

2 ,768

1 ,738

4,7 6 5

4 ,6 9 8

17,140

11,168

5 ,652

611

5,561

’ 2,358

145

1

1,542

891

209

104

1,028

' 4,323

16,769

35,846

19,480

16,367

207

1,751

1,460

2 ,524

1,184

5,798

582

213

292

123

40

230

240

1,501

550

1,686

5 ,060

20

1 ,535

' ' 950

9 ,775

24

177

112,960

154,434

2 ,865

6 ,7 2 5

7,116

21,387

41,574

69,239

11,602

9,213

1,672

1,099

1,768

265

1,724

2 ,990

2,552

3 ,986

1,885

1 ,369

5,017

913

2,3 4 6

663

473

14,340

5,284

29,408

82,224

143,557

1,928

5 ,7 3 0

6 ,0 9 0

20,147

40,219

66,025

11,225

8,816

1,672

1,099

1,768

265

1,645

2,349

2 ,183

2,601

1,885

577

5,017

654

2 ,346

663

317

4 ,510

4 ,543

23,097

1

1,360

196

5,662

16,092

10,877

932

995

1,025

1,241

1,355

3,214

378

396

67

641

369

1,385

154

8,471

546

650

1 Includes 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 Includes estimated additional disbursements in active cases.

3 Excludes excess collections turned over to banks as additional purchase price at termination of liquidation.

4 No case in 1962 required disbursements.

Note: Due io rounding differences, components may not add to totals.

234 FEDERAL DEPOSIT INSURANCE CORPORATION

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INDEX

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237

Absorptions:

Of insured banks requiring disbursements by FDIC. See 

Banks in financial difficulties.

Of operating banks, 1970 ............................... 8-9, 11-12, 229-230

Of operating banks approved by FDIC, 1970 ............ 8-9, 11, 23-129

Of operating banks denied by FDIC, 1970 ............. ......... 130-143

Regulation of ............................................................... 8-9

Admission of banks to insurance. See also Applications from banks:

Applications for, 1970 .................................................... 7-8

Number of banks admitted, by class of bank, 1970 .............. 176-177

Applications from b a n k s..........................................................7-9

Areas outside continental United States, banks and branches located in:

Number, December 31, 1970 ................................ 179, 180, 188

Assessments for deposit insurance............................................. 15-18

Assets and liabilities of FDIC ...................................................... 16

Assets, liabilities, and capital of banks. See also Deposits:

Commercial banks:

Changes during 1970.....................................................xi

Grouped by insurance status,

June 30, 1970, and December 31, 1970.................... 192-199

Sources of data ........................................................191

Insured commercial banks:

Amounts, December call dates, 1961, 1966-1970 ........... 202-204

Amounts, June 30, 1970, and December 31, 1970

by class of bank.................................................192-199

Major categories, average, 1962-1970 .............................. 215

Percentage distribution, by size of bank, 1970 .............. 209-211

Percentages of items, by size of bank, 1970 ....................... 207

Mutual savings banks:

Changes during 1970.....................................................xi

Grouped by insurance status, June 30, 1970, and December

31,1970 ........................................................ 200-201

Sources of data ........................................................191

Insured mutual savings banks:

Amount, December call dates, 1961, 1966-1970 ........... 205-206

Major categories, average, 1962-1970 ............................... 224

Percentages of items, by size of bank, 1970 ....................... 208

Assets purchased by FDIC from banks in financial difficulties...........3, 6, 7

Assumption of deposits of insured banks with financial aid of FDIC.

See also Banks in financial difficulties ............................. 3-4, 228-230

Attorney General of the United States, summary

reports on absorptions........................................................ 27-141

Audit of F D IC ........................................................................ 20

Bad-debt reserves. See Valuation reserves.

INDEX

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

Bank Holding Company Act Amendments of 1970 ........................... 147

Bank ownership, changes in .................................................... 11-12

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 .......................................... 229-230

Deposit size of ...................................................... 3, 232

Deposits protected, 1934-1970 ............................. 6, 231-233

Disbursements by FDIC, 1934-1970 ....................... 7, 231-234

Loans made and assets purchased by F D IC ............................7

Location by State, 1934-1970 ................................ 232-233

Losses incurred by depositors........................................... 6

Losses incurred by FDIC ..........................................7, 234

Name and location of, 1970 .............................................3

Number of, 1934-1970 ................................................228

Number of deposit accounts, 1934-1970 .................... 231-233

Recoveries by FDIC on assets acquired, 1934-1970 ...........7, 234

Noninsured banks:

Number and deposits of commercial banks closed,

1934-1970 ..................................................... 227-228

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, 1970 ..................................... 8

Examination of, 1969 and 1970 .............................................. 7

Number of. See Number of banks and branches.

Brokered funds:

FDIC statement of policy................................................... 169

Involved in bank failures in 1970 .............................................3

Call reports. See Assets, liabilities, and capital of banks;

Reports from banks.

Capital of banks. See Assets, liabilities, and capital of banks; Banks in 

financial difficulties; Income of insured commercial banks;

Examination of insured banks.

Certificates of deposit. See also Deposits...............................xi, 164-168

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 ........................................................11, 176-177

Income of insured commercial banks, 1970 ....................... 217-218

Insured banks requiring disbursements by FDIC, 1934-1970 ......... 231

Number of banks and banking offices, 1970............ 176-177, 180-188

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Federal Reserve Bank of St. Louis
INDEX 239

Number of banks and deposits............................................. 189

Classification of banks........................................................174-175

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.

Comptroller of the Currency.................................. iv, v, 9, 13, 14, 160

Consolidations. See Absorptions.

Credit, bank. See Assets, liabilities, and capital of banks.

Credit card legislation in 1970 .....................................................155

Currency and Foreign Transactions

Reporting Act .................................................................... 153

Demand deposits. See Assets, liabilities, and capital of banks; Deposits.

Deposit insurance coverage .............................................. xii-xiii, 20

Deposits insured by FDIC:

Estimated insured deposits, December 31, 1934-1970 .................. 20

Increase in maximum per depositor ....................................xii, 20

Survey of, on June 30, 1970........................................ xii-xiii, 13

Deposits of: See also Assets, liabilities, and capital of banks:

Banks closed because of financial difficulties, 1934-1970 ..............228

Commercial banks:

By insurance status and type of bank, and type of account,

June 30, 1970 ................................................ 192-195

By insurance status and type of bank, and type of account,

December 31, 1970 .......................................... 196-199

Insured commercial banks:

Average demand and time deposits, 1962-1970 ................... 215

By class of bank, December 31, 1970 ............................... 189

By deposit size of bank, December 31, 1970 ...................... 189

December call dates, 1961, 1966-1970 ............................. 203

Mutual savings banks, by insurance status, June 30, 1970, and

December 31, 1970 ...................................................... 201

Insured mutual savings banks:

Average demand and time deposits, 1962-1970 .................. 224

December call dates, 1961, 1966-1970 ............................. 206

Deposits, number of insured commercial banks with given ratios of

demand to total deposits ...................................................... 211

Directors of FDIC. See Federal Deposit Insurance Corporation.

Disbursements. See Banks in financial difficulties.

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.

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

Employees:

FDIC .......................................................................... 15

Insured commercial banks,

number and compensation, 1962-1970 .......................... 214-215

Insured mutual savings banks, number and

compensation, 1962-1970 ........................................ 223-224

Examination of insured banks:

By FDIC, 1970 ............................................................ 4-5, 7

Regions and regional directors ............................................. vi

Expenses of banks. See Income of insured commercial banks;

Income of insured mutual savings banks.

Expenses of FDIC ................................................................15-19

Failures, See Banks in financial difficulties.

Fair Credit Reporting Act...........................................................156

Federal Deposit Insurance Corporation:

Actions on applications ................................................ 7-9, 11

Assessments on insured banks........................................... 15-19

Audit ............................................................................ 20

Banks examined by, and submitting reports t o .................. 4-5, 12-13

Borrowing power .............................................................. 15

Capital stock.................................................................... 19

Coverage of deposit insurance, banks participating............ xii, xiii, 20

Delegations of authority by Board of Directors......................9, 170

Deposit insurance fund (surplus) .......................................15-20

Directors (members of the Board) .................................. v, 14-15

Disbursements for protection of depositors........ 3-4, 7, 229, 231-234

Divisions.................................................................... iv, 15

Employees ......................................................................15

Examination of banks........................................................4-5

Financial statements, 1970 .............................................. 14-18

Income and expenses, 1933-1970 ........................................... 19

Insured banks requiring disbursements by. See Banks in 

financial difficulties.

Loans to, and purchase of assets from, insured banks......................7

Losses incurred, 1934-1970 ................................................... 7

Methods of protecting depositors.......................................3-4, 6

Officials .......................................................................... v

Organization.................................................................... iv

Payments to insured depositors ............................. 3-4, 6, 229-233

Publications ................................................................12-13

Recoveries ................................................................. 7, 234

Regions...........................................................................vi

Regulation of bank securities........................................... 10-11

Regulation of interest rates........................................... 164-170

Reports from b anks ...................................................... 11-13

Research......................................................................... 13

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Federal Reserve Bank of St. Louis
INDEX 241

Reserve for losses on assets acquired....................................15-16

Rules and regulations..................................................164-171

Sources and application of funds ........................................... 18

Supervisory activities ...................................................... 4-14

Survey of accounts and deposits....................................xiif 13, 20

Training programs......................................................... 13-14

Federal Home Loan Bank Board ..................................... 160, 164, 166

Federal legislation, 1970 ..................................................... 147-164

Federal Reserve authorities...... 9, 13, 147-150, 156, 159-160, 164, 167-169

Federal Reserve member banks. See Class of bank, banking data 

presented by.

Federal Savings and Loan Insurance Corporation...................151, 153, 160

Financial recordkeeping and reporting........................................... 151

Foreign governments, time deposits o f..................................... 168-169

Foreign loans, margin requirements on ..........................................159

General Accounting Office........................................................... 20

Housing and Urban Development Act of 1970 .................................. 160

Income of F D IC ...................................................................15-19

Income of insured commercial banks:

Amounts of principal components:

Annually, 1962-1970 ........................................... 214-215

By class of bank, 1970 .......................................... 217-218

By size of bank, 1970 ........................................... 219-220

Classification of income data.........................................212-213

Ratios of income items:

Annually, 1962-1970 ................................................. 216

By size of bank, 1970 ........................................... 221-222

Sources of data .............................................................. 213

Income of insured mutual savings banks:

Amounts of principal components, 1962-1970 ................... 223-224

Ratios of income and expense items, 1962-1970 ....................... 225

Sources of data .............................................................. 213

Insolvent banks. See Banks in financial difficulties.

Insurance status, banks classified by:

Assets and liabilities of, June 30,1970, and December 31,1970.. .192-201

Changes in number of, 1970 ........................................ 176-177

Class of bank and size ...................................................... 189

Income of insured commercial banks...............................217-218

Percentage of banks insured, by State, December 31, 1970 .... 180-188 

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; Deposit insurance 

coverage.

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

Insured State banks members of the Federal Reserve System. See Class 

of bank, banking data presented by.

Interest rates paid by banks:

Deposits, information on computation of interest and dividends ... .170

Maximum rates........................................ 164-168, 170-171

Survey of, by FDIC .....................................................13

Obligations other than deposits, authority to regulate................. 168

Investment Company Amendments Act of 1970 ...............................163

Investments. See Assets, liabilities, and capital of banks; Assets and 

liabilities of FDIC; Banks in financial difficulties.

Legislation relating to deposit insurance and banking:

Federal, enacted in 1970 ............................................. 147-164

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 F D IC .................................................................... 7, 234

On loans, reserves for. See Valuation reserves.

Provision for, in insured banks, 1962-1970 ..............214-216, 223-225

Margin requirements on foreign loans.......................................159-160

Massachusetts, regulation of interest rates paid by mutual savings banks ..165-168 

Mergers. See Absorptions.

Methods of tabulating banking data. See Banking data, classification of.

Mutual savings banks. See Assets, liabilities, and capital of banks;

Deposits; Income of insured banks; Number of banks and branches.

National banks. See Class of bank, banking data presented by.

New banks, 1970 .................................................................... 176

Noninsured banks. See also 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.

Number of banks and branches:

Banks:

By insurance status, type of bank, number of branches, and

State, December 31, 1970 .................................... 180-188

By insurance status and type of bank, June 30, 1970, and

December 31, 1970 ............................... 176, 195, 199, 201

Changes during 1970..........................................xi, 176-179

Branches:

By insurance status and type of bank, December 31,1970...... 177

By insurance status, type of bank, and State, December 31,

1970 180-188

Changes during 1970..........................................xi, 177-179

Insured commercial banks:

December call dates, 1962-1970 ..................................... 215

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Federal Reserve Bank of St. Louis
INDEX 243

December 31, 1970, by class of bank and deposit size of bank. . .189

December 31, 1970, by State....................................180-188

Distributed by capital ratios and distribution of assets and

deposits, December 31, 1970.................................... 209-211

Insured mutual savings banks:

December call dates, 1962-1970.......................................206

December 31, 1970, by deposit size of bank.........................189

Mutual savings banks, by State, December 31, 1970 .............. 180-188

Noninsured banks by State, December 31, 1970................... 180-188

Unit banks, by insurance status and State, December 31, 1970. . 180-188 

Obligations of banks. See also Assets, liabilities, and capital of banks;

Deposits............................................................................ 168

Officers of insured banks. See Employees.

Officials of F D IC ....................................................................... 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.

Premiums, given to depositors, statement of policy......................169-170

Protection of depositors. See Banks in financial difficulties; Deposit 

insurance coverage.

Puerto Rico, research report published by F D IC ................................ 13

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, F D IC ........................................................................ vi

Reports from banks ..............................................................11-13

Reserves:

Of FDIC, for losses on assets acquired...................................... 16

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.

Salaries and wages:

F D IC ............................................................................ 17

Insured banks. See Income of insured commercial banks; Income of 

insured mutual savings banks.

Savings and loan associations ...................... 151, 153, 160-161, 164, 166

Savings and time deposits. See also Deposits............ , ............ xi, 164-170

Securities. See Assets, liabilities, and capital of banks; Assets and 

liabilities of FDIC; Banks in financial difficulties.

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

Securities, bank, regulation o f ...................................................10-11

Securities Exchange Act of 1934, amendments t o .............................161

Securities, registration and reporting of bank.................................10-11

Size of bank, data for banks classified by amount of deposits:

Assets and liabilities, percentages of, insured banks, 1970 .... 207-208

Banks requiring disbursements by FDIC, 1934-1970 .................. 232

Income data of insured commercial banks, 1970 ................ 219-220

Income ratios of insured commercial banks, 1970 .............. 221-222

Number and deposits of all banks ........................................189

Number of employees of insured commercial banks, 1970 ........... 220

Number of insured commercial banks, 1970 ........................... 220

Number of insured commercial banks, grouped by ratios of selected

items to assets and deposits, December 31, 1970 .............. 209-211

State, banking data classified by:

Changes in commercial banks and branches, 1970 ................ 178-179

Disbursements, deposits, and depositors in insured banks requiring

disbursements by FDIC, 1934-1970............................... 232-233

Number of banks and branches, by class of bank and type of office,

December 31, 1970 ................................................. 180-188

Percentage of banks insured, December 31, 1970 ................ 180-188

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 banks. See also Examination of insured banks:

By F D IC .....................................................................4-5, 7

Federal legislation .....................................................147-164

Suspensions. See Banks in financial difficulties.

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................ 5-8

Time and savings deposits. See also Deposits......................... xi, 164-170

Trust assets of insured commercial banks, report................................ 13

Truth in Lending Act, sections added...................................... 155-156

Unit banks, by insurance status and State, December 31, 1970 ....... 180-188

Valuation reserves. See also Assets, liabilities, and capital of banks:

Amounts held, June 30,1970, and December31,1970 .. 195,199, 200-201

Amounts held, December call dates, 1962-1970 .................. 203, 205

Violations of law or regulations, banks charged w ith ......................... 4-6

Digitized for FRASER 

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Federal Reserve Bank of St. Louis