ANNUAL REPORT

OF THE

FEDERAL DEPOSIT INSURANCE CORPORATION

FOR THE YEAR ENDED 

DECEMBER 31,1942

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Federal Reserve Bank of St. Louis
DIRECTORS

of the

FEDERAL DEPOSIT INSURANCE CORPORATION

Leo T . Cro w ley

Chairman

P h il l ip s L e e Goldsborough

P r e st o n D e la n o

Comptroller of the Currency

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Federal Reserve Bank of St. Louis
LETTER OF TRANSMITTAL

F e d e r a l D e p o s it I n s u r a n c e C o r p o r a tio n ,

Washington, D. C., August k, 19^3.

SIR: Pursuant to the provisions of subsection (r) or section

12B of the Federal Reserve Act, as amended, the Federal Deposit

Insurance Corporation has the honor to submit its annual report.

Respectfully,

L e o . T . C r o w le y , Chairman.

T h e P r e sid e n t of t h e S e n a t e

T h e Sp e a k e r of t h e H o u se of R e p r e se n t a t iv e s

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Federal Reserve Bank of St. Louis
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Federal Reserve Bank of St. Louis
CONTENTS

Page

PART ONE

OPERATIONS AND POLICIES OF THE CORPORATION

Banking and deposit insurance................................................................................... 3

Protection of depositors................................................................................................ 9

Supervisory activities of the Corporation................................................................ 13

Legal developments........................................................................................................ 16

Operating statement of the Corporation.................................................................. 21

PART TWO

DEPOSIT INSURANCE AND BANKING DEVELOPMENTS

Assets, liabilities, and capital of insured commercial banks................................ 31

Earnings of insured commercial banks..................................................................... 35

Insured mutual savings banks.................................................................................... 41

PART THREE

SPECIAL REPORTS

N ote................................................................................................................................... 45

PART FOUR

LEGISLATION, REGULATIONS, AND INSTRUCTIONS

Legislation relating to insured banks or the Corporation.................................... 49

Executive Order.............................................................................................................. 53

Regulations of the Corporation.................................................................................. 54

Statement of policy by bank supervisory authorities........................................... 55

PART FIVE

STATISTICS OF BANKS AND DEPOSIT INSURANCE

Explanatory notes.......................................................................................................... 59

Number, offices, and deposits of operating banks................................................. 68

Assets and liabilities of operating banks.................................................................. 78

Analysis of examinations of insured commercial banks........................................ 82

Earnings of insured banks............................................................................................ 92

Suspensions, receiverships, and mergers..................................................................... 96

V

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LIST OF TABLES

Page

PART ONE

OPERATIONS AND POLICIES OF THE CORPORATION

P r o t e c t io n of D e p o s it o r s:

1. D ep ositor recoveries and losses in insured banks in financial difficulties, 1934-1942................................................................................. 10

2. Disbursements of the Corporation in connection with banks in financial difficulties, 1934-1942................................................................ 11

3. Payment of deposits of insured banks placed in receivership, 1934-1942....................................................................................................... 11

Su p e r v is o r y a c t iv it ie s of t h e C o r p o r a t io n:

4. Action to terminate insured status of banks charged with engaging in unsafe or unsound practices or violations of law or regulations, 1936-1942....................................................................................................... 13

5. Unsafe or unsound banking practices and violations of law or regulations charged against 11 banks by the Corporation during 1942................................................................................................................. 14

Op e r a t in g st a t e m e n t of t h e C o r p o r a t io n:

6. Officers and employees of the Corporation, December 3 1 ,1 9 4 2 .... 21

7. Income and expenses of the Federal Deposit Insurance Corporation since beginning operations......................................................................... 22

8. Income and expenses of the Federal Deposit Insurance Corporation, calendar year 1942...................................................................................... 23

9. Assets and liabilities of the Federal Deposit Insurance Corporation, December 31, 1942, and December 31, 1941........................................ 24

10. Federal Deposit Insurance Corporation balance sheet, June 30, 1942—from auditors’ report..................................................................... 26

PART TWO

DEPOSIT INSURANCE AND BANKING DEVELOPMENTS

A s s e t s, l ia b il it ie s, a n d c a pit a l of in s u r e d com m ercial b a n k s:

11. Changes during 1942 in assets of insured commercial banks........... 31

12. Classification of assets of insured commercial banks, examinations in 1939-1942.................................................................................................. 32

13. Distribution of insured commercial banks examined in 1942 ac­ cording to substandard assets ratio, examinations in 1941 and 1942 33

14. Percentage distribution of number and deposits of insured com­ mercial banks according to net sound capital ratio, examinations in 1938-1942.................................................................................................. 34

15. Distribution of number and deposits of insured commercial banks according to ratio of fixed and substandard assets to net sound capital, examinations in 1942................................................................... 35

vi

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Page

E a r n in g s of in s u r e d com m ercial b a n k s:

16. Earnings, expenses, and taxes of insured commercial banks, 1934-1942....................................................................................................... 36

17. Net earnings, charge-offs, profits, and dividends of insured com­ mercial banks, 1934-1942........................................................................... 36

18. Net earnings and net profits per $100 of total capital accounts of insured commercial banks, 1941 and 1942............................................ 37

19. Amounts and rates of income received, and rate of interest paid, by insured commercial banks, 1934-1942.............................................. 38

20. Average rates of net profits on total capital accounts of insured commercial banks grouped by rate of interest paid on time and savings deposits, 1942................................................................................. 39

21. Rates of charge-offs on assets of insured commercial banks, 1934-1942....................................................................................................... 40

PART FIVE

STATISTICS OF BANKS AND DEPOSIT INSURANCE

N u m b e r, o f f ic e s, a n d d e p o sit s of o pe r a t in g b a n k s:

101. Analysis of changes in number and classification of operating banking offices in the United States and possessions during 1942.. 68

102. Number of operating banking offices, December 31, 1942 Grouped according to insurance status and class of bank and by type of office in each State and possession........................................... 70

103. Number and deposits of operating commercial and mutual savings banks, December 31, 1942 Banks grouped according to insurance status in each State and possession................................................................................................... 76

A s se t s a n d l ia b il it ie s of o p e r a t in g b a n k s:

104. Summary of assets and liabilities of operating banks in the United States and possessions, June 30, 1942 Banks grouped according to insurance status and type of bank.. . . 78

105. Summary of assets and liabilities of operating banks in the United States and possessions, December 31, 1942 Banks grouped according to insurance status and type of bank.. . . 79

106. Assets and liabilities of operating insured commercial banks, call dates, December 31, 1941, to December 31, 1942.............................. 80

A n a l y s is of e x a m in a t io n s o f in s u r e d com m ercial b a n k s:

107. Analysis of assets, capital, and liabilities of insured commercial banks examined in 1942 Banks grouped according to amount of deposits................................. 82

108. Asset and net sound capital ratios of insured commercial banks examined in 1942 Banks grouped according to amount of deposits................................. 83

109. Analysis of assets, capital, and liabilities of insured commercial banks examined in 1942 Banks grouped according to net sound capital ratio.......................... 84

110. Assets and net sound capital ratios of insured commercial banks examined in 1942 Banks grouped according to net sound capital ratio.......................... 85

111. Analysis of assets, capital, and liabilities of insured commercial banks examined in 1942 Banks grouped according to fixed and substandard assets ratio. . . . 86

LIST OF TABLES v ii

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V lll LIST OP TABLES

A n a l y s is o p e x a m in a t io n s of in s u r e d c o m m ercial b a n k s—Continued

112. Asset and net sound capital ratios of insured commercial banks examined in 1942 Banks grouped according to fixed and substandard assets ratio....

113. Analysis of assets, capital, and liabilities of insured commercial banks examined in 1942 Banks grouped according to Federal Deposit Insurance Corporation District........................................................................................................

114. Asset and net sound capital ratios of insured commercial banks examined in 1942 Banks grouped according to Federal Deposit Insurance Corporation District........................................................................................................

115. Distribution of insured commercial banks examined in 1942 according to net sound capital ratio Banks grouped by fixed and substandard assets ratiot rate of net earnings, and amount of deposits..........................................................

116. Distribution of deposits of insured commercial banks examined in 1942Banks grouped according to net sound capital ratio and by fixed and substandard assets ratio, rate of net earnings, and amount of deposits.......................................................................................................

E a r n in g s o f in s u r e d b a n k s:

117. Earnings, expenses, and dividends of insured banks, 1942 By class of bank.......................................................................................

118. Ratios of earnings, expenses, and dividends of insured commercial banks, 1942 Banks grouped according to amount of deposits.................................

Su s p e n s io n s, r e c e iv e r s h ip s, a n d m e r g e r s:

119. Number and deposits of banks suspending operations, placed in receivership, and merged with the financial aid of the Federal Deposit Insurance Corporation, 1934-1942 Banks grouped by class, year, amount of deposits, and State...........

120. Assets and liabilities of insured banks placed in receivership, 1934-1942 As shown by books of bank at date of suspension..............................

121. Depositors and deposits of insured banks placed in receivership, 1934-1942 A s shown by books of FDICf December SI, 191+2..............................

122. Accounts and deposits of and disbursements to insured banks merged with the financial aid of the Federal Deposit Insurance Corporation, 1942........................................................................................

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Federal Reserve Bank of St. Louis
PART ONE

OPERATIONS AND POLICIES OF THE CORPORATION

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B a n k in g a n d D e po sit In s u r a n c e

Condition of banks. The quality of the assets held by commercial banks appears today to be better than at any other time. Total

assets of all commercial banks in the United States amounted to

$97 billion on December 31, 1942, an increase for the year of $19

billion or nearly 25 percent. The growth in assets was chiefly in

obligations of the United States Government which at the close of

the year constituted more than 40 percent of the banks' assets. Cash,

reserves, and balances with other banks also increased and were

nearly 30 percent of the banks’ assets. The examinations of insured

commercial banks in 1942 indicate that the remaining assets of the

banks were, on the whole, of better quality than in previous examinations on record with the Corporation.

Viewing the banks as a whole, earnings are increasing. Operating

earnings after payment of operating expenses but before income taxes

are estimated to be higher in 1942 than in any other year since the

establishment of deposit insurance. Notwithstanding income taxes

which are estimated to be about 60 percent higher than those of 1941

and three to seven times higher than those of other pre-war years, the banks in 1942 reported net profits after income taxes substantially

higher than in any other year of deposit insurance, except 1936 and

1941. The increases in net earnings and profits, however, were chiefly

in the largest banks of the nation, most of the remaining banks

showing reductions in 1942 in net earnings and net profits both before and after taxes.

The present outlook for war financing and taxation indicates that

bank assets, chiefly United States Government obligations and balances with other banks, including reserves at Federal Reserve

banks, will continue to expand, that operating earnings will increase more rapidly than expenses, and that net profits even after taxes

will be well sustained over the next few years.

Capital of banks. During recent years retained net earnings have

approximated 3 percent of capital. It appears likely that they will

continue to approximate this figure. With little indication of increases

in capital from sources other than earnings and with substantial

increases in assets and liabilities in prospect, many banks may find

themselves without sufficient capital to take a reasonable share of

the risks inherent in the financing of business in the post-war era.

This development represents an acceleration of the tendency, observed

over the past 50 years, for assets and liabilities to expand more rapidly

than bank capital.

3

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4 FEDERAL DEPOSIT INSURANCE CORPORATION

Bank capital and private enterprise. One of the distinguishing characteristics of private enterprise is the assumption of risks by

individuals and groups of individuals in the hope of obtaining profits.

Although most of the risks of business are assumed by the owners,

some are also borne by others who participate in its conduct. Among

these risks are those arising out of the financing of business enterprise.

The fee for the assumption of the risk involved in financing business

is included in the interest paid or some other advantage given to

creditors. To the extent that the fees paid are adequate in amount and

distribution to cover the risks involved in extensions of credit, the

losses can be borne without serious repercussions. However, the concentration of these losses in periods of time—chiefly depressions—and

in areas or particular businesses frequently results in inability of

creditors to absorb the losses. The losses must then be passed on to

the next group of creditors, which, in the case of the banks, are the

depositors.

Over the past 80 years losses incurred by the banking system have

totaled more than $15 billion. Of these losses, more than $10 billion were written off out of earnings and capital in operating banks, more

than $2 billion were borne by stockholders of failed banks, and more than $2 billion were borne by the depositors. These losses were in

part the cost of business enterprise. They reflected errors of judgment and the consequences of unforeseen economic vicissitudes. The bank

failures brought disruption to the economic life of the communities in which they occurred and disaster and distress to many depositors

and bank stockholders. The business and agricultural development

made possible by the credits advanced by these banks was a partial offset to the losses resulting from their failure.

One of the chief objectives of bank management and bank supervision must be the uninterrupted operation of banks able and willing

to bear the risks inherent in the provision of credit. While risks can

be kept low by the adoption of standards which have been shown by

experience to provide reasonable assurance of fulfillment of obligations, such standards must be conceived of in terms of the requirements

and capacities of business. They must be adapted to changes in the

business structure and in business methods, otherwise business will

have to seek increasing proportions of its credit elsewhere than at

the banks. It is important, therefore, either that banks maintain

adequate capital margins and provide reserves on a regular basis for

the losses inherent in the financing of business and agriculture, or

that they provide some means of transferring risks to others.

Adequacy of bank capital. The recent rapid growth in bank

deposits and in bank assets without a corresponding growth in capital

has resulted in substantial reductions in the ratio of bank capital to

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BANKING AND DEPOSIT INSURANCE 5

liabilities and to assets. The lowering of the ratios, coupled with recognition of obvious differences of degree of risk in different types

of assets has led to rationalization of the capital position of banks in terms of “risk” assets. The doctrine has been widely advocated that “riskless” assets should be disregarded in determining adequacy of

capital, and that capital should be related only to “risk” assets.

To the extent that assets are readily convertible into cash without

risk of loss, of course, capital would appear to be less necessary. The

determination of adequacy of capital in terms of existing “risk”

assets, however, represents an unfortunate and misplaced emphasis.

Such views have led not only to neglect on the part of some bankers

to take steps to improve capital positions, where such steps were

desirable and feasible, but also to active steps on the part of others

actually to reduce capital. The question is not whether a bank has

enough capital for the type of assets which it now holds and the risks

which it now appears to face, but whether it has enough capital to

enable it to assume the proper and reasonable risks of participating

in the financing of business enterprise. To the extent that banks in

the post-war future confine their investments to so-called “riskless”

assets, business and agriculture will have to obtain accommodation

elsewhere, either from competing credit institutions or from govern­ mental agencies.

If bankers wish to preserve their system of banking they must

have enough capital to enable them to finance, with reasonable safety, business enterprise so as to make unnecessary the creation of governmental financing agencies. Bankers must be in a position to bear successfully the reasonable risks of such financing without imposing

an undue burden of risk upon the Government. To the extent that

such risks are not borne by banks but are shifted to the Federal

Deposit Insurance Corporation and to other governmental agencies increased supervision, regulation, and control by the Government become necessary, and continuation of a privately-owned banking

system becomes increasingly difficult. The prospect for survival of

our present banking system, therefore, depends largely upon the

intelligent and resourceful leadership of the bankers themselves in

providing sufficient capital and managerial skill to enable the banks

to bear the risks of credit extension in a manner which will justify

the maintenance of our private banking system.

Policy of the Corporation w ith respect to bank capital. Disciplinary supervisory action will not be taken against banks whose

capital ratios, solely because of support of war financing, follow an

unfavorable trend. The war must and will be financed and present

public policy calls for the banks to make an important contribution

to such financing.

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6 FEDERAL DEPOSIT INSURANCE CORPORATION

The Corporation’s views with respect to the role of banks in war financing is expressed in part in a joint statement of the Comptroller

of the Currency, the Federal Deposit Insurance Corporation, the

Board of Governors of the Federal Reserve System, and the Executive

Committee of the National Association of Supervisors of State Banks,

issued on November 22, 1942. That statement, presented in full on

page 55 of this report, gave assurance to the banks that they would

not be criticized for using their resources and facilities to the utmost

in the purchase of United States Government securities eligible for bank investment or for making short-term loans to facilitate customer purchases of Government securities.

The Corporation is desirous of maintaining the soundness and

stability of our banking system and of assuring the ability of the banks

to meet their future responsibilities in the financing of the nation’s

business. The Corporation, therefore, is opposed to the continued

operation without remedial measures of banks known to be in an

unsatisfactory condition. The Corporation is also opposed to the

weakening of banks through unwarranted reductions of capital.

The Corporation advocates the increase of bank capital wherever

it is needed. With favorable earnings prospects some banks have

obtained additional capital recently through the offering of stock to

the public. Other banks could follow their example with benefit to

themselves, to the banking system, and to our system of private

enterprise.

Reserves for losses on bank assets. The losses on assets of more

than $15 billion incurred by the commercial banks of the nation over

the past 80 years were at a rate of nearly one percent of total assets per annum. During the past 25 years, 1918 to 1942, inclusive, losses less recoveries on loans of national banks averaged nearly one percent

of loans per annum. Both the city banks—reserve and central reserve

city—and the country banks showed losses on loans at about the

same rates which, from the nature of the reported data, probably

represent understatements. Losses on securities, other than obligations

of the United States Government, appear to have been materially

higher than those on loans. Comparable data for State banks are not

available. While more than one-half of the losses taken on these two

types of assets during the 25-year period were written off in six years,

they were sustained upon assets acquired by the banks over many

years.

This uneven rate of loss contributes to banking difficulties. In

prosperous periods profits appear to be large, encouraging payment of

generous dividends, whereas in depression years the heavy charge-offs

more than absorb undivided profits and sometimes even result in

capital impairment. It is desirable, therefore, that during prosperous

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BANKING AND DEPOSIT INSURANCE 7

periods each bank should make provision on a systematic basis for losses, which can be expected to develop in periods of readjustment, on assets acquired during the prosperous periods. Where banks do not already follow such a practice, reserves for losses should be set aside annually in the form of valuation allowances, or unallocated chargeoffs, or in some other manner, against those groups of assets from which

losses ordinarily arise. Such reserves should, of course, not be regarded

as a part of the capital accounts.

Within certain limits, the amount of reserves or loss allowances

set aside annually at a rate in keeping with the experience of the bank

over a reasonable period of years, or with the experience of a comparable group of banks, and with due regard for substandard assets,

may be deducted from income in determining net income for Federal

income tax purposes by banks employing the reserve method of

charging off bad debts. Such deductions may be claimed even though

losses have not actually been ascertained during the taxable year.1 The requirements of the supervisory authorities, subject to certain

limitations, also constitute sufficient ground for the taking of losses

for income tax purposes.2

Transfer of risk. In the absence of adequate capital and of reserves

for losses the banks will be faced with the alternative either of refraining from the financing of business or of transferring the risk of

financing to others.

A method of transfer of risk frequently proposed is to insure various

types of assets of the banks against loss. While certain classes of loans, particularly real-estate mortgages, readily lend themselves to this method of financing, the creation of a series of governmental corporations which would insure most bank loans has serious long

run implications to the free enterprise system. Since each corporation

of this kind would of necessity be forced to supervise the extension

of credit to avoid undue losses and since achievement of uniformity in regulations would be difficult, such a method of finance, if generally

used, would impose additional restraints and interferences with the

normal processes of business.

Insurance of bank assets seeks to avoid, by payment of a fee, the

risk of extending credit. The insuring Federal agencies would be

assuming the primary risk of loss in the extension of credit while the

profits would be received by banks which would not bear the risks

that are the justification for profit-taking. Under such a general

system of insurance of bank assets some of the most powerful incentives for sound banking practices would be lacking. One of the sound

1 Regulation 103 (Part 19, Title 26, Code of Federal Regulations, 1940 Sup.), Section 19.23 (k)-5, as amended by Treasury Decision 5234, March 1, 1943. * Regulation 103 (Part 19, Title 26, Code of Federal Regulations, 1940 Sup.), Section 19.23 (k)-l(c), as amended by Treasury Decision 5234, March 1, 1943.

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8 FEDERAL DEPOSIT INSURANCE CORPORATION

features of deposit insurance lies in the fact that the stockholders

of a bank still bear the first risk of loss since they lose their entire

stake in the business before the Federal Deposit Insurance Corporation bears any loss. Self-interest, therefore, still provides the primary

incentive for the sound management and operation of the bank and for prudence in the extension of credit.

Deposit insurance assessm ents. From time to time proposals

have been made to reduce the rate of insurance assessment on deposits,

to exempt certain classes of deposits from assessments, and to permit deductions or allowances on certain types of assets. The most important of these proposals are listed below. Had all of them been in

effect for the period covered by the assessments collected by the

Corporation in 1942, they would have reduced the Corporation’s assessment income to $4 million or by 92 percent.

Effect on

assessments Proposals for reducing assessments for 1942 (reduction)

Eliminate assessments on Treasury war loan account (enacted April

13, 1943)..................................................................................................... $1.9 million

Deduct secured deposits of the United States (S. 986 pending in

78th Congress).......................................................................................... .2

Deduct all other secured deposits, including all public funds................ 3.6

Deduct interbank deposits.............................................................................. 9.2

Deduct deposits equivalent to the amount of cash and reserves held.... 11.7

Deduct deposits equivalent to the amount of U. S. Government obligations held................................................................................. ........... 23.7

Deduct cost of one national bank examination—for national banks

only (H. R. 1818 pending in 78th Congress).................................... 1.9

Total reduction in assessments............................................ $52.1 million

Total assessments paid in 1942............................................................ $56.5 million

The cost of insurance is determined not by any nominal rate of

assessment paid but by the economic forces, the supervisory and

management policies, and the structural weaknesses which bring

losses upon creditors of banks and upon the insurance fund. If the

cost is not met by assessments on banks it will have to be met out

of the pockets of depositors as in the past or by levies upon the entire

nation through the appropriation of Federal revenues. The present

rate of assessment is less than one-half of that which would have been

necessary to operate a comparable insurance fund over the period

from the close of the Civil War to the establishment of the present

fund on January 1, 1934. The present rate assumes that the reforms

and improvements in our banking system sought by banking legislation over the past decade have been achieved and tested, that bank

management and bank supervision are superior to those of former

years, and that this country will never again have a banking crisis.

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PROTECTION OP DEPOSITORS 9

Furthermore, the reserve funds of the Corporation under existing rates and conditions have not increased in proportion to the deposits protected by the Corporation. To reduce now the assessment below the present rate, therefore, would not constitute prudent financial administration.

Sum m ary. In testifying recently before the Senate and House

Banking and Currency Committees, the Chairman of the Federal

Deposit Insurance Corporation made the following statement:

“One of the principal bulwarks of depositors’ confidence is the

deposit insurance system. Confidence in the banking system will be maintained so long as bank customers believe that the banks are kept

sound through good management and supervision, and so long as they

believe that the Federal Deposit Insurance Corporation is financially

sound and properly administered. Loss of confidence would inevitably

lead to hoarding on a scale greater than anything we have ever

imagined, and to a deterioration in the banking structure of such a

character as to require direct financial intervention of the Federal

Government. Amid the popular outcry that would accompany such

developments what would be the prospects for continuance of a system

of privately-owned banks which had claimed to be unable to support

financially a deposit insurance system and had not made adequate

provision for the risks of doing business although it had a record of sustained earnings and profits even after increased taxes?

“Continuance of a system of privately-owned banks is essential to

the maintenance of the private business system which has contributed so much to the greatness of this country. The preservation of our

banking system calls for wholehearted and intelligent participation in the war effort, for conservation of earnings and provision out of

current earnings for losses, for strengthening of capital whenever

possible, for farsightedness on the part of bankers and public officials

concerned with banking, and for the maintenance of the Federal Deposit Insurance Corporation in as strong a financial position as

possible. Not until we have completed our major post-war adjustments

and have arrived at a comparatively stable post-war economy should

we consider any reduction in the assessment rate or any further

exemption of types of deposits from assessments.”

Protection ofJDepositors

Protection of depositors in insured banks. As is usual in periods

of rapidly increasing bank deposits and sharply advancing prices, few

banks experienced financial difficulties during 1942. Only 20 banks

with 60,000 depositors and aggregate deposits of $19 million required

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10 FEDERAL DEPOSIT INSURANCE CORPORATION

financial aid from the Corporation. The disbursements of the Cor­ poration amounted to $11 million, of which it is estimated all but

$3 million will be recovered. Full protection was afforded to all but

26 depositors whose loss will amount to about $7,000. Details concerning the insured banks placed in receivership or merged with the

financial aid of the Corporation during 1942 are presented in Tables

119 to 122, pages 96 to 100.

During the nine years of Federal insurance of bank deposits—

January 1, 1934, to December 31, 1942—390 insured banks with

deposits of $485 million were merged with the financial aid of the

Corporation or suspended and were put into liquidation. The Corporation disbursed $251 million to protect 1,300,000 depositors in

these 390 banks and expects to lose about $49 million, 20 percent of

its disbursements, or about 10 percent of the deposits of the banks.

In 290 of the 390 banks not a single depositor who filed a claim will suffer any loss. Less than 5,000 depositors who filed claims will

experience a loss and 3,206 of these held accounts which had been

restricted or deferred prior to 1934 or were otherwise ineligible for

insurance protection. Losses of about $3 million will be borne by

depositors, for the most part by those with accounts in excess of

$5,000, the maximum coverage of deposit insurance. Depositors with

30,000 accounts aggregating $128,000 had failed to file their insured claims by December 31, 1942. In some cases, these claims were barred

by expiration of legal time limits, but in other terminated receiverships, trust funds amounting to $14,000 were set up to cover claims

which might be proved at a later date. Summary figures relating to

depositors' losses and recoveries are given in Table 1.

T a b le 1. DEPOSITORS’ RECOVERIES AND LOSSES IN INSURED BANKS

i n F in a n c ia l D i f f i c u l t i e s, 1934-1942

Num ber of depositors................................................................................................................. 1,265,649

Depositors suffering no loss.................................................................................. .................... 1,231,081 Depositors suffering loss: Claims filed, but recoveries from liquidation inadequate1......................... .................... 4,684 Claims not filed within period prescribed by law........................................ .................... 29,884

Am ount of deposits................................................................................................ .................... $484,755,000

Estimated recoveries by depositors......................................................................................... 481,649,000 Estimated losses by depositors filing claims1......................................................................... 2,992,000 Estimated losses because of failure to file claims................................................................. 114,000

1 1,478 depositors will lose an estimated $2,857,000 of their deposits in accounts which exceeded the limit of $5,000 insurance and which were not otherwise protected; and 3,206 depositors will lose about $135,000 in accounts which had been restricted or deferred prior to 1934 or were otherwise in­ eligible for insurance protection.

M ethods of providing insurance protection. The Corporation

protects depositors in insured banks in financial difficulties, (1) by

advancing cash to the banks to replace poor assets, where such action

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PROTECTION OF DEPOSITORS 11

will facilitate mergers with other banks and reduce the loss of the Corporation, or (2) by paying off depositors, up to $5,000 per de­ positor, in insured banks which close without making adequate provision for payment of depositors. Disbursements under the two methods of dealing with insolvent or hazardous insured banks during

the past nine years are presented in Table 2.

T a b le 2. DISBURSEMENTS OF THE CORPORATION IN CONNECTION WITH BANKS

i n F i n a n c i a l D i f f i c u l t i e s , 1934-1942

Number of banks Amount of disbursement (in millions)

Total Placed in receiver­ ship Merged Total Insured deposits paid1

Loans and assets purchased

T o ta l.................... 390 240 150 $251 $81 $170

1942.................. 20 6 14 11 2 9 1941................... 15 8 7 24 12 12 1940................... 43 19 24 74 5 69

1939.................. 60 32 28 68 26 42 1938.................. 74 50 24 30 9 21 1937................... 75 50 25 19 12 7

1936................... 69 42 27 15 8 7

1935................... 25 24 1 9 6 3 1934 .......... 9 9 1 1

1 In addition, the Corporation disbursed $1,096,000 to purchase assets from the liquidators of 44 insured banks in receivership.

Detailed figures for 191*2—See Tables 121 and 122, pages 99 and 100.

Of the 390 banks aided or closed, 150 with 902,000 accounts and $383 million of deposits were merged with no interruption of operation and without loss to depositors, while 240 banks with 364,000 depositors and $102 million of deposits were placed in receivership. Figures regarding payment of deposits in insured banks in receivership

are given in Table 3.

T a b le 3. P a ym ent of D e po sit s of In su r e d B a n k s P laced i n 

R e c e iv e r sh ip, 1934-1942

Total Paid by- Dec. 31, 19421

Unpaid on Dec. 31, 19422

D eposits—t o ta l ................................................................

Insured............................................................................ Secured, preferred, and subject to offset..................

$102,469,000

81.572.000 10.259.000 9.505.000 1.005.000 128,000

$97,371,000

81,220,000 10,222,000 5,225,000 690,000 14,000

$5,098,000

352.000 37,000 4,280,000 315.000 114.000

Deposits in excess of $5,000 not otherwise protected Restricted or otherwise uninsured.............................. Unclaimed3......................................................................

1 Payment made by the Federal Deposit Insurance Corporation and by receivers. 8 Includes loss of $169,000 in banks whose receiverships have been terminated. * Unclaimed deposits paid are held in trust to pay deposits unclaimed at termination of receivership.

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12 FEDERAL DEPOSIT INSURANCE CORPORATION

By the close of 1942, 95 percent of the $102 million of deposits in the insured banks placed in receivership had been paid to depositors.

Insured deposits of $81 million were paid by the Corporation and

deposits of $16 million were offset or paid by the receivers. It is

estimated that about $2 million additional payments will be made and that depositors will lose about $3 million.

Losses and recoveries of the Corporation. Insurance losses in the 390 banks are estimated at $49 million. In the banks placed in

receivership, the Corporation estimates losses will be about 20 percent

of total deposits compared with losses of 7 percent of total deposits in

the banks merged. Out of the $251 million of disbursements made during the past nine years in protecting depositors and assets, $142

million had been repaid to the Corporation by the end of 1942. The

Corporation expects additional recoveries of about $60 million.

Of the 150 loan and purchase transactions, 29 were liquidated and

closed out by December 31, 1942. The closed transactions were all

small, involving total disbursements of only $2 million. In 28 cases,

the disbursements were repaid in full. In the remaining case, collections

after deductions of expenses amounted to 96 percent of the principal

of the loan. The Corporation is making every effort to liquidate as many assets as possible during this period of prosperous business.

Net collections for the year 1942, after deducting expenses, amounted to $21 million.

Of the 240 insured banks placed in receivership from 1934 to 1942,

85 were completely liquidated by the end of that period, according to

the records of the Corporation. This number does not include 23 banks whose receiverships had been terminated, but the residue of whose

assets had been purchased by the Corporation, but had not yet been

liquidated. Of the 85 banks, 36 made full repayment to the Corporation

on its subrogated claims, 23 with interest. Payments to the Corporation on subrogated claims during the year amounted to $7 million.

During the past four years, the Corporation has purchased assets

from the receivers of 44 insured banks at a cost of $1 million in order

to facilitate the termination of the receiverships and to reduce the

loss of the Corporation and of other creditors of the banks. In only

3 of the 44 banks were all of the assets liquidated by December 31,

1942. Total collections in the 44 cases, however, have amounted to

about two-thirds of the purchase price of $1 million.

Receivership activities o f the Corporation. At the close of

1942, the Corporation was acting as receiver for 48 of the 132 insured

banks still in receivership. It was receiver for 11 national banks with

deposits at time of suspension aggregating almost $13 million and

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SUPERVISORY ACTIVITIES OP THE CORPORATION 13

poration maintains close contact with the receivers of the remaining

84 State banks with deposits of $59 million.

Su p e r v iso r y A c t iv it ie s op t h e Corpo ratio n

Bank exam inations. The Corporation continued its policy of

examining each insured State bank not a member of the Federal

Reserve System once a year and nearly all of these banks were examined in 1942. In addition, a number of examinations and investigations of banks were made because the banks were believed to require

special attention or the banks wished to change their class or location

or to establish or change the location of branches. The Corporation

also, as in previous years, reviewed reports of examinations of insured

banks members of the Federal Reserve System made by officials of

that system or by the Comptroller of the Currency.

Unsafe and unsound banking practices and violations of

law or regulations. During the year 1942 proceedings were initiated

against 13 banks and continued in 9 cases which were pending at the

beginning of the year. The status of these cases at the end of the year

and also a summary of all cases for the entire period since the effective

date of the Banking Act of 1935 is given in Table 4.

Table 4. A c t io n TO TERMINATE INSURED STATUS OF BANKS CHARGED

w it h E n g a g in g in U n s a f e or U n s o u n d P r a c t ic e s or Vio l a t io n s

o f L a w or R e g u l a t io n s, 1936-1942

Total

cases 1936-19421

Cases in 1942

Pending beginning of year*Started during

year

T o ta l banks ag ain st w hich actio n was ta k e n.................. 123 9 13

Cases closed d u rin g p e rio d................................................. 116 8 7 Corrections made................................................................... 16 1

Insured status terminated, or date for such termination set by Corporation, for failure to make corrections: Bank suspended prior to or on date of termination of insured status*.................................................................... 7 1

Bank continued in operation4.............................................. 3 Banks suspended prior to setting of date of termination of insured status by Corporation................................... 31 1

Banks absorbed or succeeded by other banks.................. *59 6 7

Cases pending Decem ber 31, 1942..................................... 7 1 6

Deferred pending consummation of plans for reorganiza­ tion or recapitalization..................................................... Correction period not expired............................................. 2

5

1 15

1 No action to terminate status of any insured bank was taken before 1936. In 4 cases where initial action was replaced by action based upon additional charges, only the later action is included. 2 Excludes 1 bank against which action pending at the beginning of 1941 was discontinued in order that a new action could be started. * Includes 1 national bank which, in accordance with the provisions of the law, suspended im­ mediately following the action of the Corporation in terminating its insured status. 4 One of these banks suspended 4 months after its insured status was terminated. 6 In all except 2 of the 59 cases the Corporation made loans to facilitate the mergers or reorganizations.

Back data—See Annual Report of the Corporation for 1941, page 188.

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14 FEDERAL DEPOSIT INSURANCE CORPORATION

The banks against which the Corporation proceeded were engaged in various types of unsafe and unsound practices and violations of

law or regulations. Most of these banks were operating with seriously

impaired capital, and were managed by incompetent or untrustworthy

officials. Most of them were holding excessive amounts of assets of

substandard quality and a large proportion of these were continuing

to carry such assets on their books, thus failing to disclose a true

statement of condition in their reports of assets and liabilities. A list

of the practices in which 11 of the 13 banks were engaged is given

in Table 5.1

Table 5. UNSAFE OR UNSOUND BANKING PRACTICES AND VIOLATIONS OF

L a w o r R e g u l a t io n s C h a r g e d A g a in s t 11 B a n k s

b y t h e C o r p o r a t io n D u r in g 1942

Number Type of practice or violation of banks charged

Capital: Operation of bank with seriously impaired capital.................................................................. 11 Insufficiency of earnings and inadequacy of available capital funds to provide for current and developing losses.................................................................................................................. 8 Continued operation of the bank with a net capital wholly inadequate to give reasonable protection to depositors, particularly in view of the large and abnormal amount of substandard assets, and assets consisting of real estate and potential other real estate.. 6

M anagem ent and general practices: Lax credit and collection policies................................................................................................. 6 Continued carrying of losses in bank’s assets, thus failing to disclose true statement of condition........................................................................................................................................ 7 Continued operation of the bank in an unsafe and unsound condition............................... 8 Operation of bank by weak, hazardous, untrustworthy or incapable management.......... 11 Unwarranted and excessive loans to directors, officers, employees, or their interests.. . . 1 Unsatisfactory condition of so-called “pool-notes” of directors and others and failure to place such obligations in acceptable banking form.............................................................. 1

Loan and investm ent practices: Excessive volume of past due loans............................................................................................. 1 Excessive investment in substandard, speculative, and defaulted securities...................... 1 Progressive deterioration of assets............................................................................................... 6 Failure of the bank's management to dispose of assets of substandard quality including other real estate, some of which had been carried beyond the period fixed by law.......... 3 Severe losses sustained and previously written off................................................................... 1 Capitalizing taxes and maintenance costs.................................................................................. 1 Carrying as loans and discounts of potential other real estate.............................................. 1 Large and excessive amount of assets subject to classification; of assets of substandard quality and of doubtful value and upon which substantial losses are probable............... 11 Extending the loans and carrying them indefinitely, ignoring the principle of amortization and the necessity for gradual reduction.................................................................................. 1

Admissions to and term inations of insurance. During 1942

the Corporation approved applications of 43 banks for admission to

insurance.2 Of these banks, 12 were new banks, five of which replaced

closed banks or closed branches of insured banks, 20 were banks in

operation at the beginning of the year, and 11 were insured banks

reorganizing or withdrawing from the Federal Reserve System. The

applications for admission to insurance of 7 banks were disapproved.

1 Two of the banks were absorbed by other banks and the cases were dropped, without formal preparation of the list of charges. 2 In one case the approval of the Corporation was later rescinded.

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SUPERVISORY ACTIVITIES OP THE CORPORATION 15

In 9 of the banks approved for admission, insurance had not become

effective by the end of the year. In addition, 7 banks whose applica­ tions were approved during the preceding year became insured during 1942. Nine other banks became insured through admission to membership in the Federal Reserve System.

The insurance of 119 banks terminated during the year, excluding

14 cases in which insured banks were succeeded by other insured

banks. Of these banks, 19 suspended or were merged with the aid of

loans by the Corporation, 63 were absorbed or merged with other

banks without financial assistance by the Corporation, 36 were

otherwise liquidated, and 1 was succeeded by a noninsured bank.

Further details regarding admissions to and terminations of insurance are given in Table 101, page 68.

E stablishm ent of branches. During 1942 the Corporation approved the applications of 32 banks to establish 34 branches.1 In

addition, 52 branches were opened for business by national and State

banks members of the Federal Reserve System.2 Nearly one-third

of all of the branches opened for business by insured banks during

the year were for the purpose of providing banking facilities at

military establishments. Further details regarding changes in the

branches operated by insured banks are given in Table 101, page 69.

Capital adjustm ents of banks. Applications for the retirement

of financial obligations held by the Reconstruction Finance Corporation, filed by 279 banks required by law to secure the approval

of the Federal Deposit Insurance Corporation, were approved in 1942 in amounts aggregating $9.5 million and disapproved in amounts

aggregating $4.6 million. Applications for the retirement of capital

obligations held by others than the Reconstruction Finance Corporation were approved in amounts aggregating $1.0 million.

Approval of assum ption or release o f deposits. During the year the Corporation approved the assumption by insured banks

of deposit liabilities of 14 noninsured banks. In 4 insured banks the

Corporation approved the payment of waived deposits or certificates

of beneficial interest representing deposits which had been waived

at the time of the banking holiday of 1933.

Reports from banks. Semi-annual statements of deposits were

submitted by each insured bank as required by law for the purpose

of determining the amount of the deposit insurance assessment.

The Corporation called for reports of assets, liabilities, and capital

accounts as of June 30 and December 31, 1942, and for reports of

1 This figure includes applications to continue in operation branches of banks which were being absorbed or succeeded. * These banks are not required to obtain Corporation approval for establishment of branches.

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16 FEDERAL DEPOSIT INSUEANCE CORPORATION

earnings, expenses, and disposition of profits for the calendar year 1942, from each insured bank required by law to submit such reports

to the Corporation.1

The Corporation is using the simplified uniform report forms

adopted also by the other Federal bank supervisory agencies and by

a majority of the State banking departments. These uniform statements were developed upon the initiative of the supervisory agencies

with a view to reducing the burden of reporting and conserving the

use of manpower both in the banks and in the supervisory agencies.

It is estimated that the work of the banks in preparing statements of

condition has been cut nearly in half by use of the simplified statement.

The forms were approved by the Bureau of the Budget.

Summaries of the tabulations from the reports of assets, liabilities,

and capital accounts are given in the pamphlets “Assets and Liabilities

of Operating Insured Banks”, Report No. 17 and Report No. 18, and

in Table 106 in this report. Summaries of the reports of earnings,

expenses, and disposition of profits are given in Tables 117 and 118

of this report.

Leg a l D e v e l o pm e n t s

Federal legislation. The Federal statutes relating to deposits of public money of the United States were altered and clarified by

Section 10 of Public Law 603, approved June 11, 1942, establishing

the Smaller War Plants Corporation. In brief, the provisions of this

section—

(1) Include in the definition of public money of the United States, revenues and funds of the United States, Postal Savings Funds,

and any funds the deposit of which is subject to the control or

regulation of the United States or any of its officers, agents or

employees.

(2) Enable the Secretary of the Treasury to designate any insured

bank as a depositary of public money of the United States or

as a financial agent of the Government, upon provision of

satisfactory security for the safe keeping and prompt payment

of public money deposited with the bank and for the faithful

performance of its duties as financial agent.

(3) Eliminate the requiring of security for deposits of moneys of

the Federal Government to the extent to which such deposits

are insured by this Corporation.

1 Banks required to submit reports to the Corporation are insured banks not members of the Federal Reserve System except those in the District of Columbia and national banks in the possessions.

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LEGAL DEVELOPMENTS 17

(4) Define, for the purpose of determining the amount of insured deposits, each officer, employee, or agent of the United States depositing public funds of the United States in an insured bank as a separate and distinct depositor from any other

officer, employee, or agent of the United States depositing

money in the same insured bank.

(5) Prohibit discrimination against or preference of national

banking associations, State banks members of the Federal

Reserve System, or insured banks not members of the Federal

Reserve System in the deposit, disbursement, or expenditure

of public funds or the deposit, custody, or advance of funds

subject to the control of the United States.

The Federal Reports Act of 1942, Public Law 831, approved

December 24, provides for coordination by the Bureau of the Budget

of the collection of information by governmental agencies. The act

provides, however, that its provisions shall not apply to the obtaining

by any Federal bank supervisory agency of reports and information

from banks as provided or authorized by law and in proper performance of such agency’s functions in its supervisory capacity. This

act took effect after the preparation of report forms used by the

Corporation for 1942, and those forms bore Bureau of the Budget approval numbers issued under previously existing authority.

The requirement of Sec. 11(a) of the Federal Register Act of 1935

that each agency of the Government, including this Corporation,

should file on July 1, 1943, and every fifth year thereafter, a complete codification of all documents which have been issued having general applicability and legal effect was suspended for the duration of the

war by Public Law 796, approved December 10, 1942. The same act provided for a cumulative supplement to the Code of Federal Regulations under the supervision of the Division of the Federal Register.

The sections of these acts affecting insured banks or the Federal

Deposit Insurance Corporation are given on pages 49-53 in this report.

Executive order regarding Federal credit unions. By Executive

Order of the President Number 9148, dated April 27, 1942, all functions, powers, and duties of the Farm Credit Administration and of

the Governor thereof under the Federal Credit Union Act were

transferred to the Federal Deposit Insurance Corporation. The order

became effective on May 16, 1942, and will continue in force until

the termination of Title I of the First War Powers Act, 1941. A copy

of the Executive Order is given on page 53.

Actions of the Corporation regarding credit unions, and summaries

of the operations of Federal credit unions for the year 1942, are

published in a separate report of the Corporation.

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18 FEDERAL DEPOSIT INSURANCE CORPORATION

State legislation directly affecting the operations of the

Corporation. Legislatures of eight States held regular sessions in

1942, and those of nine States held special sessions largely for the

consideration of war emergency measures. In two of these States

legislation was enacted affecting insured banks or the operations of

the Federal Deposit Insurance Corporation.

In Rhode Island, by amendment to Chapter 133 of the General

Laws, specific authorization was given for a mutual savings bank to

become a member of the Federal Reserve System and for a mutual

savings bank or bank and trust company to become an insured bank

with this Corporation. Another amendment to the same Chapter

extends to savings banks the authorization given State officials in

1936 to disclose to this Corporation or its agents information relative to banks and trust companies insured by this Corporation. An amendment of Chapter 141 of the General Laws includes savings banks in

the authorization given in 1940 to the Director of Business Regulation

in charge of the Bureau of Banking to accept in his discretion, in

lieu of his own examination, the report of examination of a bank and

trust company conducted by the Board of Governors of the Federal

Reserve System or by the Federal Deposit Insurance Corporation. (Chapter 1248 (S. 194A), approved May 9, 1942.)

In Virginia, Section 4149 (69) of the banking code was amended to exempt from the requirement to post collateral securities to secure uninvested trust funds of a bank or trust company held in its own

commercial or savings department to the extent that such funds are insured by this Corporation. (Chapter 173, approved March 10,1942.)

State legislation relating to bank supervision and bank

operations. The most important subjects dealt with in legislation

amending State banking codes are listed below:

Bank supervisory authority:

Extending to May 16,1945, the powers of Commissioner of Banking and Insurance

to regulate interest rates on time and savings deposits.........New Jersey (Ch. 87)

Eliminating requirement as to the time (month of December) when State

Comptroller should determine and fix rates of interest on time and savings

deposits and providing that such rates when determined and fixed by him

shall remain in force until changed by the Comptroller instead of continuing

in force only one year;—the rate to be determined not to exceed that permitted

by national banks........................................................................Mississippi (S. B. 353)

Increasing the number of members of State Banking Board from nine to ten;

requiring new members to be experienced in savings and loan associations; and

authorizing action to be taken by the Board by instrument in writing signed

by all members without a meeting..........................................New York (Ch. 189)

Requiring every bank, trust company, industrial bank, and private bank to be

examined once in each calendar year instead of twice in each eighteen month

period, as heretofore................................................................... New York (Ch. 805)

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LEGAL DEVELOPMENTS 19

Operations of banks of deposit:

Providing that revocations, countermands, or stop payment orders shall be good

only for a six months’ period unless renewed....................Kentucky (Ch. 129)

Amending requirements for reserves against deposits............Kentucky (Ch. 109)

Providing for indemnification of directors, officers and their personal representatives for costs incurred in connection with suits arising by reason of their office

unless adjudged guilty of actual negligence or misconduct....Kentucky (Ch. 40);

New Jersey (Ch. 124)

Authorizing individuals, partnerships, associations or corporations to act as

issuing agents for sale of obligations of the United States upon designation by

U. S. Secretary of Treasury............ Kentucky (Ch. 117); New Jersey (Ch. 125);

New York (Ch. 178); South Carolina (Ch. 675); Rhode Island(Ch. 1125);

Virginia (Ch. 272)

Establishing as a conclusive presumption the correctness of statements of accounts

or of depositor’s pass-book five years after rendition....Louisiana (Act No. 88)

Adopting American Bankers Association recommended statute regarding fictitious

payee........................................................................................ Louisiana (Act No. 312)

Forbidding State banks to receive and hold deposits continuously for more than

twelve months in excess of fifteen times their paid-up capital and surplus, but

permitting State Comptroller to grant permission in writing to receive and

hold deposits not in excess of twenty times paid-up capital and surplus........

......................................................................................................... Mississippi (H. B. 5)

Branch offices and bank mergers:

Providing that branch offices of banks, which are distinguished from branch

banks, shall not make loans but may transmit loan applications to parent bank

and prescribing manner in which they may be handled„..Mississippi (Ch. 261)

Authorizing mergers of safe deposit companies with banks and trust companies.

..........................................................................................................New York (Ch. 283)

Amending former act permitting banks to merge with or to purchase other banks

in the same or adjoining counties or within a distance of twenty-five miles of

the parent bank, and to operate such banks, so as to prohibit such merger or

purchase unless each of the institutions involved shall have been in actual

operation for a period of two years or more unless the State Corporation

Commission waives this restriction on account of emergency conditions or the

demands of public interest...........................................................Virginia (Ch. 86)

Taxation:

Authorizing annual excise tax upon every banking institution except mutual

savings banks; also, 40c on each $100 of certain kinds of deposits on last business

day in June of each year; also, savings deposits in national banks at 4/10ths of

one percent................................................................................ Rhode Island (Ch. 1212)

Taxing stock of branch banks.......................................................Virginia (H. B. 157)

Savings banks, trust funds, and fiduciary institutions:

Authorizing a national bank having capital stock in amount required for maintaining a bank and trust company in the same city to exercise therein the powers

of a trust company........................................................................Kentucky (Ch. 151)

Amending list legal for investment of trust funds by fiduciaries.............................

...........................................................New Jersey (Ch. 135); Virginia (Ch. 412)

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20 FEDERAL DEPOSIT INSURANCE CORPORATION

Providing method of substituting successors of fiduciaries engaged in war service

............................................................... New Jersey (Ch. 160); New York (Ch. 804)

Amending list of investments for savings banks.........................New York (Ch. 434)

Regulating powers and liabilities of fiduciaries in military service and authorizing

them to appoint substitutes pro tem or to allow remaining fiduciaries to act.

................................. Pennsylvania (Ch. 1140); Rhode Island (Public Law—No. 3)

Credit unions and small loan institutions:

Amending credit union statute and uniform small loan law.......................................

.............................................................................................Virginia (Chs. 143 and 150)

Specifying disposition of abandoned funds in industrial banks.................................

............................................................................New York (Chs. 107, 438 and 605)

Amending restrictions on loans of credit unions and provisions relating to reserves

for bad debts...........................................................New York (Chs. 371 and 373)

War emergency measures:

Suspending all holidays other than Independence Day, Labor Day and Christmas

Day during the continuance of present war..........................Kentucky (Ch. 149)

Conferring war powers upon the Governor relative to the “protection of bank

deposits and maintenance of bank structure”................Massachusetts (Ch. 13)

Authorizing every bank and trust company temporarily to suspend business

during actual or threatened enemy attacks and for a reasonable time thereafter

.............................................................................................................. Virginia (Ch. 101)

Regulations of the Corporation. On March 24, 1942, and on December 5, 1942, the Board of Directors of the Corporation by

resolution adopted provisions appearing respectively as Sections 305.5 and 305.6 in the Federal Register and in the codified regulations of the Corporation.

The first provides that the owner of any portion of deposits, representing funds of national farm loan associations or funds to be disbursed or collections held by them in connection with any Federal

Land Bank or Land Bank Commissioner loans or with real or personal

property owned or sold by any such associations, will be recognized

for purposes of claim of insured deposits if the records of such association, maintained in good faith and in the regular course of business,

disclose the name and interest of such owner even though they are

not disclosed on the records of the insured bank.

The same provisions appear in the second of such resolutions for

the benefit of employees whose salary deductions are held by employers

for purchase of war savings bonds or stamps.

These provisions are similar to those previously adopted relating

to deposits of public officers (Sec. 305.3) and deposits of approved

Federal Housing administration mortgagees (305.4).

Copies of these regulations are given on page 54 of this report.

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OPERATING STATEMENT OF THE CORPORATION 21

Op e r a t in g St a te m e n t o f th e Co rpo ratio n

Organization and staff. No changes in the directorship of the

Corporation occurred during 1942. Mr. Leo T. Crowley continued as Chairman; Mr. Phillips Lee Goldsborough and Mr. Preston Delano,

Comptroller of the Currency, continued as Directors throughout the

year.

In accordance with the general policy of reduction of Government personnel not engaged directly in activities having to do with the

prosecution of the war, the total personnel of the Corporation was reduced by 127 during the year and on December 31, 1942, consisted

of 2,411 officers and employees, notwithstanding the net addition to

the staff of 135 employees engaged in Credit Union activities who

were transferred from the Farm Credit Administration to the Federal

Deposit Insurance Corporation under the provisions of Executive

Order Number 9148. The number of officers and employees in each

division of the Corporation is given in Table 6.

Table 6. OFFICERS AND EMPLOYEES OF THE CORPORATION, DECEMBER 31, 1942

Total

Officers and adminis­ trative, supervisory, and technical employees

Clerical, stenographic, and custodial employees

2,411 716 1,695

Washington offic6—tota l........................................................ 292 U 228 Chicago office— total............................................................... 336 99 237 Field office*— total.................................................................. 1,783 55S 1,230

Directors and aides.................................................................... 25 10 15

Legal Division............................................................................ 34 15 19 Washington office— total........................................................ 15 7 8

Chicago office— total............................................................... 19 8 11

Division of Examination.......................................................... 701 475 226 Washington office— total........................................................ 58 26 32 District and field—total.......................................................... 6US U 9 19*.

Division of Liquidation............................................................. 1,278 161 1,117 Chicago office— total............................................................... 1S8 57 81 District and field— total.......................................................... 1,110 10 k 1,036

Division of Finance and Administration............................... 324 44 280 Washington office— total........................................................ lk5 10 135 Chicago office— total............................................................... 179 lk5

Division of Research and Statistics....................................... 49 11 38

In June 1942 the Division of Liquidation, part of the Division of

Finance and Administration, and part of the Legal Division were

moved to Chicago in conformity with the efforts of the Bureau of

the Budget to make more space available in Washington for war

agencies. At the close of the year the Corporation had 292 officers

and employees in the main office in Washington, 336 at the general

offices in Chicago, and 1,783 in the field and regional offices.

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22 FEDERAL DEPOSIT INSURANCE CORPORATION

The operating organization of the Corporation was not significantly altered by the moving of part of the offices of the Corporation to

Chicago. The organization of the Corporation during the year is

shown by the chart on page 5 of the Report of the Corporation for

1941.

Incom e and expenses. The total income for the calendar year

1942 was $69.4 million of which $56.5 million represented assessments;

$12.5 million interest on investments—net after provision for amortization of premiums, interest on loans and subrogated claims, and

other interest received; and $.4 million representing income from

Federal Credit Union activities, including $.3 million received by

transfer from Farm Credit Administration, Department of Agriculture. Total losses and expenses for the year amounted to $7.2

million, of which $3.2 million were insurance losses and expenses

and $4.0 million were administrative expenses and other charges. The surplus of the Corporation was increased by $63.4 million during

the year, reflecting net income of $62.2 million and adjustments to

surplus, applicable to prior periods, in the amount of $1.2 million.

A summary statement of the income and expenses of the Corporation for each year since its organization is given in Table 7. A detailed

statement for the year 1942 is given in Table 8.

T a b le 7. INCOME AND E x p e n s e s OF THE FEDERAL DEPOSIT INSURANCE 

C o r p o r a t i o n S in c e B e g i n n i n g O p e r a t i o n s 1

(In millions of dollars)

Income Expenses

Net income added to 

Total surplus Deposit insurance

assess­ ments2

Investment income and profits

Federal credit union income

Total

Deposit insurance losses and 

expenses

Adminis­ trative expenses3

1933-1942 405.9 319.0 86.5 .4 78.3 48.6 29.7 327.6

1 9 4 2 .... 69.4 56.5 12.5 4.4 7.2 3.2 4.0 62.2 1941___ 62.0 51.4 10.6 — 5.5 1.8 3.7 56.5 1 9 40.... 55.9 46.2 9.7 — 16.6 13.0 3.6 39.3 1939___ 51.2 40.7 10.5 — 19.0 15.6 3.4 32.2 1 9 3 8 .... 47.8 38.3 9.5 — 7.2 4.2 3.0 40.6 1 9 37.... 48.1 38.8 9.3 — 7.2 4.5 2.7 40.9 1936___ 43.8 35.6 8.2 — 5.6 3.1 2.5 38.2 1 9 3 5 .... 20.7 11.5 9.2 — 5.6 2.9 2.7 15.1 1933-345.. 7.0 — 7.0 — 4.4 .3 *4.1 2.6

1 Figures of total expenses, deposit insurance losses and expenses and net income added to surplus for years prior to 1942 differ from those shown in previous Annual Reports because of revisions in estimates of losses allocated to the different years. 1 Assessments collected from insured banks, members of the temporary insurance funds, were credited to their accounts in total at the termination of the temporary funds, being applied toward subsequent assessments under the permanent insurance fund, and resulting in no income to the Corpo­ ration from assessments for the terms of the temporary insurance funds. * Includes furniture, fixtures and equipment purchased and charged off. 4 Includes Federal Credit Union funds transferred to Corporation from Farm Credit Administration, Department of Agriculture. 6 Includes expenses from date of organization, September 11, 1933 to December 31, 1934. • After deducting portion of expenses and losses charged to banks withdrawing from the temporary funds on June 30, 1934.

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OPERATING STATEMENT OF THE CORPORATION 23

T a b l e 8 . INCOME AND EXPENSES OF THE FEDERAL DEPOSIT INSURANCE

C o r p o r a t io n , C a l e n d a r Y e a r 1942

Incom e:

Deposit insurance assessments............................................................ $ 56,531,417.33 Interest earned on securities (less provision for amortization of premiums)............................................................................................ 12,377,355.62

Other interest received.......................................................................... 72,143.84

Charter, organization, examination and supervision fees, Federal Credit Unions...................................................................................... 190,894.61

Federal Credit Union funds received by transfer from Farm Credit Administration, Department of Agriculture, (net)..................... 196,381.67

T otal in co m e.................................................................... $ 69,368,193.07

Expenses:

Deposit insurance losses and expenses............................................... $ 3,243,257.78

Administrative expenses (see below).................................................. 3,864,583.08

Furniture, fixtures and equipment purchased and charged off. . . 31,781.41

T otal expenses................................................................. $ 7,139,622.27

N et incom e added to su rp lu s.................................... $ 62,228,570.80

S urplu s D ecem ber 31, 1941:

As previously reported.......................................................................... $264,199,902.87

Plus—net adjustments applicable to periods prior to Jan. 1, 1942 1,215,166.41

Surplus as adju sted D ecem ber 31, 1941................. $265,415,069.28

S urplus D ecem ber 31, 1942......................................... $327,643,640.08

DISTRIBUTION OF ADMINISTRATIVE EXPENSES

Salaries...................................................................................................................................... $ 2,719,722.20

Professional services............................................................................................................... 49,249.34

Services of other governmental agencies............................................................................ 51.31

Transportation........................................................................................................................ 136,051.86

Subsistence............................................................................................................................... 511,258.95

Office rental.............................................................................................................................. 319,910.15

Printing, stationery and supplies........................................................................................ 92,409.42

Postage, telephone and telegraph................................................................................. 43,533.92

Insurance and fidelity bond premiums............................................................................... 1,581.15

Safekeeping and service charges on securities................................................................... 114.48 Subscriptions........................................................................................................................... 9,828.35

Equipment rental................................................................................................................... 8,354.45

Repairs and alterations.......................................................................................................... 17,703.87

Transportation of things....................................................................................................... 3,554.52

Miscellaneous........................................................................................................................... 5,165.87 $ 3,918,489.84

Less:

Miscellaneous income and other credits applicable to reduction of administrative expenses.................................................................... $ 27,209.10

Inter-departmental expense transfers................................................. 26,697.66 $ 53,906.76

A dm inistrative expenses for th e year ending D ecem ber 31,1942 $ 3,864,583.08

Assets and liabilities. On December 31, 1942, the Corporation

held assets acquired through bank suspensions and mergers amounting

at face value to a total of $107 million, which were carried on the

books of the Corporation at a net or appraised value of $62 million,

United States Government securities valued at $537 million, and

cash amounting to $19 million. Total capital of the Corporation

consisted of $289 million capital stock issued at its organization and

$328 million accumulated surplus. Balance sheets of the Corporation

as of December 31, 1941 and 1942, are given in Table 9.

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24 FEDERAL DEPOSIT INSURANCE CORPORATION

Table 9. A s se t s a n d L ia b il it ie s op t h e F e d e r a l D e p o s it I n s u r a n c e

C o r p o r a t io n, D e c e m b e r 31, 1942, a n d D e c e m b e r 31, 1941

1942 1941

ASSETS

Assets acquired th ro u g h b ank suspensions and m ergers: Subrogated claims of depositors against closed insured banks. . . Net balances of depositors in closed insured banks pending settle­ ment or not claimed, to be subrogated when paid—contra.. . Loans to merging insured banks to avert deposit insurance losses. Assets purchased from merging insured banks, to avert deposit insurance losses, under agreements to return any excess re­ covery to selling banks.................................................................... Assets purchased from merging insured banks and receivers of closed insured banks to avert deposit insurance losses.............

Less: Reserve for losses.......................................................................

Cash on h a n d and on d e p o sit..........................................................

U nited S tates G overnm ent Securities (cost less reserve for amortization of premiums) and accrued in terest receivable. .

Due from G overnm ental agen cies..................................................

M iscellaneous receivables..................................................................

F u rn itu re , fixtures and e q u ip m e n t................................................

Deferred charges and m iscellaneous assets................................

T otal a sse ts.....................................................................

LIABILITIES C u rre n t liabilities: Accounts and assessment rebates payable...................................... Earnest money deposits and collections in suspense, arising from subrogated claims of depositors, loans to merging insured banks, and assets purchased and Federal Credit Union activities............................................................................................. Net balances of depositors in closed insured banks pending settlement or not claimed—contra...........................................

Deferred c re d its.................................................................................

Reserve for deposit insu ran ce expenses...................................

T otal lia b ilitie s.........................................................

CAPITAL C apital stock: "United States.................................................................................. .

Federal Reserve banks....................................................................

Surplus—(see Table 8).....................................................................

T otal c a p ita l..............................................................

T otal liabilities an d c a p ita l.................................

$ 27,112,952.50 $ 33,207,002.95

351,254.13 39,872,584.89 1,130,784.07 48,829,768.23

38,314,820.58 41,105,409.16

988,606.36 $106,640,218.46 1,079,390.77 $125,352,355.18

44,584,295.97 $ 62,055,922.49 43,611,442.17 $ 81,740,913.01

19,359,639.29 19,964,141.20

536,827,041.84 453,892,071.94

308,037.43 —

110,397.75 —

1.00 1.00

82,805.27 65,086.26

$618,743,845.07 $555,662,213.41

$ 477,399.09 $ 172,955.96

840,452.79 727,677.90

351,254.13 1,130,784.07

4,379.48 13,510.84

127,162.51 117,824.78

$ 1,800,648.00 $ 2,162,753.55

$150,000,000.00 139,299,556.99 $289,299,556.99 327,643,640.08

$150,000,000.00 139,299,556.99 $289,299,556.99 264,199,902.87

$616,943,197.07 $553,499,459.86

$618,743,845.07 $555,662,213.41

Relation of capital and surplus of the Corporation to deposits protected. Deposit insurance losses since 1934 have been

sufficiently small so that those losses and the administrative expenses

of the Corporation for the period of its existence have both been met

from income on the Corporation’s investments. This has resulted in

additions to the capital and surplus of the Corporation since its

organization of an amount greater than the assessments collected

from insured banks. Nevertheless, the capital and surplus of the

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OPERATING STATEMENT OF THE CORPORATION 25

Corporation is now considerably smaller, relative to the deposits actually protected by the Corporation, than at the beginning of 1934.

When insurance of deposits began on January 1, 1934, the capital stock of the Corporation, which amounted to $289 million, was approximately 2.0 percent of the insured deposits of banks approved

for insurance. At the close of 1942, the capital and surplus of the

Corporation amounted to 1.9 percent of the estimated amount of 

deposits specifically insured by the law.1 However, as a result of the

powers of the Corporation in connection with mergers of banks in

financial difficulties, the deposits protected in fact by the Corporation

embrace a larger proportion of total deposits.

Audit. In accordance with the Corporation's policy of having an

annual independent audit, the accounts as of June 30, 1942, were audited by Arthur Andersen & Co. The auditors' certificate is given

below. The balance sheet of the Corporation as of that date, as shown

in the auditors' report, is given in Table 10.

A R T H U R A N D E R S E N & C O .

is o South L a Sa l l e St r e e t

Ch ic a g o

To t h e B o a r d o f D i r e c t o r s ,

F e d e r a l D e p o s it I n s u r a n c e C o r p o r a t io n:

We have examined the balance sheet of the Federal Deposit Insurance Corporation (a corporation created under Section 12B of the Federal Reserve Act, as

amended by Title I of the Banking Act of 1935) as of June 30, 1942, and the related

statement of income and expenses for the year then ended, which statement of

income and expenses is summarized under the surplus account in the balance sheet.

In connection therewith, we have reviewed the system of internal control and the

accounting procedures of the Corporation and, without making a detailed audit

of the transactions, have examined or tested accounting records and other supporting evidence maintained in the general office of the Corporation (except the

records as to the closed insured banks for which the Corporation is receiver), by

methods and to the extent we deemed appropriate. We did not examine the collateral under loans to merging insured banks nor the documents evidencing ownership of assets purchased from insured banks, which collateral and assets for the

most part are held by Liquidating Agents of the Corporation, but we reviewed

reports as of various dates throughout the year prepared by the Corporation’s

internal audit department or inventories of assets purchased during the year prepared by the Corporation’s examiners, covering their verification of such items.

In our opinion, the accompanying balance sheet presents fairly the position of

the Federal Deposit Insurance Corporation at June 30, 1942, and the results of its

operations for the year ended that date.

(Signed) A r t h u r A n d e r s e n & Co.

Chicago, Illinois,

October 21, 1942.

1 Insured deposits of banks insured on January 1, 1934, are estimated at less than $15 billion. Such deposits are estimated at about $33 billion at the close of 1942.

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T a b le 10. FEDERAL D epo sit INSURANCE CORPORATION BALANCE SHEET

Ju n e 30, 1942—from au d ito r s’ repo rt

ASSETS

Cash on deposit, in transit and on han d....... $ 23,766,546.68

26 FEDERAL DEPOSIT INSURANCE CORPORATION

United States Government Securities and accrued interest receivable thereon: Principal amount $488,202,350, stated at cost ($491,948,153.75), less reserve for amortization of premiums ($1,913,643.12). . $490,034,510.63 Accrued interest receivable.............................................................. 1,839,323.15 491,873,833.78

Assets acquired through bank suspensions and mergers, less collections: Subrogated claims of depositors against closed insured banks. . $ 28,444,985.21 Net balances of depositors in closed insured banks pending settlement or not claimed, to be subrogated when paid— per contra.................................................................................... 316,907.72 Loans made to, and assets purchased from, merging insured banks to reduce or avert deposit insurance losses— Loans and recoverable liquidation expenses (Note 1)............ 44,042,883.30 Assets purchased under agreements to return any excess re­ coveries to the selling banks, and recoverable liquidation expenses (Note 1 )...................................................................... 40,298,834.52 Assets purchased, other................................................................ 617,616.34 Assets purchased from receivers of closed insured banks.......... ..........350,356.26 $114,071,583.35 Less—Reserves for losses............................................................. 44,449,076.73 69,622,506.62

Furniture, fixtures and equipm ent, at nominal value.

Deferred charges and m iscellaneous receivables.......... 120,868.06 $585,383,756.14

F ed e r a l Credit U n io n Section (no te 4)

Gash balance with the Treasurer of the United S tates....... 192,198.79

$585,575,954.93

NOTES:

(1) Loans to merging insured banks are evidenced by demand notes bearing interest at the rate of 4% per annum, and the Corporation is entitled to a return of 4% per annum with respect to its invest­ ments in assets purchased from merging insured banks under agreements to return any excess recoveries to the selling banks. The Corporation follows the practice of taking into income only such amounts of interest and allowable return as are realized after recovery in full of its investments (including recoverable liquidation expenses) in the respective loans and purchased assets. The amount of such interest realized during the year ended June 30, 1942 was $25,981.47.

(2) From time to time as appraisals or reappraisals are made, the Corporation revises its estimates of probable losses on assets acquired and carries directly to surplus the resulting adjustments of the reserve for losses insofar as such adjustments relate to assets acquired through bank suspensions and mergers which occurred in prior periods. However, in the summary of surplus shown in the foregoing balance sheet, such adjustments (net credit of $1,166,973.75) recorded during the year ended June 30, 1942 have been applied in reduction of deposit insurance losses and expenses for the year.

(3) Under the provisions of Section 12B of the Federal Reserve Act, as amended by Title I of the Banking Act of 1935 (subsection “o” ), the Corporation is authorized and empowered to issue and to have outstanding its notes, debentures, bonds or other such obligations in a par amount determined in accordance with said provisions, which amount at June 30, 1942, was $974,601,498.36.

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OPERATING STATEMENT OF THE CORPORATION 27

T a b le 10 . F e d e r a l D e p o s it I n s u r a n c e Co r p o r a t io n B a l a n c e Sh e e t

Ju n e 30, 1942— from a u d it o r s’ r e p o r t— Con tin u ed

l i a b il it i e s Liabilities: Accounts payable............................................................................... Earnest money deposits and collections in suspense, arising from assets acquired through bank suspensions and mergers. . Net balances of depositors in closed insured banks pending settlement or not claimed—per contra...................................... Reserve for expenses of paying insured deposits......................... Deferred credits..................................................................................

T otal lia b ilitie s............................................................ C apital stock and su rp lu s (The entire capital stock and surplus is considered by the Corporation to constitute a reserve for future deposit insurance losses and related expenses with respect to insured banks. The Corporation estimates that the insured deposits in operating insured banks amounted to ap­ proximately $28.5 billion at June 30, 1942): Capital stock, without nominal or par value (nonvoting and not entitled to the payment of dividends)— Held by United States Government...................................... Held by Federal Reserve banks..............................................

Surplus— Net increase in surplus for the year ended June 30, 1942— Income— Deposit insurance assessments.... Interest earned on United States Government securities, less pro­ vision for amortization of premiums...................................... Other interest received (Note 1 )..

$ 282,421.30

750,700.15

316,907.72 132,937.04 13,337.76 

$ 1,496,303.97

$150,000,000.00 139,299,556.99

$289,299,556.99

$ 54,154,790.14

11,477,590.88 26,224.21 

$ 65,658,605.23

Expenses— Deposit insurance losses and ex­ penses (Note 2 )........................... $ 1,478,775.20 Administrative expenses................ 3,631,391.62 Furniture, fixtures and equipment purchased..................................... 33,046.99

$ 5,143,213.81

Net increase in surplus for the year ended June 30, 1942................... $ 60,515,391.42 Surplus balance, June 30, 1941................ 234,072,503.76

Surplus balance, June 30, 1942................

T otal capital stock an d su rp lu s..

294,587,895.18

583,887,452.17

$585,383,756.14

F e d e r a l Cr e d it U n io n Se c t io n (n o t e 4 )— C on tin u ed

Fund balance: Transferred from Farm Credit Administration........................... $ 233,186.82 Less—Expenses paid, May 16 to June 30, 1942..................... ...........44,338.03 Remainder ($18,805.80 is reserved for obligations incurred) $ 188,848.79 Transferred from Emergency Fund for the President, National Defense ($957.60 is reserved for obligations incurred)........... 3,350.00 192,198.79 $585,575,954.93

NOTES: (3) continued:

The Secretary of the Treasury, in his discretion, is authorized to purchase any such obligations of the Corporation; and he is authorized and directed to purchase obligations of the Corporation in an amount not to exceed $250,000,000 par value whenever in the judgment of the Board of Directors of the Corporation additional funds are required for insurance purposes.

The Reconstruction Finance Corporation, as provided in subsection (b) of section 5e of the Recon­ struction Finance Corporation Act, as amended, shall purchase at par value such obligations of the Corporation as are authorized to be issued, upon request of the Board of Directors of the Corporation, whenever in the judgment of said Board additional funds are required for insurance purposes; provided, that the Reconstruction Finance Corporation shall not purchase or hold at any time said obligations in excess of $250,000,000 par value. If the Reconstruction Finance Corporation fails for any reason to purchase any of the obligations of the Corporation, the Secretary of the Treasury is authorized and directed to purchase such obligations in an amount equal to the amount of such obligations the Recon­ struction Finance Corporation so fails to purchase. (4) The President of the United States, by Executive Order dated April 27, 1942, ordered that all functions, powers and duties of the Farm Credit Administration and of the Governor thereof under the Federal Credit Union Act, as amended, be transferred to the Federal Deposit Insurance Corporation effective as of May 16, 1942. The functions of the Federal Credit Union Section include the approval of applications and the issuance of organization certificates to Federal Credit Unions, the supervision thereof and the field examinations of the financial reports of such Unions.

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Federal Reserve Bank of St. Louis
PART TWO

DEPOSIT INSURANCE AND BANKING DEVELOPMENTS

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A ss e t s, Lia b il it ie s, a n d Ca pit a l of In s u r e d Com m ercial B a n k s

On December 31, 1942, assets and liabilities of insured commercial

banks were larger in amount than ever before. These banks held all

but 2 percent of the reported amount of assets and deposits of all

commercial banks.

The expansion during 1942 in both assets and deposits of insured

commercial banks amounted to about $19 billion. The rate of increase

in assets and deposits was about three times the average annual rate

for the preceding eight years of deposit insurance. The increase reflected primarily a growth in holdings of obligations of the United

States Government of $20 billion. Cash assets (reserves, balances

with other banks, and items in process of collection) increased by

more than $2 billion. The remaining assets, consisting chiefly of

loans, showed a net reduction of nearly $3 billion, or 10 percent.

Changes during 1942 in the principal assets of insured commercial

banks are shown in Table 11.

Table 11. CHANGES DURING 1942 IN ASSETS OF INSURED COMMERCIAL BANKS

Amount (millions of dollars) Percentage distribution

Dec. 31, 1942 Dec. 31, 1941

Change during

year

Dec. 31, 1942 Dec. 31, 1941

T o ta l assets1............................................... 95,459 76,831 2+19,153 100.0% 100.0%

T o tal cash assets an d U. S. G overn­ m e n t securities1........................... 68,306 1,307 46,841, 2+21,990 71.6 61.0 Currency and coin............................... 1,359 -52 1.4 1.8 Balances with banks including re­ serve balances1................................. 22,170 20,981 2+1,714 23.2 27.3 Cash items in process of collection.. 4,117 3,453 + 664 4.3 4.5 U .S . Government securities............. 40,712 21,048 + 19,664 42.7 27.4

T otal invested assets o th e r th a n U. S. G overnm ent sec u rities... 27,153 29,990 -2,837 28.4 39.0 Other securities.................................... 6,632 6,985 -353 6.9 9.1 Loans and discounts........................... 18,906 21,262 -2,356 19.8 27.7 Fixed and miscellaneous assets........ 1,615 1,743 -128 1.7 2.2

1 Excludes reciprocal balances of $525 million on December 31, 1942; includes reciprocal balances on December 31, 1941. * Includes change in reciprocal balances.

Detailed figures—See Table 106, page 80.

While assets and deposits increased by 25 percent and 27 percent,

respectively, total capital accounts shown on the banks' books increased by only 3 percent during the year. This increase, chiefly from

earnings, was at only a slightly higher rate than during the preceding

eight years of deposit insurance. At the close of the year, capital

31

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32 FEDERAL DEPOSIT INSURANCE CORPORATION

accounts amounted to 8.0 percent of deposits and 7.4 percent of

assets, compared with 9.9 percent and 8.9 percent, respectively, a year earlier.

Quality of assets. On the whole the quality of the banks' assets was considered by examiners to be better than ever before. Not only

have the increases been primarily in holdings of United States Government obligations and of cash assets but both the amount and proportion of the remaining assets criticized by examiners are lower than ever before during the existence of this Corporation. Improvement

was noted in loans, securities, and real estate. The figures are shown

in Table 12.

Table 12. CLASSIFICATION OF ASSETS OF INSURED COMMERCIAL BANKS, 

E x a m i n a t i o n s i n 1939-1942

(Amounts per $100 of book value)

Total assets Securities Loans Fixed and miscellaneous assets

Assets criticized 1942............................................... $ 2.29 $ 1.91 $ 4.13 $16.61 1941............................................... 3.05 3.06 4.74 20.54 1940............................................... 4.26 4.82 6.84 24.33 1939............................................... 5.62 6.04 8.63 26.67

Examiners’ deductions (net) 1942............................................... 0.16 0.07 0.32 1.74 1941............................................... .22 .14 .39 1.78 1940............................................... .34 .26 .66 2.23 1939............................................... .52 .38 .98 2.81

Substandard 1942............................................... 2.13 11.84 3.81 14.87 1941............................................... 2.83 2.92 4.35 18.76 1940............................................... 3.92 4.56 6.18 22.10 1939............................................... 5.10 5.66 7.65 23.86

1 For securities other than those of the United States Government the figure is 9.24. 

Detailed figures for 19^2—See Tables 107 and 108, pages 82 and 83.

The proportion of assets which were criticized by examiners decreased in about two-thirds of the banks between the examinations

of 1941 and 1942. In many banks the reductions were substantial.

However, in about 300 banks substantial increases were reported in

the proportion of assets classified as substandard. The deterioration

in the asset position of these 300 banks in part reflected the repayment

of good loans by customers out of their larger incomes but for the

most part was due to the acquisition by the banks of assets which

were of substandard quality at the time of acquisition. A distribution

of banks according to the percentage of assets which were classified

as substandard in the examinations of 1941 and 1942 is shown in

Table 13.

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ASSETS, LIABILITIES, AND CAPITAL OF INSURED COMMERCIAL BANKS 33

T a b le 13. D ist r ib u tio n of In su r e d Commercial B a n k s E x a m ine d in 1942

According to Su bsta n d a r d Assets R atio, E x a m ina tio n s in 1941 a n d 1942

Number of banks Percentage distribution

1942 1941 1942 1941

All ban k s1.............................................................. 13,125 13,125 100.0% 100.0%

B anks w ith no su b sta n d a rd a sse ts---- 714 505 5.4 3.9

B anks w ith su b sta n d a rd assets per $100 of appraised value of assets of—2 Less than $5.00.................................................. 9,317 7,890 71.0 60.1 $5.00 to $9.99..................................................... 2,200 3,020 16.8 23.0 $10.00 to $14.99................................................. 604 1,111 4.6 8.5

$15.00 to $19.99................................................. 179 355 1.4 2.7 $20.00 to $24.99................................................. 67 150 .5 1.1 $25.00 or m ore................................................... 44 94 .3 .7

1 Excludes banks operating less than the full year preceding either examination or whose operations were materially affected by mergers. 2 The appraised value of assets represents an estimated average for each individual bank of the values over the year immediately preceding the date of examination. See pages 64-65.

Capital. Although net sound capital amounted to 98.1 percent of

total capital accounts of all insured commercial banks in 1942—a

new high—the rapid growth of assets in 1941 and 1942 brought a

further decline in the ratio of net sound capital to the appraised value

of assets.1 At the time of examinations in 1942, net sound capital

amounted to 8.4 percent of appraised value of assets of all insured commercial banks, the lowest figure since the crisis year 1933. It is

estimated that by the close of 1942 net sound capital of insured

commercial banks had declined to less than 7.5 percent of the ap­ praised value of assets.

An increasing proportion of insured commercial banks are showing low capital ratios, the shifts in 1942 reflecting an acceleration of a

trend that has existed for a number of years. In examinations made

during 1942, nearly one-third of the banks holding almost three-fourths of the deposits had net sound capital amounting to less than 10 percent of the appraised value of assets.2 Sixty-four of these banks with total

deposits of $1.7 billion had net sound capital of less than 5 percent

of the appraised value of their assets. In addition, thirty-two banks

with total deposits of $241 million had no net sound capital except

that represented by the investment of the Reconstruction Finance

Corporation. Distributions of insured commercial banks according

to their capital ratios, in examinations made each year since 1939,

are shown in Table 14.

1 Net sound capital is obtained by subtracting examiners’ deductions from total capital account or by subtracting the bank’s liabilities from the appraised value of assets. See also page 65. 2 The appraised value of assets used as the base for this ratio represents an estimated average of the values in each individual bank over the year immediately preceding the date of examination. If the base of the ratio had represented the appraised value as of the date of examination, 44 percent instead of 33 percent would show ratios of less than 10 percent.

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34 FEDERAL DEPOSIT INSURANCE CORPORATION

T a b le 14. PERCENTAGE DISTRIBUTION OF NUMBER AND DEPOSITS OF

I n s u r e d C o m m e r c ia l B a n k s A c c o r d in g t o N e t S o u n d C a p i t a l R a t i o 

E x a m i n a t i o n s i n 1939-1942

All

Banks with net sound capital per $100 of appraised value of assets of—1

banks $0.00 or less $0.01 to $9.99 $10.00 to $19.99 $20.00 or 

more

N um ber of b a n k s: 1942..................... 100.0% 32.9% 60.6% 6.5% 1941..................... 100.0 ’' *.i% 22.4 67.7 9.8 1940..................... 100.0 .1 21.7 66.5 11.7 1939..................... 100.0 .1 21.3 65.6 13.0

Deposits of b a n k s: 1942..................... 100.0 71.2 27.1 1.7 1941..................... 100.0 ’(*)* 64.5 33.3 2.2 1940..................... 100.0 .1 63.9 33.5 2.5 1939..................... 100.0 (’) 58.3 38.7 3.0

1 In order to eliminate the influence of seasonal fluctuations in total assets upon the ratios for in ­ dividual banks, the base used in the computation of the ratio for individual banks for the most part consisted of the estimated average, over the year period preceding the date of examination, of total assets—adjusted for examiners’ net deductions. In view of the growth in total assets over each period covered by this averaging process, this table tends to represent the condition of banks considered as a whole at a period close to the beginning of the respective years shown. (If assets as of the date of ex­ amination had been used in computing the ratio, over 1,500—or 12 percent—more banks would have shown net sound capital ratios in 1942 of less than $10 per $100 of appraised value of assets.) 2 Less than .05 percent.

Detailed figures for 191*2—See Tables 109 and 110, pages 84 and 85.

As a result of the slight increase in total capital accounts and the reduction of almost $3 billion in assets other than cash assets and U. S. securities, an increase was recorded during the calendar year

1942 in the percentage of total capital accounts to loans, securities other than U. S. Government, and fixed and miscellaneous assets from 23 to 26 percent. As compared with past periods of prosperous

business this is not a wide margin of capital protection against assets of this type. Post-war expansion in the extension by banks of credit to agriculture, industry, and commerce will narrow the margin

considerably.

The amount of net sound capital is also significant in relation to

the amount of fixed and substandard assets held by the banks. Fixed

assets are bank premises owned, furniture and fixtures, and other real

estate. Substandard assets are those considered by examiners not to be

of proper banking quality. In nearly 8,000 of the banks examined

by the Federal authorities in 1942, holding over half of the deposits

of all insured commercial banks, fixed and substandard assets

amounted to less than 40 percent of net sound capital. However, in

about 850 banks holding $3.4 billion of deposits, fixed and substandard assets exceeded net sound capital. In 99 of these banks,

with total deposits of more than $400 million, the amount of fixed

and substandard assets was more than double the amount of net

sound capital. In all such cases under its direct supervision, the

Corporation has repeatedly urged that substandard assets be written

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EARNINGS OF INSURED COMMERCIAL BANKS 35

down or disposed of and all net profits be retained in the banks’

capital accounts until the substandard assets have been eliminated or substantial amounts have been written off of the banks’ books.

The figures are shown in Table 15.

T a b le 15. DISTRIBUTION OF NUMBER AND DEPOSITS OF INSURED COMMERCIAL

B a n k s A c c o r d in g t o R a t io o f F ix e d a n d S u b s t a n d a r d A s s e t s t o N e t S o u n d

C a p it a l, E x a m in a t io n s i n 1942

Number of banks Deposits

Number Percentage distribution

Amount (in millions of dollars)

Percentage distribution

All b a n k s............................................... 13,303 100.0% 72,755 100.0%

B anks w ith fixed and su b ­ sta n d ard assets as p e rc en t­ age of n e t sound capital of— Less than 20% ................................... 3,613 27.2 18,711 25.7 20% to 39% ....................................... 4,322 2,492 32.5 24,663 33.9 40% to 59% ....................................... 18.7 16,162 22.2

60% to 79% ....................................... 1,368 10.3 7,183 9.9 80% to 99%....................................... 651 4.9 2,640 3.6 100% to 199%................................... 758 5.7 2,978 4.1 200% or more.................................... 99 .7 418 .6

E a r n in g s of In s u r e d Com m ercial B a n k s

Total current operating earnings of commercial banks were larger in 1942 than in any other year since 1934, the first year of Federal

insurance of deposits. Operating expenses were also heavier but the increase did not offset the larger earnings and net current operating earnings of insured commercial banks after expenses and both before

and after taxes were higher in 1942 than in any other year of deposit insurance. The increase in net current operating earnings was chiefly in the larger banks—those with deposits of more than $50,000,000

each—most of the smaller banks showing smaller net earnings in

1942 than in the immediately preceding years. Earnings, expenses,

and taxes of insured commercial banks for each year, 1934 to 1942,

are shown in Table 16.

Net profits after charge-offs and taxes were higher in 1942 than in

any other year of deposit insurance, except 1936 and 1941. Dividends

were slightly smaller in amount in 1942 than in other recent years

and the amount of profits added to the banks’ capital accounts in

1942 was about the same as in 1941. Net profits, dividends, and

additions of profits to capital of insured commercial banks during

the years 1934-1942, inclusive, are shown in Table 17.

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36 FEDERAL DEPOSIT INSURANCE CORPORATION

T a b le 16. E a r n i n g s , E x p e n s e s , a n d T a x e s o f I n s u r e d 

C o m m e r c ia l b a n k s , 1934-1942

(In millions of dollars)

Year

Total current operating earningsExpenses other than taxes

Net current operating earnings before taxes

All taxes

Net current operating earnings after taxes

1942.......................... 1,791 1,125 666 177 489 1941........................... 1,730 1,113 617 153 464 1940........................... 1,631 1,070 561 123 438 1939........................... 1,605 1,053 552 107 445 1938........................... 1,584 1,055 529 103 426

1937........................... 1,634 1,059 575 108 467 1936........................... 1,567 1,028 539 98 441 1935........................... 1,486 1,004 482 79 403 1934........................... 1,518 1,040 478 77 401

Detailed figures for 191>2—See Table 117, page 92.

The increase in earnings of the large banks, and of all insured

commercial banks combined, reflected chiefly receipts of interest on

the banks' expanded holdings of U. S. Government obligations. Total

income from loans and from other sources was reduced at most banks. In the smaller banks, where income from loans is a much more important source of earnings than in the larger banks, the reduction in

income from loans was not fully compensated for by interest received on larger holdings of U. S. Government obligations. The reduction in net earnings in the small banks and the increase in net earnings of the large banks reversed a tendency observed in previous years,

so that in 1942, for the first time since the establishment of Federal

T a b le 17. N e t E a r n i n g s , C h a r g e - o f f s , P r o f i t s , a n d D i v id e n d s o f 

I n s u r e d C o m m e r c ia l B a n k s , 1934-1942

(In millions of dollars)

Year

Net current operating earnings after taxes

Net charge- offs1

Net profits after charge-offs and taxes

Dividends*

Profits added to capital

1942........................... 489 48 441 228 213 1941........................... 464 9 455 238 217 1940........................... 438 37 401 237 164 1939........................... 445 57 388 232 156 1938........................... 426 126 300 222 78

1937........................... 467 86 381 226 155 1936........................... 441 -83 524 223 301 1935........................... 403 196 207 207 1934........................... 401 741 -340 188 -528

1 Book value of assets charged off, minus recoveries on assets previously charged off, and profits on securities sold. 2 Preferred and common cash dividends and interest paid on capital.

Detailed figures for 19k t—See Table 117, page 92.

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EARNINGS OF INSURED COMMERCIAL BANKS 37

insurance of deposits, the rates of net earnings on total capital accounts of the smaller banks on the average did not exceed those of the larger banks. The rates on total capital accounts of net current operating earnings before payment of taxes and of net profits after taxes of insured commercial banks grouped by size of bank are shown

for 1941 and 1942 in Table 18.

Table 18. N e t E a r n in g s a n d N e t P r o f it s P e r $100 o f T o t a l

C a p it a l A c c o u n t s o f I n s u r e d C o m m e r c ia l B a n k s, 1941 a n d 1942

BANKS GROUPED BY AMOUNT OF DEPOSITS

Net current operating earnings before taxes

Net profits after charge-offs and taxes

1942 1941 1942 1941

All b a n k s............................................................... $9.45 $9.04 $6.26 $6.66

B anks w ith deposits of— $250,000 or less.................................................. 7.96 9.76 5.78 6.96 $250,000 to $500,000........................................ 9.12 11.00 6.80 8.32 $500,000 to $1,000,000..................................... S.57 10.89 6.41 7.97 $1,000,000 to $2,000,000................................. 9.48 10.19 5.69 7.04

$2,000,000 to $5,000,000................................. 9.36 9.58 5.37 6.16 $5,000,000 to $10,000,000............................... 9.04\ 4.781 $10,000,000 to $50,000,000............................. 9.54/ 9.59 5.72/ 6.37

More than $50,000,000.................................... 9.50 8.35 6.77 6.62

As in previous years, rates of net profits after charge-offs and taxes

tended to be higher in the smaller banks than in the larger banks, although considerably lower in 1942 than in 1941. However, in banks

with deposits of more than $50,000,000 each, the rate of net profits averaged higher in 1942 than in 1941 and higher than in most other banks.

Sources and rates of incom e. The income derived by banks from loans was somewhat smaller in 1942 than in 1941 but was substantially larger than in any other year of deposit insurance. The volume of

loans held declined during the year, reflecting curtailment in loans

to non-war businesses and to consumers, as well as some liquidation

of large war loans for construction projects. The average rate of

income received on loans in 1942 was 4.08 percent, the lowest computed rate of any year of deposit insurance. The lower average rate

received in 1942 appears to be due to the contraction of loans which

bore higher rates of interest, to a considerable extent consumer loans,

rather than to a general decline in rates of interest on loans.

The amount of interest and dividends received on securities was

about 20 percent larger in 1942 than in 1941. This increase was in

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38 FEDERAL DEPOSIT INSURANCE CORPORATION

ment. The average yield on securities held was 1.78 percent in 1942, lower than in any of the past 8 years and compared with 1.95 percent

in 1941. This decline may be attributed to the fact that the major

part of the expansion in bank holdings of securities was in issues on which the yield is relatively low—bills, certificates of indebtedness,

and short-term Treasury notes. Holdings of issues upon which yields

are higher—securities of States, counties, and political subdivisions,

and corporate enterprises—declined.

Current operating income from sources other than interest on loans

and securities was slightly smaller than in 1941 but was larger than

in any other year of Federal insurance of deposits. Income from these

sources, which include service charges on deposit accounts, commissions, fees, collections, exchange charges, rent, and earnings of trust

and foreign departments, amount to about one-fifth of the operating

earnings of commercial banks.

The amounts of income received by insured commercial banks from

loans, securities, and other sources, and the rates of income on loans

and on securities are shown in Table 19.

Table 19. Am o u n t s a n d R a t e s o f I n c o m e R e c e iv e d , a n d R a t e o f

I n t e r e s t P a id , b y I n s u r e d C o m m e r c ia l B a n k s, 1934-1942

Year

Total current operating earnings (millions of dollars) from—

Income on loans per $100 of loans1 j

i

Income on securities per $100 of securities1

1

Interest paid per $100 of time and savings deposits1 Loans Securities Other

sources

1942....................... 817 610 364 $4.08 i| 2$1.78 $1.10 1941....................... 848 509 373 4.27 1.95 1.20 1940....................... 769 500 363 4.41 2.16 1.30 1939....................... 727 522 357 4.46 2.38 1.43 1938....................... 705 532 347 4.36 2.56 1.55

1937....................... 710 572 352 4.28 ! 2.68 1.62 1936....................... 663 574 330 4.34 2.66 1.72 1935....................... 643 548 295 4.40 2.87 2.01 1934....................... 691 550 278 4.63 3.17 2.40

1 Loans, securities, and deposits are averages of figures reported at beginning, middle, and end of year by banks submitting statements of assets and liabilities. 2 For 1942, average securities are based on amounts reported at end of month in the Treasury survey of ownership of Government securities as well as upon amounts reported at call dates.

Interest on tim e and savings deposits. The average rate of

interest paid on time and savings deposits by insured commercial

banks was 1.1 percent in 1942, the lowest average rate since deposits

were insured with the Federal Deposit Insurance Corporation.

Figures for each year from 1934 to 1942, inclusive, are shown in

Table 19.

Of the 13,226 insured commercial banks for which figures are

available, 3,172 either had no time or savings deposits or paid less

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EARNINGS OF INSURED COMMERCIAL BANKS 39

than 1 percent interest on such deposits, 7,341 paid from 1 to 2 percent interest, and 2,713 paid more than 2 percent interest. In general, the banks which paid the high rates of interest on time deposits were the banks with the higher rates of net profits. These banks generally reported a large proportion of assets in loans bearing higher than average rates of interest. Table 20 shows the average rates of net profits of the banks grouped according to rates of interest on time and sav­ ings deposits.

Table 20. AVERAGE Ra tes OF N et P rofits ON TOTAL CAPITAL ACCOUNTS OF 

I n su r e d Commercial B a n k s Gro u pe d by R ate of In te r est P aid o n 

T im e a n d Sa v in g s D epo sit s, 1942

Number of banks1

Net profits8 per $100 of total capital accounts3

All b a n k s.................................................................................................. 13,226

470

$6.74

B anks w ith no tim e and savings d ep o sits........................... 6.77

B anks paying in te re st per $100 of tim e and savings deposits3 of— N one....................................................................................................... 57 4.29 Less than $0.50.................................................................................... 233 6.15 $0.50 to $0.99....................................................................................... 2,412 5.91

$1.00 to $1.49....................................................................................... 3,221 6.18 $1.50 to $1.99........................................................................................ 4,120 6.97 $2.00 or more........................................................................................ 2,713 7.88

1 Excludes banks submitting reports covering less than the full year’s operations or materially affected by mergers or unusual transactions. Trust companies not engaged in deposit banking also ex­ cluded. 2 After charge-offs, recoveries, and payment of taxes. * Averages of figures for call dates.

Interest in excess of 2 percent was paid by 1,927 banks which re­ ported more than 5 percent net profits on their capital, by 681 banks

which reported net profits after taxes of less than 5 percent on their

capital, and by 105 banks which reported net losses. Of the 1,927 banks, 806 reported more than 10 percent net profits on their capital.

Charge-offs and losses on assets. In 1942, insured commercial

banks made provision for losses by charge-offs or addition to valuation

allowances at the rate of one-third of 1 percent of total assets. This

may be compared with an annual average of two-thirds of 1 percent

of total assets during the preceding five years, and an average of

1.5 percent per year during the first three years of deposit insurance.

The high rate of charge-offs during the first three years of deposit

insurance was due to the elimination of assets upon which losses had

accumulated prior to and during the depression. Recoveries in 1942

on losses previously charged off, though smaller in actual amount than

in recent years, were larger relative to the amount of charge-offs.

In consequence, the rate of net charge-offs in 1942 was about oneseventh of 1 percent compared with an average of three-eighths of

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40 FEDERAL DEPOSIT INSURANCE CORPORATION

1 percent during the preceding five years and about 1 percent during

the first three years of deposit insurance.

Charge-offs on loans were at the rate of only two-fifths of 1 percent in 1942, compared with three-fourths of 1 percent during the preceding

five years, and 2.5 percent during the first three years of deposit

insurance. The present rate of charge-offs of two-fifths of 1 percent of

loans may be compared with an annual average of more than 1 percent

in the case of national banks over the 25-year period, 1918-1942.

The rate of charge-offs in 1942 on securities other than obligations

of the U. S. Government was very much higher than the rate of

charge-offs on loans, but was lower than in previous years. The rate

of charge-offs on such securities in 1942 was 1.8 percent, which may

be compared with about 2.8 percent per year during the preceding

five years. Recoveries on securities which had been previously charged

off were sufficient to bring the rates of net charge-offs down to slightly

less than 1 percent of the book value of securities held in 1942, compared with about 1.8 percent during the preceding five years.

The rates of charge-offs on total assets, and on significant groups of

assets, are shown in Table 21.

T a b le 2 1 . R a t e s of C h a r g e-o f f s o n A s se t s of I n s u r e d

C om m er c ia l B a n k s, 19 3 4 -1 94 21

On total assets On total loans On total securities

On securities other than U. S. Gov't.

On fixed assets2

1942Charge-offs............................... $0.33 $0.40 $0.33 $1.77 $5.02 Recoveries................................ .19 .34 .15 .82 2.29 Net charge-offs........................ .14 .06 .18 .95 2.73

1937-1941 Charge-offs............................... .65 .75 .85 2.77 4.81 Recoveries................................ .28 .41 .29 .95 2.23 Net charge-offs........................ .37 .34 .56 1.82 2.58

1934-1936 Charge-offs............................... 1.47 2.51 1.36 3.90 4.99 Recoveries3............................... .45 .55 .55 1.58 1.93 Net charge-offs........................ 1.02 1.96 .81 2.32 3.06

1 Amounts of gross losses, recoveries, and net losses on assets designated for calendar years indicated per $100 of total of the corresponding asset averages for beginning, middle and end of each year. 2 Banking house, furniture and fixtures, and other real estate. 3 Recoveries on securities of banks not submitting reports to FDIC were not reported separately from profits on securities sold in 1934 and 1935. Recoveries on securities were estimated to be about 38 percent of total recoveries and profits on securities.

Dividends paid by banks. In the case of insured commercial

banks the proportion of banks paying dividends dropped off slightly

in 1942 after showing a rise in recent years. The figures are as follows:

1942 86 p ercen t

1941 87 p ercen t

1940 85 p ercen t

1939 82 p ercen t

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INSURED MUTUAL SAVINGS BANKS 41

In general, the banks with the highest rates of net profits retained larger proportions of their profits as additions to capital than did the banks with lower rates of net profits.

On December 31, 1942, the Federal Deposit Insurance Corporation

was insuring deposits in 56 of the 546 mutual savings banks in the

country. These banks operated 35 of the 138 branches of mutual

savings banks. Four banks operating two branches, with deposits

totaling about $243 million, were admitted to insurance during the

year. The insured mutual savings banks held deposits of $2.0 billion

on December 31, 1942, or 19 percent of the $10.7 billion of deposits

in all mutual savings banks.

Total assets of the 53 mutual savings banks insured throughout the

year increased slightly from $1,958 million on December 31, 1941,

to $1,977 million on December 31, 1942, reflecting increases in depositors' accounts of about $16 million and a net addition to capital

from profits of about $3 million. Holdings of obligations of the U. S. Government increased by $124 million, or 20 percent, during the

year and amounted to $753 million in the 53 banks on December 31,

1942. All other types of assets declined during the year. At the end

of the year for the first time, the banks reported a larger proportion

of assets invested in U. S. Government securities than in any other

type of asset.

Total capital accounts, which consist, for mutual savings banks,

of surplus and reserve accounts, and, in some banks, of capital notes and debentures also, increased by $3.0 million during the year in the

53 banks insured throughout the year. The addition to capital from

profits of $3.6 million was offset by the retirement of capital notes and

debentures held by the Reconstruction Finance Corporation in 16 banks of $0.6 million, or 10 percent of the book value (6 percent of

retirable value) of Reconstruction Finance Corporation holdings in

insured mutual savings banks.

The average rate of dividends or interest paid depositors in insured

mutual savings banks was 1.62 percent in 1942, the lowest average

rate since 1935, when the data first became available. The following

figures show the dividends and interest reported for the year as percentage of total deposits held at the end of the year, for each year

from 1935 to 1942:

In s u r e d M u t u a l Sa v in g s B a n k s

1942

1941

1940

1939

1.62%

1.66%

1.73%

1.88%

1938

1937

1936

1935

1.91%

1.92%

1.96%

2.26%

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42 FEDERAL DEPOSIT INSURANCE CORPORATION

Figures showing earnings, expenses, and dividends of insured mutual

savings banks for 1942 are presented in Table 117, page 92. Due to the

small number of banks, these data, relating only to insured mutual

savings banks, may not be characteristic of the operations of all

mutual savings banks in the country.

Condensed statements of assets and liabilities of both insured and

noninsured mutual savings banks for December 31, 1942, will be

found in Table 105, page 79.

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PART THREE

SPECIAL REPORTS

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S p e c i a l r e p o r t s

It is the policy of the Corporation to present in this section special

studies prepared for the administrative use of the Corporation but

which also possess general interest. No such studies are available

for publication at this time.

45

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PART FOUR

LEGISLATION, REGULATIONS, AND INSTRUCTIONS

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Le g i s l a t i o n R e l a t i n g t o I n s u r e d B a n k s

o r t h e C o r p o r a t i o n

d e p o s i t s o f p u b l i c m o n e y

[Pu b l ic L a w 603— 77th C o n g r e ss]

[Ch a p t e r 40 4— 2d Se s s io n ]

[S. 2250]

AN ACT

To mobilize the productive facilities of small business in the interests of successful

prosecution of the war, and for other purposes.

Be it enacted by the Senate and House of Representatives of the United States of

America in Congress assembledt

* * * * *

Sec. 10. All insured banks designated for that purpose by the Secretary of the

Treasury shall be depositaries of public money of the United States (including,

without being limited to, revenues and funds of the United States, and any funds

the deposit of which is subject to the control or regulation of the United States or

any of its officers, agents, or employees, and Postal Savings funds), and the Secretary

is hereby authorized to deposit public money in such depositaries, under such regulations as may be prescribed by the Secretary; and they may also be employed as

financial agents of the Government; and they shall perform all such reasonable

duties, as depositaries of public money and financial agents of the Government as

may be required of them. The Secretary of the Treasury shall require of the insured

banks thus designated satisfactory security by the deposit of United States bonds or

otherwise, for the safekeeping and prompt payment of public money deposited with

them and for the faithful performance of their duties as financial agents of the

Government: Provided, That no such security shall be required for the safekeeping

and prompt payment of such parts of the deposits of the public money in such

banks as are insured deposits and each officer, employee, or agent of the United

States having official custody of public funds and lawfully depositing the same in

an insured bank shall, for the purpose of determining the amount of the insured

deposits, be deemed a depositor in such custodial capacity separate and distinct from

any other officer, employee, or agent of the United States having official custody

of public funds and lawfully depositing the same in the same insured bank in custodial capacity. Notwithstanding any other provision of law, no department, board,

agency, instrumentality, officer, employee, or agent of the United States shall issue

or permit to continue in effect any regulations, rulings, or instructions, or enter

into or approve any contracts or perform any other acts having to do with the deposit,

disbursement, or expenditure of public funds, or the deposit, custody, or advance

of funds subject to the control of the United States as trustee or otherwise which

shall discriminate against or prefer national banking associations, State banks members of the Federal Reserve System, or insured banks not members of the Federal

Reserve System, by class, or which shall require those enjoying the benefits, directly

or indirectly, of disbursed public funds so to discriminate. All Acts or parts thereof

in conflict herewith are hereby repealed. The terms “insured bank” and “insured

deposit” as used in this Act shall be construed according to the definitions of such

terms in the Act of August 23, 1935 (49 Stat. 684), as amended (U. S. C., title 12,

sec. 264).

* * * * *

Approved, June 11,1942.

49

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50 FEDERAL DEPOSIT INSURANCE CORPORATION

CODIFICATION OF ADMINISTRATIVE REGULATIONS

[Pu b l ic L a w 79 6— 77th C o n g r e ss]

[Ch a p t e r 717— 2d Se s s io n ]

[H. R. 7162]

AN ACT

To suspend for the duration of the war certain requirements of section 11 (a) of

the Federal Register Act of 1935.

Be it enacted by the Senate and House of Representatives of the United States of

America in Congress assembled, That the provisions contained in the first sentence

of section 11 (a) of the Federal Register Act (Act of July 26, 1935, 49 Stat. 503, as

amended, U. S. C., title 44, sec. 311) are hereby suspended until such time after the

termination of the present war as the Administrative Committee of the Federal

Register shall determine. The publication of a cumulative supplement to the Code

of Federal Regulations instead of a new codification, prepared under the supervision

of the Division of the Federal Register pursuant to the provisions of subsection 11 (c)

and 11 (d) of the Federal Register Act, is hereby authorized and required.

Sec. 2. The first sentence of section 11 (a) of the Federal Register Act (Act of

July 26,1935, 49 Stat. 503, as amended, U. S. C., title 44, sec. 311) is hereby amended

by inserting the phrase “or on the same date of every fifth year thereafter” before

the period at the end thereof.

Approved, December 10, 1942.

COORDINATION AND REDUCTION OF REPORTING

TO FEDERAL AGENCIES

[Pu b l ic L a w 831— 7 7 th C o n g r e s s ]

[Ch a p t e r 811— 2d Se s s io n ]

[S. 1666]

AN ACT

To coordinate Federal reporting services, to eliminate duplication and reduce the

cost of such services, and to minimize the burdens of furnishing information to

Federal agencies.

Be it enacted by the Senate and House of Representatives of the United States of

America in Congress assembled, That this Act may be cited as the “Federal Reports Act of 1942”.

Sec. 2. It is hereby declared to be the policy of the Congress that information

which may be needed by the various Federal agencies should be obtained with a

minimum burden upon business enterprises (especially small business enterprises)

and other persons required to furnish such information, and at a minimum cost to

the Government, that all unnecessary duplication of efforts in obtaining such information through the use of reports, questionnaires, and other such methods

should be eliminated as rapidly as practicable; and that information collected and

tabulated by any Federal agency should insofar as is expedient be tabulated in a

manner to maximize the usefulness of the information to other Federal agencies

and the public.

Sec. 3. (a) With a view to carrying out the policy of this Act, the Director of the

Bureau of the Budget (hereinafter referred to as the “Director”) is directed from

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LEGISLATION 51

time to time (1) to investigate the needs of the various Federal agencies for information from business enterprises, from other persons, and from other Federal agencies; (2) to investigate the methods used by such agencies in obtaining such information; and (3) to coordinate as rapidly as possible the information-collecting services of all such agencies with a view to reducing the cost to the Government of

obtaining such information and minimizing the burden upon business enterprises

and other persons, and utilizing, as far as practicable, the continuing organization,

files of information and existing facilities of the established Federal departments

and independent agencies.

(b) If, after any such investigation, the Director is of the opinion that the needs

of two or more Federal agencies for information from business enterprises and other

persons will be adequately served by a single collecting agency, he shall fix a time

and place for a hearing at which the agencies concerned and any other interested

persons shall have an opportunity to present their views. After such hearing, the

Director may issue an order designating a collecting agency to obtain such information for any two or more of the agencies concerned, and prescribing (with reference

to the collection of such information) the duties and functions of the collecting

agency so designated and the Federal agencies for which it is to act as agent. Any

such order may be modified from time to time by the Director as circumstances

may require, but no such modification shall be made except after investigation and

hearing as hereinbefore provided.

(c) While any such order or modified order is in effect, no Federal agency covered

by such order shall obtain for itself any information which it is the duty of the collecting agency designated by such order to obtain.

(d) Upon the request of any party having a substantial interest, or upon his own

motion, the Director is authorized within his discretion to make a determination as

to whether or not the collection of any information by any Federal agency is necessary for the proper performance of the functions of such agency or for any other

proper purpose. Before making any such determination, the Director may, within

his discretion, give to such agency and to other interested persons an adequate

opportunity to be heard or to submit statements in writing. To the extent, if any,

that the Director determines the collection of such information by such agency is

unnecessary, either because it is not needed for the proper performance of the

functions of such agency or because it can be obtained from another Federal agency

or for any other reason, such agency shall not thereafter engage in the collection

of such information.

(e) For the purposes of this Act, the Director is authorized to require any Federal

agency to make available to any other Federal agency any information which it has

obtained from any person after the date of enactment of this Act, and all such

agencies are directed to cooperate to the fullest practicable extent at all times in

making such information available to other such agencies: Provided, That the provisions of this Act shall not apply to the obtaining or releasing of information by

the Bureau of Internal Revenue, the Comptroller of the Currency, the Bureau of

the Public Debt, the Bureau of Accounts, and the Division of Foreign Funds

Control of the Treasury Department: Provided further, That the provisions of this

Act shall not apply to the obtaining by any Federal bank supervisory agency of

reports and information from banks as provided or authorized by law and in the

proper performance of such agency’s functions in its supervisory capacity.

Sec. 4. (a) In the event that any information obtained in confidence by a Federal

agency is released by that agency to another Federal agency, all the provisions of law

(including penalties) which relate to the unlawful disclosure of any such information

shall apply to the officers and employees of the agency to which such information

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52 FEDERAL DEPOSIT INSURANCE CORPORATION

is released to the same extent and in the same manner as such provisions apply to

the officers and employees of the agency which originally obtained such information;

and the officers and employees of the agency to which the information is released

shall in addition be subject to the same provisions of law (including penalties)

relating to the unlawful disclosure of such information as if the information had

been collected directly by such agency.

(b) Information obtained by a Federal agency from any person or persons may,

pursuant to this Act, be released to any other Federal agency only if (1) the information shall be released in the form of statistical totals or summaries; or (2) the information as supplied by persons to a Federal agency shall not, at the time of collection, have been declared by that agency or by any superior authority to be

confidential; or (3) the persons supplying the information shall consent to the release

of it to a second agency by the agency to which the information was originally supplied; or (4) the Federal agency to which another Federal agency shall release the

information has authority to collect the information itself and such authority is

supported by legal provision for criminal penalties against persons failing to supply

such information.

Se c. 5. No Federal agency shall conduct or sponsor the collection of information,

upon identical items, from ten to more persons (other than Federal employees considered as such) unless, in advance of adoption or revision of any plans or forms to

be used in such collection,

(a) The agency shall have submitted to the Director such plans or forms, together

with copies of such pertinent regulations and other related materials as the Director

shall specify; and

(b) The Director shall have stated that he does not disapprove the proposed

collection of information.

Se c. 6. The Director is authorized to make such rules and regulations as may be

necessary to carry out the provisions of this Act.

Se c. 7. As used in this Act—

(a) The term “Federal agency” means any executive department, commission,

independent establishment, corporation owned or controlled by the United States,

board, bureau, division, service, office, authority, or administration in the executive

branch of the Government; but such terms shall not include the General Accounting

Office nor the governments of the District of Columbia and of the Territories and

possessions of the United States, and the various subdivisions of such governments.

(b) The term “person” means any individual, partnership, association, corporation, business trust, or legal representative, any organized group of persons, any

State or Territorial government or branch thereof, or any political subdivision of

any State or Territory or any branch of any such political subdivision.

(c) The term “information” means facts obtained or solicited by the use of written

report forms, application forms, schedules, questionnaires, or other similar methods

calling either (1) for answers to identical questions from ten or more persons other

than agencies, instrumentalities, or employees of the United States or (2) for answers to questions from agencies, instrumentalities, or employees of the United

States which are to be used for statistical compilations of general public interest.

Sec. 8. Any person failing to furnish information required by any such agency

shall be subject to such penalties as are specifically prescribed by law, and no other

penalty shall be imposed either by way of fine or imprisonment or by the withdrawal

or denial of any right, privilege, priority, allotment, or immunity, except when the

right, privilege, priority, allotment, or immunity, is legally conditioned on facts

which would be revealed by the information requested.

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EXECUTIVE ORDER 53

Se c . 9. There are hereby authorized to be appropriated annually, out of any money

in the Treasury not otherwise appropriated, such sums as may be necessary to carry

out the provisions of this Act.

Approved, December 24,1942.

E x e c u t i v e Or d e r

TRANSFERRING CREDIT UNION FUNCTIONS, RECORDS, PROPERTY,

AND PERSONNEL FROM THE FARM CREDIT ADMINISTRATION TO

THE FEDERAL DEPOSIT INSURANCE CORPORATION

By virtue of the authority vested in me by Title I of the First War Powers Act,

1941, approved December 18, 1941 (Public Law 354, 77th Congress), it is hereby

ordered as follows:

1. Transfer of Functions. All functions, powers, and duties of the Farm Credit

Administration and of the Governor thereof under the Federal Credit Union Act,

as amended, (Title 12 U. S. C., 1751-1771) are transferred to the Federal Deposit

Insurance Corporation.

2. Transfer of Records, Property, and Personnel. All records and property (including office equipment) and all personnel of the Farm Credit Administration used

primarily in the administration of the functions transferred by this order are transferred to the Federal Deposit Insurance Corporation for use in the administration

of the functions transferred by this order; but any personnel so transferred who are

found by the Federal Deposit Insurance Corporation to be in excess of the personnel

necessary for the administration of such functions, powers, and duties shall be retransferred under existing law to other positions in the Government or separated

from the service.

3. Transfer of Funds. So much of the unexpended balances of appropriations or

other funds available (including those available for the fiscal year ending June 30,

1943) to the Farm Credit Administration in the exercise of the functions transferred

by this order, as the Director of the Bureau of the Budget with the approval of the

President shall determine, shall be transferred to the Federal Deposit Insurance

Corporation for use in connection with the exercise of the functions so transferred.

In determining the amount to be transferred the Director of the Bureau of the

Budget may include an amount to provide for the liquidation of obligations incurred

against such appropriations or other funds prior to the transfer.

4. Effective and Termination Dates. This order shall become effective as of May 16,

1942, and shall continue in force and effect until the termination of Title I of the

First War Powers Act, 1941.

F r a n k l in D R o o s e v e l t

T h e W h it e H o u s e ,

April 27,191*2.

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54 FEDERAL DEPOSIT INSURANCE CORPORATION

REGULATIONS OF THE CORPORATION

PART 305— RECOGNITION OF DEPOSIT OWNERSHIP NOT ON

BANK RECORDS

On March 24, 1942, and December 5, 1942, the board of directors of the Corporation by resolution added, respectively, the following provisions to Section 305

of Chapter III, Title 12, of the Code of Federal Regulations.

Section 305.5: Deposits of national farm loan associations. The owner of any portion of a deposit representing funds of a national farm loan association, or group

thereof, or funds to be disbursed or collections held by such an association, or a

group thereof, in connection with any Federal Land Bank loan or Land Bank

Commissioner loan, or with any real or personal property owned or sold by any such

association, or any Federal Land Bank, or the Federal Farm Mortgage Corporation,

and appearing on the records of a closed insured bank under the name of any such

association or group thereof, will be recognized for all purposes of claim for insured

deposits to the same extent as if the name and interest of the owner were disclosed

on the records of the bank: Provided, that the name and interest of such owner in

the deposit is disclosed on the records maintained by such association or group

associations; and, Provided, further, that such records have been maintained in

good faith and in the regular course of business.

305.6: Deposits of employer representing salary deductions of employees held for

purchase of war savings bonds or stamps. The owner of any portion of a deposit representing funds of employees held by an employer for the purchase of war savings

bonds or stamps and appearing on the records of a closed bank in an appropriately

designated special account under the name of the employer will be recognized for

all purposes of claim for insured deposits to the same extent as if his (or her) name

and interest were disclosed on the records of the bank: Provided, that the name and

interest of such owner in the deposit are disclosed on the records maintained by such

employer: and, Provided further, that such records have been maintained in good

faith and in the regular course of business.

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STATEMENT OF POLICY BY BANK SUPERVISORY AUTHORITIES 55

STATEMENT OF POLICY BY BANK SUPERVISORY AUTHORITIES

JOINT STATEMENT OF THE COMPTROLLER OF THE CURRENCY,

THE FEDERAL DEPOSIT INSURANCE CORPORATION, THE BOARD

OF GOVERNORS OF THE FEDERAL RESERVE SYSTEM, AND THE

EXECUTIVE COMMITTEE OF THE NATIONAL ASSOCIATION OF

SUPERVISORS OF STATE BANKS

The Comptroller of the Currency, the Federal Deposit Insurance Corporation,

the Board of Governors of the Federal Reserve System, and the Executive Committee

of the National Association of Supervisors of State Banks make the following statement of their examination and supervisory policy with special reference to investments in and loans upon Government securities.

1. There will be no deterrents in examination or supervisory policy to investments

by banks in Government securities of all types, except those securities made specifically ineligible for bank investment by the terms of their issue.

2. In connection with Government financing, individual subscribers relying upon

anticipated income may wish to augment their subscriptions by temporary borrowings from banks. Such loans will not be subject to criticism but should be on a

short term or amortization basis fully repayable within periods not exceeding six

months.

3. Banks will not be criticized for utilizing their idle funds as far as possible in

making such investments and loans and availing themselves of the privilege of

temporarily borrowing from or selling Treasury bills to the Federal Reserve Banks

when necessary to restore their required reserve positions.

Issued November 22, 1942.

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PART FIVE

STATISTICS OF BANKS AND DEPOSIT INSURANCE

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E X P L A N A T O R Y N O T E S

S o u rces o f D a ta

Data relating to national banks and State banks in the District of Columbia

were obtained from the Comptroller of the Currency or the Board of Governors

of the Federal Reserve System, and data relating to State banks members of the

Federal Reserve System from the Board of Governors of the Federal Reserve

System, with the following exceptions: (1) analysis of examinations, the data of

which were compiled by this Corporation from reports submitted by the Comptroller

of the Currency and the Board of Governors of the Federal Reserve System and

reviewed by the Corporation; and (2) data relating to suspensions, receiverships,

and mergers with the financial aid of the Federal Deposit Insurance Corporation,

which were obtained from the records of the Corporation.

Data relating to insured state banks not members of the Federal Reserve System

were obtained from the banks themselves or from the records of the Federal Deposit

Insurance Corporation.

Data relating to noninsured banks were obtained from the Board of Governors

of the Federal Reserve System, State banking authorities, Rand McNally Bankers

Directory, and Polk’s Bankers Encyclopedia.

C la ssifica tio n o f B a n k s a n d B a n k in g O ffices

In su r e d b a n k s include all operating banks insured by the Federal Deposit

Insurance Corporation; n o n in s u r e d b a n k s include all banks not so insured.

C o m m e rc ia l b a n k s a n d tr u s t c o m p a n ie s include the following categories of

banking institutions:

Operating 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 and, in New Hampshire, guaranty savings

banks;

Stock savings banks, excluding guaranty savings banks in New Hampshire;

Banks in conservatorship or operating under restrictions, provided they

are authorized to and in fact do accept new deposits, regardless of the character of the restrictions imposed on the operations of the bank;

Such industrial and Morris Plan banks as operate under general banking

codes or operate under the same codes of law as insured industrial banks;

Branches of foreign banks which engage in a general deposit business;

Cash depositories;

Private banks under State supervision, and such other private banks as

are reported by reliable unofficial sources to be engaged in deposit banking;

Trust companies, even though not engaged in regular deposit banking,

except those operating as title companies without other fiduciary business;

Branches of American and foreign banks maintained in the possessions

to do a general deposit business. (Where more than one branch is maintained

by a given bank in any one possession the chief or central office is classified

as a bank and the other offices as branches).

59

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60 FEDERAL DEPOSIT INSURANCE CORPORATION

M u tu a l sa v in g s b a n k s include all banks operating under special State banking

codes applying to mutual savings banks, including guaranty savings banks in

New Hampshire.

U n it b a n k s include all banks operating only one office at which deposits are

received or checks cashed.

B r a n ch es include all offices, other than head offices, of banks operating more

than one office at which deposits are received or checks cashed, and all offices,

other than head offices, of trust companies not engaged in deposit banking. The term

“branch” is used in accordance with the definition in paragraph (15), subsection (c)

of section 12B of the Federal Reserve Act, as amended, which is as follows:

“The term ‘branch’ includes any branch bank, branch office, branch

agency, additional office, or any branch place of business located in any

State of the United States or in Hawaii, Alaska, Puerto Rico, or the

Virgin Islands at which deposits are received or checks paid or money

lent.”

I n s tit u t io n s ex c lu d ed . Figures for operating banks do not include institutions

in the following categories, though such institutions may perform many of the same

functions as 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, regardless of the amount of deposit liability still remaining and regardless

of whether they are listed among operating banks or included in abstracts

of condition of banks published by State banking authorities;

Building and loan associations, savings and loan associations, credit unions,

personal loan companies, and similar institutions, chartered under special laws

applying to such institutions or under general incorporation laws, regardless

of whether such institutions are authorized to accept deposits from the public

or from their members and regardless of whether such institutions are called

“banks;”

Noninsured Morris Plan companies, industrial banks, loan and investment

companies, and similar institutions, not operating under general State banking

codes, nor under the same codes of law as similar institutions which have been

admitted to insurance;

Branches of foreign banks, and of private banks, which confine their business

to foreign exchange dealings and do not receive “deposits” as that term is

commonly understood;

A few special institutions chartered under general banking laws, but operating as mortgage or investment companies and not engaged in deposit banking;

Federal Reserve banks and other banks, such as the Savings and Loan

Bank of the State of New York, which operate as rediscount banks and do

not accept deposits from the general public.

B a n k a n d B r a n ch C h a n g es

Changes during 1942 in the number of operating banks and branches, as defined

above, are shown in Table 101. Similar figures for prior years are shown in previous

Annual Reports of the Corporation.

The number of banks which suspended operations because of financial difficulties,

and the number merged with the financial aid of the Corporation, in each of the

years 1934-1942, are shown in Table 119. The insured banks covered by these

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EXPLANATORY NOTES 61

tables are classified in several categories in Table 101 in this Report and the corresponding tables in previous Annual Reports of the Corporation, to take account

of other accompanying changes, as indicated below.

1942 1941 1940 1939 1938 1937 1936 1935 1934

Total num ber of suspended insured banks, as given in Table 119

193249534126

Classification in Table 101 or corresponding table in previous Annual Reports Changes not involving number in any class Suspended banks not reopened or succeeded

6

6

1932495040269

Succeeded by another bank in same class

Suspended and reopened

Changes in classification, insured to noninsured (succeeded by noninsured bank)

Total num ber of banks Merged with merged w ith financial financial aid of aid of FD IC—netClassification in Table 101 or corresponding table in previous Annual Reports Changes not involving

1942 1941 1940 1939 1938 1937 1936 1935

FDIC, as given in Table 119

147

24282425271

decrease

136

20212220221

Change in classifi­ cation 

among insured banks (succeeded by an insured bank in another class)

number in any class Succeeded Change in by another bank in 

same class

title and location

Suspended banks not reopened or succeeded (loan made subsequent to sus­ pension)

Omitted (continued operation under same name and charter)

D e p o sits o f B a n k s a n d B a n k in g O ffices

O p era tin g in su r e d b a n k s. Deposit data for operating insured banks are obtained from two separate sources: (1) deposit figures shown, or used for classifying

insured banks by size groups, in Tables 103, 104, 105, and 118 are from reports

of condition submitted by the banks for the dates indicated; or are averages of the

figures from reports of condition for the dates indicated; (2) deposit figures shown,

or used for classifying insured banks by size groups, in Tables 107-116, summarizing

the reports of examinations of banks, are for the respective dates on which each

bank was examined.

Deposits shown in reports of examination are defined in the same way as those

shown on reports of condition. In adjusting figures for examiners’ appraisals,

deposit liabilities not shown on the bank’s books are added to deposits shown on

the books.

For description of deposit liabilities reported by insured banks on certified statements submitted for the purpose of computing the deposit insurance assessment,

used in some tables in the Annual Reports of the Corporation prior to 1939, see

the Annual Report of the Corporation for 1941, page 92.

N o n in su r e d b a n k s. Deposits of noninsured banks are from published figures

or from reports received from State banking authorities, and are based on reports

of condition submitted by the banks to State authorities or to bankers’ directories.

Figures refer to June 30 and December 31 or nearest available dates.

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62 FEDERAL DEPOSIT INSURANCE CORPORATION

S u sp e n d ed a n d m e rg e d b a n k s a n d b a n k s in re ceiv ersh ip . Deposit figures

for insured banks in Tables 119 and 122, relating to suspensions, receiverships, and

mergers with the financial aid of the Corporation, are from the records of the Corporation with respect to such banks, and refer to the date of suspension or merger.

Deposit figures for banks in receivership as shown by the books of the Corporation,

December 31, 1942, given in Table 121, differ from those shown by the books of

the banks at date of suspension, given in Table 120, because of reclassification of

liabilities and discovery of additional liabilities during liquidation.

B a n k s S u b m ittin g R ep o rts to t h e C o rp o ra tio n

The Federal Deposit Insurance Corporation regularly examines, and calls for

reports of assets and liabilities, and of earnings and dividends, from all insured

banks which are not members of the Federal Reserve System, except State banks

in the District of Columbia and national banks in the possessions. The latter groups

of banks are examined by and report to the Comptroller of the Currency.

For captions used in tables in previous Annual Reports of the Corporation,

relating to banks examined by or submitting reports to the Corporation, see the

Annual Report of the Corporation for 1941, page 93.

A ssets a n d L ia b ilitie s o f O p era tin g B a n k s

Assets and liabilities of insured banks, in Tables 104-106, are tabulated from

reports of condition submitted to Federal supervisory authorities: to the Comptroller

of the Currency by all national banks, and by State banks located in the District

of Columbia; to the Board of Governors of the Federal Reserve System by State

banks members of that system; and to the Federal Deposit Insurance Corporation

by all other insured State banks. Instructions provided to insured banks by the

Federal supervisory authorities for the preparation of reports of condition are

essentially uniform. Copies of the instructions issued to banks submitting reports

to the Federal Deposit Insurance Corporation are available upon request.

Assets and liabilities of noninsured banks are from published figures or from

reports received from State banking authorities, and are based on reports of condition submitted by the banks to State authorities or to bankers' directories.

Statements of assets and liabilities are submitted by insured commercial banks

upon either a cash or an accrual basis, depending upon the bank’s method of bookkeeping. 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. Trust funds deposited by a trust department in a commercial or savings

department are reported as “Deposits of individuals, partnerships, and corporations.” Other assets held in trust are not included in statements of assets and

liabilities. In the case of banks with one or more domestic branches, the assets

and liabilities reported are consolidations of figures for the head office and all

domestic branches. In the case of a bank with foreign branches, net amounts due

from its own foreign branches are included in “Other assets,” and net amounts

due to its own foreign branches are included in “Other liabilities.”

A ssets reported represent aggregate book value, on the date of call, less valuation

allowances, and, in the case of securities, less reserves for bond premiums. Reciprocal bank balances were reported gross prior to June 30, 1942. Instalment loans

are ordinarily reported net if the instalment, payments are applied directly to the

reduction of the loan. Such loans are reported gross if, under contract, the payments

do not immediately reduce the unpaid balances of the loan but are assigned or

pledged to assure repayment at maturity.

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EXPLANATORY NOTES 63

T o t a l d e p o s it s . All funds received by a bank in the course of its commercial

or fiduciary business (except funds in payment of obligations to the bank) give

rise to demand or time deposit liabilities and are classified under total deposits,

unless the funds are received as trust funds which the bank keeps segregated and

apart from its general assets.

A n a ly sis o f E x a m in a tio n s o f In su r e d C o m m e rc ia l B a n k s

Data for Tables 107-116, relating to the analysis of examinations of all insured

commercial banks in 1942, are derived from the reports of examinations made by

the Comptroller of the Currency in the case of national banks and of State banks

in the District of Columbia, by the Federal Reserve banks in the case of State

banks members of the Federal Reserve System, and by the Federal Deposit Insurance Corporation in the case of other insured State banks. Similar tables relating

to the analysis of examinations of all insured commercial banks in 1939, 1940, and

1941 were published in the Annual Reports of the Corporation for those years.

Corresponding tabulations for earlier years have not been made, except for banks

examined by the Corporation.

Figures relating to commercial banks examined by the Federal Deposit Insurance

Corporation covering the period 1933 to 1940 are presented in Tables 135-138 in

the Annual Report of the Corporation for 1940. Examination procedures of the

Federal bank supervisory authorities and of numerous State banking authorities

were revised in 1938 so that the data for 1939 and 1940 are not strictly comparable

with data for 1937 and earlier years. Data for banks examined by the Federal

Deposit Insurance Corporation are shown for 1938 on both the original and the

uniform or revised basis. For a discussion of the differences between the uniform

procedure and the procedure previously followed by the Corporation in analyzing

and valuing assets in examination reports, see the Annual Report of the Corporation

for 1938, pages 61-78.

B a n k s in c lu d e d . The tabulations have been prepared from reports of examinations available during the year and do not cover precisely the banks examined during

the year. The figures for 1942 include 13,245 insured commercial banks operating

at the close of the year and 58 banks which ceased operations during the year.

Figures for 102 insured banks operating at the close of the year were not included

in the tabulations: 10 because they were not engaged in deposit banking and 92

because reports of examination were, for various reasons, not available for tabulation. Figures for 65 banks cover reports of examinations made in the last three

months of 1941. The number and deposits of insured commercial banks included

in the 1942 tabulations, distributed according to month of examination, are shown

below.

Month of Number Total deposits (in examination of banks millions of dollars)

All ban ks................................................... ..................... 13,303 72,755

Banks examined in: 1941.............................................................................. 65 95

1942 January........................................................................ 1,195 7,579 February...................................................................... 1,096 4,159 M arch.......................................................................... 1,227 6,643 April............................................................................. 1,363 5,696 M ay.............................................................................. 1,242 5,524 June.............................................................................. 1,245 7,313 Ju ly .............................................................................. 837 9,085 August.......................................................................... 1,064 4,103 September............................ ....................................... 1,241 3,647 October....................................................................... 1,188 9,308 November.................................................................... 959 5,244 December.................................................................... 581 4,359

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64 FEDERAL DEPOSIT INSURANCE CORPORATION

R a tio s for in d iv id u a l b a n k s. The base used in the computation of ratios

to the appraised value of assets, and to total assets, for each individual bank consists, for the most part, of the estimated average value of assets over the 12-month

period preceding the date of examination. This method was adopted in order to eliminate the influence of seasonal fluctuations in total assets upon the ratios of individual

banks. However, in view of the rapid increase in total assets during the period

covered by this averaging process, the ratios for 1942 tend to represent the condition

of the banks—considered as a whole—at a time close to the beginning of the year.

E x p la n a tio n o f te r m s. The principal terms and methods used, under the uniform

procedure, in the tables relating to analysis of examinations of bank assets and

capital accounts are described below.

B o o k v a lu e , applied to total assets, loans, securities, and fixed and miscellaneous

assets, refers to the values (net, after deduction of valuation allowances and, in

the case of securities, of premium allowances) carried by each bank on its books at

the time of examination.

A p p ra ised v a lu e of total assets, loans, securities, and fixed and miscellaneous

assets, represents the value of assets as determined by the examiners. For explanation

of method of valuing securities see the Annual Report of the Corporation for 1938,

pages 64-68. The term “appraised value” corresponds in meaning to the term “adjusted value” used in the Annual Report of the Corporation for 1938, and to the

term “net sound value” used in the Annual Reports of the Corporation for 1935 and

1934.

E x a m in e rs’ d e d u c tio n s (n et) fro m a sse ts represent the amount by which the

examiners’ evaluation of each bank’s assets is less than the value carried by the

bank on its books. Minus (-) represents the excess of appraised value of assets over

book value.

The deductions are derived from the examiners’ evaluation of the assets classified

on the basis of eventual collectibility. In the case of assets other than securities,

the examiner, for reasons which he sets forth, deducts: (1) the amount of, or the

portion of, loans and other assets regarded as worthless or uncollectible (Classification IV); and (2) one-half of the amount of, or the portion of, loans and other

assets regarded as of doubtful worth or collectibility (Classification III). In the

case of securities, the examiner deducts: (1) the amount by which the book value

(less valuation allowances) exceeds the market value of stocks and defaulted securities; (2) one-half of the amount by which the book value (less valuation and

premium allowances) of speculative securities exceeds the average of market prices

over the 18 months preceding the month of examination; and (3) the amount by

which book value (less valuation and premium allowances) exceeds cost less amortization of other (i.e., uncriticized) securities. The amounts of the deductions are

reduced by the determinable sound values of assets not shown on the books.

E x a m in e rs’ d e d u c tio n s (n et) fr o m t o ta l c a p ita l a c c o u n ts represent the

amount by which the examiners’ evaluation of each bank’s total capital accounts

(net worth) is less than the value carried by the bank on its books. It exceeds

examiners’ deductions (net) from assets by the amount of determinable liabilities

not shown on the books. Minus (-) represents examiners’ net additions to capital,

or an excess of appraised value of assets over book value and over liabilities not

shown on the books.

S u b sta n d a rd , applied to total assets, loans, securities, and fixed and miscellaneous assets, represents the appraised value of all assets believed by the examiner

to involve a substantial or unreasonable degree of risk, and hence to be undesirable

or hazardous for bank investment. It includes the value of assets in Classification

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EXPLANATORY NOTES 65

II, including assets not shown on the books, and 50 percent of the value of assets

in Classification III.1 The appraised value of substandard assets also represents

the book value of all c r itic iz e d assets less examiners’ deductions (net) on such

assets. The term “substandard” corresponds in meaning to the term “slow” used

in the Annual Reports of the Corporation for 1936, 1935, and 1934, except in the

case of securities and total assets.

F ix ed a n d su b sta n d a r d a s se ts include fixed assets not criticized, as well as

all substandard assets. Fixed assets consist of banking house, furniture and fixtures,

and other real estate.

U n c r itic iz e d , applied to total assets, cash, loans, securities, and fixed and miscellaneous assets, represents the appraised value of all assets regarded as suitable

for bank investment. The appraised value of these assets (Classification I) represents acquisition values less charge-offs, valuation allowances, and, in the case of

securities, amortization of bond premiums.

T o ta l c a p ita l a c c o u n ts , or b o o k v a lu e o f c a p ita l a c c o u n ts , refers to the

“net worth” or equity of stockholders (including holders of capital notes and debentures) in each bank as carried by the bank on its books at the time of examination.

N e t so u n d c a p ita l represents the appraised value of assets less all determinable

liabilities. It is also derived by subtracting examiners’ deductions (net) from total

capital accounts, and is the examiners’ evaluation of the net worth or equity

of stockholders (including holders of capital notes and debentures) in each bank.

The retirable value of R. F. C. capital is used to determine the amount of n e t

so u n d p r iv a te c a p ita l, so that the latter differs from book value of private capital

accounts by the excess of retirable value of R. F. C. capital over book value as

well as by the examiners’ deductions (net) from total capital accounts. The term

“net sound capital” corresponds in meaning to the term “adjusted capital account”

used in the Annual Report of the Corporation for 1938, to the term “net capital

account” used in the Annual Report of the Corporation for 1937, and to the term

“sound capital” used in the Annual Report of the Corporation for 1936.

The amount of R . F . C. c a p ita l in banks may correspond to any one of three

values: the par or face value; the book value, which is normally the same as par

value but may be less; and the retirable value. The latter is the same as the investment of the Reconstruction Finance Corporation shown in reports of that

Corporation.

D eposits, in all cases, represent deposits at the date of the examination.

A d ju ste d d e p o sits and a d ju ste d lia b ilitie s include, in addition to liabilities

shown on the books of the bank, those not shown, but determined by the examiner

to exist.

N e t c u r r e n t o p e r a tin g ea r n in g s are for the calendar year 1941; and the figure

for to t a l a sse ts to which net current operating earnings are related is the monthly

average for the 12-month period immediately prior to the examination. The 25 banks

for which no net earnings figures were available were, in general, new institutions

or institutions which had been merged.

Irr eg u la rity in in d iv id u a l it e m . The average ratio of net sound capital to the

appraised value of assets of $24.56, referred to in footnote 1 of Table 110, is lower

than the limit of the interval in which the 119 banks fall (banks with net sound

capital of $25.00 to $29.99 per $100 of appraised value of assets) due to the difference

1 See the Annual Report of the Federal Deposit Insurance Corporation for the Year Ending December 81, 1988, pages 76-78, particularly Table 40.

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

between the ratios based on assets at the date of examination and on the average

of assets over the year immediately preceding the date of examination, discussed

under “Ratios for individual banks” above.

The States included in each Fe deral D e p o sit In su r a n c e C o rp o ra tio n D istr ic t,

and the cities in which the district offices are located, are given below.

D istr ic t 1 .... Maine, New Hampshire, Vermont, Massachusetts, Rhode

Island, Connecticut............................................................B o sto n

D istr ic t 2 . .. .New York, New Jersey, Delaware, Puerto Rico, Virgin

Islands.............................................................................N ew Y ork

D istr ic t 3___Ohio, Pennsylvania...........................................................C o lu m b u s

D istr ic t 4. . . . Maryland, District of Columbia, Virginia, West Virginia,

North Carolina, South Carolina..............................R ic h m o n d

D istr ic t 5. . . . Georgia, Florida, Alabama, Mississippi, Louisiana. . . A tla n ta

D istr ic t 6 . .. . Kentucky, Tennessee, Missouri, Arkansas..................S t. L o u is

D istr ic t 7. . . .Indiana, Michigan, Wisconsin.........................................M a d iso n

D istr ic t 8 . . . . Illinois, Iowa........................................................................C h ica g o

D istr ic t 9. .. .Minnesota, North Dakota, South Dakota, M ontana.S t. P a u l

D istr ic t 1 0 . .. .Nebraska, Kansas, Oklahoma, Colorado,

Wyoming.........................................................K a n sa s C ity , M o.

D istr ic t 11. .. .Texas, New Mexico, Arizona................................................ D a lla s

D istr ic t 1 2___Idaho, Utah, Nevada, Washington, Oregon, California, Alaska,

Hawaii. ..................................................................S a n F ra n cisco

E a rn in g s, E x p en ses, a n d D iv id en d s o f In su re d C o m m e rc ia l B a n k s

B a n k s in c lu d e d . Reports of earnings and dividends covering the calendar year

1942 were submitted to Federal bank supervisory agencies by all insured commercial

banks. Reports for each six months’ period were also submitted by banks not

reporting to the Corporation. The figure for number of banks in 1942 in Table 117

is the total number operating at the end of the year. The earnings data relate to

the same banks, except that data are also included, for the first six months of the

year, for national banks not operating at the end of the year.

For banks included in tabulations of earnings and dividends prior to 1942, see

the Annual Report of the Corporation for 1941, page 97.

The figures in Table 118, and in the column in Table 117 entitled “Operating

throughout the year,” exclude data for the following banks: banks submitting

reports covering less than the full year’s operations, trust companies not engaged

in deposit banking, one insured bank in the possessions reporting to the Corporation,

and banks submitting reports to the Corporation whose operations were materially

affected by mergers, consolidations, or other corporate changes.

A sset averages. The ratios presented in Table 118 are based upon assets as of

December 31 for the identical banks to which the earnings data pertain.

M e th o d o f rep o rtin g . Reports of earnings and dividends of insured commercial banks are submitted on the same basis, either cash or accrual, depending upon

the bank’s method of bookkeeping, as the reports of assets and liabilities. The

form of the report and instructions issued by the three Federal bank supervisory

agencies were for the most part uniform in 1942. Copies of the instructions issued

to banks reporting to the Federal Deposit Insurance Corporation are available upon

request.

For differences in the form and instructions for years prior to 1942 see the Annual

Report of the Corporation for 1941, pages 97-99.

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Federal Reserve Bank of St. Louis
N U M B E R , O FFIC E S, A ND D E P O SIT S OF O P E R A T IN G B A N K S

T a b le 101. ANALYSIS OF CHANGES IN NUMBER AND CLASSIFICATION OF OPERATING BANKING OFFICES

i n t h e U n it e d St a t e s a n d P o s s e s s io n s D u r in g 1942

All banking offices Commercial bank and trust company offices Mutual savings banking offices

Total Insured Non­ insured Total

Insured Noninsured

Total In­ sured2

Non­ insured Total

Members F. R. System

Not 

mem­ bers F. R. System

Banks of de­ positTrust

com­ National State panies1

ALL BANKING OFFICES

Num ber of offices, December 31, 1942......................................... 18,666 16,993 1,673 17,982 16,902 6,675 2,619 7,608 989 91 684 91 593 Number of offices, December 31, 1941......................................... 18,769 17,031 1,738 18,086 16,947 6,684 2,515 7,748 1,044 95 683 84 599

Net change during year.................................................................... -103 -38 -65 -104 -45 -9 + 104 -140 -55 -4 + 1 + 7 -6

Changes resulting from—

Offices opened............................................................................... 119 103 16 115 102 43 11 48 13 4 1 3 Banks............................................................................................ 23 15 8 23 15 2 13 8

Branches....................................................................................... 96 88 8 92 87 43 9 35 5 4 1 3

Offices closed................................................................................. 222 167 55 219 167 51 22 94 51 1 3 3 Banks............................................................................................ 170 118 52 168 118 35 6 77 49 1 2 2 Branches....................................................................................... 52 49 3 51 49 16 16 17 2 1 1

Changes in classification—net to ta l................................... + 26 -26 +20 -1 + 115 -94 -17 -3 + 6 -6 Insured bank to noninsured..................................................... -1 + 1 -1 -1 + 1 Noninsured banks to insured banks....................................... +25 -25 +21 + 7 + 14 -20 -1 + 4 -4 Noninsured branches to insured branches............................. + 2 -2 + 2 -2 Among insured banks................................................................ -1 +93 -92 + 2 -2 Among branches of insured banks.......................................... + 15 -15

BANKS

Number of banks, December 31, 1942......................................... 14,853 13,403 1,450 14,307 13,347 5,081 1,595 6,671 870 90 546 56 490 Number of banks, December 31, 1941......................................... 315,000 13,482 1,518 314,452 13,430 5,117 1,499 6,814 928 94 548 52 496

Net change during year................................................................ -147 -79 -68 -145 -83 -36 +96 -143 -58 -4 -2 + 4 -6

Changes resulting from—

Banks beginning deposit operations................................... 23 15 8 23 15 2 13 8

New banks................................................................................... 18 15 3 18 15 2 13 3

Financial institutions becoming banks of deposit............... 3 3 3 3

Closed banks reopened.............................................................. 2 2 2 2

Banks ceasing deposit operations......................................... 170 118 52 168 118 35 6 77 49 1 2 2 Suspended banks not reopened or succeeded....................... 9 6 3 9 6 6 3 Merged with financial aid of FD IC—net decrease............. 13 13 13 13 9 2 2 Other mergers and absorptions—net decrease..................... 80 63 17 78 63 18 3 42 14 1 2 2 Other liquidations....................................................................... 68 36 32 68 36 8 1 27 32

FEDERAL DEPOSIT INSURANCE CORPORATION

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Federal Reserve Bank of St. Louis
Noninsured banks becom ing insured Successions to noninsured banks.................. Admissions to F. R. System......................... Admissions to insurance, operating banks4. Trust company admitted to insurance1. . . .

Insured banks becom ing non insured. Succession to insured b an k ......................

Other changes in classification am ong banks. National banks succeeding State banks................ State banks succeeding national banks................. Admissions to F. R. System................................... Withdrawals from F. R. System............................ Trust companies becoming banks of deposit.......

Changes not involving num ber in any class: Successions.................................................................. Changes in title, location, or name of location...

BRANCHES

Number of branches, December 31, 1942. Number of branches, December 31, 1941.

Net change during year...............................................

Changes resulting from—

Branches opened for b u sin ess............................... Facilities provided as agents of the government. Absorbed banks converted into branches............. Branches replacing offices closed or relocated.... Other branches opened.............................................

Branches discontinued................................................... Branch of suspended bank............................................. Other branches discontinued.........................................

Branches of banks adm itted to insurance.............

Other changes in classification am ong branches. Admissions to F. R. System.........................................

Changes n ot involving num ber in any class: Branches transferred as result of absorption__ Replacements of discontinued branches.............. Changes in title, location, or name of location..

3,813 53,769

+44

+25+2+ 7 + 15 + 1

-1-1

3,590 3,549

+41

882526 3

34

491

48

+ 2

1

4

42

-25-2-7 -15-1

+ 1 + 1

223 6220

+ 3

3,675 3,634

+41

+21 +2+ 7 

+ 11 + 1

-1-1

-1+ 5-6

+ 7

+ 7

+93-2

’ +97 -2

3,555 3,517

+38

872526 3

33

491

48

2

10

1,594 1,567

+27

43199

* 15

16

' 16

10

1,024 1,016

+8

16

”l6

+ 14 +2

' + 1 1+ 1

-1-1

-92-3+6-97+2

1

18

937 934

+ 3

352

153

15

171

16

-20-2-7 -11

+ 1 + 1

+2

+2

119 116

+ 3

+ 15 + 15

1

4

42

-15 -15

1

4

10

-1

-1

-2

-2

+ 4

'+ 4

138 135

+ 3

3532

+ 3

+2

103 103

1 Not engaged in deposit banking. J Includes, at the beginning and a t the end of the year, three mutual savings banks members of the Federal Reserve System. 8 This figure is larger than the number of banks shown in the Annual Report of the Corporation for 1941 as follows: (a) inclusion of 94 noninsured trust companies not en­ gaged in deposit banking; (b) inclusion of 29 noninsured institutions engaged in deposit banking but not previously tabulated as banks (13 in Arkansas, 9 in Colorado, 4 in Georgia, 1 in Maine, 1 in Minnesota and 1 in Massachusetts). 4 Operating at beginning of year. Ci 6 This figure is larger by two branches than the number of branches shown in the Annual Report of the Corporation for 1941 because of the inclusion of banking institutions not previously tabulated as banks, two of which operated one branch each.

Note: For reconcilement of figures relating to number of mergers with FDIC aid, see page 61.

Back figures— See the following Annual Reports: 1941, p. 100; 1940, p. 94; 1939, p. 88; 1938, p. 124; 1937, pp. 70-72; 1936, pp. 102-104; 1935, pp. 144-46; 1934, p. 177.

NUMBER OF BANKING OFFICES

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Federal Reserve Bank of St. Louis
T a b le 102. N u m b e r OF OPERATING BANKING OFFICES, DECEMBER 31, 1942

GROUPED ACCORDING TO INSURANCE STATUS AND CLASS OF BANK AND BY TYPE OF OFFICE IN EACH STATE AND POSSESSION

All banking offices Commercial bank and trust company offices Mutual savings banking offices Insured banking offices as percentages of—

Insured Noninsured

Com­ mercial banking

M utual savings banking Total Insured Non­ insured Total Total

Members F. R. System

Not

mem­ bers Banks of de­ posit

Trust

com­ panies1

Total Insured Non­ insured

All banking offices

National State F. R. System

offices offices

United States and possessions........ Unit banks............................................ Head offices.......................................... Branches................................................

18,666 13,754 1,099 3,81316,993 12,416 987 3,5901,673 1,338 112 22317,982 13,287 1,020 3,675

16,902 12,373 974 3,555

6,675 4,853 228 1,594

2,619 1,417 178 1,024

7,608 6,103 568 937

989 82545 11991891

1

684 46779 13891431335593 42466 10391.0 90.3 89.8 94.2

94.0 93.1 95.5 96.713.3 9.2 16.5 25.4

United S ta tes......................................... 18,562 13,724 1,089 3,749

16,987 12,413 986

1,575 1,311 103

17,878 13,257 1,010 3,611

16,896 12,370 9736,675 4,853 2282,619 1,417 178

7,602 6,100 567

896 86 684 91 593 91.5 94.5 13.3 803 84 467 43 424 90.4 93.3 9.2 36 1 79 13 66 90.6 96.3 16.5 Branches............................................... 3,588 161 3,553 1,594 1,024 935 57 1 138 35 103 95.7 98.4 25.4

Possessions............................................. 104 6 98 104 6 6 93 5 5.8 5.8 Unit banks............................................ 30 3 27 30 3 3 22 5 10.0 10.0 Head offices.......................................... 10 1 9 10 1 1 9 10.0 10.0 Branches............................................... 64 2 62 64 2 2 62 3.1 3.1

State

A labam a.................................................. 238 233 5 238 233 86 18 129 5 97.9 97.9 Unit banks............................................ 211 206 5 211 206 63 16 127 5 97.6 97.6 Head offices.......................................... 5 5 5 5 3 1 1 100.0 100.0 Branches................................................ 22 22 22 22 20 1 1 100.0 100.0

Arizona..................................................... 41 39 2 41 39 26 2 11 2 95.1 95.1 Unit banks............................................ 9 7 2 9 7 3 2 2 2 77.8 77.8 Head offices.......................................... 5 5 5 5 2 3 100.0 100.0 Branches................................................ 27 27 27 27 21 6 100.0 100.0

Arkansas.................................................. 244 223 21 244 223 52 12 159 18 3 -

91.4 91.4 Unit banks............................................ 214 193 21 214 193 50 12 131 18 3 90.2 90.2 Head offices.......................................... 14 14 14 14 1 13 100.0 100.0 Branches................................................ 16 16 16 16 1 15 100.0 100.0

C alifornia................................................ 1,037 173 1,022 160 15 1,037 173 1,022 765 139 118 6 9 98.6 98.6 Unit banks............................................ 13 160 86 11 63 4 9 92.5 92.5 Head offices.......................................... 32 31 1 32 31 9 7 15 1 96.9 96.9 Branches................................................ 832 831 1 832 831 670 121 40 1 99.9 99.9

Colorado.............................................. .. 149 135 14 149 135 78 15 42 14 90.6 90.6 Unit banks........................................... 149 135 14 149 135 78 15 42 14 90.6 90.6 Head offices.......................................... Branches................................................

FEDERAL DEPOSIT INSURANCE CORPORATION

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Federal Reserve Bank of St. Louis
C on necticut.. Unit banks. . Head offices. Branches

D elaw are........ Unit banks. . Head offices. Branches

District of Colum bia. Unit banks................. Head offices............... Branches.....................

Florida............ Unit banks. . Head offices. Branches

G eorgia........... Unit banks. . Head offices. Branches

Id ah o............... Unit banks. . Head offices. Branches

Illin o is............ Unit banks. . Head offices. Branches

Indiana........... Unit banks. . Head offices. Branches

207 1856

16

5638 6

12

52111130

173 16823

381 3341532

8539 7

831 831

1099658

52365

11

52111130

166 16312

304 2611330

84

815 815

135 1136

16

53375

11

521111

173 16823

381 3341532

85397

39

831 831

1089558

52365

11

52111130

166 16312

304 2611330

8438 7

39

815 815

57 9 42 25

2 72 1 71 49 7 39 16 2 72 1 71 3 1 1 1 5 1 2 8

14

5 33

1

3

3

14 3 19 1 1 1 1 4 1 1 1 10

26 20

6

4 3 4 5 5 1

17 12

1

55 5 106 4 3 52 5 106 2 3

1 1 2 1

69 25 210 77 44 15 202 73 6 3 4 2

19 7 4

2

53 10 21

1

10 10 18

1

6

1

372

339 108 368 11

5

339 108 368 11

5

132 105 304 23 4 4 3 1 118 87 224 21 4 4 3 1 6 3 35 1 8 15 45 1

102 56 582 73 102 56 316 62 113 5

1536

179 32 245 182 2 179 32 245 182 2

115 21 267 24 7 90 15 251 24 5

4 38

1

21

38

1

58 9 132

1

23 7 84

1

7

1 21 28 1 27

52.7 51.9 83.3 50.0

92.9 94.7 83.3 91.7

100.0 100.0 100.0

100.0

96.0 97.0 50.0 66.7

79.8 78.1 86.7

98.8 97.4 100.0 100.0

98.1 98.1

80.0 84.1 83.3 50.0

98.1 97.3 100.0 100.0

100.0 100.0 100.0

100.0

96.0 97.0 50.0 66.7

79.8 78.1 86.7 93.8

98.8 97.4 100.0 100.0

98.1 98.1

1.4 1.4

Iow a................. Unit banks. . Head offices. Branches

K ansas............ Unit banks. . Head offices. Branches

Kentucky Unit banks. . Head offices. Branches

572 45845

813 536 118 159

640 640

544 4324468

740 474 113 153

456 456 184 184

568 4544569

813 536 118 159

640 640

541 42944

740 474 113 153

456 456

95.1 94.3 97.8 98.6

91.0 88.4 95.8 96.2

71.3 71.3

95.2 94.5 97.8 98.6

91.0 88.4 95.8 96.2

71.3 71.3

75.0 75.0

Louisiana Unit banks. . Head offices. Branches

434 38516

200 1152956

403 3561532

199 1142956

434 3851633

200 1152956

403 3561532

199 1142956

92.9 92.5 93.8 97.0

99.5 99.1 100.0 100.0

92.9 92.5 93.8 97.0

99.5 99.1 100.0 100.0

NUMBER OF BANKING OFFICES

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Federal Reserve Bank of St. Louis
T a b le 1 0 2 . N u m b e r OF Op e r a t in g B a n k in g Of f i c e s, D e c e m b e r 31, 1942— C on tin u ed

g r o u p e d a c c o r d in g t o in s u r a n c e s t a t u s a n d c l a ss o f b a n k a n d b y t y p e o f o f f ic e i n e a c h s t a t e a n d p o s s e s s io n

All banking offices Commercial bank and trust company offices Mutual savings banking offices Insured banking offices as percentages of—

Total Insured Non­ insured Total

Insured Noninsured

Total Insured Non­ insured

All banking offices

Com­ mercial banking offices

M utual savings banking offices Total

Members F. R. System

Not 

mem­ bers F. R. System

Banks of de­ posit

Trust

comNational State panies1

162 118 44 128 112 40 33 39 16 34 6 28 72.8 87.5 17.6 74 45 29 44 39 31 1 7 5 30 6 24 60.8 88.6 20.0 25 18 7 23 18 4 4 10 5 2 2 72.0 78.3 63 55 8 61 55 5 28 22 6 2 2 87.3 90.2

M aryland................................................. 283 255 28 256 253 74 58 121 2 1 27 2 25 90.1 98.8 7.4 Unit banks............................................ 159 149 10 150 147 60 10 77 2 1 9 2 7 93.7 98.0 22.2 Head offices ................................... 27 25 2 25 25 3 6 16 2 2 92.6 100.0 Branches ............................................. 97 81 16 81 81 11 42 28 16 16 83.5 100.0

M assachusetts....................................... 545 311 234 322 311 192 73 46 11 223 223 57.1 96.6 Unit banks............................................ 324 149 175 157 149 105 15 29 8 167 167 46.0 94.9 Head offices.......................................... 66 41 25 42 41 19 15 7 1 24 24 62.1 97.6 Branches ....................................... 155 121 34 123 121 68 43 10 2 32 32 78.1 98.4

M ichigan ........................................... 626 582 44 626 582 140 228 214 35 9 93.0 93.0 Unit banks ....................................... 408 375 33 408 375 64 139 172 24 9 91.9 91.9 Head offices ........................................ 46 43 3 46 43 11 11 21 3 93.5 93.5 Branches............................................... 172 164 8 172 164 65 78 21 8 95.3 95.3

M in n e so ta............................................. 680 646 34 679 645 191 24 430 33 1 1 1 95.0 95.0 100.0 Unit banks ......................................... 672 638 34 671 637 183 24 430 33 1 1 1 94.9 94.9 100.0 Head offices.......................................... 2 2 2 2 2 100.0 100.0 Branches ............................................. 6 6 6 6 6 100.0 100.0

M ississippi ............................................ 249 244 5 249 244 26 2 216 5 98.0 98.0 Unit banks ......................................... 177 172 5 177 172 22 2 148 5 97.2 97.2 Head offices.......................................... 25 25 25 25 2 23 100.0 100.0 Branches............................................... 47 47 47 47 2 45 100.0 100.0

Missouri ............................................... 606 569 37 606 569 83 81 405 33 4 93.9 93.9 Unit banks ......................................... 606 569 37 606 569 83 81 405 33 4 93.9 93.9

Branches . ..................................

M on tsn s ........................................... 110 110 110 110 41 26 43 100.0 100.0 Unit banks ..................................... 110 110 110 110 41 26 43 100.0 100.0

FEDERAL DEPOSIT INSURANCE CORPORATION

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Federal Reserve Bank of St. Louis
Nebraska........ Unit banks. . Head offices. Branches

Nevada............ Unit banks. . Head offices. Branches

New H am pshire. Unit banks......... Head offices Branches............

New Jersey. . . Unit banks. . Head offices. Branches

New M exico. . Unit banks. . Head offices. Branches

New York Unit banks. . Head offices. Branches

North C arolina. Unit banks Head offices. . . Branches..........

North Dakota. Unit banks. . . Head offices. . Branches........

O h io................. Unit banks. . Head offices. Branches

Oklahoma. .. . Unit banks. . Head offices. Branches

O regon............ Unit banks. . Head offices. Branches

Pennsylvania. Unit banks. . Head offices. Branches

416 4122

359 3552

5757 416 4122

359 3552

135 1312

1414 210 210 4949

88

2

2 2 2

2

24 22

2 24 22 17

2

3

2

9

9 9 9

4

2

3

3

2

1

3

2 2 1 12 11 1 12 11 11 1

110 57 53 66 57 53 1 3

9 44 44 104 55 49 62 55 51 1 3 7 42 42 3 1 2 2 1 1 1 1 1 3 1 2 2 1 1 1 1 1

503 484 19 475 469 257 127 85

3

3 28 15 13 322 306 16 301 295 203 44 48 3 3 21 11 10 55 54 1 52 52 19 23 10 3 2 1

126 124 2 122 122 35 60 27

4 2 2

47 47 47 47 22

5 20 35 35 35 35 22 5 8 6 6 6 6 6 6 6 6 6 6

1,547 1,361 186 1,359 1,345 597 574 174 14 188 16 172 712 610 102 619 608 386 119 103 11 93 2 91 137 101 36 98 96 32 47 17 2 39 5 34 698 650 48 642 641 179 408 54 1 56 9 47

365 355 10 365 355 51 22 282

9

1

181 174

7 181 174 41

8 125 6 1 46 45 1 46 45 3 3 39 1

138 136

2 138 136

7 11 118

2

184 171 13 184 171 43 128 12

1

143 134 9 143 134 43 91

8

1

17 15

2 17 15 15

2

24 22

2 24 22 22 2

856 838 18 853 835 278 260 297 18 3 3 648 630 18 645 627 233 133 261 18 3 3 39 39 39 39 8 17 14 169 169 169 169 37 110 22

393 382 11 393 382 209 11 162 9

2

387 376 11 387 376 203 11 162 9

2

3 3 3 3

3

3

3

3 3 3

143 139

4 142 138 91

6 41

2 2 1 1 67 63 4 66 62 23 6 33 2 2 1 1 6 6 6 6 2 4

70 70 70 70 66

4

1,181 1,154 27 1,160 1,134 725 130 279 23 3 21 20 1 1,007 987 20 1,004 985 651 82 252 16 3 3 2 1

55 52 3 51 48 25 13 10

3 4 4 119 115 4 105 101 49 35 17 4 14 14

86.3 86.2 100.0 100.0

91.7 100.0 66.7 91.7

51.8 52.9 33.3 33.3

96.2 95.0 98.2 98.4

100.0 100.0 100.0

100.0

88.0 85.7 73.7 93.1

97.3 96.1 97.8 98.6

92.9 93.7 88.2 91.7

97.9 97.2 100.0 100.0

97.2 97.2 100.0 100.0

97.2 94.0 100.0 100.0

97.7 98.0 94.5 96.6

86.3 86.2

100.0 100.0

91.7 100.0 66.7 91.7

86.4 88.7 50.0 50.0

98.7 98.0 100.0 100.0

100.0

100.0 100.0 100.0

99.0 98.2 98.0 99.8

97.3 96.1 97.8 98.6

92.9 93.7

88.2 91.7

97.9 97.2 100.0 100.0

97.2 97.2 100.0 100.0

97.2 93.9 100.0 100.0

97.8 98.1 94.1 96.2

53.6 52.4 66.7 50.0

8.5 2.2 12.8 16.1

100.0

100.0

100.0 100.0

95.2 66.7 100.0

100.0

CONUMBER OF BANKING OFFICES

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Federal Reserve Bank of St. Louis
Table 102. N u m b e r of Op e r a t in g B a n k in g Of f ic e s, D e c e m b e r 31, 1942—Continued

GROUPED ACCORDING TO INSURANCE STATUS AND CLASS OF BANK AND BY TYPE OF OFFICE IN EACH STATE AND POSSESSION

<1

All banking offices Commercial bank and trust company offices Mutual savings banking offices

Insured Noninsured

Total Insured Non­ insured Total Total

Members F. R. System

Not

mem­ bers Banks of de­ posit

Trust

com­ panies1

Total Insured Non­ insured

National State F. R. System

75 44 31 64 44 20 21 3 17 3 11 11 23 10 13 15 10 9 1 2 3 8 8 12 6 6 11 6 3 2 1 5 1 1 40 28 12 38 28 8 19 1 10 2 2

S o u th C arolina ................................... 174 141 33 174 141 44 7 90 33 Unit b a n k s................. 142 109 33 142 109 20 5 84 33 Head offices .. 6 6 6 6 2 1 3

Branches................................................ 26 26 26 26 22 1 3

S o u th D akota . . 205 204 1 205 204 57 23 124 1

Unit banks............................................ 138 137 1 138 137 33 23 81 1

Head offices........................................... 24 24 24 24 4 20 Branches 43 43 43 43 20 23

T ennessee .............................................. 351 338 13 351 338 89 16 233 9 4

Unit banks .......................................... 278 265 13 278 265 64 6 195 9 4 Head offices................... . . . . 21 21 21 21 5 1 15 Branches ................... 52 52 52 52 20 9 23

Texas ................................................... 855 784 71 855 784 440 88 256 70 1

Unit b a n k s .......................................... 8522

781 71 852 781 437 88 256 70 1

Head offices ................... 2 2 2 2 Branches . 1 1 1 1 1

U tah ........................................ 71 71 71 71 21 21 29 Unit banks ............. 545

54 54 54 11 21 22 Head offices.......................................... 5 5 5 2 3

Branches . . ................................... 12 12 12 12 8 4

V erm ont ........................................... 99 98 1 82 81 42 39 1 17 17 Unit banks............................................ 74 73 1 67 66 38 28 1 7 7 Head offices.......................................... 7 7 6 6 2 4 1 1 Branches............................................... 18 18 9 9 2 7 9 9

V irg in ia .................................................... 392 392 392 392 149 70 173 Unit b a n k s .......................................... 272 272 272 272 122 55 95 Head offices ................. 43 43 43 43 8 5 30 Branches................................................ 77 77 77 77 19 10 48

Insured banking offices as percentages of—

All banking offices

58.7 43.5 50.0 70.0

81.0 76.8 100.0 100.0

99.5 99.3 100.0 100.0

96.3 95.3 100.0 100.0

91.7 91.7 

100.0 100.0

100.0

100.0

100.0

100.0

99.0 98.6 100.0

100.0

100.0 100.0

100.0

100.0

Com­ mercial banking offices

68.8 66.7 54.5 73.7

81.0 76.8 100.0 100.0

99.5 99.3 100.0 100.0

96.3 95.3 100.0 100.0

91.7 91.7 100.0 100.0

100.0 100.0 100.0 100.0

98.8 98.5 100.0 100.0

100.0

100.0

100.0 100.0

Mutual savings banking offices

100.0 100.0 100.0

100.0

FEDERAL DEPOSIT INSURANCE CORPORATION

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Federal Reserve Bank of St. Louis
W ash in g to n ............................................ 221 217 4 218 214 127 15 7268 3 1 3 3 98.2 96.7 100.0 100.0

97.2 97.2

98.2 96.7 100.0 100.0

97.2 97.2

100.0 100.0 100.0 100.0

Unit banks............................................ 123 119 4 122 118 37 13 3 1 1 1 Head offices.......................................... 10 10 9 9 6 1 2 1 1 Branches................................................ 88 88 87 87 84 1 2 1 1

W est V irginia......................................... 180 175 5 180 175 77 26 72 4 1

Unit banks............................................ 180 175 5 180 175 77 26 72 4 1

Head offices.......................................... Branches................................................

W isconsin................................................ 699 478 687 468 12101

695 47485

684 46584112953

54434

518 32777

9

7

2

2

4

4

3

3

1

2

98.3 97.9 98.8 99.3

98.2 98.2

98.4 98.1 98 8

75.0 VK A Head offices.......................................... 85 84 1

i O.U

Branches................................................ 136 135 1 136 135 14 7 114 1 99.3

98.2 98.2

W yom ing................................................. 57 56 1 57 56 26 10 20 1

Unit banks............................................ 57 56 1 57 56 26 10 20 1

Head offices.......................................... Branches................................................

Possessions A laska2...................................................... 18 2 16 18 2 2 1614 11.1 12.5 11.1 Unit banks............................................ 16 2 14 16 2 2 12.5 Head offices.......................................... 1 1 1 1

Branches................................................ 1 1 1 1

H aw aii8..................................................... 50 1 49 50 1 1 44 5 2.0 14.3 2.0 Unit banks............................................ 7 1 6 7 1 1 1 5 14.3 Head offices.......................................... 2 2 2 2

Branches................................................ 41 41 41 41

P u erto R ico............................................ 32 32 32 32 Unit banks............................................ 6 6 6 6 Head offices.......................................... 6 6 6 6

Branches................................................ 20 20 20 20

V irgin Islands4....................................... 4 3 1 4 3 3 1 75.0 75.0 Unit banks............................................ 1 1 1 1 Head offices.......................................... 1 1 1 1 1 100.0 100.0 100.0 Branches................................................ 2 2 2 2 2 100.0

1 Not engaged in deposit banking. 2 Includes 4 national banks (all unit banks), 2 among insured banks not members of the Federal Reserve System, and 2 among noninsured banks. 3 Includes, among noninsured banks, 1 national bank operating 20 branches. 4 Includes, among insured banks not members of the Federal Reserve System, 1 national bank operating 1 branch.

Back figures—See the following Annual Reports: 1941, p. 102; 1940, p. 96; 1939, p. 90; 1938, p. 126; 1937, p. 73; 1936, p. 105; 1935, pp- 122-131.

<1cnNUMBER OF BANKING OFFICES

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Federal Reserve Bank of St. Louis
Table 103. NUMBER AND DEPOSITS OF OPERATING COMMERCIAL AND MUTUAL SAVINGS BANKS, DECEMBER 31, 1942

BANKS GROUPED ACCORDING TO INSURANCE STATUS IN EACH STATE AND POSSESSION

Number of banks Deposits (in thousands of dollars)

Commercial banks Mutual savings banks Commercial banks Mutual savings banks

All banks

Noninsured All banks

Total In­ sured1 Banks of de­ posit

Trust

com­ panies2

Total In­ sured Nonin- sured Total Insured Nonin­ sured Total Insured Nonin­ sured

U nited S tates and po ssessio ns........ 14,853 14,307 13,347 870 90 546 56 490 100,152,825 89,478,713 87,820,427 1,658,286 10,674,112 2,048,314 8,625,798

U nited S ta te s........ 14,813 14,267 13,343 839 85 546 56 490 99,800,744 89,126,632 87,804,063 1,322,569 10,674,112 2,048,314 8,625,798

P ossessions............ 40 40 4 31 5 352,081

694,366 172.695 407,792 6,739,359 566,211

1,809,530 347.488 604,297 760,143 940.488

189,167 7,364,587 1,579,089 1,144,585 785,409

843,646 897,010 422,380 1,260,618 5,215,684

2,971,438 1,638,924 388,895 2,497,061 261.695

352,081

694,366 172.695 407,792 6,739,359 566,211

1,009,511 299,171 604,297 760,143 940,488

189,167 7,364,587 1,556,468 1,144,585 785,409

843,646 897,010 286,396 1,025,489 3,039,735

2,971,438 1,565,053 388,895 2,497,061 261.695

16,364

690,826 172.695 405.037 6,702,001 563,270

883.037 298,758 604,297 756,979 926,506

184,931 7,346,793 1,539,272 1,094,365 706,705

832,729 896,443 263,843 979,290 2,969,203

2,911,336 1,548,611 384,123 2,487,755 261.695

335,717

3,540 S tate Alabama............... 216 216 211 5

Arizona................. 14 14 12 2

Arkansas.............. 228 228 207 18 3 2,755 37,358 2,941

126,474 413

California............. 205 205 191 5 9 Colorado.............. 149 149 135 14

Connecticut......... Delaware..............19144 11942 10041 171

2 722

1 712

800,019 48,317 11,485 788,534 48,317 Dist. of Columbia. 22 22 22 Florida.................. 170 170 164 3 3 3,164 13,982

4,236 17,794

Georgia................. 349 349 274 75

Idaho..................... 46 46 45 1

Illinois.................. 831 831 815 11 5

Indiana................. 503 499 473 22 4 4 3 1 17,196 50,220 78,704

10,917 567

22,621 15,803 6,818 Iow a...................... 654 654 587 67 Kansas................... 640 640 456 182 2

K entucky............. 401 401 371 24 6

Louisiana.............. 144 144 143 1

M aine................... 99 67 57 10 32 6 26 22,553 46,199 70,532

60,102 16,442 4,772 9,306

135,984 235,129 2,175,949

14,926 2,035 121,058 233,094 2,175,949 M aryland............. 186 175 172 2 1 11 2 9

Massachusetts. . . 390 199 190 9 191 191

Michigan.............. 454 454 418 27 9 Minnesota............ 674 673 639 33 1 1 1 73,871 73,871 Mississippi........... 202 202 197 5 Missouri............... 606 606 569 33 4

M ontana.............. 110 110 110

FEDERAL DEPOSIT INSURANCE CORPORATION

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Federal Reserve Bank of St. Louis
414 414 357 N evada................. 12 12 11 New Hampshire.. 107 64 56 377 353 347 New Mexico........ 41 41 41

New York............. 849 717 704 North Carolina... 227 227 219 North Dakota . . . 160 160 149 Ohio....................... 687 684 666 Oklahoma............. 390 390 379

Oregon.................. 73 72 68 Pennsylvania. . . . 1,062 1,055 1,033 Rhode Island. . . . 35 26 16 South Carolina.. . 148 148 115 South D akota.... 162 162 161

Tennessee............. 299 299 286 Texas..................... 854 854 783 U tah...................... 59 59 59 Vermont............... 81 73 72 Virginia................. 315 315 315

Washington.......... 133 131 127 West Virginia. . .. 180 180 175 Wisconsin............. 563 559 549 Wyoming.............. 57 57 56

Possessions Alaska ................... 17 17 2

Hawaii.................. 9 9 1

Puerto R ico......... 12 12 Virgin Islands. .. . 2 2 1

491

8

3

8

4324 43 3 13 11

13 132 7 125 7 1

10 1

18 3 3 9 2

2 2 1 1 19 3 7 6 1

7 3 9 9 331

9 4

70 1

1 8 8

3 1 2 2 4 1

8 2 4 3 1

1

153 5

121

1 Includes 10 trust companies not engaged in deposit banking. 2 Not engaged in deposit banking.

Back figures—See the Annual Report for 1941, p. 108.

636,843 80,219 327,442 2,845,945 126,360

31,574,583 966,817 228,450 4,041,091 714,413

674,059 7,122,453 664,634 320,972 192,704

1,095,825 2,933,059 315,349 194,150 1,076,436

1,166,439 438,649 1,450,380 110,915

36,337 280,528 32,340 2,876

636,843 80,219 128,262 2,540,121 126,360

26,000,060 966,817 228,450 3,912,244 714,413

669,964 6,484,750 482,347 320,972 192,704

1,095,825 2,933,059 315,349 137,590 1,076,436

1,079,103 438,649 1,444,513 110,915

36,337 280,528 32,340 2,876

621,164 77,520 119,606 2,537,011 126,360

25,569,013 958,921 179,787 3,904,434 712,269

665.348 6,460,728 410,222 308,736 191,635

1,090,174 2,878,221 315.349 137,590 1,076,436

1,069,754 432,924 1,439,446 110,915

6,112 7,456

2,796

15,679 2,699 8,656 3,110 199,180 305,824 199,180 127,101 178,723

431,047 7,896 48,663 7,810 2,144

4,616 24,022 72,125 12,236 1,069

5,651 54,838

5,574,523 938,967 4,635,556

128,847 128,847

4,095 637,703 182,287

4,095 581,765 55,938 182,287

56,560 56,560

9,349 5,725 5,067

87,336 87,336

5,867 5,523 344

30,225 273,072 32,34080

NUMBER OF BANKING OFFICES

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Federal Reserve Bank of St. Louis
A SSE T S A N D L IA B IL IT IE S O F O P E R A T IN G B A N K S

T a b le 104. SUMMARY OF ASSETS AND LIABILITIES OF OPERATING BANKS IN THE UNITED STATES AND POSSESSIONS, JUNE 30, 1942

BANKS GROUPED ACCORDING TO INSURANCE STATUS AND TYPE OF BANK

(Amounts in thousands of dollars) -300

ASSETS

Cash, balances with other banks, and cash items in process of collection

Securities—to tal.................................................................................................. United States Government obligations, direct and guaranteed............ Obligations of States and political subdivisions....................................... Other bonds, notes, and debentures........................................................... Not classified including corporate stocks...................................................

Loans, discounts, and overdrafts (including rediscounts)......................... Loans and securities—to ta l..................................................................

Miscellaneous assets—to ta l.............................................................................. Bank premises owned, furniture and fixtures........................................... Other real estate—direct and indirect....................................................... All other miscellaneous assets...................................................................... T otal a ss e ts ...............................................................................................

LIABILITIES Deposits—to ta l................................................................................................... Demand deposits of individuals, partnerships, and corporations........ Time deposits of individuals, partnerships, and corporations.............. States and political subdivisions.................................................................. United States Government........................................................................... Other banks..................................................................................................... Certified and officers’ checks, cash letters of credit, etc........................ Not classified including postal savings.......................................................

Miscellaneous liabilities—to ta l........................................................................ Rediscounts and other borrowed money................................................... All other miscellaneous liabilities................................................................ T o ta l liabilities (excluding c ap ita l a c c o u n ts)..............................

CAPITAL ACCOUNTS Capital accounts—to ta l..................................................................................... Capital stock, notes, and debentures......................................................... Surplus.............................................................................................................. Undivided profits including all other capital accounts........................... T otal liabilities and cap ital a c c o u n ts.............................................

Total number of operating banks.................................................................... Number of banks included1.......................................................................... Number of banks not included2...................................................................

All banks

25,667,360

38,977,577 30,339,709 3,861,644 3,951,466 824,758

25,132,675 64,110,252

2,304,073 1,191,958 706,865 405,250 92,081,685

82,986,623

82,986,623

665,434 15,063 650,371 83,652,057

8,429,628 2,965,744 3,882,055 1,581,829 92,081,685

14,945 14,827 118

Commercial banks

Total

24,914,120

33,440,195 26,457,825 3,557,001 2,937,293 488,076

20,303,587 53,743,782

1,736,608 1,075,616 348,063 312,929 80,394,510

72,588,851 39,835,575 15,150,135 4,437,125 1,832,835 10,278,617 775,660 278,904

622,388 15,033 607,355 73,211,239

7,183,271 2,959,448 2,827,231 1,396,592 80,394,510

14,398 14,280 118

Insured Noninsured

24,381,860

32,726,428 25,936,082 3,493,880 2,865,154 431,312

19,922,804 52,649,232

1,678,363 1,060,323 339,852 278,188 78,709,455

71,162,431 39,266,281 14,889,560 4,337,016 1,771,551 10,076,427 765,619 55,977

594,204 11,509 582,695 71,756,635

6,952,820 2,858,709 2,741,404 1,352,707 78,709,455

13.403 13.403

532,260

713,767 521,743 63,121 72,139 56,764

380,783 1,094,550

58,245 15,293 8,211 34,741 1,685,055

1,426,420 569,294 260,575 100,109 61,284 202,190 10,041 222,927

28,184 3,524 24,660 1,454,604

230,451 100,739 85,827 43,885 1,685,055

995 877 118

Mutual savings banks

Total

753,240

5,537,382 3,881,884 304,643 1,014,173 336,682

4,829,088 10,366,470

567,465 116,342 358,802 92,321 11,687,175

10,397,772

10,397,772

43,04630 43,016 10,440,818

1,246,357 6,296 1,054,824 185,237 11,687,175

547 547

Insured

143,320

1,108,030 686,409 111,702 306,208 3,711

692,324 1,800,354

111,894 24,438 77,192 10,264 2,055,568

1,864,279

1,864,279

9,402

9,402 1,873,681

181,887 6,296 142,996 32,595 2,055,568

Noninsured

609,920

4,429,352 3,195,475 192,941 707,965 332,971

4,136,764 8,566,116

455,571 91,904 281,610 82,057 9,631,607

8,533,493

8,533,493

33,64430 33,614 8,567,137

1,064,470

911,828 152,642 9,631,607

494 494

1 Includes 10 insured trust companies not engaged in deposit banking. ^ Includes 92 noninsured trust companies not engaged in deposit banking. Back figures—See the Annual Report for 1941, pp. 122-25.

FEDERAL DEPOSIT INSURANCE CORPORATION

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Federal Reserve Bank of St. Louis
T a b le 105. SUMMARY OP ASSETS AND LIABILITIES OP OPERATING BANKS IN THE UNITED STATES AND POSSESSIONS, DECEMBER 31, 1942

BANKS GROUPED ACCORDING TO INSURANCE STATUS AND TYPE OF BANK

(Amounts in thousands of dollars)

ASSETS

Cash, balances with other banks, and cash items in process of collection----

Securities—to tal.......................................................................................................... United States Government obligations, direct and guaranteed.................... Obligations of States and political subdivisions.............................................. Other bonds, notes, and debentures................................................................... N ot classified including corporate stocks..........................................................

Loans, discounts, and overdrafts (including rediscounts).................................. Loans and securities—to ta l.........................................................................

Miscellaneous assets—to ta l...................................................................................... Bank premises owned, furniture and fixtures.................................................. Other real estate—direct and indirect............................................................... All other miscellaneous assets.............................................................................. T o tal a ss e ts ...........................................................................................-...........

LIABILITIES Deposits—to ta l........................................................................................................... Demand deposits of individuals, partnerships, and corporations................. Time deposits of individuals, partnerships, and corporations...................... States and political subdivisions......................................................................... United States Government.................................................................................. Other banks............................................................................................................. Certified and officers’ checks, cash letters of credit, etc................................ N ot classified including postal savings..............................................................

Miscellaneous liabilities—to ta l................................................................................ Rediscounts and other borrowed money........................................................... All other miscellaneous liabilities........................................................................ T otal liabilities (excluding cap ital accoun ts)......................................

CAPITAL ACCOUNTS Capital accounts—to ta l............................................................................................ Capital stock, notes, and debentures................................................................. Surplus...................................................................................................................... Undivided profits including all other capital accounts................................... T otal liabilities an d cap ital a c c o u n ts....................................................

Total number of operating banks. Number of banks included1

Number of banks not included2.

All banks

Commercial banks

Total Insured Noninsured

Mutual savings banks

Total Insured Noninsured

28,809,564

54,322,569 46,036,206 3,820,215 3,405,776 1,060,372

23,961,174 78,283,743

2,212,198 1,178,819 620,523 412,856 109,305,505

28,139,627

48,299,249 41,483,606 3,583,544 2,723,113 508,986

19,248,743 67,547,992

1,680,892 1,065,539 310,899 304,454 97,368,511

27,593,375

47,344,254 40,711,697 3,533,486 2,680,163 418,908

18,906,869 66,251,123

1,614,613 1,047,535 300,711 266,367 95,459,111

546,252

954,995 771,909 50,058 42,950 90,078

341,874 1,296,869

66,279 18,004 10,188 38,087 1,909,400

669,937

6,023,320 4,552,600 236,671 682,663 551,386

4,712,431 10,735,751

531,306 113,280 309,624 108,402 11,936,994

130,037

1,266,640 861,258 95,602 305,348 4,432

740,379 2,007,019

116,935 26,966 77,309 12,660 2,253,991

539,900

4,756,680 3,691,342 141,069 377.315 546,954

3,972,052 8,728,732

414,371 86,314 232.315 95.742 9,683,003

100,152,825

100,152,825

638,689 13,327 625,362 100,791,514

8,513,991 2,960,392 3,921,114 1,632,485 109,305,505

89,478,713 47,840,232 16,006,786 4,490,690 8,453,484 11,309,106 1,228,762 149,653

604,225 13,327 590,898 90,082,938

7,285,573 2,954,313 2,884,766 1,446,494 97,368,511

87,820,427 47,128,273 15,706,335 4,393,493 8,215,334 11,144,487 1,219,141 13,364

582,450 9,748 572,702 88,402,877

7,056,234 2,848,630 2,801,594 1,406,010 95,459,111

1,658,286 711,959 300,451 97,197 238,150 164,619 9,621 136,289

21,775 3,579 18,196 1,680,061

229,339 105,683 83,172 40,484 1,909,400

10,674,112

10,674,112

34,464

2,048,314

2,048,314

4,865

34,464 10,708,576

1,228,418 6,079 1,036,348 185,991 11,936,994

4,865 2,053,179

200,812 6,079 155,706 39,027 2,253,991

8,625,798

8,625,798

29,599

29,599 8,655,397

1,027,606

’880,642 146,964 9,683,003

14,853 14,731 122

14,307 14,185 122

13.347 13.347 960 838 122546 546 490 490 <1

1 Includes 10 insured trust companies not engaged in deposit banking. 2 Includes 90 noninsured trust companies not engaged in deposit banking. Back figures—See table 104 and the Annual Report for 1941, pp. 122-25.

ASSETS AND LIABILITIES OF OPERATING BANKS

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T able 106. ASSETS AND LIABILITIES OF OPERATING INSURED COMMERCIAL BANKS, CALL DATES, DECEMBER 31, 1941, TO DECEMBER 31, 1942

(Amounts in thousands of dollars)

00

ASSETS

Gash, balances w ith other banks, and cash item s in process of collection—to ta l. Currency and coin................................................ Reserve with Federal Reserve banks............... Demand balances with banks in the United States (except private banks and Ameri­ can branches of foreign banks)................. Other balances with banks in the United States Balances with banks in foreign countries........ Cash items in process of collection...................

O bligations of the United States Govern­ m ent—to ta l................................................ Direct: Treasury bills.................................................... Treasury certificates of indebtedness........... Treasury notes.................................................. United States savings bonds......................... Other bonds maturing in 5 years or less. . . Other bonds maturing in 5 to 10 years. . . . Bonds maturing in 10 to 20 years................ Bonds maturing after 20 years..................... Guaranteed obligations.......................................

Other securities—to ta l................................... Obligations of States and political subdivisions Other bonds, notes, and debentures*.......... Corporate stocks: Federal Reserve banks................................ Other corporate stocks................................

T otal securities.

Loans, discounts, and overdrafts (including rediscounts)—to ta l.................................. Commercial and industrial loans (including open market paper)..................................... Loans secured by agricultural commodities, covered by purchase agreements of the Commodity Credit Corporation............... Other agricultural loans (excluding loans on farm land)......................................................

Dec. 31, 1941

792,869 ,358,738 ,395,664

!,426,994 146,847 11,463 1,453,163

21,047,698

988,333

3,158,664 (2) 1,551,379 3,970,448 5,929,602 1,347,122 4,102,150

6,985,411 3,651,628 2,889,291

142,094 302,398

28,033,109

21,262,202

9,215,139

► 1,449,942

June 30, 1942

24,381,860 1,290,745 12,294,505

7,975,952 130,386 12,767 2,677,505

25,936,082

1,535,893 1,978,519 3,732,023 266,649 1,764,618 5,321,571 7,156,679 1,306,163 2,873,967

6,790,346 3,493,880 2,865,154

144,737 286,575

32,726,428

19,922,804

8,868,234

1,164,455

Dec. 31, 1942

27,593,375 1,306,806 13,071,533

8,984,740 100,282 13,255 4,116,759

40,711,697

4,462,419 6,728,512 5,800,208 284,259 2,864,750 10,046,540 6,469,547 1,337,064 2,718,398

6,632,557 3,533,486 2,680,163

145,791 273,117

47,344,254

18,906,869

7,757,567

746,261

895,514

LIABILITIES AND CAPITAL

D em and deposits (excluding in te rb a n k de­ posits)—to ta l............................................. Individuals, partnerships, and corporations. . United States Government................................ States and political subdivisions...................... Certified and officers’ checks, cash letters of credit and travelers’ checks outstanding, and amounts due to Federal Reserve banks.............................................................

T im e deposits (excluding in te rb a n k de­ posits)—to ta l............................................. Individuals, partnerships, and corporations. . United States Government................................ Postal savings....................................................... States and political subdivisions.......................

In terb an k deposits—to ta l................................. Banks in the United States............................... Banks in foreign countries.................................

T otal d ep o sits....................................... Demand................................................. Time.......................................................

M iscellaneous liabilities—to ta l...................... Bills payable, rediscounts, and other liabilities for borrowed money.................................... Acceptances executed by or for account of r e- porting banks and outstanding................ Dividends declared but not yet payable......... Income collected but not earned...................... Expenses accrued and unpaid........................... Other liabilities........................................ ............

Total liabilities (excluding capital a c co u n ts)............................................

Dec. 31, 1941

43,064,655 36,547,288 1,762,509 3,677,444

1,077,414

15,702,253 15,151,204 34,120 24,621 492,308

110,653,776 19,973,303 680,473

169,420,684 153,560,860 15,859,821*

564,979

10,221

87,021 40,567 94,062 108,837 224,271

169,985,663

June 30, 1942

45,669,726 39,266,281 1,771,501 3,866,325

765,619

15,416,278 14,889,560 34,515 21,512 470,691

10,076,427 9,322,595 753,832

71,162,431 55,617,692 15,5U,739

594,204

11,509

68.844 41,840 77.844 132,799 261,368

71,756,635

Dec. 31, 1942

60,511,574 47,128,273 8,167,459 3,996,701

1,219,141

16,164,366 15,706,335 47,875 13,364 396,792

11,144,487 10,326,189 818,298

87,820,427 71,559,850 16,261,077

582,450

9,748

46,478 39,915 58,030 127,390 300,889

88,402,877

FEDERAL DEPOSIT INSURANCE CORPORATION

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Consumer loans to individuals: Retail automobile instalment paper........ Other retail, repair and modernization in­ stalment loans.......................................... Personal instalment cash loans..................... Single-payment loans to individuals............ Loans to brokers and dealers in securities.. .. Other loans for the purpose of purchasing or carrying securities........................................ Real estate loans: On farm la n d ..................................................... On residential properties................................ On other properties......................................... Loans to banks..................................................... All other loans (including overdrafts).............

L oans a n d securities—t o ta l.............

B ank prem ises, fu rn itu re a n d fixtures, and o th e r re al e state —t o t a l .......................... Bank premises....................................................... Furniture and fixtures......................................... Real estate owned other than bank premises. Investments and other assets indirectly repre­ senting bank premises or other real estate

M iscellaneous assets—t o t a l .............................. Customers’ liability to reporting banks on acceptances outstanding............................. Income accrued but not collected..................... Prepaid expenses.................................................. Other assets...........................................................

T otal a sse ts.................................................

Number of banks.....................................

(4)

(4) (4) (4) 614,333

661,789

535,329 1,208,844 l,031,410 39,793 1,505,623

49,295,311

1,432,428 971,115 90,426 262,621

108,266

310,181

73,089 117,200 11,469 108,423

176,830,789

613,430

(4)

(4) (4) (4) 568,988

619,718

525,583 3,262,645 984,603 29,579 3,898,999

52,649,232

1,400,175 968,927 91,396 232,429

107,423

278,188

59,333 115,819 12,495 90,541

78,709,455

H3,403

280,434

329,306 404,138 1,256,594 950,213

597,225

476,738 3,263,112 907,343 27,000 51,015,424

95,459,111

13,347

66,251,123

1,348,246 959,147 88,388 198,800

101,911

266,367

40,808 133,493 12,498 79,568

C apital accounts—to ta l..................................... Capital stock, notes, and debentures.............. Surplus...................................................................

6,845,126 2,849,911 2,687,506 896,121 411,588

6,952,820 2,858,709 2,741,404 935,727 416,980

7,056,234 2,848,630 2,801,594 972,042 433,968 Undivided profits................................................. Reserves................................................................

T otal liabilities and capital a c c o u n ts. 176,830,789 78,709,455 95,459,111

MEMORANDA

Pledged assets and securities loaned—to ta l. United States Government obligations, direct and guaranteed, pledged to secure lia­ bilities ............................................................

6,130,644

4,908,464 971,674

194,289 56,217

6,846,137

5,723,172 859,051

194,954 68,960

13,296,816

12,258,515 782,197

228,575 27,529

Other assets pledged to secure liabilities. . . Assets pledged to qualify for exercise of fidu­ ciary or corporate powers, and for pur­ poses other than to secure liabilities........ Securities loaned..................................................

Secured and preferred liabilities—t o ta l . . . . Deposits secured by pledged assets pursuant to requirements of law............................... Deposits preferred under the provisions of law but not secured by pledge of assets......... Borrowings secured by pledged assets............. Other liabilities secured by pledged assets__

Reciprocal in te rb a n k dem and deposits w ith banks in th e U nited States, except private banks and A m erican branches of foreign b a n k s.......................................

6,026,363

5,045,944

967,758 9,313 3,348

6,110,796

5,146,198

954,109 8,523 1,966

12,647,668

11,653,217

982,060 9,704 2,687

(2) 614,029 525,324

Number of banks..................................... 613,430 613,403 13,347

1 Amounts as of December 31, 1941 are not comparable with amounts reported for June 30, 1942 and December 31, 1942, because of the inclusion of reciprocal interbank demand deposits with banks in the United States, except private banks and American branches of foreign banks. (See Memoranda) 2 Not reported separately. 3 Includes obligations of United States government corporations and agencies not guaranteed by the United States government. 4 Not reported on comparable basis. 6 Amount of “all other loans” as of December 31, 1942, is not comparable with amounts as of June 30, 1942, and December 31, 1941 due to reclassification of the loan items. See footnote 4. 6 Revised to include trust companies not engaged in deposit banking which submit reports to the FDIC (3 for December 31, 1941 and 4 for June 30, 1942).

Back figures—See the following Annual Reports: 1941, p. 126; 1940, p. 144; 1938, p. 164.

00ASSETS AND LIABILITIES OF OPERATING BANKS

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A N A L Y SIS O F EX A M IN A TIO N S OF IN SU R E D CO M M ERCIAL BA N K S

T a b le 107. A n a l y s is o p A s s e t s, Ca p it a l, a n d L ia b il it ie s o p I n s u r e d C o m m ercial B a n k s E x a m in e d in 1942

BANKS GROUPED ACCORDING TO AMOUNT OF DEPOSITS 00

(Amounts in thousands of dollars) ^

Banks with deposits of—

All banks $100,000 or less

$100,000 to $250,000

$250,000 to $500,000

$500,000 to $1,000,000

$1,000,000 to $2,000,000$2,000,000 to $5,000,000

$5,000,000 to $10,000,000

$10,000,000 to $50,000,000

More than $50,000,000

Number of banks............................... 13,303 118 1,307 2,697 3,408 2,600 1,857 645 492 179

Total assets—book valu e............................. Examiners’ deductions—n e t........................ Appraised value.............................................. Substandard................................................. Not criticized................................................

80,449,956 125,652 80,324,304 1,71 A ,226 78,610,07812,68665 12,621 731* 11,887

291,044 874 290,170 12,266 277,901*1,152,081 1,454 1,150,627 36,702 1,113,925

2,781,885 4,632 2,777,253 87,183 2,690,070

4,138,853 10,448 4,128,405 139,018 3,989,3876,381,726 17,418 6,364,308 22 A,175 6,1A0,13S

5,011,963 14,988 4,996,975 165,372 A,831,60S

10,881,546 27,965 10,853,581 279,211 10,57 A,370

49,798,172 47,808 49,750,364 769,565 A8,980,799

Cash and due from banks........................... 24,618,882 5,113 112,190 427,244 989,768 1,385,033 1,995,012 1,530,093 3,558,081 14,616,348

Total securities—book valu e...................... Examiners’ deductions—n e t........................ Appraised value.............................................. Substandard................................................. Not criticized................................................

33,482,527 22,721 33,459,806 617,893 32,8A2,A1S

2,060-3 2,063 119 1,91*1*

56,533 -127 56,660 2,576 51*,081*281,060 -679 281,739 10,038 271,701

770,997 -694 771,691 25,A6A 7A6,227

1,341,594 1,801 1,339,793 AA,698 1,295,095

2,346,034 3,583 2,342,451 72,217 2,270,23A

1,947,198 3,939 1,943,259 51,772 1,891,A87

4,140,816 4,670 4,136,146 77,7A0 A,058,A06

22.596.235 10,231 22,586,004 832,769 22.253.235

Loans—book value......................................... Examiners’ deductions—n e t........................ Appraised value............................................. Substandard................................................. Not criticized...............................................

20,136,352 64,425 20,071,927 767,958 19,303,969

5,00649 4,957 1*82 A,1*75115,533 733 114,800 8,252 106,51*8

419,205 1,616 417,589 22,323 395,266958,972 4,001 954,971 50,9A3 90 A,028

1,305,564 5,595 1,299,969 71,831 1,228,138

1,858,167 9,138 1,849,029 108,7 A9 1,7 A0,280

1,377,545 7,175 1,370,370 78,165 1,292,205

2,832,700 12,934 2,819,766 122,873 2,696,893

11,263,660 23,184 11,240,476 30A,SA0 10,936,136

Fixed and miscellaneous assets—book value............................................................ Examiners’ deductions—n e t........................ Appraised value............................................. Substandard................................................. Not criticized...............................................

2,212,195 38,506 2,173,689 328,875 1,8A A,81A

50719 488 133 355

6,788 268 6,520 1,1*38 5,08224,572 517 24,055 A,31*1 19,71A62,148 1,325 60,823 10,776 50,0A7

106,662 3,052 103,610 22,A89 81,121

182,513 4,697 177,816 AS,209 ISA,607

157,127 3,874 153,253 35,A35 117,818

349,949 10,361 339,588 78,598 260,990

1,321,929 14,393 1,307,536 132,.1*5 6 1,175,080

Capital accounts—book v a lu e................... R.F.C.—book value.................................... Private— book value.................................... Examiners’ deductions—n e t........................ Net sound capital—to ta l.............................

6,920,130 267,6U8 6,652,1*82 133,014 6,787,116 322,81*9 6,l*61f,267

3,284 271* 3,01068 3,216 271* 2,91*246,357 3,253 AS,101* 925 45,432 3,270 1*2,162

145,853 7,536 138,317 1,612 144,241 8,165 136,076315,582 15,591 299,991 4,804 310,778 16,180 29A,598

453,996 23,568 A30,A28 10,706 443,290

672,498 36,631 635,867 17,728 654,770

498,793 37,537 A61,256 15,338 483,455

948,856 61,816 887,0A0 30,016 918,840

3,834,911 81 ,AA2 3,75S,A69 51,817 3,783,094 R.F.C.—retirable value.............................. Private— net sound capital........................

25,185 A18,105 A1,230 613,5 A0 Al,627 AA1,828 83,1 AO 835,700 103,778 3,679,316

Adjusted liabilities (exclusive of capital accounts) —to ta l..................................... Deposits........................................................... Other liabilities..............................................

73,537,188 72,755,007 782,181

9,405 9,001 404244,738 243,308 1,430

1,006,386 1,003,588 2,7982,466,475 2,454,104 12,371

3,685,115 3,669,003 16,112

5,709,538 5,683,017 26,521

4,513,520 4,486,092 27,428

9,934,741 9,862,871 71,870

45,967,270 45,344,023 623,247

N o t e : For banks included and explanation of terms, see pages 63-65.

Back figures—See the following Annual Reports: 1941, pp. 133, 141, and 143; 1940, pp. 160, 169, and 171; 1939, pp. 151, 159, and 161.

FEDERAL DEPOSIT INSURANCE CORPORATION

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Federal Reserve Bank of St. Louis
Table 108. ASSET AND N E T SOUND CAPITAL RATIOS OF INSURED COMMERCIAL BANKS EXAMINED IN 1942

BANKS GROUPED ACCORDING TO AMOUNT OF DEPOSITS

(Amounts per $100 of book value)

Banks with deposits of—

All banks $100,000 or less

$100,000 to $250,000

$250,000 to $500,000

$500,000 to $1,000,000$1,000,000 to $2,000,000

$2,000,000 to $5,000,000

$5,000,000 to $10,000,000

$10,000,000 to $50,000,000

More than $50,000,000

Number of banks............................... 13,303 118 1,307 2,697 3,408 2,600 1,857 645 492 179

Total assets—book va lu e............................. Examiners’ deductions—n e t........................ Appraised value.............................................. Substandard................................................. Not criticized...............................................

$100.00.16 99.84 2.13 97.71$100.00.51 99.49 5.79 93.70

$100.00.30 99.70 U.21 95.49

$100.00.13 99.87 3.18 96.69$100.00.17 99.83 3.13 96.70

$100.00.25 99.75 3.36 96.39

$100.00.27 99.73 3.51 96.22

$100.00.30 99.70 3.30 96.kO

$100.00.26 99.74 2.56 97.18

$100.00.10 99.90 1.5 k 98.36

Gash and due from banks........................... 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00

Securities—book v a lu e................................. Examiners’ deductions—n e t........................ Appraised value.............................................. Substandard................................................. Not criticized...............................................

100.00.07 99.93 1.8k 98.09

100.00 -.15 100.15 5.78 9 If..3 7

100.00

— 99

100'.22 U.55 95.67

100.00 -.24 100.24 3.57 96.67100.00 -.09 100.09 3.30 96.79

100.00.13 99.87 3.33 96.5 k

100.00.15 99.85 3.08 96.77

100.00.20 99.80 2.66 97.1k

100.00.11 99.89 1.88 98.01

100.00.05 99.95 147 98.k8

Loans—book value......................................... Examiners’ deductions—n e t........................ Appraised value.............................................. Substandard................................................. Not criticized...............................................100.00.32 99.68 3.81 95.87

100.00.98 99.02 9.63 89.39

100.00.63 99.37 7.1h 92.23

100.00.39 99.61 5.32 9k.29

100.00.42 99.58 5.31 9k-27100.00.43 99.57 5.50 9k-07

100.00.49 99.51 5.85 93.66

100.00.52 99.48 5.67 93.81

100.00.46 99.54 k.3k 95.20

100.00.21 99.79 2.70 97.09

Fixed and m iscellaneous assets—book value............................................................ Examiners' deductions—n e t........................ Appraised value.............................................. Substandard................................................. Not criticized................................................

100.00 1.74 98.26 1U.87 83.39

100.00 3.75 96.25 26.23 70.02

100.00 3.95 96.05 21.18 7 k.87

100.00 2.10 97.90 17.67 80.23100.00 2.13 97.87 17.3 k 80.53

100.00 2.86 97.14 21.08 76.06

100.00 2.57 97.43 23.68 73.75

100.00 2.47 97.53 22.55 7k.98100.00 2.96 97.04 22.k6 7 k.5 8

100.00 1.09 98.91 10.02 88.89

Capital accounts—book valu e................... R.F.C.—book value.................................... Private— book value.................................... Examiners’ deductions—n e t........................ N et sound capital—to ta l............................. R.F.C—retirdble value............................... Private—net sound capital........................

100.00 3.87 96.13 1.92 98.08 U.67 98.hi

100.00 8.3 k 91.66 2.07 97.93 8.3^ 89.59100.00 7.02 92.98 2.00 98.00 7.05 90.95

100.00 5.17 9 k.83 1.11 98.89 5.60 93.29100.00 k.9k 95.06 1.52 98.48 5.13 93.35

100.00 5.19 9 k -81 2.36 97.64 5.55 92.09100.00 5.k5 9 k.55 2.64 97.36 6.13 91.23

100.00 7.53 92.k7 3.08 96.92 8.3k 88.58100.00 6.51 93.k9 3.16 96.84 8.76 88.08

100.00 2.12 97.88 1.35 98.65 2.71 95.9k

Net sound capital per $100 of— Appraised value of assets............................. Deposits........................................................... 8.45 9.33 25.48 35.73 15.66 18.67 12.54 14.37 11.19 12.66 10.74 12.08 10.29 11.52 9.67 10.73 8.47 9.32 7.60 8.34

Note: For banks included and explanation of terms, see pages 63-65.

Back figures—See the following Annual Reports: 1941, pp. 135, 145, and 147; 1940, pp. 163, 173, and 175; 1939, pp. 153, 163, and 165.

ANALYSIS OF EXAMINATIONS OF INSURED BANKS

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T a b le 109. ANALYSIS OP ASSETS, CAPITAL, AND LIABILITIES OF INSURED COMMERCIAL BANKS EXAMINED IN 1942

BANKS GROUPED ACCORDING TO NET SOUND CAPITAL RATIO

(Amounts in thousands of dollars)

00

Banks with net sound capital per $100 of appraised value of assets of—

All banks $0.01 to $4.99

$5.00 to $9.99

$10.00 to $14.99

$15.00 to $19.99$20.00 to $24.99

$25.00 to $29.99

$30.00 to $34.99

$35.00 

or more

Number of banks....................................................... 13,303 64 4,315 6,002 2,058 577 191 60 36

T o tal assets—book v a lu e ...................................................... 80,449,956 1,758,493 54,578,412 19,832,564 2,652,001 893,337 606,312 101,724 27,113 Examiners’ deductions—n e t................................................ 125,652 4,550 70,795 40,356 12,136 3,401 -6,128 477 65 Appraised value....................................................................... 80,324,304 1,753,943 54,507,617 19,792,208 2,639,865 889,936 612,440 101,247 27,048

.......................................................................... 1,711+,226 17,833 922,321+ 536,767 11+7,81+9 53,859 23,887 7,1+73 1+,231+Substandard

Not criticized........................................................................ 78,610,078 1,736,110 53,585,293 19,255,1+1+1 2,1+92,016 836,077 588,553 93,771+ 22,811+

Gash and due from b a n k s.................................................... 24,618,882 612,033 17,072,426 5,753,256 763,205 242,951 145,225 23,546 6,240

T otal securities—book v a lu e .............................................. 33,482,527 823,801 22,671,029 8,272,380 975,539 377,249 303,155 50,393 8,981 Examiners’ deductions—n e t................................................ 22,721 611 7,413 10,663 2,817 515 360 338 4

Appraised value...................................................................... 33,459,806 823,190 22,663,616 8,261,717 972,722 376,734 302,795 50,055 8,977 Substandard.......................................................................... 617,393 l+,632 329,117 191,577 55,999 13,292 16,995 2,951+ 2,827 Not criticized........................................................................ 32,81+2,1+13 818,558 22,331+,.1+99 8,070,11+0 916,723 363,1+1+2 285,800 1+7,101 6,150

L oans—book valu e.................................................................. 20,136,352 299,262 13,373,225 5,253,128 808,573 224,004 145,686 22,273 10,201 Examiners’ deductions—n e t................................................ 64,425 1,909 34,123 19,863 5,591 2,379 441 89 30 Appraised value...................................................................... 20,071,927 297,353 13,339,102 5,233,265 802,982 221,625 145,245 22,184 10,171 Substandard.......................................................................... 767,958 8,108 1+26,169 21+2,003 61,921 22,01+1 5,1+1+1+ 1,371 901 Not criticized........................................................................ 19,303,969 289,21+5 12,912,933 1+,991,262 71+1,061 199,581+ 139,801 20,813 9,270

Fixed and m iscellaneous assets—book v a lu e............. 2,212,195 23,397 1,461,732 553,800 104,684 49,133 12,246 5,512 1,691 Examiners’ deductions—n e t................................................ 38,506 2,030 29,259 9,830 3,728 507 -6,929 50 31 Appraised value...................................................................... 2,173,689 21,367 1,432,473 543,970 100,956 48,626 19,175 5,462 1,660 Substandard.......................................................................... 328,875 5,093 167,038 103,187 29,929 71,027 18,526 1,1+1+8 3,11+8 506 Not criticized........................................................................ 1,81+1+,811+ 16,271+ 1,265,1+35 1+1+0,783 30,100 17,727 2,311+ 1,151+

C apital accounts—book v a lu e ............................................ 6,920,130 76,278 3,811,252 2,224,953 427,982 192,480 144,319 31,419 11,447 R.F.C.—book value............................................................. 267,61+8 2,717 156,535 82,856 15,078 8,669 1,296 88 1+09 Private— book value............................................................. 6,652,1+82 73,561 3,651+,717 2,11+2,097 1+12,901+ 183,811 11+3,023 31,331 11,038 Examiners’ deductions—n e t................................................ 133,014 4,599 74,440 42,885 12,256 4,415 -6,125 479 65 Net sound capital—to tal...................................................... 6,787,116 71,679 3,736,812 2,182,068 415,726 188,065 150,444 30,940 11,382 R.F.C.—retirable value...................................................... 322,81+9 5,079 183,170 106,587 17,186 8,985 1,31+5 88 1+09 Private— net sound capital................................................. 6,1+61+,267 66,600 3,553,61+2 2,075,1+81 398,51+0 179,080 11+9,099 30,852 10,973

A djusted liabilities (exclusive of cap ital accoun ts)— to ta l ..................................................................................... 73,537,188 1,682,264 50,770,805 17,610,140 2,224,139 701,871 461,996 70,307 15,666 Deposits................................................................................... 72,755,007 1,675,474 50,145,974 624,831 17,487,275 2,208,666 694,808 458,699 69,102 15,009 Other liabilities....................................................................... 782,181 6,790 122,865 15,473 7,063 3,297 1,205 657

N o t e : For banks included and explanation of terms, see pages 63-65.

Back figures—See the following Annual Reports: 1941, pp. 132, 140, and 142; 1940, pp. 160, 168, and 170; 1939, pp. 150, 158, and 160.

FEDERAL DEPOSIT INSURANCE CORPORATION

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Federal Reserve Bank of St. Louis
Table llO. ASSET AND N ET SOUND CAPITAL RATIOS OF INSURED COMMERCIAL BANKS EXAMINED IN 1942

BANKS GROUPED ACCORDING TO NET SOUND CAPITAL RATIO

(Amounts per $100 of book value)

Banks with net sound capital per $100 of appraised value of assets of—

All banks $0.01 to $4.99

$5.00 to $9.99

$10.00 to $14.99

$15.00 to $19.99$20.00 to $24.99$25.00 to $29.99

$30.00 to $34.99

$35.00 

or more

Number of banks....................................................... 13,303 64 4,315 6 002 2,058 O 1 Q1 0a II ±y± OU oO

Total assets—book va lu e..................................................... $100.00.16 99.84 2.18

$100.00.26 99.74 1.01

$100.00.13 99.87 1.69

$100.00.20 99.80 2.71

$100.00.46 99.54 5.57

eiAA AA einn nn $100.00.47 QQ KQ

$100.00.24 99.76 15.62

Examiners’ deductions—n e t................................................ Appraised value....................................................................

JplUU.UlF.38 99.62 6.03

JflUO.UU

-1.01

Substandard......................................................................... 3.9U yy *uo 7.35 Not criticized........................................................................ 97.71 98.73 98.18 97.09 93.97 •70 .O a QQ XQ 97.07 92.18 8U.1U

Cash and due from banks................................................... 100.00 100.00 100.00 100.00 100.00 100.00 100.00 1inn nn UU.UU lUU.UU 1 nn nn

Securities—book valu e......................................................... Examiners’ deductions—n e t................................................ Appraised value....................................................................

100.00.07 99.93 1.84

100.00.07 99.93.56

100.00.03 99.97 1 ,U5

100.00.13 99.87 2.32

100.00.29 99.71 5.7U100.00.14 QQ Qfi

100.00.12 QQ QQ

100.00.67 99.33 5.86

100.00.04 99.96 31 ,U8 Substandard...................................................................

yy «oo 8.52 yy .00 5.61 Not criticized................................................................ 98.09 99.37 98.52 if ( mOO Q7 93.97 96.3U 9U.27 93.U7 68.U8

Loans—book value.................................................................. 100.00.32 99.68

100.00.64 99.36

100.00.26 99.74 3.19

100.00.38 99.62 U.61

100.00.69 99.31 7.66100.00 1.06 98.94 9.8U

inn nn 1 nn nn 1nn nn Examiners’ deductions—n e t................................................ 1UU.UU lUO.UU

a n luU.lfU9Q Appraised value...................................................................... .OU QQ .4U QQ .Zif QQ 71 Substandard....................................................................... 8.81 2.71 yy. / u 3.7.4

yy .ou 6.16 yy. 11

8.83 Not criticized.................................................................... 95.87 96.65 96.55 ifO •UI tfl .00 qx m Q1 AX 89.10 95.96 98.UU 90.88

Fixed and m iscellaneous assets—book value............... Examiners’ deductions—n e t................................................ 100.00 1.74 98.26 1U.87 83.39

100.00 8.68 91.32 21.77

100.00 2.00 98.00 11.U3

100.00 1.78 98.22 18.63

100.00 3.56 Qfi AA

100.00 1.03 QQ Q7

100.00 100.00Q1 100.00 1.83 98.17 29.92

Appraised value.................................................... 00.00 1KG KQ .yi no pln

Substandard.........................................................................

yo .44 28.59 570 .y I

87.71 100.00 11.82 yy .uy 57.11 Not criticized........................................................................ 69.55 86.57 7Q XQ 4 {7 ,0*7 67.85 61.26 1UU*76 UI .98 68.25

Capital accounts—book va lu e........................................... R.F.C.—book value............................................................

100.00 3.87 96.13 1.92 98.08 U.67 93.UI

100.00 3.56 96.UU 6.03 93.97 6.66 87.31

100.00 100.00 0 rya 100.00 100.00 100.00on 100.000 0

100.00

Private—book value.......................................................... 95.89 1.95 98.05 U ,81

o • t Z> 96^U8 95*50

.ifi) qq 1 n .Zo qq >yo 3.57 96.U3.57 99.43 O AT rv

Examiners’ deductions—n e t................................................ N et sound capital—to ta l....................................................!

ifO mKfO 1.93 98.07 2.86 97.14 2^29 97.71

yy .1 u -4.24 1 OA

yy.fz 1.52 QQ A Q R.F.C.—retirable value......................................................

1U4.Z409 yo.4o0 O Private—net sound capital.. ............................................. 93.2 U Jjr.i if 98.28 93.12 ■if.O ( 93.0U .yo 1 HQ Q1 .Zo 98 20 O.D/ x Uo .01 95 86

Net sound capital per $100 of—

Appraised value of assets..................................................... 8.45 9.33 4.09 4.28 6.86 7.45 11.02 12.48 15.75 18.82 21.13 27.07 124.56 AO f\Q Deposits................................................................................... aa nn 4Z.UO OU.oU 44. / 1 75.83

*For explanation of the apparent irregularity in this item, see page 65.

N o t e : For banks included and explanation of terms, see pages 63-65.

Back figures— See the following Annual Reports: 1941, pp. 134, 144, and 146; 1940, pp. 162, 172, and 174; 1939, pp. 152, 162, and 164.

ANALYSIS OF EXAMINATIONS OF INSURED BANKS

Digitized for FRASER 

http://fraser.stlouisfed.org/ 

Federal Reserve Bank of St. Louis
Table 111. A n a l y s i s OF ASSETS, CAPITAL, AND LIABILITIES OF INSURED COMMERCIAL BANKS EXAMINED IN 1942

BANKS GROUPED ACCORDING TO FIXED AND SUBSTANDARD ASSETS RATIO

(Amounts in thousands of dollars) 00Oi

Banks with fixed and substandard assets per $100 of appraised value of assets of—

All banks $0.00 $0.01 to $4.99

$5.00 to $9.99

$10.00 to $14.99

$15.00 to $19.99

$20.00 to $24.99

$25.00 to $29.99

$30.00 to $34.99$35.00

or

more

Number of banks............................... 13,303 59 8,226 3,516 1,025 293 118 32 23 11

Total assets—book va lu e............................. 80,449,956 169,359 63,005,773 12,717,837 3,152,481 969,530 223,447 91,299 48,938 71,292 Examiners’ deductions—n e t........................ 125,652 -81 41,234 38,301 23,432 9,615 4,385 3,393 2,062 3,311 Appraised value.............................................. 80,324,304 169,440 62,964,539 12,679,536 3,129,049 959,915 219,062 87,906 46,876 67,981 Substandard................................................. 1,711*,226 U9 698,521* 520,557 269,031* 131,11*1* 1*1,973 20,070 18,811* 21*, 061 Not criticized............................................... 78,610,078 169,891 62,271,015 12,158,979 2,860,015 828,771 177,089 67,836 83,062 1*3,920

Cash and due from banks........................... 24,618,882 72,208 19,976,064 3,483,585 779,766 227,870 40,310 19,311 8,498 11,270

Total securities—book v a lu e...................... 33,482,527 57,999 26,959,052 4,663,042 1,254,177 409,055 77,444 30,188 13,166 18,404 Examiners' deductions—n e t........................ 22,721 -41 5,854 7,790 4,655,252 5,016 2,171 1,014 436 474 7 Appraised value.............................................. 33,459,806 58,040 26,953,198 1,249,161 406,884 76,430 29,752 12,692 18,397 Substandard................................................. 617,893 291,677 11*9,375 93,186 58,581 12,032 5,1*78 1,61*1* 5,1*70 Not criticized............................................... 82,81*2,1*13 ........6 8 M 0 26,661,521 1*,505,877 1,156,025 31*8,303 61*,398 21*, 271* 11,01*8 12,927

Loans—book value......................................... 20,136,352 38,516 14,715,955 4,019,440 939,569 272,383 84,459 27,204 19,438 19,388 Examiners’ deductions—n e t........................ 64,425 2 24,770 19,987 11,612 4,308 1,641 1,036 649 420 Appraised value.............................................. Substandard.................................................

20,071,927 38,514 14,691,185 3,999,453 927,957 268,075 82,818 26,168 18,789 18,968 767,958 U7 298,187 275,593 111,381 1*3,155 18,118 6,638 7,309 11,1*80 7,530 Not criticized................................................ 19,308,969 88,1*67 11*,892,998 3,723,860 816,576 221*,920 61*, 700 19,530 11,1*38

Fixed and m iscellaneous assets—book value............................................................ 2,212,195 636 1,354,702 551,770 178,969 60,222 21,234 14,596 7,836 22,230 Examiners’ deductions—n e t........................ 38,506 -42 10,610 10,524 6,804 3,136 1,730 1,921 939 2,884 Appraised value.............................................. 2,173,689 678 1,344,092 541,246 172,165 57,086 19,504 12,675 6,897 19,346 828,875 2 103,660 95,589 61*,517 29,1*08 11,823 7,951* 1*,861 11,061 Not criticized............................................... 1,81*1*,811* 676 1,21*0,1*32 1*1*5,657 107,61*8 27,678 7,681 1*,721 2,036 8,285

Capital accounts—book valu e................... 6,920,130 11,465 5,017,331 1,290,636 400,687 125,438 36,098 15,391 8,094 14,990 R.F.C.— book value.................................... 267,61*8 8 125,961* 80,022 35,31*6 11*, 968 6,801* 2,237 2,205 99 Private— book value.................................... 6,652,1*82 11,1*62 1*, 891,367 1,210,611* 365,31*1 110,1*70 29,291* 13,151* 5,889 11*, 891 Examiners’ deductions—n e t........................ 133,014 -71 44,675 4,972,656 40,336 23,962 9,775 4,393 3,399 2,066 4,479 Net sound capital—to ta l............................. 6,787,116 11,536 1,250,300 376,725 115,663 31,705 11,992 6,028 10,511 R.F.C.— retirable value . ........................... 822,81+9 3 11*8,1*89 99,568 1*1*,078 17,383 7,1*51* 2,851 9,11*1 2,921* 99 Private— net sound capital........................ 6,1*61*,267 11,538 1*,821*,167 1,150,732 332,61*7 98,280 21*,251 3,101* 10,1*12

Adjusted liabilities (exclusive of capital accounts) —to ta l..................................... 73,537,188 157,904 57,991,883 11,429,236 2,752,324 844,252 187,357 75,914 40,848 57,470 72,755,007 157,221 57,321,716 11,350,195 2,739,323 839,072 185,088 74,536 40,566 47,290 782,181 683 670,167 79,041 13,001 5,180 2,269 1,378 282 10,180

N o t e : For banks included and explanation of terms, see pages 63-65.

Back figures—See the following Annual Reports: 1941, pp. 132, 140, and 142; 1940, pp. 160, 168, and 170; 1939, pp. 150, 158, and 160.

FEDERAL DEPOSIT INSURANCE CORPORATION

Digitized for FRASER 

http://fraser.stlouisfed.org/ 

Federal Reserve Bank of St. Louis
T a b le 112. ASSET AND NET SOUND CAPITAL RATIOS OF INSURED COMMERCIAL BANKS EXAMINED IN 1942

BANKS GROUPED ACCORDING TO FIXED AND SUBSTANDARD ASSETS RATIO

(Amounts per $100 of book value)

Banks with fixed and substandard assets per $100 of appraised value of assets of—

All banks $0.00 $0.01 to $4.99

$5.00 to $9.99

$10.00 to $14.99

$15.00 to $19.99

$20.00 to $24.99

$25.00 to $29.99

$30.00 to $34.99

$35.00

or

more

Number of banks............................... 13,303 59 8,226 3,516 1,025 293 118 32 23 11

Total assets—book valu e............................. Examiners' deductions—n e t........................ Appraised value.............................................. Substandard................................................. Not criticized...............................................

$100.00.16 99.84 2.13 97.71

$100.00 -.05 100.05.03 100.02

$100.00.07 99.93 1.10 98.83

$100.00.30 99.70 4-09 95.61

$100.00.74 99.26 8.54 90.72$100.00.99 99.01 13.53 8548$100.00 1.96 98.04 18.79 79.25

$100.00 3.72 96.28 21,98 74.30

$100.00 4.21 95.79 28.23 67.56

$100.00 4.64 95.36 33.75 61.61

Cash and due from banks........................... 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00

Securities—book valu e................................. Examiners' deductions—n e t........................ Appraised value.............................................. Substandard.................................................

100.00.07 99.93 1.84

100.00 -.07 100.07

100.00.02 99.98 1.08

100.00.17 99.83 3.20

100.00.40 99.60 743 92.17

100.00.53 99.47 14.32 85,15

100.00 1.31 98.69 15.54 83.15100.00 1.44 98.56 18.15

100.00 3.60 96.40 1249 83.91

100.00.04 99.96 29.72 Not criticized............................................... 98.09 100.07 98.90 96.63 80.41 70.24

Loans—book value......................................... Examiners’ deductions—n e t........................ Appraised value.............................................. Substandard................................................. Not criticized...............................................

100.00.32 99.68 3.81 95.87

100.00.01 99.99.12 99.87

100.00.17 99.83 2.03 97.80

100.00.50 99.50 6.86 92.64

100.00 1.24 98.76 11.85 86.91

100.00 1.58 98.42 15.81 82.58

100.00 1.94 98.06 2145 76.61

100.00 3.81 96.19 2440 71.79

100.00 3.34 96.66 37.60 59.06100.00 2.17 97.83 38.84 58.99

Fixed and m iscellaneous assets—book value............................................................ Examiners’ deductions—n e t........................ Appraised value.............................................. Substandard................................................. Not criticized...............................................

100.00 1.74 98.26 14-87 83.39

100.00 -6.60 106.60.31 106.29

100.00.78 99.22 7.65 91.57

100.00 1.91 98.09 17.32 80.77

100.00 3.80 96.20 36.05 60.15

100.00 5.21 94.79 48.83 45.96

100.00 8.15 91.85 55.68 36.17100.00 13.16 86.84 54.50 32.34

100.00 11.98 88.02 62.04 25.98

100.00 12.97 87.03 49.76 37.27

Capital accounts—book va lu e................... R.F.C.— book value.................................... Private— book value.................................... Examiners’ deductions—n e t........................ Net sound capital—to ta l............................. R.F.C.— retirable value............................. Private— net sound capital........................

100.00 3.87 96.13 1.92 98.08 4.67 9341

100.00.03 99.97 -.62 100.62.03 100.59

100.00 2.51 9749.89 99.11 2.96 96.15

100.00 6.20 93.80 3.13 96.87 7.71 89.16

100.00 8.82 91.18 5.98 94.02 11.00 83.02

100.00 11.93 88.07 7.79 92.21 13.86 78.35100.00 18.85 81.15 12.17 87.83 20.65 67.18

100.00 14.53 85.47 22.08 77.92 18.53 59.39

100.00 27.24 72.76 25.53 74.47 36.12 38.35

100.00.67 99.33 29.88 70.12.67 69.45

N et sound capital per $100 of— Appraised value of assets............................. Deposits........................................................... 8.45 9.33 6.81 7.34 7.90 8.67 9.86 11.02 12.04 13.75 12.05 13.78 14.47 17.13 13.64 16.09 12.86 14.86 15.46 22.23

Note: For banks included and explanation of terms, see pages 63-65.

Back figures— See the following Annual Reports: 1941, pp. 134, 144, and 146; 1940, pp. 162, 172, and 174; 1939, pp. 152, 162, and 164.

ANALYSIS OF EXAMINATIONS OF INSURED BANKS

Digitized for FRASER 

http://fraser.stlouisfed.org/ 

Federal Reserve Bank of St. Louis
Table 113. ANALYSIS OF ASSETS, CAPITAL, AND LIABILITIES OF INSURED COMMERCIAL BANKS EXAMINED IN 1942

BANKS GROUPED ACCORDING TO FEDERAL DEPOSIT INSURANCE CORPORATION DISTRICT

(Amounts in thousands of dollars)

Federal Deposit Insurance Corporation District—

Number of banks.............................

T o ta l assets—book v a lu e........................... Examiners’ deductions—n e t...................... Appraised value........................................... Substandard............................................... Not criticized.............................................

C ash an d due from b a n k s.........................

T o tal securities—book v a lu e .................... Examiners’ deductions—n e t...................... Appraised value............................. ............. Substandard............................................... Not criticized.............................................

L oans—book v a lu e....................................... Examiners’ deductions—n e t..................... Appraised value..................................... .

Substandard............................................... Not criticized.............................................

Fixed an d m iscellaneous assets—book v alu e.......................................................... Examiners’ deductions—n e t...................... Appraised value........................................... Substandard............................................... Not criticized.............................................

C apital accoun ts—book v a lu e................. R.F.C.— book value.................................. Private— book value.................................. Examiners’ deductions—n e t...................... Net sound capital—to ta l........................... R.F.C.— retirable value........................... Private— net sound capital......................

A djusted liabilities (exclusive of cap ital accoun ts)—to ta l................................... D eposits......................................................... Other liabilities............................................

481

4,385,850 12,911 4,372,939 119,230 1*,253,709

1,202,925

1,689,513 3,428 1,686,085 US,337 1,61*2,71*8

1,367,058 7,500 1,359,558 61,602 1,297,956

126,354 1,983 124,371 11*,291 110,080

449,453 17,521* 1*31,929 12,955 436,498 18,1*21 1*18,077

3,936,441 3,906,175 30,266

1,093

27,264,650 59,930 27,204,720 528,395 26,676,325

7,195,618

13,399,116 11,769 13,387,347 211*,158 13,173,189

5,812,001 22,265 5,789,736 200,907 5,588,829

857,915 25,896 832,019 113,330 718,689

2,334,097 71,363 2,262,731* 65,520 2,268,577 123,717 2,1 U ,860

24,936,143 24,444,526 491,617

1,705

10,327,539 29,377 10,298,162 1*25,037 9,873,125

3,016,713

4,365,209 8,579 4,356,630 163,391 1*,193,239

2,582,962 14,747 2,568,215 152,039 2,1*16,176

362,655 6,051 356,604 109,607 21*6,997

1,163,947 51*,579 1,109,368 29,521 1,134,426 55,537 1,078,889

9,163,736 9,106,328 57,408

1,012

3,971,382 3,025 3,968,357 66,835 3,901,522

1,448,877

1,397,377 637 1,396,740 25,1*88 1,371,252

1,020,852 2,008 1,018,844 28,71*5 990,099

104,276 380 103,896 12,602 91,29 1*

340,001 13,910 326,091 3,247 336,754 11*,071* 322,680

3,631,603 3,610,197 21,406

970

3,084,247 3,340 3,080,907 69,783 3,011,121*

1,253,859

952,299 342 951,957 19,910 932,01*7

785,577 2,269 783,308 33,761 71*9,51*7

92,512 729 91,783 16,112 75,671

255,203 16,298 238,905 4,040 251,163 16,390 231*,773

2,829,744 2,811,757 17,987

1,437

4,229,385 3,699 4,225,686 111,516 1*,111*,170

1,621,817

1,367,933 -281 1,368,214 60,91*5 1,307,269

1,164,874 3,211 1,161,663 38,71*0 1,122,923

74,761 769 73,992 11,831 62,161

328,304 16,339 311,965 3,829 324,475 16,876 307,599

3,901,211 3,882,769 18,442

1,421

5,092,740 2,442 5,090,298 70,913 5,019,385

1,634,624

2,202,819 -177 2,202,996 22,219 2,180,777

1,162,456 1,675 1,160,781 36,1*52 1,121*,329

92,841 944 91,897

1 2 ,21*2 79,655

384,566 35,699 81*8,867 2,528 382,038 35,809 31*6,229

4,708,260 4,690,821 17,439

7,578,797 1,301 7,577,496 79,899 7,1*97,597

2,523,242

3,223,279 -741 3,224,020 26,623 3,197,397

1,733,974 1,913 1,732,061 1*1*,687 1,687,371*

98,302 129 98,173 8,589 89,581*

526,385 7.620 518,765 1,400 524,985 7.620 517,365

7,052,511 7,022,447? 30,064p

1,056

1,775,404 344 1,775,060 17,205 1,757,855

578,443

596,140 -715 596,855 1*,872 591,983

566,085 806 565,279 10,891 551*,388

34,736 253 34,483 1,U 2 33,01+1

151,504 1*,667 11*6,837 378 151,126 1*,687 11*6,1*39

1,623,934' 1,614,902? 9,032

10

1,383

2,318,876 899 2,317,977 23,1+83 2,29U,U9U

962,236

644,997 -845 645,842 3,7 6 U 61*2,078

672,303 1,877 670,426 18,507 651,919

39,340 -133 39,473

1,212 38,261

205,352t' 5,1*89\ 199,913 1,058’ 204,294' 5,508 198,786

2,113,683 2,107,618 6,065

11

836

2,646,883 1,517 2,645,366 25,909 2,619,1*57

1,156,079

728,073 -264 728,337 7,621 720,716

701,722 1,458 700,264 13,735 686,529

61,009 323 60,686 1*,553 56,133

210,892 8.699 202,193 1,541 209,351 8.699 200,652

2,436,015- 2,424,326, 11,689

7,774,203 6,867 7,767,336 176,021 7,591,315

2,024,449

2,915,772 989 2,914,783 25,065 2,889,718

2,566,488 4,696 2,561,792 127,892 2,1*33,900

267,494 1,182 266,312 23,061*

570,4261 15,511' 551*, 915 6,997 563,429' 15,511 ! 51*7,918

7,203,907 7,133,141 70,766

N o t e : For banks included and explanation of terms, see pages 63-66.

Back figures—See the following Annual Reports: 1941, pp. 136, 148, and 150; 1940, pp. 164, 176, and 178; 1939, pp. 154, 166, and 168.

FEDERAL DEPOSIT INSURANCE CORPORATION

Digitized for FRASER 

http://fraser.stlouisfed.org/ 

Federal Reserve Bank of St. Louis
Table 114. ASSET AND N ET SOUND CAPITAL RATIOS OF INSURED COMMERCIAL BANKS EXAMINED IN 1942

BANKS GROUPED ACCORDING TO FEDERAL DEPOSIT INSURANCE CORPORATION DISTRICT

(Amounts per $100 of book value)

Federal Deposit Insurance Corporation District—

1 2 3 4 5 6 7 8 9 10 11 12

Number of banks................................. 481 1,093 1,705 1,012 970 1,437 1,421 1,401 1,056 1,383 836 508

T o ta l assets—book v a lu e............................... Examiners' deductions—n e t.......................... Appraised value................................................ Substandard......................................... Not criticized.................................................

$100.00.29 99.71 2.72 96.99

$100.00.22 99.78 1.94 97.84

$100.00.28 99.72 4.12 95.60

$100.00.08 99.92 1.68 98.24

$100.00.11 99.89 2.26 97.63

$100.00.09 99.91 2.64 97.27

$100.00.05 99.95 1.39 98.56$100.00.02 99.98 1.05 98.93

$100.00.02 99.98.97 99.01

$100.00.04 99.96 1.01 98.95

$100.00.06 99.94.98 98.96

$100.00.09 99.91 2.26 97.65

C ash an d du e fro m b a n k s............................. 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00

Securities—book v a lu e................................... Examiners' deductions—n e t.......................... Appraised value................................................ Substandard................................................. Not criticized...............................................

100.00.20 99.80 2.57 97.28

100.00.09 99.91 1.60 98.31

100.00.20 99.80 8.74 96.06

100.00.05 99.95 1.82 98.13

100.00.04 99.96 2.09 97.87

100.00 -.02 100.02 4.45 95.57

100.00 -.01 100.01 1.01 99.00

100.00 -.02 100.02.82 99.20

100.00 -.12 100.12.82 99.80

100.00 -.13 100.13.58 99.55100.00 -.04 100.04 1.05 98.99

100.00.03 99.97.86 99.11

Loans—book valu e........................................... Examiners’ deductions—n e t.......................... Appraised value.............................................. Substandard................................................. Not criticized..................................................

100.00.55 99.45 4 .51 94.94

100.00.38 99.62 8.46 96.16

100.00.57 99.43 5.89 93.54

100.00.20 99.80 2.81 96.99

100.00.29 99.71 4.30 95.41

100.00.28 99.72 3.32 96.40

100.00.14 99.86 8.14 96.72

100.00.11 99.89 2.58 97.31

100.00 .14 99.86 1.92 97.94100.00.28 99.72 2.75 96.97

100.00.21 99.79 1.96 97.83

100.00.18 99.82 4.98

94.84

Fixed an d m iscellaneous assets—book valu e........................................................ Examiners' deductions—n e t.......................... Appraised value................................................ Substandard................................................. Not criticized..................................................

100.00 1.57 98.43 11.81 87.12

100.00 3.02 96.98 18.21 83.77

100.00 1.67 98.33 30.22 68.11

100.00.36 99.64 12.09 87.55

100.00.79 99.21 17.42 81.79

100.00 1.03 98.97 15.82 83.15

100.00 1.02 98.98 13.18 85.80100.00.13 99.87 8.74 91.13

100.00.73 99.27 4.15 95.12

100.00 -.34 100.34 3.08 97.26

100.00.53 99.47 7.46 92.01

100.00.44 99.56 8.62 90.94

C apital accoun ts—book v a lu e ..................... R.F.C.— book value...................................... Private— book value...................................... Examiners' deductions—n e t.......................... N et sound capital—to ta l................................ R.F.C.— retirable value................................ Private— net sound capital...........................

100.00 S.90 96.10 2.88 97.12 u.io 93.02

100.00 3.06 96.94 2.81 97.19 5.30 91.89100.00 4.69 95.31 2.54 97.46 4.77 92.69

100.00 4.09 95.91.95 99.05 4.14 94.91

100.00 6.39 93.61 1.58 98.42 6.42 92.00

100.00 4.98 95.02 1.17 98.83 5.14 93.69

100.00 9.28 90.72.66 99.34 9.31 90.03

100.00 1.45 98.55.27 99.73 1.45 98.28

100.00 3.08 96.92.25 99.75 3.09 96.66

100.00 2.65 97.35.52 99.48 2.68 96.80

100.00 4.12 95.88.73 99.27 4.12 95.15

100.00 2.72 97.28 1.23 98.77 2.72 96.05

N et sound cap ital per $100 of— Appraised value of assets............................... Deposits.............................................................

9.98 11.17 8.34 9.28 11.02 12.46 8.49 9.33 8.15 8.93 7.68 8.36 7.51 8.14 6.93 7.48 8.51 9.36 8.81 9.69 7.91 8.64 7.25 7.90

N ote: For banks included and explanation of terms, see pages 63-66.

Back figures—See the following Annual Reports: 1941, pp. 138, 152, and 154; 1940, pp. 166, 180, and 182; 1939, pp. 156, 170, and 172.

ANALYSIS OF EXAMINATIONS OF INSURED BANKS

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Table 115. DISTRIBUTION OF INSURED COMMERCIAL BANKS EXAMINED IN 1942 ACCORDING TO NET SOUND CAPITAL RATIO

BANKS GROUPED BY FIXED AND SUBSTANDARD ASSETS RATIO, RATE OF NET EARNINGS, AND AMOUNT OF DEPOSITS

All banks

Banks with net sound capital per $100 of appraised value of assets of—

$0.01 to $4.99$5.00 to $9.99

$10.00 to $14.99

$15.00 to $19.99

$20.00 to $24.99

$25.00 to $29.99

$30.00 to $34.99

$35.00

or

more

All banks..................................................................................... 13,303 64 4,315 6,002 2,058 577 191 60 36

Banks with fixed and substandard assets per $100 of appraised value of assets of— $0 00 59 5 17 17 16 3 1

$0.01 to $4.99.......................................................................... 8,226 45 3,220 3,650 963 251 63 24 10

$5.00 to $9.99.......................................................................... 3,516 3 828 1,719 667 197 67 23 12

$10.00 to $14.99...................................................................... 1,025 4 176 457 260 81 32 8 7

$15 00 to $19 99 ................ 293 3 45 105 93 30 12 5

$20 00 to $24 99 . . . . 118 1 16 40 41 9 9 2

$25 00 to $29 99 ....................................... 32 1 4 10 9 3 4 1

$30 00 to $34 99 ..................................... 23 1 4 3 8 3 2 2

JQK HA nr TY*inrp ............ 11 1 5 1 1 1 2

Banks w ith net current operating earnings per $100 of total assets of— $ 0 50 or less ....................... 37 7 13 8 5 2 2

ft—a 01 tn n 4.Q 83 2 35 34 7 3 2

$0.00 to $0.49.......................................................................... 1,334 24 629 517 119 31 8 4 2

$0.50 to $0.99.......................................................................... 4,679 23 1,923 1,978 572 135 38 6 4

$1.00 to $1.49.......................................................................... 4,208 10 1,225 2,037 671 180 63 16 6

$1.50 to $1.99.......................................................................... 1,842 4 358 927 382 114 35 11 11

$2 00 to $2 49 .......................................................... 689 100 323 178 56 21 9 2

$2.50 to $2.99.......................................................................... 255 1 25 113 76 26 8 4 2

15125 7

6

4713 405

261

14 10 7

Banks w ith deposits of— 118 1 1 7 29 33 19 14 14

$100,000 to $250,000.............................................................. 1,307 3 65 439 510 191 72 20 7

$250,000 to $500,000............................................................. 2,697 7 456 1,477 561 133 47 12 4

$500,000 to $1,000,000.......................................................... 3,408 4 1,149 1,679 425 107 31 6 7

$1,000,000 to $2,000,000...................................................... 2,600 6 991 1,233 294 60 12 1 3

$2,000,000 to $5,000,000...................................................... 1,857 7 856 772 174 36 6 5 1

nr»n nnn nnn non 645 13 338 235 45 11 3

*1 a aaa nnn +r* non non 492 14 320 133 19 4 2

1 fUnn 0KA AAA fiOA 179 9 139 27 1 2 1

N o t e : For banks included and explanation of terms, see pages 63-65.

Back figures—See the following Annual Reports: 1941, p. 156; 1940, p. 184; 1939, p. 174.

FEDERAL DEPOSIT INSURANCE CORPORATION

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T a b le 116. DISTRIBUTION OF DEPOSITS OF INSURED COMMERCIAL BANKS EXAMINED IN 1942

BANKS GROUPED ACCORDING TO NET SOUND CAPITAL RATIO AND BY FIXED AND SUBSTANDARD ASSETS RATIO,

RATE OF NET EARNINGS, AND AMOUNT OF DEPOSITS 

(Amounts in thousands of dollars)

All banks....................................................................................

Banks with fixed and substandard assets per $100 of appraised value of assets of— $0.00......................................................................................... $0.01 to $4.99......................................................................... $5.00 to $9.99..........................................................................

$10.00 to $14.99..................................................................... $15.00 to $19.99..................................................................... $20.00 to $24.99.....................................................................

$25.00 to $29.99..................................................................... $30.00 to $34.99..................................................................... $35.00 or more........................................................................

Banks with n et current operating earnings per $100 of total assets of— $-0.50 or less...................................................................... $-0.01 to $-0.49.................................................................

$0.00 to $0.49...................................................................... $0.50 to $0.99...................................................................... $1.00 to $1.49..................................................................... $1.50 to $1.99......................................................................

$2.00 to $2.49..................................................................... $2.50 to $2.99..................................................................... $3.00 or more...................................................................... Not available......................................................................

Banks with deposits of— $100,000 or less................................................................... $100,000 to $250,000..................................... ................ $250,000 to $500,000.........................................................

$500,000 to $1,000,000...................................................... $1,000,000 to $2,000,000.................................................. $2,000,000 to $5,000,000..................................................

$5,000,000 to $10,000,000 ................................................ $10,000,000 to $50,000,000.............................................. More than $50,000,000......................................................

All banks

72,755,007

157,221 57,321,716 11,350,195

2,739,323 839,072 185,088

74,536 40,566 47,290

31,043 235,120

23,672,110 35,258,769 10,010,494 1,876,420

589,926 145,990 61,933 873,202

9,001 243,308 1,003,588

2,454,104 3,669,003 5,683,017

4,486,092 9,862,871 45,344,023

Banks with net sound capital per $100 of appraised value of assets of-

$0.01 to $4.99

1,675,474

24,299 1,557,830 17,826

54,465 2,350 3,260

5,484 5,428 4,532

3,459

1,053,372 571,423 34,596 12,368

256

61 555 2,384

3,779 8,587 25,279

95,917 267,926 1,270,986

$5.00 to $9.99

50,145,974

111,992 42,471,787 6,180,182

873,970 427,170 36,241

12,600 14,850 17,182

8,934 162,086

19,906,926 24,339,040 4,209,442 529,947

107,489 18,391 5,916 857,803

61 13,013 182,439

842,541 1,408,982 2,647,330

2,375,578 6,749,542 35,926,488

$10.00 to $14.99

17,487,275

7,219 11,883,051 4,106,019

1,204,677 172,316 60,099

25,352 7,149 21,393

17,337 61,381

2,566,251 9,365,616 4,169,744 915,910

281,221 69,722 26,841 13,252

547 85,358 550,308

1,198,363 1,737,858 2,351,373

1,624,633 2,400,267 7,538,568

$15.00 to $19.99

2,208,666

9,257 780,340 743,428

456,236 117,990 62,945

28,888 8,436 1,146

2,462 6,987

113,129 750,611 889,122 288,556

101,703 40,905 13,124 2,067

2,425 95,989 199,367

302,906 409,341 520,814

295,915 319,130 62,779

$20.00 to $24.99

694,808

4,258 232,801 246,419

94,422 98,028 15,661

1,092 2,127

1,244

28,757 201,679 312,181 105,581

25,369 11,482 7,44980

2,597 32,008 46,565

75,385 81,461 102,895

72,496 87,406 193,995

$25.00 to $29.99

458,699

196 384,306 33.895

18.896 13,684 5,027

789 1,87234

349 221

2,295 28,752 379,481 13,597

27,469 2,758 3,777

1,430 11,779 16,920

22,384 16,817 16,609

21,553

351,207

$30.00 to $34.99

69,102

8,711 19,055

33,802 7,534

393 755 14,395 5,083

44,804 888 2,784

966 3,489 4,298

3,963 1,692 16,094

38,600

$35.00

15,009

2,890 3,371

2,855

1,855

331 704 3,003

987 893 1,533 5,378

1,871 1,588 2,042

914 1,117 1,307

4,783 4,265 2,623 CO

N o te : For banks included and explanation of terms, see pages 63-65. Back figures—See the following Annual Reports: 1941, p. 157; 1940, p. 185; 1939, p. 175.

ANALYSIS OF EXAMINATIONS OF INSURED BANKS

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EARNINGS OF INSURED BANKS

T able 117. EARNINGS, EXPENSES, AND DIVIDENDS OP INSURED BANKS, 1942

BY CLASS OF BANK 

(Amounts in thousands of dollars)

Insured commercial banks All insured commercial banks

Banks not submitting reports to FDIC

State banks submitting reports to FDIC

Insured

Total Members F. R. System

Other1

mutual savings banks2

Operating throughout the year

Operating less than full year3

National State

Number of banks................................................................ 13,347 5,081 1,595 8 6,663 56 13,282 65

Current operating earnings: Interest and dividends on securities........................................... 610,298 352,896 186,693 159 70,550 34,057 609,256 1,042 Interest and discount on loans..................................................... 804,717 431,218 208,314 730 164,455 32,331 803,144 1,573 Service charges and other fees on bank’s loans........................ 12,084 5,625 3,416 8 3,035 ) 12,038 46 Service charges on deposit accounts........................................... Other service charges, commissions, fees, and collection and 84,309 46,373 21,803 187 15,946 154 84,171 138

Trust department •• •• .........................

55,148 100,652 123,484

24,046 32,977 12,224 58,956 131 18,747 8,719 54,992 98,194 156 2,458 Other current operating earnings................................................ 66,567 35,351 55 21,511 9,745 123,094 390 Total current operating earnings..................................... 1,790,692 959,702 526,757 1,270 302,963 76,287 1,784,889 5,803

Current operating expenses: 219,388 111,561 153 2,715 58,319 49,355 218,340 1,048 Salaries and wages—employees.................................................... Fees paid to directors and members of executive, discount, 333,171 178,903 111,704 291 42,273 5,915 332,024 1,147

and other committees............................................................ 11,541 5,809 2,726 9 2,997 389 11,491 50 Interest on time deposits (including savings deposits)........... Interest and discount on borrowed m oney...............................

174,674 336 89,37664 38,81842 185 46,295 230 w 174,289 333 3853

Recurring depreciation on banking house, furniture, and 39,917 24,215 9,218 27 6,457 743 39,860 57 Other current operating expenses................................................ 346,045 183,228 106,115 268 56,434 9,654 344,492 1,553 Total current operating expenses, excluding taxes. .. 1,125,072 593,156 326,942 933 204,041 19,416 1,120,829 4,243

N et current operating earnings, before taxes...................... 665,620 366,546 199,815 337 98,922 56,871 664,060 1,560

FEDERAL DEPOSIT INSURANCE CORPORATION

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Federal Reserve Bank of St. Louis
T axes: Other than on net income.................................. On net income®...................................................... Total taxes.......................................................

N et current operating earnings, after taxes

Recoveries and profits: Recoveries on securities...................................... Profits on securities sold or redeemed............. Recoveries on loans.............................................. All other................................................................. Total recoveries and profits......................

Losses and charge-offs: On securities.......................................................... On loans................................................................. All other................................................................. Total losses and charge-offs.....................

Non-operating loss...............................................

Net profits after taxes.........................................

Dividends and interest on capital: Dividends declared on preferred stock and interest paid on capital notes and debentures..................................... Cash dividends declared on common stock.............................. Total dividends declared and interest paid on capital

N et additions to capital from profits...........................

Number of active officers, December 31........................ Number of other employees, December 31....................

5164,658 11,968 176,626

599,659 649,116 6113 15,770 11,968 27,738

5,10433 5,137

164,184 11,911 176,095

47457 99,659 49,116 113 531

488,994 266,887 150,699 224 71,184 51,734 487,965 1,029

55,947 36,162 12,110 17 7,658 5,164 55,859 88 66,457 30,465 29,443 10 6,539 7,112 66,390 67 68,546 40,592 15,297 48 12,609 653 68,294 252 31,825 14,276 10,073 3 7,473 6,163 31,690 135 222,775 121,495 66,923 78 34,279 19,092 222,233 542

120,614 73,074 29,611 22 17,907 10,379 120,372 242 80,647 43,018 21,746 38 15,845 9,211 80,307 340 69,857 29,648 25,942 8 14,259 13,896 69,546 311 271,118 145,740 77,299 68 48,011 33,486 270,225 893

48,343 24,245 10,376 -10 13,732 14,394 47,992 351

440,651 242,642 140,323 234 57,452 37,340 439,973 678

14,523 6,681 4,402 12 3,428 318 14,434 89 213,085 120,856 71,068 113 21,048 733,209 212,504 581 227,608 127,537 75,470 125 24,476 33,527 226,938 670

213,043 115,105 64,853 109 32,976 3,813 213,035 8

54,925 25,495 10,099 44 19,287 363 54,649 276 216,473 114,570 67,435 212 34,256 2,884 215,588 885

otijo , i . ^ , , _ wuuxw in \ji vyiuuiiiuid* nub ixitJixiutJrs ui tixtj r etitjrai reserve oyscem. 2 Includes 3 mutual savings banks, members of the Federal Reserve System. * Banks submitting reports covering less than the full year’s operations or materially affected by mergers. Also includes: 10 trust companies not engaged in deposit banking 7Tmf ure<J bank in the possessions, which submits report to FDIC. Includes, in addition, data for national banks which reported for the first half of the year only. « Interest and dividends paid depositors of mutual savings banks are included as a deduction from net profits. 5 Includes income taxes paid by banks not submitting reports to FDIC. 8 Income taxes published separately only for banks submitting reports to FDIC. 7 Interest and dividends paid depositors. See footnote 3.

N o t e : Minus (-) indicates non-operating profit.

Back figures—See the following Annual Reports: 1941, p. 162; 1940, p. 194; 1939, p. 182; 1938, p. 214; 1937, p. 141 and p. 144; 1936, p. 165; 1935, p. 198.

CDCOEARNINGS OF INSURED BANKS

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<x>

Table 118. RATIOS OF EARNINGS, EXPENSES, AND DIVIDENDS OF INSURED COMMERCIAL BANKS, 1942

BANKS GROUPED ACCORDING TO AMOUNT OF DEPOSITS 

(Amounts per $100 of total assets1)

Banks with deposits of—2

All banks $100,000

or less

$100,000 to $250,000

$250,000 to $500,000$500,000 to $1,000,000

$1,000,000 to $2,000,000

$2,000,000 to $5,000,000

$5,000,000 to $10,000,000

$10,000,000 to $50,000,000

More than $50,000,000

Number of banks®............................................ 13,282 86 1,085 2,405 3,256 2,771 2,155 730 585 209

Current operating earnings: Interest and dividends on securities......................... $0.64 $0.37 $0.44 $0.55 $0.60 $0.68 $0.73 $0.74 $0.66 $0.61

Interest and discount on loans.................................. .84 2.56 2.18 1.87 1.70 1.54 1.35 1.17 .97 .60

Service charges and other fees on bank’s loans. . . . .01 .12 .04 .03 .02 .02 .02 .02 .02 .01

Service charges on deposit accounts......................... .09 .17 .13 .14 .14 .16 .17 .17 .14 .05

Other service charges, commissions, fees, and collection and exchange charges....................... .06 .50 .41 .30 .22 .14 .09 .07 .05 .03

.10 .25 .00 .00 .01 .01 .04 .07 •13 .12

Other current operating earnings............................. .13 .31 .11 .13 .12 .13 .15 .17 .20 .11

Total current operating earnings.................. 1.87 4.28 3.31 3.02 2.81 2.68 2.55 2.41 2.17 1.53

Current operating expenses: $0.23 $1.37 $0.95 $0.78 $0.63 $0.50 $0.40 $0.32 $0.26 $0.14

Salaries and wages—employees............................. .35 .46 .22 .22 .25 .31 .38 .42 .44 .33

Fees paid to directors and members of executive, discount, and other committees. . ............... .01 .05 .05 .04 .04 .04 .03 .02 .02 .00

Interest on time deposits (including savings deposits)................................................................. .18 .25 .35 .41 .43 .42 .38 .33 .23 .10

Interest and discount on borrowed m oney............. .00 .05 .00 .00 .00 .00 .00 .00 .00 .00

Recurring depreciation on banking house, furni­ ture, and fixtures................................................. .04 .11 .08 .07 .07 .06 .07 .07 .05 .03

Other current operating expenses............................. .36 .91 .64 .55 .49 .47 .45 .47 .45 .30

Total current operating expenses, excluding taxes. 1.17 3.20 2.29 2.07 1.91 1.80 1.71 1.63 1.45 .90

Net current operating earnings, before ta x es... $0.70 $1.08 $1.02 $0.95 $0.90 $0.88 $0.84 $0.78 $0.72 $0.63

Taxes: Other than on net income4......................................... $0.17 $0.28 $0.17 $0.16 $0.18 $0.20 $0.20 $0.20 $0.20 $0.16

.01 .17 .13 .11 .07 .05 .03 .02 .01 .00

.18 .45 .30 .27 .25 .25 .23 .22 .21 .16

Net current operating earnings, after taxes. .. . $0.52 $0.63 $0.72 $0.68 $0.65 $0.63 $0.61 $0.56 $0.51 $0.47

FEDERAL DEPOSIT INSURANCE CORPORATION

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Recoveries and profits: $0.06.07 $0.03.03 $0.05.02 $0.06.03 $0.06.04 $0.07.05 $0.07.06 $0.07.07 $0.08.07 $0.05 Profits on securities sold or redeemed..................... .08 Recoveries on loans...................................................... .07 .30 .24 .18 .13 .11 .10 .09 .09 .05 All other......................................................................... .03 .07 .07 .07 .05 .05 .05 .05 .05 .02 Total recoveries and profits.............................. .23 .43 .38 .34 .28 .28 .28 .28 .29 .20

Losses and charge-offs: On securities.................................................................. $0.13.08 $0.07.48 $0.06.19 $0.09.13 $0.12.13 $0.16.13 $0.18.13 $0.19.13 $0.16.11 $0.10 On loans......................................................................... .06 All other......................................................................... .07 .10 .10 .09 .08 .09 .10 .11 .10 .06 Total losses and charge-offs............................. .28 .65 .35 .31 .33 .38 .41 .43 .37 .22

Non-operating lo ss....................................................... $0.05 $0.22 $-0.03 $-0.03 $0.05 $0.10 $0.13 $0.15 $0.08 $0.02

N et profits after taxes................................................. $0.47 $0.41 $0.75 $0.71 $0.60 $0.53 $0.48 $0.41 $0.43 $0.45

Dividends and interest on capital: Dividends declared on preferred stock and interest paid on capital notes and debentures.............. $0.02.22 $0.10.28 $0.05.25 $0.03.25 $0.02.24 $0.02.23 $0.03.20 $0.03.15 $0.02.20 $0.01 Cash dividends declared on common stock............ .24 Total dividends declared and interest paid on cap ital........................................................ .24 .38 .30 .28 .26 .25 .23 .18 .22 .25

Net additions to capital from profits................... $0.23 $0.03 $0.45 $0.43 $0.34 $0.28 $0.25 $0.23 $0.21 $0.20

Number of active officers, December 3 1................ 54,649 215,588 115 2,001 1,014 5,357 3,575 8,804 8,515 9,014 13,340 9,145 21,864 4,262 17,351 5,847 38,246 10,112 Number of other employees, December 31............ 67 111,616

Total assets, December 31 (in thousands of d olla rs)............................................................. 95,296,200 10,594 288,673 1,175,092 2,901,923 4,593,105 7,558,954 5,752,864 13,031,809 59,983,186

1 Total assets are as of December 31. 2 Total deposits are as of December 31, for banks not submitting reports to FD IC , and are averages of figures for December 31, 1941, June 30, 1942, and December 31, 1942, for banks submitting reports to FD IC . 3 For banks excluded see footnote 3 of Table 117. 4 Includes income taxes paid by banks not submitting reports to F D IC . 6 Income taxes published separately only for banks submitting reports to FD IC.

N o t e : Minus (-) indicates non-operating profit.

Back figures—See the Annual Report for 1941, p. 166.

CDCnEARNINGS OF INSURED BANKS

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SU SPE N SIO N S, RECEIVERSH IPS, AND M ERG ER S

T a b le 119. NUMBER AND DEPOSITS OF BANKS SUSPENDING OPERATIONS, PLACED IN RECEIVERSHIP, AND MERGED WITH THE FINANCIAL AlD

o f t h e F e d e r a l D e p o s it I n s u r a n c e C o r p o r a t io n , 1934-1942

BANKS GROUPED BY CLASS, YEAR, AMOUNT OF DEPOSITS, AND STATE

Banks suspending operations Banks involving FDIC disbursement

Number Deposits (in thousands of dollars)1 Number Deposits (in thousands of dollars)1

Total Insured Non­ insured2 Total Insured Non­ insured2 Total Placed in receiver­ ship Merged Total Placed in receiver­ ship Merged

All banks.............................................................. 333 243 90 148,465 107,151 41,314 390 240 150 482,977 100,690 382,287

Class of bank National banks................................................. 20 20 17,957 17,957 61 19 42 82,248 14,363 67,885 State banks members F. R. System.......... 6 6 26,548 26,548 20 6 14 179,089 26,548 152,541 Banks not members F. R. System............... 307 217 90 103,960 62,646 41,314 309 215 94 221,640 59,779 161,861

Calendar year 1934 ................................................................ 57 9 48 36,937 1,952 34,985 9 9 1,952 1,952 1935.................................................................... 34 26 8 9,852 9,005 847 25 24 1 12,931 8,702 4,229 1936.................................................................... 44 41 3 11,412 10,820 592 69 42 27 27,323 11,037 16,286

1937.................................................................... 59 53 6 19,722 19,242 480 75 50 25 33,100 14,715 18,385 1938.................................................................... 56 49 7 13,172 11,969 1,203 74 50 24 59,550 10,121 49,429 1939.................................................................... 42 32 10 34,997 32,558 2,439 60 32 28 157,599 32,558 125,041

1940.................................................................... 23 19 4 5,958 5,600 358 43 19 24 142,331 5,600 136,731 1941.................................................................... 9 8 1 14,705 14,626 79 15 8 7 29,617 14,626 14,991 1942.................................................................... 9 6 3 1,710 1,379 331 20 6 14 18,574 1,379 17,195

Banks with deposits of—1 $100,000 or less................................................ 128 88 40 7,367 5,213 2,154 109 86 23 6,422 5,010 1,412 $100,000 to $250,000....................................... 109 84 25 17,084 13,283 3,801 106 84 22 16,827 13,136 3,691 $250,000 to $500,000....................................... 50 33 17 17,093 11,075 6,018 56 34 22 19,547 11,353 8,194

$500,000 to $1,000,000................................... 24 21 3 17,269 14,925 2,344 46 21 25 34,141 14,925 19,216 $1 000 000 to $2,000,000............................... 10 10 13,774 13,774 35 10 25 49,884 13,774 36,110 $2)000,000 to $5,000,000................................ 8 5 3 26,104 16,223 9,881 23 3 20 71,124 9,834 61,290

$5 000 000 to $10 000,000 ....................... 2 2 17,116 17,116 7 7 45,895 45,895 $10 000 000 to $50,000,000 ......................... 2

2 32,658 32,658 8 2 6 239,137 32,658 206,479

FEDERAL DEPOSIT INSURANCE CORPORATION

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Federal Reserve Bank of St. Louis
State Alabama A rkansas.. . . California. . . Colorado Connecticut.

Florida.. Georgia. Illinois.. Indiana. Iow a__

Kansas.............. Kentucky......... Louisiana.......... M aryland......... Massachusetts.

Michigan... Minnesota.. Mississippi. Missouri. . . M ontana...

Nebraska.............

New Hampshire. New Jersey........ .

New York.......... North Carolina..

North Dakota. Ohio................... Oklahoma........ Oregon.............. Pennsylvania. .

South Carolina. South D akota.. Tennessee......... Texas................. Vermont...........

Virginia........... Washington... West Virginia. Wisconsin____ 24 20

14

286 1,08184

8

1,514

140 1,013 4,150 5,704 4,805

944 6,445 1,697 828

294 640 332 7,081 213

1,009

53,031 20,33583

1,524 2,964 1,614

10,366

347 2,759 1,679 3,724 2,479

1,025

1,649 6,618

100 1,081

1,514

140 967 3,908 3,416 4,097

552 4,639 1,654 828

81 640 332 5,033 213

532

30,917 13,276

1,509 2,242 1,550

9,899

136 2,759 1,389 3,071 2,479

558

1,649 5,899

186 

‘ ’ 84

46 242 2,288 708

392 1,80643

213

2,048

477

22,114 7,059

15 72264

467

211

290 653

467

719

34

3

20 10

528 1,081 1,078

8

1,514

414 996 5.885 9,192 5,522

1,247 8,431 1,654 4,569 3,019

12,388 640 332 6,917 296

532 296 184,514 132,918 952

3,788 2,242 2,032 1,114 61,529

136 2.885 1,867 3,148 2,829

4,664 1,538 1,649 8,633

100 1,081

1,514

140 967 1,113 3,415 503

552 4,434 1,654 828

145 640 332 5,032 213

532

30,917 13,27683

1,509 2,242 1,465

‘ 9,899

136 2,759 1,545 3,071 2,479

558

1,649 5,899

1,078

428

27429 4,772 5,777 5.019

695 3,997

' 3 ,741 3.019

12,243

1,88583

296 153,597 119,642 869

2,279

567 1,114 51,630

126 32277 350

4,106 1,538

2,734

i Deposits of insured banks are as of date of suspension or merger; deposits of noninsured banks are as of latest report prior to suspension. Figures for each bank are rounded to thousands of dollars.

3 Excludes noninsured banks operating under restrictions or moratoria which were placed in receivership or liquidation.

N o t e : For reconcilement of figures relating to number of suspensions, receiverships and mergers, see the Annual Report for 1941, p. 99.

-3SUSPENSIONS, RECEIVERSHIPS, AND MERGERS

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Federal Reserve Bank of St. Louis
Table 120. ASSETS AND LIABILITIES OP INSURED BANKS PLACED IN RECEIVERSHIP, 1934-1942

AS SHOWN BY BOOKS OF BANK AT DATE OF SUSPENSION

Assets Liabilities and capital accounts

Cash and due from banks

U. S. Gov­ ernment securities

Other securities

Loans, discounts, and overdrafts

Banking house, furniture & fixtures

Other real estate

Other assets

Total Total deposits Other liabilities R. F. C. capital

Private capital stock

Other capital accounts1

T o ta l..$19,513,336 $9,067,506 $15,500,461 $63,638,720 $4,600,823 $11,879,376 $8,261,396 $132,461,618 $100,695,043 $10,108,310 $5,859,146 $11,551,999 $4,247,120

Y ear 1934 1935 1936

185,056 1,974,181 2,194,712

603,519 698,440 902,215

273,638 510,479 1,955,104

1,329,865 6,842,116 6,454,624

79,365 459,055 459,700120,319 242,274 734,874

69,565 1,597,403 273,5592,661,327 12,323,948 12,974,788

1,951,992 8,700,485 11,039,098

104,963 2,111,886 93,695

90,000 223.000 788.000432,100 950,000 1,069,35082,272 338,577 -15,355

1937 1938 1939

2,238,648 1,610,297 3,329,557

1,293,683 451,570 1,052,424

2,307,696 2,215,638 4,855,519

11,107,699 6,574,061 21,839,422

486,995 412,911 1,845,901

837,966 2,125,022 7,221,558

1,010,689 530,408 3,781,38519,283,376 13,919,907 43,925,766

14,715,286 10,124,255 32,557,805

1,132,758 1,213,354 4,695,820

755,250 1,052,900 2,249,996

2,498,815 1,059,200 2,775,001181,267 470,198 1,647,144

1940 1941 1942

1,018,215 6,462,157 500,513452,574 3,493,431 119,650

1,519,677 1,810,346 52,3643,314,762 5,398,218 777,953

694,900 91,311 70,685

435,526 106,615 55,222

523,899 449,458 25,030

7,959,553 17,811,536 1,601,417

5,599,438 14,627,158 1,379,526

455,788 298,526 1,520

422,750 195,500 81,750

1,045,533 1,582,000 140,000

436,044 1,108,352 -1,379

1942 Case number

235 236 6,920 26,334 14,000 4,050 2,438 59,350 93,775 111,941

162,090 304,070 46,727

4,875 4,221 2,594

13.500 6,995 38.500

2,361 700 59233 90,536 129,113 88,047 82,666 1,35318 10,000 25,000 -8,864 11,750 9,679

237

238 239 240

32,595

163,637 148,224 122,803

1,094

9,650 3,985 37,432

307 148,531

394,890 579,875 258,472

139,977 25,000 -16,446

27,700 73,900 16,720 27,008 6,198

1,593 15,693 6,812

325,165 25,000 40,000 4,725 537,227 206,444 9554 15.000 30.000 20,000 20,000 7,553 1,974

1 Includes surplus, undivided profits, and reserve funds minus operating deficit, if any, as shown by books. Minus (-) indicates net operating deficit.

Note: All cases in 1942 were commercial banks not members of the Federal Reserve System. The FDIC is receiver for cases 236 and 237; the respective State banking authorities for the others. Case 235—Palisade State Bank, Palisade, Minn.; 236—Bank of Draper, Draper, N. C.; 237—Bank of Malone, Malone, Fla.; 238—Farmer’s and Merchant’s Bank, Cochrane, Wis.; 239—Farmers Bank, Lone Rock, Wis.; 240—The Citizens Bank of Liberty, Liberty, Mo.

Back figures—See the Annual Report for 1941, p. 182, and earlier reports

FEDERAL DEPOSIT INSURANCE CORPORATION

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Federal Reserve Bank of St. Louis
T a b le 121. DEPOSITORS AND DEPOSITS OF INSURED BANKS PLACED IN RECEIVERSHIP, 1934-1942

AS SHOWN BY BOOKS OF FDIC, DECEMBER 31, 1942

Number of depositors Amount of deposits

Eligible for insurance protection Insured4 Uninsured, unsecured, not preferred, and not 

Total subject to offset

Fully paid by other methods1

Not eligible for insurance protection2

Total3 Secured Subject

Paid by FDIC Unpaid Total Paid Unpaid and preferred5

to offset In excess of insurance maximum

Other8

T o ta l... 363,986 280,104 34,829 16,893 32,160 $102,469,016 $81,571,746 $81,220,492 $351,254 $4,426,823 $5,832,154 $9,504,914 $1,133,379

Year 1934 1935 1936

15,732 32,330 43,226

11,262 23,420 30,920

934 2,982 4,628

3,137 4,97629

399 952 7,649

1,966,373 9,091,025 11,240,970

945,255 6,049,768 8,055,884

941,008 6,024,117 8,055,538

4,247 25,651 346

830,212 472,571 658,287

92,702 558,740 624,243

30,607 2,000,323 1,048,034

67,597 9,623 854,522

1937 1938 1939

74,152 44,282 90,188

56,811 31,764 72,204

7,761 7,380 6,216

9628 4,699

9,484 5,110 7,069

14,961,467 10,296,026 32,720,665

12,049,635 9,084,610 26,258,471

12,044,161 9,079,116 26,165,8995,474 5,494 92,572

1,135,668 310,085 449,910

1,084,311 527,135 1,740,024

642,707 255,299 4,242,290

49,146 118,897 29,970

1940 1941 20,696 38,585 15,680 34,340 2,936 1,611 381

583 2,634 711

1,497 5,656,748 14,729,744 1,805,998

4,908,475 12,575,749 1,643,8994,893,328 12,494,558 1,522,767

15,147 81,191 121,132

181,901 364,091 24,098

341,149 792,049 71,801

221,640 997,814 66,200

3,58341 1942 4,795 3,703

1942 Case number

235 696 436 70 190 161,677 142,160 333,906 203,269

273,980 486,545 204,039

142,022 333,298 197,801

273,872 380,747 195,027

138 14,879 3,706 17,367 9,189

14,771 24,363 2,405

932 236 993 770 120 103 358,095 608 6,822 237 434 345 82 7 217,290

325,265

5,468

108

4,832

27,295 26,319

238 596 474 80 42 9,219 239 1,046 672 26 348 537,227 105,798 240 1,030 1,006 3 21 206,444 9,012

1 Includes all depositors whose claims have been fully paid by counterclaim, by sale of security, or directly by the receiver because of preferred status. 8 Includes depositors holding only uninsured deposits. See footnote 6.

3 Includes deposits discovered or reclassified subsequent to date of suspension, and for this reason the figures differ from those in Table 120. 4 Includes all deposits paid or to be paid by FDIC. 6 Includes only the portions of secured deposits met or to be met by sale of security and of preferred deposits paid by the receiver. • Includes (a) deposits barred from insurance because not claimed before the expiration of the period set by law, (b) restricted and deferred deposits not eligible for insurance, and (c) deposits made after termination of insured status in 1 bank which suspended after its insured status had been terminated.

N o t e : See Note to Table 120. __

Back figures—See the Annual Report for 1941, p. 183, and earlier reports.

SUSPENSIONS, RECEIVERSHIPS, AND MERGERS

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T a b l e 1 2 2 . ACCOUNTS AND DEPOSITS OF AND DISBURSEMENTS TO INSURED BANKS MERGED WITH THE FINANCIAL AlD

o f t h e F e d e r a l D e p o s it I n s u r a n c e C o r p o r a t io n , 1942

Case number Name and location Class of bank1

Number of accounts2

Total deposits2

Disbursements3

Date Amount

Absorbing bank

O

O

137

138

139

140

141

142

143

144

145

146

147

148

149

150

T o tal—1942..............................................................

Providence Bank Scranton, Pennsylvania........................................

The Louisa National Bank Louisa, Kentucky..................................................

The Haddonfield National Bank Haddonfield, New Jersey.....................................

The Citizens National Bank of Freeport Freeport, New Y ork..............................................

The First National Bank of Weatherly Weatherly, Pennsylvania......................................

Floral Park Bank and Trust Company Floral Park, New Y ork........................................

The Emaus National Bank Emmaus, Pennsylvania........................................

The First National Bank and Trust Company of Dallastown, Dallastown, Pennsylvania. .. .

The First National Bank of Lehighton Lehighton, Pennsylvania......................................

Citizens National Bank and Trust Company of Lehighton, Lehighton, Pennsylvania.............

The Harney County National Bank of Burns Burns, Oregon....................................................

Merchants Banking Trust Company Mahanoy City, Pennsylvania.........................

The Farmers National Bank of Selinsgrove Selinsgrove, Pennsylvania...............................

Guarantee Trust and Safe Deposit Company of Mount Carmel, Mount Carmel, Penn..........

C

A

A

A

A

B

A

A

A

A

A

B

A

C

54,885

2,882

1,331

6,888

9,632

1,876

7,576

5,281

3,548

3,635

3,815

2,105

1,835

2,368

2,113

$17,195,145

753,722

476,825

2,661,836

1,279,289

520,749

1,999,029

1,398,946

1,350,525

1,834,363

1,104,362

1,114,294

859,316

718,977

1,122,912

January 19 

February 2 

March 2

March 9 

March 16 

March 30 

April 27 

June 22 

August 3 

August 3 

August 31 

September 14 

October 19 

November 30

$9,162.

691

191

677

347

433

1,128

633

543

721

668

941

723

521

938

868

,557

,703

,939

,415

,545

,579

,536

,165

,191

,846

,856

,189

,645

,702

North Scranton Bank and Trust Company Scranton, Pennsylvania

The First National Bank of Louisa Louisa, Kentucky

Haddonfield National Bank Haddonfield, New Jersey

The First National Bank and Trust Company of Freeport, Freeport, New York

The Hazleton National Bank Hazleton, Pennsylvania

The First National Bank and Trust Company of Floral Park, Floral Park, New York

The Allentown National Bank Allentown, Pennsylvania

The First National Bank of York York, Pennsylvania

The Hazleton National Bank Hazleton, Pennsylvania

The United States National Bank of Portland Portland, Oregon

American Bank Mahanoy City, Pennsylvania

Snyder County Trust Company Selinsgrove, Pennsylvania

The First National Bank of Mount Carmel Mount Carmel, Pennsylvania

1 A—National bank member of the Federal Reserve System; B—State bank member of the Federal Reserve System; C—Commercial bank not member of the Federal Reserve System. 3 Number of accounts and total deposits are as of date of loan. * Principal of loans and purchase price of assets as shown by books of FDIC, December 31, 1942. Does not include preliminary and field liquidation expenses, or advances for the protection of assets, incident to the transaction.

Back figures—See the Annual Report for 1941, p. 180, and earlier reports.

FEDERAL DEPOSIT INSURANCE CORPORATION

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Federal Reserve Bank of St. Louis
INDEX

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Federal Reserve Bank of St. Louis
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INDEX

Page

Absorptions, consolidations, and mergers: Of insured banks, 1934-42. See Mergers of insured banks with financial aid of the Corporation; Terminations of insurance. Of operating banks, 1942....................................................................................... 68-69

Adjusted capital account. See Capital of banks.

Adjusted value of assets. See Appraised value of assets.

Admissions to insurance: Applications approved and disapproved............................................................ 14-15 By class of bank, 1942............................................................................................ 69

Applications from banks: For admission to insurance.................................................................................... 14-15 For approval of assumption of deposit liabilities of other banks................ 15 For approval of capital retirement or reduction.............................................. 15 For approval of establishment of branches....................................................... 15 For approval of repayment or release of restricted, subordinated, or waived deposits...................................................................................... 15

Appraised value of assets. See Assets of insured banks, analysis of examina­ tions of.

Assessments on insured banks for deposit insurance: Amount.............................................................................................................8, 22, 23, 27 Basis o f....................................................................................................................... 61 Effect of proposals for reduction.......................................................................... 8

Assets and liabilities of closed banks. See Receivership, insured banks placed in.

Assets and liabilities of operating banks (see also Assets of insured banks, analysis of examinations of; Capital of banks; Deposits; Loans of insured commercial banks; Securities): All banks, June 30 and December 31, 1942...................................................... 78, 79 Commercial banks, June 30 and December 31, 1942...................................... 78,79 Insured commercial banks: Call dates, December 31, 1941, to December 31, 1942............................ 80, 81 Changes during 1942......................................................................................... 31 Reports o f................................................................................................ 15-16, 62, 66 Mutual savings banks, June 30 and December 31, 1942............................... 78-79 Noninsured banks, June 30 and December 31, 1942...................................... 78-79 Sources of data.......................................................................................................... 62-63 Types o f...................................................................................................................... 3,31

Assets and liabilities of the Federal Deposit Insurance Corporation............... 23-27

Assets of banks purchased by the Federal Deposit Insurance Corporation: From banks in receivership to facilitate liquidation....................................... 12, 26 From banks merged with financial aid of the Corporation. See Mergers of insured banks with financial aid of the Corporation.

Assets of insured banks, analysis of examinations of (see also Fixed and substandard assets of insured commercial banks; Loans of insured commercial banks; Securities): Definitions of terms used: Appraised value.................................................................................................. 64 Book value........................................................................................................... 64 Criticized.............................................................................................................. 64-65 Examiners’ net deductions............................................................................... 64

103

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104 FEDERAL DEPOSIT INSURANCE CORPORATION

Page Assets of insured banks, analysis of examinations of (see also Fixed and substandard assets of insured commercial banks; Loans of insured commercial banks; Securities):— Continued. Definitions of terms used (continued): Fixed and substandard..................................................................................... 65 Substandard........................................................................................................ 64-65 Uncriticized......................................................................................................... 65 Insured commercial banks, 1942: Grouped by amount of deposits.................................................................... 82, 83 Grouped by Federal Deposit Insurance Corporation District............... 88, 89 Grouped by fixed and substandard assets ratio......................................... 86, 87 Grouped by net sound capital ratio.............................................................. 84, 85 Number included, by month of examination............................................. 63 Summary.............................................................................................................. 3, 32 Sources of data.......................................................................................................... 63

Assets of insured banks, quality of (see also Assets of insured banks, analysis of examinations o f)............................................................................... 3, 32

Assets pledged to secure bank obligations............................................................... 81

Bank management. See Management of banks, quality of.

Bank supervision (see also Examinations of banks): Effect of war on........................................................................................................ 5-6 Necessity for related to bank capital and management................................ 5 State legislation regarding during 1942.............................................................. 18-20 Supervisory activities of the Federal Deposit Insurance Corporation: Actions to terminate insured status of banks engaged in unsafe or unsound practices or violations of law or regulations................. 13-15 Actions on applications from banks. See Applications from banks. Reports required from banks.......................................................................... 15-16 Statement regarding criticism of bank investments during the war. . . 6, 55

Bankers’ directories, data obtained from............................................................59, 61, 62

Banking offices, establishment of: Banks beginning operations, 1942...............................................................................68 Branches, establishment approved by Corporation........................................ ........15 Branches opened, 1941....................................................................................................69

Banking offices, number of. See Number of operating banking offices.

Banking practices. See Bank supervision; Unsafe and unsound banking practices.

Banks beginning operations. See Banking offices, establishment of.

Banks ceasing operations, 1942................................................................................... 68

Banks closed because of financial difficulties (see also Mergers of insured banks with financial aid of the Corporation; Receiverships, insured banks placed in): Depositors protected by the Federal Deposit Insurance Corporation: Fully protected, in insured banks placed in receivership, or merged with the financial aid of the Corporation....................................... 9-10 Number o f........................................................................................................... 10 Number of, in insured banks merged with financial aid of the Corporation............................................................................................ 11,100 Number of, in insured banks placed in receivership................................ 11, 99 Insured banks placed in receivership or merged with financial aid of the Corporation: Deposits protected.......................................................................................... 9-11, 99 Disbursements by the Corporation in connection w ith.............10-11, 99, 100 Loss to depositors.............................................................................................. 10-11 Loss to Federal Deposit Insurance Corporation........................................ 12 Loss to stockholders.......................................................................................... 8

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INDEX 105

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Banks closed because of financial difficulties (see also Mergers of insured banks with financial aid of the Corporation; Receiverships, insured banks placed in):— Continued. Insured banks placed in receivership or merged with financial aid of the Corporation: (continued). Number and deposits of, 1934-42: By amount of deposits............................................................................... 96 By class of bank.......................................................................................... 96 By State......................................................................................................... 97 By year.......................................................................................................... 96 Suspensions: Number and deposits, 1934-42: By amount of deposits............................................................................... 96 By class of bank.......................................................................................... 96 By State......................................................................................................... 97 By year.......................................................................................................... 96 Number, 1942................................................................................................61, 68, 96 Of banks charged with unsafe and unsound banking practices............. 13-14

Banks operating branches. See Banking offices, establishment of; Number of offices of banks operating branches.

Board of Directors of the Federal Deposit Insurance Corporation................... 21

Board of Governors of the Federal Reserve System: Data obtained from............................................................................................59, 62, 66 Review of examination reports submitted b y ................................................... 13 Statement regarding examination policy............................................................ 6, 55

Book values of banks assets and liabilities. See Assets and liabilities of opera­ ting banks; Assets of insured banks, analysis of examinations of; Capital of banks.

Branches. See Banking offices, establishment of; Classification of banks and banking offices; Number of offices of banks operating branches.

Capital of banks (see also Assets and liabilities of operating banks; Capital ratios; Earnings, expenses, and dividends of insured banks): Adequacy o f.......................................................................................... 3-6, 31-32, 33-35 Analysis of examinations: Definition of terms used: Book value.................................................................................................... 65 Examiners’ net deductions........................................................................ 64 Net sound capital........................................................................................ 65 Private capital.............................................................................................. 65 R. F. C. capital........................................................................................... 65 Total capital accounts............................................................................... 65 Insured commercial banks, 1939-1942.......................................................... 34 Insured commercial banks, 1942: Grouped by amount of deposits.............................................................. 82, 83 Grouped by Federal Deposit Insurance Corporation District. . . . 88, 89 Grouped by fixed and substandard assets ratio.................................. 86, 87 Grouped by net sound capital ratio....................................................... 84, 85 Of insured banks placed in receivership............................................................. 98 Reductions and retirements approved by the Corporation.......................... 15 Total capital accounts: Commercial and mutual savings banks, insured and noninsured, June 30 and December 31, 1942....................................................... 78,79 Insured commercial banks: Examined in 1942........................................................................... 82, 84, 86, 88 Call dates, December 31, 1941, to December 31, 1942..................... 81 Definition...................................................................................................... 65 Discussion o f................................................................................................ 33-35 Unsafe and unsound practices.......................................................................5-6, 13-14

Capital ratios: Discussion of trends in ....................................................................................4-5, 33-35

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106 FEDERAL DEPOSIT INSURANCE CORPORATION

Page Capital ratios:— (Continued) Netfsound capital to assets: Insured commercial banks, 1942. See Capital of banks, analysis of examinations. Insured commercial banks grouped by, 1942: Analysis of examinations of capital and liabilities, amounts and ratios........................................................................................................ 84, 85 Appraised values of total assets, securities, loans, and fixed and miscellaneous assets—amounts and ratios...................................... 84, 85 Deposits o f.................................................................................................... 91 Number o f..................................................................................................... 90 Percentage distribution of number and deposits, 1939-1942........... 34 Net sound capital to deposits................................................................... 83, 85, 87, 89 Total capital accounts to loans, investments other than U. S. Government obligations, and miscellaneous assets............................................... 34

Cash depositories............................................................................................................ 59

Charge-offs on bank assets...........................................................................6, 39-40, 93, 95

Class of bank, banking data presented by: Admissions to and terminations of insurance........ ...................................... 68-69 Assets and liabilities................................................................................................ 78, 79 Banks which suspended operations..................................................................... 96 Deposits.......................................................................................................... 76-77, 78, 79 Earnings of insured banks..................................................................................... 92, 93 Insured banks placed in receivership or merged with financial aid of the Corporation............................................................................................ 96 Number of banking offices..................................................................................... 68-75 Number of banks..................................................................................................... 68, 76

Classification of banks and banking offices............................................................. 59, 61

Closed banks. See Banks ceasing operations; Banks closed because of financial difficulties; Receivership, insured banks placed in.

Commercial banks. See Assets and liabilities of operating banks; Assets of insured banks, analysis of examinations of; Capital of banks; Deposits; Earnings, expenses, and dividends of insured banks; Number of operating banks.

Commercial banking offices. See Number of operating banking offices.

Comptroller of the Currency: Data obtained from.....................................................................................59, 62, 63, 66 Director of Corporation......................................................................................... 21 Examination of insured banks b y ........................................................................ 13 Insured banks not members of the Federal Reserve System reporting to.. 62 Review of reports of examinations made b y ..................................................... 13 Statement regarding examination policy........................................................... 6, 55

Consolidations. See Absorptions, consolidations, and mergers.

Consumer loans. See Instalment loans.

Criticized assets. See Assets of insured banks, analysis of examinations of.

Demand deposits. See Assets and liabilities of operating banks; Deposits, classified by type of deposit.

Depositors (see also Insurance coverage): Claims against closed insured banks. See Receivership, insured banks placed in. Losses. See Banks closed because of financial difficulties; Receivership, insured banks placed in. Protected in insolvent or hazardous banks suspended or merged. See Banks closed because of financial difficulties.

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Federal Reserve Bank of St. Louis
INDEX 107

Page

Deposits: Adjusted..................................................................................................................... 65,82 Amount of, banks grouped by: Banks which received financial aid from the Corporation...................... 96 Banks which suspended operations............................................................... 96 Insured commercial banks examined in 1942.................................82, 83, 90, 91 Insured commercial banks operating throughout 1942............................ 94 Assumption of by other banks............................................................................. 15 Claims barred............................................................................................................ 10,11 Classified by type of deposit. Commercial banks, June 30 and December 31, 1942............................... 78, 79 Insured banks placed in receivership, 1934-42........................................... 99 Insured commercial banks, call dates December 1941 to December 1942 80 Definition: For assessment purposes.................................................................................. 61-62 For reports of assets and liabilities............................................................... 63 In reports of examinations..........................................................................61-62, 65 Demand. See Deposits, classified by type of deposit. Growth in, 1934-1941.............................................................................................. 31 Insured and otherwise protected: Amount of insured deposits in operating banks........................................ 25 In banks merged with financial aid of the Corporation.............10-11, 96, 100 In banks placed in receivership...................................................................... 11, 99 Maximum insurance per depositor................................................................ 11 Interbank. See Deposits, classified by type of deposit. Interest on. See Time and savings deposits. Of individuals, partnerships, and corporations. See Deposits, classified by type of deposit. Paid and unpaid in closed insured banks.......................................................... 11, 99 Payments of, to insured depositors. See Receivership, insured banks placed in. Postal savings deposits. See Deposits, classified by type of deposit. Preferred. See Deposits, secured and preferred. Protected by the Corporation. See Deposits, insured and otherwise protected. Public funds. See Deposits, classified by type of deposit. Savings. See Time and savings deposits. Secured and preferred: Insured banks placed in receivership, 1934-42........................................... 11, 99 Insured commercial banks, call dates, December 31,1941 to December 31,1942.................................................................................................... 81 Sources of data......................................................................................................... 61-62 Subject to offset. See Receivership, insured banks placed in. Time. See Time and savings deposits. Uninsured: Assumption of, by insured banks.................................................................. 15 Of insured banks placed in receivership..................................................10-11, 99 United States government. See Deposits, classified by type of deposit. Unsecured. See Receivership, insured banks placed in.

Deposits in: All banks: June 30, 1942...................................................................................................... 78 December 31, 1942............................................................................................ 76,79 All commercial banks: Call dates, December 31, 1941, to December 31, 1942............................ 80 December 31, 1942............................................................................................ 76,79 June 30, 1942...................................................................................................... 78 All insured banks: June 30, 1942...................................................................................................... 78 December 31, 1942............................................................................................ 76, 79 All mutual savings banks: December 31, 1942............................................................................................ 76, 79 June 30, 1942...................................................................................................... 78 Banks located in each State and possession, December 31, 1942............... 76-77 Banks for which the Corporation is receiver.................................................... 12 Banks which received financial aid from the Corporation.................9-11, 96-100

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108 FEDERAL DEPOSIT INSURANCE CORPORATION

Page

Deposits in:—Continued. Insured banks merged with financial aid of the Corporation...............11, 96, 100 Insured banks placed in receivership......................................................11, 12, 96-99 Insured commercial banks: At time of examination, 1942. See Deposits, adjusted. Call dates, December 31, 1941 to December 31, 1942............................. 80 December 31, 1942............................................................................................ 76,79 June 30, 1942...................................................................................................... 78,80 Insured mutual savings banks: December 31, 1942............................................................................................ 76,79 June 30, 1942...................................................................................................... 78 Noninsured banks: December 31, 1942............................................................................................ 76, 79 June 30, 1942...................................................................................................... 78 Suspended banks...................................................................................................... 96

Depreciation. See Earnings, expenses, and dividends of insured banks.

Dividends: To depositors in mutual savings banks......................................................... 41-42, 93 To stockholders of operating insured banks: Amount of. See Earnings, expenses, and dividends of insured banks. Rates o f................................................................................................................ 95 Relative to net earnings and net profits...................................................... 41

Earnings, expenses, and dividends of insured banks: Insured commercial banks, 1934-1942: Amounts............................................................................................................... 36 Discussion o f....................................................................................................... 35-41 Interest received and paid............................................................................... 37-38 Rates of income received and interest paid................................................ 38 Rates of net earnings and net profits........................................................... 37 Insured commercial banks, 1942: Amounts, by class of bank.............................................................................. 92-93 Discussion o f....................................................................................................... 35-41 Rate of net profits of banks grouped by rate of interest paid on time and savings deposits............................................................................. 39 Ratios to total assets, by size of bank......................................................... 94-95 Insured commercial banks examined in 1942, grouped by rate of net earnings.................................................................................................... 90, 91 Insured mutual savings banks: Amounts, 1942............................................................................................................... 92-93 Discussion o f....................................................................................................... 41-42 Sources of data.......................................................................................................... 66

Employees: Federal Deposit Insurance Corporation............................................................. 21 Insured commercial banks, December 31, 194 2 .................................................... 9 3 ,9 5 Insured mutual savings banks, December 31, 1942............................................ 93

Examinations of banks (see also Assets of insured banks, analysis of examina­ tions of; Capital of banks): Banks cited for unsafe and unsound practices................................................. 13-14 Banks examined by the Federal Deposit Insurance Corporation............... 13, 62 Date from reports of examination.......................................................3, 32-35, 82-91 Definition of terms................................................................................................... 64-65 Review of examinations made by Comptroller of Currency and Federal Reserve banks........................................................................................ 13 Tabulation of reports, 1942............................................................................................ 63 Uniform examination procedure........................................................................... 63

Examiners: Analysis of bank examinations made by. See Assets of insured banks, analysis of examinations of; Capital of banks. Employed by the Corporation. See Employees, Federal Deposit Insurance Corporation.

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INDEX 109

Page

Expenses of banks. See Earnings, expenses, and dividends of insured banks.

Expenses of the Federal Deposit Insurance Corporation. See Federal Deposit Insurance Corporation.

Failures of banks. See Banks closed because of financial difficulties.

Federal bank supervisory authorities. See Bank supervision; Board of Governors of the Federal Reserve System; Comptroller of the Currency; Federal Deposit Insurance Corporation; Federal Reserve banks.

Federal Deposit Insurance Corporation: Actions by: On applications from banks. See Applications from banks. To terminate insured status of banks.......................................................... 13-15 Assessments on insured banks................................................................8-9, 22, 23, 27 Assets and liabilities....................................................................................23, 24, 26-27 Audit........................................................................................................................... 25-27 Balance sheet........................................................................................................24, 26-27 Banks examined by, and submitting reports t o ............................................... 62 Bank supervision by. See Bank supervision. Board of Directors................................................................................................... 21 Borrowing power...................................................................................................... 26-27 Capital....................................................................................................................24-25, 27 Claims held against suspended and merged banks.......................................... 24,26 Depositors protected by. See Banks closed because of financial difficulties. Disbursements for protection of depositors...........................................10-12, 22-23 Districts...................................................................................................................... 66 Divisions..................................................................................................................... 21 Employees.................................................................................................................. 21 Examination of banks. See Examinations of banks. Expenses..................................................................................................................... 22-23 Income........................................................................................................................ 22-23 Insurance lim it.......................................................................................................... 11 Insured banks receiving financial aid from. See Banks closed because of financial difficulties. Insured deposits. See Deposits, insured and otherwise protected. Investments............................................................................................................... 24,26 Liquidation of assets of insured banks in financial difficulties................... 12 Loans to and purchase of assets from insured banks. See Mergers of insured banks with financial aid of the Corporation. Losses incurred: During 1942...............................................................................................9-10, 22, 23 During 1934-42................................................................................................... 12,22 Prevention of, by supervisory activity......................................................... 10-11 Reserve for.......................................................................................................... 24,26 Officers........................................................................................................................ 21 Operations.................................................................................................................. 9-27 Organization and staff............................................................................................ 21 Payments to insured depositors........................................................................... 11,99 Policies........................................................................................................................ 3-9 Powers..............................................................................................................10-11, 13-16 Protection of depositors. See Banks closed because of financial difficulties. Purchase of assets to facilitate completion of liquidation of banks in receivership............................................................................................. 12,26 Receiver for insured banks...............................................................................12-13, 98 Recoveries from banks in financial difficulties................................................. 12 Regulations................................................................................................................ 20, 54 Repayments to .......................................................................................................... 12 Reports from banks............................................................................................15-16, 62 Reserves for losses................................................................................................... 24,26 State legislation affecting operations, 1942............. .......................................... 18 Supervisory activities. See Bank supervision. Surplus................................................................................................................... 24-25, 27

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Page Federal Deposit Insurance Corporation Districts: Banks classified b y ................................................................................................... 88, 89 States and possessions served............................................................................... 66

Federal Reserve banks: Data obtained from................................................................................................. 63 Review of bank examinations made b y .............................................................. 13

Fixed and miscellaneous assets. See Assets and liabilities of operating banks; Assets of insured banks, analysis of examinations of; Re­ ceivership, insured banks placed in.

Fixed and substandard assets of insured commercial banks (see also Assets of insured banks, analysis of examinations of; Capital of banks): Banks classified by ratio to assets........................................................... 86, 87, 90, 91 Banks classified by ratio to net sound capital.................................................. 35 Banks with substandard assets............................................................................. 32, 33 Definition................................................................................................................... 65 Discussion o f............................................................................................................. 34-35

Head offices of branch systems. See Number of offices of banks operating branches.

Industrial banks, classification o f............................................................................... 59-60

Insolvent or hazardous banks. See Bank supervision; Banks closed because of financial difficulties.

Instalment loans, how reported.................................................................................. 62

Institutions excluded from figures of operating banks......................................... 60

Insurance coverage (See also Deposits, insured and otherwise protected). . . . 11

Insurance status, banks classified by: Assets and liabilities o f........................................................................................... ..78, 79 Deposits o f...................................................................................................................76-77 Number o f....................................................................................................................68-77 Suspensions o f........................................................................................................... .96-97

Insured banks. See: Absorptions, consolidations, and mergers; Admissions to insurance; Assets and liabilities of operating banks; Assets of insured banks, analysis of examinations of; Assets of insured banks, quality of; Banking offices, establishment of; Banks ceasing operations; Banks closed because of financial difficulties; Capital of banks; Classification of banks and banking offices; Class of bank, banking data presented by; Deposits; Deposits in; Earnings, expenses, and dividends of insured banks; Employees; Examinations of banks; Loans of insured commercial banks; Mergers of insured banks with financial aid of the Corporation; Mutual savings banks; Number of offices of banks operating branches; Number of operating banking offices; Number of operating banks; Number of unit banks; Receivership, insured banks placed in; Securities; States, banking data classified by; Terminations of insurance; Unsafe and unsound banking practices.

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Insured commercial banks not members of the Federal Reserve System. See Class of bank, banking data presented by.

Insured commercial banks submitting reports to the Federal Deposit In­ surance Corporation............................................................................. 62

Insured deposits. See Deposits, insured and otherwise protected.

Insured mutual savings banks. See Mutual savings banks.

Insured State banks members of the Federal Reserve System. See Class of bank, banking data presented by.

Interbank deposits. See Deposits, classified by type of deposit.

Interest: Amounts. See Earnings, expenses, and dividends of insured banks. Rate on loans............................................................................................................ 37 Rate on securities, 1934-42.................................................................................... 37-38 Rate on time and savings deposits...................................................................... 38-39

Investments of banks. See Assets and liabilities of operating banks; Securities; United States Government obligations; Unsafe and unsound banking practices.

Investments of the Federal Deposit Insurance Corporation.............................. 22-24

Law, violations of by insured banks....................................................................... 14

Legislation in 1942 related to deposit insurance and banking: Federal............................................................................................................ 16-17, 49-53 State............................................................................................................................ 18-20

Liquidation, banks placed in....................................................... 11, 12-13, 68, 96-97, 98

Loans of insured commercial banks (see also Unsafe and unsound banking practices): Amounts........................................................................................... 31, 37, 78, 79, 80-81 Analysis of examinations of insured commercial banks, 1942: Appraised and book values, examiners’ net deductions, substandard, and not criticized......................................................................82, 84, 86, 88 Ratios of appraised value to book value..................................32, 83, 85, 87, 89 Interest on. See Earnings, expenses, and dividends of insured banks. Rate of income on.................................................................................................... 37,38 War financing............................................................................................................5-6, 55

Loans to insolvent or hazardous insured banks by Federal Deposit Insurance Corporation. See Mergers of insured banks with financial aid of the Corporation.

Losses: Of banks: Amount of, past 80 years................................................................................ 4 ,6 Charged off. See Charge-offs on bank assets. National banks, rates of, 1918-1942............................................................. 6 Reserves for........................................................................................................ 6-7 Of depositors. See Banks closed because of financial difficulties; Re­ ceivership, insured banks placed in. Of the Federal Deposit Insurance Corporation. See Federal Deposit Insurance Corporation.

Management of banks, quality of: Banks cited for unsafe and unsound banking practices................................. 13-14 Wartime requirements............................................................................................4, 5, 9

Mergers. See Absorptions, consolidations, and mergers; Mergers of insured banks with financial aid of the Corporation.

INDEX 111

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Mergers of insured banks with financial aid of the Corporation (see also Banks closed because of financial difficulties): Banks cited for unsafe and unsound practices................................................. 13-14 Classification of banks merged............................................................................. 60-61 Collections by Corporation on assets purchased or held as collateral. . . . 12 Deposits protected................................................................................................... 11 Disbursements by Corporation............................................................................ 11,100 Loans and assets purchased by the Corporation....................................... 11, 24, 26 Losses incurred by Corporation...................................................................... 12, 24, 26 M ethod....................................................................................................................... 10-11 Names and location of banks merged, 1942...................................................... 100 Number of banks merged...................................................................................... 96-97 Procedure................................................................................................................... 10-11 Protection afforded depositors.............................................................................. 11 Repayments to Corporation.................................................................................. 12

Morris Plan banks, classification o f........................................................................... 59-60

Mutual savings banks: Insured: Assets and liabilities, June 30 and December 31, 1940.......................... 78-79 Capital investment of the Reconstruction Finance Corporation in.... 41 Classification....................................................................................................... 60 Deposits: By State, December 31, 1942.................................................................. 76-77 June 30 and December 31, 1942.............................................................. 78-79 Discussion o f....................................................................................................... 41-42 Earnings, expenses, and dividends........................................................... 41, 92-93 Number: By State, December 31, 1942.................................................................. 76-77 By type of office, December 31, 1942.................................................... 70-75 Changes during 1942.................................................................................. 68-70 Insured and noninsured: Assets and liabilities, June 30 and December 31, 1942........................... 78, 79 Classification....................................................................................................... 60 Deposits, by State, December 31, 1942....................................................... 76-77 Number: By State, December 31, 1942.................................................................. 76-77 By type of office, December 31, 1942.................................................... 70-75 Changes during 1942.................................................................................. 68-69

National Association of Supervisors of State banks.............................................. 6, 55

National banks. See Class of bank, banking data presented by; Comptroller of the Currency; Losses of banks.

Net earnings of insured commercial banks. See Earnings, expenses, and dividends of insured banks.

Net profits of insured commercial banks. See Earnings, expenses, and divi­ dends of insured banks.

Net sound capital of insured commercial banks. See Capital of banks; Capital ratios.

New banks. See Banking offices, establishment of.

Noninsured banks. See: Absorptions, consolidations, and mergers; Admissions to insurance; Assets and liabilities of operating banks; Banks closed because of financial difficulties; Capital of banks; Class of bank, banking data presented by; Classification of banks and banking offices; Deposits; Number of offices of banks operating branches;

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Noninsured banks. See:—(Continued) Number of operating banking offices; Number of operating banks; Number of unit banks.

Number of offices of banks operating branches: Branches: Changes during 1942......................................................................................... 69 December 31, 1942, by class of bank and States and possessions........ 70-75 Definition............................................................................................................. 59-60 Head offices (banks operating branches): December 31, 1942, by class of bank and States and possessions............... 70-75

Number of operating banking offices: All offices...............................................................................................................68, 70-75 Changes during 1942............................................................................................... 68 Classification............................................................................................................. 59-61 December 31, 1942, by class of bank and States and possessions............... 70-75

Number of operating banks: All banks: Admissions to insurance................................................................................... 14, 68 Approved for admission to insurance........................................................... 14-15 Changes during 1942......................................................................................... 68-69 Classification....................................................................................................... 59-61 December 31, 1942, by class of bank and States and possessions......... 76-77 June 30 and December 31, 1942.................................................................... 78-79 Terminations of insurance.......................................................................... 15, 68-69 Commercial banks: Admissions to insurance................................................................................... 68-69 Changes during 1942........................................................................................ 68-69 Classification....................................................................................................... 59-61 December 31, 1942, by class of banks and States and possessions. . . . 76-77 June 30 and December 31, 1942.................................................................... 78, 79 Insured commercial banks: Applications approved and disapproved..................................................... 15 Call dates, December 31, 1941, to December 31, 1942............................ 80 Changes during 1942......................................................................................... 68-69 Classification....................................................................................................... 59-61 December 31, 1942, by States and possessions.......................................... 76-77 Operating throughout 1942: By amount of deposits............................................................................... 94 By rate of interest paid on time and savings deposits...................... 39 Reports of examinations in 1942 tabulated: By amount of deposits...................................................................82, 83, 90, 91 By Federal Deposit Insurance Corporation District......................... 88, 89 By month of examination......................................................................... 63 By rate of net earnings.............................................................................. 90, 91 By ratio of fixed and substandard assets to net sound capital. . . . 35 By ratio of fixed and substandard assets to total assets.. 86, 87, 90, 91 By ratio of net sound capital to total assets............................84, 85, 90, 91 By ratio of substandard assets to total assets..................................... 33 Mutual savings banks. See Mutual savings banks. Noninsured banks: Changes during 1942......................................................................................... 68-69 Classification....................................................................................................... 59-61 December 31, 1942, by class of bank and States and possessions........ 76-77 June 30 and December 31,1942.................................................................... 78,79 Unit banks: December 31, 1942, by class of bank and States and possessions........ 70-75 Definition............................................................................................................ 60

Officers, active, of insured banks. See Employees.

Officers and employees of the Federal Deposit Insurance Corporation........... 21

Operating banks. See Number of operating banks.

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Polk’s Bankers Encyclopedia, data obtained from................................................ 59

Possessions, bank and branches located in: Deposits o f................................................................................................................. 76-77 Number o f...................................................................................................... 70-75, 76-77

Postal savings deposits. See Deposits, classified by type of deposit.

Preferred deposits. See Deposits, secured and preferred.

Profits. See Earnings, expenses, and dividends of insured banks.

Protection of depositors. See Banks closed because of financial difficulties; Deposits, insured and otherwise protected.

Public funds. See Deposits, classified by type of deposit.

Purchase of bank assets by Corporation. See Assets of banks purchased by the Federal Deposit Insurance Corporation.

Rand McNally Bankers Directory, data obtained from............................... 59

Real estate: Amount of loans on. See Assets and liabilities of operating banks. Unsafe and unsound practices.............................................................................. 15

Receivership, insured banks placed in (see also Banks closed because of financial difficulties): Activities of Corporation as receiver o f.........................................................12-13, 98 Assets and liabilities of, at dates of suspension, 1934-42.............................. 98 Depositors: Extent of protection by insurance............................................................10-11, 99 Method of protection....................................................................................... 11 Number eligible for protection, paid and unpaid...................................... 99 Payments to ........................................................................................................ 11, 99 Deposits: Insured, paid and unpaid by December 31, 1942..................................... 11, 99 Not eligible for insurance protection....................................................... 10-11, 99 Paid and unpaid, December 31, 1942........................................................... 11, 99 Secured, preferred, and subject to offset..................................................... 11, 99 Unclaimed accounts..................................................................................... 10-11, 99 Uninsured........................................................................................................10-11, 99 Liquidation o f........................................................................................................... 12 List of banks, 1942.................................................................................................. 98 Losses by Corporation on depositors’ claims paid........................................... 12 Names and location of, during 1942................................................................... 98 Number of banks...................................................................................................... 96 Payments to depositors.......................................................................................... 11,99 Purchase of assets from.......................................................................................... 12 Receivers.................................................................................................................... 12,98 Repayments to Corporation on subrogated claims against.......................... 12 Sources of data..............................................................................................59, 60-61, 62

Reconstruction Finance Corporation, capital of insured banks held by: Amount. See Capital of banks. Retirements............................................................................................................. 15

Recoveries: By banks on assets charged off. See Charge-offs on bank assets. By Federal Deposit Insurance Corporation on disbursements in closed banks........................................................................................................ 12

Regulations. See Federal Deposit Insurance Corporation.

Repayments to the Corporation.. ........................................................................10-11, 12

Reports from banks........................................................................................................ 15-16

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Reserves: For losses on bank assets....................................................................................... 6-7 In bank assets. See Assets and liabilities of operating banks. Of Federal Deposit Insurance Corporation....................................................... 24, 26

Risk in banking............................................................................................................... 7

Savings and time deposits. See Time and savings deposits.

Secured and preferred deposits. See Deposits, secured and preferred; Re­ ceivership, insured banks placed in.

Securities (see also Assets and liabilities of operating banks; United States Government obligations): Examiners’ appraisal of, method used................................................................ 64-65 Held by Federal Deposit Insurance Corporation.......................................23, 24, 26 Held by insured banks placed in receivership, 1934-1942.............................. 98 Held by insured commercial banks: Amounts, call dates, December 31, 1941, to December 31, 1942........... 80-81 Analysis of examinations: Appraised and book values, examiners’ net deductions, sub­ standard, and not criticized...................................................82, 84, 86, 88 Ratios of appraised to book values............................................83, 85, 87, 89 Interest on. See Earnings, expenses, and dividends of insured banks. Rate of income on............................................................................................. 37-38 War financing.................................................................................................... 5-6, 38, 55

Size of banks, banks classified by. See Deposits, amount of, banks grouped by.

State banks members of the Federal Reserve System. See Class of bank, banking data presented by.

State banks not members of the Federal Reserve System. See Class of bank, banking data presented by.

State bank supervisory authorities: Data obtained from........................................................................................... 59, 61, 62 State legislation regarding functions o f.............................................................. 18-19 Statement regarding examination policy........................................................... 6,55

State legislation regarding deposit insurance and bank supervision................. 18

States, banking data classified by: Deposits, December 31, 1942: Commercial banks, insured and noninsured............................................... 76-77 Mutual savings banks, insured and noninsured........................................ 76-77 Number of operating banks or offices, December 31, 1942: All banking offices, by class of bank and type of office........................... 70-75 All banks.............................................................................................................. 76-77 Commercial banks, insured and noninsured............................................... 76-77 Mutual savings banks, insured and noninsured........................................ 76-77 Suspensions, receiverships, and mergers............................................................ 97

Stockholders of banks: Losses of. See Banks closed because of financial difficulties. Net profits of insured commercial banks, available for. See Earnings, expenses, and dividends of insured banks.

Substandard assets. See: Assets of insured banks, analysis of examinations of; Fixed and substandard assets of insured commercial banks; Loans of insured commercial banks; Securities.

Supervision. See Bank supervision.

Suspensions. See Banks closed because of financial difficulties; Receivership, insured banks placed in.

Subrogated claims of depositors..................................................................... 12, 22, 24, 26

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Taxes paid by insured banks: Amount. See Earnings, expenses, and dividends of insured banks. Discussion o f.......................................................................................................... 3, 35, 37 Exemption of reserves for losses.......................................................................... 6-7 Income taxes, treatment of in reporting and tabulating earnings.............. 36, 37

Terminations of insurance: For unsafe and unsound banking practices and violations of law or regulations.............................................................................................. 13-14 Number, 1942...................................................................................................... 15, 68-69

Time and savings deposits: Amount, insured commercial banks, call dates, December 31, 1941, to December 31, 1942............................................................................... 80 Interest paid on: Amounts. See Earnings, expenses, and dividends of insured banks. Rates o f ............................................................................................................... 38-39 Rates of, b anks grotiped b y ............................................................................ 39

Trust companies: Classification o f........................................................................................................ 59 Number not engaged in deposit banking............................................... 76-77, 78, 79

Trust departments, assets of....................................................................................... 62

Unit banks. See Deposits in; Number of unit banks.

United States Government obligations (see also Assets and liabilities of operating banks; Securities): Held by Federal Deposit Insurance Corporation............................................ 24,26 Held by insured commercial banks, December 31, 1941, to December 31, 1942.......................................................................................................... 80-81 Purchase of, by insured commercial banks, 1942............................................ 31-32

Unsafe and unsound banking practices: Actions of Corporation........................................................................................... ........13 Number of banks cited...................................................................................................13 Types of, for which banks were cited.........................................................................14

Unsecured deposits. See Receivership, insured banks placed in.

Violations of law or regulations.................................................................................. 13-14

War:Bank supervision and the war..............................................................................5-6,55 Effects of war time changes on the banks.........................................................4-5,33 Growth in bank assets and deposits.................................................................... 3, 31

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