ANNUAL REPORT OF THE

FEDERAL DEPOSIT INSURANCE CORPORATION

1969

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

FEDERAL DEPOSIT INSURANCE CORPORATION 

Washington, D. C., March 9, 1970

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

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

its report for the calendar year 1969.

Respectfully yours,

Chairman

THE PRESIDENT OF THE SENATE

THE SPEAKER OF THE HOUSE OF REPRESENTATIVES

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F E D E R A L D E P O S IT INSURANCE C O R PO R A TIO N

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Federal Reserve Bank of St. Louis
FEDERAL DEPOSIT INSURANCE CORPORATION

BOARD OF DIRECTORS

C h airm an--------------------------------------------- ----------------- K. A. Randall

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

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

OFFICIALS

Assistant to the Chairman — ------------------- ------ John L. Flannery

Special Assistant to the C h airm an----------------------------------- Lynn Mah

Special Assistant to the Chairman

for Mutual Savings B an ks----------------------- — — Raymond T. Cahill

Assistant to the D irecto r-------------------- ---------— -— Alan R. Miller

Special Assistant to the Director —--------------------------- John F. Burby

Assistant to the Director

(C o m p tro ller of the C u rre n c y )-------------------------------Albert J. Faulstich

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

Associate Director, Division of Bank Supervision------Edward J. Roddy

General C ounsel----------------------------------------------------Leslie H. Fisher

C o ntroller----------------------------------------------------Edward F. Phelps, Jr.

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

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

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

Auditor (A c tin g )-------------------------------------------------John D. Roderick

Senior Advisor to the B o ard--------------------------- Raymond E. Hengren

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

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

Special Assistant to the B o ard............................. Edward H. DeHority

March 9, 1970

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

REGIONAL DIRECTORS

Atlanta

Lewis C. Beasley

Two Peachtree St., N.W.Suite 3030 

Atlanta, Georgia 30303 

Boston

Mark J. Laverick 

Two Center Plaza, Room 810 

Boston, Massachusetts 02108 

Chicago

John J. Early

164 West Jackson Blvd., Rm. 1500 

Chicago, Illinois 60604 

Columbus

William D. Allen 

37 West Broad Street, Suite 600 

Columbus, Ohio 43215 

Dallas

Quinton Thompson 

300 North Ervay Street,Suite 3300 

Dallas, Texas 75201 

Kansas City 

Stanley Pugh

925 Grand Avenue, Room 1708 

Kansas City, Missouri 64106 

Madison

Wallace A. Ryen

110 E. Main Street, Room 715

Madison, Wisconsin 53703

Memphis

James W. Thompson

165 Madison Avenue, Suite 1010 

Memphis, Tennessee 38103 

Minneapolis 

Roger B. West

109 South 7th Street, Suite 710 

Minneapolis, Minnesota 55402 

New York

Claude C. Phillippe 

345 Park Avenue 

New York, New York 10022 

Philadelphia

Charles E. Doster 

630 Chestnut Street, Suite 972 

Philadelphia, Pennsylvania 19106 

Richmond

Albert E. Clark 

908 E. Main Street, Suite 435 

Richmond, Virginia 23219 

St. Louis

John Stathos

720 Olive Street, Suite 2909 

St. Louis, Missouri 63101 

San Francisco 

Walter W. Smith

44 Montgomery Street, Suite 3600 

San Francisco, California 94104

FEDERAL DEPOSIT INSURANCE CORPORATION 

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

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Federal Reserve Bank of St. Louis
CONTENTS

Page

PART ONE 

BANKING DEVELOPMENTS

Bank performance in 1969________________________________ 3

Federal legislation________________________________________ 6

PART TWO 

OPERATIONS OF THE CORPORATION

Disbursements to protect depositors________________________ 11

Supervisory activities______________________________________ 13

Administration of the Corporation___________________________ 21

Finances of the Corporation_______________________________ 21

Rules and regulations of the Corporation____________________ 27

PART THREE 

LEGISLATION AND REGULATIONS

Federal banking legislation— 1969_________________________ 139

Rules and regulations of the Corporation— 1969_____________ 170

State banking legislation— 1969___________________________ 218

PART FOUR

STATISTICS OF BANKS AND DEPOSIT INSURANCE

Number of banks and branches____________________________ 236

Assets and liabilities of banks---------------------------------------------252

Income of insured banks___________________________________ 274

Banks closed because of financial difficulties;

deposit insurance disbursements________________________ 288

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Federal Reserve Bank of St. Louis
LIST OF TABLES

Page

DISBURSEMENTS TO PROTECT DEPOSITORS:

1. Insured banks closed during 1969 requiring disbursements by the

Federal Deposit Insurance Corporation____________________________ 11

2. Protection of depositors of insured banks requiring disbursements by

the Federal Deposit Insurance Corporation, 1934-1969 _____________ 12

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

transactions, January 1, 1934-December 31, 1969 _______________ 13

SUPERVISORY ACTIVITIES:

4. Bank examination activities of the Federal Deposit Insurance Corporation in 1968 and 1969 ______________________________________ 14

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

unsound banking practices or violations of law or regulations, 

1936-1969 _________________________ _____________________________ 15

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

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

Insurance Act during 1969 ______________________________________ 16

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

during 1969— banks grouped by size and in States according to 

status of branch b a nking_______________________________________ 17

15. Description of each merger, consolidation, acquisition of assets or

assumption of liabilities approved by the Corporation during 1969___ 36

ADMINISTRATION OF THE CORPORATION:

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

Corporation, December 31, 1968 and 1969 ______________________ 21

FINANCES OF THE CORPORATION:

9. Statement of financial condition, Federal Deposit Insurance Corporation, December 31, 1969 _______________________________________ 22

10. Statement pf income and the deposit insurance fund, Federal Deposit

Insurance Corporation, year ended December 31, 1969 __________ 23

11. Determination and distribution of net assessment income, Federal

Deposit Insurance Corporation, year ended December 31, 1969____ 24

12. Sources and application of funds, Federal Deposit Insurance Corporation, year ended December 31, 1969 ____________________________ 24

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

year, from beginning of operations, September 11, 1933, to 

December 31, 1969, adjusted to December 31, 1969 ______________ 25

14. Insured deposits and the deposit insurance fund, 1934-1969 ________ 26

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NUMBER OF BANKS AND BRANCHES: Page 

Explanatory n o te _________________________________________________________ 236

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

United States (States and other areas) during 1969 _______________ 238

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

States (States and other areas) during 1969, by S ta te ____________240

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

areas), December 31, 1969

Grouped according to insurance status and class of bank, and

by State or area and type of o ffic e ______________________________ 242

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

(States and other areas), December 31, 1969

Banks grouped by class and deposit size_______________________251

ASSETS AND LIABILITIES OF BANKS:

Explanatory n o te _________________________________________________________ 252

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

(States and other areas), June 30, 1969

Banks grouped by insurance status and class of b a n k __________ 254

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

(States and other areas), December 31, 1969

Banks grouped by insurance status and class of b ank __________ 258

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

(States and other areas), December 31, 1969

Banks grouped by insurance sta tu s ____________________________ 262

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

(States and other areas), December call dates, 1961, 1965-1969 264

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

States (States and other areas), December call dates, 1961, 1965- 

1969 ____________________________________________________________ 267

110. Percentages of assets and liabilities of insured commercial banks

operating throughout 1969 in the United States (States and other 

areas), December 31, 1969

Banks grouped by amount of deposits_________________________ 269

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

operating throughout 1969 in the United States (States and other 

areas), December 31, 1969

Banks grouped by amount of deposits__________________________ 270

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

and other areas), December 31, 1969

Banks grouped according to amount of deposits and by ratios of

selected items to assets or deposits______________________________ 271

INCOME OF INSURED BANKS:

Explanatory n o te _________________________________________________________ 274

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

other areas), 1961-1969 _________________________________________ 276

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

(States and other areas), 1961-1969 _____________________________ 278

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

other areas), 1969

Banks grouped by class of b a n k _______________________________ 279

116. Income of insured commercial banks operating throughout 1969 in the

United States (States and other areas)

Banks grouped by amount of deposits_________________________ 281

117. Ratios of income of insured commercial banks operating throughout

1969 in the United States (States and other areas)

Banks grouped according to amount of deposits_______________283

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

and other areas), 1961-1969 _____________________________________ 285

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

(States and other areas), 1961-1969 ____________________________ 287

BANKS CLOSED BECAUSE OF FINANCIAL DIFFICULTIES;

DEPOSIT INSURANCE DISBURSEMENTS:

Explanatory note _________________________________________________________ 288

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

1934-1969 _______________________________________________________290

121. Insured banks requiring disbursements by the Federal Deposit Insurance Corporation during 1969 ___________________________________ 291

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

disbursements by the Federal Deposit Insurance Corporation, 1934- 

1969

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

assumption, amount of deposits, and S tate_______________________293

123. Recoveries and losses by the Federal Deposit Insurance Corporation

on principal disbursements for protection of depositors, 1934- 

1969 ____________________________________________________________ 296

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Federal Reserve Bank of St. Louis
BANKING DEVELOPMENTS

PART ONE

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Federal Reserve Bank of St. Louis
3

Banks operated in an environment in 1969 that was dominated 

by upward pressure on prices, wages, and interest rates. While the 

economy continued to operate at virtually full employment, practically 

no growth in real output occurred. Most of the dollar increase in 

gross national product was accounted for by a more than 5 percent 

rise in prices.

Strong credit demands from the private sector and very restrictive 

monetary policy combined to produce extremely tight conditions in 

financial markets. As a result, interest rates, which were relatively 

high at the beginning of 1969, rose throughout the year and reached 

the highest levels of the century. Average yields on corporate and 

municipal securities increased by more than 2 percentage points in 

1969. The commercial bank prime rate was raised three times during 

the first half of 1969, reaching 8V2 percent in June, where it remained 

throughout the year.

BANK PERFORMANCE IN 1969

Balance sheet changes. Money market rates moved up sharply 

throughout the year while interest ceilings on time and savings 

deposits remained unchanged. As a result, the relative attractiveness 

of bank time deposits diminished significantly and some banks experienced substantial outflows of these deposits. The amount of large 

denomination negotiable certificates of deposit at weekly reporting 

banks declined by approximately $12 billion in 1969 as the spread 

between the prevailing 6*4 percent ceiling on large denomination 

CD's and comparable money market instruments approached 2 percentage points by the latter part of 1969.

Gains in consumer CD’s were modest compared with the increases experienced in recent years; as a result, total time deposits of 

insured commercial banks declined by almost $10 billion.

Total demand deposits increased by about $11 billion, enabling 

insured commercial banks to post a slight deposit increase for the 

year. Total assets increased by about 5 percent in 1969, to a yearend level of $531 billion (the amount of the increase is overstated 

somewhat by changes in reporting requirements; see notes to tables 

in Part 4). A considerable portion of the increase in bank resources 

was financed by borrowing through Federal funds, Eurodollars, and 

other sources. This was most pronounced among larger banks seeking 

to replace funds lost through the attrition of large denomination CD’s.

Loans at insured commercial banks increased by about $25 billion 

(more than 9 percent). This loan increase occurred although changes

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4 FEDERAL DEPOSIT INSURANCE CORPORATION

in the deposit mix plus increased reserve requirements on demand 

deposits had the effect of reducing considerably the volume of funds 

available for acquiring earning assets. In addition to increased borrowing, banks financed a substantial portion of their loan acquisitions in 

1969 through reducing investments by almost $10 billion.

Most major loan categories contributed to the 1969 loan increase. 

Testimony to the proliferation of bank credit cards and the growth in 

their use was a $1.6 billion (76 percent) increase in credit card and 

check credit loans outstanding in 1969.

Bank earnings. Total operating income of insured commercial 

banks increased by 21 percent in 1969, reflecting a moderate growth 

in earning assets and a significant rise in the average rate of return 

on assets. The ratio of operating income to average assets of banks 

rose to 5.97 percent, an increase of approximately 59 basis points 

over the comparable ratio for 1968. Loan income grew by about 26 

percent as the average rate of return on loans increased to 7.60 

percent.

The 1969 income report for insured commercial banks was substantially revised; as a result, figures on expenses and net income 

are not precisely comparable to those of previous years. In prior 

years, provision for loan losses was not treated as an operating expense. If data were adjusted to account for this, the year-to-year increase in operating expenses would amount to about 20 percent, a 

figure approximately in line with the one for operating income.

Despite the reduction in outstanding time deposits, the interest 

cost on time and savings deposits rose by 12.7 percent. The interest 

cost of borrowed funds grew by more than $1 billion, or more than 

200 percent, bringing the increase in interest cost for both categories 

to over 24 percent.

Net current operating earnings of insured commercial banks were 

$4,565 million in 1969. This figure reflects taxes on operating earnings, calculated before “ below the line” charges against earnings from 

such items as security losses, extraordinary income or expenses, and 

excess of transfers to bad-debt reserves in excess of the item carried 

under operating expenses. No comparable figures for previous years 

exist for after-tax current operating earnings, but if 1968 figures were 

adjusted accordingly, the year-to-year gain would be approximately in 

line with the percentage increase in total operating income.

Banks experienced net security losses of $512 million (before tax 

credits) in 1969, slightly in excess of losses realized in 1968 but 

modest compared with the unrealized decline in bank investment 

values resulting from the substantial increase in interest rates in 1969.

Net income of insured commercial banks was $4,334 million in 

1969, approximately 0.84 percent of average outstanding assets and 

11.34 percent of average capital accounts. While the figure for net

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BANK PERFORMANCE IN 1969 5

income is not fully comparable to the statistics reported for previous 

years, it is relatively close, and the ratios for 1969 compare favorably 

with figures for the previous decade. Dividend payments, about 40 

percent of net income, were up 18 percent from 1968.

In summary, the combination of high and rising interest rates, 

along with restrictions on the ability of banks to compete for deposits, 

placed banks in a very tight liquidity position in 1969 and reduced 

considerably the market value of bank security portfolios. The same 

forces enabled banks to increase substantially their rate of return 

on assets and capital accounts.

Mutual savings banks. The same economic and policy variables 

affected mutual savings banks in 1969; therefore, their deposits increased by only $2.6 billion, 4 percent. This was well below deposit 

gains experienced during each of the two previous years, and it was 

the first time in recent history that the net deposit increase at savings 

banks was less than total interest payments on deposits.

Current operating income of FDIC-insured savings banks increased 

by more than 10 percent, reflecting the investment of new funds and 

internally generated cash in substantially higher-yielding assets. As 

a consequence, the gross yield of FDIC-insured savings banks on average outstanding assets increased by about 24 basis points, from 

5.42 percent in 1968 to 5.66 percent in 1969. The increase in interest payments on deposits was more modest, as the rate paid on average outstanding time and savings deposits increased from about 4.83 

percent to 4.90 percent. Thus, net current operating income after 

taxes and dividends increased by more than 40 percent, and net rate 

of return on average outstanding assets increased from about 0.32 

percent, in 1968, to approximately 0.42 percent, in 1969.

FDIC-insured mutual savings banks realized significantly higher 

losses on sales of securities and mortgages in 1969. As a result of 

these below-the-line transactions, the net addition to surplus from 

operations was somewhat less in 1969 than it was in 1968. The total 

surplus accounts of all savings banks increased by about 4.8 percent 

in 1969, slightly more than the rise in total assets.

Number of banks and branches. On December 31, 1969, a total of 

14,178 banks— including 13,681 commercial and 497 mutual savings— were operating in the United States. There were 17 fewer commercial banks and 4 fewer mutual savings banks than at the end of

1968. The overall figure for branches of all banks rose during the year, 

by 1,273, of which 1,196 were branches of commercial banks. The 

total number of banking offices— 35,582 on December 31, 1969— 

was 1,252 more than at year-end 1968.

The number of insured commercial banks declined by 15 during the 

year, as decreases of 47 national banks and 60 State member banks

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6 FEDERAL DEPOSIT INSURANCE CORPORATION

more than offset an addition of 92 insured nonmember banks. During 

the year, 18 noninsured banks converted to insured status, with 16 

becoming nonmember insured banks and two becoming State member 

banks. Changes in number of banks and branches during 1969 are 

shown in Table 101 of this report.

FEDERAL LEGISLATION

Regulation of interest rates. Little legislation of interest to the 

banking industry was enacted during the first session of the 91st 

Congress until the closing days of 1969, when several important 

measures were approved. Notably, the Act of December 23, 1969 (83 

Stat. 371), extends for an additional 15-month period— through March 

21, 1971— the statutory flexible authority of the Board of Governors 

of the Federal Reserve System, the Board of Directors of the Federal 

Deposit Insurance Corporation, and the Federal Home Loan Bank 

Board for regulating interest and dividend rates payable by insured 

banks on time and savings deposits and by members of the Federal 

Home Loan Bank System on deposits, shares, or withdrawable accounts.

The act temporarily authorizes the Corporation’s Board of Directors 

and the Federal Home Loan Bank Board to subject certain noninsured 

banks (including noninsured mutual savings banks) and certain nonmember building and loan, savings and loan, and homestead associations (including cooperative banks) to interest- and dividend-rate 

controls essentially comparable to those applicable to insured 

banks and to members of the Federal Home Loan Bank System. 

The authority expires at the close of March 21, 1971, unless it 

is extended by a subsequent act of Congress. The authority can only 

be exercised with respect to noninsured institutions located in a 

State where the total amount of deposits and shares in those institutions exceeds 20 percent of the total amount of deposits and shares 

in all designated financial institutions in the State and where the 

State supervisory authority is not authorized by State laws to regulate 

the rates of interest or dividends payable by noninsured institutions 

or, if it is so authorized, has not issued regulations in the exercise of 

that authority. The effect of these conditions is to limit the applicability of the law to Massachusetts. Before July 31, 1970, the authority 

can only be exercised by the Corporation’s Board of Directors and 

by the Federal Home Loan Bank Board to limit the rates of interest 

or dividends payable by noninsured institutions to maximum rates 

not lower than 5V2 percent per annum.

In addition to prohibiting the payment of dividends as well as interest on demand deposits, the act extends the Corporation’s authority 

to regulate interest and dividend rates payable by insured nonmember

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FEDERAL LEGISLATION 7

banks, at the discretion of the Corporation’s Board of Directors, to 

obligations other than deposits that are undertaken by insured nonmember banks or their affiliates to obtain funds to be used in the 

banking business. Similarly, the act clarifies the authority of the Board 

of Governors of the Federal Reserve System to determine what types 

of obligations, whether issued directly by a member bank or indirectly 

by an affiliate of a member bank, or by other means, shall be deemed 

a deposit for the purposes of statutes and regulations that relate to 

the payment of interest or dividends on time and savings deposits by 

member banks of the Federal Reserve System.

Increase in deposit insurance coverage. In addition to extending the 

statutory flexible authority for regulating interest and dividend rates, 

the Act of December 23, 1969 (83 Stat. 371), increased from $15,000 

to $20,000 the maximum amount of insurance coverage provided by 

the Federal Deposit Insurance Corporation and by the Federal Savings and Loan Insurance Corporation. The increase in insurance coverage is not applicable to any claim arising out of the closing of an 

insured bank or institution before December 23, 1969.

State taxation of national banks. Legislation to clarify the liability 

of national banks for certain taxes was approved by the President on 

December 24, 1969. The Act of December 24, 1969 (83 Stat. 434), 

gradually equalizes the tax treatment of State and national banks so 

that by January 1, 1972, for any tax law enacted under authority of 

the United States or any State, a national bank will be treated as a 

bank organized and existing under the laws of the State or other jurisdiction within which its principal office is located. During the interim 

period, a State, or political subdivision thereof, generally may apply 

the same tax rules to locally headquartered national banks that it now 

does to State banks. Moreover, with some restrictions, States and 

their political subdivisions may impose certain specified taxes of their 

own on national banks not having their principal offices within the 

taxing jurisdiction. For example, nondomiciliary States and their 

political subdivisions may impose taxes on the following if they occur 

within the area’s jurisdiction: (1) purchases, sales, and use, (2) real 

property or its occupancy, (3) execution, delivery, or recordation of 

documents (this includes documentary stamp taxes), (4) tangible 

personal property (not including cash or currency), and (5) ownership, 

use, or transfer of tangible personal property. The act prohibits States 

from imposing any sales or use taxes on tangible personal property 

which was the subject matter of a written contract of purchase entered 

into before September 1, 1969.

Tax Reform Act of 1969. On December 30, 1969, the President 

approved the Tax Reform Act of 1969 (83 Stat. 487). The act is 

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8 FEDERAL DEPOSIT INSURANCE CORPORATION

visions (see Part 3 of this report), it alters the tax treatment accorded 

the bad-debt reserves of financial institutions.

Under prior revenue rulings, commercial banks generally were allowed to build up bad-debt reserves equal to 2.4 percent of their outstanding loans not insured by the Federal Government. Under the 

provisions of section 431 of the Tax Reform Act of 1969 (83 Stat. 

616), commercial banks may add to their bad-debt reserves only an 

amount necessary to increase the balance of their reserves for losses 

on eligible loans at the close of each taxable year to 1.8 percent for 

taxable years beginning after July 11, 1969, but before 1976, to 1.2 

percent for taxable years beginning after 1975 but before 1982, and 

to 0.6 percent for taxable years beginning after 1981 but before 1988. 

For taxable years beginning before 1988 a bank may, and for taxable 

years beginning after 1987 a bank must, compute additions to its baddebt reserve on the basis of its actual loss experience as indicated by 

losses for the taxable year and the 5 preceding years. If the bad-debt 

reserve at the close of any base year is less than the allowable percentage, no more than one-fifth of the difference may be added to the 

reserve for losses in any 1 year. If the reserve at the close of any 

base year equals or exceeds the allowable percentage, a bank need 

not reduce its bad-debt reserve but may add thereto only the amount 

necessary to increase the balance of the reserve at the close of the 

taxable year to the allowable percentage or to the balance of the 

reserve at the close of the base year, whichever is greater. The act 

allows commercial banks to carry back net operating losses for 10 

years and to carry forward net operating losses for 5 years.

Before enactment of the Tax Reform Act of 1969, mutual savings 

banks and savings and loan associations were permitted to compute 

additions to their bad-debt reserves on the basis of actual experience 

or under either of two alternative formulas. These alternatives included 

deducting 60 percent of taxable income or deducting 3 percent of 

qualifying real property loans. The act repeals the 3-percent method 

of computation and reduces the 60-percent method of computation 

to 40 percent over a 10-year period. Additionally, the act subjects 

mutual savings banks as well as savings and loan associations to 

investment standards in order to qualify for the special deduction.

Text of statutes. The text of pertinent provisions of the foregoing 

statutes, together with a summary of significant State banking legislation enacted during 1969, is presented in Part 3 of this report.

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OPERATIONS OF THE CORPORATION

PART TWO

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DISBURSEMENTS TO PROTECT DEPOSITORS

Banks failing in 1969. The Corporation disbursed $26 million 

during 1969 to protect depositors of nine insured banks in serious 

financial difficulty (see Table 1). Four of the banks with deposits totaling $9 million were placed in receivership and payments were made, 

directly by the Corporation, in amounts up to the $15,000 insurance 

limit prevailing at the time. Depositors in the other five banks were 

protected in full when sound operating banks assumed $31 million of 

deposit liabilities of the failing banks. For the most part, the nine 

failures resulted from financial irregularities rather than adverse local 

economic conditions. The irregularities included forged or fictitious 

notes, loans to self-serving officials, poor judgment and lax collection 

policies, speculative real estate loans, and shortages in loan income

Table 1. INSURED BANKS CLOSED DURING 1969 REQUIRING 

DISBURSEMENTS BY THE FEDERAL DEPOSIT INSURANCE CORPORATION'

Case

number

Name and 

location

Date of 

closing 

or deposit 

assumption

Number 

of depositors

Amount 

of deposits 

(in thousands)2

Date of first payment to depositors 

or disbursement by 

FDIC

Depositors receiving 

full recovery

Deposits 

paid 

(in thousands)2

Total 27,363 $40,120 26,422 $39,483

Deposit payoff

284 Citizens State Bank, 

Alvarado, Texas

April 12, 1969 2,343 2,300 April 18, 1969 1,878 2,152

285 The First State Bank, 

Dodson, Texas

May 12, 1969 688 1,085 May 14, 1969 618 1,039

286 The State National Bank, 

Lovelady, Texas

May 28, 1969 2,030 3,814 June 2, 1969 1,832 3,453

287 First National Bank of Ursa, 

Ursa, Illinois

August 20, 1969 1,472 1,799 August 25, 1969 1,264 1,717

Deposit assumption

194 The Rocky Mountain Bank, 

Lakewood, Colorado

February 6, 1969 6,716 8,065 February 6, 1969 6,716 8,065

195 The Morrice State Bank, 

Morrice, Michigan

May 6, 1969 1,759 2,167 May 6, 1969 1,759 2,167

196 The Big Lake State Bank, 

Big Lake, Texas

August 22, 1969 2,642 4,426 September 2, 1969 2,642 4,426

197 The First State Bank, 

Aransas Pass, Texas

September 5, 1969 6,459 10,472 September 8, 1969 6,459 10,472

198 The First National Bank 

of Coalville,

Coalville, Utah

October 10, 1969 3,254 5,992 October 10, 1969 3,254 5,992

1 Figures adjusted to and as of December 31, 1969.

2 Includes $7,393 thousand paid by FDIC claim agents in deposit payoff cases. All deposits were made available in 

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

accounts and excessive charges to expense accounts. Since the 

beginning of Federal deposit insurance, the Corporation has made 

disbursements to protect depositors in 482 failing banks. The approximately 1.7 million depositors (or accounts) in these banks held total

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deposits of about $879 million (see Table 2). Data on the extent and 

method of deposit insurance protection are shown in Table 3.

Deposit insurance participation and coverage. Effective December 

23, 1969, the maximum amount of insurance per depositor was increased from $15,000 to $20,000. Set first at $2,500, the insurance 

maximum was raised to $5,000 in mid-1934, to $10,000 in 1950, and 

to $15,000 on October 16, 1966. The maximum applies to the aggregate of deposits held in the same right and capacity in an insured bank.

Since the inception of Federal deposit insurance, the proportion 

of all operating banks covered has been high; at the end of 1969 over 

97 percent of all operating banks in the United States were insured 

by the Corporation. The noninsured banks included 208 commercial

Table 2. PROTECTION OF DEPOSITORS OF INSURED BANKS REQUIRING 

DISBURSEMENTS BY THE FEDERAL DEPOSIT INSURANCE CORPORATION,

1934-1969

Item

All cases 

(482 banks)

Deposit payoff 

cases 

(284 banks)

Deposit 

assumption cases 

(198 banks)

Number

or

amount

Percent

Number

or

amount

Percent

Number

or

amount

Percent

Number of depositors or accounts—to ta l1................ 1,672,804 100.0 508,525 100.0 1,164,279 100.0

Full recovery received or a vailab le ........................ 1,668,416 99.7 504,137 99.1 1,164,279 100.0

From FDIC2................................................................... 1,622,535 97.0 458,2563 90.1 1,164,279 100.0

From offset4 .................................................................. 39,999 2.4 39,999 7.9

From security or preference5..................................... 3,008 0.2 3,000 0.6

From asset liquidation6............................................... 2,874 0.1 2,874 0.5

Full recovery not received as of December 31,

1969............................................................................... 4,388 0.3 4,388 0.9

Terminated cases......................................................... 3,312 0.2 3,312 0.7

Active cases.................................................................. 1,076 0.1 1,076 0.2

Amount of deposits (in thousands)— to ta l................. 878,831 100.0 $254,936 100.0 623,895 100.0

Paid or made a vailab le................................................ 864,445 98.4 240,550 94.4 623,895 100.0

By FDIC2....................................................................... 795,328 90.5 171,4337 67.3 623,895 100.0

By offset8....................................................................... 13,494 1.5 13,494 5.3

By security or preference9.......................................... 27,076 3.1 27,076 10.6

By asset liquidation10.................................................. 28,547 3.3 28,547 11.2

Not paid as of December 31, 1969............................ 14,386 1.6 14,386 5.6

Terminated cases......................................................... 1,866 0.2 1,866 0.7

Active cases11................................................................ 12,520 1.4 12,520 4.9

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

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

facilitated by FDIC disbursements of $247,653 thousand, in deposit assumption cases.

3 Includes 58,755 depositors in terminated cases who failed to claim their insured deposits (see note 7).

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

the absence of offsets.

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

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

7 Includes $212 thousand unclaimed insured deposits in terminated cases (see note 3).

8 Includes all amounts paid by offset.

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

by the Corporation.

10 Includes unclaimed deposits paid to authorized public custodians.

11 Includes $12,520 thousand representing deposits available, expected through offset or expected from proceeds of 

liquidations; and $33 thousand representing up to $10,000 of each of certain certificates of deposit whose insured status is 

in litigation.

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DISBURSEMENTS TO PROTECT DEPOSITORS 13

Table 3. ANALYSIS OF DISBURSEMENTS, RECOVERIES, AND LOSSES 

IN DEPOSIT INSURANCE TRANSACTIONS,

JANUARY 1, 1934-DECEMBER 31, 1969 

(In thousands)

Type of disbursement Disbursements Recoveries1 Losses

A ll disbursements—to ta l.............................................................................. $475,057

418,969

247,653

$419,327

367,289

210,500

13,082

134,572

9,135

49,599

33,810

15,789

(2)

2,439

2,424

15

(2)

$55,730

51,680

24,071

P rincipal disbursements in deposit assumption and payoff 

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

Assets acquired under agreements with insured banks (198 deposit 

assumption cases):

To December 31, 1969...........................................................................

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

Deposits paid (284 deposit payoff cases):

To December 31,1969........................................................................... 170,829

487

53,865

33,810

15,789

1,066

3,200

2,223

1,773

27,609

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

Advances and expenses in deposit assumption and payoff cases— 

to ta l............................................................................................................. 4,266

Expenses in liquidating assets:

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

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

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

Field payoff and other insurance expenses in 284 deposit payoff cases

Other disbursements—to ta l.....................................................................

Assets purchased to facilitate termination of liquidations:

To December 31, 1969..........................................................................

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

1,066

3,200

(216)

(666)

Unallocated insurance expenses.............................................................. 450 450

1 Excludes amounts returned to closed bank equity holders and $9.3 million of interest and allowable return received 

by FDIC. .

2 Not recoverable. L : > _ | Q 7 q _

banks and nondeposit trust companies and 166 mutual savings banks, 

virtually all of the latter being located in Massachusetts and covered 

by its deposit insurance system.

All except a small percentage of accounts in FDIC-insured banks 

have remained fully covered under the successively higher limits of 

Federal deposit insurance. Based upon data from the Corporation’s 

most recent survey of deposits, it is estimated that 99.1 percent of 

accounts in insured banks on December 31, 1969, were within the 

insurance maximum of $20,000. Because the average size of a small 

proportion of accounts greatly exceeds the insurance limit per depositor, the percentage of insured deposits to total deposits in insured 

banks is substantially less than the proportion of fully covered accounts.

Of deposits totaling $495.9 billion in insured banks on December 

31, 1969, an estimated $313.1 billion, or 63.1 percent, were insured. 

This figure is about $16 billion greater than the estimated amount 

which would have been covered had the insurance maximum remained 

at $15,000.

SUPERVISORY ACTIVITIES

Bank examinations. The Corporation may examine any insured bank 

for insurance purposes; however, to avoid duplicating the activity of 

other Federal bank supervisory agencies, the Corporation utilizes the 

reports of examinations conducted by those agencies. The banks that

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14 FEDERAL DEPOSIT INSURANCE CORPORATION

are subject to regular examination by the Corporation comprise about 

57 percent of all insured banks in the United States and 27 percent 

of the assets of these banks. To further reduce the burden for banks 

and supervisory authorities, the Corporation’s examinations are conducted jointly or concurrently, in over one-half of the States, with 

those of the State authorities.

Field examinations and investigations in connection with insurance, 

branch, and merger applications, conducted by the Corporation during 

1969, totaled 16,412, including 7,637 examinations of main offices 

(see Table 4). The total was about 6 percent more than it was in 1968. 

In recent years, examinations of departments and branches have accounted for just over one-third of the total, and investigations for about 

14 percent.

Table 4. BANK EXAMINATION ACTIVITIES OF 

THE FEDERAL DEPOSIT INSURANCE CORPORATION 

IN 1968 AND 1969

Activity

Number

1969 1968

Field exam inations and investigations—to ta l................................................................ 16,412 15,483

Examinations of main offices—to ta l............................................................................. 7,637 7,650

Regular examinations of insured banks not members of Federal Reserve System.. 7,416 7,451

Re-examinations; or other than regular examinations................................................ 175 154

Entrance examinations of operating noninsured banks............................................... 36 41

Special examinations........................................................................................................ 10 4

Examinations of departm ents and branches.............................................................. 6,328 5,638

Examinations of trust departments................................................................................. 1,279 1,210

Examinations of branches................................................................................................ 5,049 4,428

in vestigations...................................................................................................................... 2,447 2,195

New bank investigations.................................................................................................. 282 195

State banks members of Federal Reserve System................................................... 22 25

Banks not members of Federal Reserve System...................................................... 260 170

New branch investigations............................................................................................... 629 538

Mergers and consolidations.............................................................................................. 246 185

Miscellaneous investigations............................................................................................ 1,290 1,277

Citations contemplating termination of insurance. When other measures have failed to correct a violation of law or regulation, or unsafe 

or unsound banking practice, the ultimate step available to the 

Corporation is to initiate proceedings to terminate the bank's insured 

status. When this action becomes necessary, the bank and the State 

authorities are formally notified, after which the bank must take corrective action within the time specified. If compliance is still not obtained, before insurance may be terminated the bank is given an 

opportunity to present its case at an administrative hearing.

Table 5 shows that action has been taken against 203 banks since 

1936 and that in the majority of cases the corrections were made or 

the bank was absorbed or succeeded by another bank. Insurance was 

terminated, or a date set for this, in 12 cases for failure to make 

corrections.

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SUPERVISORY ACTIVITIES 15

Table 5. ACTIONS TO TERMINATE INSURED STATUS OF BANKS CHARGED 

WITH UNSAFE OR UNSOUND BANKING PRACTICES OR VIOLATIONS 

OF LAW OR REGULATIONS, 1936-1969

Disposition or status 1936-19691

Started 

during 1969

Total banks against which action was taken.................................................................................................... 203 5

Cases closed...................................................................................................................................... 197

Corrections made....................................................................................................................... 79

Banks absorbed or succeeded by other banks . . . . 70

With financial aid of the Corporation.................................................................................. 63

Without financial aid of the Corporation............................................................................ 7

Banks suspended prior to setting date of termination of insured status by Corporation. . 36

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

to make corrections .................................................................... 12

Banks suspended prior to or on date of termination of insured status. .................. 9

Banks continued in operation 2................................................................................................ 3

Cases not closed December 31,1969........................................................................................ 6 5

Correction period not expired.................................................................................................. 4 3

Action deferred pending analysis of examination........................................................................................ 2 2

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

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

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

Six cases were open at the end of 1969, including five started 

during the year. Of two active cases at the beginning of 1969, one was 

closed because the bank was absorbed with the Corporation’s financial 

aid, while in the second case the correction period had not expired 

at the end of the year.

Applications for deposit insurance. State-chartered banks which are 

not members of the Federal Reserve System become insured by application to and approval by the FDIC. Those banks obtaining national 

charters, and State banks becoming members of the Federal Reserve 

System, acquire insured status without applying to the Corporation. 

The Federal Deposit Insurance Act requires the supervisory agency to 

consider, before admitting any bank to deposit insurance, the financial 

history and condition of the bank, adequacy of its capital structure, 

its future earnings prospects, the general character of its management, 

the convenience and needs of the community, and finally, the consistency of the bank’s corporate powers with the purposes of the act.

During 1969 the Corporation approved 157 applications for deposit 

insurance; these involved 140 new banks and 17 operating banks. 

Twenty-three new banks were located in Florida, and 19 in Illinois.

Applications for branches. Under Federal law, the supervisory agencies must consider the above six factors in passing upon applications 

by insured banks to establish new branches. The Corporation approved 556 such applications during 1969, almost 21 percent more 

than in 1968. In addition, conversion of main offices into branches 

in merger cases during the year created 47 branches of insured 

nonmember banks.

Mergers. The Bank Merger Act of 1960 (as amended) requires 

a Federal bank supervisory agency to give its approval before an 

insured bank may engage in any merger transaction. If the continuing

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16 FEDERAL DEPOSIT INSURANCE CORPORATION

bank is to be an insured nonmember bank, or if an insured bank is 

applying to absorb a noninsured institution, the Corporation’s approval 

must be obtained before the transaction may be consummated. The 

act provides that the supervisory agencies must consider specifically 

the effect of the transaction on competition, financial and managerial 

resources, prospects of the existing and proposed institutions, and 

convenience and needs of the community to be served. Details of the 

applications approved by the Corporation under section 18(c) of the 

Federal Deposit Insurance Act during 1969 are discussed in Table 15, 

pages 36-136.

Tabulations of the number of mergers approved by the Federal 

agencies under section 18(c) during 1969 are shown in Table 6. (The

TABLE 6. MERGERS, CONSOLIDATIONS, ACQUISITIONS OF ASSETS AND 

ASSUMPTIONS OF LIABILITIES APPROVED UNDER SECTION 18(c)

OF THE FEDERAL DEPOSIT INSURANCE ACT DURING 1969

Offices operated3

Banks

Number 

of banks2

Resources 

(in thousands)3

Prior to 

transaction

After

transaction

ALL CASES1

Banks in volved..................................................... 293 $48,350,897 3553 3543

Absorbing banks................................................. 138 44,364,611 3112 3543

Absorbed banks 155 3,986,286

1,651,778

559,283

1,594,243

180,982

441

National .......................................................... 55 194

State bank members FRS .......................... 17 55

Not members FRS.......................................... 78 174

Noninsured institu tions...................................... 5 18

CASES WITH RESULTING BANK

A NATIONAL BANK

Banks involved..................................................... 162 $31,228,319 2278 2272

Absorbing banks................................................. 78 29,372,988 2035 2272

Absorbed banks 84 1,855,331

1,294,725

179,737

378,446

2,423

243

National . . 42 153

State members FRS .... 7 24

Not members FRS 33 64

Noninsured institutions .............................. 2* 2

CASES WITH RESULTING BANK A

STATE BANK MEMBER OF THE 

FEDERAL RESERVE SYSTEM

Banks involved..................................................... 32 $9,981,450 453 452

Absorbing banks................................................. 16 9,594,329 411 452

Absorbed banks .............................................. 16 387,121

85,166

230,260

71,695

42

National . . . 3 12

State members FRS .................................... 5 14

Not members FRS .............. 8 16

Noninsured institutions ..................

CASES WITH RESULTING BANK 

NOT A MEMBER OF THE 

FEDERAL RESERVE SYSTEM5

Banks involved..................................................... 103 $7,143,551 839 834

Absorbing banks................................................. 46 5,397,294 681 834

Absorbed banks ........ 576 1,746,257

271,887

158

National ................ 10 29

State members FRS . . 5 149,286

1,144,102

180,982

17

Not members FRS .. . 37 94

Noninsured institutions 54 18

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

individually operate an office in the United States.

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

one case.

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

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

4 Merger cases nos. 57 and 58 in Table 15 were reported also as approved cases by the Office of the Comptroller of the 

Currency. These cases are included only once in the totals in this table.

5 Includes two cases approved by the Corporation of an absorption of a noninsured bank by a national bank, and one 

case in which the absorbing bank was a State member bank.

6 Includes one building and loan association.-

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SUPERVISORY ACTIVITIES 17

table does not include corporate reorganizations of individual banking 

institutions, such as banks in process of forming one-bank holding 

companies, which do not have the effect of lessening the number of 

existing operating banks). Banks absorbed through mergers in 1969 

numbered 25 more than in 1968, and branches of banks absorbed in 

1969 exceeded the previous year’s total by 132.

The number of banks, by size of assets and by status of branch 

banking in their States (that is, statewide branching, limited-area 

branching, or unit banking), which were involved in absorptions approved by the Federal agencies during 1969 are listed in Table 7.

Regulation of bank securities. Legislation enacted in 1964 extended 

the provisions of the Securities Exchange Act of 1934 to cover securities traded in the over-the-counter market. Responsibility for administering the act for insured banks was given to the Federal bank 

regulatory agencies. Only those corporations now having 500 or more 

shareholders and more than $1 million in assets are covered.

The Corporation, during 1969, received registration statements 

from 19 insured State nonmember banks coming under the provisions

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

DEPOSIT INSURANCE ACT DURING 1969 

BANKS GROUPED BY SIZE AND IN STATES 

ACCORDING TO STATUS OF BRANCH BANKING

Absorbing banks Absorbed banks

Number of banks by 

size (resources in $m il)1

Number

of

banks1

Number

of

branches

Resources

(in

thousands)

Number of banks by size 

(resources in $mil)

-5 5-10 10-25 25-100

Over

100

Total— U.S. 138 155 286 $3,986,286 50 32 37 25 11

-5 ...................... 6 6 9 132,535 4 1 0 0 1

5-10...................... 9 9 16 205,525 5 1 2 0 1

10-25...................... 21 27 41 468,483 14 6 4 2 1

25-100...................... 45 49 64 730,122 21 12 7 8 1

100-500...................... 34 40 94 1,632,027 5 9 10 12 4

500 or more...................... 23 24 62 817,594 1 3 14 3 3

(A) Statewide

branching2 49 60 86 931,576 20 16 15 7 2

10-25...................... 6 10 6 54,232 7 2 1

25-100...................... 15 16 28 212,089 8 3 2 3

100-500...................... 14 19 31 310,462 4 8 5 1 i

500 or more...................... 14 15 21 354,793 1 3 7 3 1

(B) Limited area

branching2 82 88 200 2,958,881 26 15 22 16 9

-5 ...................... 4 4 9 128,063 2 1 0 0 1

5-10...................... 7 7 16 197,708 4 0 2 0 1

10-25...................... 15 17 35 414,251 7 4 3 2 1

25-100...................... 27 30 36 434,493 12 9 5 3 1

100-500...................... 20 21 63 1,321,565 1 1 5 11 3

500 or more...................... 9 9 41 462,801 0 0 7 0 2

(C) U nit

banking2 7 7 0 95,829 4 1 0 2 0

-5 ...................... 2 2 0 4,472 2 0 0 0 0

5-10...................... 2 2 0 7,817 1 1 0 0 0

25-100...................... 3 3 0 83,540 1 0 0 2 0

1 See footnote 1, Table 6.

2 For the purpose of analyzing branching activity, 17 States were included in Group A, 18 in Group B, and 15 in Group 

C. It should be noted that for other purposes the classification of some States might differ from that used here.

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18 FEDERAL DEPOSIT INSURANCE CORPORATION

of the act, bringing the year-end total to 94. The latter figure reflects 

the addition of one registered bank which withdrew from the Federal 

Reserve System and the termination of registration of 12 banks. 

Terminations resulted when five registered banks were merged into 

operating banks, six reorganized as subsidiaries of one-bank holding 

companies, and one sold its assets and liquidated.

In addition to the registration statements filed by banks, the Corporation also receives current reports required by the Securities Exchange Act and regulates proxy solicitation for annual and special 

meetings of the shareholders of these banks. Another section of the 

act requires the filing of beneficial ownership reports by every director, 

major officer, and large shareholder of a registered bank. During the 

past year, 3,400 such reports had been received.

Changes in bank ownership and loans secured by bank stock.

Public Law 88-593 requires insured banks to report, to the appropriate 

Federal banking agency, any of its outstanding voting stock changes 

which would result in an alteration in control of management. Such 

reports must include any change or replacement of the bank’s chief 

executive officer, or any director, that occurs during the 12 months 

following the change in control. Also, the law specifies that insured 

banks must report any loans secured by 25 percent or more of the 

outstanding voting stock of an insured bank.

This legislation is to alert the supervisory authorities to management changes which might adversely affect the bank. Reports received 

by one Federal agency are exchanged with the other Federal banking 

agencies, as well as with the State authority if a State-chartered bank 

is involved. Over 400 changes in control involving insured nonmember 

banks were reported to the Corporation in 1969.

Publications and statistical reports from banks. The Corporation 

obtains reports of condition at quarterly intervals, and a report of 

income and dividends once each year, from each insured bank under 

its supervision, as do the other Federal banking agencies for banks 

under their supervision. The commercial bank Report of Condition 

format and contents were changed in June 1969. The new form provides more detail on bank assets and alters the treatment of reserves, 

shifting them to a separate liability account rather than subtracting 

them from assets. The Report of Income and Dividends also was 

changed to bring income reporting into line with accepted accounting 

practices and to provide a better gauge of bank performance to the 

supervisory authorities and the public. Changes in these two reports 

were effected following extensive discussions among the three Federal 

banking agencies, State supervisory authorities, and representatives 

of the banking industry. New report formats are reflected in the 1969 

statistical tables in this publication.

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SUPERVISORY ACTIVITIES 19

The Corporation processed the revised Report of Condition as of 

June 30, 1969, for all insured commercial banks. Additionally, the 

Corporation prepared and distributed, to each bank, data on the 

bank’s major call report items, comparing them with figures for other 

banks of the same size class and geographical location.

This effort was part of an on-going project in which the Corporation 

furnishes special mailings of semiannual data on balance sheet information and annual data on income and dividends to both commercial 

banks and FDIC-insured mutual savings banks. Comprehensive income 

and year-end balance sheet information for commercial banks are 

published in Bank Operating Statistics 1969 (available on request).

In 1969 the Corporation, in conjunction with the Board of Governors 

of the Federal Reserve System and the Comptroller of the Currency, 

published Trust Assets of Insured Commercial Banks— 1968. The statistics presented in this publication are a compilation of more than 

3,300 reports from banks holding trust assets. Each agency edited 

the reports from trust departments under its supervision. Processing 

of all data for publication was handled by the Federal Deposit Insurance Corporation in cooperation with the other two agencies.

In its continuing effort to keep abreast of current developments in 

the market for savings, the Corporation conducted four surveys— on 

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

during 1969 on time and savings deposits by insured nonmember 

commercial banks and by FDIC-insured mutual savings banks. (Member banks of the Federal Reserve System were surveyed by the Federal 

Reserve Board of Governors.) Tabulated survey data and a summary of 

recent developments in the savings market were sent to each reporting bank along with the survey questionnaires.

The Corporation financially supported a study of the impact of 

computers on small and medium-sized banks, which was published 

in 1969 under the title “ Banking Computer Style." The study focused 

on managerial and operational problems that banks encountered during the early years of computerization.

On April 10, 1969, the Corporation announced the awarding of 

four FDIC Fellowships in Banking, Finance, and Economics for 1969. 

These fellowships, which are intended to encourage research in banking and related fields, are part of a program to improve the quality of 

information useful to bank supervisors and to the banking community.

The Corporation has supported research on banking by staff in its 

own Research Division and provided assistance to researchers at various colleges and universities. Results of these works have been published in academic journals, banking trade publications, and various 

other forms.

Training programs for examiners and liquidators. The Corporation 

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20 FEDERAL DEPOSIT INSURANCE CORPORATION

gram for personnel of the Division of Bank Supervision (formerly the 

Examination Division). Although the bulk of the bank examiner’s 

training is of the “ on-the-job" variety, it is preceded by a one-week 

programmed instruction course developed by the Corporation to acquaint new trainees with the FDIC’s organization and functions and 

with basic subject matter the examiners are expected to master during 

the initial stages of their careers.

Each year, 26 FDIC examiners are enrolled in one of the Graduate 

Schools of Banking which are conducted on major college campuses 

throughout the country. Over 380 Corporation examiners have graduated from these three-year programs during the past 20 years. Formal 

training developed specifically for examiner personnel includes the 

three divisions of the Bank Examination School (Assistant Examiners, 

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

Course in Examining a Computerized Bank. In recent times, a minimum of 500 Division of Bank Supervision personnel have participated 

in these programs each year.

Recognizing the need to equip examiners to meet the demands 

imposed by rapidly advancing technology in the banking industry, the 

Division of Bank Supervision will begin operating a modern and versatile training center during the early part of 1970. This center, located 

in a nearby suburb of Washington, D.C., will enable the Corporation 

to provide consistent quality training at all levels.

The Corporation also has developed a one-week self-instructional 

program for new employees of the Division of Liquidation; examiners 

and assistant examiners who have been detailed to the Liquidation 

Division to assist in pay-off or assumption transactions; and temporary employees hired locally to assist in these proceedings. The program, which saves considerable training time and expense, is designed 

to teach those skills performed by the Liquidation personnel within 

the first 30 days after an insured bank has closed.

For its achievements in the field of training during 1969, the 

Corporation received the Government Organization Award given 

annually by the Washington, D.C., area chapter of the American 

Society for Training and Development, and the Training Officers Conference.

Conferences with banking groups. Conferences with State bank 

supervisory authorities were held in May and September 1969. The 

States and territories invited to participate comprised eight of the 

Corporation's 14 Regions: Boston, Kansas City, Richmond, Columbus, 

Chicago, Memphis, New York, and Philadelphia. The May meeting was 

attended by 28 supervisors and aides from banking departments of 

12 States, and the September meeting by 34 supervisors and aides

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SUPERVISORY ACTIVITIES 21

from banking departments of 11 States, Puerto Rico, and the Virgin 

Islands. These conferences were a continuation of a program initiated 

in 1964 to provide officials of State banking departments and the 

Corporation an opportunity to review industry developments at the 

State and Federal levels.

ADMINISTRATION OF THE CORPORATION

Structure and employees. The Corporation is managed by a threemember Board of Directors. The Chairman and the Director are appointed each for a six-year term by the President with the advice and 

consent of the Senate. The Comptroller of the Currency, also a Presidential appointee, serves ex officio as the third member of the Board.

The names of Corporation officials, Regional Directors, and 

Regional offices are shown on pages v and vi.

At the end of 1969, the Corporation's employment totaled 2,283, 

of which 151 were serving on a temporary basis. The total figure 

represents an increase of 228, including an additional 28 nonpermanent employees, during the year (Table 8).

Table 8. NUMBER OF OFFICERS AND EMPLOYEES 

OF THE FEDERAL DEPOSIT INSURANCE CORPORATION, 

DECEMBER 31, 1968 AND 1969

Unit

Total

Washington

office

Regional and other 

field offices

1969 1968 1969 1968 1969 1968

T o tal.................................................................................. 27283i

3

49

55

1,686

159

165

166

2,055i

3

48

45

1,526

132

146

155

636

3

49

49

135

77

165

158

589

3

48

45

135

67

146

145

1,647 1,466

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

Executive Offices........................................................

Legal Division............................................................. 6

1,551

82

Division of Bank Supervision..................................

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

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

1,391

65

Office of the Controller.............................................. 8 10

1 Includes 151 nonpermanent employees serving on a short-term appointment or when actually employed basis in 

1969 and 123 in 1968. Nonpermanent employees include college students participating in the work-study program, clerical 

workers employed on a temporary basis at banks in process of liquidation, and other personnel.

The increase of 160 employees in the Division of Bank Supervision 

occurred entirely in the Regional and field offices, which account for 

over 90 percent of the Division's total personnel.

From an average employment of 1,253 field examiners, 198 left 

the Corporation in 1969, including 52 who entered military service. 

The turnover rate for field examiners was 15.8 percent, compared 

with 16.1 percent in 1968.

FINANCES OF THE CORPORATION

Assets and liabilities. The total assets of the Corporation amounted 

to $4,297 million at the end of the year. Cash and U.S. Government

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22 FEDERAL DEPOSIT INSURANCE CORPORATION

obligations valued at amortized cost totaled $4,261 million. Assets 

acquired in receivership and deposit assumption transactions, less 

reserves for losses, amounted to $22.2 million. Land and the Corporation’s main office building, less depreciation on the building, were 

carried at $7.5 million.

Total liabilities on December 31 were $246 million, of which $241 

million were assessment credits due insured banks. About 8.6 percent 

of the credits were available immediately, the remainder to become 

available on July 1, 1970. Assets and liabilities of the Corporation on 

December 31, 1969, are shown in Table 9.

The Corporation’s total assets minus its liabilities comprise the 

deposit insurance fund, which amounted to $4,051 million at the end 

of the year. Although the fund constitutes the Corporation’s principal 

financial resource for the protection of depositors, others are available

Table 9. STATEMENT OF FINANCIAL CONDITION, 

FEDERAL DEPOSIT INSURANCE CORPORATION, 

DECEMBER 31, 1969

ASSETS

Cash......................................................................................................................................

U. S. Government obligations:

Securities at amortized cost (face value $4,233,818,000; cost $4,198,275,582)___

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

Assets acquired in receivership and deposit assumption tran sactions:*

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

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

Net insured balances of depositors inclosed insured banks, to be subrogated

when paid—see related lia b ility ..............................................................................

Equity in assets acquired under purchase agreements.............................................

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

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

Miscellaneous assets.......................................................................................................

Land and office building, less depreciation on build in g .......................................

Furniture, fixture s, and equipm ent............................................................................

Total assets............................................................................................

LIABILITIES AND DEPOSIT INSURANCE FUND2

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

Earnest money, escrow funds, and collections held for others,........................

Accrued annual leave of employees...........................................................................

Due insured banks:

Net assessment income credits available July 1,1970 (See Table 11)...................

Other assessment credits available immediately........................................................

Net insured balances of depositors in closed insured banks— see related 

asset..............................................................................................................................

Total lia b ilitie s ......................................................................................

Deposit insurance fund, net income accumulated since inception (See 

Table 1 0)......................................................................................................................

Total lia b ilitie s and deposit insurance fu n d ................................

$4,209,929,779

51,221,862

$ 10,000,000

21,208,349

486,790

16,276,428

14,545

$ 47,986,112 

25,754,000

$ 220,230,677 

20,658,862

$ 6,347,222

4,261,151,641

22,232,112

241,073

7,499,699

1

$4,297,471,748

$ 2,147,946 

698,482 

2,140,619

240,889,539

486,790

$ 246,363,376

4,051,108,372

$4,297,471,748

1 Reported hereunder is the book value of assets in process of liquidation. An a nalysis of at I assets acquired in receivership and deposit assumption transactions, including those assets which have been liquidated, is furnished in Table 3.

2 Capital stock was retired by payments to the United States Treasury in 1947 and 1948.

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

which the Corporation acts as receiver or liquidating agent.

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FINANCES OF THE CORPORATION 23

to it by virtue of its authority, granted in 1947, to borrow from the 

U.S. Treasury. Under this authority, which the Corporation has never 

had occasion to use, the Secretary of the Treasury is directed to lend 

up to $3 billion to the Corporation when in the judgment of its 

Board of Directors the funds are needed for insurance purposes.

Income and expenses. The Corporation’s total income in 1969 was 

$336 million, consisting of $144 million from assessments, less 

credits to insured banks, and income from securities of $192 million.

Total expenses and losses in 1969 amounted to $34 million, providing a net addition to the deposit insurance fund of about $302 million. 

Details of income and expenses for the year are shown in Table 10.

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

FEDERAL DEPOSIT INSURANCE CORPORATION,

YEAR ENDED DECEMBER 31, 1969

Income:

Deposit insurance assessments:

Assessments earned in 1969......................................................................................

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

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

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

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

Total incom e...........................................................................................

Expenses and losses:

Administrative and operating expenses:

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

Civil Service retirement fund and F.I.C.A. payments............................................

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

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

Provisions for insurance losses:

Applicable to banks assisted in 1969.......................................................................

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

Non-recoverable insurance expenses incurred to protect depositors—net............

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

Net addition to the deposit insurance fund—1969..................................................

Deposit insurance fund, January 1, 1969...................................................................

Deposit insurance fund, December 31, 1969, net income accum ulated since 

in ce p tio n ......................................................................................................................

$364,221,713

220,21*8,423

$ 22,067,592 

1,393,302 

5,372,739 

4,640,413

$ 3,850,000 

-4,008,109

$ 144,003,290 

65,219

$ 144,068,509 

191,709,155 

30,961

$ 335,808,625

$ 33,474,046

-158,109

605,241

$ 33,921,178

$ 301,887,447

3,749,220,925

$4,051,108,372

The assessment ratio is set by statute at 1/12 of one percent of 

total assessable deposits of each insured bank. The Federal Deposit 

Insurance Act of 1950 provided that a portion of the assessments 

earned by the Corporation each year, after deducting insurance losses 

and operating expenses, be returned to the insured banks in the form 

of a credit against future assessments. The amount of the credit was 

set initially at 60 percent and was raised to 66% percent in 1961. 

In 1969 the amount returned to insured banks was $220 million; this 

had the effect of reducing the net assessment rate to 1/30 of one

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24 FEDERAL DEPOSIT INSURANCE CORPORATION

Table 11. DETERMINATION AND DISTRIBUTION OF NET ASSESSMENT INCOME, 

FEDERAL DEPOSIT INSURANCE CORPORATION,

YEAR ENDED DECEMBER 31, 1969

Determination of net assessment income:

Total assessments which became due during the calendar year.

Less:

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

Net additions to reserve to provide for insurance losses:

Provisions applicable to banks assisted in 1969.....................

Adjustments to provisions for banks assisted in prior years

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

Total deductions...............................................................

Net assessment income for 1969....................................................

Distribution of net assessment income, December 31,1969:

Net assessment income for 1969:

33V3% transferred to the deposit insurance fund......................

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

T o tal................................................................................

Allocation of net assessment income credit among insured banks, December

31,1969:

Credit for 1969.............................................................................................................

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

To tal.........................................................................................................

$ 3,850,000 

-4,035,209

$220,218,423

12,254

$220,230,677

$364,221,713

$ 33,474,046

-185,209

605,241

33,894,078

$330,327,635

$110,109,212

220,218,423

$330,327,635

Percentage of 

total assessment 

becoming due in 

1969

60.46274

.00336

60.46610

percent of assessable deposits. The computation and allocation of net 

assessment income in 1969 are shown in Table 11. Sources and application of the Corporation’s funds in 1969 are given in Table 12.

Income and the deposit insurance fund, 1933-1969. The income 

and expenses of the Corporation and addition to the insurance fund 

each year appear in Table 13.

The Federal Deposit Insurance Act requires that monies of the 

Corporation not otherwise employed be invested in U.S. Treasury

Table 12. SOURCES AND APPLICATION OF FUNDS, 

FEDERAL DEPOSIT- INSURANCE CORPORATION, 

YEAR ENDED DECEMBER 31, 1969

Funds provided by: Percent

Net deposit insurance assessments.............................................................................................. $ 144,068,509 5.9

Income from U. S. Government securities, less amortized net discounts.............................. 190,631,260 7.7

Maturities and sales of U. S. Government securities................................................................. 2,070,846,033 84.2

Collections on assets acquired in receivership and deposit assumption transactions.......... 30,326,233 1.2

Increase in assessment credits due insured banks.................................................................... 23,790,314 1.0

Total funds provided............................................................................................... $2,459,662,349 100.0

Funds applied to:

Administrative, operating and insurance expenses, less miscellaneous credits.................... $ 33,913,122 1.4

Acquisition of assets in receivership and deposit assumption transactions........................... 38,744,255 1.6

Purchase of U. S. Government securities.................................................................................... 2,378,623,794 96.7

Net changes in other assets and liabilities.................................................................................. 8,381,178 0.3

Total funds applied................................................................................................. $2,459,662,349 100.0

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FINANCES OF THE CORPORATION 25

Table 13. INCOME AND EXPENSES, 

FEDERAL DEPOSIT INSURANCE CORPORATION, 

BY YEAR, FROM BEGINNING OF OPERATIONS, 

SEPTEMBER 11, 1933, TO DECEMBER 31, 1969 

ADJUSTED TO DECEMBER 31, 1969 

(In millions)

Income

Year

Total

Deposit 

insurance 

assessments 1

Investments

and

other

sources2

Expenses and losses

Total

Deposit 

insurance 

losses and 

expenses

Interest 

on capital 

stock 3

Administrative

and

operating

expenses

Net 

income 

added to 

deposit 

insurance 

fu n d 4

1933-69.

1969....

196 8....

196 7....

196 6....

196 5....

196 4....

196 3....

196 2....

196 1....

1960....

195 9....

1958....

1957....

195 6....

1 95 5....

195 4....

195 3....

1952........

1951........

1950........

1949........

1948........

1947........

1946........

1945........

1944........

194 3....

1942........

1941........

1940........

1939........

1938........

1937........

1936........

1935........

1933-34..

$4,527.9

335.8

295.0

263.0

241.0

214.6

197.1

181.9

161.1

147.3

144.6

136.5

126.8

117.3

111.9

105.7

99.7

94.2 

88.6

83.5

84.8 

151.1

145.6 

157.5

130.7 

121.0

99.3

86.6

69.1 

62.0

55.9

51.2

47.7

48.2

43.8

20.8

7.0

$2,688.9

144.0 

132.4

120.7

111.7 

102.2

93.0

84.2

76.5

73.4

79.6

78.6

73.8

69.1

68.2

66.1

62.4

60.2

57.3

54.3

54.2

122.7

119.3

114.4 

107.0

93.7

80.9

70.0

56.5

51.4

46.2

40.7

38.3

38.8

35.6

11.5

$1,839.0

191.8

162.6

142.3

129.3

112.4 

104.1

97.7

84.6

73.9

65.0

57.9

53.0

48.2

43.7

39.6

37.3

34.0

31.3

29.2

30.6

28.4

26.3

43.1

23.7

27.3

18.4

16.6

12.6

10.6

9.7

10.5

9.4

9.4 

8.2

9.3 

7.0

$476.8

37.9

29.7

29.7

25.0

22.9

18.7

15.5

13.8

14.8

12.5

12.1

11.6

9.7

9.6

9.0

7.8

7.3

7.8

6.6

7.8

6.4

7.0

9.9 

10.0

9.4

9.3

9.8

10.1

10.1

12.9 

16.4

11.3 

12.2

10.9

11.3 

10.0

$55.6

4.4

.7

5.3

5.2

5.2

3.2

1.1

.1

1.6

.1

.2

$80.6

1.4 

.3

.7

.1

.1

.1

.1

.2

.5

.6

3.5 

7.2

2.5

3.7

2.6

2.8

.2

0.6

4.8

5.8

5.8

5.8

5.8

5.8

5.8

5.8

5.8

5.8

5.8

5.8

5.8 

5.6

$340.6 $4,051.1

33.5 297.9

29.0 265.3

24.4 233.3

19.8 216.0

17.7 191.7

15.5 178.4

14.4 166.4

13.7 147.3

13.2 132.5

12.4 132.1

11.9 124.4

11.6 115.2

9.6 107.6

9.1 102.3

8.7 96.7

7.7 91.9

7.2 86.9

7.0 80.8

6.6 76.9

6.4 77.0

6.1 144.7

5.7 138.6

5.0 147.6

4.1 120.7

3.5 111.6

3.4 90.0

3.8 76.8

3.8 59.0

3.7 51.9

3.6 43.0

3.4 34.8

3.0 36.4

2.7 36.0

2.5 32.9

2.7 9.5

4.2 5 -3 .0

1 For the period from 1950 to 1969, inclusive, figures are net after deducting the portion of net assessment income 

credited to insured banks pursuant to provisions of the Federal Deposit Insurance Act of 1950, as amended. Assessment 

credits to insured banks for these years amount to $2,172 million.

in clu d e s $9.3 million of interest and allowable return received on funds advanced to receivership and deposit 

assumption cases by the Corporation.

3 Paid in 1950 and 1951, but allocated among years to which it applies. Initial capital of $289 million was retired by 

payments to the United States Treasury in 1947 and 1948.

4 Assessments collected from members of the temporary insurance funds which became insured under the permanent 

plan were credited to their accounts at the termination of the temporary funds and were applied toward payment of 

subsequent assessments becoming due under the permanent insurance fund, resulting in no income to the Corporation 

from assessments during the existence of the temporary insurance funds.

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

funds on June 30,1934.

obligations or securities fully guaranteed by the United States. While 

almost three-fifths of the Corporation’s total income since 1934 came 

from assessments, income from investments provided 57 percent of

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

the Corporation’s total income in 1969 and continues to increase at 

a faster rate than income from net assessments.

Insured deposits and the deposit insurance fund at the end of each 

year since 1934 are shown in Table 14. The rise in the estimated 

amount of insured deposits by over $16 billion, to $313 billion at the 

end of 1969, is attributable almost totally to the increase in the maximum level of insurance per depositor in 1969. Similarly, the ratio of 

insured deposits to total deposits in insured banks, 63.1 percent, is 

estimated to be about 3.1 percentage points above the level that 

would have existed under the $15,000 maximum.

Audit. The General Accounting Office has audited the financial transactions of the Corporation each year since 1945. Previously, audits 

were conducted annually by private firms engaged by the Corporation. 

The Corporation also provides its own continuous internal audit.

Table 14. INSURED DEPOSITS AND THE DEPOSIT INSURANCE FUND,

1934-1969

Year 

(Dec. 31)

Deposits in 

insured banks 

(in millions)

Percent

of

deposits

insured

Deposit

insurance

fund

(in

millions)

Ratio of deposit 

insurance fund to—

Total

deposits

Insured

Total Insured 1 deposits

1969...................... $495,858 $313,085 63.1% $4,051.1 .82% 1.29%

1968...................... 491,513 296,701 60.2 3,749.2 .76 1.26

1967...................... 448,709 261,149 58.2 3,485.5 .78 1.33

1966...................... 401,096 234,150 58.4 3 , 252.0 .81 1.39

1965...................... 377,400 209,690 55.6 3,036.3 .80 1.45

1964...................... 348,981 191,787 55.0 2,844.7 .82 1.48

1963...................... 313,3042 177,381 56.6 2,667.9 .85 1.50

1962...................... 297,5483 170,2104 57.24 2,502.0 .84 1.474

1961...................... 281,304 160,309^ 57.04 2,353.8 .84 1.474

1960...................... 260,495 149,684 57.5 2,222.2 .85 1.48

1969...................... 247,589 142,131 57.4 2,089.8 .84 1.47

1958...................... 242,445 137,698 56.8 1,965.4 .81 1.43

1957...................... 225,507 127,055 56.3 1,850.5 .82 1.46

1956...................... 219,393 121,008 55.2 1,742.1 .79 1.44

1955...................... 212,226 116,380 54.8 1,639.6 .77 1.41

1954...................... 203,195 110,973 54.6 1,542.7 .76 1.39

1953...................... 193,466 105,610 54.6 1,450.7 .75 1.37

1952...................... 188,142 101,842 54.1 1,363.5 .72 1.34

1951...................... 178,540 96,713 54.2 1,282.2 .72 1.33

1950...................... 167,818 91,359 54.4 1,243.9 .74 1.36

1949...................... 156,786 76,589 48.8 1,203.9 .77 1.57

1948...................... 153,454 75,320 49.1 1,065.9 .69 1.42

1947...................... 154,096 76,254 49.5 1,006.1 .65 1.32

1946...................... 148,458 73,759 49.7 1,058.5 .71 1.44

1945...................... 158,174 67,021 42.4 929.2 .59 1.39

1944...................... 134,662 56,398 41.9 804.3 .60 1.43

1943...................... 111,650 48,440 43.4 703.1 .63 1.45

1942...................... 89,869 32,837 36.5 616.9 .69 1.88

1941...................... 71,209 28,249 39.7 553.5 .78 1.96

1940...................... 65,288 26,638 40.8 496.0 .76 1.86

1939...................... 57,485 24,650 42.9 452.7 .79 1.84

1938...................... 50,791 23,121 45.5 420.5 .83 1.82

1937...................... 48,228 22,557 46.8 383.1 .79 1.70

1936...................... 50,281 22,330 44.4 343.4 .68 1.54

1935...................... 45,125 20,158 44.7 306.0 .68 1.52

1934...................... 40,060 18,075 45.1 333.0 .83 1.84

1 Figures estimated by applying to the deposits in the various types of account at the regular call dates the percentages 

insured as determined from special reports secured from insured banks.

2 December 20, 1963.

3 December 28, 1962.

4 Revised.

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RULES AND REGULATIONS OF THE CORPORATION 27

RULES AND REGULATIONS AND STATEMENTS OF GENERAL POLICY

Definition of the term “ political subdivision” for insurance purposes. Effective January 8, 1969, the Board of Directors amended 

the Corporation's rules and regulations, Part 330, to define, for the 

first time, the term “ political subdivision” for insurance purposes. 

The amendment is intended to clarify the insurance coverage afforded 

deposits of public units and to enable them, as well as insured banks, 

to comply with all legal requirements relating to public fund depositories. Under the provisions of the amendment, the term "political 

subdivision” includes any subdivision of a public unit, as defined in 

section 3(m) of the Federal Deposit Insurance Act, as amended (12 

U.S.C. 1813(m)), or any principal department of such public unit (1) 

the creation of which has been expressly authorized by State statute, 

(2) to which some functions of government have been delegated by 

State statute, and (3) to which funds have been allocated by statute 

or ordinance for its exclusive use and control. The definition specifically includes drainage, irrigation, navigation, improvement, levee, 

sanitary, school or power districts and bridge or port authorities and 

other special districts created by State statute or compacts between 

States. Excluded from the term are subordinate or nonautonomous 

divisions, agencies, or boards within principal departments.

A similar amendment, applicable to public unit accounts in insured 

savings and loan associations, was adopted by the Federal Home Loan 

Bank Board.

Minimum security devices and procedures for insured nonmember

banks. On January 13, 1969, the Corporation’s Board of Directors— 

simultaneously with the Board of Governors of the Federal Reserve 

System, the Comptroller of the Currency, and the Federal Home Loan 

Bank Board— adopted a regulation implementing the Bank Protection 

Act of 1968 (82 Stat. 294).

The new Part 326 of the Corporation’s rules and regulations, entitled “ Minimum Security Devices and Procedures for Insured Nonmember Banks,” establishes minimum standards with which each 

insured State nonmember bank must comply for installing, maintaining, and operating security devices, and it lists procedures for banks 

to follow to discourage robberies, burglaries, and larcenies and to 

assist in identifying and apprehending persons who commit such acts. 

For example, the new regulation (1) requires the designation of a 

security officer for each insured State nonmember bank; (2) requires 

each bank to submit reports on security devices proposed for each 

banking office; (3) requires the development of a security program 

for each bank; and (4) requires each bank to develop a plan for 

installing, maintaining, and operating appropriate security devices in 

each banking office. The regulation also requires each bank to submit

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28 FEDERAL DEPOSIT INSURANCE CORPORATION

compliance reports as of the last business day in June of 1970 and 

as of the last business day in June of each calendar year thereafter.

Part 326 requires bank security officers to seek the advice of law 

enforcement officers in determining the specific needs of each office. 

In addition to specifying certain minimum requirements, the new 

part describes, in an appendix, some standards for various other 

security devices that might be considered appropriate for installation 

in banking offices located in areas with a high incidence of crimes 

against financial institutions.

Special notice account deposits in Massachusetts. To prevent deterioration in the competitive position of the eight insured nonmember 

mutual savings banks located in Massachusetts, as compared with the 

large number there not subject to the Corporation’s interest-rate 

regulation, the Board of Directors, effective April 14, 1969, granted 

the eight a local rate exemption which, in effect, permits them to pay 

up to 51/2 percent— a rate being offered by a number of the Stateinsured institutions— on 90-day special notice accounts. More specifically, the Board of Directors adopted an amendment, to Part 329 

of the Corporation’s rules and regulations, which permits insured nonmember mutual savings banks located in Massachusetts to pay a 

higher rate of interest or dividends on any deposit subject to a written 

agreement with the depositor that the deposit may not be withdrawn 

other than pursuant to the terms of a withdrawal notice signed by the 

depositor and received by the bank not less than 90 days in advance 

of a nine-day withdrawal period.

Advertising of interest paid on deposits in insured nonmember

banks. The Board of Directors, on June 13, adopted amendments to 

Part 329, entitled “ Interest on Deposits,” to govern the advertising of 

interest paid on deposits in insured nonmember banks. These amendments, which became effective August 1, 1969, implement authority 

granted to the Corporation by the Act of September 21, 1968 (82 

Stat. 856). Similar amendments were approved by the Board of 

Governors of the Federal Reserve System and by the Federal Home 

Loan Bank Board with respect to financial institutions subject to supervision by them.

The amendments supersede advertising guidelines that were set 

forth in a 1966 letter addressed by the Corporation to all insured 

nonmember banks. The amendments incorporate the guideline requirements that interest rates be stated in terms of annual rates of 

simple interest; that the annual rate of simple interest be stated 

with equal prominence where a percentage yield achieved by compounding interest during one year is advertised; and that time and 

amount requirements for an advertised rate be stated. In the interest 

of greater clarity, advertisements of yields based on periods in excess

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RULES AND REGULATIONS OF THE CORPORATION 29

of a year (such as average annual yields achieved by compounding) 

are prohibited.

Time deposits of foreign governments. Effective November 5, 1969, 

section 329.3(g) of the Corporation's rules and regulations was 

amended to expand the categories of organizations on whose time 

deposits insured nonmember banks may pay rates of interest in 

excess of those generally permitted by the Corporation's interest-rate 

regulation. Formerly, time deposits of foreign governments, of monetary or financial authorities of foreign governments, or of international 

financial institutions of which the United States is a member were 

exempt from the interest-rate limitations. The amended subsection 

broadens these categories of exempt organizations with respect to 

time deposits having maturities of 2 years or less and representing 

funds deposited and owned by (1) a foreign government or an agency 

or instrumentality thereof engaged principally in activities which are 

ordinarily performed in the United States by governmental entities, 

(2) an international entity of which the United States is a member, 

or (3) any other foreign, international, or supranational entity specifically designated by the Board of Directors as exempt. The amended 

subsection further provides that any such certificate of deposit, issued 

by an insured nonmember bank to any such entity, on which the 

contract rate of interest exceeds the maximum rate generally prescribed by the Corporation’s interest-rate regulation, must provide 

that, if the certificate is transferred to a nonexempt holder, the date 

of transfer shall appear on the certificate and that the maximum 

interest-rate limitations shall apply to the certificate for any period 

during which it is held by a person other than an exempt governmental 

entity.

An alternative method of transferring such a certificate to a nonexempt holder is also provided by the amended subsection. If it 

desires to do so, a bank may issue a new certificate to the transferee 

so long as the new certificate does not mature before the maturity 

date of the original certificate and does not provide for interest after 

the date of transfer at a rate in excess of the applicable maximum 

rate authorized by section 326.6 of the Corporation's rules and regulations as of the date of issuance of the original certificate.

Increase in insurance coverage. Effective December 23, 1969, the 

Board of Directors adopted amendments to Parts 306, 308, 328, 330, 

and 331 of the Corporation's rules and regulations in order to conform 

them to the provisions of section 7 of the Act of December 23, 1969 

(83 Stat. 375), which increased the maximum amount of the insured 

deposit of each depositor from $15,000 to $20,000 effective upon 

the date of its enactment.

Securities of insured nonmember banks. Effective December 31,

1969, the Board of Directors adopted amendments to Part 335 of its

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30 FEDERAL DEPOSIT INSURANCE CORPORATION

rules and regulations relating to the form and content of commercial 

bank financial statements and proxy solicitation provisions. This part 

of the rules and regulations, entitled “ Securities of Insured State Nonmember Banks,” applies the disclosure provisions of the Securities 

Exchange Act of 1934 to the securities of insured State nonmember 

banks that have 500 or more shareholders.

The major change effected by the amendments is to implement 

the “ net income” concept in bank income reports. Briefly, the change 

(1) requires a bank to recognize a loan loss factor in reporting operating expenses; (2) requires securities gains and losses to be reported, 

as realized, in a bank’s statement of income; and (3) designates the 

last line of the statement of income as “ net income.” In addition, per 

share earnings are required to be reported. The amendments generally 

are intended to make financial reports required by Part 335 of the 

Corporation’s rules and regulations consistent with the format and 

instructions for the preparation of reports submitted periodically to 

the Federal bank regulatory agencies.

Copies of statements and reports of all banks subject to Part 335 

will continue to be available for public inspection at the Corporation’s 

Washington office and at the New York, Chicago, and San Francisco 

Federal Reserve Banks. In addition, this information for each reporting 

bank will be available at the Federal Reserve bank in the district in 

which the bank is located.

Part 309 of the Corporation’s rules and regulations, which provides 

for the availability to the public of reports required from insured 

State nonmember banks, has been amended to conform to the' 

amended Part 335.

Truth-in-Lending regulation. On July 1, 1969, the disclosure and 

advertising provisions of Title I of the Consumer Credit Protection Act 

(Truth-in-Lending Act) and its implementing regulation (Federal Reserve Board Regulation Z) went into effect. Administrative enforcement 

of Truth-in-Lending with respect to insured banks is divided among the 

Comptroller of the Currency, for national banks; the Board of Governors of the Federal Reserve System, for State member banks; and the 

Federal Deposit Insurance Corporation, for insured State nonmember 

banks.

Materials prepared by the Board of Governors of the Federal Reserve System, including its official interpretations of regulation Z, 

have been distributed by the Corporation to all insured State nonmember banks.

Text of regulations. The text of pertinent provisions of the foregoing 

regulations (except Federal Reserve Board Regulation Z) is presented 

in Part 3 of this report.

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Federal Reserve Bank of St. Louis
BANK ABSORPTIONS APPROVED BY THE CORPORATION 31

BANKS INVOLVED IN ABSORPTIONS 

APPROVED BY THE FEDERAL DEPOSIT INSURANCE CORPORATION

IN 1969

No.

State Town or City Bank (Table 15)

Alaska Anchorage

Valdez

Arizona Phoenix

Tucson

Yuma

California Fremont

San Diego 

San Francisco

San Jose 

Connecticut New Haven

Stamford

Georgia Avondale Estates

Decatur

Hawaii Honolulu

Illinois Chicago

Decatur

Indiana Albany

Fort Wayne

The First National Bank of

Anchorage 57

The First Bank of Valdez 57

Pioneer Bank of Arizona

(change title to Great

Western Bank & Trust

Company) 12, 65

Westam, Inc. 12

United Bank of Arizona 9

Great Western Bank & Trust

Company 65

Bank of Yuma 9

Bank of Fremont 47

Fremont Bank 47

City Bank of San Diego 7

Bank of America National Trust

and Savings Association 1

Barclays Bank of California 51

California Canadian Bank 7

First Valley Bank 51

The Union and New Haven Trust

Company 28

The Fairfield County Trust

Company (change title to Union

Trust Company) 28

The Citizens and Southern

DeKalb Bank 48

The Citizens and Southern

Belvedere Bank 48

Bank of Hawaii 55

Bev Bank (change title to

Beverly Bank) 37

Beverly Bank 37

The Millikin Trust Company 58

The Millikin National Bank of

Decatur 58

Albany State Bank and Trust

Company 29

Allen Bank and Trust Company

(change title to Indiana Bank

and Trust Company of Fort

Wayne) 43

Financial Bank, Inc. (change title

to The Peoples Trust and

Savings Company) 66

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32 FEDERAL DEPOSIT INSURANCE CORPORATION

S tate Town or City B ank

No.

(T able 15)

Fort Wayne (cont'd) Indiana Bank and Trust Company

of Fort Wayne 43 

The Peoples Trust and Savings

Company 66

Citizens State Bank 27

The Boone County State Bank 27

Industrial Trust & Savings Bank 29 

Roachdale Bank and Trust

Company 33

Russellville Bank 33

Casey State Bank (change title to

Security State Bank) 34

Bankers Trust Company 38

Menlo Savings Bank 34 

Bankers Trust Company of

Windsor Heights 38

American Bank & Trust Company 73 

Great American Bank & Trust 

Company (change title to 

American Bank & Trust

Company) 73

Clifton Savings Bank 49

Clifton Trust Bank 49

Marine Bank of Crisfield 59

Bank of Somerset 59

Central Michigan Bank 72 

Citizens State Bank (change title

to Central Michigan Bank) 72

The Cadillac State Bank 13

The Kalkaska State Bank 13

The Morrice State Bank 17

The Owosso Savings Bank 17

New Hampshire Savings Bank 10

Pittsfield Savings Bank 10

The Clayton National Bank 68 

The Central Jersey Bank and

Trust Company 67 

Community Bank of Linden 

(change title to Community

State Bank & Trust Company) 2

Peoples Bank of South Jersey 68

State Bank of Rahway 2 

First National Bank of Scotch

Plains 60

Franklin State Bank 60

The National Bank of Westfield 67

Louisiana

Maryland

Michigan

New Hampshire 

New Jersey

Jamestown

Lebanon

Muncie

Roachdale

Russellville

Casey

Des Moines 

Menlo

Windsor Heights 

Baton Rouge

Baltimore

Crisfield 

Princess Anne 

Barryton 

Big Rapids

Cadillac

Kalkaska

Morrice

Owosso

Concord

Pittsfield

Clayton

Freehold

Linden

Penns Grove 

Rahway 

Scotch Plains

Somerset

Westfield

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BANK ABSORPTIONS APPROVED BY THE CORPORATION 33

S tate Tow n or City B ank

No.

(T able 15)

New York

North Carolina

Ohio

Pennsylvania

New York (Brooklyn)

New York

Durham

Gibsonville

Harrellsville

Lenoir

Marshville

Monroe

Mount Olive

North Wilkesboro

Pittsboro 

Rocky Mount 

Roxobel 

Salisbury

Smithfield

Wadesboro

Whiteville

Yadkinville

Akron

Barberton

Manchester

Winchester

Allentown

Bakerton

Bethlehem

32

35

30, 61 

21 

20 

63

14

61

20

62

Anchor Savings Bank 

Bushwick Savings Bank (change 

title to Anchor Savings Bank)

The Prudential Savings Bank 

West Side Savings Bank (change 

title to Prudential Savings 

Bank)

Central Carolina Bank & Trust 

Company 

The Bank of Gibsonville 

Bank of Harrellsville 

Lenoir Industrial Bank, Inc.

Mutual Bank & Trust Company 24 

American Bank & Trust Company 23 

Southern Bank and Trust 

Company 62

The Northwestern Bank 14, 63

Wilkes County Bank & Trust 

Company (change title to The 

Northwestern Bank)

Bank of Pittsboro 

Peoples Bank & Trust Company 

Roanoke Chowan Bank 

Security Bank and Trust 

Company 

First-Citizens Bank & Trust 

Company 

Anson Bank and Trust Company 

Eastern Bank and Trust Company 

(change title to Waccamaw 

Bank and Trust Company) 46 

Waccamaw Bank and Trust 

Company 46

Bank of Yadkin 30

Evans Savings Association 3

The Barberton State Bank (change 

title to The American Bank of 

Commerce) 3

The Bank of Manchester Company 6 

The Winchester Bank Company 

(change title to The First State 

Bank of Adams County) 6

The Merchants National Bank of 

Allentown 

The First National Bank of 

Bakerton 

First Valley Bank 

The First National Bank and Trust 

Company of Bethlehem 11

8

40

11

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

S tate Town or City B ank

No.

(T able 15)

South Carolina

Chambersburg

Doylestown

Hughesville

Jenkintown

Jersey Shore

Johnstown

Muncy

Norristown

Reading

St. Marys

W e llsb o ro

Wilkes-Barre

Blacksburg

Charleston

Cheraw 

Dillon 

Great Falls 

Greenville

Greenwood 

Johnston 

Lake View 

Nichols 

North Augusta 

Orangeburg

National Valley Bank and Trust 

Company 

Valley Bank and Trust Company 

Doylestown Trust Company 

The First National Bank of 

Hughesville 

Industrial Valley Bank and Trust 

Company 

The Union National Bank of 

Jersey Shore 

Johnstown Bank and Trust 

Company 

Commonwealth Bank and 

Trust Company 5

The Citizens National Bank of 

Muncy

Continental Bank and Trust 

Company 

Bank of Pennsylvania 

Washington Street Bank and 

Trust Company 

Elk County Bank and Trust 

Company 

The Saint Marys National Bank 

C o m m o n w e a lth B a n k an d Trust 

Company 

Miners National Bank of 

Wilkes-Barre 

United Penn Bank

50 

50 

22

41

22

52

40

41, 52

8

31

31

4

4

15

15

69Blacksburg State Bank 

The Carolina Bank and Trust 

Company of Charleston 44

Peoples Bank of Cheraw 56

Citizens Bankof South Carolina 25, 56 

Bank of Great Falls 56

First Piedmont Bank and Trust Co. 26 

Piedmont Bank (change title to 

First Piedmont Bank and Trust 

Company) 26

Southern Bank and Trust 

Company 69

State Bank and Trust Company 16, 44 

Ridge Banking Company 16

Lake Banking Company 56

The Bank of Nichols 25

North Augusta Banking Company 16 

The Southern National Bank of 

Orangeburg 16

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BANK ABSORPTIONS APPROVED BY THE CORPORATION 35

State Town or City

No.

Bank (Table 15)

Texas Aransas Pass First State Bank 45

The First State Bank, Aransas

Pass, Texas 45

Big Lake Reagan State Bank 42

The Big Lake State Bank 42

Houston Bank of Texas 39

Esperson State Bank (change

title to Bank of Texas) 39

Virginia Annandale First Virginia Bank 36

Arlington Arlington Trust Company, Inc. 19

Old Dominion Bank 36

Charlottesville Citizens Bank and Trust Company 18

Jefferson Bank of Charlottesville

(change title to Citizens Bank

and Trust Company of

Charlottesville) 18

Driver First County Bank (change title to

The Bank of Nansemond) 70

Falls Church Falls Church Bank 36

Herndon Republic Bank and Trust

Company (change title to

Arlington Trust Company,

Incorporated) 19

Nansemond The Bank of Nansemond 70

Virginia Beach Ocean Bank (change title to

People's Bank of Virginia

Beach) 54

People's Bank of Virginia Beach 54

Wisconsin Amery Union State Bank 71

Deer Park State Bank of Deer Park 71

Lime Ridge The State Bank of Lime Ridge 64

North Freedom Bank of North Freedom 64

Reedsburg The Reedsburg Bank 64

Spring Green State Bank of Spring Green 53

The Farmers State Bank of Spring

Green (change title to Bank of

Spring Green) 53

Other

American Samoa Pago Pago, Tutuila Bank of American Samoa 55

Uruguay Montevideo Banco del Este, S.A.

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

Table 15. DESCRIPTION OF EACH MERGER, CONSOLIDATION, 

ACQUISITION OF ASSETS OR ASSUMPTION OF LIABILITIES 

APPROVED BY THE CORPORATION DURING 1969

Resources

(i n

Banking Offices

No. 1

\\11

thousands

of dollars)

In

operation

To be

operated

Bank of America National Trust 

and Savings Association

San Francisco, California 

to acquire the assets and assume the

deposit liabilities of its noninsured

subsidiary

18,337,978 i

Banco del Este, S.A.

Montevideo, Uruguay

281 1

S u m m a ry re p o rt by A tto rn e y G eneral, S e p te m b e r 20, 1968 

Banco del Este is a small bank headquartered in Montevideo, Uruguay with 

a service area predominantly agricultural. Permission was granted Bank of 

America by the Board of Governors of the Federal Reserve System on March

14, 1968 to acquire Banco del Este as a wholly owned subsidiary.

The proposed merger would convert an already existing banking subsidiary 

of Bank of America into a branch of Bank of America. Thus, the proposed 

merger would have no effect on competition.

B asis fo r C o rp o ra tio n approval, J a n u a ry 3 0, 1969 

Bank of America National Trust and Savings Association, San Francisco, California (Applicant), total deposits $15.8 billion, has applied, pursuant to Section 

18(c) of the Federal Deposit Insurance Act, for the Corporation’s approval to 

acquire assets and assume liability to pay deposits made in Banco del Este,

S.A., Montevideo, Uruguay (Banco), total deposits $70,000, a noninsured subsidiary of Applicant.

The subject banks are not now in competition with each other because of 

their affiliation, which was effected in April 1968, nor were they in competition 

for some time prior to that date since Applicant has no offices in Uruguay and 

its office closest to Banco is 150 miles distant in Buenos Aires, Argentina.

There are 28 banks operating 198 offices in Montevideo, including one U.S. 

bank and a number of other banks foreign to Uruguay. Banco operates one 

office and is among the three smallest banks in the city. Applicant has more 

than 900 domestic offices and is represented in 62 countries through its overseas branches, representative offices, and affiliates. The overall proposal represents the entry into Uruguay of an additional U.S. bank which, by virtue of its

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Federal Reserve Bank of St. Louis
BANK ABSORPTIONS APPROVED BY THE CORPORATION 37

vast resources and facilities, should tend to increase competition, especially in 

the field of international banking.

The Board of Directors is of the opinion that the proposal would not lessen 

competition, tend to create a monopoly, or in any other manner be in restraint 

of trade.

The factors of financial and managerial resources, future prospects, and 

convenience and needs of the community to be served are satisfactory with 

respect to the merging banks and are so projected for the resulting bank.

On the basis of the information presented and other information available to 

the Corporation, the Board of Directors has concluded that approval of the 

bank's application is warranted.

Resources Banking Offices

No. 2

(in

thousands

o f dollars)

In

operation

To be

operated

Community Bank of Linden

Linden, New Jersey 

(change title to Community State 

Bank & Trust Company) 

to merge with

33,456 3 5

State Bank of Rahway

Rahway

17,745 2

S u m m a ry re p o rt by A tto rn e y G eneral, O cto b e r 30, 1968

Community Bank and State Bank are located in the contiguous communities 

of Linden (population 44,000), and Rahway (population 28,000); this area is 

adjacent to Elizabeth, New Jersey, on the north. Two banks, Community Bank 

and an Elizabeth based bank (total deposits $176 million) operate six offices 

in Linden, and two banks, State Bank and another Elizabeth based bank, (total 

deposits $185 million) operate three offices in Rahway. The merging banks are 

each the smaller bank in their respective communities.

All three of Community Bank's offices are within 2 l/ 2 miles of State Bank's 

two offices. The nearest offices are about i y 2 miles apart. Thus, it is clear 

that there is direct competition between the merging banks, which would be 

eliminated by the proposed merger.

As of June 30, 1966, four banks operated seven offices in the combined Linden-Rahway market. Two other small banks each operate one office near the 

borders of Linden-Rahway. If one includes these banks in the market, as of 

June 30, 1966, Community Bank had the second largest share, or 23 percent, 

of total IPC demand deposits, and State Bank, had the fourth largest share, or 

11 percent, of IPC demand deposits. If this merger had been consummated, 

the combined bank would have had the largest share, or 34 percent of such 

deposits, and three banks, two of which are headquartered in Elizabeth, would 

have had about 88 percent of IPC demand deposits.

Consummation of this merger would eliminate existing competition, would 

increase concentration in the Linden-Rahway area, and would eliminate a significant independent competitor.

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

In view of these facts, we conclude that the competitive effects of this 

merger would be significantly adverse.

S u p p le m e n ta l re p o rt by A tto rn e y G eneral, J a n u a ry 15, 1969

This is in regard to our report of October 30, 1968, on the competitive factors involved in the proposed merger of State Bank of Rahway, Rahway, New 

Jersey (“ State Bank"), into Community Bank of Linden, Linden, New Jersey 

(“ Community Bank"). Our report concluded that the merger would eliminate 

existing competition between the banks, increase concentration, and eliminate 

a significant independent competitor and that therefore its competitive effect 

. . . would be significantly adverse.

It has since come to our attention that the two banks have had common 

management ever since the second bank was organized in 1958. It appears 

that in 1955, a group of local citizens had obtained a charter for Community 

Bank, which was to be a progressive bank, responsible to the banking needs of 

the local Linden community. In 1958, a group of citizens from Rahway 

approached Community Bank’s management about creating the same type of 

bank for Rahway. Under New Jersey law, which prohibited de novo branching 

into any community where a bank operated an office,1 Community Bank could 

not branch into Rahway. In response to this invitation, management personnel 

of Community Bank were instrumental in the organization of State Bank and 

the two banks have been commonly managed since that time, although there 

is divergence in shareholding and some of the lower management is separate.

We do not normally conclude that a bank merger will not have anticompetitive effects merely because common management or ownership exists between 

the merging banks. A merger between such banks may permanently eliminate 

the potential for competition between them if those common arrangements 

should be terminated at some time in the future. This is particularly so where 

the common arrangements are of recent origin or show signs of being a speculative venture. Moreover, such common ownership may itself raise problems 

under the antitrust laws.

However, when the history of common management of merging banks goes 

back to the organization of the second bank, such organization may be similar 

to the establishment of a de novo branch by the first bank. In the present circumstances, it does not appear that the proposed merger, which would make 

State Bank an actual branch of Community Bank, would eliminate any meaningful competition between the two banks.

B asis fo r C o rp o ra tio n approval, F eb ru a ry 27, 1969

Community Bank of Linden, Linden, New Jersey (Applicant), an insured 

State nonmember bank with total deposits of $29,413,000, has applied, pursuant to Section 18(c) and other provisions of the Federal Deposit Insurance 

Act, for the Corporation’s prior approval to merge with State Bank of Rahway, 

Rahway, New Jersey (State Bank), which has total deposits of $15,612,000. 

The banks would merge under the charter of Applicant and with the title 

“ Community State Bank & Trust Company"; and, as an incident to the merger, 

the two offices of State Bank would become branches of Applicant, increasing 

the number of its offices to five.

Competition. Linden (population 39,900) and Rahway (population 27,700) 

are contiguous communities located in the southeastern part of Union County,

1 New Jersey Statutes Annotated §17: 9A-19. This provision has just been amended

to provide only home office protection against de novo branching. Assembly Bill No 677

(1968).

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BANK ABSORPTIONS APPROVED BY THE CORPORATION 39

which is part of the Newark SMSA as well as the New York-Northeastern New 

Jersey Standard Consolidated Area, which had a population of 14,759,400 in 

1960. The farthest distance between offices of the participating banks is 2.75 

miles and the shortest distance between offices is 1.5 miles. The trade areas 

served by the participating banks overlap to some extent, but the number of 

common customers is not significant.

Applicant could not branch de novo into Rahway; so, at the request of 

Rahway residents, five directors of Applicant organized State Bank. Since the 

organization of State Bank in 1959 a major portion of Applicant's stock has 

been held by the same individuals who also hold a major portion of State 

Bank’s stock. Originally, five of State Bank's nine directors were also directors 

of Applicant, and top management of the participating banks has been the 

same since State Bank was organized. The policies of the participating banks 

are the same, and the offices of State Bank are operated more like offices of 

Applicant than as an independent competitive bank.

There has recently been a change in the branching law in the State of New 

Jersey, which will become effective in 6 months. Under the new law the State 

is divided into three regions and each bank can legally establish de novo 

branches anywhere within the district, except for those municipalities wherein 

the main office of a bank is located. Consummation of this proposal would 

open Rahway to de novo branching by all of the banks located in the second 

district.

The resulting bank would have five of the 20 commercial banking offices in 

its trade area, and it would rank second with 27.1 percent of the IPC deposits. 

In addition to the participating banks there are seven commercial banks operating offices in the resulting bank’s trade area. Of these seven, three are more 

than twice the size of the resulting bank. The largest bank operating in the 

resulting bank's trade area had total IPC deposits of over $161 million as of 

June 29, 1968, and it has two offices in Rahway and 16.8 percent of the IPC 

deposits in the resulting bank's trade area. The second largest bank operating 

in the resulting bank’s trade area had total IPC deposits of over $160 million 

as of June 29, 1968, and it has three offices in Linden and 29.6 percent of 

the IPC deposits in the resulting bank’s trade area.

In view of the common stockholders and management, there is very little, if 

any, direct competition, between the participating banks, which would be eliminated by this proposal; and while it is possible that the participating banks 

could become competitive sometime in the future, this is not regarded as a 

likely prospect. This proposal should enable the resulting bank to compete 

more effectively with the much larger institutions operating in the area.

The Board of Directors is of the opinion that the proposed merger would not 

substantially lessen competition, tend to create a monopoly, or in any other 

manner be in restraint of trade.

Financial and Managerial Resources and Prospects. These factors have been 

favorable with respect to the merging banks and are so projected for the resulting bank.

Convenience and Needs of the Community to be Served. The increased lending limit would be of benefit to customers of both merging banks, which are 

located in an economically expanding area. The resulting bank would also offer 

longer banking hours and the services of a trust department, which the participating banks do not now have.

On the basis of the above information and other information available to the 

Corporation, the Board of Directors has concluded that the approval of the 

bank's application is warranted.

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

Resources

/ 1 n

B anking Offices

No. 3 thousands

of dollars)

In

operation

To be

operated

The Barberton State Bank

Barberton, Ohio 

(change title to The American 

Bank of Commerce) 

to acquire the assets and assume the

deposit liabilities of

6,585 1 15

Evans Savings Association 

Akron

169,323 14

S u m m a ry re p o rt by A tto rn e y G eneral, A p ril 5, 1968 

Evans' competition with Barberton Bank, as well as with other commercial 

banks in the Akron metropolitan area, is limited to time accounts and loans. It 

is the second largest of eleven competing savings organizations.

Barberton's share of time and savings deposits in the market amounts to 

less than one percent. The proposed acquisition might eliminate some limited 

degree of competition between Evans and Barberton with respect to time 

deposits and mortgage loans, but it does not appear that the impact would be 

appreciable within either Akron, Ohio, or Summit County.

We do not consider that this proposed merger would have any important 

effect upon competition within the area.

B asis fo r C o rp o ra tio n approval, F e b ru a ry 27, 1969 

The Barberton State Bank, Barberton, Ohio (Applicant), an insured State 

nonmember bank with total deposits of $5 million, has applied, pursuant to 

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

the Corporation’s prior consent to acquire the assets of and assume liability to 

pay deposits made in Evans Savings Association, Akron, Ohio (Evans), a State 

stock building and loan association which is a member of the FSLIC and Federal Home Loan Bank and which has total deposits of $152 million. The transaction would be effected under Applicant's charter and with the title ‘The 

American Bank of Commerce"; and, as an incident thereto, Applicant's main 

and only office would be moved to Evans’ main office location, and Applicant's 

office and Evans’ 13 branches would become branches of the resulting bank.

Competition Applicant’s sole office is in Barberton (population 33,800), 6.5 

miles from Evans' main office in Akron, (population 290,000). Applicant’s service area is Barberton and vicinity and is entirely within Evans’ service area of 

Summit County. Their closest offices are 2.75 miles apart. The participating 

institutions are competitive with each other only for time and savings deposits 

and mortgage loans, and the degree of competition between them for that type 

of business is limited. Applicant has relatively few mortgage loans and the 

smallest proportion of time and savings deposits in the area. Moreover, it is 

experiencing severe asset and management problems and is an ineffective 

competitor.

Applicant is the smallest bank in the service area, and Evans is the second 

largest savings association. The proposal would introduce a new bank into 

Akron, which would be fourth largest of five banks headquartered there. Applicant presently competes in Barberton with two offices of the county's largest 

bank, which has deposits of over $400 million. The significant increase in

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Federal Reserve Bank of St. Louis
BANK ABSORPTIONS APPROVED BY THE CORPORATION 41

Applicant’s size would have no adverse competitive effects in Barberton. The 

conversion of Evans' 14 offices to commercial bank offices should tend to 

stimulate banking competition in Akron and throughout Summit County.

The Board of Directors is of the opinion that the effect of the proposed purchase and assumption transaction would not be substantially to lessen competition, tend to create a monopoly, or in any other manner be in restraint of 

trade.

Financial and Managerial Resources, Future Prospects, and Convenience and

Needs of the Community to be Served. These factors are favorable with 

respect to Evans and are so projected for the resulting bank. The proposal 

would eliminate a small commercial bank with severe asset and managerial 

problems. The convenience and needs of Summit County would be more adequately met by the addition of the services of another commercial bank to 

Akron and 14 bank offices to the county.

On the basis of the information presented and other information available to 

the Corporation, the Board of Directors has concluded that approval of the 

bank's application is warranted.

Resources B anking Offices

No. 4

(in

thousands

of dollars)

1 n

operation

To be

operated

Elk County Bank and Trust Company

St. Marys, Pennsylvania 

to merge with

21,067 3 4

The Saint Marys National Bank

St. Marys

15,495 1

S u m m a ry re p o rt by A tto rn e y G eneral, Ja n u a ry 16, 1969 

In these circumstances, where the two merging banks have been subject to 

common control since the second bank was organized, we conclude that the 

proposed merger would have no significant effect on competition.

B asis fo r C o rp o ra tio n approval, F e b ru a ry 27, 1969 

Elk County Bank and Trust Company, St. Marys, Pennsylvania, an insured 

State nonmember bank with total deposits of $19,056,000, has applied, pursuant to Section 18(c) and other provisions of the Federal Deposit Insurance 

Act, for the Corporation's prior approval to merge with The Saint Marys 

National Bank, also of St. Marys, which has total deposits of $13,010,000. The 

banks would merge under the charter and with the title of the applicant. Saint 

Marys has permission to open a branch, and the applicant has requested that 

it be permitted to establish this de novo branch, which would increase the 

number of its offices to four.

Competition. The two banks have been owned and operated by the same 

families since their organization, and they do not compete with each other. 

The only discernible effects on competition are that the resulting bank would 

build a modern plant, enabling it to compete more effectively in the twocounty service area, and that the elimination of one bank and its name might 

make the area more attractive for an out-of-town bank to establish a branch. 

Other than these, the proposal would eliminate a legal technicality and, of 

course, separate FDIC insurance coverage of depositors in both banks.

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

The Board of Directors is of the opinion that the proposed merger would not 

substantially lessen competition, tend to create a monopoly, or in any other 

manner be in restraint of trade.

Financial and Managerial Resources and Future Prospects. These factors 

have been favorable with respect to the merging banks and are so projected 

for the resulting bank. Future deposit growth is expected to be inhibited during 

the period of conversion from the present antiquated buildings to a modern, 

efficient building, and then to resume a normal pace. Present cramped conditions are not conducive to real growth. The buildings are adjacent and will be 

replaced, in two stages, by one new building.

Convenience and Needs of the Community to be Served. Modern quarters 

would serve the convenience and needs of the customers at the main office, 

who sometimes have to stand in the rain while waiting their turn at a window, 

and who have to stand while discussing loans and other business. The 

increased lending limit would be of benefit to customers throughout the service area: Elks County (population 38,000) and Cameron County (population 

8,000). Branch service would be continued as at present; and one more 

branch would be opened, as presently scheduled.

Another aim of the proponents is, by building a new and modern banking 

house, to make more attractive the small and somewhat shabby business 

center of the town of St. Marys.

On the basis of the above information and other information available to the 

Corporation, the Board of Directors has concluded that approval of the bank’s 

application is warranted.

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Commonwealth Bank and Trust Company

Wellsboro, Pennsylvania 

to merge with

20,365 4 5

The Citizens National Bank of Muncy

Muncy

6,142 1

S u m m a ry re p o rt by A tto rn e y G eneral, O cto b e r 31, 1968

The two banks serve different, widely spread, geographic areas and there are 

several banks in the intervening area. Thus, there does not seem to be any 

existing competition which could be eliminated by this merger.

Under Pennsylvania law, either bank could branch de novo into the service 

area of the other. In Lycoming County, there were, as of June 30, 1966, 13 

commercial banks operating 17 offices and holding total deposits of $161 million. At that time, Muncy Bank had about 3 percent of total county deposits; 

three banks headquartered in Williamsport accounted for more than 50 percent 

of such deposits.

The proposed merger would eliminate Commonwealth Bank, the largest bank 

in Tioga County, as a potential competitor by de novo entry into Lycoming 

County. However, besides the three banks in Williamsport, there are at least 

three other banks larger than Commonwealth Bank which can also legally 

branch de novo into Muncy and Lycoming County.

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Federal Reserve Bank of St. Louis
BANK ABSORPTIONS APPROVED BY THE CORPORATION 43

B asis fo r C o rp o ra tio n approval, F e b ru a ry 27, 1969

Commonwealth Bank and Trust Company, Wellsboro, Pennsylvania (Applicant), an insured State nonmember bank with total deposits of $17,884,000, 

has applied, pursuant to Section 18(c) and other provisions of the Federal 

Deposit Insurance Act, for the Corporation's prior approval to merge with The 

Citizens National Bank of Muncy, Muncy, Pennsylvania, which has total deposits of $5,590,000. The banks would merge with the title and under the charter 

of Applicant. The main office would be at Muncy; the present main office at 

Wellsboro would be operated as a branch, together with presently existing 

branches and one drive-up facility approved but not yet in operation. The 

Muncy bank has no branches.

Competition. The two banks operate in completely separate areas and do 

not compete with each other. The only apparent impact on competition would 

appear to be the shift from a $6 million bank to a $27 million bank with headquarters in Lycoming County, a service area of approximately 109,000 people, 

including the city of Williamsport. This shift should positively stimulate competition in that area. It would also enable the resulting bank to branch into 10 

adjacent counties, if it so chose, instead of four. Meanwhile, at the branch in 

Wellsboro (formerly the main office), there is no reason to expect any diminution of competition or service to that area, which comprises approximately 

35,000 people in Tioga County and the eastern third, more or less, of Potter 

County.

The Board of Directors is of the opinion that the proposed merger would not 

lessen competition, tend to create a monopoly, or in any other manner be in 

restraint of trade.

Financial and Managerial Resources and Future Prospects. Both banks are 

sound and well-managed institutions, with no problems of consequence. Neither has a management succession problem. Capitalization is considered adequate, and earnings have been at reasonable levels. It is expected that the 

resulting bank will continue the patterns of growth, profitability, and retention 

of earnings adequate to margin growth. It is anticipated that growth will be 

stimulated by the proposed merger, but not so drastically as to put great pressure on the margin of capital protection. By greater diversification of its economic and geographic base, Applicant should become a stronger bank, less 

vulnerable to adversity in one or two industries.

Convenience and Needs of the Communities to be Served. Applicant was 

formed in 1965, when national banks in Galeton, Lawrence, and Westfield were 

merged into the Tioga County Savings and Trust Company and continued as 

branches of the bank under its present name. Applicant plans to relocate the 

Galeton branch and establish a drive-up facility in Wellsboro. Since that 

merger, deposits have risen from $15,950,000 (1965 average) to $16,920,000 

(for 1966). They decreased to $16,898,000 (average for 1967), attributable almost entirely to a decrease in public funds. It appears patent that the institution 

has been serving the needs of the community, and logical that it will continue 

to do so, even though the present main office will become a branch.

The Muncy bank was organized in 1886 and has operated successfully since 

then. Although it has no branches, its deposits have increased over 20 percent 

over the same 3-year period: from $4,155,000 to $5,054,000. Evidently it has 

been of service to the convenience and needs of the community. With the 

advent of a management familiar with branching, it is not unlikely that the 

resulting bank will provide even more service to the community (Lycoming 

County), possibly including branches there or in adjoining counties.

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

On the basis of the above information and other information available to the 

Corporation, the Board of Directors has concluded that approval of the application is warranted.

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The Winchester Bank Company

Winchester, Ohio

(change title to The First State Bank of 

Adams County) 

to consolidate with

4,689 2 3

The Bank of Manchester Company

Manchester

2,543 1

S u m m a ry re p o rt by A tto rn e y G eneral, N o ve m b e r 29, 1968 

Winchester (population 1,600) and Manchester (population 2,200), 20 miles 

to the south, are both located in Adams County in an area which is principally 

agricultural.

Only one bank operates in Winchester and two banks operate in Manchester: 

Manchester Bank and the Farmers Bank of Manchester (total deposits, $1.7 

million); there is one intervening bank about half way between Manchester and 

Winchester at West Union. Because of the distance separating the merging 

banks, their small size, and the presence of an intervening bank, it is doubtful 

that the merging banks compete with one another to any significant extent.

Although Ohio law would permit each of the consolidating banks to open a 

de novo branch in the town where the other's office is located, it is doubtful 

that this right would be exercised because of the small size of the banks as 

well as of the towns involved.

B asis fo r C o rp o ra tio n approval, M arch 12, 1969 

The Winchester Bank Company, Winchester, Ohio (Applicant), an insured 

State nonmember bank with total deposits of about $4.3 million, has applied, 

pursuant to Section 18(c) and other provisions of the Federal Deposit Insurance Act, for the Corporation's prior approval to consolidate with The Bank of 

Manchester Company, Manchester, Ohio (Manchester Bank), also an insured 

State nonmember bank, which has total deposits of about $2.3 million. The 

banks would consolidate under the charter of Applicant and with the title “ The 

First State Bank of Adams County"; and, as an incident thereof, the sole 

office of Manchester Bank would become a branch of the resulting bank, 

increasing the total number of offices to three.

Competition. The participating banks are in Adams County (population about 

19,500), which is located in southwestern Ohio and borders on the Ohio River. 

Applicant's service area is the northwestern corner of Adams County, but it 

includes small portions of Highland and Brown Counties. Manchester Bank's 

service area extends for about 5 miles in all directions from the village of Manchester, except to the south, where the Ohio River is an effective barrier. Competition between the participating banks is virtually nonexistent. Their service 

areas are separate and distinct; their closest offices are separated by 20 miles 

of rural territory; and there is only a nominal volume of business derived by 

each bank from the service area of the other. Furthermore, the potential for 

competition to increase is slight.

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BANK ABSORPTIONS APPROVED BY THE CORPORATION 45

The proposal would unite the two smallest of the four small banks in Adams 

County to form the second largest bank, but all three of the remaining banks 

would be similar in size, so that the effect on concentration would not be significant.

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

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

other manner be in restraint of trade.

Financial and Managerial Resources and Future Prospects. The banking factors are considered satisfactory with respect to the individual participating 

banks, as they are with respect to the resulting bank.

Convenience and Needs of the Community to be Served. The principal effect 

of this proposal appears to be having three, rather than four, banks of comparable size competing in the limited Adams County market; two of these banks 

are now significantly smaller than the others. In addition, an increased lending 

limit would be made available locally to the communities served by the subject 

banks.

Based on the foregoing and on other information available to the Corporation, the Board of Directors has concluded that approval of the bank's application is warranted.

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California Canadian Bank

San Francisco, California 

to purchase the assets and assume

the deposit liabilities of

92,756 8 10

City Bank of San Diego

San Diego

18,566 2

S u m m a ry re p o rt by A tto rn e y G eneral, Ja n u a ry 28, 1969 

California Canadian Bank maintains its head office and two branches in San 

Francisco, and five additional branches, located in all the principal counties of 

California except San Diego County. City Bank of San Diego has its main office 

and two branches in San Diego.

The closest branches of the merging banks are one hundred ten miles apart, 

with a multitude of other banks in the intervening area. Therefore, the proposed merger would not appear to eliminate any significant amount of existing 

competition between the two banks.

Since California law permits statewide branch banking, CCB could legally 

branch de novo into San Diego County. CCB has demonstrated some propensity for internal expansion by establishing six new branch offices since 1965. 

CCB is not, however, one of the most likely entrants into the San Diego 

market. There are numerous banks larger than CCB that are not yet operating 

in San Diego including the nation’s eleventh and twelfth largest commercial 

banks, each with deposits of over $3.5 billion.

B asis fo r C o rp o ra tio n approval, M arch 27, 1969 

California Canadian Bank, San Francisco, California (Applicant), an insured 

State nonmember bank with total deposits of $80,314,000, has applied, pursuant to Section 18(c) and other provisions of the Federal Deposit Insurance 

Act, for the Corporation’s prior approval to purchase the assets and assume

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

the liabilities of City Bank of San Diego, San Diego, California (City Bank), 

which has total deposits of $16,267,000. The two offices of City Bank would 

become branches of Applicant. City Bank also has permission to establish a 

third office. Applicant has requested that it be permitted to establish this de 

novo branch, which would increase the number of its offices to 11.

Competition. San Francisco (population 786,000) is 522 miles north of San 

Diego (population 660,000). Applicant's branch in Los Angeles is 110 miles 

north of San Diego. These are the three largest cities on the west coast of the 

United States. Numerous offices of other banks intervene between Los Angeles 

and San Diego. There is no competition between the two banks.

California banking is dominated by several statewide banks, notably Bank of 

America, N.T. and S.A., which holds 43 percent of deposits and loans. Applicant would hold 0.2 percent of both deposits and loans after consummation of 

the proposed transaction. It has been holding a decreasing share of the 

market for many years. By establishing branches in San Diego, it hopes to 

regain its former position in California banking. In the six counties in which 

the two banks operate, Applicant holds 0.3 percent of total deposits. City bank 

holds 0.9 percent in San Diego County and an insignificant percentage in the 

six counties. Senior officials of banks in San Diego were in general agreement 

that the proposed transaction would stimulate competition in that market. It 

would have no measurable effect in the Los Angeles or San Francisco Bay 

areas.

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

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

other manner be in restraint of trade.

Financial and Managerial Resources and Prospects. These factors have been 

favorable with respect to the two banks and are so projected for the resulting 

bank.

Convenience and Needs of the Communities to be Served. The increased 

lending limits would be of benefit to customers of both banks, which are 

located in economically expanding areas. The proposal would introduce trust 

services in the San Diego operation, which does not now offer them.

On the basis of the above information and other information available to the 

Corporation, the Board of Directors has concluded that the approval of the 

bank’s application is warranted.

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Continental Bank and Trust Company

Norristown, Pennsylvania 

to merge with

501,096 42 54

The Merchants National Bank

of Allentown

Allentown

154,601 12

S u m m a ry re p o rt by A tto rn e y G eneral, J a n u a ry 16, 1969 

Allentown (1960 population 108,000), located about fifty miles north-northwest of Philadelphia, is the principal city in Lehigh County, Pennsylvania. Bethlehem (1960 population 75,000), located partly in Lehigh County and partly in 

Northampton County, is contiguous to Allentown on the east. Continental operDigitized for FRASER 

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Federal Reserve Bank of St. Louis
BANK ABSORPTIONS APPROVED BY THE CORPORATION 47

ates no offices in Lehigh County. The closest offices of the two banks are 

approximately 20 miles apart, with several banks in the intervening area. However, there appears to be some competition between them, especially for larger 

deposits and loans.

As of June 30, 1968, there were five banks headquartered in the AllentownBethlehem market and six smaller banks, each with total deposits of less than 

$20 million, headquartered elsewhere in Lehigh County. In terms of total 

deposits, Merchants National is the second largest bank operating in the Allentown-Bethlehem market and the third largest operating in Lehigh County. In 

the Allentown-Bethlehem market as of June 30, 1966, Merchants National had 

the third largest share, or about 20 percent, of IPC deposits, and three banks 

had about 70 percent of such deposits. In Lehigh County, as of the same 

date, Merchants National had the second largest share, or about 27 percent of 

IPC deposits.

Pennsylvania law permits de novo branching by a commercial bank into all 

counties which are contiguous to the county in which the bank's head office is 

located. Since Montgomery County is contiguous to Lehigh County, Continental 

could be permitted to branch de novo into Lehigh County and into Allentown. 

Most of the other large banks which operate in the Philadelphia four county 

area are headquartered in Philadelphia County, which is not contiguous to 

Lehigh, and thus may not branch into Lehigh County. Continental is the largest bank which can legally branch into Lehigh County. Moreover, it has been 

active in de novo branching in recent years, having opened six new offices 

since 1965, received approval for a seventh, and applied for approval for an 

eighth. Thus, it appears that Continental is the most likely potential de novo

entrant into both Lehigh County and the Allentown-Bethlehem market.

The application states that Continental was recently denied permission by 

the Pennsylvania Department of Banking to establish a de novo branch in 

Lehigh County. However, given the prospects for growth in Allentown and 

nearby Lehigh County as well as Continental's demonstrated desire to branch 

de novo into the area, we believe that conditions will ultimately permit such 

action by Continental. Moreover, even if de novo entry by Continental were not 

possible, the proposed merger would foreclose the possibility of entry by Continental by means of a merger with one of the small banks in the area.

The proposed merger would combine the most likely entrant into the large 

and concentrated Allentown-Bethlehem and Lehigh County markets, either by 

de novo branching or through merger with a small bank in Lehigh County, with 

the second largest competitor there. Accordingly, it is our view that the proposed merger would have a significantly adverse effect on competition.

B asis fo r C o rp o ra tio n approval, M arch 27, 1969

Continental Bank and Trust Company, Norristown, Pennsylvania (Applicant), 

an insured nonmember bank with total deposits of $435,240,000, has applied, 

pursuant to Section 18(c) and other provisions of the Federal Deposit Insurance Act, for the Corporation's prior approval to merge with The Merchants 

National Bank of Allentown, Allentown, Pennsylvania (Merchants), which has 

total deposits of $132,453,000. The banks would merge under the charter and 

with the title of Applicant; and, as an incident to the merger, the 12 offices of 

Merchants would become branches of Applicant, increasing the number of its 

offices to 54.

Competition. The service area of Applicant, of which the population is estimated at 2,300,000, is essentially Philadelphia and southeastern Pennsylvania. 

Of Applicant's 42 offices, 21 are in Philadelphia. The city of Philadelphia and

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

the surrounding area are heavily industrialized with diversified activity, extensive commercial services, port facilities, and an expanding residential population. The economy in the communities in the surrounding counties (Montgomery, Chester, and Delaware) where Applicant presently has branches, for the 

most part, is geared to the economy of the greater Philadelphia area.

The service area of Merchants is confined to Lehigh County and the southern portion of Northampton County, including the city of Bethlehem, which 

occupies a portion of both counties. Lehigh County is contiguous to Montgomery County on the north and the merger would expand Applicant's primary 

service area to this region. The population of Merchants’ service area is estimated at 525,000. Allentown is a heavily industrialized community, part of the 

Allentown-Bethlehem area which has experienced substantial population growth 

in recent years.

The main offices of the participating banks are 47 miles apart, and the shortest distance between offices is the 28 miles separating Applicant's office at 

Hatfield and Merchants' office at Emmaus. The two banks operate in separate 

market areas with several other commercial banking offices in the intervening 

area, and there is very little, if any, competition between them. Moreover, 

there seems to be little potential for competition. Merchants has shown no 

inclination to expand beyond the two counties it presently serves, and in 1968 

the State Authority denied Applicant permission to establish a de novo branch 

in Allentown. For these and other reasons, elimination of potential competition 

is not considered a realistic objection to this proposal.

Applicant is the sixth largest commercial bank in its trade area, as measured in terms of IPC deposits, and this proposal would not change that position. Two commercial banks and one mutual savings bank headquartered in 

Philadelphia have IPC deposits of over $1 billion. With respect to this market 

area, the merger would have no significant effect on competition. Any competitive effects would occur in the service area of Merchants, where it ranks fourth 

in terms of IPC deposits. The resulting bank would be the largest bank operating rn the Allentown area; however, this proposal would not intensify the concentration in the service area of Merchants nor would it reduce the number of 

banking alternatives. The primary trade area of the resulting bank would be 

the six counties where its offices would be located plus small portions of some 

adjacent counties. Within this trade area the resulting bank would have only 

6.1 percent of the IPC deposits and five other commercial banks would have a 

greater share of the market. The merger should tend to increase competition 

in the area now served by Merchants.

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

in restraint of trade.

Financial and Managerial Resources and Future Prospects. Financial and 

managerial resources are satisfactory with respect to both participating banks 

and are so projected for the resulting bank. The earnings record of Merchants 

has not been as good as Applicant’s; and the future prospects of Merchants, as 

a part of the resulting bank, would be enhanced. Future prospects of the 

resulting bank are favorable.

Convenience and Needs of the Community to be Served. As a result of the 

merger, the Allentown-Bethlehem area would gain the advantage of a bank 

with a larger lending limit than any now available in the area. The resulting 

bank would have a lending limit of more than $3 million higher than Merchants' present lending limit. This proposal would not significantly benefit the 

trade area served by Applicant, but it would permit the resulting bank to fill

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

the need for larger amounts of credit in the Allentown area and also provide 

additional conveniences for that area. Additionally, the availability of a local 

bank with branches in Philadelphia would be of some service.

Based on the foregoing and other information available to the Corporation, 

the Board of Directors has concluded that approval of the application is warranted.

No. 9

Resources

(in

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B anking Offices

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operation

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operated

United Bank of Arizona 105,512 12 13

Phoenix, Arizona

to acquire the assets and

assume the deposit liabilities of

Bank of Yuma 6,671 1

Yuma

S u m m a ry re p o rt by A tto rn e y G eneral, Ja n u a ry 16, 1969 

The United Bank of Arizona (“ United Bank") which resulted from a merger 

in January, 1968, of four central Arizona banks, operates its main office and 

four of its branch offices in Phoenix, and seven additional branch offices within 

a radius of 40 miles from Phoenix.

The closest offices of the merging banks are 177 miles apart. Thus it 

appears that there is little if any existing competition between them which 

would be eliminated by the merger.

Arizona law permits statewide de novo branching. United Bank could, therefore, be permitted to establish a de novo branch in Yuma or any other town or 

city in Yuma County.

Yuma Bank, with about 10 percent of total Yuma County commercial bank 

deposits, is the smallest of four banks operating in the county. It competes 

directly with branches of the three largest banks in the state, with total deposits of $1.1 billion, $675 million, and $292 million, respectively.

B asis fo r C o rp o ra tio n approval, A p ril 3, 1969 

United Bank of Arizona, Phoenix, Arizona (Applicant), an insured State nonmember bank with total deposits of $92,201,000, has applied, pursuant to 

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

the Corporation's prior approval to purchase assets and assume the liability 

for deposits of Bank of Yuma, Yuma, Arizona (Yuma), which has total deposits 

of $5,793,000. The resulting bank would operate under the charter and with 

the title of Applicant; and, as an incident to the transaction, the one office of 

Yuma would become a branch of Applicant, increasing the number of its 

offices to 13.

Competition. The shortest distance between offices of the participating 

banks is 177 miles, and each serves a separate and distinct trade area. Applicant’s primary trade area is the Phoenix SMSA, which had a population of 

663,500 in 1960. Yuma is located in the extreme southwestern corner of the 

State and serves a trade area with an estimated population of 40,000. There is

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50 FEDERAL DEPOSIT INSURANCE CORPORATION

virtually no competition between the participating banks. Both banks are in 

direct competition with the largest banks in Arizona. The resulting bank will 

hold only 3.8 percent and 4.0 percent of the deposits and loans, respectively, 

of banks in the State of Arizona.

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

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

manner be in restraint of trade.

Financial and Managerial Resources and Future Prospects. Financial and 

managerial resources of the participating banks are adequate, as they would 

be for the resulting bank. Earnings of both Applicant and Yuma have not been 

impressive, but the future prospects of the resulting bank are favorable.

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

transaction would have no appreciable effect in Applicant's present trade area, 

but it would enable the resulting bank to better serve the convenience and 

needs in the Yuma area. A major benefit to the Yuma area would be the larger 

lending limit, and there would also be an increase in services, including trust 

and computer facilities.

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

that approval of the application is warranted.

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New Hampshire Savings Bank

Concord, New Hampshire 

to merge with

97,454 3 4

Pittsfield Savings Bank

Pittsfield

3,734 1

S u m m a ry re p o rt by A tto rn e y G eneral, J u ly 29, 19 6 8

New Hampshire Savings Bank operates two offices in Concord and one in 

Contoocook, 11 miles to the west. Pittsfield Savings Bank operates its only 

office 13 miles east of Concord. All offices of both the merging banks are 

located in lower Merrimack County, New Hampshire, (1960 population, 

67,785), which is largely rural in nature.

The closest offices of the two merging banks are 13 miles apart, with no 

intervening banking offices, and the two banks have a substantial number of 

common deposit and loan accounts. Thus, the proposed merger would eliminate direct competition between the two banks.

New Hampshire Savings is the largest of five savings banks in the county, 

holding about 50 percent of total deposits of the savings banks, while Pittsfield Savings is the smallest accounting for about 1.9 percent of such deposits. When the market shares are adjusted to include time deposits of the six 

commercial banks operating in the county, the resulting bank would still control almost half the total time deposits.

The proposed merger would eliminate existing competition between New 

Hampshire Savings and Pittsfield Savings and enhance the dominant position 

of New Hampshire Savings, both in Merrimack County as a whole and in the

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BANK ABSORPTIONS APPROVED BY THE CORPORATION 51

lower portion of that county where both banks have all their offices. The effect 

of this merger on competition would be substantially adverse.

B asis fo r C o rp o ra tio n approval, A p ril 11, 1969

New Hampshire Savings Bank, Concord, New Hampshire (Applicant), an 

insured mutual savings bank with total deposits of $85,777,000, has applied, 

pursuant to Section 18(c) and other provisions of the Federal Deposit Insurance Act, for the Corporation's prior approval to merge with Pittsfield Savings 

Bank, Pittsfield, New Hampshire (Pittsfield Savings), which has total deposits 

of $3,348,000. The banks would merge under the charter and with the title of 

Applicant; and, as an incident to the merger, the main and only office of Pittsfield Savings would become a branch of Applicant, increasing the number of 

its offices to four.

Competition. Applicant is headquartered in Concord, which has a population 

of 29,000. It operates one branch in Concord and one in Contoocook Village, 

all located in the south-central part of the State. The only office operated by 

Pittsfield Savings is situated in Pittsfield, which has a population of 2,400 and 

is located 17 road miles northeast from Concord. The merging banks' closest 

offices are 16 road miles apart.

In Concord, there are two other savings banks with IPC deposits totaling 

$38.6 million and $28.9 million, as well as two commercial banks. Manchester, 

the largest city in New Hampshire, is located 18 miles south of Concord via 

Interstate Highway 93 and contains the State’s two largest mutual savings banks, 

with IPC deposits totaling $172.5 million and $118.5 million, some of which 

originate in the Pittsfield area. There is one other bank in Pittsfield, a small 

commercial bank presently affiliated with the merging banks. As a condition to 

the approval of the instant merger, this affiliation will be terminated.

Pittsfield Savings’ small size, restrictive loan policy, inability to keep pace 

with sharply increased interest rates paid on savings deposits in Concord and 

Manchester, dormant management situation, and incapacity to acquire the 

services of a qualified executive officer, strongly suggest that it cannot effectively compete in its service area. Although Applicant has some business in 

Pittsfield, Pittsfield Savings has almost none in Concord. As a result of the 

merger, a small unit bank would be replaced by a branch of the larger Applicant, which would provide substantial benefits to the Pittsfield community.

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

merger would not be substantially to lessen competition, tend to create a 

monopoly, or in any other manner be in restraint of trade. Any anticompetitive 

effects resulting from the merger would clearly be outweighed in the public 

interest by the probable effect of the transaction in meeting the convenience 

and needs of the community to be served. The customers at Pittsfield Savings 

would immediately benefit from: 1. an increase in the rate of interest paid on 

their savings accounts (from 4.5 percent to 5 percent); 2. a higher legal lending limit; 3. extended banking hours; and 4. more varied services. Modern 

banking quarters and facilities to include a community room would be provided 

to replace the present structure, built in 1876. Moreover, terminating the 

affiliation of the merging banks with the commercial bank in Pittsfield, as 

required as a condition to approval of the merger, would result in the latter’s 

independent status and encouragement to offer full financial services, including 

facilities for savings deposits (which it has hitherto refrained from accepting).

Financial and Managerial Resources and Future Prospects. These factors are 

favorable with respect to Applicant and are so projected for the resulting bank. 

Management at Pittsfield Savings is aging and lacks depth; its chief executive

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

died in February 1967 and a qualified replacement has not been found. The 

bank’s future prospects are dim.

Convenience and Needs of the Community to be Served. There would be 

little change in Concord as a result of the merger. Most significant would be 

the expanded services to be offered by the resultant branch bank in Pittsfield, 

as just described, together with granting the commercial bank a better basis to 

become more competitive and thus better serve the public.

On the basis of the above information, the Board of Directors has concluded 

that approval of the bank's application is warranted.

Resources B anking Offices

No. 11

un

thousands

of dollars)

In

operation

To be

operated

First Valley Bank

Bethlehem, Pennsylvania 

(in organization) 

to merge with

The First National Bank and Trust

7

Company of Bethlehem

Bethlehem

129,895 7

S u m m a ry re p o rt by A tto rn e y G eneral, Ja n u a ry 16, 1969 

The merger is part of a transaction which will result in a presently existing 

bank becoming a subsidiary of a one-bank holding company. Thus, the merger 

is merely part of a corporate reorganization and as such will have no effect on 

competition.

B asis fo r C o rp o ra tio n approval, A p ril 11, 1969 

Pursuant to Sections 5 and 18(c) and other provisions of the Federal 

Deposit Insurance Act, applications have been filed for Federal deposit insurance for First Valley Bank, Bethlehem, Pennsylvania (Valley Bank), a proposed 

new bank in organization, and for consent to the merger of The First National 

Bank and Trust Company of Bethlehem, Bethlehem, Pennsylvania (National), 

which has total resources of $130 million, and Valley Bank, under the latter's 

charter and with its title. The resulting bank will operate from the seven existing locations and two approved but unopened branches of National.

The proposal involves the formation of a one-bank holding company to hold 

stock ownership of National, which will convert to an insured State nonmember bank through the simultaneous new bank formation and merger. The new 

bank (Valley Bank) will not be in operation as a commercial bank prior to the 

merger and will begin business at the present locations of National with the 

latter's assets, liabilities, capital, and management.

Bethlehem is located in eastern Pennsylvania between Allentown and Easton, 

and the three cities comprise the Lehigh Valley market area. The 1960 population of Bethlehem was 75,400. The economy, largely dominated by Bethlehem 

Steel Corporation, is dependent upon industrial activities, which provide substantial employment not only for local residents but for many persons who 

commute considerable distances. In addition to National, there are six other

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Federal Reserve Bank of St. Louis
BANK ABSORPTIONS APPROVED BY THE CORPORATION 53

commercial banks, in the three-city area, operating multiple branch systems 

and holding total deposits in excess of $570 million. The proposed merger, of 

itself, would have no effect on competition. All factors required to be considered relative to each application are favorably resolved.

On the basis of the above information, the Board of Directors has concluded 

that approval of the applications for Federal deposit insurance and consent to 

merge is warranted.

No. 12

Resources

(in

thousands

of dollars)

B anking Offices

In

operation

To be

operated

Pioneer Bank of Arizona 59,535 1 0 1 0

Phoenix, Arizona

to merge with

Westam, Inc. — —

Phoenix

S u m m a ry re p o rt by A tto rn e y G eneral, F eb ru a ry 12, 1969 

[This proposal] is part of a transaction which will result in a presently existing bank becoming a wholly owned subsidiary of a one-bank holding company. 

Thus, [this] merger is merely part of a corporate reorganization and as such 

will have no effect on competition.

B asis fo r C o rp o ra tio n approval, A p ril 24, 1969 

Pioneer Bank of Arizona, Phoenix, Arizona (Pioneer), an insured nonmember 

bank with total deposits of $53 million, has applied, pursuant to the provisions 

of Section 18(c)(1)(A) of the Federal Deposit Insurance Act, for the Corporation's prior consent to merge under its charter and with its title with Westam, 

Inc., Phoenix, Arizona, a nonbanking corporation formed for the sole purpose 

of facilitating the formation of a one-bank holding company to own Pioneer.

Pioneer, the only operating bank involved in this proposal, presently operates its main office and seven branches in Phoenix and one branch each in 

Prescott and Scottsdale. Additionally, it has approval to establish a branch in 

Sun City, which is not yet in operation. The merger, of itself, will not change 

the number of offices or the services presently provided by Pioneer, which will 

continue operations at the same locations and with the same assets, liabilities, 

capital, and management.

Phoenix, the State capital and seat of Maricopa County, is located in southcentral Arizona. It is by far the largest city in the State, having a current estimated population of 525,000. Both the population and economy have 

expanded substantially in recent years. The economy, which for many years 

depended almost entirely on agriculture and tourism, now is oriented more to 

industrial activity, which in 1966 accounted for about 43 percent of total personal income of $2.2 billion. Banking in Arizona is concentrated in four banks 

which held over 90 percent of total bank loans and deposits and operated 257 

of the State's 292 banking offices as of October 30, 1968. The three largest 

banks are headquartered in Phoenix. On the same date, Pioneer held only 1.7

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

percent of total State deposits and 2.5 percent of deposits in the Phoenix service area. The proposed merger, of itself, would have no effect on competition.

On the basis of the above information, the Board of Directors has concluded 

that approval of the application is warranted.

Resources

(\ f\

B anking Offices

No. 13

un

thousands

o f dollars)

In

operation

To be

operated

The Cadillac State Bank

Cadillac, Michigan 

to consolidate with

44,953 6 7

The Kalkaska State Bank

Kalkaska

5,660 1

S u m m a ry re p o rt by A tto rn e y G eneral, M arch 13, 1969 

The office of Cadillac Bank nearest to the Kalkaska Bank is in Fife Lake 

(population 1,300), and about one mile from the western border of Kalkaska 

County; there are no banking offices in the intervening area. These two offices 

of the merging banks are the only banking offices within Kalkaska Bank's selfdesignated service area, which includes almost all of Kalkaska County. The 

merger would, therefore, eliminate existing competition between the merging 

banks and eliminate Kalkaska Bank as an independent bank that could be 

acquired by some other bank not now serving this area. The interlocks and 

common ownership between the banks do not avoid these anticompetitive 

effects. They were recently accomplished and appear to be designed to facilitate the merger and, in any event, they may not be permanent.

We conclude that the merger would have adverse competitive effects.

B asis fo r C o rp o ra tio n approval, A p ril 24, 1969 

The Cadillac State Bank, Cadillac, Michigan (Applicant), an insured State 

nonmember bank with total deposits of $41,776,000, has applied, pursuant to 

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

the Corporation's prior approval to consolidate with The Kalkaska State Bank, 

Kalkaska, Michigan (State Bank), which has total deposits of $5,237,000. The 

banks would consolidate under the charter and with the title of Applicant; and, 

as an incident to the merger, the one office of State Bank would become a 

branch of Applicant, which would increase the number of its offices to seven.

Competition. The population of Cadillac is currently estimated at 11,500, as 

compared to 10,100 in 1960. It is located on inland Lakes Cadillac and Mitchell, 50 miles southeast of Traverse City and 47 miles east of Lake Michigan. 

Kalkaska is 39 miles northeast of Cadillac, and State Bank is the only bank in 

Kalkaska County. The community of Kalkaska (population 1,300) is the only 

incorporated city or town in the county, which has a population of 4,300. The 

shortest distance between offices of the participating banks is the 14 miles 

between Kalkaska and Applicant's office at Fife Lake. The trade area served by 

State Bank does not extend beyond Kalkaska County. Applicant’s primary service area consists of most of Wexford County and portions of Osceola and Missaukee and a very small part of Kalkaska and Grand Traverse Counties. AppliDigitized for FRASER 

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

cant's office at Fife Lake is very close to the Kalkaska County line, and there 

is some overlapping of the trade areas served by the participating banks. 

There is no significant amount of actual or potential competition which would 

be eliminated by this proposal.

The Board of Directors is of the opinion that the proposed merger would not 

substantially lessen competition, tend to create a monopoly, or in any other 

manner be in restraint of trade.

Financial and Managerial Resources and Prospects. These factors are favorable with respect to the participating banks and are so projected for the resulting bank.

Convenience and Needs of the Community to be Served. This proposal is 

not expected to have any noticeable effect in Applicant's trade area, but it 

should benefit the trade area served by State Bank by providing new and 

better services. Some of the benefits to the Kalkaska area would be a larger 

lending limit, trust services, and a new building including drive-in windows.

On the basis of the above information, the Board of Directors has concluded 

that approval of the bank's application is warranted.

Resources

(■ n

Banking Offices

No. 14

U n

thousands

of dollars)

In

operation

To be

operated

Wilkes County Bank & Trust Company

North Wilkesboro, North Carolina 

(in organization; change title to The 

Northwestern Bank) 

to merge with

225 93

The Northwestern Bank

North Wilkesboro

443,702 93

S u m m a ry re p o rt by A tto rn e y G eneral, F e b ru a ry 12, 1969 

[This proposal] is part of a transaction which will result in a presently existing 

bank becoming a wholly owned subsidiary of a one-bank holding company. 

Thus, [this] merger is merely part of a corporate reorganization and as such will 

have no effect on competition.

B asis fo r C o rp o ra tio n approval, A p ril 24, 19 6 9 

Pursuant to Sections 5 and 18(c) and other provisions of the Federal 

Deposit Insurance Act, applications have been filed for Federal deposit insurance for Wilkes County Bank & Trust Company, North Wilkesboro, North Carolina (Wilkes), a proposed new bank in organization, and for consent to its 

merger with The Northwestern Bank, North Wilkesboro, North Carolina (Northwestern), an insured nonmember bank which has total resources of 

$443,700,000, under the charter of the former and with the latter's title. The 

resulting bank will operate from the existing and approved but unopened 

offices of Northwestern.

Northwestern, the only operating bank involved in this proposal, operates a 

regional branch system through 93 existing offices in 57 cities and towns in 

central and western North Carolina, including the major cities of Asheville,

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

Charlotte, and Winston-Salem. This broad service area includes virtually all 

types of economic activity in agriculture, industry, and tourism. Essentially, 

the proposal involves the formation of a one-bank holding company to hold 

stock ownership of Northwestern. Wilkes will not be in operation prior to the 

merger and will begin business with Northwestern's title and will provide the 

same services. The merger, of itself, would have no effect on competition. All 

factors required to be considered relative to each application are favorably 

resolved.

On the basis of the above information, the Board of Directors has concluded 

that approval of the applications is warranted.

Resources

/ I n

B anking Offices

No. 15

vm

thousands

o f dollars)

In

o peration

To be

operated

United Penn Bank

Wilkes-Barre, Pennsylvania 

(in organization) 

to merge with

11

Miners National Bank of Wilkes-Barre

Wilkes-Barre

177,984 11

S u m m a ry re p o rt by A tto rn e y G eneral, M arch 3, 1969 

This proposed merger is part of a transaction which will result in a presently 

existing bank becoming a wholly owned subsidiary of a one-bank holding company. Thus, this merger is merely part of a corporate reorganization and as 

such will have no effect on competition.

B asis fo r C o rp o ra tio n approval, A p ril 24, 1969 

Pursuant to Sections 5 and 18(c) and other provisions of the Federal 

Deposit Insurance Act, applications have been filed for Federal deposit insurance for United Penn Bank, Wilkes-Barre, Pennsylvania (United), a proposed 

new bank in organization, and for consent to the merger of Miners National 

Bank of Wilkes-Barre, Wilkes-Barre, Pennsylvania (National), which has 11 

offices and total resources of $178 million, and United, under the latter's 

charter and with its title. The resulting bank will operate from the existing 

locations of National.

The proposal involves the formation of a one-bank holding company to hold 

stock ownership of National, which will convert to an insured State nonmember bank through the simultaneous new bank formation and merger. United 

will not be in operation as a commercial bank prior to the merger and will 

begin business at the present locations of National with the latter's assets, liabilities, capital, and management.

National has provided needed and useful banking services to the WilkesBarre community on a convenient and successful basis for many years. The 

subject proposal will not alter these services or the service area and, involving 

only a change in title, change in charter, and change in form of corporate 

organization, will, of itself, have no effect on competition. All factors required to 

be considered relative to each application are favorably resolved.

On the basis of the above information, the Board of Directors has concluded 

that approval of the applications is warranted.

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Federal Reserve Bank of St. Louis
BANK ABSORPTIONS APPROVED BY THE CORPORATION 57

Resources

(\ r*i

Banking Offices

No. 16

un

thousands

o f dollars)

In

operation

To be

operated

State Bank and Trust Company

Greenwood, South Carolina 

to merge with

135,653 33 43

North Augusta Banking Company

North Augusta 

and

7,136 2

Ridge Banking Company

Johnston

and

The Southern National Bank of

6,285 3

Orangeburg

Orangeburg

16,056 5

S u m m a ry re p o rt by A tto rn e y G eneral, F e b ru a ry 12, 1969 

The proposed merger would eliminate little, if any, effective competition 

between State Bank and North Augusta Banking due to the long standing 

common ownership and control between the banks, dating back to the time of 

organization of North Augusta Banking. The merger of Ridge Banking into 

State Bank would eliminate some existing competition and the development of 

greater competition between the merging banks. The merger of State Bank and 

Southern National would eliminate potential competition between the merging 

banks.

B asis fo r C o rp o ra tio n approval, A p ril 30, 1969 

State Bank and Trust Company, Greenwood, South Carolina (Applicant), an 

insured State nonmember bank with total deposits of $123,218,900, has applied 

pursuant to Section 18(c) and other provisions of the Federal Deposit Insurance Act, for the Corporation's prior approval to merge with North Augusta 

Banking Company, North Augusta, South Carolina (North Bank), an insured 

State nonmember bank with total deposits of $6,293,300; Ridge Banking Company, Johnston, South Carolina (Ridge Bank), an insured State nonmember 

bank with total deposits of $5,440,300; and The Southern National Bank of 

Orangeburg, Orangeburg, South Carolina (South Bank), which has total deposits of $14,420,000. The banks would merge under the charter and with the 

title of Applicant; and, as an incident to the transactions, the 10 offices of 

North Bank, Ridge Bank, and South Bank would become branches of Applicant, increasing the number of its offices to 43.

Competition. Applicant operates 33 offices in 11 of the 46 counties in the 

northwestern part of South Carolina. Applicant is the fourth largest bank in the 

State, and these proposals would not change that position. As a result of 

these proposals, it is believed that Applicant would become more competitive 

with its three larger competitors.

North Bank operates two offices in North Augusta (population 10,300), and 

the closest office of Applicant is located at Langley, 8 miles northeast. North 

Bank's primary competition consists of two branches of larger banks located in 

North Augusta. One of these branches is operated by an Aiken-based bank 

with total deposits of almost $20 million and the other is part of a statewide 

system, operated by the largest bank in the State, with total deposits of $393 

million. Between Applicant and North Bank there is some common ownership

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

and management which has existed since North Bank was organized, and 

there is no significant amount of actual or potential competition which would 

be eliminated by this proposal.

Ridge Bank operates two offices in Johnston (population 2,100) and one 

office in Ridge Spring (population 600), 7 miles northeast of Johnston. The 

shortest distance between offices of Applicant and Ridge Bank is the 9 miles 

separating Ridge Spring from Applicant's office at Batesburg. Ridge Bank competes with independent banks at Edgefield and Trenton in addition to two 

branches of larger banks. One of these branches is operated by the largest 

bank in the State. In view of the sparsely populated trade area served by 

Ridge Bank it does not seem likely that Applicant would branch de novo in 

this area, and there is no significant amount of present or potential competition which would be eliminated by this proposed merger.

South Bank operates four offices in Orangeburg and one in North, 14 miles 

northwest. The population of the trade area served by South Bank is estimated 

at 34,000. The shortest distance between offices of Applicant and South Bank 

is the 16 miles between Applicant’s branch at Wagener and South Bank's 

office at North; and they are not considered to be directly competitive. South 

Bank competes with two larger banks headquartered in Orangeburg and with 

two branches of other banks, one of which is operated by the largest bank in 

South Carolina. In view of the present number of banking offices in the area 

the possibility of Applicant branching de novo into South Bank's trade area is 

believed remote.

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

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

any manner be in restraint of trade.

Financial and Managerial Resources and Future Prospects. Financial and 

managerial resources of the participating banks are adequate, as they would 

be for the resulting bank. Future prospects are better for the resulting bank 

than they are for the participating banks operating as independent units.

Convenience and Needs of the Community to be Served. These proposed 

transactions would have no appreciable effect in Applicant's present trade 

area, but they would enable the resulting bank to better serve the convenience 

and needs in the trade areas of the other three banks. Benefits to the communities served by North Bank, Ridge Bank, and South Bank would be a much 

larger lending limit, full trust services, computer facilities, travel agency services, and a bank charge card plan.

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

that approval of the applications is warranted.

Resources

/ 1 n

Banking Offices

No. 17

un

thousands

of dollars)

In

operation

To be

operated

The Owosso Savings Bank

Owosso, Michigan 

to acquire certain assets and

assume the deposit liabilities of

42,890 4 5

The Morrice State Bank

Morrice

1,594 1

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Federal Reserve Bank of St. Louis
BANK ABSORPTIONS APPROVED BY THE CORPORATION 59

Approved under emergency provisions. No report requested from the Attorney General.

B asis fo r C o rp o ra tio n A p p ro va l, M ay 5, 1969

Pursuant to Sections 5 and 18(c) of the Federal Deposit Insurance Act, 

applications have been filed by The Owosso Savings Bank, Owosso, Michigan, 

to purchase certain assets and assume the deposit liabilities of The Morrice 

State Bank, Morrice, Michigan, and to establish a branch at the present location of The Morrice State Bank, an insured member bank.

Estimated losses in the assets of The Morrice State Bank exceed its capital 

funds. The Board of Directors has found that it must act immediately in 

approving the applications to prevent the probable failure of The Morrice State 

Bank.

Morrice, Michigan, has a population of about 600 and serves an agricultural 

trade area of approximately 4,000. The nearest competing bank is The State 

Bank of Perry, some 2 miles distant. The Morrice State Bank has served this 

community for many years and has developed a sizable volume of business. It 

is expected that a branch of The Owosso Savings Bank will successfully 

replace the institution and continue to offer banking services to the community 

and trade area.

On the basis of the above information and other information available to the 

Corporation, the Board of Directors has concluded that approval of the applications is warranted.

Resources

(i n

B anking Offices

No. 18

un

thousands

o f dollars)

In

operation

To be

operated

Jefferson Bank of Charlottesville

Charlottesville, Virginia 

(in organization; change title to 

Citizens Bank and Trust Company 

of Charlottesville) 

to merge with

202 5

Citizens Bank and Trust Company

Charlottesville

28,992 5

S u m m a ry re p o rt by A tto rn e y G eneral, F e b ru a ry 12, 1969 

[This proposal] is part of a transaction which will result in a presently existing 

bank becoming a wholly owned subsidiary of a one-bank holding company. 

Thus, [this] merger is merely part of a corporate reorganization and as such will 

have no effect on competition.

B asis fo r C o rp o ra tio n approval, M ay 8, 1969 

Pursuant to Sections 5 and 18(c) and other provisions of the Federal 

Deposit Insurance Act, applications have been filed for Federal deposit insurance for Jefferson Bank of Charlottesville, Charlottesville, Virginia (Jefferson), a 

proposed new bank in organization, and for consent to its merger with Citizens 

Bank and Trust Company, Charlottesville, Virginia (Citizens), with total 

resources of $29 million, under Jefferson's charter and with the title “ Citizens 

Bank and Trust Company of Charlottesville." The resulting bank will operate 

from the main office and four existing branches of Citizens.

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

The proposal involves the formation of a one-bank holding company to hold 

stock ownership of Citizens through the simultaneous new bank formation and 

merger. Jefferson will not be in operation as a commercial bank prior to the 

merger, following which it will operate the same banking business at the same 

locations as Citizens and with the same management and personnel. The proposal, of itself, will not change the banking services which Citizens has provided usefully to the Charlottesville community on a convenient and successful 

basis for many years; nor will it, involving only a change in charter and form 

of organization, have any effect on competition. All factors required to be considered relative to each application are favorably resolved.

On the basis of the above information, the Board of Directors has concluded 

that approval of the applications is warranted.

Resources

(i n

B anking Offices

No. 19 thousands

of dollars)

In

operation

To be

operated

Republic Bank and Trust Company

Herndon, Virginia 

(change title to Arlington Trust 

Company, Incorporated) 

to merge with

4,391 2 9

Arlington Trust Company, Inc.

Arlington

112,053 7

S u m m a ry re p o rt by A tto rn e y G eneral, M arch 4, 1969 

The Financial General Corporation, Washington, D. C., a registered bank 

holding company, owns 80 percent of Arlington Trust and 58 percent of 

Republic Bank.

The head offices of the merging banks are 20 miles apart, their closest 

offices are about 10 miles apart, and there are numerous banking alternatives 

in the intervening area. In addition, both banks are controlled by the same 

bank holding company. These facts indicate that the proposed transaction will 

not eliminate any effective competition.

B asis fo r C o rp o ra tio n approval, M ay 8, 1969 

Pursuant to Section 18(c) and other provisions of the Federal Deposit Insurance Act, an application has been filed with the Corporation for its prior consent to merge Arlington Trust Company, Inc, Arlington, Virginia (Trust Company), an insured State nonmember bank with total deposits of $100,227,000, 

with Republic Bank and Trust Company, Herndon, Virginia (Republic Bank), an 

insured State nonmember bank with total deposits of $3,801,000. The resulting bank would operate under the charter of Republic Bank and with the title 

"Arlington Trust Company, Incorporated." The seven offices presently operated 

by Trust Company would become branches of the resulting bank in addition to 

two approved but unopened branches, increasing the number of offices of the 

resulting bank to 11. Incidental to the proposed merger, the common capital 

stock of the resulting bank would be less than the common capital stock of 

the combined banks prior to the merger, with an offsetting credit to the surplus account, and there would be no decrease in total capital.

Competition. All offices of Trust Company are located in Arlington County,

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Federal Reserve Bank of St. Louis
BANK ABSORPTIONS APPROVED BY THE CORPORATION 61

and Republic Bank's two offices are in the communities of Herndon and 

Vienna, in Fairfax County. The main offices of the participating banks are 20 

miles apart, and the shortest distance between offices is 10 miles. Both of the 

participating banks are located in the heavily populated Washington, D.C.-Maryland-Virginia SMSA. There are several other banking offices located in the area 

between the offices of the participating banks, and there is no significant 

amount of competition between Trust Company and Republic Bank. Legally, 

Trust Company cannot branch de novo in Fairfax County, and Republic Bank 

cannot branch de novo in Arlington County. Both of the participating banks are 

owned by the same registered bank holding company, and this proposal would 

not increase that holding company’s share of the market in northern Virginia. 

There is no significant amount of actual or potential competition, between the 

participating banks, which would be eliminated by this proposal; and its consummation would have no discernible anticompetitive effects.

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

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

manner be in restraint of trade.

Financial and Managerial Resources and Future Prospects. Financial and 

managerial resources of the participating banks are adequate, as they would 

be for the resulting bank. Since it was organized in 1963, Republic Bank has 

not grown as fast as anticipated, and its future prospects would be better as a 

part of the resulting bank. The future prospects of the resulting bank are 

favorable.

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

transaction would have no appreciable effect in Trust Company's trade area, 

but it would enable the resulting bank to better serve the convenience and 

needs in the trade area served by Republic Bank. Immediate benefits to the 

trade area served by Republic Bank would be an increased lending limit, trust 

services, and mortgage loan services. In the long run, the relocation of the 

charter to Fairfax County will permit the resulting bank to establish de novo 

branches to meet the expanding banking needs of this rapidly developing 

county.

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

that approval of the application is warranted.

Resources

/ i n

B anking Offices

No. 20

un

thousands

o f dollars)

In

operation

To be

operated

Peoples Bank & Trust Company

Rocky Mount, North Carolina

95,790 23 24

to merge with

Bank of Harrellsville

Harrellsville

1,616 1

S u m m a ry re p o rt by A tto rn e y G eneral, F e b ru a ry 11, 1969 

Harrellsville (population 171) is a small farming community located in North 

Carolina's tidewater section with little growth potential.

Although the head offices of the merging banks are about 72 miles apart, 

Peoples Bank operates branches at Edenton and at Hertford, each located

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

about twenty miles east of Harrellsville, with no banks in the intervening 

areas. Therefore, it appears that the proposed merger might eliminate some 

existing competition. However, both Wachovia Bank & Trust Company (total 

deposits, $1 billion) and Planters National Bank (total deposits, $82 million) 

operate branches about 12 miles southwest of Harrellsville.

B asis fo r C o rp o ra tio n approval, M ay 15, 1969

Peoples Bank & Trust Company, Rocky Mount, North Carolina (Applicant), 

an insured nonmember bank with total deposits of $85,907,000, has applied, 

pursuant to Section 18(c) and other provisions of the Federal Deposit Insurance Act, for the Corporation’s prior approval to merge with Bank of Harrellsville, Harrellsville, North Carolina (Other Bank), which has total deposits of 

$1,448,000. The banks would merge under the charter and with the title of 

Applicant; and, as an incident to the merger, the only office of Other Bank 

would become a branch of Applicant, increasing the number of its offices to 

24.

Competition. Applicant is based in Rocky Mount (population 32,140) and 

operates a banking system which includes branches in 13 other communities 

in the northeastern part of North Carolina. The estimated population of Applicant’s trade area is 100,000. Other Bank is located at Harrellsville (population 

171) and serves an area with an estimated population of 2,500. A distance of 

72 miles separates the participating banks, and there is no effective competition between the two. The nearest intervening branch of Applicant is 42 miles 

from Other Bank; and Applicant also operates four branches in the same general area of Other Bank, but the nearest is 32 miles away. These are not considered competitive.

Applicant is the eighth largest bank in its relevant trade area in terms of 

total deposits, and this proposal would not change that position. Other Bank is 

the smallest in its trade territory, is not an aggressive institution, and has not 

shown an inclination to broaden its operations by de novo branching.

Consummation of this proposal would have no effect on the competitive 

position of Applicant against the other banks which operate in its present service areas and would not eliminate any appreciable competition between the 

participating banks. The slight concentration resulting from the merger would 

not significantly affect competition in the respective trade areas of the participating banks. The merger would kindle the competitive spirit of banking in 

Other Bank’s immediate area, but the emergence of possible monopolistic 

tendencies is improbable because of the presence nearby of other banks.

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

be in restraint of trade.

Financial and Managerial Resources and Future Prospects. These factors are 

regarded as favorable with respect to Applicant and are so projected for the 

resulting bank. The merger would provide assurance of continuity of management for the banking facility at Harrellsville.

Convenience and Needs of the Community to be Served. The proposal would 

not materially benefit the trade area served by Applicant, but it would enable 

the resulting bank, with a much larger lending limit, to fill the need for credit 

in amounts larger than now available from Other Bank. Also, more complete 

banking services, including those provided by a trust department, would be 

offered in the Harrellsville area.

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BANK ABSORPTIONS APPROVED BY THE CORPORATION 63

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

of the bank's application is warranted.

Resources Banking Offices

No. 21

{in

thousands

of dollars)

In

operation

To be

operated

First-Citizens Bank & Trust Company

Smithfield, North Carolina 

to merge with

650,435 124 125

The Bank of Gibsonville

Gibsonville

1,395 1

S u m m a ry re p o rt by A tto rn e y G eneral, M arch 3, 1969 

First-Citizens, the fourth largest bank in North Carolina, proposes to merge 

with The Bank of Gibsonville, which operates the only bank office in Gibsonville, North Carolina.

The closest offices of First-Citizens are thirteen miles from Gibsonville, but 

there are no other banking offices in the intervening area. Therefore, it would 

appear that some competition between the two banks will be eliminated by the 

merger. In addition, this merger may reduce the possibility of entry (perhaps 

through acquisition of The Bank of Gibsonville itself) by a bank not presently 

competing in the general area.

Nine banks operate some 50 offices in Guilford County (an area which probably overstates the relevant market here). First-Citizens' share of the IPC 

deposits in Guilford County, now 5 percent, will increase only slightly as a 

result of this merger. Competition is also furnished from banks located in 

nearby Burlington in Alamance County, where First-Citizens has no office.

It should be noted, however, that the proposed merger is part of a continuing trend of acquisitions and mergers by North Carolina's largest commercial 

banks, which has the effect of retarding the development of a more competitive banking structure in North Carolina (a State in which the five largest 

banks already control about two-thirds of total deposits).

B asis fo r C o rp o ra tio n approval, M ay 15, 1969 

First-Citizens Bank & Trust Company, Smithfield, North Carolina (Applicant), 

an insured nonmember bank with total deposits of $580,169,000, has applied, 

pursuant to Section 18(c) and other provisions of the Federal Deposit Insurance Act, for the Corporation's prior approval to merge with The Bank of Gibsonville, Gibsonville, North Carolina (Other Bank), which has total deposits of 

$1,236,000. The banks would merge under the charter and with the title of 

Applicant; and, as an incident to the merger, the lone office of Other Bank 

would become a branch of Applicant, giving it a total of 125 offices.

Competition. Applicant is fourth among the largest banks in North Carolina, 

and this proposal would not change that position. Because of its widely scattered system, the service area of Applicant is virtually the entire State. Its 

main office is at Smithfield and 123 branches are located in 55 communities, 

including Smithfield. Many of its offices, including those at Greensboro which 

are nearest to Other bank, are in competition with offices of the other large 

banks in the State, and the proposed merger would have no significant effect 

on competition in the areas presently served by Applicant.

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64 FEDERAL DEPOSIT INSURANCE CORPORATION

The service area of Other Bank is relatively small and is confined to Gibsonville (population 1,800) and surrounding territory within a 10-mile radius. 

Other Bank is the smallest bank in its relevant trade area, and its growth has 

been modest in recent years. It is in the shadow of offices at Burlington, 7 

miles away, of four of the State's five largest banks; and it has not been an 

influential competitor. The entrance of Applicant, with its much larger 

resources and proposed broader banking services, would tend to increase competition in the area now served by Other Bank.

The participating banks presently are not considered as being in competition 

with each other, and there seems to be little likelihood that they would 

become competitive in the future. Other Bank has not shown an inclination to 

expand beyond its present operation; and, because of its size, Gibsonville 

would not appear to be a desirable location for a de novo branch. The elimination of actual or potential competition is not considered a logical result of the 

proposed merger.

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

be in restraint of trade.

Financial and Managerial Resources and Future Prospects. Both financial 

and managerial resources are considered adequate with respect to the merging 

banks and are so projected for the resulting bank. Net earnings record of neither of the banks has been outstanding in recent years; but an ability to earn 

has been demonstrated by Applicant, and this proposal would not have any 

detrimental effects on this. Future prospects of the resulting bank are favorable.

Convenience and Needs of the Community to be Served. Other Bank is a 

rather small institution and offers limited services. A lending lim it low in comparison to those of competitive banks, coupled with a conservative credit 

policy, has rendered it an ineffective force as regards competition in the relevant trade area. As a result of this proposal, the Gibsonville area would benefit 

from a bank with much larger lending facilities and more aggressive credit 

views. A wider range of services, including those offered by a trust department, 

are other advantages that would be gained by the community through the proposed merger.

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

that approval of the application is warranted.

Resources

/1 n

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\in

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of dollars)

In

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To be

operated

Industrial Valley Bank and Trust Company

Jenkintown, Pennsylvania 

to merge with

447,330 40 41

Doylestown Trust Company

Doylestown

29,290 1

S u m m a ry re p o rt by A tto rn e y G eneral, A p ril 15, 1969 

IVB operates one branch office in Bucks County. This office is located in 

Warminster (adjacent to central Bucks County), approximately nine miles south

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BANK ABSORPTIONS APPROVED BY THE CORPORATION 65

of Doylestown. There is, apparently, some direct competition between IVB and 

Doylestown Trust which will be eliminated by the merger; for example, five 

common depositors maintain balances of $34,700 at IVB and $48,000 at 

Doylestown Trust.

Under Pennsylvania law, IVB could be permitted to open de novo branches 

in central Bucks County.

Six commercial banks presently operate offices in central Bucks County. As 

of June 30, 1966, Doylestown Trust held approximately 26 percent of the total 

IPC demand deposits held by all commercial banking offices located in central 

Bucks County; and on that date Doylestown Trust and The Doylestown 

National Bank and Trust Company held 60 percent of such deposits.

The large Philadelphia banks are entering this market. The Philadelphia 

National Bank entered central Bucks County de novo in 1968, and has secured 

approval to open a second office in the area. The First Pennsylvania Bank and 

Trust Company will open a de novo branch this April. In addition, Girard Trust 

Bank and Fidelity Bank sought unsuccessfully to enter central Bucks County by 

merger in 1968.

IVB has the capability and incentive to branch de novo into the growing central Bucks County market, which is located only 15 miles north of its headquarters in Montgomery County. However, there are five larger banks which 

would also appear to be potential entrants into central Bucks County; Girard 

Trust Bank, Fidelity Bank, Provident National Bank, Continental Bank and 

Trust, and Central Penn National Bank.

B asis fo r C o rp o ra tio n approval, M ay 21, 1969

Industrial Valley Bank and Trust Company, Jenkintown, Pennsylvania (Applicant), an insured nonmember bank with total deposits of $373,166,000, has 

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

Insurance Act, for the Corporation's prior approval to merge with Doylestown 

Trust Company, Doylestown, Pennsylvania (Merging Bank), which has total 

deposits of $26,453,000. The banks would merge under the charter and with 

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

Merging Bank would become a branch of Applicant, increasing the number of 

its offices to 41.

Competition. The service area of Applicant, of which the population is estimated at 2,750,000, is essentially southeastern Pennsylvania, including the 

counties of Chester, Delaware, Montgomery, Philadelphia, Lehigh, and a small 

portion of Bucks County. Its branch offices in Allentown are close to the Northampton County line and gain a small percentage of business from that 

county. Philadelphia and surrounding counties are heavily industrialized with 

diversified activity, extensive commercial services, port facilities, and an 

expanding residential population. The economy of the entire service area of 

Applicant is, to a great extent, geared to the economy of the greater Metropolitan Philadelphia area, with agriculture playing but minor roles.

The service area of Merging Bank is confined primarily to the community of 

Doylestown, Pennsylvania, and to that small portion of Bucks County surrounding the immediate community. Population of the service area is estimated to 

be 21,000. Doylestown is the county seat and is located approximately in the 

center of Bucks County. The area has been essentially rural and residential, 

with but few, mostly small, industries until recent years. It is now reported 

that the rapidly expanding industrial complex of Metropolitan Philadelphia has

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

begun to change the appearance of Merging Bank's service area, and population growth for Bucks County has been projected at 65 percent by 1975.

The main offices of the participating banks are 15 miles apart, and the shortest distance between offices is the 10 miles separating Applicant's office at 

Warminster, just inside the Bucks County line, and Merging Bank's sole office 

at Doylestown. The two banks operate in separate market areas with little 

overlap and very little existing competition between them. Moreover, there 

seems to be little potential for competition. The size of Merging Bank precludes an aggressive approach to Applicant's market area, while the numerous 

existing or approved offices of competing banks in or near the market area of 

Merging Bank appear to preclude the possibility of de novo branch approval 

for Applicant. For these and other reasons, elimination of potential competition 

is not considered a reason for objection to this proposal.

Applicant ranks 13th in size among 68 banks in its primary service area 

(ninth among commercial banks), as measured in terms of IPC deposits. Several of its Philadelphia competitors hold IPC deposits in excess of $1 billion 

each. With respect to this market area, the merger would have no significant 

effect on competition. Any competitive effects would occur in the servicing 

area of Merging Bank, where it ranks fifth of five commercial banks doing 

business in the central Bucks County area. The resulting bank would rank third 

in size in terms of IPC deposits of the five commercial banks in the central 

Bucks County area; however, this proposal would not diminish competition in 

the area or reduce the number of banking alternatives. Rather, it will substitute an active and aggressive bank for a smaller bank now unable to cope with 

the increasingly strong competitive situation. The primary trade area of the 

resulting bank would be the six counties where its offices will be located, plus 

small portions of some adjacent counties. Within this trade area the resulting 

bank would have only 3.3 percent of the IPC deposits and 12 other banks 

would have a much greater share of the market. The merger should tend to 

increase competition in the area now served by Merging Bank.

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

be in restraint of trade.

Financial and Managerial Resources and Future Prospects. Financial and 

managerial resources are satisfactory with respect to both participating banks 

and are so projected for the resulting bank. With respect to managerial 

resources, the merger will solve an administrative problem for Merging Bank 

and will substitute aggressive management for one which has been incapable 

of providing experienced personnel needed to cope with a highly intensified 

competitive banking market. Earnings records have been good for both banks, 

and future prospects of the resulting bank are favorable.

Convenience and Needs of the Community to be Served. As a result of the 

merger, the Doylestown area would gain the advantage of a bank with a larger 

lending limit than now provided by Merging Bank. Additional conveniences 

such as computerized banking services, more comprehensive lending programs, 

better-trained officer personnel, and expanded full-service commercial banking 

facilities would be provided for present and potential customers of Merging 

Bank, as well as for the general public. A more aggressive management would 

further stimulate competition in the area.

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

that approval of the application is warranted.

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BANK ABSORPTIONS APPROVED BY THE CORPORATION 67

Resources

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American Bank & Trust Company

Monroe, North Carolina 

to merge with

40,210 10 13

Anson Bank and Trust Company

Wadesboro

12,563 3

S u m m a ry re p o rt by A tto rn e y G eneral, A p ril 28, 1969

The closest offices of the merging banks are approximately 15 miles apart, 

and there are two banks in the intervening area. Their respective head offices 

are 25 miles apart, and are located in separate counties of a predominantly 

rural section of the state. It is unlikely that any significant amount of direct 

competition would be eliminated by this merger.

Since North Carolina law permits state-wide de novo branching, the merger 

would eliminate the potential competition that would be effected by either 

bank branching de novo into the service area of the other. American Bank has 

demonstrated an aggressive growth pattern by opening several de novo offices 

in recent years.

Should this merger be consummated, American Bank will be eliminated as a 

likely potential entrant into the highly concentrated banking market of Anson 

County. However, as none of the largest North Carolina banks have yet 

entered Anson County, and as they will remain potential entrants in view of 

their presence in nearby Charlotte, it would appear that this merger will not 

have a significantly adverse effect on potential competition.

B asis fo r C o rp o ra tio n approval, M ay 29, 1969

American Bank & Trust Company, Monroe, North Carolina (Applicant), an 

insured State nonmember bank with total deposits of $35,460,000, has 

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

Insurance Act, for the Corporation's prior consent to merge with Anson Bank 

and Trust Company, Wadesboro, North Carolina (Anson Bank), which has total 

deposits of $10,946,000, under the charter and with the title of Applicant and, 

incident thereto, to establish the three offices of Anson Bank as branches.

Competition. Applicant, operating 10 offices, with two others approved but 

unopened, offers a complete range of banking services to the area between 

Monroe, in Union County, and southeastern Mecklenburg County, including the 

eastern section of the city of Charlotte, all within the Charlotte SMSA. This is 

a rapidly growing area; transportation, service, government, and trade provide 

the bulk of employment in and around Charlotte, which is a major distribution 

center for the entire Southeast. Union County's economy is well diversified 

with agriculture continuing to be an important segment of the economy. Wadesboro is about 25 miles east of Monroe, and the closest offices of the merging banks are 16 miles apart. Anson Bank is one of two banks in Wadesboro, 

the county seat for Anson County; there is some industry in the area, but agriculture still is of major economic importance.

There is a limited overlapping of the service areas of Applicant and Anson 

Bank, and the merger would not result in a substantial lessening of competition, actual or potential. Officials of banks competing with Anson Bank offered

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68 FEDERAL DEPOSIT INSURANCE CORPORATION

no objection to the proposal. Applicant, one of the smaller branch systems in 

North Carolina, competes with offices of the five largest banks, among others, 

in its service area. Major competition for Anson Bank emanates from one 

other bank in Wadesboro, also operating two branches in Anson County, and 

one branch of a larger branch system headquartered in Salisbury, North Carolina. The substitution of branches of Applicant for Anson Bank’s offices should 

tend to increase competition with these banks.

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

be in restraint of trade.

Financial and Managerial Resources and Future Prospects. These factors are 

satisfactory with respect to both participating banks and are so projected for 

the resulting bank.

Convenience and Needs of the Community to be Served. Anson Bank, 

because of its comparatively limited resources, offers limited services. As a 

result of the merger, the Wadesboro area would gain the advantage of a larger 

bank which provides all types of banking facilities on a larger and broader scale 

with a larger lending limit and, thus, could better serve the convenience and 

needs of the community.

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

that approval of the application is warranted.

Resources

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Security Bank and Trust Company

Salisbury, North Carolina 

to merge with

45,917 13 16

Mutual Bank & Trust Company

Marshville

6,673 3

S u m m a ry re p o rt by A tto rn e y G eneral, A p ril 25, 1969 

The primary effects of this merger will be felt in the vicinity of Marshville, 

North Carolina, a rural area with increasing industrial growth.

Branches of Security Bank lie both east and west of Mutual Bank. While 

there are intervening banks, the service areas of the merging banks would 

appear to overlap in the Marshville area. This merger will eliminate substantial 

direct competition between the two banks.

Approval of this merger, along with that of American Bank and Trust Company, Monroe, and Anson Bank and Trust Company, Wadesboro, would reduce 

the number of competitors in the general vicinity of Marshville from 5 to 3.

We conclude that this merger would have an adverse effect on competition.

B asis fo r C o rp o ra tio n approval, M ay 29, 1969 

Security Bank and Trust Company, Salisbury, North Carolina (Applicant), an 

insured State nonmember bank with total deposits of $40 million, has applied, 

pursuant to Section 18(c) and other provisions of the Federal Deposit Insurance Act, for the Corporation's prior consent to merge with Mutual Bank & 

Trust Company, Marshville, North Carolina (Mutual), an insured State nonmember bank with total deposits of $6 million. The merger would be effected

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under Applicant's charter and with its title; and, as an incident thereto, 

Mutual's three offices would be operated as branches, increasing the number 

of Applicant's offices to 17, including its approved but unopened branch.

Competition. Applicant directly serves nine communities in seven counties in 

the south-central sector of the State where its 13 offices are located. Its headquarters city of Salisbury has a population of 21,300, and its entire service 

area population is estimated at 107,000. Mutual's three offices serve a small 

area around Marshville (population 1,400) and about 60 miles south of Salisbury. Applicant’s competitors include the State's largest and third largest 

banks, which have deposits in excess of $1.3 billion and $827 million. The 

small increase in Applicant's deposit size will have no material competitive 

effect in its service area.

Mutual is located near the eastern border of Union County. Applicant has 

two offices in central Union County at Monroe and a branch in adjacent Anson 

County at Polkton. These are Applicant's closest offices to Mutual and are 10 

miles east and west from Marshville. In each direction a competing bank office 

intervenes the merging banks' offices. Applicant’s Monroe offices have a moderate amount of deposit business from the Marshville area, and the merging 

banks appear to be competitive with each other to a limited degree.

Among the six banks in the general area where both merging banks have 

offices, Applicant's branches hold about 10 percent of the aggregate deposits. 

The resulting bank's offices in the area would have about 20 percent. There 

should be no significant adverse effects on competition in this area.

The Board of Directors is of the opinion that the proposed merger would not 

significantly lessen competition, tend to create a monopoly, or in any other 

manner be in restraint of trade.

Financial and Managerial Resources, Future Prospects, and Convenience and

Needs of the Community to be Served. These factors are satisfactory with 

respect to Applicant and are so projected for the resulting bank. A significantly 

larger lending limit will permit the accommodation of larger credit lines needed 

by Mutual's present customers. The larger financial resources of the resulting 

bank will make possible broader and more specialized services and should be 

of value in attracting new business and contributing to the expansion of the 

Marshville area's economy.

For the reasons stated above, the Board of Directors has concluded that 

approval of the bank's application is warranted.

Resources B anking Offices

No. 25

\in

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o f dollars)

In

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To be

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Citizens Bank of South Carolina

Dillon, South Carolina 

to merge with

21,144 4 5

The Bank of Nichols

Nichols

2,508 1

S u m m a ry re p o rt by A tto rn e y G eneral, M arch 10, 1969 

The community primarily affected by this merger will be the general vicinity 

of the town of Nichols (population 617) in Marion County (population 32,014). 

Marion County is served by five banks having ten offices.

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70 FEDERAL DEPOSIT INSURANCE CORPORATION

The closest office of Citizens Bank is approximately 26 miles from Nichols 

Bank. Because of this distance, the presence of an intervening bank in Lake 

View, and the small size of Nichols Bank, it would appear that the proposed 

merger would not eliminate any significant direct competition between these 

banks.

South Carolina law permits statewide branching; but, because of the nature 

of the community and the fact that it appears adequately serviced by the 

existing banks, opportunity for de novo entry seems poor. Therefore, it is 

unlikely that the proposed merger would eliminate any significant potential 

competition.

B asis fo r C o rp o ra tio n approval, M ay 29, 1969

Citizens Bank of South Carolina, Dillon, South Carolina (Applicant), an 

insured nonmember bank with total deposits of $19,205,000, has applied, pursuant to Section 18(c) and other provisions of the Federal Deposit Insurance 

Act, for the Corporation’s prior approval to merge with The Bank of Nichols, 

Nichols, South Carolina (Other Bank), which has total deposits of $2,286,000. 

The banks would merge under the charter and with the title of Applicant; and, 

as an incident to the merger, the only office of Other Bank would become a 

branch of Applicant, increasing the number of its offices to five. Approval is 

also requested for the retirement, at the option of the holders thereof, of the

5 percent preferred stock to be issued in connection with the merger.

Competition. Applicant is headquartered in Dillon and operates one branch 

at Clio and two in Lancaster. It is the fifth largest bank in terms of total 

deposit volume among the banks with offices in its overall trade area. The 

merger would move Applicant to fourth position in its entire service area, and 

it would become the largest bank with offices in the Lancaster area. The 

resulting bank would control the largest volume of banking business in its 

trade areas, but it would be in competition with the resources of much larger 

banks in the Dillon and Nichols areas. The only competitive advantage to be 

derived from the proposal would be a larger lending limit. The participating 

banks are 22 miles apart, and they operate in service areas that are entirely 

separate. They are not considered as likely entrants into the other's area 

through de novo branches. Thus, there is no significant existing or potential 

competition which would be eliminated by the merger. It is expected that competition would increase to some degree in the Nichols service area. The public 

would still have numerous banking alternatives available, both large and small.

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

be in restraint of trade.

Financial and Managerial Resources and Future Prospects. These factors are 

satisfactory with respect to the participating banks and are so projected for 

the resulting bank.

Convenience and Needs of the Community to be Served. The merger would 

not benefit to any appreciable extent the trade areas presently served by Applicant; but it would enable the resulting bank, because of a much larger lending 

limit, to meet the need for credit in amounts considerably in excess of the 

maximum now available from Other Bank. Additionally, the resulting bank 

would provide a much broader range of banking services in the Nichols market 

area.

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

of the bank's application is warranted.

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Resources

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Piedmont Bank

Greenville, South Carolina 

(in organization; change title to 

First Piedmont Bank and Trust Company)

200 2

to merge with

First Piedmont Bank and Trust Co.

Greenville

7,924 2

S u m m a ry re p o rt by A tto rn e y G eneral, A p ril 16, 1969 

The proposed merger is part of a transaction which will result in First Piedmont Bank and Trust Company becoming a wholly owned subsidiary of a onebank holding company and as such will have no effect on competition.

Basis fo r C o rp o ra tio n approval, M ay 29, 1969 

Pursuant to Sections 5, 18(c), and 18(i) and other provisions of the Federal 

Deposit Insurance Act, applications have been filed for Federal deposit insurance for Piedmont Bank, Greenville, South Carolina (Applicant), a proposed 

new bank, for consent to its merger with First Piedmont Bank and Trust Co., 

with total resources of $7.9 million, under Applicant's charter and with the 

title "First Piedmont Bank and Trust Company," and to retire the $200,000 

common capital of Applicant. The resulting bank will operate from the main 

office and existing branch of First Piedmont.

The proposal involves the formation of a one-bank holding company which 

will acquire ownership of First Piedmont through the new bank formation and 

merger. Applicant will not be in operation as a commercial bank prior to the 

merger; and following consummation of the transaction, it will operate the 

same banking business at the same locations as First Piedmont and with the 

same management and personnel. There will be no change in the banking 

services which First Piedmont is providing to the city of Greenville. Involving 

only a change in charter and form of organization, the merger will have no 

effect on competition. All factors required to be considered relative to each 

application are favorably resolved.

On the basis of the above information, the Board of Directors has concluded 

that approval of the applications is warranted.

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The Boone County State Bank

Lebanon, Indiana 

to acquire the assets and assume the

deposit liabilities of

18,204 3 4

Citizens State Bank

Jamestown

2,217 1

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72 FEDERAL DEPOSIT INSURANCE CORPORATION

S u m m a ry re p o rt by A tto rn e y G eneral, M arch 11, 1969

The nearest offices of the applicant banks are about five miles apart with no 

banks in the intervening area. The application estimates that the total amount 

of common deposits and loans to be approximately $50,000, and that deposit 

and loan accounts derived from the other bank’s community amount ‘to a minimum of $50,000.’ Thus it seems likely that the proposed acquisition will eliminate some direct competition between the two banks.

The proposed acquisition will increase concentration in Boone County. 

Boone Bank now holds 52.6 percent of Boone County's IPC demand deposits; 

and the acquisition would give it 59.2 percent of such deposits. However, it 

would seem that these market shares may overstate the situation somewhat 

since they do not reflect the extent to which Citizens Bank derives deposits 

from neighboring counties because of its location on the county line.

B asis fo r C o rp o ra tio n approval M ay 29, 1969

The Boone County State Bank, Lebanon, Indiana (Applicant), an insured 

State nonmember bank with total deposits of $16 million, has applied, pursuant to Section 18(c) and other provisions of the Federal Deposit Insurance 

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

liability to pay deposits made in Citizens State Bank, Jamestown, Indiana 

(Jamestown Bank), an insured State member bank with total deposits of $2 

million. The transaction would be effected under Applicant's charter and with 

its title; and, as an incident thereto, the main office of Jamestown Bank will 

become a branch of the resulting bank.

Competition. Applicant operates its main office and a drive-in facility in 

Lebanon, as well as a branch in Advance, 11 miles from Lebanon. Applicant 

also has received permission to establish another branch in Lebanon. Jamestown Bank operates from a single office which is located 16 miles from Applicant's main office and 5 miles from its Advance Branch. Lebanon has a population of 9,523, while that of Jamestown is 827. There is only limited 

competition between Applicant's Advance Branch and Jamestown Bank. Management of Jamestown Bank has been quite conservative in the past, and it 

has not been an aggressive competitor. Moreover, it is experiencing a serious 

management succession problem due to the incapacitation of its executive 

officer.

Applicant is the largest bank in Boone County, but the second largest bank 

competing in Jamestown Bank’s trade area, while Jamestown Bank is the 

second smallest bank. The proposal would introduce a more aggressive institution with much larger lending limits, a farm representative, and a fully staffed 

trust department into Jamestown, which is primarily an agricultural community. The transaction should have no adverse competitive effects in the area.

The Board of Directors is of the opinion that the effect of the proposed purchase and assumption transaction would not be substantially to lessen competition, tend to create a monopoly, or in any other manner be in restraint of 

trade.

Financial and Managerial Resources, Future Prospects, and Convenience and

Needs of the Community to be Served. These factors are favorable with 

respect to Applicant and are so projected for the resulting bank. The proposal 

will eliminate a small commercial bank with serious management succession 

problems. The convenience and needs of the Jamestown area will be better 

served by the replacement of a small independent bank with a branch of a 

larger, more progressive institution.

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On the basis of the information presented, the Board of Directors has concluded that approval of the bank's application is warranted.

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The Fairfield County Trust Company

Stamford, Connecticut 

(change title to Union 

Trust Company) 

to merge with

329,664 31 42

The Union and New Haven Trust Company

New Haven

130,603 11

S u m m a ry re p o rt by A tto rn e y G eneral, D ecem ber 2, 196 8

The head offices of the merging banks are about forty miles apart; their 

nearest branch offices are no closer than fifteen miles, and there appear to be 

a number of banks operating in the intervening areas. Furthermore, it seems 

that neither bank obtains more than 1 percent of its deposits or loans from 

areas directly served by the other. Thus, it does not seem that significant 

existing competition would be eliminated by this merger.

Connecticut banking law permits statewide de novo branching into any incorporated city or town in which there is not located the head office of another 

bank. Of Connecticut's 169 towns, 128 with about half the state's population, 

or over 1,400,000 inhabitants, are open to de novo branching by either County 

Trust or Union Trust, and about 115, with a total of over 1 million inhabitants, 

appear to be open to de novo branching by both banks.

Both banks are leading competitors in the markets in which they operate, 

and these markets tend to be highly concentrated. In terms of total deposits, 

County Trust is the largest bank headquartered in Stamford and is the second 

largest headquartered in Fairfield County. Ten banks operate in County Trust's 

self-designated service area, located in the western portion of Fairfield County, 

and having a total population of over 400,000. As of June 30, 1966, County 

Trust held approximately 32 percent of IPC demand deposits in this area, and 

the four largest banks held more than 90 percent of those deposits.

In terms of total deposits, Union Trust is the third largest bank headquartered in New Haven and the fourth largest headquartered in New Haven 

County. Ten of Union Trust’s eleven offices are located in New Haven County 

with the eleventh situated in Old Saybrook in Middlesex County. Seventeen 

commercial banks operate offices in Union Trust's self-designated primary service area, located in the southeastern half of New Haven County, and having a 

total population of over 300,000. As of June 30, 1966, Union Trust held 

approximately 21 percent of total IPC demand deposits in this area, and the 

four largest banks held more than 90 percent of those deposits.

At least eight towns in which County Trust operates offices, with populations 

ranging from 5,800 to 48,000, and at least five towns in which Union Trust 

operates offices, with populations ranging from 9,000 to 20,000 appear to be 

open to de novo branching. Even in towns where de novo branching is prohibited, entry may generally be effected through merger with a small bank or 

through establishing an office just outside the protected area. It would appear

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74 FEDERAL DEPOSIT INSURANCE CORPORATION

that many of these communities are attractive banking markets, and that each 

of the applicants is among the most likely entrants into the markets served by 

the other, as well as markets in which neither bank now operates. Consummation of the proposed merger will eliminate this potential competition. The 

effect of this merger will be significantly adverse.

Basis fo r C o rp o ra tio n approval, June 12, 1969

The Fairfield County Trust Company, Stamford, Connecticut (Applicant), an 

insured State nonmember bank with total deposits of about $298,414,000, has 

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

Insurance Act, for the Corporation’s prior approval to merge with The Union 

and New Haven Trust Company, New Haven, Connecticut (Union Bank), which 

has total deposits of about $113,493,000. The banks would merge under the 

charter of Applicant and with the title “ Union Trust Company." As an incident 

to the merger, Applicant's main office would be moved from 300 Main Street, 

Stamford, Connecticut, to Union Bank’s main office location at 205 Church 

Street, New Haven, Connecticut; and Applicant’s present main office and Union 

Bank's 10 branches would become branches of Applicant, increasing the 

number of its offices to 42.

Competition. Applicant operates its main office and six branches in Stamford, Connecticut (estimated 1967 population 108,400), and 24 other branches 

throughout western Fairfield County. Union Bank operates its main office and 

one branch in New Haven, Connecticut (estimated 1967 population 141,700), 

eight branches in southern New Haven County outside the city of New Haven, 

and one branch in Old Saybrook in Middlesex County. There appears to be 

very little competition between the participating banks. Their closest offices are 

about 13 miles apart; and the service areas, as they relate to banking office 

location, are separate and distinct with no overlapping. Furthermore, these 

offices are intervened by other banking office locations. Thus, competition 

between the participating banks for retail banking business is minimal. Competition between the participating banks for regional and national business, when 

placed in its proper context, is not substantial, and is overshadowed by competition in that market from the larger money market banks in New York and 

Boston.

The potential for significantly greater competition between the participating 

banks does not appear as a realistic probability. Under Connecticut's home 

office protection law, it is not possible for Applicant or Union Bank to enter by 

de novo branching into the towns which comprise the principal banking markets in Connecticut; and analysis indicates that the towns which are open to 

de novo branching provide few opportunities for profitable branch operation.

The concentration of banking resources in the service areas of the participating banks would not be substantially altered. The resulting bank would have 

about 28 percent of the IPC deposits held in offices of the commercial banks 

located in the two service areas; and if consideration is given to deposits held 

by offices of mutual savings banks in the two areas, this figure drops to about

15 percent. Moreover, the effects of this merger cannot realistically be 

appraised on the basis of the restricted "primary service areas” alone. The 

geography of Connecticut, and particularly the proximity of the southwestern 

portion of the State to New York City, dictates that banks in this portion of 

the State must in fact compete vigorously with the giant commercial and 

mutual savings banks in New York both for retail and wholesale banking business. Considering the overall competition the participating banks face, the 

competitive effects of this merger are not significant.

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The Board of Directors is of the opinion that the proposed merger would not 

substantially lessen competition, tend to create a monopoly, or in any other 

manner be in restraint of trade.

Financial and Managerial Resources and Prospects. The banking factors are 

satisfactory with respect to the participating banks individually, as they would 

be with respect to the resulting bank.

Convenience and Needs of the Community to be Served. The merger would 

have a favorable effect on banking services at all levels. It would particularly 

benefit medium-sized and larger customers in the service areas in that they 

would be provided with an additional local source for loans and specialized 

services such as international banking, municipal financing, and electronic data 

processing services.

On the basis of the above information, the Board of Directors has concluded 

that approval of the bank's application is warranted.

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Industrial Trust & Savings Bank

Muncie, Indiana

38,948 4 5

to merge with

Albany State Bank and Trust Company

Albany

3,623 1

S u m m a ry re p o rt by A tto rn e y G eneral, A p ril 16, 1969 

The closest offices of the merging banks are twelve miles apart with at least 

one branch of a competing Muncie bank intervening, but that branch is in 

Muncie. The applicant states that 0.2 percent of Industrial Trust's depositors 

also have accounts at the Albany Bank. In addition, loan accounts in common 

represent 0.3 percent of Industrial Trust's total loans and 4.3 percent of those 

at Albany. Thus, it appears that Industrial Trust is not a significant competitive 

alternative bank for residents of Albany although some existing competition 

would be eliminated as a result of the merger, particularly in the area between 

Muncie and Albany.

Since Indiana law does not permit either bank to branch de novo into the 

other’s community, this merger eliminates only the potential that Albany Bank 

might branch into other communities in the county not already served by a 

bank.

There are presently four banks operating 18 offices in Delaware County, of 

which Industrial Trust, with 22 percent of the county's commercial bank 

deposits ranks third. Albany Bank, the smallest bank in the county has 2 percent of such deposits. If this merger is consummated Industrial Trust will 

become the second largest bank in the county with 24 percent of total deposits and the number of banks in the county will decrease from four to three.

B asis fo r C o rp o ra tio n approval, Ju ly 1, 1969 

Industrial Trust & Savings Bank, Muncie, Indiana (Applicant), an insured 

State nonmember bank with deposits of $36,219,000, has applied, pursuant to 

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

the Corporation's prior approval to merge with Albany State Bank and Trust

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76 FEDERAL DEPOSIT INSURANCE CORPORATION

Company, Albany, Indiana (State), which has deposits of $3,263,000. The 

banks would merge under the charter and with the title of Applicant; and, as 

an incident to the merger, the sole office of State would become a branch of 

Applicant, increasing the number of its offices to five.

Competition. The service area of Applicant, population estimated to be 

86,200, is confined primarily to the city of Muncie and the immediate surrounding area, plus a small satellite service area around the community of 

Yorktown, where its only branch outside the city of Muncie is located. The area 

is rich in agricultural activities, and the city of Muncie contains diversified 

industrial complexes to complement its economic life.

The service area of State is confined to the community of Albany and its 

immediate surrounding area. The population of the service area is estimated to 

be 10,000, while there are approximately 2,100 residents of the community 

itself. Located within a diversified farming area, there has been little industrial 

development, and employment from the latter activity amounts to only about 

500 persons. Other residents are reported to commute to Muncie or Dunkirk, 

Indiana, for employment.

The main offices of the participating banks are 13 miles apart, with a 

branch office of a competing bank, located in the city of Muncie, intervening. 

The two banks operate in separate market areas, with very little competition 

between them. Little potential exists for competition in the future because of a 

State law which prohibits de novo branch offices being established in communities wherein an existing bank is already located. Elimination of competition 

does not appear to be a significant factor to this proposal.

Applicant is the third largest bank in its trade area as measured in terms of 

IPC deposits and the second largest based on total loans. As a result of this 

proposal, it would acquire approximately 1.8 percent of area deposits, moving 

it into second position in this respect. However, both of Applicant's closest 

competitors are also headquartered in Muncie, and it would appear that competition within the city will continue to be keen. The amount of change which 

would occur as a result of the proposed transaction is not significant, and 

there are six remaining competing banks that provide numerous banking alternatives within the trade area of the resulting bank. The injection of an aggressive larger bank in the Albany, Indiana, market area is expected to increase 

competition at that location.

The Board of Directors is of the opinion that the merger would not lessen 

competition, tend to create a monopoly, or in any other manner be in restraint 

of trade.

Financial and Managerial Resources and Future Prospects. Financial and 

managerial resources are satisfactory with respect to both participating banks 

and are so projected for the resulting bank. The earnings record of State has 

not been as favorable as Applicant’s; and the future prospects of State, as a 

part of the resulting bank, would be enhanced. Future prospects of the resulting bank are favorable.

Convenience and Needs of the Community to be Served. As a result of the 

merger, the Albany, Indiana, area would gain the advantage of a bank with a 

larger lending limit, more than $300,000 higher, than now available to State. 

While the proposal would not significantly benefit the trade area served by 

Applicant, it would permit the resulting bank to provide additional banking 

services for the Albany area.

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

that approval of the application is warranted.

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Central Carolina Bank & Trust Company

Durham, North Carolina

135,170 28 29

to merge with

Bank of Yadkin

Yadkinville

7,474 1

S u m m a ry re p o rt by A tto rn e y G eneral, M ay 22, 1969 

The closest offices of the merging banks are eighteen miles apart; branches 

of two additional banks lie within the intervening area. It is unlikely that any 

significant amount of direct competition would be eliminated by this merger.

Since North Carolina law permits state-wide branching, the merger would 

eliminate potential competition in that either bank could be permitted to 

branch de novo into the service area of the other. Bank of Yadkin, however, 

has never opened a de novo branch, and has confined its operational activities 

to Yadkin County. Central Bank has demonstrated an aggressive, expansionminded policy in the past, and could become a competitor of Bank of Yadkin 

through de novo branching in the Yadkinville vicinity.

B asis fo r C o rp o ra tio n approval, Ju ly 1, 1969 

Central Carolina Bank & Trust Company, Durham, North Carolina (Central), 

an insured nonmember bank with total resources of $135 million, has applied, 

pursuant to Section 18(c) and other provisions of the Federal Deposit Insurance Act, for the Corporation’s prior consent to merge with Bank of Yadkin, 

Yadkinville, North Carolina (Yadkin), which has total resources of $7.5 million, 

under the charter and with the title of Central and, incident thereto, to establish the sole office of Yadkin as a branch.

Competition. Central, operating 27 branches, is a regional bank offering a 

complete range of banking services. All but three of its offices are located 

within a 55-mile radius of Durham which, together with Chapel Hill (12 miles 

southwest) and Research Triangle Park (8 miles south), comprises the principal market area. The Durham area is heavily industrialized; and, through the 

Research Triangle Park, research development has become an important economic activity, spearheaded by the State’s three major universities which are 

located in the area. Agriculture continues to be an important segment of the 

economy. Yadkinville is located about 95 miles west of Durham, and the closest office of Central is at Mocksville, 19 miles southeast. Yadkin, the only bank 

in Yadkinville, serves a limited local area in which there is some industry but 

where agriculture is of major economic importance.

There is no overlapping of the service areas of Central and Yadkin because 

neither bank derives business from the service area of the other, and there are 

no known instances of deposit and loan customers using the facilities of both 

banks. Central, ranking eighth in size among all North Carolina banks, competes with offices of the 10 largest banks. It is much smaller than most of its 

major competitors, holding 2.3 percent of total deposits held by all banks competing in the combined service areas, as compared to 25.8 percent for the 

largest bank, 21.6 percent for the second largest, and 3.9 percent and 2.6 percent, respectively, for the sixth and seventh largest. The merger with Yadkin 

will increase Central's share by only 0.1 percent, and its ranking as eighth

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largest bank will not be changed. The addition of the sole office and resources 

of Yadkin will not alter its competitive stature to any significant degree. Major 

competition for Yadkin is provided by five branches of the State's fifth largest 

bank; and, in this respect, the substitution of a branch of Central for the sole 

office of Yadkin should tend to increase competition.

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

be in restraint of trade.

Financial and Managerial Resources and Future Prospects. These factors are 

satisfactory with respect to both participating banks and are so projected for 

the resulting bank.

Convenience and Needs of the Community to be Served. Yadkin, because of 

its comparatively limited resources and unit structure, is unable to provide a 

full range of banking services. As a result of the merger, the Yadkinville area 

would gain the advantage of a large regional bank which provides all types of 

banking facilities on a larger and broader scale and, thus, could better serve 

the convenience and needs of the community.

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

of the application is warranted.

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Bank of Pennsylvania

Reading, Pennsylvania 

to merge with

213,757 17 17

Washington Street Bank and Trust Company

Reading

(in organization)

465

S u m m a ry re p o rt by A tto rn e y G eneral, A p ril 22, 1969 

This merger is merely part of a corporate reorganization which will make 

Bank of Pennsylvania a wholly owned subsidiary of a one-bank holding company and as such will have no effect on competition.

B asis fo r C o rp o ra tio n approval, Ju ly 1, 1969 

Pursuant to Section 18(c) of the Federal Deposit Insurance Act, application 

has been filed by Bank of Pennsylvania, Reading, Pennsylvania, (Applicant), 

with total resources of $213.8 million for consent to merge with Washington 

Street Bank and Trust Company, Reading, Pennsylvania, (In organization), 

under the charter and with the title of the former. The resulting bank will operate from the present main office and 16 existing and three approved branch 

offices of Applicant.

The proposal involves the formation of a one-bank holding company to hold 

stock ownership of Bank of Pennsylvania through the simultaneous merger and 

reorganization with Washington Street Bank and Trust Company, an interim 

bank. The latter bank will not be in operation as a commercial bank prior to 

the merger. The same banking business will be performed by Bank of PennsylDigitized for FRASER 

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BANK ABSORPTIONS APPROVED BY THE CORPORATION 79

vania at all locations as was performed by it previous to the merger. The same 

management and personnel will be continued. The proposal will not, of itself, 

change the banking services which Applicant has provided usefully to its service area on a convenient and successful basis for many years. The proposal 

involves only a change in the form of organization of Bank of Pennsylvania 

and will not have any adverse effect upon competition. All factors required to 

be considered relative to the application have been favorably resolved.

On the basis of the above information, the Board of Directors has concluded 

that approval of the application is warranted.

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Bushwick Savings Bank

New York (Brooklyn), New York 

(change title to 

Anchor Savings Bank) 

to merge with

201,588 4 8

Anchor Savings Bank

New York (Brooklyn)

388,155 4

S u m m a ry re p o rt by A tto rn e y G eneral, M arch 10, 1969 

The proposed merger would combine the eleventh and the twentieth largest 

savings bank in Brooklyn, making the resulting bank, with nine offices, the 

sixth-largest institution of its kind headquartered in Brooklyn.

Deposits of the combined banks would total $538.8 million, representing 5.3 

percent of the more than $10 billion in deposits held by all savings banks 

headquartered in Brooklyn.

The resulting bank would have $433.9 million or 1.67 percent of the $25.9 

billion total real estate mortgage loans held by savings banks in the New 

York City area.

B asis fo r C o rp o ra tio n approval, Ju ly 9, 1969 

Bushwick Savings Bank, New York (Brooklyn), New York (Bushwick), an 

insured mutual savings bank with total deposits of about $187,093,000, has 

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

Insurance Act, for the Corporation’s prior approval to merge with Anchor Savings Bank, New York (Brooklyn), New York (Anchor), also an insured mutual 

savings bank, which has total deposits of about $356,744,000. The banks 

would merge under the charter of Bushwick and with the title “ Anchor Savings 

Bank"; and, incident to the merger, the main office and three existing and one 

approved but unopened branch offices of Anchor would become the main office 

and branch offices, respectively, of the resulting bank. The resulting bank 

would have a total of nine banking offices.

Competition. Bushwick operates three offices in the Borough of Brooklyn 

and one in Nassau County, a suburban area east of Brooklyn. Anchor operates 

two offices in the Borough of Brooklyn, one in the Borough of Richmond 

(Staten Island), one in Nassau County, and has approval for a branch office,

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as yet unopened, in Manhattan. Despite the concentration of banking offices in 

the Borough of Brooklyn, competition between the subject banks is practically 

nonexistent. Their closest offices are some 4 miles apart, and there are numerous offices of other savings banks, savings and loan associations, and commercial banks situated between them.

Competition in New York City is intense among banks in particular and financial institutions in general. This merger would have virtually no effect on the 

present concentration of deposits or loans or on existing competition. Each of 

the participating banks has less than 2 percent of the total deposits and of 

the total loans held by savings banks in New York City, and the resulting bank 

would continue to have less than 2 percent of each. Furthermore, there are 46 

other mutual savings banks operating 219 offices in New York City. Many of 

these institutions are far larger than the resulting bank would be. In addition, 

substantial competition in New York City is provided by commercial banks and 

savings and loan associations. In the city there are 823 commercial bank 

offices holding an estimated $4.6 billion savings and 143 offices of savings 

and loan associations holding savings estimated to be in excess of $4 billion. 

Total savings in New York City in the commercial banks, savings and loan 

associations, and savings banks combined is estimated to be some $38 billion; 

and the resulting bank’s share wo,uld be less than 1.5 percent.

The Board of Directors is of the opinion that the proposed merger would not 

substantially lessen competition, tend to create a monopoly, or in any other 

manner be in restraint of trade.

Financial and Managerial Resources and Prospects. The banking factors are 

considered acceptable with respect to the individual participating banks, but 

they are even more favorable with respect to the resulting bank.

Convenience and Needs of the Community to be Served. Thrift services and 

mortgage loans have been provided by each of the participating institutions in 

its own area for over fifty years. The proposed merger would produce a betterbalanced bank with respect to surplus, earnings, and management, and 

thereby permit improved service to the communities.

On the basis of the above information, the Board of Directors has concluded 

that approval of the bank's application is warranted.

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Roachdale Bank and Trust Company

Roachdale, Indiana 

to acquire the assets and assume

the deposit liabilities of

7,544 2 3 3

Russellville Bank

Russellville

1,987 1

S u m m a ry re p o rt by A tto rn e y G eneral, June 17, 1969 

Russellville Bank is situated ten miles west of Roachdale. There are no 

banks in the intervening area. According to the application in Roachdale 

Bank's service area, Russellville Bank has 1.5 percent of total IPC deposits 

while in its own area it has 2.3 percent and Roachdale Bank has 11 percent.

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Thus, it would appear that there is some competition between the two banks 

which would be eliminated by the acquisition.

Concurrently with its proposal to acquire Russellville Bank, Roachdale Bank 

has applied to the Federal Reserve Board for approval to merge The State 

Bank of Russellville ($1.5 million total deposits), the only other bank in the 

town. Approval of both applications would eliminate the independent existence 

of the only two banks in Russellville and would eliminate direct competition 

existing between them, it is contemplated that Russellville Bank would be 

closed and the State Bank of Russellville would be operated as a branch of 

Roachdale Bank.

Acquisition of both Russellville banks is Roachdale Bank’s only means of 

entry in Russellville since Indiana law prohibits branching in a town where 

another bank maintains its home office.

While Putnam County overstates the area in which this merger will have its 

effect, the increase in concentration in the county as a whole will be substantial. Each of the two acquired banks has three percent of county deposits, and 

the combined result will be to increase Roachdale Bank’s share from 14 to 20 

percent of county deposits.

Since the proposed merger of State Bank of Russellville would eliminate 

some direct competition between that bank and Roachdale Bank, and since, it 

is a step in a larger program of acquisitions which would increase concentration of control over deposits, this merger will have an adverse competitive 

effect.

B asis fo r C o rp o ra tio n approval, Ju ly 16, 1969

Roachdale Bank and Trust Company, Roachdale, Indiana (Applicant), a State 

member bank with total deposits of $6,947,000, has applied, pursuant to the 

provisions of Section 18(c)(1)(B) of the Federal Deposit Insurance Act, for the 

Corporation’s prior consent to acquire the assets of and assume liability to pay 

deposits of $1,711,000 made in Russellville Bank, Russellville, Indiana (Noninsured Bank), a noninsured State bank.

Pursuant to other provisions of Section 18(c), Applicant has filed a concurrent 

application with the Board of Governors of the Federal Reserve System for 

consent to merge with The State Bank of Russellville, Russellville, Indiana (Insured Bank), an insured nonmember bank which has deposits of $1,580,000, 

under Applicant’s charter and with the title “ Tri-County Bank & Trust Company.” 

The sole office of Noninsured Bank will be discontinued and its operations combined with those of the sole office of Insured Bank which will be established as 

a branch of Applicant.

Competition. Roachdale and Russellville, both in Putnam County, are 10 

miles apart (east-west), with no banking offices intervening. The service areas 

are contiguous; however, U.S. Highway 231, running north-south about midway 

between them, has an important effect on traffic patterns and serves as an 

effective barrier between the two service areas. There is no significant amount 

of competition which would be eliminated between Applicant and the two Russellville banks.

Among nine banks competing in the combined service area, Applicant ranks 

fifth, holding 6.3 percent of the aggregate deposits. Insured Bank and Noninsured Bank are the smallest, holding 1.4 percent and 1.6 percent, respectively. 

The modest increase in the size of Applicant as a result of the two transactions would not change its ranking as fifth among the seven remaining banks. 

Its competitive stature in the Roachdale service area would not be changed 

significantly, except for a larger loan limit.

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Russellville is a rural farming community which is gradually losing its importance in the local economy as most residents find employment in larger population centers. It is the smallest town in Indiana (population 372) with two 

banks for which it no longer can provide adequate support. Neither bank generates sufficient business to attract management personnel capable of providing modern banking services, and loan limits are insufficient to serve the credit 

needs of the larger farms in the surrounding area. Past efforts to merge these 

two banks have failed. Under Indiana banking law, branching is restricted to 

the head office county and prohibited in a town where there is a unit bank. 

Consequently, Applicant cannot legally acquire only one of the Russellville 

banks and establish a branch unless the other is liquidated. The two Russellville banks do not now compete effectively with each other because Noninsured Bank does not accept savings accounts or offer safe deposit facilities. 

Also, divided factions in the community tend to restrict competition for 

demand deposits. The conversion of the two banks into a branch of Applicant 

will enable the latter to compete for business in that locality, al.ong with the 

other area banks, and at the same time provide the public in the Russellville 

area with a wider range of improved banking services.

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

manner be in restraint of trade.

Financial and Managerial Resources and Future Prospects. Financial 

resources and future prospects are favorable for this proposal, and the merger 

and purchase and assumption transaction will solve a management succession 

problem in both Insured Bank and Noninsured Bank.

Convenience and Needs of the Community to be Served. The merger and 

purchase and assumption transaction will enable Applicant to better serve the 

financial needs of the Russellville farming community through greater 

resources and a larger lending limit. It will provide more aggressive management, including better-trained personnel, and can offer stronger community 

leadership. Applicant plans to enlarge and modernize the banking quarters and 

to provide locally improved trust services, customer investment services, safe 

deposit facilities, night depository, savings department, and increased activity 

in consumer loans and residential mortgages to better serve the convenience 

and needs of the Russellville community.

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

of the purchase and assumption transaction is warranted.

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Casey State Bank

Casey, Iowa 

(change title to

Security State Bank) 

to merge with

2,708 1 2

Menlo Savings Bank

Menlo

2,399 1

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S u m m a ry re p o rt by A tto rn e y G eneral, J u ly 8, 1969

Menlo (population 500) and Casey (population 600) are located in Beaver 

and Thompson Townships, respectively, of Guthrie County, Iowa. This is a predominantly agricultural area.

Since the two banks involved are commonly owned and managed, and have 

been so since their inception, no adverse competitive effect is likely to occur 

from this merger.

B asis fo r C o rp o ra tio n approval, Ju ly 25, 1969

Casey State Bank, Casey, Iowa (Casey Bank), an insured nonmember bank 

with total resources of $2,700,000, has applied, pursuant to Section 18(c) and 

other provisions of the Federal Deposit Insurance Act, for the Corporation’s 

prior consent to merge with Menlo Savings Bank, Menlo, Iowa (Menlo Savings), 

an insured nonmember bank which has total resources of $2,400,000, under 

the charter of Casey Bank and with the title “ Security State Bank." Consent is 

also requested to establish the sole office of Menlo Savings as a branch (bank 

office under Iowa law) of the resulting bank.

Competition. Casey and Menlo, with 1960 populations of 589 and 421, 

respectively, are rural agricultural communities located 6 miles apart in western Iowa, some 50 miles west of Des Moines. The economy of the area is 

dependent almost entirely upon agriculture in which livestock and corn are the 

major sources of income. The service areas of Casey Bank and Menlo Savings 

are contiguous but do not overlap to any significant degree. In any event, 

there is no meaningful competition between the two banks because of 

common ownership and active management— a situation which has been present since Casey Bank was established as a unit bank in 1955 through the 

spin-off of the Casey Branch of Menlo Savings, which had been established in 

1931. In practice, the two unit banks have operated almost as one. The 

merger will restore the pre-1955 main office-branch relationship, except that 

the main office will be in Casey instead of Menlo, and will formalize the existing relationship in one corporate organization.

Casey Bank and Menlo Savings presently are the two smallest banks among 

six competing in their combined service area, holding 9.4 percent and 7.6 percent, respectively, of the total bank deposits. The resulting bank will rank 

third, in terms of total deposits (17 percent); however, it will not be significantly larger than the two banks which then will rank as the two smallest— 

15.8 percent and 14.3 percent, respectively, of the total deposits. It will be 

substantially smaller than the two largest banks which are located in the 

county seat towns of Greenfield and Guthrie Center, each holding one-fourth or 

more of the total deposits.

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

be in restraint of trade.

Financial and Managerial Resources and Future Prospects. These factors are 

satisfactory with respect to both participating banks and are so projected for 

the resulting bank.

Convenience and Needs of the Community to be Served. Restoration of the 

main office-branch relationship in lieu of the two-unit bank operation will not 

alter the convenience and needs factor. The resulting bank will provide the 

same services as are now being provided at the same locations.

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

of the application is warranted.

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84 FEDERAL DEPOSIT INSURANCE CORPORATION

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West Side Savings Bank

New York, New York 

(change title to

Prudential Savings Bank) 

to merge with

142,346 3 7

The Prudential Savings Bank

New York (Brooklyn)

169,772 4

S u m m a ry re p o rt by A tto rn e y G eneral, A p ril 25, 1969

The closest offices of the two banks are 3.5 miles apart, and there are 

numerous alternatives (other savings banks, commercial banks, and savings 

and loan associations) in the intervening areas. Some direct competition exists 

for both loans and for thrift accounts of residents of and commuters to New 

York City which will be eliminated by the merger.

In 1968, the boroughs of Manhattan and Brooklyn were served by 37 savings banks with 119 branches controlling about $27.3 billion in deposits.

The resulting bank would hold about 1.1 percent of savings deposits in Manhattan and Brooklyn savings banks. The addition of savings deposits held by 

commercial banks and by savings and loan associations located in these boroughs would reduce this percentage.

This merger would appear to be part of a trend toward concentration of 

deposits in a steadily decreasing number of savings banks in New York City.

B asis fo r C o rp o ra tio n approval, Ju ly 25, 1969

West Side Savings Bank, New York (Manhattan), New York (West Side), an 

insured mutual savings bank with total deposits of about $133,678,000, has 

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

Insurance Act, for the Corporation’s prior approval to merge with The Prudential Savings Bank, New York (Brooklyn), New York (Prudential), also an insured 

mutual savings bank, which has total deposits of about $157,592,000. The 

banks would merge under the charter of West Side and with the title “ Prudential Savings Bank"; and, as an incident to the merger, the four offices of Prudential would become branches of West Side, increasing the number of its 

offices to seven.

Competition. West, Side operates its main office and two branches in the 

Greenwich Village area on the west side of lower Manhattan. Prudential operates a main office and two branches in Brooklyn and a third branch in Elmont, 

Nassau County, a suburban area east of the city. The 1960 population of New 

York City was about 7,782,000.

Competition between the participating banks is practically nonexistent. Their 

closest offices are some 3.5 miles apart, and the East River effectively separates the primary service areas of these two offices. In addition, there are 

numerous offices of other savings banks, savings and loan associations, and 

commercial banks situated between them.

Competition in New York City and suburban Nassau County is intense 

among banks in particular and financial institutions in general. This merger 

would have virtually no effect on the present concentration of deposits or 

loans or on existing competition. West Side is the smallest savings bank headDigitized for FRASER 

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BANK ABSORPTIONS APPROVED BY THE CORPORATION 85

quartered in Manhattan, and Prudential is the smallest headquartered in 

Brooklyn. Each has approximately 0.5 percent of the total deposits and total 

loans of savings banks in New York City, and the resulting bank would have 

approximately 1 percent of each. Furthermore, there are 46 other New York 

City mutual savings banks operating 235 offices. Many of these institutions are 

far larger than the resulting bank would be. In addition, substantial competition is provided by commercial banks and savings and loan associations. 

Located in New York City and Nassau County are 179 offices of savings and 

loan associations which hold an estimated $5 billion of savings and 1,037 

offices of commercial banks holding an estimated $6 billion of savings. Total 

savings in New York City and Nassau County commercial banks, savings and 

loan associations, and savings banks is estimated to be over $39 billion; and 

the resulting bank's share would be approximately 0.8 percent.

The Board of Directors is of the opinion that the proposed merger would not 

substantially lessen competition, tend to create a monopoly, or in any other 

manner be in restraint of trade.

Financial and Managerial Resources and Prospects. The banking factors are 

considered acceptable with respect to the individual participating banks, but 

are even more favorable with respect to the resulting bank.

Convenience and Needs of the Community to be Served. Thrift services and 

mortgage loans have been provided by each of the participating institutions in 

its own area for over fifty years. The proposed merger would produce a betterbalanced bank with respect to surplus, earnings, and management, and thereby 

permit improved service to the communities.

On the basis of the above information, the Board of Directors has concluded 

that approval of the bank’s application is warranted.

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First Virginia Bank

Annandale, Virginia 

to merge with

99,128 17 39

Old Dominion Bank

Arlington

and

125,707 16

Falls Church Bank

Falls Church

51,310 6

S u m m a ry re p o rt by A tto rn e y G eneral, A p ril 25, 1969 

The three banks involved in the proposed merger have all been subsidiaries 

of the Virginia Bankshares Corporation, a registered bank holding company, for 

several years. Therefore, we conclude that the proposed merger will not eliminate any effective competition.

B asis fo r C o rp o ra tio n approval, Ju ly 3 1, 1969 

Pursuant to Section 18(c) and other provisions of the Federal Deposit Insurance Act, an application has been filed with the Corporation for its prior consent to merge Old Dominion Bank, Arlington, Virginia (Old Dominion), an 

insured state nonmember bank with total deposits of $110,922,000, and Falls 

Church Bank, Falls Church, Virginia (Church Bank), an insured State nonmemDigitized for FRASER 

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

ber bank with total deposits of $51,310,000, with Mount Vernon National Bank 

and Trust Company of Fairfax County, Annandale, Virginia (Continuing Bank), 

with total deposits of $88,020,000, which converted from a national association to an insured State nonmember bank on June 6, 1969, with the title 

“ First Virginia Bank.” The 22 present offices and the five approved but unopened branches of Old Dominion and Church Bank would become branches of 

Continuing Bank, increasing the number of offices of Continuing Bank to 46.

Competition. All offices of Continuing Bank will operate in one general service area consisting of a northern Virginia section which is part of the greater 

Washington, D.C., metropolitan area. This service area consists of Arlington 

County, Fairfax County, and the independent cities of Alexandria and Falls 

Church. The main offices of the participating banks are within 3 to 4 miles of 

each other, but there are numerous branches of competing banks intervening. 

Additionally, each of the participating banks is owned by the same registered 

bank holding company, and this proposal would not increase the holding company’s share of the market in northern Virginia. There is no significant amount 

of actual or potential competition, between the participating banks, which 

would be eliminated by this proposal, and its consummation would have no 

discernible anticompetitive effects.

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

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

manner be in restraint of trade.

Financial and Managerial Resources and Future Prospects. These factors are 

satisfactory with respect to the three participating banks and are so projected 

for Continuing Bank.

Convenience and Needs of the Community to be Served. As a result of the 

merger, the trade area would gain the advantage of a larger bank which has 

an increased lending limit providing all types of banking operations on a larger 

and broader scale and which could, as a result, better serve the convenience 

and needs of the community.

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

that approval of the application is warranted.

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Bev Bank

Chicago, Illinois 

(in organization; change title to 

Beverly Bank) 

to acquire the assets and assume

the deposit liabilities of

1

Beverly Bank

Chicago

126,802 1

S u m m a ry re p o rt by A tto rn e y G eneral, June 2, 1969 

[This proposal] is part of a transaction which will result in a presently existing 

bank becoming a wholly owned subsidiary of a one-bank holding company. 

Thus, [this] merger is merely part of a corporate reorganization and as such will 

have no effect on competition.

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BANK ABSORPTIONS APPROVED BY THE CORPORATION 87

B asis fo r C o rp o ra tio n approval, A u g u s t 7, 1969

Pursuant to Sections 5 and 18(c) and other provisions of the Federal 

Deposit Insurance Act, applications have been filed for Federal deposit insurance for Bev Bank, Chicago, Illinois (Bev), a proposed new bank in organization, and for consent to acquire the assets and assume the liability for deposits made in Beverly Bank, Chicago, Illinois (Beverly), which has only one office 

and total resources of $126,802,400. The resulting bank would operate under 

the charter of Bev, and with Beverly's title, at the present location of Beverly.

The proposal involves the formation of a one-bank holding company to hold 

stock ownership of the resulting bank. Bev will not be in operation as a commercial bank prior to consummation of the transaction and will begin business 

at the present location of Beverly with the latter’s assets, liabilities, capital, 

and management.

Beverly has provided needed and useful banking services to its trade area 

on a convenient and successful basis for many years. The subject proposal will 

not alter these services or the service area and, involving only a change in 

form of corporate organization, will, of itself, have no effect on competition. All 

factors required to be considered relative to each application are favorably 

resolved.

On the basis of the above information, the Board of Directors has concluded 

that approval of the applications is warranted.

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Bankers Trust Company of Windsor Heights

Windsor Heights, Iowa 

(proposed new bank) 

to acquire a portion of the assets and

assume a portion of the deposit

liabilities of

1

Bankers Trust Company

Des Moines

6,9003 1

S u m m a ry re p o rt by A tto rn e y G eneral, A p ril 25, 1969 

Since no other bank presently maintains a limited facility banking office in 

Windsor Heights which would be required to close, and since new banks could 

be established in that community, and since there are presently alternative 

banks a few miles from Windsor Heights, the proposed transaction would not 

appear to have any significantly adverse effect on competition.

B asis fo r C o rp o ra tio n approval, A u g u s t 7, 1969 

The proposals would establish a new bank in Windsor Heights, Iowa, 

through the acquisition and assumption of a portion of the assets, liabilities, 

and capital accounts of Bankers, a $137.7 million bank headquartered in Des 

Moines, 5.3 miles east of Applicant. The proposed new bank would replace 

Bankers' limited-service Windsor Heights office. Applicant would acquire those 

portions of deposits and loans which represent the amounts estimated to originate in the Windsor Heights area. Following consummation of the proposals, 

Bankers and the proposed new bank would be commonly owned, controlled,

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

and managed. There are no other banks in Windsor Heights, although the 

Supervisory Authority has confirmed that proponents of a bank yet to be organized have requested a charter for an undisclosed site in that community. It is 

apparent from the nature of the proposed transactions that the participating 

banks are not now in competition, and the resulting common ownership and 

control precludes competition between them in the future.

The purchase and assumption transaction would not lessen competition, 

tend to create a monopoly, or in any other manner be in restraint of trade.

All factors required to be considered relative to the applications have been 

favorably resolved.

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

of the applications is warranted.

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Esperson State Bank

Houston, Texas

(in organization; change title to 

Bank of Texas)

200 1

to acquire the assets and assume

the deposit liabilities of

Bank of Texas 

Houston

79,197 1

S u m m a ry re p o rt by A tto rn e y G eneral, June 2, 1969 

[This proposal] is part of a transaction which will result in a presently existing 

bank becoming a wholly owned subsidiary of a one-bank holding company. 

Thus, [this] merger is merely part of a corporate reorganization and as such will 

have no effect on competition.

B asis fo r C o rp o ra tio n approval, A u g u s t 7, 1969 

Pursuant to Sections 5 and 18(c) and other provisions of the Federal 

Deposit Insurance Act, applications have been filed for Federal deposit insurance for Esperson State Bank, Houston, Texas (Esperson Bank), a proposed 

new bank in organization, and for consent to acquire the assets and assume 

the liability for deposits made in Bank of Texas, Houston, Texas (Texas Bank), 

which has only one office and total resources of $79,197,000. The resulting 

bank would operate under the charter of Esperson Bank, and with Texas 

Bank's title, at the present location of Texas Bank.

The proposal involves the formation of a one-bank holding company to hold 

stock ownership of the resulting bank. Esperson Bank will not be in operation 

as a commercial bank prior to consummation of the transaction and will begin 

business at the present location of Texas Bank with the latter’s assets, liabilities, capital, and management.

Texas Bank has provided needed and useful banking services to its trade 

area on a convenient and successful basis since 1957. The subject proposal 

will not alter these services or the service area and, involving only a change in 

form of corporate organization, will, of itself, have no effect on competition. All 

factors required to be considered relative to each application are favorably 

resolved.

On the basis of the above information, the Board of Directors has concluded 

that approval of the applications is warranted.

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BANK ABSORPTIONS APPROVED BY THE CORPORATION 89

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Johnstown Bank and Trust Company

Johnstown, Pennsylvania 

to merge with

53,984 8 9

The First National Bank of Bakerton

Bakerton

1,523 1

S u m m a ry re p o rt by A tto rn e y G eneral, M arch 12, 1969

Bakerton Bank (total deposits $1.5 million) operates its sole office in Bakerton, Pennsylvania. Bakerton (population 1,057) is a small mining community 

some 30 miles north of Johnstown in rural Cambria County.

The closest offices of the merging banks are 14 miles apart and there are 

intervening banking alternatives. Thus, it does not appear that this merger will 

eliminate any significant existing competition. Pennsylvania law would permit 

Johnstown Bank to branch de novo into Bakerton, but the size of the Bakerton 

community and the existence of other likely potential entrants reduce the significance of the elimination of potential competition by this merger.

We conclude that this merger is not likely to have a significantly adverse 

effect on competition in Cambria County.

B asis fo r C o rp o ra tio n approval, A u g u s t 14, 1969

Johnstown Bank and Trust Company, Johnstown, Pennsylvania (Applicant), 

an insured State nonmember bank with total deposits of $48,977,400, has 

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

Insurance Act, for the Corporation's prior approval to merge with The First 

National Bank of Bakerton, Bakerton, Pennsylvania (National), which has total 

deposits of $1,353,300. The banks would merge under the charter and with 

the title of Applicant; and, as an incident to the merger, the one office of 

National would become a branch of Applicant, increasing the number of its 

offices to nine.

Competition. Johnstown (population 53,900) is located in southern Cambria 

County, approximately 70 miles east of Pittsburgh. In 1960 the population of 

the Johnstown, Pennsylvania, SMSA, which consists of Cambria and Somerset 

Counties, was 280,733. The economy of Johnstown and the surrounding area 

is dominated by steel production and related products. All of Applicant's 

offices are in or near Johnstown. The most distant office is at New Florence,

16 miles northwest of Johnstown.

Bakerton is an unincorporated village situated in northern Cambria County 

approximately 30 miles northeast of Johnstown. It has a population of 1,100, 

and the local economy is primarily dependent upon coal mining. National's primary trade area is delineated as being the area within an 8-mile radius of Bakerton.

The main offices of the participating banks are 30 miles apart, and the shortest distance between offices is the 24 miles between Vinco and Bakerton. The 

trade areas served by Applicant and National do not overlap, and there are 

other banking offices in the intervening area. There is very little, if any, direct 

competition which would be eliminated by this proposed transaction.

Applicant’s principal competitor is United States National Bank in Johnstown, which is more than twice as large as Applicant. United States National 

Bank in Johnstown has a branch at Carrolltown, 3 miles east of Bakerton, and

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

a branch at Ebensburg, 12 miles south of Bakerton. Therefore, it is also 

National’s primary competitor. This proposed transaction would increase Applicant’s share of the relevant market by less than 1 percent.

Legally each of the participating banks could branch de novo into the trade 

area served by the other bank, but this does not seem likely. In the past, 

National has not expanded by de novo branching, and in view of the much 

larger banks operating in Applicant’s trade area it does not seem probable that 

National would branch de novo into that area in the future. Applicant has not 

entered National’s trade area by de novo branching, and in view of the existing banking offices in that area it does not appear to be a desirable area for 

Applicant to branch de novo.

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

in restraint of trade.

Financial Resources. The financial resources are satisfactory with respect to 

both participating banks and are so projected for the resulting bank.

Managerial Resources. Following the death of National's former executive 

officer in September of last year, the bank was faced with a serious management problem. At the request of National, Applicant has been providing National 

with an executive officer since October 1968. This proposed transaction would 

solve National's management problem; but absent the merger, National would 

again have a serious management problem. The resulting bank would have 

adequate managerial resources.

Future Prospects. Applicant has been a much more aggressive competitor 

than National and has grown much faster. The future prospects of National, as 

a part of the resulting bank, would be enhanced; and the future prospects of 

the resulting bank are favorable.

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

merger would have no significant effect in the Johnstown area, but it would 

improve the quantity and quality of banking services in the Bakerton area.

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

that approval of the application is warranted.

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Commonwealth Bank and Trust Company

Muncy, Pennsylvania 

to merge with

30,087 6 7

The First National Bank of Hughesville

Hughesville

5,841 1

S u m m a ry re p o rt by A tto rn e y G eneral, June 18, 1969 

The closest offices of First National Bank of Hughesville (FNB) and Commonwealth Bank and Trust Company (CBT) are located in Hughesville and 

Muncy, respectively, approximately four miles apart. No banking alternatives 

intervene. Approval of the merger would leave only one independent commercial banking alternative in both Hughesville and Muncy. The merger would 

eliminate direct competition between the banks for both deposits and loans.

The Muncy-Hughesville area is served by nine unit banks. CBT controls

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approximately 8 percent of total deposits and 7 percent of IPC demand deposits in the area; merger with FNB would nearly double those shares. The resulting bank would hold the second largest share of area deposits. These statistics 

may understate the competitive position of the resulting bank for CBT’s total 

deposits make CBT more than twice the size of its nearest Muncy-Hughesville 

competitor.

We conclude that this merger would have an adverse effect on competition.

B asis fo r C o rp o ra tio n approval, A u g u s t 14, 1969

Commonwealth Bank and Trust Company, Muncy, Pennsylvania (Applicant), 

an insured nonmember bank with total deposits of $26,817,000, has applied, 

pursuant to Section 18(c) and other provisions of the Federal Deposit Insurance Act, for the Corporation’s prior approval to merge with The First 

National Bank of Hughesville, Hughesville, Pennsylvania (Other Bank), which 

has total deposits of $5,351,000. The banks would merge under the charter 

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

office of Other Bank would become a branch of Applicant, increasing the 

number of its offices to seven.

Competition. Applicant's main office in Muncy and Other Bank’s main office 

in Hughesville are located approximately 4 miles apart and within 15 miles of 

the city of Williamsport, Lycoming County. Both main offices are also located 

in Lycoming County and are considerably removed from Applicant's five 

branches located in Tioga and Potter Counties to the north. The proposed 

merger would have little or no effect on competition in the areas served by the 

branches of Applicant and would have only a minimal effect on competition in 

the areas served by the respective main offices of the participating banks. 

The combined service areas of the two main offices (Muncy-Hughesville service area) include the city of Williamsport and have a population in excess of 

100,000. Competing in this service area are several banks, headquartered in 

Williamsport, which are substantially larger than the resulting bank would be, 

as well as various other smaller banks located within Muncy and Hughesville 

and in nearby communities. The resulting bank would hold a relatively small 

share of IPC deposits and loans in the Muncy-Hughesville service area, about 5 

percent of each, and would rank fourth in size among competing banks. In 

each of the communities most immediately affected, Muncy and Hughesville, 

an independent unit bank will continue in competition with the resulting bank 

and will provide a convenient alternative for banking services. Some minimal 

loss of direct competition would result from the merger, particularly in the 

area between Muncy and Hughesville. There would be little, if any, loss of 

potential competition in the foreseeable future since although both participating banks could branch de novo into the communities served by the other, the 

prospects for such happening appear remote in view of the small size of these 

communities and the presence of existing banking offices serving their needs. 

Nonbank competition for savings and mortgage loans in the Muncy-Hughesville 

service area is provided by two sizeable savings and loan associations located 

in Williamsport. Various sales finance and personal loan companies operate 

throughout Lycoming County and offer substantial competition for floor plan 

and installment types of loans. An office of the Farmers Home Administration 

in Williamsport, as well as several sizeable credit unions, also offers noteworthy competition for various types of loans.

The Board of Directors is of the opinion that the proposed merger would not 

substantially lessen competition, tend to create a monopoly, or in any other 

manner be in restraint of trade.

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

Financial and Managerial Resources and Future Prospects. Financial 

resources are satisfactory with respect to both participating banks. Managerial 

resources of Applicant are satisfactory. Other Bank’s chief executive officer is 

nearing retirement, and management succession has become a problem which 

would be solved by the proposed merger. Management of the resulting bank 

would be able to operate the larger institution in a satisfactory manner. The 

earnings record of Other Bank has not been as good as Applicant’s; and the 

future prospects of Other Bank, as part of the resulting bank, would be 

enhanced. Future prospects of the resulting bank are favorable.

Convenience and Needs of the Community to be Served. Merger would 

permit the resulting bank to better satisfy the growing need for larger amounts 

of credit in the areas served by offices of both participating banks. Merger 

would also bring to the Hughesville community a full line of trust services 

presently offered by Applicant. Neither of the banks presently operating in 

Hughesville offer any trust services. Applicant has computerized many of its 

banking services and the resulting benefits would become available to customers of Other Bank, which has no computerized applications. Overall, the convenience and needs of the communities involved could be better served by the 

resulting bank than by either of the participants separately.

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

of the application is warranted.

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Reagan State Bank

Big Lake, Texas 

(proposed new bank) 

to acquire a portion of the assets

and assume the deposit liabilities of

400 1

The Big Lake State Bank

Big Lake

5,047 1

Approved under emergency provisions. No report requested from the Attorney General.

B asis fo r C o rp o ra tio n approval, A u g u s t 28, 1969

Pursuant to Sections 5 and 18(c) of the Federal Deposit Insurance Act, 

applications have been filed by Reagan State Bank, Big Lake, Texas, for Federal deposit insurance and for consent to purchase certain assets and assume 

the deposit liabilities of The Big Lake State Bank, Big Lake, Texas, an insured 

nonmember bank which has been closed and is in the hands of the Banking 

Commissioner of the State of Texas.

Estimated losses in the assets of The Big Lake State Bank exceed its capital 

funds. The Board of Directors has found that it must act immediately in 

approving the applications to prevent the probable failure of The Big Lake 

State Bank.

Big Lake, Texas, the county seat of Reagan County, has a population of 

about 2,700, with an estimated trade area of 6,700 residents. The Big Lake

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State Bank, the only bank in the community and Reagan County, has operated 

for many years and had developed a sizable volume of business before being 

closed. It is expected that Reagan State Bank will successfully replace the 

former institution.

On the basis of the above information and other information available to the 

Corporation, the Board of Directors has concluded that approval of the applications for Federal deposit insurance and consent to the assumption transaction 

is warranted.

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Allen Bank and Trust Company

Fort Wayne, Indiana 

(in organization; change title to 

Indiana Bank and Trust Company of 

Fort Wayne) 

to merge with

Indiana Bank and Trust Company of

400 7

Fort Wayne

Fort Wayne

118,620 7

S u m m a ry re p o rt by A tto rn e y G eneral, J u ly 2, 1969

The proposed merger is part of a transaction which will result in Allen Bank

& Trust Company becoming a wholly owned subsidiary of a one-bank holding 

company. Thus, the merger is merely part of a corporate reorganization and as 

such will have no effect on competition.

B asis fo r C o rp o ra tio n approval, S e p te m b e r 4, 1969

Pursuant to Sections 5 and 18(c) and other provisions of the Federal 

Deposit Insurance Act, applications have been filed for Federal deposit insurance for Allen Bank and Trust Company, Fort Wayne, Indiana (New Bank), a 

proposed new bank in organization; and for consent to merge with Indiana 

Bank and Trust Company of Fort Wayne, Fort Wayne, Indiana (Old Bank), an 

operating nonmember insured bank; and for permission to establish six 

branches. Old Bank presently operates seven offices and has total resources of 

$118 million. The resulting bank would operate under the charter of New 

Bank, and with Old Bank's title, at the seven locations where Old Bank is now 

operating.

The proposal involves the formation of a one-bank holding company to hold 

stock ownership of the resulting bank. New Bank will not be in operation as a 

commercial bank prior to consummation of the transaction and will begin business at the present locations of Old Bank with the latter's assets, liabilities, 

capital, and management.

Old Bank has provided needed and useful banking services to its trade area 

on a convenient and successful basis for many years. The subject proposal will 

not alter these services or the service area and, involving only a change in 

form of corporate organization, will, of itself, have no effect on competition. All 

factors required to be considered relative to each application are favorably 

resolved.

On the basis of the above information, the Board of Directors has concluded 

that approval of the applications is warranted.

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94 FEDERAL DEPOSIT INSURANCE CORPORATION

No. 44

Resources

(in

thousands

of d ollars)

B anking O ffices

In

operation

To be

operated

State Bank and Trust Company 178,125 42 45

Greenwood, South Carolina

to merge with

The Carolina Bank and Trust Company

of Charleston 16,616 3

Charleston

S u m m a ry re p o rt by A tto rn e y G eneral, Ju ly 30, 1969

State Bank is the fourth largest bank in South Carolina; it is the fourth largest of four commercial banks in South Carolina which maintain statewide operations. On December 31, 1968, State Bank had total assets of $142.3 million 

and total deposits of $130 million (including IPC demand deposits of $62.2 

million). State Bank maintains its head office and three branch offices in 

Greenwood and twenty-nine additional branches most of which are located in 

the western part of South Carolina.

Carolina Bank operates its head office and two branch offices in Charleston, 

South Carolina. On December 31, 1968, Carolina Bank had total assets of 

$16.3 million and total deposits of $14.2 million (including IPC demand deposits of $6.1 million).

There is, apparently, no substantial existing competition between the merging banks.

South Carolina law permits statewide branching. State Bank has the capability and incentive to branch de novo into Charleston County; absent the 

proposed merger, it could be expected to do so. State Bank has already 

expanded its network of branches east and south from Greenwood to Columbia, and presently has application pending to merge with a bank in Orangeburg, 75 miles from Charleston.

State Bank is the fourth largest bank in South Carolina. Each of the three 

other major South Carolina banks already maintains an office in Charleston. 

The proposed merger will eliminate potential competition between State Bank 

and Carolina Bank, presently the largest independent bank in Charleston 

County with about 7.6 percent of total county commercial bank deposits.

For these reasons, we conclude that the proposed merger would have an 

adverse effect on potential competition in the Charleston area.

B asis fo r C o rp o ra tio n approval, S e p te m b e r 4, 1969

State Bank and Trust Company, Greenwood, South Carolina (Applicant), an 

insured State nonmember bank with total deposits of $161,732,000, has 

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

Insurance Act, for the Corporation’s prior approval to merge with The Carolina 

Bank and Trust Company of Charleston, Charleston, South Carolina (Other 

Bank), which has total deposits of $14,264,000. The banks would merge under 

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

the three offices of Other Bank would become branches of Applicant, increasing the number of its offices to 45.

Competition. The service area of Applicant consists of portions of 13 counties in the northwestern, central, and western parts of South Carolina. Applicant is the fourth largest bank in the State, and this proposal would not

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BANK ABSORPTIONS APPROVED BY THE CORPORATION 95

change that position. Consummation of this transaction would increase Applicant's control of area deposits and loans by 1.1 percent and 1.2 percent, 

respectively, with the resulting bank holding 13.8 percent of deposits and 12.9 

percent of loans. As a result of this proposal, it is believed that competition 

among the larger banks in the area would tend to be increased.

Other Bank operates three offices, all in the city of Charleston or its immediate suburbs, with a service area population estimated to be 75,000. The 

local economy is widely diversified with all types of industry, various large military installations, foreign trade, wholesale and retail distribution firms, and 

tourism all playing important roles in area employment and prosperity. Prospects for continued vigorous growth are favorable.

The main offices of the participating banks are about 175 miles distant from 

each other, with the closest branch office of Applicant located approximately 

75 miles northwest of Charleston. The two banks operate in separate and distinct trade markets, separated by intervening competing banks and branches 

thereof. There is no direct competition between the banks now, and little if 

any possibility of future competition via de novo branch entry into each 

other's service areas.

This proposal would not intensify the concentration in the service area of 

Other Bank nor would it reduce the number of banking alternatives in the 

area. The merger would not tend to lessen competition, tend to create a 

monopoly, or in any manner be in restraint of trade.

Financial and Managerial Resources and Future Prospects. Financial and 

managerial resources of the participating banks appear adequate for the resulting bank. Future prospects for the resulting bank are more favorable than they 

are for the participating banks operating as independent units.

Convenience and Needs of the Community to be Served. The proposed 

transaction would have no significant effect in Applicant's present trade area, 

with the exception of a slightly increased lending limit; but the resulting bank 

should be better able to serve the convenience and needs of the service area 

of Other Bank. Additional benefits available to the customers of Other Bank 

would be a full-service trust department, computer services, travel agency services, and larger lending limit.

The Board of Directors has concluded from the foregoing information that 

approval of the merger application is warranted.

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vin

thousands

of dollars)

In

operation

To be

operated

First State Bank

Aransas Pass, Texas 

(proposed new bank) 

to acquire a portion of the assets

and assume the deposit liabilities of

800 1

The First State Bank, Aransas Pass, Texas

Aransas Pass

11,583 1

Approved under emergency provisions. No report requested from the Attorney General.

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96 FEDERAL DEPOSIT INSURANCE CORPORATION

B asis fo r C o rp o ra tio n approval, S e p te m b e r 5, 1969

Pursuant to Sections 5 and 18(c) of the Federal Deposit Insurance Act, 

applications have been filed by First State Bank for Federal deposit insurance 

and for consent to purchase certain assets and assume the deposit liabilities 

of The First State Bank, Aransas Pass, Texas, an insured nonmember bank 

which has been closed and is in the hands of the Banking Commissioner of 

the State of Texas.

Estimated losses in the assets of The First State Bank, Aransas Pass, Texas, 

exceed its capital funds. The Board of Directors has found that it must act 

immediately in approving the applications to prevent the probable failure of 

The First State Bank, Aransas Pass, Texas.

Aransas Pass has a population of about 7,000, with an estimated trade area 

of 15,000 residents. The First State Bank, Aransas Pass, Texas, the only bank 

in the community, has operated for many years and had developed a sizable 

volume of business before being closed. The closest banking facilities outside 

Aransas Pass are 8 miles distant. It is expected that First State Bank will successfully replace the former institution.

Based on the above information, the Board of Directors has concluded that 

approval of the applications for Federal deposit insurance and consent to the 

assumption transaction is warranted.

Resources

( \ Ki

B anking Offices

No. 46

un

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o f dollars)

In

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To be

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Eastern Bank and Trust Company

Whiteville, North Carolina 

(in organization; change title to

Waccamaw Bank and Trust Company) 

to acquire the assets and assume

the deposit liabilities of

225 28

Waccamaw Bank and Trust Company

Whiteville

92,415 28

S u m m a ry re p o rt by A tto rn e y G eneral, June 2, 1969 

[This proposal] is part of a transaction which will result in a presently existing 

bank becoming a wholly owned subsidiary of a one-bank holding company. 

Thus, [this] merger is merely part of a corporate reorganization and as such will 

have no effect on competition.

B asis fo r C o rp o ra tio n approval, S e p te m b e r 12, 1969 

Pursuant to Sections 5 and 18(c) and other provisions of the Federal 

Deposit Insurance Act, applications have been filed for Federal deposit insurance for Eastern Bank and Trust Company, Whiteville, North Carolina (Eastern), a proposed new bank in organization, and for consent for it to purchase 

the assets of and to assume the liabilities of Waccamaw Bank and Trust Company, Whiteville, North Carolina (Waccamaw), with total resources of $92.6 

million, under the charter of the former but with the title “ Waccamaw Bank 

and Trust Company." The resulting bank will operate from the main office and 

28 operating or approved branches of Waccamaw.

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BANK ABSORPTIONS APPROVED BY THE CORPORATION 97

The proposal involves the formation of a one-bank holding company to hold 

stock ownership of Waccamaw through the simultaneous new bank formation 

and the purchase of assets and assumption of liabilities transaction. Eastern 

will not be in operation as a commercial bank prior to the consummation of 

this transaction, and subsequently it will operate the same banking business at 

the same locations as Waccamaw with the same management and personnel. 

The proposal, of itself, will not change the banking services which Waccamaw 

has provided for its service area on a convenient and successful basis for 

many years, nor will it have any effect on competition, since it involves only a 

change in charter and form of organization. All factors required to be considered relative to each application are favorably resolved.

On the basis of the above information, the Board of Directors has concluded 

that approval of the applications is warranted.

No. 47

Resources

(in

thousands

of dollars)

B anking Offices

In

operation

To be

operated

Fremont Bank --- --- 1

Fremont, California

(in organization)

to merge with

Bank of Fremont 15,270 1

Fremont

S u m m a ry re p o rt by A tto rn e y G eneral, Ju ly 24, 1969 

The proposed merger is part of a transaction which will result in the presently existing bank becoming a wholly owned subsidiary of a one-bank holding 

company. Thus, the merger is merely part of a corporate reorganization and as 

such will have no effect on competition.

B asis fo r C o rp o ra tio n approval, S e p te m b e r 24, 1969 

Pursuant to Sections 5 and 18(c) and other provisions of the Federal 

Deposit Insurance Act, applications have been filed for Federal deposit insurance for Fremont Bank, Fremont, California (New Bank), a proposed new bank 

in organization, and for consent to merge with Bank of Fremont, Fremont, California (Old Bank), an operating insured nonmember bank. Old Bank presently 

operates but one office and has total resources of $15,270,000. The resulting 

bank will operate under the charter and title of New Bank. This proposal 

involves the formation of a one-bank holding company which is to hold stock 

ownership, except for directors' qualifying shares, of the resulting bank. New 

Bank will not be in operation as a commercial bank prior to consummation of 

the transaction and will begin business at the present sole location of Old 

Bank with the latter’s assets, liabilities, capital, and management.

Old Bank has provided needed and useful banking service to its trade area 

on a convenient and successful basis since 1964. The subject proposal will not 

alter these services or the service area and, involving only a change in form of 

corporate organization, will, of itself, have no effect on competition. All factors 

required to be considered relative to each application are favorably resolved.

On the basis of the above information, the Board of Directors has concluded 

that approval of the applications is warranted.

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98 FEDERAL DEPOSIT INSURANCE CORPORATION

Resources /Jm

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of dollars)

In

operation

To be

operated

The Citizens and Southern DeKalb Bank

Avondale Estates, Georgia 

to acquire the assets and assume

the deposit liabilities of

19,169 1 2

The Citizens and Southern Belvedere Bank

Decatur

8,293 1

S u m m a ry re p o rt by A tto rn e y G eneral, S e p te m b e r 22, 1969

The merging banks are unit banks both located in the unincorporated area 

of DeKalb County, 1.8 miles apart. Although branches of the first and third 

largest banks in the state as well as several smaller banks have offices in the 

same general area, there are no banks in the intervening area. Therefore, it 

would appear that this merger will eliminate considerable direct competition 

between the merging banks.

The immediate anticompetitive effects of this merger may well be lessened 

by the fact that The Citizens and Southern Holding Company has had full 

management control of Belvedere Bank since its inception. Under Georgia law 

existing banks may not expand beyond their headquarters city, and bank holding companies may not acquire more than 5 percent of the stock of any bank 

other than those in which they had substantial existing holdings. Hence, so 

long as Dekalb Bank was in Avondale Estates, further expansion by Citizens 

and Southern could be achieved only through management control of another 

bank. Now that Avondale Estates' city limits are altered, DeKalb Bank can 

expand in the area around its present location, but even that expansion is limited.

Since Citizens and Southern acquired its interest and management control at 

the time Belvedere Bank was established, the situation is not unlike de novo

branch banking in those states where such activity is lawful. However, the fact 

that Citizens and Southern can only have a 5 percent interest means that 

absent this merger there is a real potential that Belvedere Bank might at some 

time become independent and develop its competitive potential.

An appropriate market in which to measure the competitive effects of the 

merger is DeKalb County, wherein 16 commercial banks operate a total of 25 

banking offices. Four additional offices have been approved, and applications 

are pending for the addition of three others. In addition to the participating 

banks, six of these banks, including one authorized but not yet open, are affiliated with The Citizens and Southern Holding Company through its relationship 

with The Citizens and Southern National Bank. As of December 31, 1968, 

these eight banks controlled some 43 percent of total DeKalb County commercial bank deposits. Three different banking organizations held around 75 percent of DeKalb County deposits, and four separate banking organizations held 

over 80 percent. Hence, the banking market in DeKalb County is highly concentrated. DeKalb Bank itself held about 6.8 percent of total county deposits 

while Belvedere Bank held approximately 2.8 percent of such deposits. Their 

combined share of these deposits would have been about 9.6 percent, resulting in the fourth largest bank operating in DeKalb County.

Because of the existing relationship between the merging banks the increase

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BANK ABSORPTIONS APPROVED BY THE CORPORATION 99

in concentration of banking resources in DeKalb County as a result of this 

merger would be more apparent than real. However, these figures do demonstrate the dominant position occupied by The Citizens and Southern Holding 

Company in the DeKalb banking market.

B asis fo r C o rp o ra tio n approval, O cto b e r 10, 1969

The Citizens and Southern DeKalb Bank, Avondale Estates, Georgia 

(DeKalb), an insured State nonmember bank with total deposits of 

$16,887,000, has applied, pursuant to Section 18(c) and other provisions of 

the Federal Deposit Insurance Act, for the Corporation's prior consent to 

acquire the assets of and assume liability to pay deposits made in The Citizens and Southern Belvedere Bank, Decatur, Georgia (Belvedere), which has 

total deposits of $7,442,000. The transaction would be effected under the 

charter and with the title of DeKalb; and, as an incident thereto, the sole 

office of Belvedere would become a branch of the resulting bank, increasing 

the number of its offices to two.

Competition. The sole offices of the participating banks are 1.8 miles apart. 

A geographic distribution of deposits indicates, however, that business is 

drawn by both banks from virtually all of DeKalb County (population 353,500).

DeKalb County is a key sector in the thriving Metropolitan Atlanta area. Its 

economy is diversified and soundly based with a fairly balanced mix between 

manufacturing and nonmanufacturing activities. Prospects for future growth are 

favorable.

There appears to be little or no effective competition between the participating banks. A close relationship is maintained because of their association with 

The Citizens and Southern Holding Company, which owns 93.83 percent of the 

outstanding stock of DeKalb and 5 percent of the outstanding stock of Belvedere. Policies in both banks are largely determined by the holding company. It 

appears, therefore, that this proposal would not eliminate substantial competition, intensify the concentration, or reduce the number of banking alternatives 

in the area.

There are 26 offices of 17 banks in the area, and the participating banks 

rank fifth and 11th in terms of IPC deposits. The resulting bank would be the 

fourth largest bank in its trade area, with 9.2 percent of IPC deposits. It is 

expected that the remaining competing banks in the trade area will continue to 

provide aggressive competition for the resulting bank.

The Board of Directors is of the opinion that this transaction would not tend 

to lessen competition, tend to create a monopoly, or in any manner be in 

restraint of trade.

Financial and Managerial Resources and Future Prospects. Financial and 

managerial resources are satisfactory with respect to both participating banks 

and are so projected for the resulting bank. Future prospects for the resulting 

bank are more favorable than they are for the participating banks operating as 

independent units.

Convenience and Needs of the Community to be Served. Present and potential customers would benefit through the increased financial resources and the 

generally expanded services that could be offered in the immediate area by the 

resulting bank.

On the basis of the above information and other information available to the 

Corporation, the Board of Directors has concluded that approval of the bank's 

application is warranted.

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Resources B anking Offices

No. 49

un

thousands

of dollars)

In

operation

To be

operated

Clifton Trust Bank

Baltimore, Maryland 

(proposed new bank) 

to merge with

1,275 2

Clifton Savings Bank

Baltimore

3,103 2

S u m m a ry re p o rt by A tto rn e y G eneral, S e p te m b e r 25, 1968 

The directors of Clifton Savings have determined that Clifton Savings must 

become a commercial banking institution in order to increase the range of its 

services, to maintain and promote better customer relations, and to meet competition. To this end they have organized Clifton Trust and propose to merge it 

with Clifton Savings. Thus, this merger is merely the means chosen to convert 

Clifton Savings into a full-service commercial bank and will have no effect on 

competition.

B asis fo r C o rp o ra tio n approval, O cto b e r 10, 1969 

These proposals would have the effect of replacing $3.1 million Clifton Savings Bank, a mutual savings bank, with a newly organized commercial bank, 

Clifton Trust Bank. The latter would be managed by the former directors and 

officers of Clifton Savings Bank at the two locations from which Clifton Savings 

operates. It is apparent from the nature of the transaction that the applicant, 

which has never been operative, and Clifton Savings are not competitive.

The merger transaction would not lessen competition, tend to create a 

monopoly, or in any other manner be in restraint of trade.

All factors required to be considered relative to the applications have been 

favorably resolved.

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

of the applications is warranted.

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Valley Bank and Trust Company

Chambersburg, Pennsylvania 

(in organization) 

to merge with

13

National Valley Bank and Trust Company

Chambersburg

63,550 13

S u m m a ry re p o rt by A tto rn e y G eneral, S e p te m b e r 3, 1969 

[This proposal] is part of a transaction which will result in a presently existing 

bank becoming a wholly owned subsidiary of a one-bank holding company. 

Thus, [this] merger is merely part of a corporate reorganization and as such will 

have no effect on competition.

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B asis fo r C o rp o ra tio n approval, O cto b e r 10, 1969 

Pursuant to Sections 5 and 18(c) and other provisions of the Federal 

Deposit Insurance Act, applications have been filed for Federal deposit insurance for Valley Bank and Trust Company, Chambersburg, Pennsylvania 

(Valley), a proposed new bank in organization, and for consent to the merger 

of Valley, under its charter and with its title, with National Valley Bank and 

Trust Company, Chambersburg, Pennsylvania (National), which has 13 offices 

and total resources of $63,550,000. The resulting bank will operate from the 

existing locations of National.

The proposal involves the formation of a one-bank holding company to hold 

stock ownership of National, which will convert to an insured State nonmember bank through the simultaneous new bank formation and merger. Valley will 

not be in operation as a commercial bank prior to the merger and will begin 

business, at the present locations of National, with the latter’s assets, liabilities, capital, and management. The proposal, of itself, will not change the 

banking services which National has provided usefully to the Chambersburg 

community on a convenient and successful basis for many years; nor will it, 

involving only changes in charter and form of corporate organization, have any 

effect on competition. All factors required to be considered relative to each 

application are favorably resolved.

On the basis of the above information, the Board of Directors has concluded 

that approval of the applications is warranted.

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\in

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of dollars)

In

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Barclays Bank of California

San Francisco, California 

to acquire the assets and assume

the deposit liabilities of

65,575 5 13

First Valley Bank

San Jose

48,136 8

S u m m a ry re p o rt by A tto rn e y G eneral, O cto b e r 1, 1969 

Head offices of the participating banks are located some 50 miles apart; 

branches of the respective institutions do not appear to be any nearer. Moreover, a substantial number of banks operate in the intervening area, and it 

appears that neither participating bank draws significant amounts of business 

from the immediate areas served by the other. Consequently, it does not 

appear that consummation of the proposed transaction will have any effect on 

existing competition.

Currently 16 banks operate in Santa Clara County with total deposits as of 

June 30, 1968 of $1.7 billion. Valley Bank stands sixth among these 16 with 

about 2.3 percent of these deposits.

California law would permit Barclays Bank to establish de novo branches 

within the area served by Valley Bank. However, in view of the market position 

of Valley Bank in Santa Clara County, elimination of this possibility is not 

likely to have any significantly adverse effect on potential competition.

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102 FEDERAL DEPOSIT INSURANCE CORPORATION

B asis fo r C o rp o ra tio n approval, O cto b e r 17, 1969

Barclays Bank of California, San Francisco, California (Barcal), an insured 

nonmember bank with total deposits of $56,614,000, has applied, pursuant to 

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

the Corporation’s prior approval to acquire the assets and assume liability to 

pay the deposits made in First Valley Bank, San Jose, California (Valley), 

which has total deposits of $43,146,000. The resulting bank would operate 

under the charter and with the title of Barcal; and, as an incident to the proposed transaction, the eight offices of Valley would become branches of Barcal, 

increasing the number of its offices to 13.

Competition. Barcal presently serves three separate and distinct trade areas 

where it has offices. The main office of Barcal is in downtown San Francisco, 

and it has a branch in the downtown section of Los Angeles. The third trade 

area served by Barcal is in Orange County, where it has two offices in Anaheim (1963 estimated population 100,000) and one in Fullerton (1962 estimated population 64,000). Orange County is contiguous to Los Angeles 

County, which is approximately 425 miles southeast of San Francisco.

The trade area of Valley is delineated as the northwest portion of Santa 

Clara County and that portion of San Mateo County served by the Portolo Valley Branch of Valley. The only office of Valley that is not located in the northwestern part of Santa Clara County is the Portolo Valley Branch in San Mateo 

County, 20 miles northwest of San Jose (estimated population 408,500) and 

about 5 miles from the Santa Clara County border.

The main offices of the participating banks are about 50 miles apart, and 

the shortest distance between offices is the 33 miles separating Barcal's main 

office in San Francisco and the Portolo Valley Branch of Valley. This intervening area is densely populated, and there are numerous offices of other banks 

located there. Each of the participating banks derives all of its business from 

the communities where its offices are located and from the immediate surrounding areas. The trade areas served do not overlap nor are they contiguous. 

There is no direct competition, between the participating banks, which would 

be eliminated by this proposed transaction.

In view of the relatively small size of the participating banks and the 

number of existing banking offices in the relevant trade areas, it does not 

seem likely that they would become competitive in the reasonably near future.

Commercial banking in the State of California is dominated by the eight 

largest banks, which had over 85 percent of the IPC deposits held by commercial banks as of June 30, 1968. This proposed transaction would increase the 

resulting bank’s share of the statewide market to an insignificant 0.2 percent. 

Consummation of this proposal would have no appreciable effect on the structure of banking in the State of California.

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

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

other manner be in restraint of trade.

Financial and Managerial Resources and Future Prospects. Financial and 

managerial resources are satisfactory with respect to both participating banks 

and are so projected for the resulting bank. Future prospects of the resulting 

bank are favorable.

Convenience and Needs of the Community to be Served. Other than an 

increase in the legal lending limit, this proposed transaction would have no 

significant effect in the trade areas served by Barcal. In the trade area served 

by Valley, this proposal would result in lower costs to the general public for

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certain services offered by commercial banks. It would also enable the resulting bank to meet the demand for larger loans which Valley has experienced 

but has not been able to supply. Additionally, this proposal would provide the 

San Jose area with another commercial bank equipped to satisfy the needs of 

exporters.

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

of the application is warranted.

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Commonwealth Bank and Trust Company

Muncy, Pennsylvania 

to merge with

35,767 7 8

The Union National Bank of Jersey Shore

Jersey Shore

9,218 1

S u m m a ry re p o rt by A tto rn e y G eneral, S e p te m b e r 19, 1969 

The Muncy branch of CBT is 30 miles east of Union’s sole office. Except for 

The First National Bank of Ralston, a $1.6 million unit bank operating the only 

banking office in the northern half of Lycoming County, all other Lycoming 

County banking alternatives intervene. Therefore, the merger would not appear 

to eliminate any significant amount of existing direct competition between the 

two banks.

Under applicable Pennsylvania law, either bank could be permitted to branch 

de novo into the service area of the other. CBT has demonstrated a desire to 

extend its service area significantly in recent years. Involvement in three mergers with six commercial banks since 1965 has given CBT a substantial position 

in the two Northern Pennsylvania counties contiguous to Lycoming County as 

well as in southeastern Lycoming County itself. Moreover, CBT has recently 

moved its head office into Muncy, Lycoming County, which, under Pennsylvania 

law will enable it to operate offices in a much broader geographic area. While 

there are three banks in Williamsport of comparable or larger size, CBT's 

apparent efforts to serve new areas in north central Pennsylvania render it one 

of the more likely future entrants into developing areas of Lycoming County, 

including areas presently served by Union. The proposed merger would eliminate the possibility of future competition between the merging banks.

B asis fo r C o rp o ra tio n approval, O cto b e r 28, 1969 

Commonwealth Bank and Trust Company, Muncy, Pennsylvania (Commonwealth), an insured nonmember bank with total deposits of $31,860,000, has 

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

Insurance Act, for the Corporation’s prior approval to merge with The Union 

National Bank of Jersey Shore, Jersey Shore, Pennsylvania (Union), which has 

total deposits of $8,358,000. The banks would merge under the charter and 

with the title of Commonwealth; and, as an incident to the merger, the sole 

office of Union would become a branch of Commonwealth, increasing the 

number of its offices to eight.

Competition. The service area of Commonwealth consists of portions of 

three counties in north-central Pennsylvania. The combined population is 

150,000. Union's service area consists of the Borough of Jersey Shore and the

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104 FEDERAL DEPOSIT INSURANCE CORPORATION

immediate surrounding area (population 6,000). Both service areas enjoy a 

healthy and diversified economy.

Commonwealth's main office in Muncy and Union’s main office in Jersey 

Shore are approximately 30 miles apart within Lycoming County. There are a 

number of banks in the intervening area, including the three largest banks in 

the county, located in Williamsport. There is no overlap in the service areas of 

the participating banks, no existing competition, and little potential for competition. Commonwealth’s nearest branch, Hughesville, is 4 miles northeast of 

Muncy and 34 miles east of Jersey Shore. Its remaining five branches, located 

in Tioga and Potter Counties to the north, are considerably removed from all 

of the above mentioned offices. Although each of the participating banks could 

branch de novo into the communities served by the other, such action appears 

remote in view of the small size of the communities and the presence of existing banking offices serving their needs.

The resulting bank would be the fourth largest in the combined trade area, 

with 13.3 percent of IPC deposits and 12.7 percent of loans. No effect on 

competition is anticipated in the service area of Commonwealth. It is expected 

that competition in Union’s service area will be stimulated.

The Board of Directors is of the opinion that the proposed merger would not 

substantially lessen competition, tend to create a monopoly, or in any other 

manner be in restraint of trade.

Financial and Managerial Resources and Future Prospects. Financial and 

managerial resources are satisfactory with respect to both participating banks 

and are so projected for the resulting bank. Future prospects of the resulting 

bank are favorable.

Convenience and Needs of the Community to be Served. The proposed 

transaction would have no significant effect in Commonwealth's present trade 

area, with the exception of a slightly increased lending limit. The resulting 

bank should, however, be better able to serve the convenience and needs of 

the service area of Union. Increased services available would include a full 

range of fiduciary services, computer services, and a substantially larger lending limit.

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

of the application is warranted.

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The Farmers State Bank of Spring Green

Spring Green, Wisconsin 

(change title to Bank of Spring Green) 

to consolidate with

8,585 2 2

State Bank of Spring Green

Spring Green

2309 1

S u m m a ry re p o rt by A tto rn e y G eneral, S e p te m b e r 19, 1969 

The head offices of the merging banks are both located on the same block 

in Spring Green. A comparison of individual accounts shows that a substantial 

number of customers maintain accounts in both banks and a number of customers borrow from both banks. Therefore, it would appear that this merger 

will eliminate substantial direct competition between the merging banks.

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BANK ABSORPTIONS APPROVED BY THE CORPORATION 105

All offices of the merging banks are located in Sauk County. As of June 30,

1968, Farmers Bank held the fourth largest share, approximately 9.4 percent, 

of total deposits in this county, while State Bank held about 2.2 percent of 

such deposits. The resulting bank, with 11.6 percent of total county commercial bank deposits, will remain the county's fourth largest.

These concentration statistics, however, understate the competitive effects of 

this merger, for competition between the merging banks would appear to be 

most direct in Spring Green itself, where there are no commercial banking 

alternatives. The only other bank within a radius of 15 miles of Spring Green 

is smaller than either of the participating banks. The proposed merger would 

combine the only competitive alternatives in Spring Green, and would tend to 

deter the development of a more competitive commercial banking structure in 

that community.

Since this merger would combine two direct competitors with a resulting 

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

serious effect on competition therein.

B asis fo r C o rp o ra tio n approval, O cto b e r 28, 1969

The Farmers State Bank of Spring Green, Spring Green, Wisconsin (Farmers), an insured nonmember bank with total resources of $8,585,000, has 

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

Insurance Act, for the Corporation’s prior consent to consolidate with State 

Bank of Spring Green, Spring Green, Wisconsin (State), a State member bank 

with total resources of $2,300,000, under the charter of Farmers and with the 

title “ Bank of Spring Green." The sole office of State is to be discontinued.

Competition. Spring Green, location of the main offices of both banks, is 

located in Sauk County, Wisconsin, about 35 miles west of Madison. Spring 

Green has an estimated population of 1,150, and the population of the trade 

area is estimated at 4,500. Farmers has a branch office at Plain, 7 miles north 

of Spring Green, which has an estimated population of 675. Spring Green is 

primarily a trading center for the immediate surrounding area, which is completely agricultural, with dairying the principal source of farm income. In 

recent years, recreational facilities have become of some economic importance.

Among 14 banks presently competing in the area, Farmers ranks sixth and 

State ranks 13th, the latter not significantly larger than the smallest bank. The 

consolidation will increase Farmers’ rank to fifth, although it will be only 

slightly smaller than the fourth-ranked bank. It will hold 10.3 percent of the 

total IPC deposits among 13 remaining banks, as compared to 12.9 percent 

for the largest bank and 10.4 percent for the fourth largest. The main offices 

of Farmers and State are located in the same block, separated by two other 

business establishments. A number of customers do business with both banks, 

which serve essentially the same service area. State, however, has not been a 

viable and effective competitor; historically, it has maintained an extremely low 

loan-asset ratio— currently less than 22 percent— and has largely confined its 

credit service to making real estate loans. A unit bank will be eliminated from 

the scene in Spring Green and its office will be discontinued; however, the 

town of Spring Green, standing alone, is hardly large enough to economically 

support two banks. Within the surrounding area, there are numerous banks of 

comparable size offering convenient alternative banking services.

The Board of Directors is of the opinion that the consolidation would not 

substantially lessen competition, tend to create a monopoly, or in any other 

manner be in restraint of trade.

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106 FEDERAL DEPOSIT INSURANCE CORPORATION

Financial and Managerial Resources and Future Prospects. Financial 

resources are satisfactory with respect to both participating banks and are so 

projected for the resulting bank. Farmers is faced with a management problem 

because its chief executive officer now is 83 years of age and no provision has 

been made for a successor. However, one of the expected benefits of the consolidation will be resolution of this problem. Earnings of State over the past 

several years have been well below average; and, as a result of operating economies which can be effected through the combined operation and elimination 

of one location, future prospects appear more favorable.

Convenience and Needs of the Community to be Served. The discontinuance 

of one office should cause no inconvenience to the public. The consolidation 

will result in a bank more capable of providing additional banking programs 

and services through enlarged and more modern facilities— all to the betterment of the community. The resulting bank will have a larger lending lim it and 

sufficient personnel to provide specialized services, more particularly in the 

area of agricultural financing and consumer credit.

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

of the application is warranted.

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Ocean Bank

Virginia Beach, Virginia 

(in organization; change title to People’s 

Bank of Virginia Beach) 

to merge with

1 0 0 1

People's Bank of Virginia Beach

Virginia Beach

6,995 1

S u m m a ry re p o rt by A tto rn e y G eneral, S e p te m b e r 3, 1969 

[This proposal] is part of a transaction which will result in a presently existing 

bank becoming a wholly owned subsidiary of a one-bank holding company. 

Thus, [this] merger is merely part of a corporate reorganization and as such will 

have no effect on competition.

B asis fo r C o rp o ra tio n approval, N o ve m b e r 5, 1969 

Pursuant to Sections 5 and 18(c) and other provisions of the Federal 

Deposit Insurance Act, applications have been filed for Federal deposit insurance for Ocean Bank, Virginia Beach, Virginia, a proposed new bank in organization, and for consent to merge with People's Bank of Virginia Beach, Virginia Beach, Virginia (People’s), an insured nonmember operating bank. 

People's operates one office and has total assets of $7.0 million. The resulting 

bank will operate under Ocean Bank’s charter and with People's title.

The proposal involves the formation of a one-bank holding company which 

will hold all the stock, except directors' qualifying shares, of the resulting 

bank. Ocean Bank will not operate as a commercial bank prior to consummation of the merger. It will begin business at the present location of People's 

with the latter’s management, liabilities, assets, and capital essentially 

unchanged. People’s has been in operation since January 1969, and its growth 

during its brief history evidences a need for the bank. The proposal involves

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BANK ABSORPTIONS APPROVED BY THE CORPORATION 107

only one operating bank and will not affect banking services or the service 

area. It is simply a corporate reorganization and will have no effect on competition. All factors requiring consideration relative to each application are found 

to be favorable.

On the basis of the above information, the Board of Directors has concluded 

that approval of the applications is warranted.

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Bank of Hawaii

Honolulu, Hawaii 

to acquire a portion of the assets

and assume the deposit liabilities of

678,000 60 4 61

Bank of American Samoa

Pago Pago, Tutuila, American Samoa

7,249 1

S u m m a ry re p o rt by A tto rn e y G eneral, S e p te m b e r 25, 1969 

The office of Bank of American Samoa is 2,600 miles from Bank of Hawaii’s 

head office and branches in the Hawaiian Islands, and 2,200 miles from Bank 

of Hawaii's nearest office in Kwajalein in the Marshall Islands. Since direct 

competition between the two banks is virtually nonexistent, none will be eliminated as a result of the merger. Since the acquired bank is the only banking 

institution on American Samoa, the proposed acquisition will also have no 

effect on banking concentration on the island. Finally, in view of the limited 

prospects for economic growth, there will be no significant elimination of 

potential competition.

Under the circumstances it is our view that the proposed acquisition will 

have no significant adverse competitive effect.

B asis fo r C o rp o ra tio n approval, N ove m b e r 13, 1969 

Bank of Hawaii, Honolulu, Hawaii (Buyer), an insured State nonmember 

bank with total deposits of $602.9 million, has applied, pursuant to Section 

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

to acquire a portion of the assets of and assume liability to pay deposits made 

in Bank of American Samoa, Pago Pago, American Samoa (Seller), a noninsured bank with total deposits of $4.9 million. The transaction would be 

effected under the charter and with the title of Buyer; and, as an incident 

thereto, the sole office of Seller would become a branch of the resulting bank.

Seller, the only bank in American Samoa, is 2,600 miles from the main 

office of Buyer in Honolulu and 2,200 miles from the nearest branch. There is 

virtually no competition between the participating banks, and there would be 

no adverse competitive effects, in either area, resulting from consummation of 

the proposed transaction.

The Board of Directors is of the opinion that this transaction would not tend 

to lessen competition, tend to create a monopoly, or in any manner be in 

restraint of trade.

The factors of financial and managerial resources, future prospects, and 

convenience and needs of the community to be served are favorable with 

respect to Buyer and the resulting bank. The future prospects of Seller, which

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

has experienced transitory management, and which has limited banking services, would be improved.

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

of the bank’s application is warranted.

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Citizens Bank of South Carolina

Dillon, South Carolina 

to merge with

23,520 5 8

Peoples Bank of Cheraw

Cheraw

and

4,957 1

Lake Banking Company

Lake View 

and

2,226 1

Bank of Great Falls

Great Falls

3,919 1

S u m m a ry re p o rt by A tto rn e y G eneral, S e p te m b e r 19, 1969 

Falls Bank:

The closest offices of Citizens Bank are in Lancaster, fifteen miles north of 

Great Falls. Although there are no banks in the intervening area, there are two 

other commercial banks in Lancaster with total deposits of $18 million. As 

there are few banking alternatives in a broad area surrounding Great Falls, and 

no intervening banking alternatives between the closest offices of the merging 

banks, there may be a limited amount of direct competition which would be 

eliminated by the proposed merger.

South Carolina law permits statewide branch banking. Citizens Bank has 

been engaged in a program of expansion in the northeastern region of South 

Carolina since mid-1968. Great Falls has enjoyed a population increase of 

approximately 30 percent in this decade and is located in an area that anticipates continued industrial growth. These factors indicate that the proposed 

merger may foreclose potential competition to some extent.

S e p te m b e r 24, 1969

Lake Bank:

Lake’s nearest competitor is currently Citizens Bank’s branch in Nichols, 

located eight miles south of Lake View. The head office of Citizens Bank is in 

the town of Dillon, 18 miles to the northwest. There are no banks in the intervening areas. Upon consummation of this merger, the only banking alternatives to Citizens Bank within twenty miles of Lake View will be the Dillon 

branch of South Carolina National Bank; and Davis National Bank and Anderson Brothers Bankers, both in Mullins, twelve miles to the southwest. It seems 

clear that merging the only bank between Citizens Bank’s head office and its 

Nichols branch into Citizens Bank’s chain will eliminate existing competition in 

southeastern Dillon County and northeastern Marion County.

Lake's service area includes primarily the southeast portion of Dillon County 

and the northeast part of Marion County. This area is served by four banks:

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BANK ABSORPTIONS APPROVED BY THE CORPORATION 109

Lake, the applicant bank's branch in Nichols, and two banks in Mullins, Marion 

County, twelve miles southwest of Lake View. Citizens Bank and Lake each 

hold about 11 percent of commercial bank deposits in this area. The proposed 

merger would reduce banking alternatives in this area from 4 to 3.

We note that the proposed merger, along with Citizens Bank’s two other 

pending applications for merger with the Bank of Great Falls (Chester County) 

and Peoples Bank of Cheraw (Chesterfield County) will, if approved, extend the 

range of Citizens Bank's operation to six contiguous counties along South Carolina’s northern border, and raise its total deposits to over $30 million, substantially greater than any other locally headquartered bank in the area. Its 

size and broad geographic coverage may enable Citizens Bank to compete with 

the large statewide banks operating offices in the area for the business of 

present and future large industrial customers. However, we consider it important that regional competitors such as Citizens Bank develop in a manner that 

will not unduly increase concentration in any given local market, thus preserving both competition at the local level and opportunity for entry by other 

developing regional competitors. Applicant’s acquisition of Lake may adversely 

affect the development of a more competitive banking structure in southeastern Dillon County and northeastern Marion County to match the area’s 

expected industrial growth.

We conclude that the proposed merger would have an adverse effect on 

competition.

Peoples-Cheraw:

The closest offices of the merging banks are 22 miles apart. Two banks in 

the town of Bennettsville intervene between Peoples Bank in Cheraw and the 

Clio branch of Citizens Bank. It appears that no substantial direct competition 

will be eliminated by the proposed merger.

South Carolina law permits state-wide branch banking, but because of the 

small and stable level of population and the existence of two established banking offices in Cheraw, it is unlikely that Citizens Bank would branch de novo

into the area in the near future. There are presently six banks within a twelve 

mile radius of Cheraw and the market would not appear to be economically 

attractive for de novo entry by another bank at the present time. Therefore, 

this merger will not eliminate substantial potential competition.

The banks seeking to merge do not presently compete nor can the applicant 

bank be regarded as a probable entrant into the Cheraw market. Therefore, the 

merger is unlikely to have a significantly adverse effect upon competition.

B asis fo r C o rp o ra tio n approval, N o ve m b e r 13, 1969

Citizens Bank of South Carolina, Dillon, South Carolina (Applicant), an 

insured State nonmember bank with total deposits of $21,138,000, has 

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

Insurance Act, for the Corporation’s prior consent to merge, under its charter 

and with its title, with Peoples Bank of Cheraw, Cheraw, Chesterfield County, 

South Carolina (Peoples-Cheraw), an insured State nonmember bank with total 

deposits of $4,171,000; Lake Banking Company, Lake View, Dillon County, 

South Carolina (Lake Bank), an insured State nonmember bank with total 

deposits of $2,033,000; and Bank of Great Falls, Great Falls, Chester County, 

South Carolina (Falls Bank), an insured State nonmember bank with total 

deposits of $3,426,000; and for consent to the establishment of the sole 

offices of the latter three banks as branches of the resulting bank. The three 

mergers would increase the number of Applicant’s offices to eight. Approval is

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also requested for the retirement, at the option of the holders thereof, of the 

5 percent convertible preferred stock to be issued in connection with the 

merger with Falls Bank.

Competition. Applicant, headquartered in Dillon, operates two branches in 

Lancaster and one each at Clio and Nichols. It is the fourth largest South Carolina bank in overall size among the banks with offices in its several trade 

areas. The mergers would not change that position. As a result of these mergers, it is believed that Applicant would become more competitive with its major 

competitors, one of which is the largest bank in the State, operating a statewide system of branches.

Peoples-Cheraw presently competes with two offices of the State's largest 

bank and one branch of the State's third largest. In overall size, it is the 

smallest among six banks competing in its service area, and the merger 

should increase its competitive ability with these other five banks. There is 

some common ownership and management between Applicant and PeoplesCheraw, which was created in May 1968. Their nearest offices are 24 miles 

apart, and there is no significant amount of actual or potential competition 

which would be eliminated.

Lake Bank presently competes with one office of the State's largest bank, 

one office of North Carolina’s third largest bank, two offices of Applicant, and 

two much larger independent banks located in Mullins. It is by far the smallest 

bank in its service area; and, as a branch of Applicant, its competitive stature 

with the other four banks would be significantly increased. Lake View is 

located between Dillon and Nichols (locations of the main office and one 

branch of Applicant); however, the competition which will be eliminated does 

not loom large because there has been common ownership between Applicant 

and Lake Bank since 1960.

The closest competing banks to Falls Bank are those in Lancaster, including 

the two branches of Applicant. Falls Bank is much smaller than Applicant and 

one other Lancaster-based bank. Applicant’s Lancaster branches hold only 

about one-fourth the volume held by the other Lancaster bank and, combined 

with Falls Bank, the relationship is less than one-half. Lancaster and Great 

Falls are 15 miles apart, and the amount of competition which would be eliminated is not significant. The public still would have several banking alternatives 

available.

Because of the distances involved, there is no competition among and 

between Peoples-Cheraw, Lake Bank, and Falls Bank which would be eliminated. Although South Carolina statutes permit statewide branching, none of 

the merging banks have evidenced a desire to broaden their operations by de 

novo branching; and, because of the small size of the banks and the communities they serve, it is unlikely that either of the banks would establish de novo 

branches in the area of the other. Thus, the potential for competition is not 

significant.

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

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

other manner be in restraint of trade.

Financial and Managerial Resources and Future Prospects. These factors are 

resolved in favor of the proposals.

Convenience and Needs of the Community to be Served. The proposed 

transactions would have no appreciable effect in Applicant's present trade 

areas, but they would enable the resulting bank to better serve the convenience and needs in the trade areas of the other three banks. The number and 

location of banking offices would not be changed. The mergers would result in

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BANK ABSORPTIONS APPROVED BY THE CORPORATION 111

an increased lending limit at the various locations and a wider range of 

enlarged banking services in general.

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

that approval of the applications is warranted.

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The First National Bank of Anchorage

Anchorage, Alaska 

to acquire the assets and assume

the deposit liabilities of

117,081 13 14

The First Bank of Valdez

Valdez

1,201 1

S u m m a ry re p o rt by A tto rn e y G eneral, N o ve m b e r 17, 1969

The merging banks' main offices are 305 road miles apart, and their closest 

offices are approximately 290 miles apart; there are two intervening banking 

offices. However, 44 Valdez customers carry $276,000 in deposits with First 

National, equal to about 25 percent of First Bank of Valdez' total deposits. 

Therefore, the merger would eliminate some existing competition between the 

merging banks.

Commercial banking in Alaska is highly concentrated. Eleven banks operate 

66 banking offices; the proposed merger would reduce the number of Alaskan 

banks to ten. As of June 30, 1968, Alaska's two largest banks held 58.1 percent of total state deposits; National Bank of Alaska, headquartered in Anchorage, held 30.7 percent, and First National held 27.4 percent. These two banks 

also operate about half of the banking offices in the state.

Alaska law permits statewide de novo branching, and, thus, First National 

could legally branch de novo into the area served by First Bank of Valdez. 

Since January 1, 1952, First National has acquired three other banks and 

established six de novo offices. It was twice denied permission to enter the 

oil-rich Kenai Peninsula, and once denied permission to branch into Fairbanks, 

another oil oriented community. According to the Application, First National 

must actively service the oil industry if First National is to continue to prosper, 

and entry into Valdez will give it that opportunity.

Hence, First National, which has a demonstrated inclination to expand into 

new areas of Alaska, and a special interest in servicing the oil industry, 

appears to be one of the two most likely de novo entrants into the Valdez 

area.

This merger will, therefore, eliminate existing competition between these 

banks in Valdez, remove one of the most likely de novo potential entrants into 

the market, and tend to entrench the existing dominant banks in Alaska by 

eliminating a small bank which could have served as a foothold entry in this 

market for smaller banks elsewhere in the state. For these reasons, we believe 

that this merger will have an adverse effect on competition.

B asis fo r C o rp o ra tio n approval, N o ve m b e r 21, 1969

The First National Bank of Anchorage, Anchorage, Alaska (Applicant), with 

total deposits of $105.8 million, has applied, pursuant to Section 18(c) of the 

Federal Deposit Insurance Act, for the Corporation’s prior consent to acquire

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1 1 2 FEDERAL DEPOSIT INSURANCE CORPORATION

the assets of and assume liability to pay deposits made in The First Bank of 

Valdez, Valdez, Alaska (Other Bank), a noninsured bank with total deposits of 

$1.1 million.

Competition. The nearest offices of the participating banks are some 300 

road miles distant, and their trade areas are separate and distinct. Competition 

between Other Bank and any other financial institution in Alaska is virtually 

nonexistent. Nearest banking offices are 120 road miles north and 90 air miles 

southeast, the latter being accessible only by air and by ferry.

Applicant, the second largest bank in Alaska, would increase its share of 

deposits and loans by approximately 0.2 percent. The proposal would have no 

competitive effect in Applicant's trade area, and whereas there is virtually no 

competition in the trade area of Other Bank, none would be eliminated.

The Board of Directors is of the opinion that this transaction would not tend 

to lessen competition, tend to create a monopoly, or in any manner be in 

restraint of trade.

Financial and Managerial Resources and Future Prospects. Financial and 

managerial resources and future prospects are favorable with respect to Applicant and the resulting bank. The future prospects of Other Bank, which is 

experiencing unfavorable operating results, would be improved as a branch of 

Applicant.

Convenience and Needs of the Community to be Served. Present and potential customers in the area of Other Bank would benefit through the increased 

financial resources, generally expanded services, and more sophisticated management that would be supplied by the resulting bank.

On the basis of the above information, the Board of Directors has concluded 

that approval of the bank’s application is warranted.

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The Millikin National Bank of Decatur

Decatur, Illinois 84,238 1 5 1

to merge with

The Millikin Trust Company

Decatur

1,222 1 5

S u m m a ry re p o rt by A tto rn e y G eneral, N o ve m b e r 4, 1969 

Because Millikin Bank's operations are restricted to commercial banking 

without exercise of trust powers and Trust Company handles only fiduciary 

accounts, the proposed merger would not affect existing competition.

No adverse effects on potential competition are likely either. When Trust 

Company was organized, national banks were not permitted to engage in trust 

business. Since revision of the law, most banks in Illinois have merged with 

the corporations they originally established to handle fiduciary accounts. Trust 

Company is one of the last state banks exercising only trust powers in Illinois. 

Because operations at Trust Company are so closely tied-in with those of Millikin Bank (both occupy the same building and utilize the same computer), the 

possibilities of either expanding into the other’s field of activity are remote. 

Moreover, 55 percent of the shares of each institution are owned and controlled by the trustees of a charitable trust established by the founder.

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In view of the long-standing common control of application banks and the 

interrelationships of their distinct operations, we conclude that the proposed 

merger would not be likely to have any significant adverse effects on competition.

B asis fo r C o rp o ra tio n approval, N ove m b e r 21, 1969

The Millikin National Bank of Decatur, Decatur, Illinois (Applicant), with 

total deposits of $74,609,000, has applied, pursuant to Section 18(c) of the 

Federal Deposit Insurance Act, for the Corporation’s prior consent to merge 

with The Millikin Trust Company, Decatur, Illinois (Trust Company), an operating noninsured institution with deposits totaling $741,000, under the charter 

and with the title of Applicant.

Trust Company was formed in 1915, by the owners of Applicant, to afford 

trust services, which at the time national banks were not permitted to offer. 

Ownership of 55 percent of the outstanding stock in each institution is held by 

the same estate, and five of Trust Company's nine directors are also directors 

of Applicant. Both Applicant and Trust Company occupy the same building, 

and their merger would not have adverse effects upon competition nor upon 

the convenience and needs of the community. The merger should permit more 

efficient and economical provision of complete banking service and end confusion caused by two separate institutions with similar names.

The Board of Directors is of the opinion that this transaction would not 

lessen competition, tend to create a monopoly, or in any other manner be in 

restraint of trade.

The factors of financial and managerial resources, future prospects, and 

convenience and needs of the community to be served are favorable with 

respect to Applicant and Trust Company and are so projected for the resulting 

bank.

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

of the application is warranted.

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Bank of Somerset

Princess Anne, Maryland 

to merge with

12,7 77 1 2

Marine Bank of Crisfield

Crisfield

4,155 1

S u m m a ry re p o rt by A tto rn e y G eneral, O cto b e r 21, 1969 

The applicant banks compete with one another in part of the sparsely populated rural area between the towns of Crisfield and Princess Anne, which are 

20 miles apart. The Bank of Somerset has also received approval to open in 

late 1969 a branch in Crisfield to be known as the Wards Crossing office; it 

would serve much of the same area that the Marine Bank of Crisfield presently 

serves. The merger would, therefore, appear to eliminate some existing competition between the applicants and the future competition that would have otherwise developed between the Marine Bank of Crisfield and the Wards Crossing 

branch of the Bank of Somerset.

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114 FEDERAL DEPOSIT INSURANCE CORPORATION

The proposed merger would combine two of the three banks operating in 

Somerset County. The resulting bank would be larger than its remaining competitor.

Since the merger will eliminate actual and potential competition between the 

merging banks and will increase banking concentration in Somerset County, it 

will have an adverse effect on competition.

B asis fo r C o rp o ra tio n approval, N o ve m b e r 21, 1969

Bank of Somerset, Princess Anne, Maryland (Somerset), an insured nonmember bank with total resources of $12,777,000, has applied, pursuant to 

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

the Corporation’s prior consent to merge with Marine Bank of Crisfield, Crisfield, Maryland (Marine), an insured nonmember bank with total resources of 

$4,155,000, under Somerset's charter and with its title and, incident thereto, 

to establish a branch at the sole location of Marine.

Competition. Princess Anne and Crisfield are the principal towns in Somerset 

County, which is located on the Chesapeake Bay side of the southernmost part 

of the Maryland section of the Delmarva Peninsula. Princess Anne, with a population of 1,350, is the county seat, and the surrounding area is agricultural. 

Crisfield, with a population of 3,500, is a fishing port on the Chesapeake Bay,

18 miles southwest of Princess Anne.

Somerset is the only bank in Princess Anne; and its principal competition 

emanates from eight branches, in Salisbury and Pocomoke City, of the State's 

two largest banks, which operate branch systems throughout most of the 

State, and two Salisbury offices of the State's fifth largest bank— all headquartered in the city of Baltimore. Marine faces its major competition from Bank of 

Crisfield, which traditionally has dominated the banking scene there and which 

is a subsidiary of Financial General Corporation, a registered bank holding 

company. Somerset and Bank of Crisfield are about equal in size and Marine 

is only about one-third the size of each. The main offices of Marine and Bank 

of Crisfield are two doors apart; and the latter operates an “ uptown branch" 

and a branch in Marion which intervenes Crisfield and Princess Anne. Somerset has approval for an unopened branch in Crisfield, which it plans to establish as a drive-in facility simultaneously with the merger. Crisfield does not 

now have such facilities, and the merger and simultaneous establishment of 

the branch should tend to substantially increase competition locally in Crisfield 

and the surrounding area. Among all banks competing in the area (eight, following the merger), the resulting bank will hold 12.5 percent of total deposits, 

as compared to 9.7 percent for Bank of Crisfield and 62.8 percent for the Baltimore-based banks.

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

be in restraint of trade.

Financial and Managerial Resources and Future Prospects. Financial 

resources and future prospects are favorable for this proposal. The merger 

appears to be the most logical solution to an impending management problem 

in Marine.

Convenience and Needs of the Community to be Served. Over the past 

decade or so, management of Marine has been unaggressive, permitting the 

local competing bank to overshadow Marine in almost every respect. The competing bank has established two branches to better serve the community; 

Marine has established none and has not modernized its operations or emphasized consumer loans. Somerset plans to market its consumer lending services

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BANK ABSORPTIONS APPROVED BY THE CORPORATION 115

aggressively in Crisfield and will introduce drive-in facilities in the community 

through the simultaneous establishment of a branch. Moreover, Marine's loan 

lim it of $25,000 has been restrictive.

The availability of improved and expanded loan services and drive-in facilities should prove beneficial to the public.

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

of the application is warranted.

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Franklin State Bank

Somerset, New Jersey 

to merge with

47,779 5 7

First National Bank of Scotch Plains

Scotch Plains

17,934 2

S u m m a ry re p o rt by A tto rn e y G eneral, O cto b e r 6, 1969 

Various branches of the two banks are located at distances of about 10 to 

12 miles from each other. Numerous offices of other commercial banks are 

located in the intervening areas. It would appear that the proposed merger 

would not eliminate a substantial amount of direct competition.

Under New Jersey law, Franklin Bank and Scotch Plains Bank may be permitted to open branch offices anywhere in the Second Banking District of New 

Jersey, except in communities subject to home or branch office protection. 

Since the respective service areas of the merging banks in Somerset and 

Union Counties are relatively highly developed, many of the communities there 

are already protected; therefore, the possibility of future competition between 

the merging banks through de novo branching into areas served by each other 

is accordingly limited. Moreover, Scotch Plains Bank is the smallest bank in its 

service area. Accordingly, we conclude that the proposed merger would be 

unlikely to have any significant adverse effect on potential competition.

B asis fo r C o rp o ra tio n approval, N ove m b e r 21, 1969 

Franklin State Bank, Franklin Township (P.O. Somerset), New Jersey (Applicant), an insured State nonmember bank with total deposits of $38,749,000, 

has applied, pursuant to Section 18(c) and other provisions of the Federal 

Deposit Insurance Act, for the Corporation's approval to merge with First 

National Bank of Scotch Plains, Scotch Plains, New Jersey (National), which 

has total deposits of $14,453,000. The resulting bank will operate under the 

charter and with the title of Applicant; and, as an incident to the proposed 

merger, the two existing offices of National would become branches of Applicant, increasing the number of its existing offices to seven and its approved 

but unopened branches to four.

Competition. Applicant’s present offices are all located in Somerset County 

(1968 estimated population 199,000), which is situated in north-central New 

Jersey. Both of National's offices are located in Union County (estimated 1968 

population 575,000), which is in the northern portion of New Jersey and well 

within the Newark-New York City metropolitan area.

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116 FEDERAL DEPOSIT INSURANCE CORPORATION

There is virtually no competition to be eliminated between the participating 

banks. Their service areas are separate and distinct and do not overlap. Their 

main offices are about 12 miles apart and are intervened by other municipalities containing numerous competing bank offices. Applicant's approved but 

unopened branch in Middlesex is about 7 miles from National’s offices and is 

similarly intervened by competing bank offices. Each of the participating banks 

is faced with substantial competition from other much larger banks. In addition, the proximity of the service areas to Newark and New York City makes 

the area attractive to very large banks located in those cities.

In view of the relatively small size of the participating banks, the extent of 

their present branching activity, and the home office protection feature of the 

New Jersey banking law, it does not seem likely that they would become competitive in the reasonably near future.

Consummation of this proposal would have no appreciable effect on banking 

competition. The resulting bank would have 11 of the 41 commercial banking 

offices in its area and would have 11.9 percent of the IPC deposits. There are

19 other commercial banks operating offices in this service area, and 11 of 

these are larger than the resulting bank. Four are more than twice its size.

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

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

other manner be in restraint of trade.

Financial and Managerial Resources and Future Prospects. These factors are 

acceptable with respect to both participating banks and for the resulting bank.

Convenience and Needs of the Community to be Served. The higher lending 

limit of the resulting bank will allow it to serve more corporate customers in 

the community, and the extended banking hours would allow everyone in the 

service area to bank in his own community without disrupting his regular 

schedule. In addition, the service area would have another larger bank providing a convenient alternative to other competitors.

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

of the application is warranted.

No. 61

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Central Carolina Bank & Trust Company 145,296 29 31

Durham, North Carolina

to merge with

Bank of Pittsboro 6,435 2

Pittsboro

S u m m a ry re p o rt by A tto rn e y G eneral, S e p te m b e r 24, 1969 

Pittsboro Bank’s head office is 15 miles southwest of Central Bank’s three 

branches in Chapel Hill, Orange County; the only intervening banking office is 

also situated in Orange County, some 13 miles from Pittsboro. Pittsboro 

Bank’s Moncure branch is 15 miles west of Central Bank's branch in Apex, 

Wake County; no banking alternatives intervene. The only banking alternatives 

available in Chatham County are in Siler City (population 4,455), 16 miles 

west of Pittsboro and 24 miles northwest of Moncure, where three branches of

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BANK ABSORPTIONS APPROVED BY THE CORPORATION 117

First Union National Bank of North Carolina (total deposits $827.2 million), 

and a single branch of the Planters National Bank and Trust Company (total 

deposits $101.9 million) are situated. In view of the lack of significant intervening banking alternatives between offices of the merging banks, the proposed merger may eliminate some amount of direct competition.

Since North Carolina law permits statewide branching, the merger would 

eliminate potential competition for both loans and deposits by eliminating Central Bank as one of the most likely de novo entrants into the Pittsboro-Moncure area or into the eastern half of Chatham County.

Central Bank has demonstrated an aggressive policy of expansion by opening de novo offices as well as merging with banks in areas not previously 

served. The great majority of its new offices have been located in its home 

Durham County and in counties contiguous or very near thereto. While present 

population and economic activity in the areas served by Pittsboro bank are relatively small, planned industrial activity and resulting demographic growth 

should make these areas most attractive to de novo entry in the near future. 

Pittsboro Bank’s essential monopoly of commercial banking in eastern 

Chatham County would be particularly conducive to de novo entry by Central 

Bank.

In view of Central Bank's substantial position in counties adjoining Chatham 

County and the likelihood of its de novo entry into the Pittsboro-Moncure service areas of Pittsboro Bank, as well as its present position on the outskirts of 

this service area, we conclude that the proposed merger would have an 

adverse effect on potential competition.

B asis fo r C o rp o ra tio n approval, N ove m b e r 21, 1969

Central Carolina Bank & Trust Company, Durham, North Carolina (Central), 

an insured nonmember bank with total resources of $145 million, has applied, 

pursuant to Section 18(c) and other provisions of the Federal Deposit Insurance Act, for the Corporation’s prior consent to merge with Bank of Pittsboro, 

Pittsboro, North Carolina (Pittsboro Bank), an insured nonmember bank with 

total resources of $6.4 million, under the charter and with the title of Central 

and, incident thereto, to establish branches at the two existing locations of 

Pittsboro Bank in Pittsboro and the village of Moncure, North Carolina.

Competition. Central, operating 28 branches, is a regional bank offering a 

complete range of banking services. All but four of its offices are located 

within a 55-mile radius of Durham which, together with Chapel Hill and 

Research Triangle Park, comprises the principal market area. The Durham area 

is heavily industrialized; and, through the Research Triangle Park, research 

development has become an important economic activity, spearheaded by the 

State’s three major universities which are located in the area. Agriculture continues to be an important segment of the economy, based primarily on 

tobacco and tobacco products. Pittsboro is located about 31 miles southwest 

of Durham, and the nearest branch locations of Central to an office of Pittsboro Bank are in Chapel Hill, about 16 miles northeast of Pittsboro. Pittsboro 

Bank is the only bank in Pittsboro and Moncure, and it serves a limited local 

area where agriculture is of major economic importance, although industry is 

gradually being introduced into the area.

There is no overlapping of the service areas of Central and Pittsboro Bank 

because neither bank derives business from the service area of the other, and 

there are no known instances of deposit and loan customers using the facilities of both banks. Central, ranking eighth in size among all North Carolina 

banks, competes with offices of the 10 largest banks. It is much smaller than

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

most of its major competitors, holding 2.7 percent of total deposits held by all 

banks competing in the service areas relevant to this proposal, as compared to 

28.2 percent held by the largest bank and 23.6 percent held by the second 

largest. The merger will increase Central’s share by only 0.1 percent, and its 

ranking as eighth largest bank will not be changed. In view of the recent 

approval of a branch in Pittsboro for the State’s fourth largest bank, the entry 

there of Central by way of this merger should result in substantially increased 

competition.

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

be in restraint of trade.

Financial and Managerial Resources and Future Prospects. These factors are 

satisfactory with respect to both participating banks and are so projected for 

the resulting bank.

Convenience and Needs of the Community to be Served. Pittsboro Bank, 

because of its limited resources, is unable to provide a full range of banking 

services. As a result of the merger, the Pittsboro area would gain the advantage of a regional bank which provides all types of banking facilities on a 

much larger and broader scale. These improved services include trust department facilities, full-range instalment loan services, credit cards, automation 

through a bank-owned computer system, and the services of an agricultural 

specialist. Through these improved services, the convenience and needs of the 

community would be better served.

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

of the application is warranted.

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Southern Bank and Trust Company

Mount Olive, North Carolina

13,967 8 9

to merge with

Roanoke Chowan Bank

Roxobel

3,020 1

S u m m a ry re p o rt by A tto rn e y G eneral, S e p te m b e r 22, 1969 

The merging banks’ main offices are 121 miles apart, and their closest 

offices are approximately 60 miles apart, there are several intervening banking offices. At present, no competition exists between the merging banks.

Southern Bank has, however, secured approval to open a de novo branch 

office in Windsor, seat of Bertie County, some 23 miles southeast of Roxobel. 

While this office will be substantially closer to Roanoke Chowan Bank than any 

of Southern Bank’s other offices, the size of the banks, the distance involved 

in this rural area, and the presence of an intervening banking office in Lewiston indicate that the proposed merger is unlikely to have a significantly 

adverse effect on potential competition.

B asis fo r C o rp o ra tio n approval, N o ve m b e r 21, 1969 

Southern Bank and Trust Company, Mount Olive, North Carolina (Southern), 

an insured State nonmember bank with total deposits of $12,686,000, has

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Federal Reserve Bank of St. Louis
applied, pursuant to Section 18(c) and other provisions of the Federal Deposit 

Insurance Act, for the Corporation's prior approval to merge with Roanoke 

Chowan Bank, Roxobel, North Carolina (Roanoke), which has total deposits of 

$2,566,000. The banks would merge under the charter and with the title of 

Southern; and, as an incident to the merger, the one office of Roanoke would 

become a branch of Southern, increasing the number of its offices to nine. 

Approval is also requested for the conversion, at the option of the holders 

thereof, of the cumulative convertible preferred stock to be issued in connection with this proposed transaction, into common stock of the resulting bank.

Competition. Southern operates two offices in Mount Olive (population 

4,700) and six other offices in nearby communities. The trade area served by 

Southern is predominately agricultural. The trade area served by Roanoke, 

which is the town of Roxobel (population 500) and the area within a 10-mile 

radius of Roxobel, is also primarily agricultural.

Mount Olive is 120 miles southwest of Roxobel, and the shortest distance 

between offices of the participating banks is the 80 miles between Roxobel and 

Southern’s office in Ayden. The trade areas served by Southern and Roanoke 

do not overlap and there are numerous other banking offices in the intervening 

area. There is no direct competition which would be eliminated by this proposed merger.

Southern has the necessary approvals to establish a de novo branch in 

Windsor, North Carolina, which is 23 miles southeast of Roxobel. Windsor is 

beyond the trade area served by Roanoke, and there is a commercial banking 

office of a Gatesville-based bank at Lewiston, which is located between Roxobel 

and Windsor. Legally, either of the participating banks could establish de novo 

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

it is not likely that Roanoke would branch de novo into Southern's trade area. 

The town of Roxobel is quite small, and it is also unlikely that Southern would 

seek to establish a de novo branch at that location.

All of the other banks operating in the trade area served by Southern are 

much larger than the resulting bank would be, and in the trade area served by 

Roanoke there is an office of the largest bank in the State of North Carolina. 

Consummation of this proposal would enable the resulting bank to compete 

more effectively with the much larger banks operating in the relevant trade 

area.

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

be in restraint of trade.

Financial and Managerial Resources. Financial and managerial resources are 

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

resulting bank.

Future Prospects. Southern has been a much more aggressive competitor 

than Roanoke and has grown much faster. The future prospects of Roanoke, 

as a part of the resulting bank, would be enhanced; and the future prospects 

of the resulting bank are favorable.

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

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

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

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

that approval of the application is warranted.

BANK ABSORPTIONS APPROVED BY THE CORPORATION 119

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The Northwestern Bank

North Wilkesboro, North Carolina 

to merge with

460,365 96 97

Lenoir Industrial Bank, Inc.

Lenoir

343 1

S u m m a ry re p o rt by A tto rn e y G eneral, O cto b e r 6, 1969

The proposal would merge Northwestern Bank, North Carolina's fifth largest 

commercial banking institution, and Lenoir Industrial Bank, Inc., operating in 

Lenoir, North Carolina.

Northwestern has no Caldwell County office, but it operates branches in the 

communities of Drexel, Morganton, Hickory, and Valdese, all of which are 

about 18 miles south of Lenoir. Only one bank operates in the intervening 

area, and the application indicates that Northwestern draws a substantial 

amount of business from the Lenoir area. It appears, therefore, that some 

competition exists between Lenoir Bank and Northwestern Bank. Since its 

founding, Lenoir Bank apparently has not been a vigorous institution and has 

never utilized many of the powers of a commercial bank. However, it is clear 

that it is in competition with Northwestern bank; this competition, of course, 

will be permanently eliminated by the proposed merger.

Three banks, with total deposits of about $35.1 million, operate offices in 

Caldwell County. Lenoir Bank, by far the smallest, has about 0.4 percent of 

this total, all in time and savings deposits. Northwestern's share of deposit 

and loan accounts originating in Caldwell county will not be substantially 

increased by the proposed merger. In view of Lenoir Bank's small size, we are 

of the opinion that its acquisition by Northwestern will not seriously affect 

competition.

B asis fo r C o rp o ra tio n approval, N o ve m b e r 21, 1969

The Northwestern Bank, North Wilkesboro, North Carolina (Northwestern), 

an insured State nonmember bank with total deposits of $405,089,000, has 

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

Insurance Act, for the Corporation’s prior approval to merge with Lenoir 

Industrial Bank, Inc., Lenoir, North Carolina (Industrial), with total deposits of 

$166,000. The transaction would be effected under the charter and with the 

title of Northwestern; and, as an incident thereto, the sole office of Industrial 

would become a branch of Northwestern.

Competition. Northwestern operates 96 offices throughout central and western North Carolina, and its trade area encompasses approximately one-half of 

the State. Industrial's sole office is located in Lenoir, and its trade area is confined to that city and the immediate surrounding area in Caldwell County, with 

a population of approximately 30,000. Both trade areas enjoy a healthy and 

diversified economy.

The nearest offices of the participating banks are approximately 18 miles 

apart. Northwestern reportedly does a substantial amount of business in Caldwell County. It appears, therefore, that some competition would be eliminated 

upon consummation of the merger. This, however, is not considered significant

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BANK ABSORPTIONS APPROVED BY THE CORPORATION 1 2 1

in view of the size of Industrial, its unaggressiveness, and its limited range of 

services.

The position of Northwestern as fifth largest bank in the State would remain 

unchanged. No effect on competition is anticipated in the service area of 

Northwestern. Competition in the service area of Industrial would be increased.

The Board of Directors is of the opinion that the proposed merger would not 

substantially lessen competition, tend to create a monopoly, or in any manner 

be in restraint of trade.

Financial and Managerial Resources and Future Prospects. Financial and 

managerial resources are satisfactory with respect to both participating banks 

and are so projected for the resulting bank. Future prospects of the resulting 

bank are favorable.

Convenience and Needs of the Community to be Served. The proposed 

transaction would have no effect in Northwestern’s present trade area. Present 

and potential customers in Industrial’s area would benefit through the 

increased financial resources and expanded services available through the 

resulting bank.

On the basis of the above information, the Board of Directors has concluded 

that approval of the bank’s application is warranted.

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No. 64

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The Reedsburg Bank

Reedsburg, Wisconsin 

to acquire the assets and assume

the deposit liabilities of

15,414 1 1

Bank of North Freedom

North Freedom 

and

2,050 1

The State Bank of Lime Ridge

Lime Ridge

1,112 1

S u m m a ry re p o rt by A tto rn e y G eneral, S e p te m b e r 22, 1969

The parties to the proposed transaction operate banking offices 12 miles 

apart. One bank operates an office in the intervening community of Rock 

Springs. The application indicates that banks located in Reedsburg, Baraboo, 

Rock Springs and Wisconsin Dells all compete for deposits and loan accounts 

in the vicinity of North Freedom. Thus, the proposed merger would apparently 

eliminate existing competition between Reedsburg Bank and North Freedom 

Bank.

Reedsburg Bank presently holds about 16 percent of total deposits in commercial banks in Sauk County. The proposed transaction would increase this 

share by about 2 percent. Reedsburg Bank would retain its position as the 

second largest bank in the county.

O cto b e r 6, 1969 (The S ta te B a n k o f Lim e R idge)

The parties to the proposed transaction operate banking offices 12 miles 

apart. There are no intervening banking alternatives. However, the long estabDigitized for FRASER 

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

lished common ownership and management (which has existed since 1961) 

indicate that the proposed transaction is unlikely to have a significantly 

adverse effect on competition.

B asis fo r C o rp o ra tio n approval, N o ve m b e r 21, 1969

The Reedsburg Bank, Reedsburg, Wisconsin (Applicant), an insured State 

nonmember bank with total deposits of $14,283,400, has applied, pursuant to 

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

approval to acquire the assets of and assume the liability for deposits made in 

Bank of North Freedom, North Freedom, Wisconsin (First Bank), an insured 

State nonmember bank with total deposits of $1,901,500, and The State Bank 

of Lime Ridge, Lime Ridge, Wisconsin (Second Bank), an insured State nonmember bank with total deposits of $991,200. Upon consummation of these 

proposed transactions First Bank and Second Bank would cease to operate. 

The State Attorney General has ruled that a bank may not file an application 

for permission to establish a branch unless the community in which the 

branch is to be located is “ bankless.” As soon as these proposed transactions 

are consummated, Applicant intends to immediately file the necessary applications for permission to establish branches in North Freedom and Lime Ridge.

Competition. Applicant operates only one office in Reedsburg (population 

5,000), and First Bank operates only one office in North Freedom (population 

600), which is 12 miles southeast of Reedsburg. Located in the intervening 

area is a unit bank at Rock Springs; and there is very little, if any, direct competition between Applicant and First Bank.

Second Bank operates one office at Lime Ridge (population 150), which is 

12 miles southwest of Reedsburg. Since 1961, two officers of Applicant have 

owned and managed Second Bank. It has been operated more like a branch of 

Applicant than as an independent unit, and there is no significant amount of 

direct competition between Applicant and Second Bank.

Due to the nature of the trade areas served by the participating banks, and 

the restrictive State laws governing the establishment of de novo branches, 

there is no potential competition which would be eliminated by these proposed 

transactions.

Applicant is the second largest bank in the relevant trade area, and these 

proposed transactions would not change that position. In addition to the participating banks, there are six other banks operating nine offices in the relevant trade area. Applicant's primary competitor is Farmers and Merchants 

Bank, Reedsburg, Wisconsin, which has IPC deposits of over $11 million and 

operates one branch at Loganville, which is south of Reedsburg, between Lime 

Ridge and North Freedom.

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

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

any manner be in restraint of trade.

Financial Resources. First Bank and Second Bank have not grown as fast as 

Applicant, but the resulting bank would have adequate financial resources.

Managerial Resources. First Bank has only two active employees who also 

own control of the bank. These two individuals, who hold the titles of president and cashier, have served the bank for over 40 years and would like to 

retire, but they have not been able to acquire successor management. The 

acquisition of First Bank by Applicant would solve the problem of management 

succession at First Bank.

Since 1961, Second Bank has been operated by two employees, and management has been provided by the two officers of Applicant who own control

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BANK ABSORPTIONS APPROVED BY THE CORPORATION 123

of Second Bank. Second Bank is so small that its earnings are not sufficient to 

pay the salary of a qualified chief executive officer. The acquisition of Second 

Bank by Applicant would merely formalize a situation which has existed since 

1961.

Future Prospects. In view of the nature of the trade areas served by First 

Bank and Second Bank, the management problems, and the earnings, the 

future prospects of these two banks as independent units are not favorable. 

Future prospects are better for the resulting bank than they are for the participating banks operating as independent units.

Convenience and Needs of the Community to be Served. These proposed 

transactions would have no appreciable effect in the Reedsburg area. Temporarily at least, consummation of these proposed transactions would inconvenience the customers of First Bank and Second Bank since the two communities 

would be without banking facilities for a short period of time. Absent these 

proposed transactions, the controlling shareholders of both First Bank and 

Second Bank state that they will liquidate the two banks, which would leave 

the communities without banking facilities. In the short run, these proposed 

transactions would inconvenience the customers of First Bank and Second 

Bank, but in the long run, it would benefit the communities of North Freedom 

and Lime Ridge by providing them with banking facilities offering a wider 

range of services and a progressive management responsive to the needs of 

the communities it serves.

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

that approval of the applications is warranted.

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Pioneer Bank of Arizona

Phoenix, Arizona 

(change title to Great 

Western Bank & Trust Company) 

to merge with

59,084 10 18

Great Western Bank & Trust Company

Tucson

62,389 8

S u m m a ry re p o rt by A tto rn e y G eneral, D ecem ber 1, 1969

Since Phoenix and Tucson are over 115 miles apart, only slight competition 

exists between the two banks. A small portion of the commercial loans of 

Great Western (4.5 percent of its dollar total) originates in Pioneer Bank's area 

and a smaller percentage of Pioneer Bank's loans and deposits originate in 

Great Western's service area.

As of June 30, 1969, seven banking organizations operated eight banks in 

the Phoenix SMSA. Pioneer Bank, the fifth largest bank and fifth largest banking organization had about 2.5 percent of IPC deposits, while the four largest 

banking organizations controlling five banks, had about 95 percent of such 

deposits.

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124 FEDERAL DEPOSIT INSURANCE CORPORATION

Great Western's deposits in its Tucson SMSA branches account for about 

5.7 percent of IPC deposits. There are six banks representing five banking 

organizations operating in the Tucson SMSA and the three largest banking 

organizations controlling the four largest banks (which do not include Great 

Western) have about 89 percent of IPC deposits.

Arizona law permits statewide branch banking. Great Western can be 

regarded as one of the most likely potential entrants by de novo branching 

into the Phoenix SMSA area. Since Great Western’s branches are divided 

between the northern counties and Tucson in the south, Phoenix, being in the 

central part of the state with its tremendous rate of growth, would represent 

an attractive potential area of entry. Great Western is also the largest bank in 

the state which is not already in the Phoenix SMSA, a highly concentrated 

banking area.

Pioneer Bank would also be a likely potential entrant into the Tucson SMSA 

area. It is the second largest bank in the state which is not already in the 

Tucson SMSA.

As of June 30, 1969, there were thirteen banks operating in Arizona. However, two banking organizations controlling three banks held nearly 80 percent 

of state IPC deposits. The merging banks rank approximately sixth and seventh 

in the state with less than 2 percent each of such deposits and as a result of 

the merger would rank approximately fifth.

The merged bank would constitute the fourth statewide banking organization. The overall effect of this merger is not likely to be significantly adverse.

B asis fo r C o rp o ra tio n approval, D ecem ber 1, 1969

Pioneer Bank of Arizona, Phoenix, Arizona (Pioneer), an insured nonmember 

bank with total resources of $59 million, has applied, pursuant to Section 

18(c) and other provisions of the Federal Deposit Insurance Act, for the Corporation's prior consent to merge with Great Western Bank & Trust Company, 

Tucson, Arizona (Western), an insured nonmember bank with total resources of 

$62 million, under the charter of Pioneer and with Western's title and, incident 

thereto, to establish the eight existing and two approved but unopened offices 

of Western as branches of the resulting bank.

Competition. The main office and eight of Pioneer's nine branches are 

located in and serve the Phoenix metropolitan area, which includes all of Maricopa County. The other branch is located in Prescott, some 100 miles north, 

in Yavapai County. The main office and two of Western's seven branches are 

located in and serve the Tucson metropolitan area, which includes all of Pima 

County. Tucson is 125 miles southeast of Phoenix. Three of the branches are 

located singly in Winslow, Holbrook, and Snowflake, in Navajo County, more 

than 200 miles northeast of Phoenix. One branch is in Kingman, county seat 

of Mohave County, 250 miles west of Holbrook. The remaining branch is 

located in Window Rock, 130 miles northeast of Holbrook in Apache County. 

These six areas are separate and distinct and none of them overlap. There is 

no competition between Pioneer and Western to be eliminated by their 

merger. Preemptive branching by the larger banks reduces the ability of others 

to expand through de novo branching when they lack an adequate financial 

base.

There are only 13 banks and 302 operating banking offices in the entire 

State of Arizona. More than 90 percent of the aggregate of bank deposits and 

loans is concentrated in the four largest banks which operate 87 percent of 

the offices. The two largest banks together hold more than 70 percent of the 

deposits and loans and operate 200 (two-thirds) of the offices, covering the

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entire State. The second and fourth largest banks are subsidiaries of the $10 

billion Western Bancorporation, a California-based registered bank holding company. Western and Pioneer, ranking sixth and seventh, respectively, are about 

equal in size and together hold about 3 percent of the total bank deposits and 

loans and operate 18 of the 302 banking offices. The resulting bank would 

rank sixth among the 12 remaining banks. The principal competitive effects of 

the merger would occur in the Phoenix and Tucson areas where, as a result of 

integrated management capabilities and greater resources and capital base, 

the resulting bank could provide stronger competition to these much larger 

and aggressive competitors.

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

be in restraint of trade.

Financial and Managerial Resources and Future Prospects. These factors are 

resolved as favorable for the proposal.

Convenience and Needs of the Com m unity to he Served. The resulting bank 

will provide trust and credit card services, which Pioneer now provides, at the 

offices of Western. It will be financially able to install its own computer system 

rather than rely, as both banks now do, on servicing by correspondents. 

Another benefit is a larger lending limit, double that of each bank now operating separately, which would enable the resulting bank to compete more effectively for increasingly important industrial business in the State. The greater 

resources and capital would generate stronger rivalry with the larger banks 

which dominate the scene in Arizona— in all, an ultimate benefit to the public.

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

of the application is warranted.

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Financial Bank, Inc.

Fort Wayne, Indiana 

(in organization; change title to 

The Peoples Trust and Savings Company) 

to merge with

6

The Peoples Trust and Savings Company

Fort Wayne

117,071 6

S u m m a ry re p o rt by A tto rn e y G eneral, N o ve m b e r 26, 1969 

[This] proposal is part of a transaction which will result in a presently existing 

bank becoming a wholly owned subsidiary of a one-bank holding company. 

Thus, [this] merger is merely part of a corporate reorganization and as such will 

have no effect on competition.

B asis fo r C o rp o ra tio n approval, D ecem ber 1, 1969 

Pursuant to Sections 5 and 18(c) and other provisions of the Federal 

Deposit Insurance Act, applications have been filed for Federal deposit insurance for Financial Bank, Inc., Fort Wayne, Indiana (New Bank), a proposed 

new bank in organization; and for consent to merge with The Peoples Trust

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126 FEDERAL DEPOSIT INSURANCE CORPORATION

and Savings Company, Fort Wayne, Indiana (Old Bank), an operating insured 

nonmember bank; and for permission to establish six branches. Old Bank presently operates its main office and five branches and has approval to establish 

a seventh office; it has total resources of $117 million. The resulting bank 

would operate under the charter of New Bank, and with Old Bank's title, at the 

seven locations where Old Bank is now or will be operating.

The proposal involves a formation of a one-bank holding company to hold 

the stock ownership of the resulting bank. New Bank will not be in operation 

as a commercial bank prior to consummation of the transaction and will begin 

business at the present locations of Old Bank with the latter’s assets, liabilities, capital, and management.

Old Bank has provided needed and useful banking services to its trade area 

on a convenient and successful basis for many years. The subject proposal will 

not alter these services or the service area and, involving only a change in 

form of corporate organization, will, of itself, have no effect on competition. All 

factors required to be considered relative to each application are favorably 

resolved.

On the basis of the above information, the Board of Directors has concluded 

that approval of the applications is warranted.

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The Central Jersey Bank and Trust Company

Freehold, New Jersey 

to merge with

209,476 18 20

The National Bank of Westfield

Westfield

34,292 2

S u m m a ry re p o rt by A tto rn e y G eneral, D ecem ber 1, 1969

The closest office of Central Bank is about 27 miles from Westfield, with 

several other banks in the intervening area. Thus, the proposed merger would 

not appear to eliminate any significant amount of direct competition between 

the two banks.

Recent legislation in New Jersey broadens geographic areas for bank expansion beyond the former limits of county lines by dividing the state into three 

banking districts. Under this law, banks may branch within an entire district. 

However, the law retains community-wide home protection against de novo

branching and provides branch office protection in communities of less than 

7500 persons. Thus, while Central Bank is presently precluded from branching 

de novo into either community now served by Westfield Bank, it could establish 

branches elsewhere in Union County, possibly coming into competition with 

Westfield Bank. The proposed merger would eliminate this possibility.

The recent broadening of the sphere of permissible branch operation for 

commercial banks in New Jersey has induced substantial market extension 

activities, both by de novo branch application and by merger. Major merger 

activity by the largest banks in a district could result in undue concentration 

of commercial banking among a few very large institutions. Therefore we consider it important that the largest banks in a district enter new areas de novo,

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or, in the alternative, through merger with smaller banks in the new areas they 

wish to serve. Entry in this manner would tend to inject new competitive vigor 

into the area as the entering bank can be expected to attempt to increase its 

market share. At the same time, leading local banks, most able to compete 

with the large entering banks, would be preserved. Preservation of leading 

local banks may also result in their affiliation with one another in new banking 

institutions, capable of competing with the largest banks in the district on a 

broad geographic scale.

Central Bank is one of the largest banks in the Second Banking District. 

Westfield Bank, however, is the smallest of three commercial banks which 

operate offices in the town of Westfield. Its two major competitors in Westfield 

are both substantially larger; one is the second largest bank in the District. 

Westfield Bank's service area includes most of central Union County, generally 

the area between the two of the county’s largest communities, Plainfield and 

Elizabeth. Several of the county’s largest banks operate offices in this area, 

controlling greater percentages of deposits in the area than Westfield Bank. 

Westfield Bank is one of the smaller banks in Union County as a whole, controlling about 3 percent of commercial bank deposits therein.

In view of the size and relative position of Westfield Bank in its service 

area, Union County and the Second Banking District, we conclude that the proposed merger would be unlikely to have a significantly adverse effect on potential competition.

B asis fo r C o rp o ra tio n approval, D ecem ber 1, 1969

The Central Jersey Bank and Trust Company, Freehold Township (P.O. Freehold), New Jersey (Central), an insured State nonmember bank with total 

deposits of $188,604,000, has applied, pursuant to Section 18(c) and other 

provisions of the Federal Deposit Insurance Act, for the Corporation's prior 

approval to merge with The National Bank of Westfield, Westfield, New Jersey 

(National), which has total deposits of $30,170,000. The resulting bank would 

operate under the charter and with the title of Central; and, as an incident to 

the proposed merger, the two offices of National would become branches of 

Central, increasing the number of its offices to 20.

Competition. Central serves Monmouth County, New Jersey (estimated 1968 

population 450,000), and has its main office in Freehold Township. It also 

operates 17 branches throughout the county. National operates two offices in 

Union County (estimated 1968 population 575,000). Its main office is in Westfield (estimated 1968 population 34,000) and it operates its only branch in 

Mountainside (estimated 1968 population 8,000). National's service area consists of Westfield and Mountainside and all or part of the surrounding communities of Springfield, Cranford, Garwood, Clark, Scotch Plains, and Fanwood.

There appears to be no competition between the participating banks. Their 

service areas are entirely separate, with Middlesex County lying between 

them. The banks' closest offices are 27 road miles apart and are intervened by 

over 40 banking offices of 14 different banks. Further, neither bank has any 

loans or deposits which originate in the service area of the other bank.

The principal effect of this merger will be in the area served by National, 

where a comparatively small bank will be replaced by a larger bank from out 

of the area. National's share of the market in its service area (19.7 percent of 

IPC deposits) would not change for the resulting bank, inasmuch as Central 

does not presently serve the area. In addition, there would be 18 offices of 

seven other banks remaining in that service area. Only one of the seven other 

banks is smaller than National. Furthermore, in the service area, there is comDigitized for FRASER 

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128 FEDERAL DEPOSIT INSURANCE CORPORATION

petition from the very large New York City banks and from other financial 

institutions.

In view of the small size of National, the number of existing banking offices 

in the relevant trade area, and the main office protection feature of New 

Jersey statutes, it does not seem likely that the participating banks would 

become competitive in the reasonably near future.

The Board of Directors is of the opinion that the proposed merger would not 

substantially lessen competition, tend to create a monopoly, or in any other 

manner be in restraint of trade.

Financial and Managerial Resources and Future Prospects. Financial and 

managerial resources and future prospects are satisfactory with respect to 

each of the participating banks, and they are so projected for the resulting 

bank.

Convenience and Needs of the Community to be Served. The principal effect 

of this merger would be felt in the service area of National, where a relatively 

small bank wouJd be replaced by a larger bank from out of the area, which 

would be capable of offering a full range of banking services not now offered 

by National, thus providing another convenient alternative to the present banking outlets.

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

of the application is warranted.

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Peoples Bank of South Jersey

Penns Grove, New Jersey 

to merge with

5,247 3 6

The Clayton National Bank

Clayton

10,785 3

S u m m a ry re p o rt by A tto rn e y G eneral, O cto b e r 21, 1969

Peoples' head office is located approximately 14.5 miles west of Clayton's 

head office, and the shortest distance between offices of Peoples and Clayton 

is approximately 12.5 miles. There are two banks operating offices in the area 

between Peoples’ and Clayton's closest offices.

It would, therefore, appear that the two banks are engaged in only limited 

direct competition.

Recent banking legislation in New Jersey divides the state into three banking districts; cross-county merger and branching is now permitted within an 

entire district. However, such branches may not be located in communities 

where a bank has its head office or where a branch office exists if the population is less than 7,500.

The small size of Peoples and the presence of large banks in other sections 

of the District able to enter Clayton’s service area tends to reduce any anticompetitive effects from the loss of Peoples' potential competition.

Similar considerations apply to the possibility of Clayton expanding by de

novo branching into Salem County. While Clayton has opened two new 

branches in the past four years, its small size, the large number of banks 

already operating in Salem near Peoples' offices, and the presence of very

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large banks in other sections of the District tends to make unlikely any significant reduction in potential competition as a result of the merger.

In view of the above factors, we conclude that the proposed merger is not 

likely to have any significantly adverse effect on potential competition in either 

Salem or Gloucester Counties.

B asis fo r C o rp o ra tio n approval, D ecem ber 1, 1969

Peoples Bank of South Jersey, Pilesgrove Township (P.O. Penns Grove), New 

Jersey (Peoples), an insured State nonmember bank with total deposits of 

$3,782,000, has applied, pursuant to Section 18(c) and other provisions of the 

Federal Deposit Insurance Act, for the Corporation's prior approval to merge 

with The Clayton National Bank, Clayton, New Jersey (National), which has total 

deposits of $8,999,000. The banks would merge under the charter and with 

the title of Peoples; and, as an incident to the merger, the three offices of 

National would become branches of Peoples, increasing the number of its 

offices to six. Approval is also requested for a reduction in the par value of 

common stock, but there would be no diminution of total capital funds.

Competition. Peoples' main office is in the unincorporated community of 

Sharptown, in Pilesgrove Township (population 3,100), in Salem County. Peoples also operates two branches in Penns Grove, which is west of Sharptown, 

in Salem County, on the Delaware River. Peoples' trade area is the northwestern portion of Salem County. National operates three offices in the central section of Gloucester County. The main office of National is in Clayton (population 5,200) and its two branches are in the small nearby communities of Aura 

and Iona.

The shortest distance between offices of the participating banks is the 12 

miles between Sharptown and the branch of National at Aura. The trade areas 

served by Peoples and National do not overlap, and there are other commercial banking offices in the intervening area at Woodstown. There is no perceptible amount of direct competition which would be eliminated by this proposed 

merger.

Peoples also has the necessary approvals to establish two de novo branches 

at Deepwater, in Salem County, and Hurffville, in Gloucester County. Deepwater is farther from the trade area served by National than are any of Peoples' 

existing offices, and Hurffville is also beyond National's trade area. There are 

commercial banking offices of competing banks in Glassboro, which is located 

between Hurffville and the trade area served by National.

State law provides complete home office protection, and de novo branches 

are prohibited in communities of less than 7,500 population, if a competing 

bank already has a branch office in that community. The trade areas served by 

the participating banks are sparsely populated, and it does not seem likely 

that either would branch de novo into the other's trade area. Thus, potential 

competition between the participating banks would seem unlikely under present conditions.

Peoples is the smallest bank operating in its trade area, with 10.1 percent 

of the IPC deposits, while its principal competitor, with two offices in Penns 

Grove, has 41.8 percent of the IPC deposits. This proposed transaction would 

not reduce the number of banking offices in the relevant trade area; and, in 

addition to the three offices of Peoples, there are six offices of competing 

banks serving the residents of the area.

National has the second largest share of the IPC deposits in its trade area, 

but the market is fairly evenly divided, with the smallest of the four banks 

operating in the area having 20.7 percent and the largest having 31.5 percent.

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Two of the banks operating in the area are larger than National, and the other 

is not substantially smaller than National. This proposal would not reduce the 

number of commercial banking offices in the area, and there would still be 

seven commercial banking offices to serve the residents of the area.

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

be in restraint of trade.

Financial and Managerial Resources. Financial and managerial resources are 

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

resulting bank.

Future Prospects. Certain economies are anticipated as a result of this proposal, and the future prospects of the resulting bank are favorable.

Convenience and Needs of the Com m unity to be Served. This proposed 

transaction should result in more economical services in the relevant trade 

areas and should produce a bank with management responsive to the needs of 

the communities it serves.

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

that approval of the application is warranted.

Resources B anking O ffices

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In

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Southern Bank and Trust Company

Greenville, South Carolina 

to merge with

67,673 15 16

Blacksburg State Bank

Blacksburg

2,323 1

S u m m a ry re p o rt by A tto rn e y G eneral, O c to b e r 1, 1969 

Southern's new Gaffney branch office is located approximately 8 miles 

southwest of Blacksburg; there are no intervening banking alternatives. 

Although there are other banking offices in Gaffney, including offices of one of 

South Carolina's largest commercial banks, it would appear that the proposed 

merger may eliminate some existing competition, particularly in view of the 

small number of banking offices in Cherokee County. The proposed merger 

would reduce the number of banking alternatives in Cherokee County from four 

to three.

B asis fo r C o rp o ra tio n approval, D ecem ber 1, 1969 

Southern Bank and Trust Company, Greenville, South Carolina (Applicant), an 

insured State nonmember bank with total deposits of $57,161,000, has 

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

Insurance Act, for the Corporation's prior approval to merge with Blacksburg 

State Bank, Blacksburg, South Carolina (Blacksburg), which has total deposits 

of $2,096,000. The banks would merge under the charter and with the title of 

Applicant; and, as an incident to the merger, the one office of Blacksburg 

would become a branch of Applicant, increasing the number of its authorized 

offices to 17, two of which are approved but unopened.

Competition. Applicant serves a trade area consisting of six counties in the 

western piedmont and northwestern sections of South Carolina. This area,

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known as the Piedmont Industrial Crescent, has an estimated population of 

between 300,000 and 400,000. The economy of this area is largely dominated 

by the textile and related industries.

Blacksburg is located approximately 60 miles northeast of Applicant’s main 

office in Greenville. Its 1960 population was 2,174, and that of its trade area, 

which includes nearby Gaffney, is estimated at 25,000. The textile industry is 

important in this trade area, but agriculture is also of importance, with the 

principal products being peaches, cotton, and livestock.

Blacksburg is the only bank in its community, and its primary competition is 

from three banks operating in Gaffney, 8 miles to the southwest. These competitors consist of one local bank, a branch of the second largest bank in the 

State, and a branch of Applicant which opened in March 1969. The proposed 

merger would reduce the number of banking alternates from four to three and 

increase Applicant's share of the relevant market by a small amount, but 

Applicant would have the smallest share of the three remaining banks. This 

proposal would eliminate the smallest of the four banks operating in the 

Blacksburg-Gaffney trade area and replace it with a branch of an aggressive 

medium-sized bank which has the resources to compete effectively with the 

other banks in the area.

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

be in restraint of trade.

Financial Resources. The financial resources are satisfactory with regard to 

both participating banks and are so projected for the resulting bank.

Managerial Resources. The managerial resources of both institutions are 

regarded as satisfactory, but to Blacksburg's management the proposed transaction would add considerable depth, which is now lacking because of the bank's 

relatively small size.

Future Prospects. Applicant has been an aggressive competitor and has 

experienced substantial growth, while Blacksburg's growth has been considerably slower. The future prospects of Blacksburg, as a part of the resulting bank, 

would be enhanced; and the future prospects of the resulting bank are favorable.

Convenience and Needs of the Com m unity to be Served. The proposed 

merger would have no significant effect on the overall trade area of Applicant, 

but it would improve the quantity of banking services in the Blacksburg area.

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

that approval of the application is warranted.

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First County Bank

Driver, Virginia

(in organization; change title to 

The Bank of Nansemond) 

to merge with

1

The Bank of Nansemond

Nansemond

2,757 1

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S u m m a ry re p o rt by A tto rn e y G eneral, S e p te m b e r 24, 1969 

The proposed merger is part of a plan under which First Virginia Bankshares 

Corporation, a registered bank holding company, proposes to acquire all of the 

voting shares of First County Bank, a non operating institution, which js to be 

the resulting bank of its proposed merger with The Bank of Nansemond. The 

proposed merger, therefore, will combine an operating bank with a non operating institution. As such, and without regard to the planned subsequent acquisition of First County Bank by First Virginia Bankshares Corporation, the proposed merger will have no effect on competition.

B asis fo r C o rp o ra tio n approval, D ecem ber 1, 1969 

Pursuant to Sections 5 and 18(c) and other provisions of the Federal 

Deposit Insurance Act, applications have been filed for Federal deposit insurance for First County Bank, Driver, Virginia (First), a proposed new bank in 

organization, and for consent to its merger with The Bank of Nansemond, 

Driver, Virginia (Nansemond), with total resources of $2,757,000, under First's 

charter and with Nansemond’s title. The resulting bank will operate from the 

sole office of Nansemond.

The new bank formation and merger are designed solely as a vehicle for 

First Virginia Bankshares Corporation, Arlington, Virginia, a registered bank 

holding company, to acquire controlling ownership of Nansemond. The holding 

company has filed the appropriate application with the Board of Governors of 

the Federal Reserve System for consent to the acquisition of 90 percent or 

more of the voting shares of the successor bank to the merger. First will 

not be in operation as a commercial bank prior to the merger, following which it 

will operate the same banking business at the same location as Nansemond 

and with the same executive management. The proposal, of itself, will not 

change the banking services which Nansemond has provided usefully and conveniently to the Driver community for several years. Nansemond is by far the 

smallest bank in its service area, and its primary competition is provided by 

much larger banks in nearby Chesapeake and Portsmouth, Virginia, including 

branches of the State's two largest banks which operate multiple branch systems. All factors required to be considered relative to each application are 

favorably resolved.

On the basis of the above information, the Board of Directors has concluded 

that approval of the applications is warranted.

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Union State Bank

Amery, Wisconsin 

to merge with

8,428 1 1

State Bank of Deer Park

Deer Park

1,390 1

S u m m a ry re p o rt by A tto rn e y G eneral, D ecem ber 1, 1969 

Sixty-two percent of Union Bank’s common stock and seventy-four percent 

of Deer Park Bank’s common stock is owned by the Otto Bremer Foundation 

and the Otto Bremer Company, a wholly-owned subsidiary of the Foundation.

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The Deer Park Bank stock was acquired in April 1966, at which time two directors of Union Bank were elected to the board of Deer Park Bank. The Otto 

Bremer Foundation and the Otto Bremer Company, directly or in combination, 

own a majority of the stock of 30 banks located in Wisconsin, Minnesota and 

North Dakota. As of year-end 1968, these 30 subsidiary banks had aggregate 

deposits of $303.5 million; the largest subsidiary, First American National 

Bank, St. Cloud, Minnesota, had total deposits of $27.3 million.

The merging banks are located approximately ten miles apart with no banks 

in the intervening area. The closest bank to the merging banks is Bank of 

Clear Lake (total deposits, $3.9 million), which is seven miles southeast of 

Union Bank and nine miles northeast of Deer Park Bank. Thus, it appears that, 

but for the common ownership, the banks would be in competition. This 

merger will eliminate the potential for the resumption of this competition 

should such common ownership be terminated.

B asis fo r C o rp o ra tio n approval, D ecem ber 1, 1969

Union State Bank, Amery, Wisconsin (Applicant), an insured State nonmember bank with total deposits of $7.7 million, has applied, pursuant to Section 

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

to merge with State Bank of Deer Park, Deer Park, Wisconsin (Deer Park 

Bank), an insured State nonmember bank with total deposits of $1.3 million. 

The merger would be effected under Applicant’s charter and with its title. Upon 

consummation of this proposed transaction Deer Park Bank would cease to 

operate. The State Attorney General has ruled that a bank may not file an 

application for permission to establish a branch unless the community in 

which the branch is to be located is "bankless.” As soon as this proposed 

transaction is consummated, Applicant intends to immediately file the necessary applications for permission to establish a branch in Deer Park.

Competition. Applicant’s one office in Amery (population 2,200) is 10 miles 

from the one office of Deer Park Bank in Deer Park (population 250), and 

there are no commercial banking offices in the intervening area. There is a commercial bank at Clear Lake, which is only 7 miles from Amery and 9 miles 

from Deer Park. The merging banks are subsidiaries of the Otto Bremer Foundation, St. Paul, Minnesota, a registered bank holding company. Because of 

this affiliation, there is no competition between Applicant, and Deer Park Bank; 

and the evidence indicates that prior to the advent of their common ownership 

in 1966 there was little, if any, competition between them.

There are no other affiliates of the Otto Bremer Foundation among the eight 

banks considered to be competitors of the merging banks. Deer Park Bank is 

the smallest, and three of the banks are each larger than Applicant. The 

resulting bank would be the third largest in the area, with IPC deposits of $8.4 

million. The other banks have IPC deposits ranging from $1.6 million to $9.3 

million. The merger would not change the share of banking business controlled 

by the holding company in this area and would have no material effect on the 

existing competitive banking structure.

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

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

manner be in restraint of trade.

Financial and Managerial Resources and Future Prospects. These are favorable with respect to the merging banks and are so projected for the resulting 

bank.

Convenience and Needs of the Com m unity to be Served. This proposed 

transaction would have no appreciable effect in the Amery area. Temporarily at

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134 FEDERAL DEPOSIT INSURANCE CORPORATION

least, consummation of this proposal would inconvenience the customers of 

Deer Park Bank since the community would be without a banking facility for a 

short period of time. However, after the branch is established at Deer Park, 

the credit needs of that area would be more adequately and conveniently 

served by the significantly increased legal lending limit. Neither of the participating banks has an agricultural representative, but one will be provided by 

the resulting bank.

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

that approval of the application is warranted.

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Citizens State Bank

Big Rapids, Michigan 

(change title to Central 

Michigan Bank) 

to merge with

13,083 3 5

Central Michigan Bank

Barryton

6,423 2

S u m m a ry re p o rt by A tto rn e y G eneral, N o ve m b e r 18, 1969 

The proposal would merge the $11.8 million Citizens Bank with the $5.3 

million Central Bank.

Head offices of the merging banks are located about 20 miles apart. However, Citizens Bank has a branch office in the city of Mecosta, about eight 

miles west of Central Bank's home office. And Central Bank has a branch 

office in Remus, some six miles southeast of Mecosta. There are no banks 

operating in the intervening areas. Thus, it would appear that substantial 

direct competition exists between the merging banks. This competition will, of 

course, be permanently eliminated by consummation of the proposed merger.

Commercial banking in Mecosta County is highly concentrated. Four banks 

operate in the county with total deposits, as of June 30, 1968, of about $31 

million. The top three banks, including the Applicants, control some 97.3 percent of these deposits. Citizens Bank is the second largest with about 39.5 

percent, and Central Bank ranks third with some 16.3 percent. Should this 

merger be consummated, only three banks would remain in the county, and 

the resulting bank would be the largest- with more than 56 percent of total 

county-wide deposits. The merger would result in a significant increase in the 

level of concentration.

The proposal would merge the second and third largest commercial banks in 

Mecosta County. It would reduce the number of banks in the county to three, 

eliminate apparent substantial existing competition, and significantly increase 

the level of concentration. The overall effect of this merger on competition will 

be adverse.

B asis fo r C o rp o ra tio n approval, D ecem ber 4, 1969 

Citizens State Bank, Big Rapids, Michigan (Applicant), an insured State nonmember bank with total deposits of $11,488,000, has applied, pursuant to 

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

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the Corporation's prior consent to merge with Central Michigan Bank, Barryton, 

Michigan (Central), which has total deposits of $5,581,000, under the charter 

of Applicant and with the title of Central and, incident thereto, to establish the 

two offices of Central as branches.

Com petition. All offices of the merged bank will operate in Mecosta County, 

located in north-central Michigan. Big Rapids, the county seat, is located in the 

west-central portion of the county, while Barryton is in the northeastern portion of the county, some 22 miles distant. There is a limited overlapping of 

the service areas of Applicant and Central, principally in the areas of their 

branches in Remus and Mecosta, which are about 6 miles apart. The merged 

bank will be the largest of the three banks operating in the county, but six 

banking offices located in contiguous counties also provide competition. The 

substitution of branches of Applicant for Central's offices would have no discernible anticompetitive effects.

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

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

manner be in restraint of trade.

Financial and Managerial Resources and Future Prospects. These factors are 

satisfactory with respect to the participating banks and are so projected for 

the resulting bank.

Convenience and Needs of the Com m unity to be Served. Central, because of 

its smaller resources, offers limited services. As a result of the merger, the 

areas served by Central would gain the advantage of a larger bank with a 

larger lending limit. Also, the increased likelihood of offering trust services 

after the merger is consummated indicates that the resulting bank could better 

serve the convenience and needs of the community.

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

that approval of the application is warranted.

Resources

/ m

B anking Offices

No. 73

un

thousands

o f dollars)

In

operation

To be

operated

Great American Bank & Trust Company

Baton Rouge, Louisiana 

(in organization; change title to American 

Bank & Trust Company) 

to merge with

100 7

American Bank & Trust Company

Baton Rouge

257,400 7

S u m m a ry re p o rt by A tto rn e y G eneral, D ecem ber 2, 1969 

The proposed merger is part of a transaction which will result in Great 

American Bank & Trust Company becoming a wholly owned subsidiary of a 

one-bank holding company. Thus, this merger is merely part of a corporate 

reorganization and as such will have no effect on competition.

B asis fo r C o rp o ra tio n approval, D ecem ber 18, 1969 

Pursuant to Sections 5 and 18(c) and other provisions of the Federal 

Deposit Insurance Act, applications have been filed for Federal deposit insurance for Great American Bank & Trust Company, Baton Rouge, Louisiana (New

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136 FEDERAL DEPOSIT INSURANCE CORPORATION

Bank), a proposed new bank in organization; and for consent to merge with 

American Bank & Trust Company, Baton Rouge, Louisiana (Old Bank), an operating insured nonmember bank; and for permisssion to establish seven 

branches. Old Bank presently operates seven offices and has the necessary 

approvals to establish another de novo branch. As of September 30, 1969, Old 

Bank had total resources of $257 million. The resulting bank would operate 

under the charter of New Bank and with the title of Old Bank.

The proposal involves the formation of a one-bank holding company to hold 

stock ownership of the resulting bank. New Bank will not be in operation as a 

commercial bank prior to consummation of the transaction and will begin business at the present locations of Old Bank with the latter’s assets, liabilities, 

capital, and management.

Old Bank has provided needed and useful banking services to its trade area 

on a convenient and successful basis for many years. The subject proposal will 

not alter these services or the service area and, involving only a change in 

form of corporate organization, will, of itself, have no effect on competition. All 

factors required to be considered relative to each application are favorably 

resolved.

On the basis of the above information, the Board of Directors has concluded 

that approval of the applications is warranted.

1 Bank o f A m erica operated 962 branches in C alifo rnia as o f A p ril 1, 1968. FDIC s ta tis tic s

do not include branches in foreign countries.

2 In a co ncu rre n t a pplication, Roachdale Bank and T ru st C om pany sought the approval

of the Board of Governors o f the Federal Reserve System to m erge The State Bank o f

R ussellville under the title “ Tri-C ounty Bank & T ru st C om pany” ; the sole office of

R ussellville Bank w ould be discontinued, and its operations com bined w ith the sole office

o f the State Bank of R ussellville w ould be operated as a branch of the A pplicant.

3 Represents p ro fo rm a a m ount o f assets o f W indsor H eights office of Bankers T rust C om ­

pany to be tra n sfe rre d to the proposed new bank.

4 Bank o f H awaii operates 53 offices in the State o f H aw aii and seven offices on various

P acific Islands.

5 M illik in T ru st C om pany and A p p lica n t at present occupy offices in the sam e b uilding.

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Federal Reserve Bank of St. Louis
LEGISLATION AND REGULATIONS

PART THREE

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139

FEDERAL BANKING LEGISLATION— 1969

P u b lic Law 9 1-71 

9 1 s t C ongress, S .J. Res. 149 

S e p te m b e r 22, 196 9

An Act

To extend for three months the authority to limit the rates of interest or dividends payable on time and savings deposits and accounts.

Resolved by the S en ate and H ouse of R epresentatives of the U nited S tates of

A m erica in Congress assem bled, That:

Section 7 of the Act of September 21, 1966, as amended (Public Law 89- 

597), is amended by striking out “ September" and inserting in lieu thereof 

“ December".

Approved September 22, 1969.

P u b lic Law 9 1 -1 5 1 

9 1 s t C ongress, S. 2 5 7 7 

D ecem ber 23, 1969

An Act

To lower interest rates and fight inflation; to help housing, small business,

and employment; to increase the availability of mortgage credit; and for

other purposes.

Be it enacted by the S en ate and H ouse of R epresentatives of th e U nited

S tates of A m erica in Congress assem bled,

TITLE I— AMENDMENTS TO EXISTING ACTS

Section 1. Section 7 of the Act of September 21, 1966 (Public Law 89-587;

80 Stat. 823) is amended to read:

“ Sec. 7. Effective March 22, 1971:

“ (1) So much of section 19(j) of the Federal Reserve Act (12 U.S.C. 

371(b)) as precedes the third sentence thereof is amended to read as it 

would without the amendment made by section 2(c) of this Act.

“ (2) The second and third sentences of section 18(g) of the Federal 

Deposit Insurance Act (12 U.S.C. 1828(g)) are amended to read as they 

would without the amendment made by section 3 of this Act.

“ (3) The last three sentences of section i**(g) of the Federal Deposit 

Insurance Act (12 U.S.C. 1828(g)) are repealeo.

“ (4) Section 5B of the Federal Home Loan Bank Act (12 U.S.C. 1425b) 

is repealed."

Sec. 2. (a) Section 18(g) of the Federal Deposit Insurance Act (12 U.S.C.

1828(g)) is amended by adding at the end thereof the following new senDigitized for FRASER 

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

tences: “ The authority conferred by this subsection shall also apply to noninsured banks in any State if (1) the total amount of time and savings deposits 

held in all such banks in the State, plus the total amount of deposits, shares, 

and withdrawable accounts held in all building and loan, savings and loan, and 

homestead associations (including cooperative banks) in the State which are 

not members of a Federal home loan bank, is more than 20 per centum of the 

total amount of such deposits, shares, and withdrawable accounts held in all 

banks, and building and loan, savings and loan, and homestead associations 

(including cooperative banks) in the State, and (2) there does not exist under 

the laws of such State a bank supervisory agency with authority comparable to 

that conferred by this subsection, including specifically the authority to regulate the rates of interest and dividends paid by such noninsured banks on time 

and savings deposits, or if such agency exists it has not issued regulations in 

the exercise of that authority. Such authority shall only be exercised by the 

Board of Directors with respect to such noninsured banks prior to July 31, 

1970, to lim it the rates of interest or dividends which such banks may pay on 

time and savings deposits to maximum rates not lower than 5y2 per centum 

per annum. Whenever it shall appear to the Board of Directors that any noninsured bank or any affiliate thereof is engaged or has engaged or is about to 

engage in any acts or practices which constitute or will constitute a violation 

of the provisions of this subsection or of any regulations thereunder, the 

Board of Directors may, in its discretion, bring an action in the United States 

district court for the judicial district in which the principal office of the noninsured bank or affiliate thereof is located to enjoin such acts or practices, to 

enforce compliance with this subsection or any regulations thereunder, or for a 

combination of the foregoing, and such courts shall have jurisdiction of such 

actions, and, upon a proper showing, an injunction, restraining order, or other 

appropriate order may be granted without bond."

(b) Section 5B of the Federal Home Loan Bank Act (12 U.S.C. 1425b) is 

amended to read as follows:

"Sec. 5B. (a) The Board may from time to time, after consulting with the 

Board of Governors of the Federal Reserve System and the Board of Directors 

of the Federal Deposit Insurance Corporation, prescribe rules governing the 

payment and advertisement of interest or dividends on deposits, shares, or 

withdrawable accounts, including limitations on the rates of interest or dividends on deposits, shares, or withdrawable accounts that may be paid by 

members, other than those the deposits of which are insured in accordance 

with the provisions of the Federal Deposit Insurance Act, by institutions which 

are insured institutions as defined in section 401(a) of the National Housing 

Act, and by nonmember building and loan, savings and loan, and homestead 

associations, and cooperative banks. The Board may prescribe different rate 

limitations for different classes of deposits, shares, or withdrawable accounts, 

for deposits, shares, or withdrawable accounts of different amounts or with different maturities or subject to different conditions regarding withdrawal or 

repayment, according to the nature or location of such members, institutions, 

or nonmembers or their depositors, shareholders or withdrawable account holders, or according to such other reasonable bases as the Board may deem 

desirable in the public interest. The authority conferred by this subsection 

shall apply to nonmember building and loan, savings and loan, and homestead 

associations, and cooperative banks in any State if (1) the total amount of 

deposits, shares, and withdrawable accounts held in all such nonmember associations and banks in the State, plus the total amount of time and savings

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FEDERAL BANKING LEGISLATION— 1969 141

deposits held in all banks in the State which are not insured by the Federal 

Deposit Insurance Corporation, is more than 20 per centum of the total 

amount of such deposits, shares, and withdrawable accounts held in all banks, 

and building and loan, savings and loan, and homestead associations (including cooperative banks) in the State, and (2) there does not exist under the 

laws of such State a bank supervisory agency with authority comparable to 

that conferred by the first two sentences of this subsection, including specifically the authority to regulate the rates of interest and dividends paid by any 

such association or bank on deposits, shares, or withdrawable accounts, or if 

such agency exists it has not issued regulations in the exercise of that authority. Such authority shall only be exercised by the Board with respect to such 

nonmember associations and banks prior to July 31, 1970, to limit the rates 

of interest or dividends which such associations or banks may pay on deposits, shares, or withdrawable accounts to maximum rates not lower than 5Y2

per centum per annum.

“ (b) In addition to any other penalty provided by this or any other law, any 

institution subject to this section which violates a rule promulgated pursuant 

to this section shall be subject to such civil penalties, which shall not exceed 

$100 for each violation, as may be prescribed by said Board by rule and such 

rule may provide with respect to any or all such violations that each day on 

which the violation continues shall constitute a separate violation. The Board 

may recover any such civil penalty for it own use, through action or otherwise, including recovery thereof in any other action or proceeding under this 

section. The Board may, at any time before collection of any such penalty, 

whether before or after the bringing of an action or other legal proceeding, the 

obtaining of any judgment or other recovery, or the issuance or levy of any 

execution or other legal process therefor, and with or without consideration, 

compromise, remit, or mitigate in whole or in part any such penalty or any 

such recovery.

“ (c) Whenever it shall appear to the Board that any nonmember institution 

is engaged or has engaged or is about to engage in any acts or practices 

which constitute or will constitute a violation of the provisions of this section 

or of any regulations thereunder, the Board may, in its discretion, bring an 

action in the United States district court for the judicial district in which the 

principal office of the institution is located to enjoin such acts or practices, to 

enforce compliance with this section or any regulations thereunder, or for a 

combination of the foregoing, and such courts shall have jurisdiction of such 

actions, and, upon a proper showing, an injunction, restraining order, or other 

appropriate order may be granted without bond.

“ (d) All expenses of the Board under this section shall be considered as 

nonadministrative expenses."

Sec. 3. Section 11 (i) of the Federal Home Loan Bank Act (12 U.S.C. 

1431 (i)) is amended—

(1) by striking out “ $1,000,000,000" and inserting in lieu thereof 

“ $4,000,000,000";

(2) by striking out the last sentence thereof and inserting in lieu 

thereof the following: “ Each purchase of obligations by the Secretary of 

the Treasury under this subsection shall be upon terms and conditions as 

shall be determined by the Secretary of the Treasury and shall bear such 

rate of interest as may be determined by the Secretary of the Treasury 

taking into consideration the current average market yield for the month

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142 FEDERAL DEPOSIT INSURANCE CORPORATION

preceding the month of such purchase on outstanding marketable obligations of the United States."; and

(3) by adding at the end thereof a new paragraph as follows:

“ The authority provided in this subsection shall be used by the Secretary of 

the Treasury, when alternative means cannot effectively be employed, to 

permit members of the Home Loan Bank System to continue to supply reasonable amounts of funds to the mortgage market whenever the ability to supply 

such funds is substantially impaired during periods of monetary stringency and 

rapidly rising interest rates and any funds so borrowed shall be repaid by the 

Home Loan Bank Board at the earliest practicable date."

Sec. 4. (a) Section 19(a) of the Federal Reserve Act (12 U.S.C. 461) is 

amended by inserting after the word “ interest," the following: “ to determine 

what types of obligations, whether issued directly by a member bank or indirectly by an affiliate of a member bank or by other means, shall be deemed a 

deposit,".

(b)(1) The fourth sentence of section 18(g) of the Federal Deposit Insurance Act (12 U.S.C. 1828(g)) is amended to read as follows: “ The Board of 

Directors is authorized for the purposes of this subsection to define the terms 

‘time deposits' and ‘savings deposits', to determine what shall be deemed a 

payment of interest, and to prescribe such regulations as it may deem necessary to effectuate the purposes of this subsection and to prevent evasions 

thereof."

(2) Section 18(g) of such Act is further amended by inserting after the fifth 

sentence the following: “ The provisions of this subsection and of regulations 

issued thereunder shall also apply, in the discretion of the Board of Directors, 

to obligations other than deposits that are undertaken by insured nonmember 

banks or their affiliates for the purpose of obtaining funds to be used in the 

banking business. As used in this subsection, the term ‘affiliate’ has the same 

meaning as when used in section 2(b) of the Banking Act of 1933, as 

amended (12 U.S.C. 221a(b)), except that the term ‘member bank’, as used 

in such section 2(b), shall be deemed to refer to an insured nonmember 

bank."

(c) The first sentence of section 18(g) of the Federal Deposit Insurance Act 

(12 U.S.C. 1828(g)) is amended by inserting “ or dividends" after “ interest’

Sec. 5. Section 19(b) of the Federal Reserve Act (12 U.S.C. 461) is 

amended by adding at the end thereof a new sentence as follows: “ The Board 

may, however, prescribe any reserve ratio, not more than 22 per centum, with 

respect to any indebtedness of a member bank that arises out of a transaction 

in the ordinary course of its banking business with respect to either funds 

received or credit extended by such bank to a bank organized under the law of 

a foreign country or a dependency or insular possession of the United States."

Sec. 6. (a) Effective as of the close of December 31, 1969, section 404 of 

the National Housing Act is amended

(1) by striking out “ plus any creditor obligations of such institution" in 

subsection (b)(1), and the amendment made by this subdivision (1) shall 

be applicable also to any then unexpired portion of any then current 

premium year under subsection (b)(1).

(2) by striking out “ and creditor obligations" in subsection (b)(2).

(3) by striking out “ and its creditor obligations" in subsection (c).

(4) by striking out “ and creditor obligations" each place it appears in 

subsection (g). The condition in the first sentence of that subsection shall

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FEDERAL BANKING LEGISLATION— 1969 143

be deemed to be met as of the close of December 31, 1969. The words 

"such year” in that sentence shall be deemed to include also the year 

beginning January 1, 1970.

(b) The Federal Savings and Loan Insurance Corporation is authorized by 

regulation or otherwise

(1) to make such provisions as it may deem advisable with respect to 

the order in which and the extent to which the components of a pro rata 

share of its secondary reserve shall be applied or be deemed to have 

been applied in the case of a reduction of such share through a use 

under the second sentence of section 404(e) of the National Housing Act 

or the first sentence of section 404(g), a transfer of part of such share 

under the third sentence of section 404(e), or otherwise.

(2) to take such action, including without limitation such adjustments 

and refunds and such deferrals of premium payments and other payments, as it may determine to be necessary or appropriate for or in 

connection with the implementation of this section or other legislation 

amending or supplementing said section 404.

Sec. 7. (a) The following provisions of the Federal Deposit Insurance Act 

are amended by changing "$15,000", each place it appears therein, to read 

"$ 20,000":

(1) The first sentence of section 3(m) (12 U.S.C. 1813(m)).

(2) The first sentence of section 7(i) (12 U.S.C. 1817(i)>.

(3) The last sentence of section 11(a) (12 U.S.C. 1821(a)).

(4) The fifth sentence of section 11 (i) (12 U.S.C. 1821 (i)).

(b) The amendments made by this section are not applicable to any claim 

arising out of the closing of a bank prior to the date of enactment of this Act.

Sec. 8. (a) The following provisions of title IV of the National Housing Act 

are amended by changing "$15,000", each place it appears therein, to read 

"$ 20,000":

(1) Section 401(b)(12 U.S.C. 1724(b)).

(2) Section 405(a) (12 U.S.C. 1728(a)).

(b) The amendments made by this section are not applicable to any claim 

arising out of a default, as defined in section 401(d) of the National Housing 

Act, where the appointment of a conservator, receiver, or other legal custodian 

as set forth in that section becomes effective prior to the date of enactment of 

this Act.

Sec. 9. (a) Section 708(b) of the Defense Production Act of 1950 (50 U.S.C. 

2158(b)) is amended by striking out everything after "United States", the 

first time it appears, and inserting a period in lieu thereof.

(b) Section 708(f) of that Act (50 U.S.C. 2158(f)) is repealed.

TITLE II— AUTHORITY FOR CREDIT CONTROL

Sec. 201. Short title

This title may be cited as the Credit Control Act.

Sec. 202. Definitions and rules of construction

(a) The definitions and rules of construction set forth in this section apply 

to the provisions of this title.

(b) The term "Board" refers to the Board of Governors of the Federal 

Reserve System.

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(c) The term “ organization” means a corporation, government or governmental subdivision or agency, trust, estate, partnership, cooperative, or association.

(d) The term “ person" means a natural person or an organization.

(e) The term “ credit" means the right granted by a creditor to a debtor to 

defer payment of debt or to incur debt and defer its payment.

(f) The term “ creditor" refers to any person who extends, or arranges for 

the extension of, credit, whether in connection with a loan, a sale of property 

or services, or otherwise.

(g) The term “ credit sale" refers to any sale with respect to which credit is 

extended or arranged by the seller. The term includes any rental-purchase contract and any contract or arrangement for the bailing or leasing of property 

when used as a financing device.

(h) The terms “ extension of credit" and “ credit transaction" include loans, 

credit sales, the supplying of funds through the underwriting, distribution, or 

acquisition of securities, the making or assisting in the making of a direct 

placement, or otherwise participating in the offering, distribution, or acquisition 

of securities.

(i) The term “ borrower" includes any person to whom credit is extended.

(j) The term “ loan" includes any type of credit, including credit extended in 

connection with a credit sale.

(k) The term “ State" refers to any State, the Commonwealth of Puerto 

Rico, the District of Columbia, and any territory or possession of the United 

States.

(I) Any reference to any requirement imposed under this title of any provision thereof includes reference to the regulations of the Board under this title 

or the provision thereof in question.

Sec. 203. Regulations

The Board shall prescribe regulations to carry out the purposes of this title. 

These regulations may contain such classifications, differentiations, or other 

provisions, and may provide for such adjustments and exceptions for any class 

of transactions, as in the judgment of the Board are necessary or proper to 

effectuate the purposes of this title, to prevent circumvention or evasion 

thereof, or to facilitate compliance therewith.

Sec. 204. Determination of interest charge

Except as otherwise provided by the Board, the amount of the interest 

charge in connection with any credit transaction shall be determined under the 

regulations of the Board as the sum of all charges payable directly or indirectly to the person by whom the credit is extended in consideration of the 

extension of credit.

Sec. 205. Authority for institution of credit controls

(a) Whenever the President determines that such action is necessary or 

appropriate for the purpose of preventing or controlling inflation generated by 

the extension of credit in an excessive volume, the President may authorize 

the Board to regulate and control any or all extensions of credit.

(b) The Board may, in administering this Act, utilize the services of the 

Federal Reserve banks and any other agencies, Federal or State, which are 

available and appropriate.

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Sec. 206. Extent of control

The Board, upon being authorized by the President under section 205 and 

for such period of time as he may determine, may by regulation

(1) require transactions or persons or classes of either to be registered 

or licensed.

(2) prescribe appropriate limitations, terms, and conditions for any 

such registration or license.

(3) provide for suspension of any such registration or license for violation of any provision thereof or of any regulation, rule, or order prescribed under this Act.

(4) prescribe appropriate requirements as to the keeping of records 

and as to the form, contents, or substantive provisions of contracts, liens, 

or any relevant documents.

(5) prohibit solicitations by creditors which would encourage evasion or 

avoidance of the requirements of any regulation, license, or registration 

under this Act.

(6) prescribe the maximum amount of credit which may be extended 

on, or in connection with, any loan, purchase, or other extension of 

credit.

(7) prescribe the maximum rate of interest, maximum maturity, minimum periodic payment, maximum period between payments, and any 

other specification or limitation of the terms and conditions of any extension of credit.

(8) prescribe the methods of determining purchase prices or market 

values or other bases for computing permissible extensions of credit or 

required downpayment.

(9) prescribe special or different terms, conditions, or exemptions with 

respect to new or used goods, minimum original cash payments, temporary credits which are merely incidental to cash purchases, payment or 

deposits usable to liquidate credits, and other adjustments or special situations.

(10) prescribe maximum ratios, applicable to any class of either creditors or borrowers or both, of loans of one or more types or of all types

(A) to deposits of one or more types or of all types.

(B) to assets of one or more types or of all types.

(11) prohibit or limit any extensions of credit under any circumstances 

the Board deems appropriate.

Sec. 207. Reports

Reports concerning the kinds, amounts, and characteristics of any extensions of credit subject to this title, or concerning circumstances related to 

such extensions of credit, shall be filed on such forms, under oath or otherwise, at such times and from time to time, and by such persons, as the Board 

may prescribe by regulation or order as necessary or appropriate for enabling 

the Board to perform its functions under this title. The Board may require any 

person to furnish, under oath or otherwise, complete information relative to 

any transaction within the scope of this title including the production of any 

books of account, contracts, letters, or other papers, in connection therewith in 

the custody or control of such person.

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Sec. 208. Injunctions

Whenever it appears to the Board that any person has engaged, is engaged, 

or is about to engage in any acts or practices constituting a violation of any 

regulation under this title, it may in its discretion bring an action, in the 

proper district court of the United States or the proper United States court of 

any territory or other place subject to the jurisdiction of the United States, to 

enjoin such acts or practices, and upon a proper showing a permanent or temporary injunction or restraining order shall be granted without bond. Upon 

application of the Board, any such court may also issue mandatory injunctions 

commanding any person to comply with any regulation of the Board under this 

title.

Sec. 209. Civil penalties

(a) For each willful violation of any regulation under this title, the Board 

may assess upon any person to which the regulation applies, and upon any 

partner, director, officer, or employee thereof who willfully participates in the 

violation, a civil penalty not exceeding $1,000.

(b) In the event of the failure of any person to pay any penalty assessed 

under this section, a civil action for the recovery thereof may, in the discretion 

of the Board, be brought in the name of the United States.

Sec. 210. Criminal penalty

Whoever willfully violates any regulation under this title shall be fined not 

more than $1,000 or imprisoned not more than one year, or both.

TITLE III— SMALL BUSINESS ADMINISTRATION ACTIVITY

Sec. 301. The Small Business Administration shall promptly increase the 

level of its financing functions utilizing the business loan and investment fund 

established under section 4(c)(1)(B) of the Small Business Act (15 U.S.C. 

633(c)(1)(B)) by $70,000,000 above the level prevailing at the time of enactment of this Act. The Small Business Administration shall submit to Congress 

a monthly report of its implementation of this section.

Approved December 23, 1969.

P ublic Law 9 1 -1 5 6 

9 1 s t C ongress, H .R . 7491 

D ecem ber 24, 1969

An Act

To clarify the liability of national banks for certain taxes.

Be it enacted by the Senate and House of Representatives of the United

States of America in Congress assembled,

§ 1. Temporary amendment of section 5219, Revised Statutes

(a) Section 5219 of the Revised Statutes (12 U.S.C. 548) is amended by 

adding at the end thereof the following:

“ 5. (a) In addition to the other methods of taxation authorized by the foregoing provisions of this section and subject to the limitations and restrictions 

specifically set forth in such provisions, a State or political subdivision thereof 

may impose any tax which is imposed generally on a nondiscriminatory basis

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FEDERAL BANKING LEGISLATION— 1969 147

throughout the jurisdiction of such State or political subdivision (other than a 

tax on intangible personal property) on a national bank having its principal 

office within such State in the same manner and to the same extent as such 

tax is imposed on a bank organized and existing under the laws of such State.

“ (b) Except as otherwise herein provided, the legislature of each State may 

impose, and may authorize any political subdivision thereof to impose, the following taxes on a national bank not having its principal office located within 

the jurisdiction of such State, if such taxes are imposed generally throughout 

such jurisdiction on a nondiscriminatory basis:

“ (1) Sales taxes and use taxes complementary thereto upon purchases, 

sales, and use within such jurisdiction.

"(2) Taxes on real property or on the occupancy of real property 

located within such jurisdiction.

“ (3) Taxes (including documentary stamp taxes) on the execution, 

delivery, or recordation of documents within such jurisdiction.

“ (4) Taxes on tangible personal property (not including cash or currency) located within such jurisdiction.

“ (5) License, registration, transfer, excise, or other fees or taxes 

imposed on the ownership, use, or transfer of tangible personal property 

located within such jurisdiction.

“ (c) No sales tax or use tax complementary thereto shall be imposed pursuant to this paragraph 5 upon purchases, sales, and use within the taxing 

jurisdiction of tangible personal property which is the subject matter of a written contract of purchase entered into by a national bank prior to September 1, 

1969.

“ (d) As used in this paragraph 5, the term 'State' means any of the several 

States of the United States, the District of Columbia, the Commonwealth of 

Puerto Rico, the Virgin Islands, and Guam."

(b) The amendment made by subsection (a) of this section shall be effective from the date of enactment of this Act until the effective date of the 

amendment made by section 2(a) of this Act.

§ 2. Permanent amendment of section 5219, Revised Statutes

(a) Section 5219 of the Revised Statutes (12 U.S.C. 548) is amended to 

read:

“ Sec. 5219. For the purposes of any tax law enacted under authority of the 

United States or any State, a national bank shall be treated as a bank organized and existing under the laws of the State or other jurisdiction within 

which its principal office is located."

(b) The amendment made by subsection (a) becomes effective on January 1, 

1972.

§ 3. Saving provision

(a) Except as provided in subsection (b) of this section, prior to January 1, 

1972, no tax may be imposed on any class of banks by or under authority of 

any State legislation in effect prior to the enactment of this Act unless

(1) the tax was imposed on that class of banks prior to the enactment 

of this Act, or

(2) the imposition of the tax is authorized by affirmative action of the 

State legislature after the enactment of this Act.

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148 FEDERAL DEPOSIT INSURANCE CORPORATION

(b) The prohibiton of subsection (a) of this section does not apply to

(1) any sales tax or use tax complementary thereto,

(2) any tax (including a documentary stamp tax) on the execution, 

delivery, or recordation of documents, or

(3) any tax on tangible personal property (not including cash or currency), or for any license, registration, transfer, excise or other fee or tax 

imposed on the ownership, use or transfer of tangible personal property,

imposed by a State which does not impose a tax, or an increased rate of tax, 

in lieu thereof.

§ 4. Study by Board of Governors of the Federal Reserve System

(a) The Board of Governors of the Federal Reserve System (hereinafter 

referred to as the “ Board") shall make a study to determine the probable 

impact on the banking systems and other economic effects of the changes in 

existing law to be made by section 2 of this Act governing income taxes, 

intangible property taxes, so-called doing business taxes, and any other similar 

taxes which are or may be imposed on banks. In conducting the study the 

Board shall consult with the Secretary of the Treasury and appropriate State 

banking and taxing authorities.

(b) The Board shall make a report of the results of its study to the Congress not later than December 31, 1970. The report shall include the Board's 

recommendations as to what additional Federal legislation, if any, may be 

needed to reconcile the promotion of the economic efficiency of the banking 

systems of the Nation with the achievement of effectiveness and local autonomy in meeting the fiscal needs of the States and their political subdivisions.

Approved December 24, 1969.

P u b lic Law 9 1 -1 7 2 

9 1 s t C ongress, H .R . 1 3 2 7 0 

D e cem ber 30, 1969

An Act

To reform the income tax laws.

Be it enacted by the Senate and House of Representatives of the United

States of America in Congress assembled,

SECTION 1. SHORT TITLE, ETC.

(a) Short Title.— This Act may be cited as the “ Tax Reform Act of 1969".

❖ ❖ ❖

TITLE III— MINIMUM TAX; ADJUSTMENTS 

PRIMARILY AFFECTING INDIVIDUALS

SUBTITLE A— MINIMUM TAX

SEC. 301. MINIMUM TAX FOR TAX PREFERENCES.

(a) In General.— Subchapter A of chapter 1 (relating to determination of tax 

liability) is amended by adding at the end thereof the following new part:

“ PART VI— MINIMUM TAX FOR TAX PREFERENCES

"S ec. 56. Im p o sitio n o f tax.

“ Sec. 57. Item s o f ta x preference.

“ Sec. 58. Rules fo r a p p lica tio n o f th is part.

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"SEC. 56. IMPOSITION OF TAX.

“ (a) In General.— In addition to the other taxes imposed by this chapter, 

there is hereby imposed for each taxable year, with respect to the income of 

every person, a tax equal to 10 percent of the amount (if any) by which—

“ (1) the sum of the items of tax preference in excess of $30,000, is 

greater than

"(2) the taxes imposed by this chapter for the taxable year (computed 

without regard to this part and without regard to the taxes imposed by 

sections 531 and 541) reduced by the sum of the credits allowable under— 

"(A) section 33 (relating to foreign tax credit),

"(B) section 37 (relating to retirement income), and 

"(C) section 38 (relating to investment credit).

"(b) Deferral of Tax Liability in Case of Certain Net Operating Losses.—

"(1) In General.— If for any taxable year a person—

"(A) has a net operating loss any portion of which (under section 

172) remains as a net operating loss carryover to a succeeding 

taxable year, and

"(B) has items of tax preference in excess of $30,000, 

then an amount equal to the lesser of the tax imposed by subsection (a) 

or 10 percent of the amount of the net operating loss carryover described 

in subparagraph (A) shall be treated as tax liability not imposed for the 

taxable year, but as imposed for the succeeding taxable year or years 

pursuant to paragraph (2).

"(2) Year.of liability.— In any taxable year in which any portion of the 

net operating loss carryover attributable to the excess described in paragraph (1)(B) reduces taxable income, the amount of tax liability described 

in paragraph (1) shall be treated as tax liability imposed in such taxable 

year in an amount equal to 10 percent of such reduction.

"(3) Priority of application.— For purposes of paragraph (2), if any portion of the net operating loss carryover described in paragraph (1)(A) is 

not attributable to the excess described in paragraph (1)(B), such portion 

shall be considered as being applied in reducing taxable income before 

such other portion.

"SEC. 57. ITEMS OF TAX PREFERENCE.

"(a) In General.— For purposes of this part, the items of tax preference 

are—

"(1) Excess investment interest.— The amount of the excess investment interest for the taxable year (as determined under subsection (b)).

"(2) Accelerated depreciation on real property.— With respect to each 

section 1250 property (as defined in section 1250 (c)), the amount by 

which the deduction allowable for the taxable year for exhaustion, wear 

and tear, obsolescence, or amortization exceeds the depreciation deduction which would have been allowable for the taxable year had the taxpayer depreciated the property under the straight line method for each 

taxable year of its useful life (determined without regard to section 

167(k)) for which the taxpayer has held the property.

"(3) Accelerated depreciation on personal property subject to a net 

lease.— With respect to each item of section 1245 property (as defined in 

section 1245(a)(3)) which is the subject of a net lease, the amount by 

which the deduction allowable for the taxable year for exhaustion, wear 

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tion which would have been allowable for the taxable year had the taxpayer depreciated the property under the straight line method for each 

taxable year of its useful life for which the taxpayer has held the property.

“ (4) Amortization of certified pollution control facilities.— With respect 

to each certified pollution control facility for which an election is in effect 

under section 169, the amount by which the deduction allowable for the 

taxable year under such section exceeds the depreciation deduction which 

would otherwise be allowable under section 167.

"(5) Amortization of railroad rolling stock.— With respect to each unit 

of railroad rolling stock for which an election is in effect under section 

184, the amount by which the deduction allowable for the taxable year 

under such section exceeds the depreciation deduction which would otherwise be allowable under section 167.

"(6) Stock options.— With respect to the transfer of a share of stock 

pursuant to the exercise of a qualified stock option (as defined in section 

422(b)) or a restricted stock option (as defined in section 424(b)), the 

amount by which the fair market value of the share at the time of exercise exceeds the option price.

"(7) Reserves for losses on bad debts of financial institutions.— In the 

case of a financial institution to which section 585 or 593 applies, the 

amount by which the deduction allowable for the taxable year for a reasonable addition to a reserve for bad debts exceeds the amount that 

would have been allowable had the institution maintained its bad debt 

reserve for all taxable years on the basis of actual experience.

"(8) Depletion.— With respect to each property (as defined in section 

614), the excess of the deduction for depletion allowable under section 

611 for the taxable year over the adjusted basis of the property at the 

end of the taxable year (determined without regard to the depletion 

deduction for the taxable year).

“ (9) Capital gains.—

“ (A) Individuals.— In the case of a taxpayer other than a corporation, an amount equal to one-half of the amount by which the net 

long-term capital gain exceeds the net short-term capital loss for the 

taxable year.

"(B) Corporations.— In the case of a corporation, if the net longterm capital gain exceeds the net short-term capital loss for the taxable year, an amount equal to the product obtained by multiplying 

such excess by a fraction the numerator of which is the sum of the 

normal tax rate and the surtax rate under section 11, minus the 

alternative tax rate under section 1201(a), for the taxable year, and 

the denominator of which is the sum of the normal tax rate and the 

surtax rate under section 11 for the taxable year. In the case of a 

corporation to which section 1201(a) does not apply, the amount 

under this subparagraph shall be determined under regulations prescribed by the Secretary or his delegate in a manner consistent with 

the preceding sentence.

Paragraph (1) shall apply only to taxable years beginning before January 1, 

1972. Paragraphs (1) and (3) shall not apply to a corporation other than an 

electing small business corporation (as defined in section 1371(b)) and a personal holding company (as defined in section 542).

"(b) Excess Investment Interest.—

"(1) In general.— For purposes of paragraph (1) of subsection (a), the 

excess investment interest for any taxable year is the amount by which

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the investment interest expense for the taxable year exceeds the net 

investment income for the taxable year.

“ (2) Definitions.— For purposes of this subsection—

“ (A) Net investment income.— The term ‘net investment income’ 

means the excess of investment income over investment expenses.

“ (B) Investment income.— The term ‘investment income' means— 

“ (i) the gross income from interest, dividends, rents, and 

royalties,

“ (ii) the net short-term capital gain attributable to the disposition of property held for investment, and

“ (iii) amounts treated under sections 1245 and 1250 as gain 

from the sale or exchange of property which is neither a capital 

asset nor property described in section 1231, 

but only to the extent such income, gain, and amounts are not 

derived from the conduct of a trade or business.

“ (C) Investment expenses.— The term ‘investment expenses’ 

means the deductions allowable under sections 164(a) (1) or (2), 

166, 167, 171, 212, 243, 244, 245, or 611 directly connected with 

the production of investment income. For purposes of this subparagraph, the deduction allowable under section 167 with respect to any 

property may be treated as the amount which would have been 

allowable had the taxpayer depreciated the property under the 

straight line method for each taxable year of its useful life for which 

the taxpayer has held the property, and the deduction allowable 

under section 611 with respect to any property may be treated as 

the amount which would have been allowable had the taxpayer determined the deduction under section 611 without regard to section 

613 for each taxable year for which the taxpayer has held the property.

“ (D) Investment interest expense.— The term ‘investment interest 

expense’ means interest paid or accrued on indebtedness incurred or 

continued to purchase or carry property held for investment. For purposes of the preceding sentence, interest paid or accrued on indebtedness incurred or continued in the construction of property to be 

used in a trade or business shall not be treated as an investment 

interest expense.

“ (3) Property subject to net lease.— For purposes of this subsection, 

property which is subject to a net lease entered into after October 9,

1969, shall be treated as property held for investment, and not as property used in a trade or business.

“ (c) Net Leases.— For purposes of this section, property shall be considered 

to be subject to a net lease for a taxable year if—

“ (1) for such taxable year the sum of the deductions with respect to 

such property which are allowable solely by reason of section 162 is less 

than 15 percent of the rental income produced by such property, or

“ (2) the lessor is either guaranteed a specified return or is guaranteed 

in whole or in part against loss of income.

“ SEC. 58. RULES FOR APPLICATION OF THIS PART.

“ (a) Husband and Wife.— In the case of a husband or wife who files a separate return for the taxable year, the $30,000 amount specified in section 56 

shall be $15,000.

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"(b) Members of Controlled Groups.— In the case of a controlled group of 

corporations (as defined in section 1563(a)), the $30,000 amount specified in 

section 56 shall be divided equally among the component members of such 

group unless all component members consent (at such time and in such 

manner as the Secretary or his delegate prescribes by regulations) to an 

apportionment plan providing for an unequal allocation of such amount.

"(c) Estates and Trusts.— In the case of an estate or trust—

"(1) the sum of the items of tax preference for any taxable year of the 

estate or trust shall be apportioned between the estate or trust and the 

beneficiaries on the basis of the income of the estate or trust allocable to 

each, and

"(2) the $30,000 amount specified in section 56 applicable to such 

estate or trust shall be reduced to an amount which bears the same ratio 

to $30,000 as the portion of the sum of the items of tax preference allocated to the estate or trust under paragraph (1) bears to such sum.

"(d) Electing Small Business Corporations and Their Shareholders.—

"(1) In general.— Except as provided in paragraph (2), the items of 

tax preference of an electing small business corporation (as defined in 

section 1371(b)) for each taxable year of the corporation shall be treated 

as items of tax preference of the shareholders of such corporation, and, 

except as provided in paragraph (2), shall not be treated as items of tax 

preference of such corporation. The sum of the items so treated shall be 

apportioned pro rata among such shareholders in a manner consistent 

with section 1374(c)(1). For purposes of this paragraph, this part shall 

be treated as applying to such corporation.

"(2) Certain capital gains.— If for a taxable year of an electing small 

business corporation a tax is imposed on the income of such corporation 

under section 1378, such corporation shall, notwithstanding the provisions 

of section 1371(b)(1), be subject to the tax imposed by section 56, but 

computed only with reference to the item of tax preference set forth in 

section 57(a)(9)(B) to the extent attributable to gains subject to the tax 

imposed by section 1378.

"(e) Participants in a Common Trusc Fund.— The items of tax preference of 

a common trust fund (as defined in section 584(a)) for each taxable year of 

the fund shall be treated as items of tax preference of the participants of such 

fund and shall be apportioned pro rata among such participants. For purposes 

of this subsection, this part shall be treated as applying to such fund.

"(f) Regulated Investment Companies, Etc.— In the case of a regulated 

investment company to which part I of subchapter M applies or a real estate 

investment trust to which part II of subchapter M applies—

"(1) the item of tax preference set forth in section 57(a)(9) shall not 

be treated as an item of tax preference of such company or such trust 

for each taxable year to the extent that such item is attributable to 

amounts taken into account as income by the shareholders of such company under section 852(b)(3), or by the shareholders or holders of beneficial interests of such trust under section 857(b)(3), and

"(2) the items of tax preference of such company or such trust for 

each taxable year (other than the item of tax preference set forth in section 57(a)(9) and, in the case of a real estate investment trust, the item 

of tax preference set forth in section 57(a)(2)) shall be treated as items 

of tax preference of the shareholders of such company, or the shareholders or holders of beneficial interests of such trust (and not as items of

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tax preference of such company or such trust), in the same proportion 

that the dividends (other than capital gain dividends) paid to each such 

shareholder, or holder of beneficial interest, bears to the taxable income 

of such company or such trust determined without regard to the deduction for dividends paid.

"(g) Tax Preferences Attributable to Foreign Sources.—

"(1) In general.— For purposes of section 56, the items of tax preference set forth in section 57(a) (other than in paragraphs (6) and (9) of 

such section) which are attributable to sources within any foreign country 

or posession of the United States shall be taken into account only to the 

extent that such items reduce the tax imposed by this chapter (other 

than the tax imposed by section 56) on income derived from sources 

within the United States. For purposes of the preceding sentence, items 

of tax preference shall be treated as reducing the tax imposed by this 

chapter before items which are not items of tax preference.

"(2) Capital gains and stock options.— For purposes of section 56, the 

items of tax preference set forth in paragraphs (6) and (9) of section 

57(a) which are attributable to sources within any foreign country or 

possession of the United States shall not be taken into account if, under 

the tax laws of such country or possession—

"(A) in the case of the item set forth in paragraph (6) of section 

57(a), preferential treatment is not accorded transfers of shares of 

stock pursuant to stock options described in such paragraph, and 

“ (B) in the case of the item set forth in paragraph (9) of section 

57(a), preferential treatment is not accorded gain from the sale or 

exchange of capital assets (or property treated as capital assets)."

(b) Technical and Conforming Amendments.—

(1) The table of parts for subchapter A of chapter 1 is amended by 

adding at the end thereof the following new item:

"P a rt VI. M inim u m ta x fo r tax preferences."

(2) Section 5(a) (relating to cross references to other rates of tax on 

individuals, etc.) is amended by adding at the end thereof the following 

new paragraph:

“ (5) For minimum tax for tax preferences, see section 56."

(3) Section 12 (relating to cross references relating to tax on corporations) is amended by adding at the end thereof the following new paragraph:

“ (8) For minimum tax for tax preferences, see section 56."

(4) Section 46(a)(3) (relating to liability for tax for determining 

amount of investment credit) is amended by inserting “ section 56 (relating to minimum tax for tax preferences)," before "section 531".

(5) Section 51(b)(1) (relating to adjusted tax for purposes of tax surcharge) is amended by inserting "section 56," after "this section,".

(6) Section 443 (relating to returns for a period of less than 12 

months) is amended by redesignating subsection (d) as subsection (e) 

and inserting after subsection (c) the following new subsection:

"(d) Adjustment in Exclusion for Computing Minimum Tax for Tax Preferences.— If a return is made for a short period by reason of subsection (a), 

then the $30,000 amount specified in section 56 (relating to minimum tax for 

tax preferences), modified as provided by section 58, shall be reduced to the 

amount which bears the same ratio to such specified amount as the number of 

days in the short period bears to 365."

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(7) Section 453(c)(3) (relating to rule for change from accrual to 

installment basis) is amended by inserting, “ other than by section 5 6 /' 

after “ prior revenue laws)".

(8) Section 511 (relating to tax on unrelated business income of charitable, etc., organizations) is amended by adding after subsection (c) (as 

added by section 121(a)(3) of this Act) the following new subsection:

“ (d) Tax Preferences.— The tax imposed by section 56 shall apply to an 

organization subject to tax under this section with respect to items of tax preference which enter into the computation of unrelated business taxable 

income."

(9) The last sentence of section 901(a) (relating to allowance of credit 

for taxes of foreign countries and of possessions of the United States) is 

amended by inserting “ against the tax imposed by section 56 (relating to 

minimum tax for tax preferences)," after “ not be allowed".

(10) Section 1373(c) (relating to definition of undistributed taxable 

income) is amended by striking out “ tax imposed by section 1378(a)" 

and inserting in lieu thereof “ taxes imposed by sections 56 and 1378(a)".

(11) Section 1375(a)(3) (relating to reduction for taxes imposed) is 

amended—

(A) by striking out “ tax imposed by section 1378" in the heading 

of such section and inserting in lieu thereof “ taxes imposed"; and

(B) by striking out “ tax imposed by section 1378(a) on the 

income of" in the text of such section and inserting in lieu thereof 

“ taxes imposed by sections 56 and 1378(a) on".

(12) Section 6015(c) (relating to definition of estimated tax) is 

amended by inserting after “ taxable year" in paragraph (1) “ (other than 

the tax imposed by section 56)".

(13) Section 6654(f) (relating to definition of tax) is amended by 

inserting after “ chapter 1" in paragraph (1) “ (other than by section 56)".

(c) Effective Date.— The amendments made by this section shall apply to 

taxable years ending after December 31, 1969. In the case of a taxable year 

beginning in 1969 and ending in 1970, the tax imposed by section 56 of the 

Internal Revenue Code of 1954 (as added by subsection (a)) shall be an 

amount equal to the tax imposed by such section (determined without regard 

to this sentence) multiplied by a fraction—

(1) the numerator of which is the number of days in the taxable year 

occurring after December 31, 1969, and

(2) the denominator of which is the number of days in the entire taxable year.

SUBTITLE D— ACCUMULATION TRUSTS, MULTIPLE TRUSTS, ETC.

SEC. 331. TREATMENT OF EXCESS DISTRIBUTIONS BY TRUSTS.

(a) In General.— Subpart D of part I of subchapter J of chapter 1 is 

amended to read as follows:

“ SUBPART D— TREATMENT OF EXCESS DISTRIBUTIONS 

BY TRUSTS

“ Sec. 665. D efin itio ns applicable to subpart D.

“ Sec. 666. A ccu m ula tio n d is trib u tio n allocated to preceding years.

“ Sec. 667. D enial of refund to tru s ts ; a uth oriza tion o f cre d it to beneficiaries.

“ Sec. 668. T reatm ent o f am ounts deem ed d istrib u te d in preceding years.

“ Sec. 669. T reatm ent o f capital gain deemed d istrib u te d in preceding years.

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“ SEC. 665. DEFINITIONS APPLICABLE TO SUBPART D.

“ (a) Undistributed Net Income.— For purposes of this subpart, the term 

'undistributed net income' for any taxable year means the amount by which 

the distributable net income of the trust for such taxable year exceeds the 

sum of—

“ (1) the amounts for such taxable year specified in paragraphs (1) and 

(2) of section 661(a), and

“ (2) the amount of taxes imposed on the trust attributable to such 

distributable net income.

“ (b) Accumulation Distribution.— For purposes of this subpart, the term 

‘accumulation distribution' means, for any taxable year of the trust, the 

amount by which—

“ (1) the amounts specified in paragraph (2) of section 661(a) for such 

taxable year, exceed

“ (2) distributable net income for such year reduced (but not below 

zero) by the amounts specified in paragraph (1) of section 661(a).

“ (c) Special Rule Applicable to Distributions by Certain Foreign Trusts.— For 

purposes of this subpart, any amount paid to a United States person which is 

from a payor who is not a United States person and which is derived directly 

or indirectly from a foreign trust created by a United States person shall be 

deemed in the year of payment to have been directly paid by the foreign trust.

“ (d) Taxes Imposed on the Trust.— For purposes of this subpart, the term 

'taxes imposed on the trust’ means the amount of the taxes which are 

imposed for any taxable year of the trust under this chapter (without regard to 

this subpart) and which, under regulations prescribed by the Secretary or his 

delegate, are properly allocable to the undistributed portions of distributable 

net income and gains in excess of losses from sales or exchanges of capital 

assets. The amount determined in the preceding sentence shall be reduced by 

any amount of such taxes deemed distributed under section 666 (b) and (c) 

or 669 (d) and (e) to any beneficiary.

“ (e) Preceding Taxable Year.— For purposes of this subpart—

“ (1) in the case of a trust (other than a foreign trust created by a 

United States person), the term 'preceding taxable year' does not include 

any taxable year of the trust—

“ (A) which precedes by more than 5 years the taxable year of the 

trust in which an accumulation distribution is made, if it is made in 

a taxable year beginning before January 1, 1974,

“ (B) which begins before January 1, 1969, in the case of an 

accumulation distribution made during a taxable year beginning after 

December 31, 1973, or

“ (C) which begins before January 1, 1969, in the case of a capital gain distribution made during a taxable year beginning after 

December 31, 1968; and 

“ (2) in the case of a foreign trust created by a United States person, 

such term does not include any taxable year of the trust to which this 

part does not apply.

In the case of a preceding taxable year with respect to which a trust qualifies 

(without regard to this subpart) under the provisions of subpart B, for purposes of the application of this subpart to such trust for such taxable year, 

such trust shall, in accordance with regulations prescribed by the Secretary or 

his delegate, be treated as a trust to which subpart C applies.

“ (f) Undistributed Capital Gain.— For purposes of this subpart, the term 

‘undistributed capital gain’ means, for any taxable year of the trust beginning 

after December 31, 1968, the amount by which—

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“ (1) gains in excess of losses from the sale or exchange of capital 

assets, to the extent that such gains are allocated to corpus and are not

(A) paid, credited, or required to be distributed to any beneficiary during 

such taxable year, or (B) paid, permanently set aside, or used for the 

purposes specified in section 642(c), exceed

"(2) the amount of taxes imposed on the trust attributable to such 

gains.

For purposes of paragraph (1), the deduction under section 1202 (relating to 

deduction for excess of capital gains over capital losses) shall not be taken 

into account.

"(g) Capital Gain Distribution.— For purposes of this subpart, the term 'capital gain distribution’ for any taxable year of the trust means, to the extent of 

undistributed capital gain for such taxable year, that portion of—

“ (1) the excess of the amounts specified in paragraph (2) of section 

661(a) for such taxable year over distributable net income for such year 

reduced (but not below zero) by the amounts specified in paragraph (1) 

of section 661(a), over

"(2) the undistributed net income of the trust for all preceding taxable 

years.

"SEC. 666. ACCUMULATION DISTRIBUTION ALLOCATED TO PRECEDING 

YEARS.

"(a) Amount Allocated.— In the case of a trust which is subject to subpart

C, the amount of the accumulation distribution of such trust for a taxable year 

shall be deemed to be an amount within the meaning of paragraph (2) of section 661(a) distributed on the last day of each of the preceding taxable years, 

commencing with the earliest of such years, to the extent that such amount 

exceeds the total of any undistributed net income for all earlier preceding taxable years. The amount deemed to be distributed in any such preceding taxable year under the preceding sentence shall not exceed the undistributed net 

income for such preceding taxable year. For purposes of this subsection, 

undistributed net income for each of such preceding taxable years shall be 

computed without regard to such accumulation distribution and without regard 

to any accumulation distribution determined for any succeeding taxable year.

"(b) Total Taxes Deemed Distributed.— If any portion of an accumulation 

distribution for any taxable year is deemed under subsection (a) to be an 

amount within the meaning of paragraph (2) of section 661(a) distributed on 

the last day of any preceding taxable year, and such portion of such distribution is not less than the undistributed net income for such preceding taxable 

year, the trust shall be deemed to have distributed on the last day of such 

preceding taxable year an additional amount within the meaning of paragraph

(2) of section 661(a). Such additional amount shall be equal to the taxes 

imposed on the trust for such preceding taxable year attributable to the undistributed net income. For purposes of this subsection, the undistributed net 

income and the taxes imposed on the trust for such preceding taxable year 

attributable to such undistributed net income shall be computed without 

regard to such accumulation distribution and without regard to any accumulation distribution determined for any succeeding taxable year.

"(c) Pro Rata Portion of Taxes Deemed Distributed.— If any portion of an 

accumulation distribution for any taxable year is deemed under subsection (a) 

to be an amount within the meaning of paragraph (2) of section 661(a) distributed on the last day of any preceding taxable year and such portion of the

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accumulation distribution is less than the undistributed net income for such 

preceding taxable year, the trust shall be deemed to have distributed on the 

last day of such preceding taxable year an additional amount within the meaning of paragraph (2) of section 661(a). Such additional amount shall be equal 

to the taxes imposed on the trust for such taxable year attributable to the 

undistributed net income multiplied by the ratio of the portion of the accumulation distribution to the undistributed net income of the trust for such year. 

For purposes of this subsection, the undistributed net income and the taxes 

imposed on the trust for such preceding taxable year attributable to such 

undistributed net income shall be computed without regard to the accumulation distribution and without regard to any accumulation distribution determined for any succeeding taxable year.

"(d) Rule When Information Is Not Available.— If adequate records are not 

available to determine the proper application of this subpart to an amount distributed by a trust, such amount shall be deemed to be an accumulation distribution consisting of undistributed net income earned during the earliest preceding taxable year of the trust in which it can be established that the trust 

was in existence.

"SEC. 667. DENIAL OF REFUND TO TRUSTS; AUTHORIZATION OF CREDIT 

TO BENEFICIARIES.

"(a) Denial of Refund to Trusts.— No refund or credit shall be allowed to a 

trust for any preceding taxable year by reason of a distribution deemed to 

have been made by such trust in such year under section 666 or 669.

"(b) Authorization of Credit to Beneficiary.— There shall be allowed as a 

credit (without interest) against the tax imposed by this subtitle on the beneficiary an amount equal to the amount of the taxes deemed distributed to such 

beneficiary by the trust under sections 666 (b) and (c) and 669 (d) and (e) 

during preceding taxable years of the trust on the last day of which the beneficiary was in being, reduced by the amount of the taxes deemed distributed to 

such beneficiary for such preceding taxable years to the extent that such taxe^ 

are taken into account under sections 668(b)(1) and 669(b) in determining the 

amount of the tax imposed by section 668.

"SEC. 668. TREATMENT OF AMOUNTS DEEMED DISTRIBUTED IN PRECEDING YEARS.

"(a) General Rule.— The total of the amounts which are treated under sections 666 and 669 as having been distributed by the trust in a preceding taxable year shall be included in the income of a beneficiary of the trust when 

paid, credited, or required to be distributed to the extent that such total would 

have been included in the income of such beneficiary under section 662(a) (2) 

and (b) if such total had been paid to such beneficiary on the last day of 

such preceding taxable year. The tax imposed by this subtitle on a beneficiary 

for a taxable year in which any such amount is included in his income shall be 

determined only as provided in this section and shall consist of the sum of— 

"(1) a partial tax computed on the taxable income reduced by an 

amount equal to the total of such amounts, at the rate and in the manner 

as if this section had not been enacted,

"(2) a partial tax determined as provided in subsection (b) of this section, and

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"(3) in the case of a beneficiary of a trust which is not required to 

distribute all of its income currently, a partial tax determined as provided 

in section 669.

For purposes of this subpart, a trust shall not be considered to be a trust 

which is not required to distribute all of its income currently for any taxable 

year prior to the first taxable year in which income is accumulated.

“ (b) Tax on Distribution.—

“ (1) Alternative Methods.— Except as provided in paragraph (2), the 

partial tax imposed by subsection (a)(2) shall be the lesser of—

“ (A) the aggregate of the taxes attributable to the amounts 

deemed distributed under section 666 had they been included in the 

gross income of the beneficiary on the last day of each respective 

preceding taxable year, or

“ (B) the tax determined by multiplying, by the number of preceding taxable years of the trust, on the last day of which an amount is 

deemed under section 666(a) to have been distributed, the average 

of the increase in tax attributable to recomputing the beneficiary’s 

gross income for each of the beneficiary’s 3 taxable years immediately preceding the year of the accumulation distribution by adding 

to the income of each of such years an amount determined by dividing the amount deemed distributed under section 666 and required 

to be included in income under subsection (a) by such number of 

preceding taxable years of the trust, 

less an amount equal to the amount of taxes deemed distributed to the 

beneficiary under sections 666 (b) and (c).

“ (2) Special Rules.—

“ (A) If a beneficiary was not in existence on the last day of a preceding taxable year of the trust with respect to which a distribution 

is deemed made under section 666(a), the partial tax under either 

paragraph (1)(A) or (1)(B) shall be computed as if the beneficiary 

were in existence on the last day of such year on the basis that the 

beneficiary had no gross income (other than amounts deemed distributed to him under sections 666 and 669 by the same or other 

trusts) and no deductions for such year.

“ (B) The partial tax shall not be computed under the provisions 

of subparagraph (B) of paragraph (1) if, in the same prior taxable 

year of the beneficiary in which any part of the accumulation distribution is deemed under section 666(a) to have been distributed to 

such beneficiary, some part of prior accumulation distributions by 

each of two or more other trusts is deemed under section 666(a) to 

have been distributed to such beneficiary.

“ (C) If the partial tax is computed under paragraph (1)(B), and 

the amount of the undistributed net income deemed distributed in 

any preceding taxable year of the trust is less than 25 percent of the 

amount of the accumulation distribution divided by the number of 

preceding taxable years to which the accumulation distribution is 

allocated under section 666(a), the number of preceding taxable 

years of the trust with respect to which an amount is deemed distributed to a beneficiary under section 666(a) shall be determined 

without regard to such year.

“ (3) Effect of other accumulation distributions and capital gain distributions.— In computing the partial tax under paragraph (1) for any beneficiary, the income of such beneficiary for each of his prior taxable years—

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“ (A) shall include amounts previously deemed distributed to such 

beneficiary in such year under section 666 or 669 as a result of 

prior accumulation distributions or capital gain distributions (whether 

from the same or another trust), and

“ (B) shall not include amounts deemed distributed to such beneficiary in such year under section 669 as a result of a capital gain 

distribution from the same trust in the current year.

“ (4) Multiple distributions in the same taxable year.— In the case of 

accumulation distributions made from more than one trust which are 

includible in the income of a beneficiary in the same taxable year, the 

distributions shall be deemed to have been made consecutively in whichever order the beneficiary shall determine.

“ (5) Information requirements with respect to beneficiary.—

“ (A) Except as provided in subparagraph (B), the partial tax shall 

not be computed under the provisions of paragraph (1)(A) unless 

the beneficiary supplies such information with respect to his income, 

for each taxable year with which or in which ends a taxable year of 

the trust on the last day of which an amount is deemed distributed 

under section 666(a), as the Secretary or his delegate prescribes by 

regulations.

“ (B) If by reason of paragraph (2)(B) the provisions of paragraph (1)(B) do not apply, the determination of the amount of the 

beneficiary’s income for a taxable year for which the beneficiary has 

not supplied the information required under subparagraph (A) shall 

be made by the Secretary or his delegate on the basis of information 

available to him.

“ SEC. 669. TREATMENT OF CAPITAL GAIN DEEMED DISTRIBUTED IN 

PRECEDING YEARS.

“ (a) Amount Allocated.— In the case of a trust which is not required to distribute all of its income currently, the amount of a capital gain distribution of 

such trust for a taxable year shall be deemed to be an amount properly paid, 

credited, or required to be distributed on the last day of each of the preceding 

taxable years, commencing with the earliest of such years, to the extent that 

such amount exceeds the total of any undistributed capital gain for all earlier 

preceding taxable years. The amount deemed to be distributed in any such 

preceding taxable year under the preceding sentence shall not exceed the 

undistributed capital gain for such preceding taxable year. For purposes of this 

subsection, undistributed capital gain for each of such preceding taxable years 

shall be computed without regard to such capital gain distribution and without 

regard to any capital gain distribution determined for any succeeding taxable 

year.

“ (b) Tax on Distribution.— The partial tax imposed by section 668(a)(3) 

shall be the lesser of—*

“ (1) the aggregate of the taxes attributable to the amounts deemed 

distributed under this section, had such amounts been included in the 

gross income of the beneficiary on the last day of each respective preceding taxable year, or

“ (2) the tax determined by multiplying by the number of preceding 

taxable years of the trust, on the last day of which net gains from the 

sale or exchange of capital assets are deemed under subsection (a) to 

have been distributed, the average of the increase in tax attributable to

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recomputing the beneficiary’s gross income for each of the beneficiary’s 3 

taxable years immediately preceding the year of the capital gain distribution by adding to the income of each of such years an amount determined by dividing the total of the amounts deemed distributed under this 

section and required to be included in income under section 668(a) by 

such number of preceding taxable years of the trust, 

less an amount equal to the amount of taxes deemed distributed to the beneficiary under subsections (d) and (e) which are attributable to the capital gain 

distribution.

“ (c) Effect of Other Distributions; Special Rules, Etc.— In computing the 

partial tax under subsection (b) for any beneficiary, the income of such beneficiary for each of his prior taxable years—

“ (1) shall include amounts previously deemed distributed to such beneficiary in such year under section 666 or 669 as a result of prior accumulation distributions or capital gain distributions (whether from the 

same or another trust), and

“ (2) shall include amounts deemed distributed to such beneficiary in 

such year under section 666 as a result of an accumulation distribution 

from the same trust in the current year.

Under regulations prescribed by the Secretary or his delegate, rules similar to 

the rules provided by paragraphs (2), (4), and (5) of section 668(b) shall be 

applied for purposes of this section.

“ (d) Total Taxes Deemed Distributed.— If any portion of a capital gain distribution for any taxable year is deemed under subsection (a) to be an amount 

properly paid, credited or required to be distributed on the last day of any preceding taxable year, and such portion of such capital gain distribution is not 

less than the undistributed capital gain for such preceding taxable year, the 

trust shall be deemed to have properly distributed on the last day of such preceding taxable year an additional amount. Such additional amount shall be 

equal to the taxes imposed on the trust for such preceding taxable year attributable to such undistributed capital gain. For purposes of this subsection, the 

undistributed capital gain and the taxes imposed on the trust for such preceding taxable year attributable to such gain shall be computed without regard to 

such capital gain distribution and without regard to any capital gain distribution determined for any succeeding taxable year.

“ (e) Pro Rata Portion of Taxes Deemed Distributed.— If any portion of a 

capital gain distribution for any taxable year is deemed under subsection (a) 

to be an amount properly paid, credited, or required to be distributed on the 

last day of any preceding taxable year and such portion of the capital gain distribution is less than the undistributed capital gain for such preceding taxable 

year, the trust shall be deemed to have properly distributed on the last day of 

such preceding taxable year an additional amount. Such additional amount 

shall be equal to the taxes imposed on the trust for such taxable year attributable to such undistributed capital gain multiplied by the ratio of the portion of 

the capital gain distribution to the undistributed capital gain of the trust for 

such year. For purposes of this subsection, the undistributed capital gain and 

the taxes imposed on the trust for such preceding taxable year attributable to 

such gain shall be computed without regard to the capital gain distribution 

and without regard to any capital gain distribution determined for any succeeding taxable year.

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“ (f) Character of Capital Gain.— For purposes of this section, the character 

of the capital gain of a trust for any taxable year with respect to a beneficiary 

shall be the same as it was with respect to the trust."

(b) Distributions in First Sixty-Five Days of Taxable Year.— Section 663(b) 

(2) (relating to limitation on sixty-five day rule) is amended to read as follows:

“ (2) Limitation.— Paragraph (1) shall apply with respect to any taxable 

year of a trust only if the fiduciary of such trust elects, in such manner 

and at such time as the Secretary or his delegate prescribes by regulations, to have paragraph (1) apply for such taxable year."

(c) Excessive Credits.— Section 6401(b) (relating to excessive credits) is 

amended—

(1) by striking out “ Linder Sections 31 and 39" in the heading of such 

section;

(2) by striking out “ and 39 (relating" in the text of such section and 

inserting in lieu thereof 39 (relating” ; and

(3) by inserting after “ lubricating oil)" in the text of such section “ and 

667(b) (relating to taxes paid by certain trusts)".

(d) Effective Date.—

(1) General Rule.— Except as otherwise provided in this subsection, the 

amendments made by this section shall apply to taxable years beginning 

after December 31, 1968.

(2) Exceptions.—

(A) Amounts paid, credited, or required to be distributed by a 

trust (other than a foreign trust created by a United States person) 

on or before the last day of a taxable year of the trust beginning 

before January 1, 1974, shall not be deemed to be accumulation distributions to the extent that such amounts were accumulated by a 

trust in taxable years of such trust beginning before January 1, 

1969, and would have been excepted from the definition of an accumulation distribution by reason of paragraphs (1), (2), (3), or (4) of 

section 665(b) of the Internal Revenue Code of 1954, as in 

effect on December 31, 1968, if they had been distributed on the last 

day of the last taxable year of the trust beginning before January 1, 

1969.

(B) For taxable years of a trust beginning before January 1, 1970, 

the first sentence of section 666(a) of the Internal Revenue Code of 

1954 (as amended by this section) shall not apply, and the amount 

of the accumulation distribution of the trust for such taxable years 

shall be deemed to be an amount within the meaning of paragraph

(2) of section 661(a) distributed on the last day of each of the preceding taxable years to the extent that such amount exceeds the 

total of any undistributed net income for any taxable years intervening between the taxable year with respect of which the accumulation 

distribution is determined and such preceding taxable year.

(C) In the case of a trust which was in existence on December 31, 

1969, section 669 of the Internal Revenue Code of 1954, as 

amended by this section, shall not apply to capital gain distributions 

made to a beneficiary before January 1, 1972. If the beneficiary 

receives capital gain distributions from more than one such trust 

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tal gain distributions from only one of such trusts, such one to be 

designated by the taxpayer in accordance with regulations prescribed 

by the Secretary or his delegate. For purposes of the preceding sentence, capital gain distributions received from a trust qualifying 

under section 2056(b)(5) of the Internal Revenue Code of 1954 by 

a surviving spouse (who is the beneficiary of only one such trust) 

shall be disregarded.

SEC. 332. TRUST INCOME FOR BENEFIT OF A SPOUSE.

(a) Income for Benefit of Grantor's Spouse.—

(1) Paragraphs (1), (2), and (3) of section 677(a) (relating to income 

for benefit of grantor) are amended by striking out "the grantor" each 

place it appears and inserting in lieu thereof "the grantor or the grantor’s 

spouse".

(2) Section 677(b) is amended by striking out "beneficiary" and inserting in lieu thereof "beneficiary (other than the grantor’s spouse)".

(b) Effective Date.— The amendments made by subsection (a) shall apply in 

respect of property transferred in trust after October 9, 1969.

TITLE IV— ADJUSTMENTS PRIMARILY 

AFFECTING CORPORATIONS

❖ * *

SUBTITLE D— FINANCIAL INSTITUTIONS

SEC. 431. RESERVE FOR LOSSES ON LOANS; NET OPERATING LOSS CARRYBACKS.

(a) Bad Debt Deductions of Financial Institutions.— Part I of subchapter H 

of chapter 1 (relating to rules of general application to banking institutions) is 

amended by adding at the end thereof the following new sections:

"SEC. 585, RESERVES FOR LOSSES ON LOANS OF BANKS.

"(a) Institutions to Which Section Applies.— This section shall apply to the 

following financial institutions:

"(1) any bank (as defined in section 581) other than an organization 

to which section 593 applies, and

"(2) any corporation to which paragraph (1) would apply esxcept for 

the fact that it is a foreign corporation, and in the case of any such foreign corporation this section shall apply only with respect to loans outstanding the interest on which is effectively connected with the conduct 

of a banking business within the United States.

"(b) Addition to Reserves for Bad Debts.—

"(1) General Rule.— For purposes of section 166(c), the reasonable 

addition to the reserve for bad debts of any financial institution to which 

this section applies shall be an amount determined by the taxpayer which 

shall not exceed the greater of—

"(A) for taxable years beginning before 1988 the addition to the 

reserve for losses on loans determined under the percentage method 

as provided in paragraph (2), or

“ (B) the addition to the reserve for losses on loans determined 

under the experience method as provided in paragraph (3).

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“ (2) Percentage Method.— The amount determined under this paragraph for a taxable year shall be the amount necessary to increase the 

balance of the reserve for losses on loans (at the close of the taxable 

year) to the allowable percentage of eligible loans outstanding at such 

time, except that—

“ (A) If the reserve for losses on loans at the close of the base 

year is less than the allowable percentage of eligible loans outstanding at such time, the amount determined under this paragraph with 

respect to the difference shall not exceed one-fifth of such difference.

“ (B) If the reserve for losses on loans at the close of the base 

year is not less than the allowable percentage of eligible loans outstanding at such time, the amount determined under this paragraph 

shall be the amount necessary to increase the balance of the reserve 

at the close of the taxable year to (i) the allowable percentage of eligible loans outstanding at such time, or (ii) the balance of the 

reserve at the close of the base year, whichever is greater, but if the 

amount of eligible loans outstanding at the close of the taxable year 

is less than the amount of such loans outstanding at the close of 

the base year, the amount determined under clause (ii) shall be the 

amount necessary to increase the balance of the reserve at the close 

of the taxable year to the amount which bears the same ratio to eligible loans outstanding at the close of the taxable year as the balance of the reserve at the close of the base year bears to the 

amount of eligible loans outstanding at the close of the base year. 

For purposes of this paragraph, the term 'allowable percentage' means 

1.8 percent for taxable years beginning before 1976; 1.2 percent for taxable years beginning after 1975 but before 1982; and 0.6 percent for taxable years beginning after 1981. The amount determined under this paragraph shall not exceed 0.6 percent of eligible loans outstanding at the 

close of the taxable year or an amount sufficient to increase the reserve 

for losses on loans to 0.6 percent of eligible loans outstanding at the 

close of the taxable year, whichever is greater. For purposes of this paragraph, the term 'base year' means: for taxable years beginning before 

1976, the last taxable year beginning on or before July 11, 1969, for taxable years beginning after 1975 but before 1982, the last taxable year 

beginning before 1976, and for taxable years beginning after 1981, the 

last taxable year beginning before 1982; except that for purposes of subparagraph (A) such term means the last taxable year before the most 

recent adoption of the percentage method, if later.

“ (3) Experience method.— The amount determined under this paragraph for a taxable year shall be the amount necessary to increase the 

balance of the reserve for losses on loans (at the close of the taxable 

year) to the greater of—

“ (A) the amount which bears the same ratio to loans outstanding 

at the close of the taxable year as (i) the total bad debts sustained 

during the taxable year and the 5 preceding taxable years (or, with 

the approval of the Secretary or his delegate, a shorter period), 

adjusted for recoveries of bad debts during such period, bears to (ii)

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the sum of the loans outstanding at the close of such 6 or fewer 

taxable years, or

“ (B) the lower of—

“ (i) the balance of the reserve at the close of the base year,

or

“ (ii) if the amount of loans outstanding at the close of the 

taxable year is less than the amount of loans outstanding at the 

close of the base year, the amount which bears the same ratio 

to loans outstanding at the close of the taxable year as the balance of the reserve at the close of the base year bears to the 

amount of loans outstanding at the close of the base year.

For purposes of this paragraph, the base year shall be the last taxable 

year before the most recent adoption of the experience method, except 

that for taxable years beginning after 1987 the base year shall be the last 

taxable year beginning before 1988.

“ (4) Regulations; definition of eligible loan, etc.— The Secretary or his 

delegate shall define the terms ‘loan’ and 'eligible loan' and prescribe 

such regulations as may be necessary to carry out the purposes of this 

section; except that the term 'eligible loan’ shall not include—

“ (A) a loan to a bank (as defined in section 581),

“ (B) a loan to a domestic branch of a foreign corporation to 

which subsection (a)(2) applies,

“ (C) a loan secured by a deposit (i) in the lending bank, or (ii) in 

an institution described in subparagraph (A) or (B) if the lending 

bank has control over withdrawal of such deposit,

“ (D) a loan to or guaranteed by the United States, a possession 

or instrumentality thereof, or a State or a political subdivision 

thereof,

“ (E) a loan evidenced by a security as defined in section 

165(g)(2)(C),

“ (F) a loan of Federal funds, and

“ (G) commercial paper, including short-term promissory notes 

which may be purchased on the open market.

SEC. 432. MUTUAL SAVINGS BANKS, ETC.

(a) Reserve for Losses on Loans.— Section 593(b) (relating to addition to 

reserves for bad debts) is amended—

(1) by striking out subparagraph (A) of paragraph (1) and inserting in 

lieu thereof the following:

“ (A) the amount determined to be a reasonable addition to the 

reserve for losses on nonqualifying loans, computed in the same 

manner as is provided with respect to additions to the reserves for 

losses on loans of banks under section 585(b)(3), plus".

(2) by striking out paragraphs (2), (3), (4), and (5) and inserting in 

lieu thereof the following:

“ (2) Percentage of taxable income method.—

“ (A) In general.— Subject to subparagraphs (B), (C), and (D), the 

amount determined under this paragraph for the taxable year shall

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be an amount equal to the applicable percentage of the taxable 

income for such year (determined under the following table):

The applicable percentage under

"F o r a taxable year beginning in— th is paragraph shall be—

1969 60 percent.

1970 ........................ 57 percent.

1971 ................................................................................ 54 percent.

1972 51 percent.

1973 49 percent.

1974 .......................................................................... 47 percent.

1975 ............................................ 45 percent.

1976 43 percent.

1977 42 percent.

1978 41 percent.

1979 or thereafter ............................................................................... 40 percent.

“ (B) Reduction of applicable percentage in certain cases.— If, for 

the taxable year, the percentage of the assets of a taxpayer 

described in subsection (a), which are assets described in section 

7701(a)(19)(C), is less than—

“ (i) 82 percent of the total assets in the case of a taxpayer 

other than a mutual savings bank, the applicable percentage for 

such year provided by subparagraph (A) shall be reduced by % 

of 1 percentage point for each 1 percentage point of such difference, or

“ (ii) 72 percent of the total assets in the case of a mutual 

savings bank, the applicable percentage for such year provided 

by subparagraph (A) shall be reduced by i y 2 percentage points 

for each 1 percentage point of such difference.

If, for the taxable year, the percentage of the assets of such taxpayer which are assets described in section 7701(a)(19)(C) is less 

than 60 percent (50 percent for a taxable year beginning before 

1973 in the case of a mutual savings bank), this paragraph shall not 

apply.

“ (C) Reduction for amounts referred to in paragraph (1)(A).— The 

amount determined under subparagraph (A) shall be reduced by that 

portion of the amount referred to in paragraph (1)(A) for the taxable 

year (not in excess of 100 percent) which bears the same ratio to 

such amount as (i) 18 percent (28 percent in the case of mutual 

savings banks) bears to (ii) the percentage of the assets of the taxpayer for such year which are not assets described in section 

7701(a)(19)(C).

“ (D) Overall limitation on paragraph.— The amount determined 

under this paragraph shall not exceed the amount necessary to 

increase the balance at the close of the taxable year of the reserve 

for losses on qualifying real property loans to 6 percent of such 

loans outstanding at such time.

“ (E) Computation of taxable income.— For purposes of this paragraph, taxable income shall be computed—

“ (i) by excluding from gross income any amount included 

therein by reason of subsection (f),

“ (ii) without regard to any deduction allowable for any addition to the reserve for bad debts,

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“ (iii) by excluding from gross income an amount equal to 

the net gain for the taxable year arising from the sale or 

exchange of stock of a corporation or of obligations the interest 

on which is excludable from gross income under section 103,

“ (iv) by excluding from gross income an amount equal to the 

lesser of % of the net long-term capital gain for the taxable 

year or % of the net long-term capital gain for the taxable year 

from the sale or exchange of property other than property 

described in clause (iii), and

"(v) by excluding from gross income dividends with respect 

to which a deduction is allowable by part VIII of subchapter Bf 

reduced by an amount equal to the applicable percentage 

(determined under subparagraphs (A) and (B)) of the dividends 

received deduction (determined without regard to section 596) 

for the taxable year.

"(3) Percentage method.— The amount determined under this paragraph to be a reasonable addition to the reserve for losses on qualifying 

real property loans shall be computed in the same manner as is provided 

with respect to additions to the reserves for losses on loans of banks 

under section 585(b)(2), reduced by the amount referred to in paragraph

(1)(A) for the taxable year.

“ (4) Experience method.— The amount determined under this paragraph for the taxable year shall be computed in the same manner as is 

provided with respect to additions to the reserves for losses on loans of 

banks under section 585(b)(3).

"(5) Determination of reserve for percentage method.— For purposes 

of paragraph (3), the amount deemed to be the balance of the reserve 

for losses on loans at the beginning of the taxable year shall be the total 

of the balances at such time of the reserve for losses on nonqualifying 

loans, the reserve for losses on qualifying real property loans, and the 

supplemental reserve for losses on loans.”

(b) Certain Corporate Acquisitions.— Section 593(f)(1) (relating to distributions to shareholders) is amended by adding at the end thereof the following 

new sentence: “ This paragraph shall not apply to any transaction to which section 381 (relating to carryovers in certain corporate acquisitions) applies."

(c) Investment Standards.— Section 7701(a)(19) (defining domestic building 

and loan association) is amended to read as follows:

“ (19) Domestic building and loan association.— The term 'domestic 

building and loan association’ means a domestic building and loan association, a domestic savings and loan association, and a Federal savings 

and loan association—

“ (A) which either (i) is an insured institution within the meaning 

of section 401(a) of the National Housing Act (12 U.S.C., sec. 

1724(a)), or (ii) is subject by law to supervision and examination by 

State or Federal authority having supervision over such associations;

“ (B) the business of which consists principally of acquiring the 

savings of the public and investing in loans; and

“ (C) at least 60 percent of the amount of the total assets of 

which (at the close of the taxable year) consists of—

“ (i) cash,

“ (ii) obligations of the United States or of a State or political 

subdivision thereof, and stock or obligations of a corporation

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which is an instrumentality of the United States or of a State or 

political subdivision thereof, but not including obligations the 

interest on which is excludable from gross income under section 

103,

“ (iii) certificates of deposit in, or obligations of, a corporation organized under a State law which specifically authorizes 

such corporation to insure the deposits or share accounts of 

member associations,

“ (iv) loans secured by a deposit or share of a member,

"(v) loans (including redeemable ground rents, as defined in 

section 1055) secured by an interest in real property which is 

(or, from the proceeds of the loan, will become) residential real 

property or real property used primarily for church purposes, 

loans made for the improvement of residential real property or 

real property used primarily for church purposes, provided that 

for purposes of this clause, residential real property shall 

include single or multifamily dwellings, facilities in residential 

developments dedicated to public use or property used on a 

nonprofit basis for residents, and mobile homes not used on a 

transient basis,

“ (vi) loans secured by an interest in real property located 

within an urban renewal area to be developed for predominantly 

residential use under an urban renewal plan approved by the 

Secretary of Housing and Urban Development under part A or 

part B of title I of the Housing Act of 1949, as amended, or 

located within any area covered by a program eligible for assistance under section 103 of the Demonstration Cities and Metropolitan Development Act of 1966, as amended, and loans made 

for the improvement of any such real property,

“ (vii) loans secured by an interest in educational, health, or 

welfare institutions or facilities, including structures designed or 

used primarily for residential purposes for students, residents, 

and persons under care, employees, or members of the staff of 

such institutions or facilities,

“ (viii) property acquired through the liquidation of defaulted 

loans described in clause (v), (vi), or (vii),

“ (ix) loans made for the payment of expenses of college or 

university education or vocational training, in accordance with 

such regulations as may be prescribed by the Secretary or his 

delegate, and

“ (x) property used by the association in the conduct of the 

business described in subparagraph (B).

At the election of the taxpayer, the percentage specified in this subparagraph shall be applied on the basis of the average assets outstanding during the taxable year, in lieu of the close of the taxable 

year, computed under regulations prescribed by the Secretary or his 

delegate. For purposes of clause (v), if a multifamily structure securing a loan is used in part for nonresidential purposes, the entire loan 

is deemed a residential real property loan if the planned residential 

use exceeds 80 percent of the property's planned use (determined as 

of the time the loan is made). For purposes of clause (v), loans 

made to finance the acquisition or development of land shall be

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deemed to be loans secured by an interest in residential real property if, under regulations prescribed by the Secretary or his delegate, 

there is reasonable assurance that the property will become residential real property within a period of 3 years from the date of acquisition of such land; but this sentence shall not apply for any taxable 

year unless, within such 3-year period, such land becomes residential 

real property.”

(d) Conforming Amendments.— Section 7701(a)(32) (defining cooperative 

bank) is amended—

(1) by striking out subparagraph (B) and inserting in lieu thereof the 

following;

“ (B) meets the requirements of subparagraphs (B) and (C) of 

paragraph (19) of this subsection (relating to definition of domestic 

building and loan association).” , and

(2) by striking out the third sentence thereof.

(e) Effective Date.— The amendments made by this section shall be effective for taxable years beginning after July 11, 1969.

SEC. 433. TREATMENT OF BONDS, ETC., HELD BY FINANCIAL INSTITUTIONS.

(a) Gain on Securities Held by Financial Institutions.— Subsection (c) of 

section 582 (relating to bad debt and loss deduction with respect to securities 

held by banks) is amended by striking out such subsection and inserting the 

following in lieu thereof:

“ (c) Bond, Etc., Losses and Gains of Financial Institutions.—

“ (1) General rule.— For purposes of this subtitle, in the case of a financial institution to which section 585, 586, or 593 applies, the sale or 

exchange of a bond, debenture, note, or certificate or other evidence of 

indebtedness shall not be considered a sale or exchange of a capital 

asset.

“ (2) Transitional rule for banks.— In the case of a bank, if the net 

long-term capital gains of the taxable year from sales or exchanges of 

qualifying securities exceed the net short-term capital losses of the taxable year from such sales or exchanges, such excess shall be considered 

as gain from the sale of a capital asset held for more than 6 months to 

the extent it does not exceed the net gain on sales and exchanges 

described in paragraph (1).

“ (3) Special rules.-— For purposes of this subsection—

“ (A) The term ‘qualifying security' means a bond, debenture, 

note, or certificate or other evidence of indebtedness held by a bank 

on July 11, 1969.

“ (B) The amount treated as capital gain or loss from the sale or 

exchange of a qualifying security shall be determined by multiplying 

the amount of capital gain or loss from the sale or exchange of such 

security (determined without regard to this subsection) by a fraction, 

the numerator of which is the number of days before July 12, 1969, 

that such security was held by the bank, and the denominator of 

which is the number of days the security was held by the bank.”

(b) Conforming Amendment.— Paragraph (1) of section 1243 (relating to 

loss of a small business investment company) is amended to read as follows:

“ (1) a loss is on stock received pursuant to the conversion privilege of 

convertible debentures acquired pursuant to section 304 of the Small 

Business Investment Act of 1958, and".

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(c) Clerical Amendment.— The heading for section 582 is amended to read 

as follows:

"SEC. 582. BAD DEBTS, LOSSES, AND GAINS WITH RESPECT TO SECURITIES HELD BY FINANCIAL INSTITUTIONS.”

(d) Effective Date.—

(1) In general.— The amendments made by this section shall apply to 

taxable years beginning after July 11, 1969.

(2) Election for small business investment companies and business 

development corporations.— Notwithstanding paragraph (1), in the case of 

a financial institution described in section 586(a) of the Internal Revenue 

Code of 1954, the amendments made by this section shall not apply for 

its taxable years beginning after July 11, 1969, and before July 11, 1974, 

unless the taxpayer so elects at such time and in such manner as shall 

be prescribed by the Secretary of the Treasury or his delegate. Such election shall be irrevocable and shall apply to all such taxable years.

SEC. 434. LIMITATION ON DEDUCTION FOR DIVIDENDS RECEIVED BY 

MUTUAL SAVINGS BANKS, ETC.

(a) Special Limitation.— Part II of subchapter H of chapter 1 is amended by 

adding at the end thereof the following new section:

"SEC. 596. LIMITATION ON DIVIDENDS RECEIVED DEDUCTION.

"In the case of an organization to which section 593 applies and which 

computes additions to the reserve for losses on loans for the taxable year 

under section 593(b)(2), the total amount allowed under sections 243, 244, 

and 245 (determined without regard to this section) for the taxable year as a 

deduction with respect to dividends received shall be reduced by an amount 

equal to the applicable percentage for such year (determined under subparagraphs (A) and (B) of section 593(b)(2)) of such total amount.”

(b) Technical and Clerical Amendments.—

(1) Section 246 (relating to rules applying to deductions for dividends 

received) is amended by adding at the end thereof the following new 

subsection:

"(d) Cross Reference.—

“ For special rule re la tin g to m utual savings banks, etc., to w hich section 593

applies, see section 596.”

(2) The table of sections for part II of subchapter H of chapter 1 is 

amended by adding at the end thereof:

“ Sec. 596. L im ita tio n on dividends received ded u ctio n."

(c) Effective Date.— The amendments made by this section shall apply to 

taxable years beginning after July 11, 1969.

SEC. 435. FOREIGN DEPOSITS IN UNITED STATES BANKS.

(a) Income From Sources Within the United States.—

(1) Effective with respect to amounts paid or credited after December 31, 

1969, subparagraphs (C) and (D) of section 861(a)(1) (relating to 

interest) are each amended by striking out "after December 31, 1972,” .

(2) Section 861(c) (relating to interest on deposits, etc.) is amended 

by striking out "1972” and inserting in lieu thereof "1975” .

(b) Property Within the United States.— The second sentence of section 

2104(c) (relating to debt obligations) is amended by striking out "December 31, 

1972” and inserting in lieu thereof "December 31, 1969” .

Approved December 30, 1969, 9:30 a.m.

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RULES AND REGULATIONS OF THE

CORPORATION—1969

TITLE 12— BANKS AND BANKING 

CHAPTER III— FEDERAL DEPOSIT INSURANCE CORPORATION

SUBCHAPTER B— REGULATIONS AND STATEMENTS OF GENERAL POLICY

PART 330— CLARIFICATION AND DEFINITION OF DEPOSIT 

INSURANCE COVERAGE

Public Unit Accounts; Political Subdivision

Effective January 8, 1969, § 330.8 of the rules and regulations of the Federal Deposit Insurance Corporation (12 CFR Part 330) is amended to add a 

new paragraph (c) to read as follows:

§ 330.8 Public unit accounts.

* * * * *

(c) Political subdivision. The term “ political subdivision" includes any subdivision of a public unit, as defined in section 3(m) of the Federal Deposit Insurance Act, or any principal department of such public unit, (1) the creation of 

which subdivision or department has been expressly authorized by State statute, (2) to which some functions of government have been delegated by State 

statute, and (3) to which funds have been allocated by statute or ordinance 

for its exclusive use and control. It also includes drainage, irrigation, navigation, improvement, levee, sanitary, school or power districts, and bridge or port 

authorities and other special districts created by State statute or compacts 

between the States. Excluded from the term are subordinate or nonautonomous divisions, agencies, or boards within principal departments.

*****

[F.R. Doc. 69-198; Filed, Jan. 7, 1969; 8:47 a.m.]

CHAPTER III— FEDERAL DEPOSIT INSURANCE CORPORATION 

SUBCHAPTER B— REGULATIONS AND STATEMENTS OF GENERAL POLICY

PART 326— MINIMUM SECURITY DEVICES AND PROCEDURES FOR 

INSURED NONMEMBER BANKS

Effective January 16, 1969, a new Part 326 of the rules and regulations of 

the Federal Deposit Insurance Corporation (12 CFR Part 326) is added to read 

as follows:

PART 326— MINIMUM SECURITY DEVICES AND PROCEDURES FOR 

INSURED NONMEMBER BANKS

Sec.

326.0 Scope of part.

326.1 Definitions.

326.2 Designation of security officer.

326.3 Security devices.

326.4 Security procedures.

326.5 Filing by insured State nonmember banks of reports with the Corporation.

326.6 Corrective action.

326.7 Penalty provision.

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RULES AND REGULATIONS OF THE CORPORATION 171

Appendix A Minimum Standards for Security Devices.

Appendix B Proper Employee Conduct During and After a Robbery.

AUTHORITY: The provisions of this Part 326 issued under sec. 3, 82 Stat. 

295. Interpret or apply sec. 1, 2, 3, 4, 5, 82 Stat. 294, 295.

§ 326.0 Scope of part.

Pursuant to the authority conferred upon the Federal Deposit Insurance Corporation by section 3 of the Bank Protection Act of 1968 (82 Stat. 295), the 

regulations contained in this part—

(a) establish minimum standards with which each insured State nonmember 

bank must comply with respect to the installation, maintenance, and operation 

of security devices and procedures to discourage robberies, burglaries, and larcenies and to assist in the identification and apprehension of persons who 

commit such acts;

(b) establish time limits within which each such bank shall comply with 

such standards; and

(c) require the submission of reports with respect to the installation, maintenance, and operation of security devices and procedures.

§ 326.1 Definitions.

For the purposes of this part—

(a) The term “ insured State nonmember bank" means any bank (including 

any mutual savings bank), incorporated under the laws of any State of the 

United States, any Territory of the United States, Puerto Rico, Guam, or the 

Virgin Islands, that is not a member of the Federal Reserve System but the 

deposits of which are insured in accordance with the provisions of the Federal 

Deposit Insurance Act, as amended (12 U.S.C. 1811-1832), but the term does 

not include any bank located in the District of Columbia.

(b) The term “ banking hours" means the time during which a banking 

office is open for the normal transaction of business with the banking public.

(c) The term “ banking office" includes the main office of any insured State 

nonmember bank and any branch thereof.

(d) 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 any Territory of the United States, Puerto Rico, 

Guam, or the Virgin Islands at which deposits are received or checks paid or 

money lent.

(e) The term “ Board of Directors" means the Board of Directors of the Federal Deposit Insurance Corporation.

(f) The term “ teller’s station or window" means a location in a banking 

office at which bank customers routinely conduct transactions with the bank 

which involve the exchange of funds, including a walk-up or drive-in teller's 

station or window.

§ 326.2 Designation of security officer.

On or before February 15, 1969, or within 30 days after the bank becomes 

a member of the Federal Deposit Insurance Corporation, the board of directors 

of each insured State nonmember bank shall designate an officer or other 

employee of the bank who shall be charged, subject to supervision by the 

bank’s board of directors, with responsibility for the installation, maintenance, 

and operation of security devices and for the development and administration

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of a security program which equal or exceed the standards prescribed by this 

part.

§ 326.3 Security devices.

(a) Installation, maintenance, and operation of appropriate security devices.

Before January 1, 1970, or within 30 days after the bank becomes a member 

of the Federal Deposit Insurance Corporation, the security officer of each 

insured State nonmember bank, under such directions as shall be given him 

by the bank’s board of directors, shall survey the need for security devices in 

each of the bank’s banking offices and shall provide for the installation, maintenance, and operation, in each such office, of—

(1) a lighting system for illuminating, during the hours of darkness, the 

area around the vault, if the vault is visible from outside the banking office;

(2) tamper-resistant locks on exterior doors and exterior windows designed 

to be opened;

(3) an alarm system or other appropriate device for promptly notifying the 

nearest responsible law enforcement officers of an attempted or perpetrated 

robbery or burglary; and

(4) such other devices as the security officer, after seeking the advice of 

law enforcement officers, shall determine to be appropriate for discouraging 

robberies, burglaries, and larcenies and for assisting in the identification and 

apprehension of persons who commit such acts.

(b) Considerations relevant to determining appropriateness. For the purposes of subparagraph (4) of paragraph (a) of this section, considerations relevant to determining appropriateness include, but are not limited to—

(1) the incidence of crimes against the particular banking office and/or 

against financial institutions in the area in which the banking office is or will 

be located;

(2) the amount of currency or other valuables exposed to robbery, burglary, 

or larceny;

(3) the distance of the banking office from the nearest responsible law 

enforcement officers and the time required for such law enforcement officers 

ordinarily to arrive at the banking office;

(4) the cost of the security devices;

(5) other security measures in effect at the banking office; and

(6) the physical characteristics of the banking office structure and its surroundings.

(c) Implementation. It is appropriate for banking offices in areas with a high 

incidence of crime to install many devices which would not be practicable 

because of costs for small banking offices in areas substantially free of crimes 

against financial institutions. Each insured State nonmember bank shall consider the appropriateness of installing, maintaining, and operating security 

devices which are expected to give a general level of bank protection at least 

equivalent to the standards described in Appendix A of this part. In any case 

in which (on the basis of the factors listed in paragraph (b) of this section or 

similar ones, the use of other measures, or the decision that technological 

change allows the use of other measures judged to give equivalent protection) 

it is decided not to install, maintain, and operate devices at least equivalent to 

these standards, the bank shall preserve in its records a statement of the reasons for such decision.

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§ 326.4 Security procedures.

(a) Development and administration. On or before July 15, 1969, or within 

30 days after the bank becomes a member of the Federal Deposit Insurance 

Corporation, each insured State nonmember bank shall develop and provide for 

the administration of a security program to protect each of its banking offices 

from robberies, burglaries, and larcenies and to assist in the identification and 

apprehension of persons who commit such acts. The security program shall be 

reduced to writing, approved by the bank's board of directors, and retained by 

the bank in such form as will readily permit determination of its adequacy and 

effectiveness.

(b) Contents of security programs. Such security programs shall—

(1) provide for establishing a schedule for the inspection, testing, and servicing of all security devices installed in each banking office; provide for designating the officer or other employee who shall be responsible for seeing that 

such devices are inspected, tested, serviced, and kept in good working order; 

and require such officer or other employee to keep a record of such inspections, testings, and servicings;

(2) require that each banking office's currency be, kept at a reasonable minimum and provide procedures for safely removing excess currency;

(3) require that the currency at each teller’s station or window be kept at a 

reasonable minimum and provide procedures for safely removing excess currency and other valuables to a locked safe, vault, or other protected place;

(4) require that the currency at each teller's station or window include 

“ bait" money, i.e., used Federal Reserve notes the denominations, banks of 

issue, serial numbers, and series years of which are recorded, verified by a 

second officer or employee, and kept in a safe place;

(5) require that all currency, negotiable securities, and similar valuables be 

kept in a locked vault or safe during nonbusiness hours, that the vault or safe 

be opened at the latest time practicable before banking hours, and that the 

vault or safe be locked at the earliest time practicable after banking hours;

(6) provide, where practicable, for designation of a person or persons to 

open each banking office and require him or them to inspect the premises, to 

ascertain that no unauthorized persons are present, and to signal other 

employees that the premises are safe before permitting them to enter;

(7) provide for designation of a person or persons who will assure that all 

security devices are turned on and are operating during the periods in which 

such devices are intended to be used;

(8) provide for designation of a person or persons to inspect, after the closing hour, all areas of each banking office where currency, negotiable securities, 

or similar valuables are normally handled or stored in order to assure that 

such currency, securities, and valuables have been put away, that no unauthorized persons are present in such areas, and that the vault or safe and all 

doors and windows are securely locked; and

(9) provide for training, and periodic retraining, of employees in their 

responsibilities under the security program, including the proper use of security devices and proper employee conduct during and after a robbery, in 

accordance with the procedures listed in Appendix B of this part.

§ 326.5 Filing by insured State nonmember banks of reports with the Corporation.

(a) Compliance reports. As of the last business day in June of 1970, and as 

of the last business day in June of each calendar year thereafter, each insured

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State nonmember bank shall file with the Supervising Examiner of the Federal 

Deposit Insurance Corporation District in which its main office is located a 

statement certifying to its compliance with the requirements of this part. The 

statement shall be dated and signed by the president, or cashier, or other 

managing officer of the bank and may be in a form substantially as follows:

“ I hereby certify, to the best of my knowledge and belief, that this bank 

has developed and administers a security program that equals or exceeds 

the standards prescribed by § 326.4 of the rules and regulations of the Federal Deposit Insurance Corporation; that such security program has been 

reduced to writing, approved by the bank's board of directors, and retained 

by the bank in such form as will readily permit determination of its adequacy and effectiveness; and that the bank security officer, after seeking the 

advice of law enforcement officers, has provided for the installation, maintenance, and operation of appropriate security devices, as prescribed by 

§ 326.3 of the rules and regulations of the Federal Deposit Insurance Corporation, in each of the bank's banking offices."

(b) Records of consultation. The bank's files shall contain a readily available record showing the name(s) and title(s) of the law enforcement officer(s) 

whose advice the security officer sought prior to the installation, maintenance, 

and operation of appropriate security devices.

(c) Reports on security devices. On or before March 15, 1969, and upon 

such other occasions as the Board of Directors may specify, each insured 

State nonmember bank shall file with the Supervising Examiner of the Federal 

Deposit Insurance Corporation District in which it is located a report on 

Form P -l (in duplicate) for each of its offices that is subject to this part.

(d) External crime reports. Each time a robbery, burglary, or nonbank 

employee larceny is perpetrated or attempted at a banking office operated by 

an insured State nonmember bank, the bank shall, within a reasonable time, 

file a report in conformity with the requirements of Form P-2. One copy of 

such report shall be filed with the appropriate State supervisory authority and 

three copies of such report shall be filed with the Supervising Examiner of the 

Federal Deposit Insurance Corporation District in which the main office of the 

reporting bank is located.

(e) Special reports. Each insured State nonmember bank shall file such 

other reports as the Board of Directors or its designee may require.

§ 326.6 Corrective action.

Whenever the Board of Directors or its designee determines that the security 

devices or procedures used by an insured State nonmember bank are deficient 

in meeting the requirements of this part, or that the requirements of this part 

should be varied in the circumstances of a particular banking office, it may 

take or require the bank to take necessary corrective action. If the Board of 

Directors or its designee determines that such corrective action is appropriate 

or necessary, the bank will be so notified and will be furnished a statement of 

what the bank must do to comply with the requirements of this part.

§ 326.7 Penalty provision.

Pursuant to section 5 of the Bank Protection Act of 1968 (82 Stat. 295), an 

insured State nonmember bank that violates any provision of this part shall be 

subject to a civil penalty not to exceed $100 for each day of the violation.

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APPENDIX A 

Minimum Standards for Security Devices

(1) Surveillance systems— (i) General. Surveillance systems should be:

(A) equipped with one or more photographic, recording, monitoring, or like 

devices capable of reproducing images of persons in the banking office with 

sufficient clarity to facilitate (through photographs capable of being enlarged to 

produce a one-inch vertical head-size of persons whose images have been 

reproduced) the identification and apprehension of robbers or other suspicious 

persons;

(B) reasonably silent in operation; and

(C) so designed and constructed that necessary services, repairs, or inspections can readily be made.

Any camera used in such a system should be capable of taking at least one 

picture every two seconds and, if it uses film, should contain enough unexposed film at all times to be capable of operating for not less than three minutes, and the film should be at least 16mm.

(ii) Installation, maintenance, and operation of surveillance systems providing surveillance of other than walk-up or drive-in teller's stations or windows.

Surveillance devices for other than walk-up or drive-in teller's stations or windows should be:

(A) located so as to reproduce identifiable images of persons either leaving 

the banking office or in a position to transact business at each such station or 

window; and

(B) capable of activation by initiating devices located at each teller's station 

or window.

(iii) Installation, maintenance, and operation of surveillance systems providing surveillance of walk-up or drive-in teller's stations or windows. Surveillance 

devices for walk-up and drive-in teller’s stations or windows should be located 

in such a manner as to reproduce identifiable images of persons in a position 

to transact business at each such station or window and areas of such station 

or window that are vulnerable to robbery or larceny. Such devices should be 

capable of activation by one or more initiating devices located within or in 

close proximity to such station or window. Such devices could be omitted in 

the case of a walk-up or drive-in teller’s station or window in which the teller 

is effectively protected by a bullet-resistant barrier from persons outside the 

station or window, but if the teller is vulnerable to larceny or robbery by members of the public who enter the banking office, the teller should have access 

to a device to activate a surveillance system that covers the area of vulnerability or the exits to the banking office.

(2) Robbery alarm systems. A robbery alarm should be provided for each 

banking office at which the police ordinarily can arrive within five minutes after 

an alarm is activated. Robbery alarm systems should be:

(i) designed to transmit to the police, either directly or through an intermediary, a signal (not detectable by unauthorized persons) indicating that a crime 

against the banking office has occurred or is in progress;

(ii) capable of activation by initiating devices located at each teller's station 

or window (except walk-up or drive-in teller’s stations or windows in which the 

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lated from persons, other than fellow employees, inside a banking office of 

which such station or window may be a part);

(iii) safeguarded against accidental transmission of an alarm;

(iv) equipped with a visual and audible signal capable of indicating improper functioning of or tampering with the system; and

(v) equipped with an independent source of power (such as a battery) 

sufficient to assure continuously reliable operation of the system for at least 

twenty-four hours in the event of failure of the usual source of power.

(3) Burglar alarm systems. Burglar alarm systems should be:

(i) capable of detecting promptly an attack on the outer door, walls, floor, 

or ceiling of each vault, and each safe not stored in a vault, in which currency, 

negotiable securities, or similar valuables are stored when the office is closed, 

and any attempt to move any such safe;

(ii) designed to transmit to the police, either directly or through an intermediary, a signal (not detectable by unauthorized persons) indicating that any 

such attempt is in progress; and in the case of a banking office at which the 

police ordinarily cannot arrive within five minutes after an alarm is activated, 

designed to activate a loud sounding bell or other device that is audible inside 

the banking office and for a distance of approximately 500 feet outside the 

banking office;

(iii) safeguarded against accidental transmission of an alarm;

(iv) equipped with a visual and audible signal capable of indicating improper functioning of or tampering with the system; and

(v) equipped with an independent source of power (such as a battery) 

sufficient to assure continuously reliable operation of the system for at least 

eighty hours in the event of failure of the usual source of power.

(4) Walk-up and drive-in teller's stations or windows. Walk-up and drive-in 

teller's stations or windows contracted for after February 15, 1969, should be 

constructed in such a manner that tellers are effectively protected by bullet-resistant barriers from robbery or larceny by persons outside such stations or 

windows. Such barriers should be of glass at least one and three-sixteenths 

inches thick,1 or of material of at least equivalent bullet-resistance. Passthrough devices should be designed and constructed so as not to afford a 

person outside the station or window a direct line of fire at a person inside 

the station or window.

(5) Vaults, safes, and night depositories. Vaults and safes (if not to be 

stored in a vault) in which currency, negotiable securities, or similar valuables 

are to be stored when the office is closed, and night depositories, contracted 

for after February 15, 1969, should meet or exceed the following standards:

(A) Vaults.— Vault walls, roof, and floor contracted for after February 15, 

1969, should be made of steel-reinforced concrete, at least 18 inches thick; 

vault doors should be made of steel or other drill- and torch-resistant material, 

at least three and one-half inches thick, and be equipped with a dial combination lock and a time lock and a substantial, lockable day-gate; or vaults and 

vault doors should be constructed of materials that afford at least equivalent 

burglary-resistance.

1 It should be em phasized th a t th is thickness is m erely b u lle t-re sista n t and not b u lle tproof.

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(B) Safes.— Safes contracted for after February 15, 1969, should weigh at 

least 750 pounds empty or be securely anchored to the premises where 

located. The door should be equipped with a combination lock and with a 

relocking device that will effectively lock the door if the combination lock is 

punched. The body should consist of steel, at least one inch in thickness, with 

an ultimate tensile strength of 50,000 pounds per square inch, either cast or 

fabricated, and be fastened in a manner equal to a continuous one-fourth inch 

penetration weld having an ultimate tensile strength of 50,000 pounds per 

square inch. One hole not exceeding %6-inch diameter may be provided in 

the body to permit insertion of electrical conductors but should be located so 

as not to permit a direct view of the door or locking mechanism. The door 

should be made of steel that is at least one and one-half inches thick and at 

least equivalent in strength to that specified for the body; or safes should be 

constructed of materials that afford at least equivalent burglary-resistance.

(C) Night depositories.— Night depositories (excluding envelope drops not 

used to receive substantial amounts of currency) contracted for after February

15, 1969, should consist of a receptacle chest having cast, or welded, steel 

walls, top and bottom, at least one inch thick; a combination locked steel door 

at least one and one-half inches thick; and a chute, made of steel that is at 

least one inch thick, securely bolted or welded to the receptacle and to a 

depository entrance of strength similar to the chute; or night depositories 

should be constructed of materials that afford at least equivalent burglaryresistance. The depository entrance should be equipped with a lock. Night 

depositories should be equipped with a burglar alarm and be designed to protect against the "fishing" of a deposit from the deposit receptacle and to 

protect against the “ trapping" of a deposit for extraction.

Each device mentioned in this Appendix should be installed and regularly 

inspected, tested, and serviced by competent persons so as to assure realization of its maximum performance capabilities. Activating devices for surveillance systems and robbery alarms should be operable with the least risk of 

detection by unauthorized persons that can be practicably achieved.

APPENDIX B

Proper Employee Conduct During and After a Robbery

With respect to proper employee conduct during and after a robbery, 

employees should be instructed—

(1) to avoid actions that might increase danger to themselves or others;

(2) to activate the robbery alarm system and the surveillance system during 

the robbery, if it appears that such activation can be accomplished safely;

(3) to observe the robber’s physical features, voice, accent, mannerisms, 

dress, the kind of weapon he has, and any other characteristics that would be 

useful for identification purposes;

(4) that if the robber leaves evidence (such as a note), to try to put it 

aside and out of sight, if it appears that this can be done safely; retain the 

evidence, do not handle it unnecessarily, and give it to the police when they 

arrive; and refrain from touching, and assist in preventing others from touching, articles or places the robber may have touched or evidence he may have 

left, in order that fingerprints of the robber may be obtained;

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178 FEDERAL DEPOSIT INSURANCE CORPORATION

(5) to give the robber no more money than the amount he demands and 

include “ bait” money in the amount given;

(6) that if it can be done safely, to observe the direction of the robber's 

escape and the description and license plate number of the vehicle used, if 

any;

(7) to telephone the local police, if they have not arrived, and the nearest 

office of the Federal Bureau of Investigation, or inform a designated officer or 

other employee who has this responsibility that a robbery has been committed;

(8) that if the robber leaves before the police arrive, to assure that a designated officer or other employee waits outside the office, if it is safe to do so, 

to inform the police when they arrive that the robber has left;

(9) to attempt to determine the names and addresses of other persons who 

witnessed the robbery or the escape and request them to record their observations or to assist a designated officer or other employee in recording their 

observations; and

(10) to refrain from discussing the details of the robbery with others before 

recording the observations respecting the robber's physical features and other 

characteristics as hereinabove described and the direction of escape and 

description of vehicle used, if any.

# * * * *

[F.R. Doc. 69-566; Filed, Jan. 15, 1969; 8:50 a.m.]

TITLE 12— BANKS AND BANKING 

CHAPTER III— FEDERAL DEPOSIT INSURANCE CORPORATION

SUBCHAPTER B— REGULATIONS AND STATEMENTS OF GENERAL POLICY

PART 329— PAYMENT OF DEPOSITS AND INTEREST THEREON 

BY INSURED NONMEMBER BANKS

Mutual Savings Banks in Massachusetts

Effective April 14, 1969, § 329.7 of the rules and regulations of the Federal 

Deposit Insurance Corporation (12 CFR 329.7) is amended by adding a new 

paragraph (f) as follows:

§ 329.7 Maximum rates of interest or dividends payable on deposits by

insured nonmember mutual savings banks.

>]t * sje i'fi 9je

(f) Special notice account deposits in Massachusetts. Notwithstanding paragraph (b) of this section, any insured nonmember mutual savings bank located 

in the Commonwealth of Massachusetts may pay a higher rate of interest or 

dividends on any deposit which is subject to a written agreement with the 

depositor that such deposit may not be withdrawn in whole or in part other 

than pursuant to the terms of a withdrawal notice signed by the depositor and 

to be received by the bank not less than 90 days in advance of a 9-day withdrawal period.

* * * Jjc *

[F.R. Doc. 69-4520; Filed, Apr. 16, 1969; 8:48 a.m.]

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RULES AND REGULATIONS OF THE CORPORATION 179

CHAPTER III— FEDERAL DEPOSIT INSURANCE CORPORATION

SUBCHAPTER B— REGULATIONS AND STATEMENTS OF GENERAL POLICY 

PART 329— INTEREST ON DEPOSITS

Advertising of Interest on Deposits

Effective August 1, 1969, Part 329 of Title 12 of the Code of Federal Regulations is amended as follows:

1. The heading of the part is amended to read as set forth above.

2. In the table of sections, § 329.3 entitled “ Maximum rate of interest on 

time and savings deposits" is amended to read “ Interest on time and savings 

deposits"; a new § 329.8 entitled “ Advertising of interest on deposits" is 

added; and § 329.101 entitled “ Payment of interest on basis that 360 days 

equals one year" is deleted.

§ 329.0 [Amended]

3. In § 329.0, “ § § 329.7 and 329.8" is substituted for “ § 329.7".

4. In § 329.3 the heading, paragraph (a) and paragraph (e) are amended to 

read as follows:

§ 329.3 Interest on time and savings deposits.

(a) Maximum rate. Except as provided in this section, no insured nonmember bank shall, directly or indirectly, by any device whatsoever, pay interest on 

any time deposit or savings deposit at a rate in excess of such applicable 

maximum rate as the Board of Directors of the Federal Deposit Insurance Corporation shall prescribe from time to time in § 329.6 of this part. In determining the maximum amount of interest permitted to be paid, the effects of compounding may be disregarded.

* $ # # #

(e) Technical grace periods in computing interest on certain time deposits.

Where a time deposit matures in 30 days, 90 days, 180 days, 360 days, or 

even multiples of these periods, or where a time deposit matures in 1 month, 

3 months, 6 months, 12 months, or even multiples of these periods, insured 

nonmember banks may pay interest for such periods at one twelfth of the 

maximum rate, one quarter of the maximum rate, one half of the maximum 

rate, or at the maximum rate, or even multiples thereof, respectively. In the 

case of any other time deposit no insured nonmember bank shall pay interest 

at the maximum rate based on more days than the number of days the funds 

are actually on deposit.

$ $ $ $ #

§ 329.6 [Amended]

5. The last two sentences in § 329.6 are revoked.

§ 329.7 [Amended]

6. The last sentence of § 329.7(c) is revoked, and the first sentence is 

amended to read: “ In determining the maximum amount of interest or dividends permitted to be paid, the effects of compounding may be disregarded."

7. A new § 329.8 is added, as follows:

§ 329.8 Advertising of interest on deposits.

Every advertisement, announcement, or solicitation relating to the interest or 

dividends paid on deposits in insured nonmember banks (including insured 

nonmember mutual savings banks) shall be governed by the following rules:

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180 FEDERAL DEPOSIT INSURANCE CORPORATION

(a) Annual rate of simple interest. Interest or dividend rates shall be stated 

in terms of annual rates of simple interest or dividends. In no case shall a 

rate be advertised which is in excess of the applicable maximum rate for the 

particular deposit.

(b) Percentage yields based on 1 year. Where a percentage yield achieved 

by compounding interest during 1 year is advertised, the annual rate of simple 

interest shall be stated with equal prominence, together with a reference to 

the basis of compounding. No insured nonmember bank shall advertise a percentage yield based on the effect of grace periods permitted such banks in 

this part.

(c) Percentage yields based on periods in excess of 1 year. No advertisement shall include any indication of a total percentage yield, compounded or 

simple, based on a period in excess of a year, or an average annual percentage yield achieved by compounding during a period in excess of a year.

(d) Time or amount requirements. If an advertised rate is payable only on 

deposits that meet time or amount requirements, such requirements shall be 

clearly and conspicuously stated. Where the time requirement for an advertised 

rate is in excess of a year, the required number of years for the rate shall be 

stated with equal prominence, together with an indication of any lower rate or 

rates that will apply if the deposit is withdrawn at an earlier maturity.

(e) Profit. The term "profit” shall not be used in referring to interest or dividends paid on deposits.

(f) Accuracy of advertising. No insured nonmember bank shall make any 

advertisement, announcement or solicitation relating to the interest or dividends paid on deposits which is inaccurate or misleading or which misrepresents its deposit contracts.

(g) Solicitation of deposits for banks. Any person or organization which 

solicits deposits for an insured nonmember bank shall be bound by the rules 

contained in this section with respect to any advertisement, announcement or 

solicitation relating to such deposits. No such person or organization shall 

advertise a percentage yield on any deposit it solicits for an insured nonmember bank which is not authorized to be paid and advertised by such bank.

§ 329.101 [Revoked]

8. Section 329.101 is revoked.

[F.R. Doc. 69-7302; Filed, June 20, 1969; 8:45 a.m.]

TITLE 12— BANKS AND BANKING 

CHAPTER III— FEDERAL DEPOSIT INSURANCE CORPORATION

SUBCHAPTER B— REGULATIONS AND STATEMENT OF GENERAL POLICY 

PART 329— INTEREST ON DEPOSITS

1. Effective November 5, 1969, § 329.3(g) is amended to read as follows:

(g) Time deposits of foreign governmental entities and international organizations. Section 329.6 does not apply to the rate of interest that may be paid 

by an insured nonmember bank on a time deposit having a maturity of two 

years or less and representing funds deposited and owned by (1) a foreign 

government, or an agency or instrumentality thereof engaged principally in 

activities which are ordinarily performed in the United States by governmental

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RULES AND REGULATIONS OF THE CORPORATION 181

entities, (2) an international entity of which the United States is a member, or

(3) any other foreign, international or supranational entity specifically designated by the Board of Directors as exempt from § 329.6. All certificates of 

deposit issued by insured nonmember banks to such entities on which the 

contract rate of interest exceeds the maximum prescribed under § 329.6 shall 

provide that (i) in the event of transfer, the date of transfer, attested to in 

writing by the transferor, shall appear on the certificate, and (ii) the maximum 

rate limitations of § 329.6 in effect on the date of issuance of the certificate 

shall apply to the certificate for any period during which it is held by a person 

other than an entity exempt from § 329.6 under the foregoing sentence.n Upon 

the presentment of such a certificate for payment, the bank may pay the 

holder the contract rate of interest on the deposit for the time that the certificate was actually owned by an entity so exempt.

2. The present footnote 11 at the end of § 329.3(f) is redesignated as footnote 10.

# * * # *

[F.R. Doc. 69-13353; Filed, Nov. 7, 1969; 8:48 a.m.]

TITLE 12— BANKS AND BANKING 

CHAPTER III— FEDERAL DEPOSIT INSURANCE CORPORATION

INCREASE IN INSURANCE COVERAGE

Effective December 23, 1969, Parts 306, 308, 328, 330, and 331 of the 

rules and regulations of the Federal Deposit Insurance Corporation (12 CFR 

Parts 306, 308, 328, 330, and 331) are amended as follows:

PART 306— RECEIVERSHIPS AND LIQUIDATIONS

1. The fifth sentence of § 306.2 is amended by deleting the figure 

"$15,000” and by inserting the figure "$20,000” in lieu thereof.

2. The sixth sentence of § 306.2 is amended by deleting the figure 

“ $15,000” and by inserting the figure “ $20,000” in lieu thereof.

3. Footnote 1 to § 306.2 is amended by deleting the figure “ $15,000” and 

by inserting the figure “ $20,000” in lieu thereof.

PART 308— RULES OF PRACTICE AND PROCEDURES

4. The third paragraph of the notice of termination of insured status prescribed by § 308.26 is amended by deleting the figure “ $15,000” and by 

inserting the figure “ $20,000” in lieu thereof.

PART 328— ADVERTISEMENT OF MEMBERSHIP

5. The design of the official sign prescribed by § 328.1 is amended by deleting the figure “ $15,000” and by inserting the figure “ $20,000” in lieu thereof.

6. Subparagraph (11) of paragraph (c) of §328.2 is amended by deleting 

the figure “ $15,000” and by inserting the figure “ $20,000” in lieu thereof.

2 A new c e rtifica te not m a tu rin g p rio r to the m a tu rity date of the o rig ina l c e rtifica te

m ay be issued by the insured nonm em ber bank to the transferee, in w hich event the

o rig ina l m u st be retained by the bank. The new c e rtifica te m ay not provide fo r intere st

a fte r th e date o f tra n s fe r at a rate in excess o f the applicable m axim um rate authorized

by § 329.6 as o f the date o f issuance o f the o rig in a l ce rtificate .

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182 FEDERAL DEPOSIT INSURANCE CORPORATION

PART 330— CLARIFICATION AND DEFINITION OF DEPOSIT 

INSURANCE COVERAGE

7. Subparagraph (2) of paragraph (c) of § 330.1 is amended by deleting the 

figure “ $15,000" and by inserting the figure “ $20,000" in lieu thereof.

8. The first sentence of § 330.2 is amended by deleting the figure 

“ $15,000" and by inserting the figure “ $20,000" in lieu thereof.

9. Paragraph (a) of § 330.2 is amended by deleting the figure “ $15,000" 

and by inserting the figure “ $20,000" in lieu thereof.

10. Paragraph (b) of § 330.2 is amended by deleting the figure “ $15,000" 

and by inserting the figure “ $20,000" in lieu thereof.

11. Paragraph (c) of § 330.2 is amended by deleting the figure “ $15,000" 

and by inserting the figure “ $20,000" in lieu thereof.

12. Paragraph (a) of § 330.3 is amended by deleting the figure “ $15,000" 

and by inserting the figure “ $20,000" in lieu thereof.

13. Paragraph (b) of § 330.3 is amended by deleting the figure “ $15,000" 

and by inserting the figure “ $20,000" in lieu thereof.

14. Section 330.4 is amended by deleting the figure “ $15,000" and by 

inserting the figure “ $20,000" in lieu thereof.

15. The first sentence of § 330.5 is amended by deleting the figure 

“ $15,000" and by inserting the figure “ $20,000" in lieu thereof.

16. The second sentence of § 330.5 is amended by deleting the figure 

“ $15,000" and by inserting the figure “ $20,000" in lieu thereof.

17. The first sentence of § 330.6 is amended by deleting the figure 

“ $15,000" and by inserting the figure “ $20,000" in lieu thereof.

18. The second sentence of § 330.6 is amended by deleting the figure 

“ $15,000" and by inserting the figure “ $20,000" in lieu thereof.

19. The first sentence of paragraph (a) of § 330.8 is amended by deleting 

the figure “ $15,000" and by inserting the figure “ $20,000" in lieu thereof.

20. The second sentence of paragraph (a) of § 330.8 is amended by deleting the figure “ $15,000" and by inserting the figure “ $20,000" in lieu 

thereof.

21. The third sentence of paragraph (a) of § 330.8 is amended by deleting 

the figure “ $15,000" and by inserting the figure “ $20,000" in lieu thereof.

22. Paragraph (b) of § 330.8 is amended by deleting the figure “ $15,000" 

and by inserting the figure “ $20,000" in lieu thereof.

23. Paragraph (c) of § 330.9 is amended by deleting the figure “ $15,000" 

and by inserting the figure “ $20,000" in lieu thereof.

24. Paragraph (d) of § 330.9 is amended by deleting the figure “ $15,000" 

and by inserting the figure “ $20,000" in lieu thereof.

25. Paragraph (e) of § 330.9 is amended by deleting the figure “ $15,000" 

and by inserting the figure “ $20,000" in lieu thereof.

26. Section 330.10 is amended by deleting the figure “ $15,000" and by 

inserting the figure “ $20,000" in lieu thereof.

PART 331— INSURANCE OF TRUST FUNDS

27. Paragraph (d) of §331.1 is amended by deleting the figure “ $15,000" 

and by inserting the figure “ $20,000" in lieu thereof.

(Sec. 9, 65 Stat. 881; 12 U.S.C. 1819)

[F.R. Doc. 70-480; Filed, Jan. 13, 1970; 8:47 a.m.]

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RULES AND REGULATIONS OF THE CORPORATION 183

CHAPTER III— FEDERAL DEPOSIT INSURANCE CORPORATION

SUBCHAPTER B— REGULATIONS AND STATEMENTS OF GENERAL POLICY

PART 335— SECURITIES OF INSURED NONMEMBER STATE BANKS

Effective December 31, 1969, Part 335 of the Code of Federal Regulations is 

amended as follows:

1. Section 335.2 is amended to revise paragraph (z )(l), as set forth below: 

§ 335.2 Definitions.

* * * * *

(z) The term "significant subsidiary” means a subsidiary meeting either of 

the following conditions:

(1) The investments in the subsidiary by its parent plus the parent's proportion of the investments in such subsidiary by the parent’s other subsidiaries, if 

any, exceed 5 percent of the equity capital accounts of the bank. "Investments" refers to the amount carried on the books of the parent and other 

subsidiaries or the amount equivalent to the parent's proportionate share in 

the equity capital accounts of the subsidiary, whichever is greater.

* * * * *

2. Section 335.3 is amended to revise paragraph (b), as set forth below:

§ 335.3 Inspection and publication of information filed under the A ct

* * * * *

(b) Inspection. Except as provided in paragraph (c) of this section, all information filed regarding a security registered with the Corporation will be available for inspection at the Federal Deposit Insurance Corporation, 550 17th 

Street NW., Washington, D.C. In addition, copies of the registration statement 

and reports required by § 335.4 (exclusive of exhibits), the statements required 

by § 335.5(a), and the annual reports to security holders required by 

§ 335.5(c) will be available for inspection at the New York, Chicago, and San 

Francisco Federal Reserve Banks and at the Reserve bank of the district in 

which the bank filing the statements or reports is located.

* * * * *

3. Section 335.4 is amended to revise paragraphs (a), (e), (h), and (q )(l), 

as set forth below:

§ 335.4 Registration statements and reports.

(a) Requirement of registration statement. Securities of a bank shall be registered under the provisions of either section 12(b) or section 12(g) of the Act 

by filing a statement in conformity with the requirements of Form F -l (or 

Form F-10, in the case of registration of an additional class of securities). No 

registration shall be required under the provisions of section 12(b) or section 

12(g) of the Act of any warrant or certificate evidencing a right to subscribe to 

or otherwise acquire a security of a bank if such warrant or certificate by its 

terms expires within 90 days after the issuance thereof.

*****

(e) Requirement of annual reports. Every registrant bank shall file an 

annual report for each fiscal year after the last full fiscal year for which financial statements were filed with the registration statement. The report, which 

shall conform to the requirements of Form F-2, shall be filed within 90 days 

after the close of the fiscal year or within 30 days of the mailing of the bank's 

annual report to stockholders, whichever occurs first.

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184 FEDERAL DEPOSIT INSURANCE CORPORATION

(h) Quarterly reports. Every registrant bank shall file a quarterly report in 

conformity with the requirements of Form F—4 for each fiscal quarter ending 

after the close of the latest fiscal year for which financial statements were 

filed in a registration statement except that no report need be filed for the 

fiscal quarter which coincides with the end of the fiscal year of the bank. Such 

reports shall be filed not later than 30 days after the end of such quarterly 

period, except that the report for any period ending prior to the date on which 

a class of securities of the bank first becomes effectively registered may be 

filed not later than 30 days after the effective date of such registration.

# * * * *

(q) Number of copies; signatures; binding. (1) Except where otherwise provided in a particular form, six copies of each registration statement and report 

(including financial statements) and four copies of each exhibit and each other 

document filed as a part thereof, shall be filed with the Corporation. At least 

one complete copy of each statement shall be filed with each exchange, if any, 

on which the securities covered thereby are being registered. At least one copy 

of each report shall be filed with each exchange, if any, on which the bank has 

securities registered.

* * * ❖ ❖

4. Section 335.5 is amended to revise paragraphs (a), (c), (d) (2), (3), and

(4), and (f) (1) through (4); add paragraph (f) (9) and (10); revise paragraph

(h); and to add paragraph (o), as set forth below:

§ 335.5 Proxy statements and other solicitations under section 14 of the Act.

(a) Requirement of statement. No solicitation of a proxy with respect to a 

security of a bank registered pursuant to section 12 of the Act shall be made 

unless each person solicited is concurrently furnished or has previously been 

furnished with a written proxy statement containing the information required 

by Form F-5. If the management of any bank having such a security outstanding fails to solicit proxies from the holders of any such security in such a 

manner as to require the furnishing of such a proxy statement, such bank 

shall transmit to all holders of record of such security a statement containing 

the information required by Form F-5. The “ information statement” required 

by the preceding sentence shall be transmitted (1) at least 20 calendar days 

prior to any annual or other meeting of the holders of such security at which 

such holders are entitled to vote or (2) in the case of corporate action taken 

with the written authorization or consent of security holders, at least 20 days 

prior to the earliest date on which the corporate action may be taken. A proxy 

statement or a statement where management does not solicit proxies required 

by this paragraph is hereinafter sometimes referred to as a “ Statement".

❖ $ # * #

(c) Annual report to security holders to accompany statements. (1) Any 

statement furnished on behalf of the management of the bank that relates to 

an annual meeting of security holders at which directors are to be elected 

shall be accompanied or preceded by an annual report to such security holders 

containing such financial statements for the last 2 fiscal years as will, in the 

opinion of the management, adequately reflect the financial position of the 

bank at the end of each such year and the results of its operations for each 

such year. The financial statements included in the annual report may omit 

details or summarize information if such statements, considered as a whole in 

the light of other information contained in the report and in the light of the 

financial statements of the bank filed or to be filed with the Corporation, will 

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RULES AND REGULATIONS OF THE CORPORATION 185

entation or to make the financial statements not misleading under the circumstances. Subject to the foregoing requirements with respect to financial statements, the annual report to security holders may be in any form deemed 

suitable by the management. This paragraph (c) shall not apply, however, to 

solicitations made on behalf of management before the financial statements 

are available if solicitation is being made at the time in opposition to the management and if the management’s statement includes an undertaking in boldfaced type to furnish such annual report to all persons being solicited at least 

20 days before the date of the meeting.

Notes: 1. To reflect adequately the financial position and results of operations of a bank in its annual report to security holders, the financial presentation shall include, but not necessarily be limited to, the following:

(a) Comparative statements of condition at the end of each of the last 2 

fiscal years.

(b) Comparative statements of income in a form providing for the determination of “ net income” for each fiscal year and per share earnings data.

(c) Comparative statements of changes in capital accounts for each fiscal 

year, similar in form to Form F-9C.

(d) Comparative reconciliations of the “ Allowance fbr Possible Loan Losses" 

account and of the “ Reserve on Securities" account similar in form to Schedule VII and Schedule VIII, Form F-9D.

(e) Supplemental notes to financial statements to the extent necessary to 

furnish a fair financial presentation.

2. The financial statements should be prepared on a consolidated basis to 

the extent required by § 335.7(d). Any difference from the principles of consolidation or other accounting principles or practices, or methods of applying 

accounting principles or practices, applicable to the financial statements of the 

bank filed or to be filed with the Corporation, which have a material effect on 

the financial position or results of operations of the bank, shall be noted and 

the effect thereof reconciled or explained in the annual report to security holders.

3. When financial statements included in the annual report (Form F-2) filed, 

or proposed to be filed, with the Corporation are accompanied by an opinion 

of an independent public accountant, the financial statements in the annual 

report to security holders should also be accompanied by an opinion of such 

independent public accountant.

4. The requirement for sending an annual report to each person being solicited will be satisfied with respect to persons having the same address by sending at least one report to a holder of record at that address provided (i) that 

management has reasonable cause to believe that the record holder to whom 

the report is sent is the “ beneficial owner" (see definition in § 335.2(ff)) of 

securities registered in the name of such person in other capacities or in the 

name of other persons at such address or (ii) the security holders at such 

address consent thereto in writing. Nothing herein shall be deemed to relieve 

any person so consenting of any obligation to obtain or send such annual 

report to any other person.

(2) Six copies of each annual report sent to security holders pursuant to 

this paragraph (c) shall be sent to the Corporation not later than (i) the date 

on which such report is first sent or given to security holders or (ii) the date 

on which preliminary copies of the management statement are filed with the 

Corporation pursuant to paragraph (f) of this section, whichever date is later.

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Such annual report is not deemed to be “ soliciting material" or to be “ filed" 

with the Corporation or otherwise subject to this § 335.5 or the liabilities of 

section 18 of the Act, except to the extent that the bank specifically requests 

that it be treated as a part of the proxy soliciting material or incorporates it in 

the proxy statement by reference.

(d) Requirements as to proxy. * * *

(2) (i) Means shall be provided in the form of proxy whereby the person 

solicited is afforded an opportunity to specify by ballot a choice between 

approval or disapproval of each matter or group of related matters referred to 

therein as intended to be acted upon, other than elections to office. A proxy 

may confer discretionary authority with respect to matters as to which a 

choice is not so specified if the form of proxy states in bold-faced type how 

the shares represented by the proxy are intended to be voted in each such 

case.

(ii) A form of proxy which provides both for the election of directors and 

for action on other specified matters shall be prepared so as clearly to provide, by a box or otherwise, means by which the security holder may withhold 

authority to vote for the election of directors. Any such form of proxy which is 

executed by the security holder in such manner as not to withhold authority to 

vote for the election of directors shall be deemed to grant such authority, provided the form of proxy so states in bold-faced type.

Instruction. Subparagraph (2) (ii) of this paragraph does not apply (a) in 

the case of a merger, consolidation or other plan if the election of directors is 

an integral part of the plan and is not to be separately voted upon or (b) if 

the only matters to be acted upon are the election of directors and the election, selection or approval of other persons such as clerks or auditors.

(3) A proxy may confer discretionary authority to vote with respect to any 

of the following matters:

(i) Matters which the persons making the solicitation do not know, a reasonable time before the solicitation, are to be presented at the meeting, if a 

specific statement to that effect is made in the proxy statement or form of 

proxy;

(ii) Approval of the minutes of the prior meeting if such approval does not 

amount to ratification of the action taken at that meeting;

(iii) The election of any person to any office for which a bona fide nominee 

is named in the proxy statement and such nominee is subsequently unable to 

serve or for good cause refuses to serve;

(iv) Any proposal omitted from the proxy statement and form of proxy pursuant to paragraph (k) of this section;

(v) Matters incident to the conduct of the meeting.

(4) No proxy shall confer authority (i) to vote for the election of any person 

to any office for which a bona fide nominee is not named in the proxy statement, or (ii) to vote at any annual meeting other than the next annual meeting (or any adjournment thereof) to be held after the date on which the proxy 

statement and form of proxy are first sent or given to security holders. A 

person shall not be deemed to be a bona fide nominee and he shall not be 

named as such unless he has consented to being named in the proxy statement and to serve if elected.

(f) Material required to be filed. (1) Three preliminary copies of each Statement, form of proxy, and other item of soliciting material to be furnished to

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RULES AND REGULATIONS OF THE CORPORATION 187

security holders concurrently therewith, shall be filed with the Corporation by 

management or any other person making a solicitation subject to this § 335.5 

at least 10 calendar days (or 15 calendar days in the case of other than routine meetings, as defined below) prior to the date such item is first sent or 

given to any security holders, or such shorter period prior to that date as may 

be authorized. For the purposes of this subparagraph ( l ) f a routine meeting 

means a meeting with respect to which no one is soliciting proxies subject to 

this § 335.5 other than on behalf of management and at which management 

intends to present no matters other than the election of directors, election of 

inspectors of election, and other recurring matters. In the absence of actual 

knowledge to the contrary, management may assume that no other such solicitation of the bank's security holders is being made. In cases of annual meetings, one additional preliminary copy of the statement, the form of proxy, and 

any other soliciting material, marked to show changes from the material sent 

or given to security holders with respect to the preceding annual meeting, 

shall be filed with the Corporation.

(2) Three preliminary copies of any additional soliciting material relating to 

the same meeting or subject matter, furnished to security holders subsequent 

to the proxy statement shall be filed with the Corporation at least 2 days 

(exclusive of Saturdays, Sundays, and holidays) prior to the date copies of 

such material are first sent or given to security holders, or such shorter period 

prior to such date as may be authorized upon a showing of good cause therefor.

(3) Six copies of each Statement, form of proxy, and other item of soliciting 

material, in the form in which such material is furnished to security holders, 

shall be filed with, or mailed for filing to, the Corporation not later than the 

date such material is first sent or given to any security holders. Three copies 

of such material shall at the same time be filed with, or mailed for filing to, 

each exchange upon which any security of the bank is listed.

(4) If the solicitation is to be made in whole or in part by personal solicitation, three copies of all written instructions or other material that discusses or 

reviews, or comments upon the merits of, any matter to be acted upon and is 

furnished to the individuals making the actual solicitation for their use directly 

or indirectly in connection with the solicitation shall be filed with the Corporation by the person on whose behalf the solicitation is made at least 5 days 

prior to the date copies of such material are first sent or given to such individuals, or such shorter period prior to that date as may be authorized upon a 

showing of good cause therefor.

* iif * * #

(9) The date that proxy material is “ filed" with the Corporation for purposes of subparagraphs (1), (2), and (4) of this paragraph is the date of 

receipt by the Corporation, not the date of mailing to the Corporation. In computing the advance filing period for preliminary copies of proxy soliciting material referred to in such subparagraphs, the filing date of the preliminary material is to be counted as the first day of the period and definitive material 

should not be planned to be mailed or distributed to security holders until 

after the expiration of such period. Where additional time is required for final 

printing after receipt of comments, the preliminary proxy material should be 

filed as early as possible prior to the intended mailing date.

(10) Where preliminary copies of material are filed with the Corporation pursuant to this paragraph, the printing of definitive copies for distribution to

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188 FEDERAL DEPOSIT INSURANCE CORPORATION

security holders should be deferred until the comments of the Corporation's 

staff have been received and considered.

$ $ $ « $

(h) False or misleading statements. (1) No solicitation or communication 

subject to this section shall be made by means of any statement, form of 

proxy, notice of meeting, or other communication, written or oral, containing 

any statement that, at the time and in the light of the circumstances under 

which it is made, is false or misleading with respect to any material fact, or 

that omits to state any material fact necessary in order to make the statements therein not false or misleading or necessary to correct any statement in 

any earlier communication with respect to the solicitation of a proxy for the 

same meeting or subject matter that has become false or misleading. Depending upon particular circumstances, the following may be misleading within the 

meaning of this paragraph: Predictions as to specific future market values, 

earnings, or dividends; material that directly or indirectly impugns character, 

integrity, or personal reputation, or directly or indirectly makes charges concerning improper, illegal, or immoral conduct or associations, without factual 

foundation; failure so to identify a statement, form of proxy, and other soliciting material as clearly to distinguish it from the soliciting material of any 

other person or persons soliciting for the same meeting or subject matter; 

claims made prior to a meeting regarding the results of a solicitation.

(2) The fact that a proxy statement, form of proxy, or other soliciting material has been filed with or reviewed by the Corporation or its staff shall not be 

deemed a finding by the Corporation that such material is accurate or complete or not false or misleading, or that the Corporation has passed upon the 

merits of or approved any statement therein or any matter to be acted upon 

by security holders. No representation contrary to the foregoing shall be made. 

$ >;« i’f

(o) Solicitation prior to furnishing required proxy statement. (1) Notwithstanding the provisions of paragraph (a) of this section, a solicitation (other 

than one subject to paragraph (i) of this section) may be made prior to furnishing security holders a written proxy statement containing the information 

specified in Form F-5 with respect to such solicitation if—

(i) The solicitation is made in opposition to a prior solicitation or an invitation for tenders or other publicized activity, which if successful, could reasonably have the effect of defeating the action proposed to be taken at the meeting;

(ii) No form of proxy is furnished to security holders prior to the time the 

written proxy statement required by paragraph (a) of this section is furnished 

to security holders: Provided, however, That this subdivision (ii) shall not apply 

where a proxy statement then meeting the requirements of Form F-5 has been 

furnished to security holders by or on behalf of the person making the solicitation;

(iii) The identity of the person or persons by or on whose behalf the solicitation is made and a description of their interests direct or indirect, by security holdings or otherwise, are set forth in each communication sent or given 

to security holders in connection with the solicitation; and

(iv) A written proxy statement meeting the requirements of this section is 

sent or given to security holders at the earliest practicable date.

(2) Three copies of any soliciting material proposed to be sent or given to 

security holders prior to the furnishing of the written proxy statement required

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RULES AND REGULATIONS OF THE CORPORATION 189

by paragraph (a) of this section shall be filed with the Corporation in preliminary form at least 5 business days prior to the date definitive copies of such 

material are first sent or given to security holders, or such shorter period as 

the Corporation may authorize upon a showing of good cause therefor.

5. Section 335.7 is amended to revise the introductory texts of subparagraphs (9) and (10) of paragraph (c) and subparagraph (2) of paragraph (f), 

as set forth below:

§ 335.7 Form and content of financial statements.

* t'fi * ❖ *

(c)

(9) General notes to balance sheets. If present with respect to the person 

for which the statement is filed, the following shall be set forth in the balance 

sheet or in referenced notes thereto:

Sl<

(10) General notes to statements of income. If present with respect to the 

person for which the statement is filed, the following shall be set forth in the 

statement of income or in referenced notes thereto:

V V V v ^

(f) Schedules to be filed. (1) The following schedules shall be filed with 

each balance sheet filed pursuant to this part: Schedule I— U.S. Treasury 

Securities, Securities of Other U.S. Government Agencies and Corporations, 

and Obligations of States and Political Subdivisions; Schedule II— Other Securities; Schedule III— Other Loans; Schedule IV— Bank Premises and Equipment; 

Schedule V— Investments in, Income from Dividends, and Equity in Earnings 

and Loss of Unconsolidated Subsidiaries; and Schedule VI— Other Liabilities 

for Borrowed Money.

(2) The following schedules shall be filed with each statement of income filed 

pursuant to this part: Schedule VII— Allowance for Possible Loan Losses and 

Schedule VIII— Reserves on Securities.

* * *:« * *

6. Section 335.42 is amended to revise paragraphs (1) and (2) of the 

Instructions As To Financial Statements, as set forth below:

§ 335.42 Form for annual report of bank (Form F-2).

sjc * * * *

Instructions As To Financial Statements

* $ * * #

1. Financial statements of the bank.

(a) There shall be filed for the bank, in comparative columnar form, verified 

balance sheets as of the close of the last 2 fiscal years and verified statements of income for such fiscal years.

* * $ * *

2. Consolidated statements.

There shall be filed for the bank and its majority-owned (i) bank premises 

subsidiaries, (ii) subsidiaries doing a foreign banking business, and (iii) significant subsidiaries, in comparative columnar form, verified consolidated balance 

sheets as of the close of the last 2 fiscal years of the bank and verified consolidated statements of income for such fiscal years.

$ # # ❖ *

7. Section 335.44 is amended to revise Form F-4, as set forth below:

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190 FEDERAL DEPOSIT INSURANCE CORPORATION

§ 335.44 Form for quarterly report of bank (Form F-4).

Federal D eposit Insurance C orporation

Form F -4

Q uarterly Report of—

(Nam e of Bank)

(C ity and State)

Item

3 m onths ending . . .

Fiscal year to date

(. . . .m o n th s

ending .................)

19. .

(cu rren t

year)

19. .

(p rio r

year)

19. .

(cu rren t

year)

19. .

(p rio r

year)

1. O perating incom e:

(a) In te re st and fees on loans ............

(b) In te re st and dividends on se curities

(c) O ther o pe ra tin g incom e ...................

(d) Total ope ra tin g incom e ......................

2. O perating expenses:

(a) Salaries and other com pensation . .

(b) Interest expense ..................................

(c) O ther o perating expenses ...............

(d) Total o perating expenses .................

3. Incom e before incom e taxes and

se curitie s gains (losses) ......................

4. A pplicable incom e taxes ...........................

5. Incom e before securities gains (losses)

6. Net security gains (losses), less related

tax effect ...................................................

7. Net incom e .....................................................

Pursuant to the requirements of the Securities Exchange Act of 1934, the 

bank has duly caused this quarterly report to be signed on its behalf by the 

undersigned, thereunto duly authorized.

(Name of Bank)

By .....................................................................................................

(Name and title of signing officer)

Date ........................................................

A. Use of Form F-4.

Form F—4 is a guide for use in preparation of the quarterly report to be 

filed with the Corporation.

B. Persons for Whom the Information Is To Be Given.

The required information is to be given as to the registrant bank or, if the 

bank files consolidated financial statements with the annual reports filed with 

the Corporation it shall cover the bank and its consolidated subsidiaries. If the 

information is given as to the bank and its consolidated subsidiaries, it need 

not be given separately for the bank.

C. Presentation of Information.

The form calls only for the items of information specified. It is not necessary to furnish a formal statement of income. The information is not required 

to be verified (see § 335.7(b)). The report may carry a notation to that effect 

and any other qualification considered necessary or appropriate. Amounts may 

be stated in thousands of dollars if a notation to that effect is made.

D. Incorporation by Reference to Published Statements.

If the bank makes available to its stockholders or otherwise publishes, 

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RULES AND REGULATIONS OF THE CORPORATION 191

ing the information required by this form, such information may be incorporated by reference to such published statement if copies thereof are filed as 

an exhibit to this report.

E. Extraordinary Items.

If present with respect to any interim period reported herein, extraordinary 

items less applicable income tax effect shall be appropriately segregated and 

included in the determination of net income. (See Form F-9B, Statement of 

Income.)

8. A new § 335.46 is added, as set forth below:

§ 335.46 Form for registration of additional class of securities of a bank pursuant to section 12(b) or section 12(g) of the Securities Exchange Act of

1934 (Form F-10).

Form F-10— Registration Statement for Additional Classes of Securities of a 

Bank

Pursuant to section 12(b) or section 12(g) of the Securities Exchange Act of 

1934

(Exact name of bank as specified in charter)

(Address of principal office)

Securities being registered pursuant to section 12(b) of the Act:

Name of each exchange

on which class is being

Title of class registered

Title of each class of equity securities being registered pursuant to section 

12(g) of the Act:

General Instructions

1. Applicability of This Form.

This form may be used for registration of the following securities pursuant 

to the Securities Exchange Act of 1934:

(a) For registration pursuant to section 12(g) of the Act of any class of 

equity securities of a bank which has one or more other classes of securities 

registered pursuant to either section 12(b) or (g) of the Act.

(b) For registration on a national securities exchange pursuant to section 

12(b) of the Act of any class of securities of a bank which has one or more 

other classes of securities so registered on the same securities exchange.

2. Preparation of Registration Statement

This form is not to be used as a blank form to be filled in but only as a 

guide in the preparation of a registration statement. Particular attention should 

be given to the general requirements in § 335.4 of Part 335. The statement 

shall contain the numbers and captions of all items, but the text of the items 

may be omitted if the answers with respect thereto are prepared in the 

manner specified in § 335.4(s).

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192 FEDERAL DEPOSIT INSURANCE CORPORATION

Information Required in Registration 

Statement

Item 1— Stock To Be Registered.

If stock is being registered, state the title of the class and furnish the following information (see Instruction 1):

(a) Outline briefly (1) dividend rights; (2) voting rights; (3) liquidation 

rights; (4) preemptive rights; (5) conversion rights; (6) redemption provisions;

(7) sinking fund provisions; and (8) liability to further calls or to assessment.

(b) If the rights of holders of such stock may be modified otherwise than by 

a vote of a majority or more of the shares outstanding, voting as a class, so 

state and explain briefly.

(c) Outline briefly any restriction on the repurchase or redemption of shares 

by the bank while there is any arrearage in the payment of dividends or sinking fund installments. If there is no such restriction, so state.

Instructions. 1. If a description of the securities comparable to that 

required here is contained in any other document filed with the corporation, 

such description may be incorporated by reference to such other filing in 

answer to this item. If the securities are to be registered on a national securities exchange and the description has not previously been filed with such 

exchange, copies of the description shall be filed with copies of the registration statement filed with the exchange.

2. This item requires only a brief summary of the provisions which are pertinent from an investment standpoint. A complete legal description of the provisions referred to is not required and should not be given. Do not set forth 

the provisions of the governing instruments verbatim; only a succinct resume 

is required.

3. If the rights evidenced by the securities to be registered are materially 

limited or qualified by the rights evidenced by any other class of securities or 

by the provisions of any contract or other document, include such information 

regarding such limitation or qualification as will enable investors to understand 

the rights evidenced by the securities to be registered.

Item 2— Debt Securities To Be Registered.

If the securities to be registered hereunder are bonds, debentures or other 

evidences of indebtedness, outline briefly such of the following as are relevant 

(see Instruction 2 below):

(a) Provisions with respect to interest, conversion, maturity, redemption, 

amortization, sinking fund, or retirement.

(b) Provisions with respect to the kind and priority of any lien, securing the 

issue, together with a brief identification of the principal properties subject to 

such lien.

(c) Provisions restricting the declaration of dividends or requiring the maintenance of any ratio of assets, the creation or maintenance of reserves or the 

maintenance of properties.

(d) Provisions permitting or restricting the issuance of additional securities, 

the withdrawal of cash deposited against such issuance, the incurring of additional debt, the release or substitution of assets securing the issue, the modification of the terms of the security, and similar provisions.

Instruction 1. Provisions permitting the release of assets upon the deposit 

of equivalent funds or the pledge of equivalent property, the release of property

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RULES AND REGULATIONS OF THE CORPORATION 193

no longer required in the business, obsolete property or property taken by 

eminent domain, the application of insurance moneys, and similar provisions, 

need not be described.

(e) The name of the trustee and the nature of any material relationship 

with the bank or any of its affiliates; the percentage of securities of the class 

necessary to require the trustee to take action; and what indemnification the 

trustee may require before proceeding to enforce the lien.

(f) The general type of event which constitutes a default and whether or not 

any periodic evidence is required to be furnished as to the absence of default 

or as to compliance with the terms of the indenture.

Instruction 2. In most cases, debt securities issued by banks need not be 

registered pursuant to section 12(g) of the Securities Exchange Act; the registration requirements of that section apply only to an "equity security". The 

term “ equity security" is defined by section 3 (a )(ll) of the Act to mean “ any 

stock or similar security; or any security convertible, with or without consideration, into such a security; or carrying any warrant or right to subscribe to or 

purchase such a security; or any such warrant or right; or any other security 

which the Corporation shall deem to be of similar nature and consider necessary or appropriate, by such rules and regulations as it may prescribe in the 

public interest or for the protection of investors, to treat as an equity security."

Instruction 3. The instructions to Item 1 also apply to this item.

Item 3— Other Securities To Be Registered.

If securities other than those referred to in Items 1 and 2 are to be registered hereunder, outline briefly the rights evidenced thereby. If subscription 

warrants or rights are to be registered, state the title and amount of securities 

called for, and the period during which and the price at which the warrants or 

rights are exercisable.

Instruction. The instructions to Item 1 also apply to this item.

Item 4— Exhibits.

List all exhibits filed as a part of the registration statement.

Signature

Pursuant to the requirements of the Securities Exchange Act of 1934, the 

bank has duly caused this registration statement to be signed on its behalf by 

the undersigned, thereunto duly authorized.

Date ........................................................................................

(Name of Bank)

By ...................................................................................

(Name and title of signing officer)

Instructions As To Exhibits

Subject to § 335.4(o) of Part 335 regarding the incorporation of exhibits by 

reference, the exhibits enumerated hereinafter shall be filed as a part of 

the registration statement. Exhibits shall be appropriately lettered or numbered 

for convenient reference. Exhibits incorporated by reference may bear the designation given in the previous filing. Where exhibits are incorporated by reference, the reference shall be made in the list of exhibits in Item 4.

1. Specimens or copies of each security to be registered hereunder.

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194 FEDERAL DEPOSIT INSURANCE CORPORATION

2. Copies of all constituent instruments defining the rights of the holders of 

each class of such securities, including any contracts or other documents 

which limit or qualify the rights of such holders.

§ 335.51 [Amended]

9. Section 335.51 is amended as follows:

Item 2— Dissenters' Rights of Appraisal.

Outline briefly the rights of appraisal or similar rights of dissenters with 

respect to any matter to be acted upon and indicate any statutory procedure 

required to be followed by dissenting security holders in order to perfect such 

rights. Where such rights may be exercised only within a limited time after the 

date of the adoption of a proposal, the filing of a charter amendment or other 

similar act, state whether the person solicited will be notified of such date.

Instruction. Indicate whether a security holder's failure to vote against a 

proposal will constitute a waiver of his appraisal or similar rights and whether 

a vote against a proposal will be deemed to satisfy any notice requirements 

under State law with respect to appraisal rights. If the State law is unclear, 

state what position will be taken in regard to those matters.

Item 5— Voting Securities and Principal Holders Thereof.

* * >:< >;« >:<

(d) If to the knowledge of the persons on whose behalf the solicitation is 

made, any person and his associates owns of record or beneficially more than 

10 percent of the outstanding voting securities of the bank, name such person 

or persons, state the approximate amount of such securities owned of record 

but not owned beneficially, and the approximate amount owned beneficially, 

and the percentage of outstanding voting securities represented by the amount 

of securities so owned in each such manner.

* $ * >'f *

Item 6— Nominees and Directors.

i’fi »;« »;« >:« #

(4) State, as of the most recent practicable date, the approximate amount 

of each class of equity securities of the bank, or any of its parents or subsidiaries, "beneficially owned" (as defined in § 335.2(ff)) directly or indirectly by 

him. If he disclaims beneficial ownership of any such securities, make a statement to that effect.

(5) [De/eted]

* $ * $ *

(c) If fewer nominees are named than the number fixed by or pursuant to 

the governing instruments, state the reasons for this procedure and that the 

proxies cannot be voted for a greater number of persons than the number of 

nominees named.

Item 7— Remuneration and Other Transactions With Management and

Others.

# 5jC ifc SjC SfS

(a) Furnish the following information in substantially the tabular form indicated below as to all direct remuneration paid by the bank and its subsidiaries 

during the bank's latest fiscal year to the following persons for services in all 

capacities:

(1) Each director of the bank whose aggregate direct remuneration 

exceeded $30,000, and each of the two highest paid officers of the bank

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RULES AND REGULATIONS OF THE CORPORATION 195

whose aggregate direct remuneration exceeded that amount, naming each such 

director and officer.

i'fi $ $

(b) * * *

Instructions. * * *

3. In the case of any plan (other than those specified in Instruction 1) 

where the amount set aside each year depends upon the amount of earnings 

or profits of the bank or its subsidiaries for such year or a prior year (or 

where otherwise impracticable to state the estimated annual benefits upon 

retirement) there shall be set forth, in lieu of the information called by 

Column (C), the aggregate amount set aside or accrued to date, unless 

impracticable to do so, in which case the method of computing such benefits 

shall be stated. In addition, furnish a brief description of the material terms of 

the plan, including the method used in computing the bank's contribution, and 

the amount set aside or accrued during the bank's last fiscal year for all 

officers and directors as a group, indicating the number of persons in such 

group without naming them.

❖ * * * ❖

(d) Furnish the following information as to all options to purchase securities, from the bank or any of its subsidiaries, which were granted to or exercised by the following persons since the beginning of the bank's last fiscal 

year and as to all options held by such persons as of the latest practicable 

date: (i) Each director or officer named in answer to paragraph (a)(1), naming 

each such person; and (ii) all directors and officers of the bank as a group, 

without naming them:

(1) As to options granted, state (i) the title and amount of securities called 

for; (ii) the prices, expiration dates, and other material provisions; and (iii) the 

market value of the securities called for on the granting date.

(2) As to options exercised, state (i) the title and amount of securities purchased; (ii) the aggregate purchase price; and (iii) the aggregate market value 

of the securities purchased on the date of purchase.

(3) As to all unexercised options held as of the latest practicable date, 

regardless of when such options were granted, state (i) the title and aggregate 

amount of securities called for; (ii) the average option price per share; and

(iii) the per share market price of the securities subject to the option, as of 

the latest practicable date.

Instructions. 1. The extension, regranting, or material amendment of 

options shall be deemed the granting of options within the meaning of this 

paragraph.

2. This item need not be answered with respect to options granted, exercised, or outstanding, as may be specified therein, where the total market 

value (i) on the granting date of the securities called for by all options granted 

during the period specified; (ii) on the dates of purchase of all securities purchased through the exercise of options during the period specified; or (iii) as 

of the latest practicable date of the securities called for by all options held at 

such time, does not exceed $10,000 for any officer or director named in 

answer to paragraph (a)(1), or $30,000 for all officers and directors as a 

group.

* * * * *

(e) If to the knowledge of management any indebtedness to the bank has 

arisen since the beginning of the bank's last fiscal year under section 16(b) of

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196 FEDERAL DEPOSIT INSURANCE CORPORATION

the Securities Exchange Act of 1934, as a result of transactions in the bank's 

stock (or other equity securities) by any director, officer, or security holder 

named in answer to Item 5(d), which indebtedness has not been discharged by 

payment, state the amount of any profit realized and whether suit will be 

brought or other steps taken to recover such profit. If, in the opinion of counsel, a question reasonably exists as to the recoverability of such profit, only 

facts necessary to describe the transactions, including the prices and number 

of shares involved, need be stated.

(fj * * *

Instructions. * * *

(5) * * *

(iii) The specified person is subject to this Item 7(f) solely as a director of 

the bank (or associate of a director) and his interest in the transaction is 

solely that of a director, officer of, and/or owner of less than 10 percent interest in, another person that is a party to the transaction.

(iv) The transaction consists of extensions of credit by the bank in the ordinary course of its business that (A) are made on substantially the same terms, 

including interest rates and collateral, as those prevailing at the time for comparable transactions with other than specified persons, (B) at no time exceed 

10 percent of the equity capital accounts of the bank, or $10 million, whichever 

is less, and (C) do not involve more than the normal risk of collectibility or 

present other unfavorable features. Notwithstanding the foregoing, if aggregate 

extensions of credit to the specified persons, as a group, exceeded 20 percent 

of the equity capital accounts of the bank at any time during the preceding 

year, (1) the aggregate amount of such extensions of credit shall be disclosed, 

and (2) a statement shall be included, to the extent applicable, that the bank 

has had, and expects to have in the future, banking transactions in the ordinary course of its business with directors, officers, principal stockholders, and 

their associates, on the same terms, including interest rates and collateral on 

loans, as those prevailing at the same time for comparable transactions with 

others. For the purpose of determining "aggregate extensions of credit" in this 

instruction, transactions which are exempted from disclosure pursuant to other 

instructions to this item may be excluded.

Item 9— Bonus, Profit Sharing, and Other Remuneration Plans. If action is 

to be taken with respect to any bonus, profit sharing, or other remuneration 

plan, furnish the following information:

* * * * *

(d) Furnish such information, in addition to that required by this item and 

Item 7, as may be necessary to describe adequately the provisions already 

made pursuant to all bonus, profit sharing, pension, retirement, stock option, 

stock purchase, deferred compensation, or other remuneration or incentive 

plans, now in effect or in effect within the past 2 years, for (i) each director or 

officer named in answer to Item 7(a) who may participate in the plan to be 

acted upon; (ii) all directors and officers of the bank as a group, if any director or officer may participate in the plan; and (iii) all employees, if employees 

may participate in the plan.

*****

(f) If action is to be taken with respect to the amendment or modification 

of an existing plan, the item shall be answered with respect to the plan as 

proposed to be amended or modified and shall indicate any material differences from the existing plan.

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Instruction. * * *

Item 10— Pension and Retirement Plans.

If action is to be taken with respect to any pension or retirement plan, furnish the following information:

;I; * & * ❖

(d) Furnish such information, in addition to that required by this item and 

Item 7, as may be necessary to describe adequately the provisions already 

made pursuant to all bonus, profit sharing, pension, retirement, stock option, 

stock purchase, deferred compensation, or other remuneration or incentive 

plans, now in effect or in effect within the past two years, for (i) each director 

or officer named in answer to Item 7(a) who may participate in the plan to be 

acted upon; (ii) all directors and officers of the bank as a group, if any director or officer may participate in the plan; and (iii) all employees, if employees 

may participate in the plan.

* * ❖ ❖ #

(f) If action is to be taken with respect to the amendment or modification 

of an existing plan, the item shall be answered with respect to the plan as 

proposed to be amended or modified and shall indicate any material differences from the existing plan.

Instructions. * * *

Item 11— Options, Warrants, or Rights.

If action is to be taken with respect to the granting or extension of any 

options, warrants, or rights to purchase securities of the bank or any subsidiary, furnish the following information:

(a) State (i) the title and amount of securities called for or to be called for 

by such options, warrants or rights; (ii) the prices, expiration dates and other 

material conditions upon which the options, warrants or rights may be exercised; and (iii) in the case of options, the Federal income tax consequences of 

the issuance and exercise of such options to the recipient and to the bank.

* * i'fi jje *

(c) Furnish such information, in addition to that required by this item and 

Item 7 as may be necessary to describe adequately the provisions already 

made pursuant to all bonus, profit sharing, pension, retirement, stock option, 

stock purchase, deferred compensation, or other remuneration or incentive 

plans for (i) each director or officer named in answer to Item 7(a) who may 

participate in the plan to be acted upon; (ii) all directors and officers of the 

bank as a group, if any director or officer may participate in the plan; and (iii) 

all employees, if employees may participate in the plan.

Instructions. 1. Paragraphs (b) and (c) do not apply to warrants or rights to 

be issued to security holders as such on a pro rata basis.

2. The instruction to Item 9 shall apply to paragraph (c) of this item.

3. Include in the answer to paragraph (c) as to each director or officer 

named in answer to Item 7(a) and as to all directors and officers as a group

(i) the amount of securities acquired during the past 2 years through the exercise of options granted during the period or prior thereto; (ii) the amount of 

securities sold during such period of the same class as those acquired through 

the exercise of such options; and (iii) the amount of securities subject to all 

unexercised options held as of the latest practicable date.

Item 12— Authorization or Issuance of Securities Otherwise than for

Exchange.

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198 FEDERAL DEPOSIT INSURANCE CORPORATION

If action is to be taken with respect to the authorization or issuance of any 

securities otherwise than in exchange for outstanding securities of the bank 

furnish the following information:

* * * * *

(b) Furnish a description of the material provisions of the securities such as 

would be required in a registration statement filed pursuant to this part. If 

the terms of the securities cannot be stated or estimated with respect to any 

or all of the securities to be authorized, because no offering thereof is contemplated in the proximate future, and if no further authorization by security holders for the issuance thereof is to be obtained, it should be stated that the 

terms of the securities to be authorized, including dividend or interest rates, 

conversion prices, voting rights, redemption prices, maturity dates, and similar 

matters will be determined by the Board of Directors. If the securities are 

additional shares of common stock of a class outstanding, the description may 

be omitted.

(c) Describe briefly the transaction in which the securities are to be issued, 

including a statement as to (1) the nature and approximate amount of consideration received or to be received by the bank, and (2) the approximate 

amount devoted to each purpose so far as determinable, for which the net 

proceeds have been or are to be used. If it is impracticable to describe the 

transaction in which the securities are to be issued, indicate the purpose of 

the authorization of the securities, and state whether further authorization for 

the issuance of the securities by a vote of security holders will be solicited 

prior to such issuance and whether present security holders will have preemptive rights to purchase such securities.

(d) [Deleted]

Item 13— Modification or Exchange of Securities.

*****

(c) State the reasons for the proposed modification or exchange, and the 

general effect thereof upon the rights of existing security holders.

*****

Item 14— Mergers, Consolidations, Acquisitions, and Similar Matters.

If action is to be taken with respect to any plan for (i) the merger or consolidation of the bank into or with any other person or of any other person 

into or with the bank; (ii) the acquisition by the bank or any of its subsidiaries 

of securities of another bank; (iii) the acquisition by the bank of any other 

going business or of the assets thereof; (iv) the sale or other transfer of all or 

any substantial part of the assets of the bank; or (v) the voluntary liquidation 

or dissolution of the bank:

(a) Outline briefly the material features of the plan. State the reasons therefor and the general effect thereof upon the interests of existing security holders. If the plan is set forth in a written document, file three copies thereof 

with the Corporation when preliminary copies of the Statement are filed pursuant to § 335.5(f).

(b) Furnish the following information as to the bank and each person (other 

than subsidiaries substantially all of the stock of which are owned by the 

bank) which is to be merged into the bank or into or with which the bank is 

to be merged or consolidated or the business or assets of which are to be 

acquired or which is the issuer of securities to be acquired by the bank or any 

of its subsidiaries in exchange for all or a substantial part of its assets:

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(1) A brief description of the business and property of each such person in 

substantially the manner described in Items 3 and 4 of Form F -l.

(2) A brief statement as to defaults in principal or interest in respect of any 

securities of the bank or of such person, and as to the effect of the plan 

thereon and such other information as may be appropriate in the particular 

case to disclose adequately the nature and effect of the proposed action.

(3) Such information with respect to the proposed management of the surviving bank as would be required by Items 6 and 7 of this Form F-5. Information concerning remuneration of management may be projected for the current 

year based on remuneration actually paid or accrued by each of the constituent persons during the last calendar year. If significantly different, proposed 

compensation arrangements should also be described.

(4) A tabular presentation of the existing and pro forma capitalization.

(5) In columnar form, for each of the last 3 fiscal years, a historical summary of earnings. Such summary to be concluded by indicating per share 

amounts of income before securities gains (losses), net income, and dividends 

declared for each period reported. (Extraordinary items, if any, should be 

appropriately reported and per share amounts of securities gains (losses) may 

be included.)

(6) In columnar form, for each of the last 3 fiscal years, a combined pro 

forma summary of earnings, as appropriate in the circumstances, similar in 

structure to the historical summary of earnings. If the transaction establishes 

a new basis of accounting for assets of any of the persons included therein, 

the pro forma summary of earnings shall be furnished only for the most 

recent fiscal year and interim period and shall reflect appropriate pro forma 

adjustments resulting from such new basis of accounting.

(7) A tabular presentation of comparative per share data of the constituent 

banks or other persons pertaining to:

(A) (i) Income before securities gains (losses); (ii) net income; and (iii) dividends declared, for each of the last 3 fiscal years; and

(B) Book value per share, at the date of the balance sheets included in the 

statement.

The comparative per share data shall be presented on a historical and pro 

forma basis (except dividends which are to be furnished on historical basis 

only) and equated to a common basis in exchange transactions.

(8) To the extent material for the exercise of prudent judgment, the historical and pro forma earnings data specified in (5), (6), and (7) above for the 

latest available interim period of the current and prior fiscal years.

Instructions. 1. Historical statements of income in their entirety, as required 

by Item 15, may be furnished in lieu of the summary of earnings specified in 

paragraph 5. If summary earnings information is presented, show, as a minimum, operating revenues, operating expenses, income before income taxes 

and security gains (losses), applicable income taxes, income before securities 

gains (losses), securities gains (losses), and net income. The summary shall 

reflect retroactive adjustments of any material items affecting the comparability of the results.

2. In connection with any interim period or periods between the end of the 

last fiscal year and the balance sheet date, and any comparable prior period, a 

statement shall be made that all adjustments necessary to a fair statement of 

the results for such interim period or periods have been included, and results 

of the interim period for the current year are not necessarily indicative of

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results for the entire year. In addition, there shall be furnished in such cases, 

as supplemental information but not as a part of the proxy statement, a letter 

describing in detail the nature and amount of any adjustments, other than 

normal recurring accruals, entering into the determination of the results 

shown.

3. The information required by this Item 14(b) is required in a Statement of 

the “ acquiring” or “ surviving” bank only where a “ significant” merger or 

acquisition is to be voted upon. For purposes of this item, the term “ significant” merger or acquisition shall mean a transaction where either (1) the net 

book value of assets to be acquired or the amount to be paid therefor exceeds 

5 percent of the equity capital accounts of the acquiring bank, or (2) in an 

exchange transaction, the number of shares to be issued exceeds 5 percent of 

the outstanding shares of the acquiring bank, or (3) gross operating revenues 

for the last fiscal year of the person to be acquired exceeded 5 percent of the 

gross operating revenues for the last fiscal year of the acquiring bank. If less 

than a “ significant” merger or acquisition is to be voted upon, such information need only be included to the extent necessary for the exercise of prudent 

judgment with respect thereto.

* * * >«c

Item 15— Financial Statements.

(a) If action is to be taken with respect to any matter specified in Items 12,

13, or 14 above, furnish verified financial statements of the bank and its subsidiaries such as would be required in a registration statement filed pursuant 

to this part. In addition, the latest available interim date balance sheet and 

statement of income for the interim period between the end of the last fiscal 

year and the interim balance sheet date, and comparable prior period, shall be 

furnished. All schedules, except Schedule VII— “ Allowance for Possible Loan 

Losses” and Schedule VIII— “ Reserve on Securities” , may be omitted.

(b) If action is to be taken with respect to any matter specified in Item 

14(b), furnish for each person specified therein, other than the bank, financial 

statements such as would be required in a registration statement filed pursuant to this part. In addition, the latest available interim date balance sheet 

and statement of income for the interim period between the end of the last 

fiscal year and the interim balance sheet date, and comparable prior period, 

shall be furnished. However, the following may be omitted: (1) All schedules, 

except Schedule VII— “ Allowance for Possible Loan Losses” ; and (2) statements for a subsidiary, all of the stock of which is owned by the bank, that is 

included in the consolidated statement of the bank and its subsidiaries. Such 

statements shall be verified, if practicable.

(c) Notwithstanding paragraphs (a) and (b) above, any or all of such financial statements which are not material for the exercise of prudent judgment in 

regard to the matter to be acted upon may be omitted. Such financial statements are deemed material to the exercise of prudent judgment in the usual 

case involving the authorization or issuance of any material amount of senior 

securities, but are not deemed material in cases involving the authorization or 

issuance of common stock, otherwise than in an exchange, merger, consolidation, acquisition, or similar transaction.

* * * * *

Item 18— Amendment of Charter, Bylaws, or Other Documents.

If action is to be taken with respect to any amendment of the bank’s 

charter, bylaws, or other documents as to which information is not required 

above, state briefly the reasons for and general effect of such amendment.

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Item 20— Vote Required for Approval.

As to each matter which is to be submitted to a vote of security holders, 

other than elections to office or the selection or approval of auditors, state the 

vote required for its approval.

10. Section 335.71 is amended as set forth below:

§ 335.71 Forms for financial statements (Forms F—9 A, B, C, and D).

Forms F-9— Financial Statements

A. Balance Sheet (Form F-9A).

B. Statement of Income (Form F-9B).

C. Statement of Changes in Capital Accounts (Form F-9C).

D. Schedules (Form F-9D).

General Instructions

1. Preparation of Forms.

The forms for financial statements are not to be used as blank forms to be 

filled in but only as guides in the preparation of financial statements. The 

requirements with respect to the filing of balance sheets and statements of 

income are contained in the instructions as to certain other forms required by 

this part. Particular attention should be given to the general requirements as 

to financial statements in § 335.7, including paragraphs (e) and (f) thereof, 

which prescribe when statements of changes in capital accounts and schedules 

will be filed. Although inapplicable items specified in the forms for financial 

statements should be omitted, the detailed instructions that relate to applicable items shall be followed.

2. Accrual Accounting.

Financial statements shall generally be prepared on the basis of accrual 

accounting whereby all revenues and all expenses shall be recognized during 

the period earned or incurred regardless of the time received or paid, with 

certain exceptions: (a) Where the results would be only insignificantly different 

on a cash basis, or (b) where accrual is not feasible. Statements with respect 

to the first fiscal year that a bank reports on the accrual basis shall indicate 

clearly, by footnote or otherwise, the beginning-of-year adjustments that were 

necessary and their effect on prior financial statements filed under this part.

(Name of Bank)

A. Balance Sheet 

Assets

1. Cash and due from b a n k s ......................

2. Investment securities:

(a) U.S. Treasury securities ...................................................................

(b) Securities of other U.S. Government agencies and corporations .

(c) Obligations of States and political subdivisions.............................

(d) Other securities .....................................................................................

3. Trading account securities ........................................................................

4. Federal funds sold and securities purchased under agreements to

resell ..........................................................................................................

5. Other loans ...................................................................................................

6. Bank premises and equipment .................................................................

7. Other real estate owned .............................................................................

8. Investments in subsidiaries not consolidated ..................................

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9. Customers' acceptance liability .............................................................

10. Other assets ...............................................................................................

11. Total assets ..........................................................................

Liabilities

12. Deposits:

(a) Demand deposits in domestic offices ...........................................

(b) Savings deposits in domestic offices ...............................................

(c) Time deposits in domestic offices ....................................................

(d) Deposits in foreign offices .................................................................

13. Federal funds purchased and securities sold under agreements to repurchase .....................................................................................................

14. Other liabilities for borrowed money ........................................................

15. Bank's acceptances outstanding ...............................................

16. Mortgages payable ........................... ...............................................

17. Other liabilities . ...........................................

18. Total liabilities ...............................................................................................

19. Minority interests in consolidated subsidiaries ..................................

Reserves on Loans and Securities

20. Allowance for possible loan losses ......................................

21. Reserves on securities

Capital Accounts

22. Capital notes and debentures .

23. Equity capital:

(a) Capital stock:

Preferred stock ...............................................................

Common stock .................................................................................

(b) Surplus ...............................................................................

(c) Undivided profits ...............................................................................

(d) Reserve for contingencies and other capital reserves................

24. Total capital accounts ...............................................................................

25. Total liabilities, reserves, and capital .................................................

Assets

1. Cash and due from banks, (a) State the total of (1) currency and coin 

(A) owned and held in the bank’s vaults and (B) in transit to or from a Federal Reserve Bank; (2) the bank’s total reserve balance with the Federal 

Reserve Bank as shown by the bank’s books; (3) demand and time balances 

with other banks; and (4) cash items in process of collection.

(b) Reciprocal demand balances with banks in the United States, except 

those of private banks and American branches of foreign banks, shall be 

reported net.

(c) Do not include unavailable balances with closed or liquidating banks. 

Such balances should be reported in “ other assets".

(d) Cash items in process of collection include: (1) checks in process of 

collection drawn on another bank, private bank, or any other banking institution that are payable immediately upon presentation (including checks with a 

Federal Reserve Bank in process of collection and checks on hand that will be 

presented for payment or forwarded for collection on the following business 

day); (2) Government checks and warrants drawn on the Treasurer of the

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United States that are in process of collection; and (3) such other items in 

process of collection, including redeemed U.S. savings bonds, payable immediately upon presentation in the United States, as are customarily cleared or collected by banks as cash items.

(e) Checks drawn on a bank other than the reporting bank that have been 

deposited in the reporting bank (or offices or branches of such bank) and have 

been forwarded for collection to other offices or branches of the reporting 

bank are cash items in the process of collection.

(f) Do not include commodity or bill-of-lading drafts payable upon arrival of 

goods against which drawn, whether or not deposit credit therefor has been 

given to a customer. If deposit credit has been given, such drafts should be 

reported as “ loans"; but if the drafts were received by the reporting bank on a 

collection basis they should not be included in the reporting bank’s statement 

until such time as the funds have been actually collected.

(g) Unposted debits should preferably be deducted from the appropriate 

deposit liability caption. If such items are included hereunder, the amount 

shall be stated parenthetically.

2. Investment securities, (a) State separately bdok value of (1) U.S. Treasury securities; (2) securities of other U.S. Government agencies and corporations; (3) obligations of States and political subdivisions; and (4) other securities owned by the bank; include securities pledged, loaned or sold under 

repurchase agreements and similar arrangements.

(b) Book value with respect to investment quality securities reported in paragraph (a) shall be cost adjusted for amortization of premium and, at the 

option of the bank, for accretion of discount. There shall be set forth in a note 

to financial statements (1) the basis of accounting for book value, and (2) if 

bond discount is systematically accrued and amounts to 5 percent or more of 

interest and dividends on investments, the total of accretion income and 

deferred income taxes applied thereto.

(c) Include in category (3) of paragraph (a) obligations, including warrants 

and tax anticipation notes, of the States of the United States and their political subdivisions, agencies, and instrumentalities; also obligations of territorial 

and insular possessions of the United States. Do not include obligations of foreign states.

(d) Do not include borrowed securities, or securities purchased under resale 

agreements or similar arrangements.

3. Trading account securities. State the aggregate value at the balance 

sheet date, of securities of all types carried by the bank in a dealer trading 

account (or accounts) that are held principally for resale to customers. Indicate parenthetically, or otherwise in a note to financial statements, whether 

the inventory is valued at (1) cost, (2) lower of cost or market, or (3) market. 

If cost basis of valuation is used, furnish aggregate market value of the trading account inventory at the current fiscal year balance sheet date.

4. Federal funds sold and securities purchased under agreements to resell,

(a) State the aggregate value of Federal funds sold and securities purchased 

under resale agreement or similar arrangements. All securities purchased 

under transactions of this type should be included regardless of (1) whether 

they are called simultaneous purchases and sales, buybacks, turnarounds, 

overnight transactions, delayed deliveries, etc., and (2) whether the transactions are with the same or different institutions if the purpose of the transactions is to resell identical or similar securities.

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(b) Federal funds sold and purchases of securities under resale agreements 

should be reported gross and not netted against purchases of Federal funds 

and sales of securities under repurchase agreements.

5. Other loans, (a) State the aggregate gross value of all loans including

(1) acceptances of other banks and commercial paper purchased in the open 

market; (2) acceptances executed by or for the account of the reporting bank 

and subsequently acquired by it through purchase or discount; (3) customers’ 

liability to the reporting bank on drafts paid under letters of credit for which 

the bank has not been reimbursed; and (4) “ cotton overdrafts” or “ advances,” 

and commodity or bill-of-lading drafts payable upon arrival of goods against 

which drawn, for which the reporting bank has given deposit credit to customers.

(b) Include (1) paper rediscounted with the Federal Reserve or other banks; 

and (2) paper pledged as collateral to secure bills payable, as marginal collateral to secure bills rediscounted, or for any other purpose.

(c) Do not include contracts of sale or other loans indirectly representing 

bank premises or other real estate; these should be included in “ bank premises” or “ other real estate” .

(d) Do not deduct bona fide deposits accumulated by borrowers for the payment of loans.

6. Bank premises and equipment, (a) State the aggregate cost of (1) bank 

premises owned, (2) leasehold improvements, and (3) equipment less any 

accumulated depreciation or amortization with respect to such assets.

(b) All fixed assets acquired subsequent to December 31, 1959, shall be 

stated at cost less accumulated depreciation or amortization.

(c) All fixed assets acquired prior to January 1, 1960, that are not presently 

accounted for by the bank on the basis of cost less accumulated depreciation 

or amortization, may be stated at book value. Any such assets that are still in 

use and would not have been fully depreciated on an acceptable method of 

accounting for depreciation if the bank had recorded depreciation on such 

basis shall be described briefly in a footnote, together with an explanation of 

the accounting that was used with respect to such assets.

(d) The term “ leasehold improvements” comprehends two types of situations: (1 ) Where the bank erects a building on leased property; and (2) where 

a bank occupies leased quarters or uses leased parking lots and appropriately 

capitalizes disbursements for vaults, fixed machinery and equipment directly 

related to such leased quarters, or resurfacing or other improvements directly 

related to such parking lots that will become an integral part of the property 

and will revert to the lessor on expiration of the lease.

(e) Bank premises includes vaults, fixed machinery and equipment, parking 

lots owned adjoining or not adjoining the bank premises that are used by customers or employees, and potential building sites.

(f) Equipment includes all movable furniture and fixtures of the bank.

7. Other real estate owned, (a) State the aggregate cost of all real estate 

owned by the bank that is not a part of bank premises.

(b) With respect to real estate acquired through default of a loan, aggregate 

cost shall include the unpaid balance on the defaulted loan plus the bank’s 

out-of-pocket costs in acquiring clear title to the property. Any adjustments 

from aggregate cost shall be explained in a footnote.

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(c) The aggregate market value of all real estate owned by the bank that is 

not a part of bank premises shall be set forth in a footnote, together with an 

explanation of the method of determining such market value.

8. Investments in subsidiaries not consolidated. State the aggregate investment, including advances, in subsidiaries not consolidated.

9. Customers' acceptance liability, (a) State the liability to the reporting 

bank of its customers on drafts and bills of exchange that have been accepted 

by the reporting bank or by other banks for its account and that are outstanding— that is, not held by the bank, on the reporting date. (If held by the 

reporting bank, they should be reported as “ loans” .)

(b) In case a customer anticipates his liability to the bank on outstanding 

acceptances by paying the bank either the full amount of his liability of any 

part thereof in advance of the actual maturity of the acceptance, the bank 

should decrease the amount of the customer’s liability on outstanding acceptances. If such funds are not received for immediate application to the reduction of the indebtedness to the bank or the receipt thereof does not immediately reduce or extinguish the indebtedness, then such funds held to meet 

acceptances must be reported in “ demand deposits” .

(c) Do not include customer’s liability on unused commercial and travelers’ 

letters of credit issued under guaranty or against the deposit of security— that 

is, not issued for money or its equivalent.

10. Other assets. State separately, if material, (1) income earned but not 

collected; (2) prepaid expenses; (3) property acquired for the purpose of direct 

lease financing; and (4) any other asset not included in the preceding items.

11. Total assets. State the sum of all asset items.

Liabilities

12. Deposits, (a) State separately (1) demand deposits in domestic offices 

of the bank, (2) savings deposits in domestic offices of the bank, (3) time 

deposits in domestic offices of the bank, and (4) deposits in foreign offices. 

Related unposted debits, if any, should preferably be deducted from domestic 

deposits.

(b) The domestic deposit liability categories shall be segregated in accordance with the Rules and Regulations of the Federal Deposit Insurance Corporation, Part 327.2 Classification of Deposits.

(c) The term “ unposted debit” means a cash item in the bank's possession 

drawn on itself that has been paid or credited and is chargeable against, but 

has not been charged against, deposit liabilities at the close of the reporting 

period. This term does not include items that have been reflected in deposit 

accounts on the general ledger, although they have not been debited to individual deposit accounts.

(d) Reciprocal demand deposit balances with banks in the United States, 

except those of private banks and American branches of foreign banks, shall 

be reported net.

(e) Include outstanding drafts (including advices or authorizations to charge 

the bank’s balance in another bank) drawn in the regular course of business 

by the reporting bank on other banks pursuant to customer order.

(f) Do not include trust funds held in the bank’s own trust department that 

the bank keeps segregated and apart from its general assets and does not use 

in the conduct of its business.

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13. Federal funds purchased and securities sold under agreements to repurchase. (a) State the aggregate value of Federal funds purchased and securities 

sold under repurchase agreements or similar arrangements. All securities sold 

under transactions of this type should be included regardless of (1) whether 

they are called simultaneous purchases and sales, buybacks, turnarounds, 

overnight transactions, delayed deliveries, etc., and (2) whether the transactions are with the same or different institutions if the purpose of the transactions is to repurchase identical or similar securities.

(b) Federal funds purchased and sales of securities under repurchase agreements should be reported gross and not netted against sales of Federal funds 

and purchases of securities under resale agreements.

14. Other liabilities for borrowed money. State the aggregate amount borrowed by the reporting bank on its own promissory notes, on notes and bills 

rediscounted (including commodity drafts rediscounted), or on any other 

instruments given for the purpose of borrowing money.

15. Bank's acceptances outstanding, (a) State the aggregate of unmatured 

drafts and bills of exchange accepted by the reporting bank, or by some other 

bank as agent for the reporting bank (other than those reported in “ demand 

deposits” ), less the amount of such acceptances acquired by the reporting 

bank through discount or purchase and held on the reporting date.

(b) Include bills of exchange accepted by the reporting bank that were 

drawn by banks or bankers in foreign countries, or in dependencies or insular 

possessions of the United States, for the purpose of creating dollar exchange 

as required by usage of trade in the respective countries, dependencies, or 

insular possessions.

16. Mortgages payable, (a) State separately here, or in a note referred to 

herein, such information as will indicate (1 ) the general character of the debt 

including the rate of interest; (2) the date of maturity; (3) if the payment of 

principal or interest is contingent, an appropriate indication of such contingency; and (4) a brief indication of priority.

(b) If there are any liens on bank premises or other real estate owned by 

the bank or its consolidated subsidiaries which have not been assumed by the 

bank or its consolidated subsidiaries, report in a footnote the amount thereof 

together with an appropriate explanation.

17. Other liabilities. State separately, if material, (a) accrued payrolls; (b) 

accrued income tax liability (Federal and State combined); (c) accrued interest;

(d) cash dividends declared but not paid; (e) income collected but not.earned; 

and (f) any other liability not included in Items 12 through 16.

18. Total liabilities. State the sum of Items 12 through 17.

19. Minority interests in consolidated subsidiaries. State the aggregate 

amount of minority stockholders’ interests in capital stock, surplus, and undivided profits of consolidated subsidiaries.

Reserves

20. Allowance for possible loan losses, (a) State the balance of the loan 

loss allowance account at the end of the fiscal year. Include in this allowance 

only (1 ) any provision that the bank makes for possible loan losses pursuant 

to the Treasury tax formula and (2) any amount in excess of the provision 

taken under such formula that (A) represents management’s judgment as to 

possible loss or value depreciation and (B) has been established through a 

charge against income.

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(b) Any provision for possible loan losses that the bank establishes as a 

precautionary measure that is in excess of the amount reported in paragraph

(a) shall not be included in this allowance but shall be reported as a contingency reserve— that is, as a segregation of undivided profits.

21. Reserves on securities. State the balance of the reserves on securities 

at the end of the fiscal year of any allowance that (1) represents management's judgment as to possible loss or value depreciation in investment securities and (2) has been established through an appropriate charge against 

income shall be separately stated. Any provision for possible security losses 

that the bank establishes as a precautionary measure only (such as to reflect 

normal fluctuations in market value of readily marketable securities) shall not 

be included in this allowance but shall be reported as a contingency reserve— 

that is, as a segregation of undivided profits.

Capital Accounts

22. Capital notes and debentures. State separately here, or in a note 

referred to herein, each issue or type of obligation and such information as 

will indicate (a) the general character of each type of debt including the rate 

of interest; (b) the date of maturity (or dates if maturing serially) and call provisions; (c) the aggregate amount of maturities, and sinking fund requirements, each year for the 5 years following the date of the balance sheet; (d) if 

the payment of principal or interest is contingent, an appropriate indication of 

the nature of the contingency; (e) a brief indication of priority; and (f) if convertible, the basis.

23. Equity capital, (a) Capital stock. State for each class of shares the title 

of issue, the number of shares authorized, the number of shares outstanding 

and the capital share liability thereof, and, if convertible, the basis of conversion. Show also the dollar amount, if any, of capital shares subscribed but 

unissued, and of subscriptions receivable thereon.

(b) Surplus. State the net amount formally transferred to the surplus 

account on or before the reporting date, subject to the conditions set forth in 

the instruction relating to “ undivided profits".

(c) Undivided profits. State the amount of undivided profits shown by the 

bank's books.

(d) Reserve for contingencies and other capital reserves.

(1) State separately each such reserve and its purpose.

(2) These reserves constitute amounts set aside for possible decrease in 

the book value of assets, or for other unforeseen indeterminable liabilities not 

otherwise reflected on the bank's books and not covered by insurance.

(3) As these reserves represent a segregation of undivided profits, do not 

include any element of known losses, or losses the amount of which can be 

estimated with reasonable accuracy.

(4) Reserves for possible security losses, reserves for possible loan losses, 

and other contingency reserves that are established as precautionary measures 

only shall be included in these reserves, as they represent segregations of 

“ undivided profits".

24. Total capital accounts. State the total of Items 22 and 23.

25. Total liabilities, minority interests, reserves and capital. State the total 

of Items 18, 19, 20, 21, and 24.

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(Nam e o f Bank)

B. S tatem ent o f Incom e

1. O perating Incom e:

(a) Interest and fees on loans .....................................................................................................

(b) Incom e on Federal fu n d s sold and se curitie s purchased under agreem ents to

resell ............................................................................................................................................

(c) Interest and dividends on investm ents:

1. U.S. Treasury securities ........................................................................................................

2. S ecurities of o ther U.S. G overnm ent agencies and corpo ra tio ns ........................

3. O b ligations o f States and p o litic a l subdivisions .....................................................

4. O ther securities ........................................................................................................................

(d) T ru st d epartm ent incom e ..........................................................................................................

(e) Service charges on deposit accounts ..................................................................................

(f) O ther service charges, collection and exchange charges, com m issions, and

fees ..................................................................................................................................................

(g) O ther operating incom e ...............................................................................................................

(h) Total operating incom e ...............................................................................................................

2. O perating Expenses:

(a) S alaries and wages ......................................................................................................................

(b) Pensions and other em ployee benefits ................................................................................

(c) Interest on deposits ......................................................................................................................

(d) Expense of Federal funds purchased and securities sold under agreem ents

to repurchase ...........................................................................................................................

(e) Interest on other borrowed m oney .......................................................................................

(f) Interest on capital notes and debentures ........................................................................

(g) O ccupancy expense of bank prem ises, net:

Gross occupancy expense......... ..........................................................................................

Less: Rental incom e......... ......................................................................................................

(h) F urniture and e quipm ent expense (In clud in g depreciation o f $--------) .................

(i) Provision fo r loan losses ..........................................................................................................

(j) O ther o perating expenses ..........................................................................................................

(k) Total o pe ra tin g expenses ..........................................................................................................

3. Incom e Before Incom e Taxes and S ecurities Gains (Losses) .........................................

4. A pplicable Incom e Taxes .................................................................................................................

5. Incom e Before S ecurities Gains (Losses) ..................................................................................

6. Net S ecurity Gains (Losses), less related tax effect, $......... ...............................................

7. Incom e (before e xtra o rd in ary item s, if any) ...........................................................................

8. E xtraordinary Item s, less related ta x effect, $......... ................................................................

9. Less M in o rity Interest in C onsolidated S ubsidiaries ..........................................................

10. N et Incom e ..............................................................................................................................................

E arnings per com m on share:*

Incom e before se curitie s gains (losses) ................................................................................

Net Incom e .........................................................................................................................................

*The per share am ou n t of securities gains (losses) m ay be stated separately. If e xtra ­

o rdin a ry item s are reported, per share am ount o f incom e before e xtra o rd in a ry item s and

per share a m ou n t of e xtra o rd in a ry item s shall be stated separately.

1. Operating income. State separately:

(a) Interest and fees on loans.

(1) Include interest, fees and other charges on all assets that are reported 

on the balance sheet as other loans.

(2) Include interest on acceptances, commercial paper purchased in the 

open market, drafts for which the bank has given deposit credit to customers, 

etc. Also include interest on loan paper that has been rediscounted with Federal Reserve or other banks or pledged as collateral to secure bills payable or 

for any other purpose.

(3) Include service charges and other fees on loans.

(4) Include profits (or losses) resulting from the sale of acceptances and 

commercial paper at discount rates other than those at which such paper was 

purchased.

(5) Current amortization or premiums on mortgages or other loans shall be 

deducted from interest on loans and current accumulation of discount on such 

items shall be added to interest on loans.

(b) Income on Federal funds sold and securities purchased under agreements to resell. Include the total gross revenue from Federal funds sold and 

securities purchased under agreements to resell.

(c) Interest and dividends on investments.

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RULES AND REGULATIONS OF THE CORPORATION 209

(1) State separately interest and dividends from (A) U.S. Treasury securities, (B) securities of other U.S. Government agencies and corporations, (C) 

obligations of States and political subdivisions, and (D) other securities owned 

by the bank, including securities pledged, loaned, or sold under repurchase 

agreements and similar arrangements.

(2) Include accretion of discount on securities, if any; deduct amortization 

of premiums on securities. If the reporting bank accrues bond discount and 

such income amounts to 5 percent or more of the total of interest and dividends on investments, state in a note to financial statements, the amount of 

accretion income and deferred income taxes applicable thereto.

(3) When securities are purchased, any payment for accrued interest shall 

not be charged to expenses, nor when collected be credited to earnings. Such 

interest shall be charged to a separate account that will be credited upon 

collection of the next interest payment. The balance in the account shall be 

shown as "other assets” in the balance sheet.

(d) Trust department income. (1) Include income from commissions and 

fees for services performed by the bank in any authorized fiduciary capacity.

(2) This item may be reported on the cash tyasis in those instances where 

the presentation of the item on the financial statements would not be materially affected thereby. The cash basis may also be used with respect to an 

individual trust or estate if accrual of income therefrom is not feasible. If any 

portion of trust department income is not reported on the accrual basis, there 

shall be a footnote explaining the method of reporting and the reason for 

departing from reporting on the accrual basis.

(e) Service charges on deposit accounts. Include amounts charged depositors that fail to maintain specified minimum deposit balances; charges based 

on the number of checks drawn on and deposits made in deposit accounts; 

charges for account maintenance and for checks drawn on "no minimum balance” deposit accounts; return check charges; etc.

(f) Other service charges, collection and exchange charges, commissions,

and fees. State the aggregate of other service charges, collection and exchange 

charges, commissions, and fees. Exclude charges on loans and deposits and 

those related to the Trust Department. Do not include reimbursements for 

out-of-pocket expenditures made by the bank for the account of customers. If 

expense accounts were charged with the amount of such expenditures, the 

reimbursements should be credited to the same expense accounts.

(g) Other operating income.

(1) Include all operating income not reported in Items 1(a) through 1(f).

(2) Include (A) net trading account income consisting of profits and losses, 

interest, and other income and expense related to securities carried in a dealer 

trading account or accounts that are held principally for resale to customers, 

but exclude salaries, commissions, and other indirect expenses; (B) income 

from lease financing; (C) gross rentals from "other real estate" and safe 

deposit boxes; (D) net remittable profits (or losses) of foreign branches and 

consolidated subsidiaries less any minority interests (unless the reporting bank 

preferably combines or consolidates each item of income and expense); (E) 

interest on time balances with other banks; and (F) all other recurring credits 

(such as miscellaneous recoveries) and immaterial nonrecurring credit items.

(3) Do not include rentals from bank premises. Such rental income shall be 

reported in the inset to Item 2(g). In the event there is a net occupancy 

income, the amount shall be shown in parenthesis in Item 2(g).

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210 FEDERAL DEPOSIT INSURANCE CORPORATION

(4) Itemize (A) net trading account income, (B) net remittable profits (or 

losses) of foreign branches and consolidated subsidiaries (if included in this 

subitem), and (C) all other amounts that represent 25 percent or more of the 

total of this subitem, unless “ other operating income" is less than 5 percent 

of “ total operating income."

(h) Total operating income. State the sum of Items 1(a) through 1(g).

2. Operating expenses. State separately:

(a) Salaries. (1) Include compensation for personal services of all officers 

and employees, including dining room and cafeteria employees but not building department employees.

(2) Include amounts withheld from salaries for Social Security taxes and 

contributions to the bank’s pension fund. Do not include Social Security taxes 

paid by the bank for its own account and the bank's contribution to pension 

funds. Such amounts shall be included in Item 2(b).

(3) Include bonus and profit sharing whether paid directly or through a 

trustee. Such compensation that is deferred and not distributed to employees 

shall be reported in Item 2(b).

(4) Do not include compensation of officers and employees who spent the 

major portion of their working time on bank building and related functions. 

Such compensation shall be included in Item 2(g).

(5) Do not include amounts paid to legal, management, and investment 

counsel for professional services if such counsel are not salaried officers or 

employees of the bank. Such amounts shall be included in Item 2(j).

(b) Pensions and other employee benefits.

(1) Include all supplementary benefits, other than direct compensation 

included in Item 2(a) accrued during the report period on behalf of all officers 

and employees except building department personnel (see Item 2(g)).

(2) Include the bank’s own contribution to its pension fund; unemployment 

and Social Security taxes for the bank’s own account; life insurance premiums 

(net of dividends received) and hospitalization insurance payable by the bank; 

and other employee benefits.

(3) Do not include expenses related to testing, training, or education of 

officers and employees; the cost of bank newspapers and magazines; premiums on insurance policies where the bank is beneficiary; and athletic activities 

where the principal purpose is for publicity or public relations and employee 

benefits are only incidental. Such amounts shall be included in Item 2(j).

(c) Interest on deposits. Include interest on all deposits.

(d) Expense of Federal funds purchased and securities sold under agreements to repurchase. Include the total gross expenses of Federal funds purchased and securities sold under agreements to repurchase.

(e) Interest on other borrowed money.

(1) Include all interest on bills payable, rediscounts, unsecured notes payable, and other instruments issued for the purpose of borrowing money other 

than Federal funds purchased and securities sold under agreements to repurchase.

(2) Do not include interest on mortgages on bank premises. Such interest 

shall be included in Item 2(g).

(f) Interest on capital notes and debentures. (1) Include all interest on capital notes and debentures.

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RULES AND REGULATIONS OF THE CORPORATION 211

(2) Amortization of premium or discount shall be deducted from or included 

in the amount reported.

(3) Do not include premium or discount paid or realized on retirement of 

such securities. Such amount shall be reported in Item 1(g) or 2(i).

(g) Occupancy expense of bank premises, net.

(1) Include in “ gross occupancy expense” inset, the aggregate amount of 

(A) salaries, wages, and supplementary compensation of bank personnel who 

devote the major portion of their time to the operation of bank premises or its 

consolidated premises subsidiaries; (B) depreciation of bank premises and 

amortization of leasehold improvements; (C) rent expense of bank premises; 

(D) real estate taxes; (E) interest on mortgages on bank premises owned; and 

(F) other bank premises operating and maintenance expenses.

(2) Include in “ rental income" inset, the aggregate amount of rentals from 

bank premises leased by the bank or its consolidated premises subsidiaries.

(3) Report the net occupancy expense (or net income) of bank premises. If 

net income is reported, the amount shall be shown in parenthesis.

(h) Furniture and equipment expense. (1) Include normal and recurring 

depreciation charges; rental costs of office machines and tabulating and data 

processing equipment; and ordinary repairs to furniture and office machines, 

including servicing costs. The amount applicable to depreciation charges shall 

be shown in parenthesis.

(2) Include taxes on equipment.

(i) Provision for loan losses.

(1) Banks which provide for loan losses on a reserve basis shall include an 

estimated amount for credit losses. Such amount shall be determined by management in light of past loan loss experience and evaluation of potential loss 

in the current loan portfolio. The estimated loan loss factor allocable to operating expense shall not be less than the amount computed under one of the 

elective methods set forth in subitem (2).

(2) The bank may elect in 1969, and thereafter consistently use for financial reporting purposes, one of the following methods for allocating loan losses 

to operating expense:

(A) Average ratio of loss over the past five years applied to average loans 

outstanding during the current year. Ratio of loss shall be the single decimal 

quotient of total net chargeoffs (losses less recoveries) and total average loans 

for the 5 most recent years, including the current year.

(B) Average ratio of loss on a forward moving average beginning with the 

year 1969 applied to average loans outstanding during the current year. Ratio 

of loss shall be the single decimal quotient of total net chargeoffs and total 

average loans for the number of years beginning with 1969 and ending with 

the year of report. In 1973, banks which elect the forward moving average 

method will compute the minimum allocable credit loss expense on the same 

basis as banks which elect method (1).

Note: For purposes of Item 2(A) and Item 2(B), average annual loans outstanding shall include Federal funds sold and securities purchased under 

agreements to resell, and (2) may be computed on any reasonable schedule of 

frequency. In the absence of other procedures “ Other loans” , and “ Federal 

funds sold and securities purchased under agreements to resell” , as reported 

in Statements of Condition called by supervisory authorities, shall be averaged.

(C) Actual net chargeoffs as experienced in the current year.

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212 FEDERAL DEPOSIT INSURANCE CORPORATION

(3) An estimated amount for loan losses allocable to operating expense in 

excess of the minimurh amount computed as instructed in subitem (2) should 

be provided when judged appropriate in the opinion of management.

(4) Furnish in a note to financial statements an explanation of the basis for 

allocating loan losses to operating expense including (A) the method followed, 

and (B) amount added at the discretion of management, if any.

(5) The amount may be expressed in even dollars or thousands of dollars.

Note: The amount reported for loan losses in operating expense shall be

adjusted, if necessary, to the amount transferred to the allowance for loan 

losses recorded on the books of the bank by an entry to the undivided profits 

account in the statement of changes in capital accounts. For example, if the 

estimated loan loss expense reported in the statement of income is less than 

the amount transferred to the allowance for loan losses, the amount of difference, less related tax effect, should be charged against the undivided profits 

account. If the estimated loan loss expense reported in the statement of 

income (1) is more than the amount transferred to the allowance for loan 

losses, and (2) represents the minimum amount the bank is required to allocate under its elected method, the amount of difference, less related tax 

effect, should be credited to the undivided profits account.

(6) Banks which do not provide for loan losses on a reserve basis shall 

include the amount of actual net chargeoffs (losses less recoveries) for the 

current year.

(j) Other operating expenses.

(1) Include all operating expenses, not reported in Items 2(a) through 2(i).

(2) Include advertising, business promotion, contributions, cost of examinations by supervisory authorities, deposit insurance assessments, fees paid to 

directors and members of committees, memberships, net cash shortages or 

overages, operating expenses (except salaries) of “ Other real estate owned," 

postage, premium on fidelity insurance, publicity, retainer fees, stationery and 

office supplies, subscriptions, taxes not reported against other items, telegrams 

and cables, telephone, temporary agency help, travel, unreimbursed losses on 

counterfeits, forgeries, payments over stops and all other recurring expenses 

and immaterial nonrecurring charges.

(3) Deposit insurance assessment expense shall be reported as a net figure 

— that is, all assessment credits during the period shall be applied against the 

assessment expense.

(4) Itemize all amounts that represent 25 percent of this item.

(k) Total operating expenses. State the sum of Items 2(a) through 2(j).

3. Income before income taxes and security gains (losses). State the difference of Item 1(h) minus Item 2(k).

4. Applicable income taxes, (a) State the aggregate of Federal and State 

taxes applicable to the amount reported in Item (3).

(b) Do not include taxes applicable to net security gains (losses) and 

extraordinary items. Such taxes (or tax reductions) shall be reported in Items 

6 and 8.

5. Income before securities gains (losses). State the difference of Item 3 

minus Item 4.

6. Net security gains (losses). State the net result of security gains and 

losses realized. Related income taxes (or tax reductions) shall be shown parenthetically.

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RULES AND REGULATIONS OF THE CORPORATION 213

7. Income (before extraordinary items, if any). State the sum of difference 

of Items 5 and 6.

Note: If extraordinary items are reported (See Item 8) the caption to this 

Item shall read, “ Net income before extraordinary items".

8. Extraordinary items. State the material results of nonrecurring transactions that have occurred during the current reporting period. Only the results 

of major events outside of the ordinary operating activity of the bank are to be 

reported herein. Such events would include, but not be limited to, material 

gain or loss from sale of bank premises, expropriation of properties, and major 

devaluation of foreign currency. Related income taxes (or tax reductions) shall 

be shown parenthetically. (Less than material results of nonrecurring transactions are to be included in Items 1(g) or 2(j), as appropriate.)

9. Less minority interest in consolidated subsidiaries. State the aggregate 

amount of profit or loss accruing to minority interests.

10. Net income. State the sum or difference of Items 7, 8, and 9.

Earnings per common share. State the per share amounts applicable to 

common stock (including common stock equivalents) and per share amounts 

on a fully diluted basis, if applicable. The basis of computation, including the 

number of shares used, shall be furnished in a note to the financial statements.

(Name of Bank)

C. STATEMENT OF CHANGES IN CAPITAL ACCOUNTS

Increase (Decrease)

Capital 

notes and 

debentures

Preferred

stock

$______

Par

Common

stock

$

Par

Surplus Undivided

profits

Reserve 

for contingencies 

and other 

capital 

reserves

1. Net income transferred to undivided

profits.................... ......... ..........................

2. Capital notes and debentures, preferred

stock and common stock sold (par or 

face value)_____ ______ ______________

3. Stock issued incident to mergers and

acquisitions_________________________

4. Premium on capital stock sold_____ __

5. Additions to, or reductions in, surplus,

undivided profits, and reserves incident to mergers____________________

6. Transfers to allowance for loan loss,

exclusive of portion charged against 

income, less related income tax effect 

$ - - ...........- ............- ................... - - - - -

7. Cash dividends declared on preferred

stock____ ________ __________________

8. Cash dividends declared on common

stock_____________ __________________

9. Stock issued in payment of stock dividend, ______shares at par value______

10. All other increases (decreases)1_______

11. Net increase (decrease) for the year

12. Balance at beginning of year2__________

13. Balance at end of year_________________

1 State separately any material amounts, indicating clearly the nature of the transaction out of which the item arose.

2 If the statement is filed as part of an annual or other periodic report and the balances at the beginning of the period 

differ from the closing balances as filed for the previous fiscal period, state in a footnote the difference and explain.

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214 FEDERAL DEPOSIT INSURANCE CORPORATION

D. SCHEDULES

SCHEDULE I— U.S. TREASURY SECURITIES, SECURITIES OF OTHER U.S. GOVERNMENT AGENCIES 

AND CORPORATIONS, AND OBLIGATIONS OF STATES AND POLITICAL SUBDIVISIONS

Type and maturity grouping

Principal

amount

Book

value1

U.S. Treasury Securities____________________________________________ _____ _______________

Within 1 year_________________________________________________________________________

After 1 but within 5 years______________ _____________ _____ _____ _______ _______ _____

After 5 but within 10 years__________________________________________________ ______ _

After 10 years._______ ___________________________________________ ______ ______________

Total U.S. Treasury Securities__________________________ _____ ________ _________

Securities of other U.S. Government Agencies and Corporations___________________________

Within 1 year____________________________________ _________ ______ ____________________

After 1 but within 5 years.. _______________________________________ ______ ___________

After 5 but within 10 years____________________________________________________________

After 10 years____ __________ _____ ____________________________________________________

Total securities of Other U.S. Government Agencies and Corporations_____________

Obligations of States and political subdivisions2-3. ___________________________ _____ _______

Within 1 year___________ ____________________________________ _____ ___________________

After 1 but within 5 years___________ __________ ______ _____________________________

After 5 but within 10 years__________ ____________________ _________________ _______

After 10 years_________________________________________________________ _________ _____

Total obligations of States and political subdivisions______________ ______ ________

1 State briefly in a footnote the basis for determining the amounts in this column.

2 Include obligations of the States of the United States and their political subdivisions, agencies, and instrumentalities; 

also obligations of territorial and insular possessions of the United States. Do not include obligations of foreign States.

3 State in a footnote the aggregate (a) principal amount, (b) book value, and (c) market value of securities that are 

less than “ investment grade” . If market value is determined on any basis other than market quotations at balance sheet 

date, explain.

SCHEDULE II—OTHER SECURITIES

Type Amount Book value1

Bonds, notes, and debentures2*3_______ ______________________________________________

Stocks2-4. . - _____________ ______________________________________________________________

Totals_____ _______ _______ ______________________________________________ ________

1 State briefly in a footnote the basis for determining the amounts shown in this column.

2 State in a footnote the aggregate amount and book value of foreign securities included.

3 State in a footnote the aggregate (a) principal amount, (b) book value, and (c) market value of bonds, notes, and 

debentures that are less than "investment grade” . If market value is determined on any basis other than market quotations at balance sheet date, explain.

4 State in a footnote the aggregate market value.

SCHEDULE III—OTHER LOANS 1

Type Book value

Real estate loans:

Insured or guaranteed by the U.S. Government or its agencies___ _____ ______________________________

Other_________________________________________________ . ---------------------------------------------------------

Loans to financial institutions____ __ __ ____________ ______ _____ _______ _____________________ ______

Loans for purchasing or carrying securities (secured or unsecured)_____________________________________

Commercial and industrial loans_________ ______________________________________ _______ _______ _____

Loans to individuals for household, family, and other consumer expenditures__________ ______ __________

All other loans (including overdrafts)_______________________ ___________ ___________________ __________

Total other loans reported in balance sh e e t........................ ..................... ......... .......................................

1 If impractical to classify foreign branch and foreign subsidiary loans in accordance with this schedule, a separate 

caption stating the total amount of such loans may be inserted. Such action should be explained in a footnote.

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RULES AND REGULATIONS OF THE CORPORATION 215

SCHEDULE IV— BANK PREMISES AND EQUIPMENT

Column A Column B Column C

Classification 1 Gross book 

value2

Accumulated 

depreciation and 

amortization v

Amount at 

which carried on 

balance sheet

Bank premises (including land $ ____ ) _______________

Equipment___________________________________________

Leasehold improvements___ ______ ___________ _______

Totals5________________________________________

H f impractical to consolidate foreign branch and foreign subsidiary bank premises and equipment in accordance 

with the breakdown required by this schedule, a separate caption stating the total amount of all such property may be 

inserted. Such caption should be explained appropriately in a footnote.

2 State the basis of determining the amounts in column A.

3 If provision for depreciation and amortization is credited in the books directly to the asset accounts, the amounts 

for the last fiscal year shall be stated in an explanatory footnote.

4 The nature and amount of significant additions (other than provisions for depreciation and amortization) and deductions from depreciation accounts shall be stated in an explanatory footnote.

5 Show totals (corresponding to columns A and B) representing amounts reported for Federal income tax purposes.

SCHEDULE V— INVESTMENTS IN, INCOME FROM DIVIDENDS, AND EQUITY IN EARNINGS AND LOSS 

OF UNCONSOLIDATED SUBSIDIARIES

Column A Column B Column C Column D Column E

Name of subsidiary Percent of 

voting stock 

owned

Total investment, including advances

Equity in 

underlying 

net assets 

at balance 

sheet date1

Amount of 

dividends2

Bank's proportionate part of 

earnings or loss 

for the period

T o ta ls ____________

1 Equity shall include advances reported in column B to the extent recoverable.

2 State as to any dividends other than cash the basis on which they have been reported as income. If any such dividend 

received has been credited to income in an amount differing from that charged to surplus and/or undivided profits by 

the disbursing subsidiary, state the amount of such difference and explain.

SCHEDULE VI— “ OTHER” LIABILITIES FOR BORROWED MONEY

Item Amount

Borrowings from Federal Reserve Bank ...................................................................

Unsecured notes payable within 1 year ....................................................................

Unsecured notes payable after 1 year ...................................................................

Other obligations ...........................................................................................................

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

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216 FEDERAL DEPOSIT INSURANCE CORPORATION

SCHEDULE VII— A L L O W A N C E FOR POSSIBLE LOAN LOSSES

Item

' Amount set up 

pursuant to 

Treasury tax 

formula

Other 

amount 1

Balances at beginning of period .......................................

Recoveries credited to Allowance ....................................

Additions due to mergers and absorptions2 ...........................

Transfers to Allowance:

From income ......................................................

From undivided profits3 ...........................................

Totals .....................................................

Losses charged to Allowance ..........................................

Balances at end of period4 ..............

1 Do not include any provision for possible loan losses that the bank establishes as a precautionary measure. Include only any provision that (1) has been established through a charge against income, (2) represents management’s judgment as to possible loss or value depreciation, and (3) is in excess of the provision taken under the Treasury tax formula.

2 Describe briefly in a footnote any such addition.

3 Indicate by parenthesis the gross amount of any credit adjustment to undivided profits.

4 Describe briefly in a footnote the basis used in computing the amount accumulated in the allowance at 

the end of the period. State the amount that could have been deducted for Federal income tax purposes if 

such amount is in excess of the amount provided by the bank pursuant to the Treasury tax formula.

Note: The sum of the balances should equal the amount of allowance for loan losses reported in the 

balance sheet.

SCHEDULE VIII— RESERVES ON SECURITIES

Item A m o u n t 1

Balance at beginning of period ......................................

Additions due to mergers and absorptions2 ...........................

Transfers to reserve:

From income ......................................................

From undivided profits .............................................

Totals .....................................................

Losses charged to reserve ............................................

Transfers from reserve ..............................................

Balance at end of period3 ............................................

1 Do not include any provision the bank establishes as a precautionary measure.

2 Describe briefly in a footnote any such addition.

3 Balance should equal the amount of Reserves on securities reported in the balance sheet.

[F.R. Doc. 69-15249; Filed, Dec. 29, 1969; 8:45 a.m.]

SUBCHAPTER A— PROCEDURE AND RULES OF PRACTICE

PART 309— PUBLISHED AND UNPUBLISHED RECORDS 

AND INFORMATION

Information Made Available to the Public

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RULES AND REGULATIONS OF THE CORPORATION 217

Effective December 31, 1969, Part 309 of the Code of Federal Regulations is 

amended as follows:

§ 309.1 Published and unpublished information.

(a) * * *

(3) Information made available to the public. Except to the extent that the 

matters set forth in this paragraph relate to or contain information which is 

exempted from the public disclosure provisions of section 3 of the Administrative Procedure Act, as amended (5 U.S.C. 552), or other law, the Corporation 

makes available for public inspection and copying, upon request to the Secretary of the Corporation in its office in Washington, D.C., during normal business hours, (i) all final opinions (including concurring and dissenting opinions) 

and all orders made in the adjudication of cases, (ii) those statements of 

policy and interpretations which have been adopted by the Corporation and are 

not published in the Federal Register, and (iii) Manual of Examination Policies 

and Instructions to Liquidators. To the extent required to prevent a clearly 

unwarranted invasion of personal privacy, the Corporation may delete identifying details when it makes available or publishes an opinion, statement of 

policy, interpretation, or staff manual or instruction. In each case the justification for the deletion will be fully explained in writing. The Corporation also 

maintains and makes available for public inspection and copying a current 

index providing information for the public as to any matter which is issued, 

adopted, or promulgated after July 4, 1967, and which is required by the 

Administrative Procedure Act to be made available or published. The Corporation makes available at its Washington office, at the New York, Chicago, and 

San Francisco Federal Reserve Banks, and at the Reserve bank of the district 

in which the bank filing a report is located, for public inspection and copying 

reports from insured State nonmember banks required under the provisions of 

section 12 of the Securities Exchange Act of 1934, as amended (15 U.S.C. 

78). All requests for copies of records enumerated in subdivisions (i), (ii), and 

(iii) of this subparagraph must be accompanied by a deposit with the Corporation of the estimated costs of copying such records at the rate of 10 cents per 

page. Such requests must provide a reasonably specific description of the 

record sought which will enable the Corporation to locate the record or records 

without undue difficulty.

Except to the extent that the records relate to or contain information which 

is exempted from the public disclosure provisions of section 3 of the Administrative Procedure Act, as amended (5 U.S.C. 552) or other law, the Corporation upon request for identifiable records of the Corporation to the Secretary 

of the Corporation in its office in Washington, D.C., during normal business 

hours, will make such records available to any person who agrees to pay the 

costs of searching, preparing and copying such records at the rate of $5 per 

hour for searching and preparing and 10 cents per page for copying and has 

paid in advance to the Corporation the estimated costs thereof. Such requests 

must provide a reasonably specific description of the record sought which will 

enable the Corporation to locate the record without undue difficulty. Any denial 

by an officer or employee of the Corporation of a request for any information 

or record made under this part by any member of the public may be appealed 

by a written request to the Board of Directors of the Corporation from the 

person whose request is denied.

❖ * * J{e

[F.R. Doc. 69— 15250; Filed, Dec. 29, 1969; 8:45 a.m.]

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S T A T E B A N K IN G L E G IS L A T IO N - 1 9 6 9

218 FEDERAL DEPOSIT INSURANCE CORPORATION

The legislatures of forty-eight States held either regular or special sessions 

during 1969 and all of them enacted statutes affecting the banking industry. 

Some of the State banking statutes enacted in 1969 are listed below on a 

State-by-State basis.

A L A B A M A

Interest rates on loans of corporations................ . . SB 53

Bank investments in debts incurred under the

National Housing A c t ............................................................. SB 51

Branch b a nking............................................................................ SB 9-X

SB 191

SB 814

SB 900

HB 555

Municipal and revenue bond issues as legal

investments for banks .................................... . . SB 768

SB 867

HB 23

HB 993

HB 1530

Banks filing fees to be paid with merger

applications ............................................................................ SB 278

Recordation of instruments .................................................... HB 1051

Frauds relating to negotiable instrum ents............................. HB 632

State bank holidays ................................................................... HB 1427

Fraudulent use of credit cards ............................................... SB 205

A L A S K A

Mutual savings bank investments ........................................... SB 305

Bank loans and investments .................................................... SB 173

A R IZ O N A 

Savings and loan association loans and

investments ............................................................................. HB 60

Overdrafts and checks on insufficient funds ...................... HB 28

Banks and financial institutions - holding

payments made under funeral plan arrangements........... HB 53

Interest rates on installment loans ...................................... HB 57

Fraudulent use of credit cards ............................................... HB 173

Licensing and regulation of escrow agents ...................... HB 174

Eligibility of banks as depositories of public funds ......... HB 213

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Federal Reserve Bank of St. Louis
STATE BANKING LEGISLATION— 1969 219

A R K A N S A S

Fraudulent use of credit cards ....................... . . HB 109

Additional procedures for organization

of State banks ........................................................................ SB 127

Charges for collection of accounts ...................................... HB 98

Credit statements required to be furnished to

borrowers ................................................................................. HB 338

Taxation of national and State b a n k s .................................... HB 82

Banks - investment of funds ................................................. HB 239

C A L IF O R N IA

Savings bank investments ........................................ . . AB 571

Savings and loan associations - shares and

investment certificates as "savings d e p o s its ".................. AB 727

Financial statements and reports of credit unions ........... AB 765

Regulation of check sellers and cashers ........................... AB 766

Bank examinations on calendar year basis ......................... AB 1654

Fraudulent use of credit cards ............................................. AB 1070

AB 1763

AB 1764

Bank and savings and loan association investments .... AB 1681

AB 1970

Bank loans to officers ............................................................. AB 1695

Examination of savings and loan associations.................... AB 1518

Savings and loan association issuance of more

than one class of stock ......................................... . . AB 763

Bank tax returns - authority of State Attorney

General to inspect ................................................................. SB 506

Authorized loans for savings and loan associations ......... AB 1447

State banks - prohibition against offering and

selling securities without a permit .................................... AB 1429

Banks — assessments levied by superintendent.................... AB 1437

Branch b a nking............................................................................ AB 1011

Banks - issuance of capital notes and debentures.............. AB 2346

Foreign banking corporations - authorization to

do business within State ...................................................... AB 1752

Establishment of places of business by banks .................. AB 1749

Real estate investments of savings and loan

associations ............................................................................. AB 717

Taxation of financial corporations ........................................ AB 2315

SB 1127

Acquisition and holding by banks of stock of 

corporations that perform functions a bank may

perform ..................................................................................... AB 1703

Creditors - liability to third p a rtie s ........................................ SB 1301

Bank h o lid a ys............................................................................... AB 66

Banks as depositories of public funds .................................. SB 966

Secured transactions ............................................................... AB 1377

C O LO R A D O

Savings and Loan Inspection Fund ........................................ SB 152

Saturday closing of banks ...................................................... SB 151

Powers of savings and loan associations defined ............. HB 1255

Public trustees and deeds of t r u s t ........................................ HB 1495

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

Powers of trust companies ........................................................SB 102

Branch banking .......................................................................... ..HB 1365

Per diem expenses of Banking Board .... . HB 1459

Bond required of State depositories ......................................HB 1519

Eligible security for depository bonds ............................. .......HB 1520

C O N N E C T IC U T 

Mortgage loans - mutual savings banks and savings

and loan association participations .................................. HB 6402

Bank investments in GNMA obligations.................................. HB 6403

Reserve requirements of building and savings

and loan associations ............................................. . . HB 6404

State banks and trust companies - interest on

preferred shares, capital notes, and debentures............. SB 841

Investments of savings banks ................................................. SB 859

Powers of State banks and trust companies ......................... SB 860

Savings and loan associations - amendments implementing

the National Housing A c t ...................................................... HB 6401

Mobile home financing by savings and loan

associations ............................................................................. HB 6410

Study of demand deposits in savings b a n k s ......................... SB 861

Savings and loan association ownership of

service corporations............................................................... HB 6406

Restrictions on credit unions .................................................... SB 842

Savings bank mortgage loans ............................................... SB 862

Savings bank acquisition of real e s ta te .................................. SB 864

Savings bank charters ............................................................... SB 928

Limitations on savings deposits in State banks

and trust companies ............................................................. SB 483

Savings bank construction loans on housing projects .... SB 482

Savings bank issuance of securities guaranteed under

the National Housing A c t ...................................................... SB 484

Dividends and surplus accounts of savings banks ........... SB 485

Savings and loan association FHA- and VAinsured mortgage loan investment limits . . . HB 6405

Savings and loan associations - interest

charges ............................................................. . . HB 6408

Savings and loan associations investment

in urban renewal areas ........................................... . . HB 6409

Savings and loan association loan limits on 

personal, home improvement, and educational

loans .......................................................................... . HB 6411

Loans by savings and loan associations to

ecclesiastical societies ...................................... . . HB 6414

Savings and loan association investments in 

loans approved and guaranteed by the Agency

for International Development ...........................................HB 6415

HB 8698

Compensation of officers and employees of

savings and loan associations............................................. HB 6417

Sale of assets by savings and loan associations ............. HB 6418

Authority of savings and loan associations to

offer “ savings deposits" .................................... . . HB 7753

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Federal Reserve Bank of St. Louis
STATE BANKING LEGISLATION— 1969 221

Authority of credit unions to make unsecured

loans and to borrow money ............................. SB 844

Retirement of officers and employees of credit

unions ........................................................................................ SB 845

Organization of credit unions ............................................... SB 847

Credit unions - annual m eetings............................................. SB 848

Withdrawal or expulsion of credit union m em bers............. SB 850

Supervisory committees of credit unions . .................. SB 851

Membership of credit unions .............................................SB 853

Central credit unions ........................ ............................. SB 854

Credit union dividends to m em bers........................................ SB 855

Derogatory statements affecting financial

institutions ............................................................................... SB 852

Small loan regulation . . . . . . SB 604

Branch banking ............................................. . SB 996

Bank holding companies and acquisition

of banks ...................................................... SB 1119

Solicitation of insurance contracts from

credit card h o ld ers ................................................................. HB 6662

Distribution of unsolicited credit cards ............................... HB 6630

Connecticut Mortgage Authority Act ...................................... SB 813

Uniform Consumer Credit Code s tu d y ............................. HJR 284

D E LA W A R E

Interest rates on lo a n s ............................................................. HB 190

Revision of State business taxes ......................... . . . HB 296

F LO R ID A

Credit unions - loans to officers and directors,

investments, and organization ............................................. HB 282

Home Improvement Sales and Finance A c t ......................... HB 92

Municipal bonds as bank investm ents.................................... SB 628

Legal holidays ............................................................................ SB 1067

Names of bank holding com panies........................................ HB 2078

State bonds as legal investments for b a n k s ......................... SB 991

Banks - loan limitation regulation ...................................... HB 1716

Banks - credit card financing arrangements ...................... SB 909

Investments of industrial savings b a n k s .............................SB 642

Community redevelopment corporation bond issues

as legal investments for b a n k s ........................................... SB 513

Organization and operation of building and

savings and loan associations ........................... . . SB 618

Municipal bond issuance . ............. HB 1777

HB 2981

G E O R G IA 

Purchase of stocks and investment securities

by banks ................................................................. . . SB 194

Conversion of regulated certificated banks into

State-chartered banks .......................................................... SB 190

Investments by trustees .......................................................... SB 184

Banks - increase in common stock categorized as

authorized but unissued stock ........................................... SB 157

Limitations on bank loans to one b o rrow er......................... SB 155

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

Banks - right of charge-back or re fu n d .................................. SB 156

Unpaid deposits of banks and credit unions .................... SB 198

Interest rates ............................................................................... SB 121

Lender Credit Card Act ............................................................. HB 413

Interest rates on investment capital ...................................... HB 289

Bank reserves............................................................................... SB 50

Illegal use of credit cards ........................................................ SB 115

Bank Holding Company Study Committee ........................... HR 358

State depositories ...................................................................... HB 144

Investment of public funds ...................................................... SB 182

H AW A II

Revenue bonds as legal investments for banks . . . . HB 493 

Business development corporation securities

as legal investments for b a n ks ............................. . . SB 29

Privileges and immunities of building and loan

associations ............................................................................ HB 896

Industrial loan licenses ............................................................. HB 1006

Powers of State banks ............................................................. SB 1073

Branch banks - fees ................................................................. SB 1105

HB 303

Security for deposits of public fu n d s ................ . . HB 1046

Investments authorized for institutional and

fiduciary investors ................................................................. SB 701

Regulation of credit life and disability insurance.................. SB 280

ID A H O

Eligibility of banks and trust companies as

depositories of public fu n d s .................................................. SB 1028

Savings and loan associations - savings accounts

as legal investments for fiduciaries.................................... HB 93

Possession of forged checks .................................................... SB 1201

Loans to bank officers ............................................................... SB 1206

State bank activities ................................................................. SB 1024

Organization of savings and loan associations.................... HB 265

Interest rates ............................................................................... HB 383

Eligibility of banks and trust companies as

depositories of State funds ............................. . . SB 1025

SB 1029

IL L IN O IS

Interest rates ........................................................ . . HB 1913

HB 1980

Currency exchanges - licenses and fe e s ............................... HB 2149

Probate Act - investments by guardians............................... HB 1101

Sales finance agencies............................................................... HB 1593

Organization of credit unions ................................................. HB 779

County treasurers - reporting of interest on

public funds ............................................................................ HB 2872

Consumer installment loans .................................................... HB 1916

Use of credit cards ................................................................... SB 765

Billing of customers under revolving charge

accounts ................................................................................... HB 1914

Consumer financing ................................................................... HB 1915

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Federal Reserve Bank of St. Louis
Consumer fraud ........................................................... HB 1917

Retail installment sales ................................................. HB 1918

Banks - general corporate pow ers...................................... HB 2420

Criminal usury .................... ........................................................ HB 1802

IN D IA N A

Organization of savings b a n k s ................................................. SB 126

Powers and duties of building and loan associations......... HB 1239

Interest rates and usury .......................................................... HB 1386

Credit unions - powers ............................................................. HB 1221

Investments of executors and fiduciaries ......................... SB 209

Authority of savings and loan associations to raise

capital in the form of savings deposits ........................... HB 1156

Powers of industrial loan and investment companies .... HB 1177

Financial institutions - approval of organization.................. HB 1416

Authority of savings and loan associations to make

unsecured property improvement loans ........................... HB 1155

Uniform Gifts to Minors Act amendments ........................... SB 172

Uniform Consumer Credit Code study ............................... SCR 58

IOW A

Iowa Banking Act of 1969 ........................................................ SB 18

False uttering or drawing of checks ...................................... SB 139

Operation of savings and loan associations......................... SB 140

Credit unions - dividends ........................................................ SB 412

K A N S A S

Insurance companies— reserves and legal investments . . . SB 314

Activities and dividends of credit unions ............................. SB 65

SB 66

Deposit of State funds ............................................................. SB 123

Savings and loan associations— shares, earnings,

and general powers ............................................................... SB 215

Par value of bank stock .......................................................... HB 1470

Fees for bank examinations .................................................... HB 1471

Truth-in-Lending Act ................................................................. SB 125

SB 388

Powers and investments of b a n k s ........................................... HB 1018

Examination fees for savings and loan associations......... HB 1580

L O U IS IA N A

Usurious interest - exemption of certain transactions .... SB 53

Banks as judicial depositories ................................................. HB 240

Guaranteed student loans ........................................................ SB 45

Bank capital stock and s u rp lu s ............................................... SB 95

Fidelity and surety insurance ................................................. SB 121

Industrial development corporations - securities

as legal investments for banks ........................................... SB 83

Rates of interest paid by corporations.................................. SB 7

M A IN E

Clarification of banking laws ................................................. HB 159

Approval and disapproval of savings bank m ergers........... HB 1121

STATE BANKING LEGISLATION— 1969 223

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

Revision of savings and loan association laws . HB 314

Bank reporting, reserves, and loan limits ............................. HB 542

General revision of credit union laws ......................... .... SB 200

SB 402

General revision of savings bank laws . . . HB 1021

M A R Y L A N D

Interest and usury . ...................... . . SB 3-XX

HB 21

Counterfeiting and forgery ...................................................... HB 25

Credit cards - unsolicited issuance ........................................ HB 72

Savings and loan association investments .................... HB 741

HB 742

HB 743

State banks and trust companies authorized to engage

in banking activities permitted to national banks ......... HB 4

Savings and loan associations - raising capital ................ HB 1133

Fees for examination of banks and trust com panies......... SB 751

Industrial finance companies - license and

examination fees ............................................... . . SB 754

SB 755

SB 756

Retail Credit Accounts Law amendments ........................... HB 110

Credit unions - supervisory committees ............................. SB 387

SB 410

Increase in annual registration fees for

mortgage brokers and bankers ........................................... SB 752

Credit union examination fees ............................................... SB 749

Articles of incorporation filing fees and new branch

application fees for banks and trust companies ........... SB 750

Service fees for student loans ............................................... SB 325

Savings and loan association mortgages ............................. HB 930

HB 931

Mortgages - future advances .................................................... HB 932

Affiliates of banks and trust companies ............................. HB 5

M A S S A C H U S E T T S 

Savings banks - guaranties incidental to the transfer of

investment securities ............................................................. HB 638

HB 783

Credit union disclosures relative to interest

on certain group club accounts ........................................ HB 20

Savings banks-lim its on personal loans ............................. HB 3617

Qualifications of directors of co-operative banks ............. SB 4

Retirement benefits for savings bank em ployees................ HB 4919

Limiting certain collateral loans by credit unions ............. HB 4920

Forged credit cards .................................................................... SB 6

Increasing limits on deposits in savings banks

and trust companies ............................................................. SB 1361

Reserve funds of credit unions ............................................. SB 1323

Savings bank improvement loans ........................................... HB 2645

Uniform Common Trust Fund A c t ........................................... SB 650

Collateral loans of co-operative banks .................................. HB 973

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Federal Reserve Bank of St. Louis
STATE BANKING LEGISLATION— 1969 225

Savings bank investments . . . HB 638

HB 780

Savings bank collateral loans .................................................. HB 782

Supervision and licensing of premium finance agencies . . HB 16

Misuse of credit cards ............................................................... SB 1551

Liquidity reserves of co-operative banks ............................. SB 1515

Salary deductions for credit union payments ...................... SB 1529

Reimbursement for costs of examining and

auditing banks ...................................................................... HB 14

Savings bank investment in bank holding companies .... HB 5704-

Appx. A

Licensing of small loan com panies......................... . . HB 13

M IC H IG A N

Uniform Commercial Code - commercial transactions .... HB 3154

Organization and powers of credit unions ........................... HB 2605

Organization and powers of savings and loan

associations ............................................................................. SB 785

Urban redevelopment corporations - general obligation

bonds as legal investments for b a n k s ............................... SB 1049

Banking Code of 1969 ............................................................. SB 215

Consumer financing study ........................................................ SR 114

M IN N E S O T A

Banks as depositories of State and municipal funds . . . . SB 110

SB 602

SB 1140

Mutual savings bank investments ........................................... SB 405

Inactive accounts of credit unions ......................................... SB 914

Savings Association Act ............................................................. SB 1355

B anks-total liabilities of any one b o rro w e r...................... HB 1831

Unsecured loans of savings banks to college students . . HB 1866

Mortgages by financial institutions ...................................... HB 1636

Application fees of building and loan associations ........... HB 1162

Banks and banking - applications, examinations,

and investment powers ........................................... . . HB 1163

Credit cards - limitation of liability for

unauthorized use .................................................... . . HB 826

M IS S IS S IP P I

Bank loans and advances of credit ...................................... SB 1598-X

State bond authorization .......................................................... SB 1515-X

M IS S O U R I

Organization of credit unions ................................................. HB 117

Regulation of savings and loan associations ...................... SB 33

Savings and loan association savings deposits .................. HB 293

Par clearance of checks .......................................................... SB 201

B anks-safe deposit business ............................................... SB 279

M O N T A N A

State banks - limitations on loans to any one person .... SB 42 

Withdrawal of funds from financial institutions

by surviving spouse ............................................................. SB 65

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226 FEDERAL DEPOSIT INSURANCE CORPORATION

N E B R A S K A

Banking fees ............................................................................... LB 105

Building and loan associations - charges and lo a n s ........... LB 192

Authority of building and loan associations to purchase

stock in service corporations ............................................... LB 199

Maximum interest rates on certain bank loans .................. LB 202

Banks loans and investments ................................................. LB 461

Department of Banking - interest complaints .................. LB 122

Bank loans to officers and employees .................................. LB 304

Rights and powers of building and loan associations .... LB 329 

Mergers and consolidations of building and loan

associations ........................................................................ LB 327

Building and loan association real estate investment .... LB 557

Additional powers for credit unions ...................................... LB 923

Industrial loan and investment companies - issuance

of capital notes and debentures ......................................... LB 611

Life membership in credit unions ........................................... LB 955

Audit, in lieu of examination, of industrial loan and

investment companies ........................................................... LB 613

Merger and consolidation of credit unions ........................... LB 954

Bank reserve requirements ...................................................... LB 1024

Certain stock investments of banks ...................................... LB 246

Maximum unsecured loans of credit unions ...................... LB 924

Bank deposits of the Tax Commissioner ............................. LB 1362

Taxation of credit unions ........................................................... LB 1068

Banks - statements of amounts of loans and

rates of interest .................................................................... LB 1383

Investments of State money in building and loan or

Federal savings and loan associations ............................. LB 838

Building and loan association investments ........................... LB 328

N E V A D A

Fraudulent use of credit cards ............................................... AB 24

Trustees and fiduciaries - trust powers .................................. AB 581

Savings and loan association investments ........................... SB 196

SB 406

Regulation of savings and loan associations........... . . SB 179

Capital stock requirements of banks and trust

companies ............................................................................... AB 409

State banks - capital stock ...................................................... AB 538

Licensing and regulation of trust com panies......................... AB 410

Banking corporations as executors, administrators,

and guardians ........................................................................ SB 167

State Board of Finance ............................................................. AB 94

N EW H A M P S H IR E 

Small Business Administration - participation loans by

cooperative banks and building and loan associations . . SB 72 

Unsecured loans of cooperative banks and building and

loan associations ................................................................. SB 77

Real estate loans of building and loan associations

and cooperative banks ........................................................ HB 304

Appeals in proceedings relating to banks ............................. HB 619

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Federal Reserve Bank of St. Louis
Loans to members of credit and supervisory

committees of credit u n io n s ............................................... HB 511

Investment of State funds in savings bank d e p o sits ......... HB 330

Qualifications of bank officials ............................................... HB 248

Bank Advisory Board ................................................................. HB 790

Legal investments for building and loan associations .... SB 73 

Merger or consolidation of cooperative banks, savings 

and loan associations, building and loan associations,

Federal savings and loan associations, and mutual

savings banks ............................................................... HB 766

Powers of attorney regarding bank a cco u n ts ...................... HB 305

Savings bank loans .................................................................... HB 696

Investments of town trustees ................................................. HB 749

Second mortgage loans ............................................................. HB 755

Savings bank deposits ............................................................. HB 697

Savings bank investments ........................................................ HB 693

Conversion between cooperative banks, savings and loan

associations, and mutual savings ba n ks............................. SB 196

Use of nominees by savings banks ...................................... HB 679

Amendments to charters of Strafford Savings Bank and

Cheshire County Savings B a n k ............................................. HB 470

Investment by banks of savings d e p o sits ............................. HB 386

NEW JE R S E Y

Operation of savings and loan associations ......................... SB 560

Regulation of bank holding companies .................................. SB 517

Savings and loan association investments and

participations in mortgage loans ...................................... AB 600

Taxation of stock of banks and trust com panies................ AB 840

Amendments to Higher Education Assistance Authority

Law .......................................................................................... AB 598

Capital loans to businessm en................................................. SB 287

Savings and Loan Act amendments ...................................... SB 520

AB 988

Bank stock ownership ............................................................... SB 942

AB 679

General revision of laws regarding banking and banking

institutions ............................................................................... SB 240

AB 432

AB 677

Consumer credit transactions .................................................. AB 850

Legal holidays ............................................................................. SB 77

Interest limitations applicable to borrowings by public

authorities and agencies ...................................................... AB 1058

Uniform Consumer Credit Code Study Commission ........... AB 692

Bank loan limitations ............................................................... AB 993

NEW M E X IC O 

Accounts of deceased depositors in savings and loan

associations ............................................................................. SB 264

Credit cards ................................................................................. SB 112

Designation of agents for service of process on foreign

banks ........................................................................................ HB 279

STATE BANKING LEGISLATION— 1969 227

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228 FEDERAL DEPOSIT INSURANCE CORPORATION

Liability for unauthorized use of credit c a rd s ...................... HB 224

Banking and Financial Corporations Tax A c t ...................... HB 26

Securing deposits of public m o n e y ........................................ HB 118

General revision of laws relating to credit u n io n s ............. HB 196

Fees for examination of credit unions .................................. HB 254

Bank investment in banking premises .................................. HB 286

Uniform Consumer Credit Code study .................................. SM 32

N EW Y O R K

Special duties of credit union directors ............................... SB 1174

Payment of dividends or interest by savings b a n k s ........... SB 1638

AB 2396

AB 5644

Real property holdings of banks ............................................. SB 1640

Investments of savings and loan associations, savings

banks, and credit unions ...................................................... SB 1613

Secured loans by commercial banks .................................... SB 1635

Duties of credit committees of credit unions .................... AB 2052

General powers of credit unions ............................................. SB 1172

AB 2053

AB 2070

AB 2134

AB 2267

Dividends to shareholders of credit unions . . . . AB 2054

AB 2068

Personal loan departments of banks and trust companies . SB 1643

Changes of bank sh a re s............................................................. AB 2389

Maintenance of assets in New York by agencies of

foreign banking corporations ............................................. SB 2483

Investment of New York trusts in foreign common trust

funds ........................................................................................ SB 2434

Purchase of life insurance and annuity policies from

savings banks ........................................................................ SB 2043

Extension of credit to bank officers and d ire c to rs ............. AB 2395

Issuance of money by banks .................................................. AB 2992

Mortgage loans of savings banks and savings and loan

associations ............................................................................. SB 1614

Reports and statements required of licensed transmitters

of money ........... ..................................................................... AB 2398

Savings and loan association investments in securities . . SB 2507 

Issuance of certain obligations by savings and

loan associations .................................................... . . AB 2375

Expenses for examination of affiliates of bank

holding companies ............................................................... AB 5232

Federal funds transactions by banks, trust companies,

savings banks, and savings and loan associations .... AB 5250 

Investments of officers in capital notes or debentures

of banks and trust companies ........................................... SB 1639

“ Leeway" investments of savings banks and savings

and loan associations ........................................................... SB 2517

Purchases of securities by credit unions ............................. AB 2136

Disclosure of credit charges .................................................... SB 4778

SB 5281

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Federal Reserve Bank of St. Louis
STATE BANKING LEGISLATION— 1969 229

Prohibition against trust companies voting their own

stock held in trust ............................................................... AB 2391

Loans by banks, trust companies, and industrial banks . . AB 3148

Investment powers of mutual trust investment companies . AB 2332

Membership of credit u n io n s .................................................... AB 2135

Powers of banks, trust companies, and industrial banks . . AB 1032

Loans and investments of savings and loan associations AB 2138

Minimum charges on premium fin a n c in g ............................. AB 5810

Real property investments of savings banks and savings

and loan associations ........................................................ AB 3663

Liability of officers, directors, and stockholders of banking 

organizations owning a multiple dwelling declared a

public nuisance ...................................................................... AB 4773

Financing of cooperative apartments .................................... SB 2421

Retirement benefits for savings bank officers and

employees ............................................................................... SB 3981

Term loans by banks and private bankers ............................. SB 3752

Nondiscriminatory treatment of foreign savings

banks and savings and loan associations......... SB 4001

Unimproved real property loans of savings banks

and savings and loan associations .................................... AB 3181

Property improvement and equipment loans of savings

banks and savings and loan associations......................... SB 2495

Merger of savings banks and savings and loan

associations ............................................................................. SB 1075

Participation by savings banks in certain m ortgages......... SB 3696

Conversion of savings banks and savings and

loan associations .................................................................... AB 5740

Small loans ................................................................................. SB 3694

Time deposits of savings banks and savings

and loan associations .......................................................... SB 5579

General powers of savings banks and savings and loan

associations ............................................................................ AB 6180

Regulation of bank holding companies .................................. AB 6431

Taxation of banking corporations .................................... SB 5572

N O R T H C A R O L IN A 

Investment of public funds in privately insured savings

and loan associations ........................................................... HB 960

HB 962

Loans to bank officers ............................................................. HB 82

Powers, officers, and supervision of credit u n io n s ............. SB 156

State Banking Commission fees ............................................. HB 356

Real property and mobile home financing by savings and

loan associations .................................................................... SB 404

Right of survivorship with respect to bank de p o sits........... HB 967

Worthless check penalties ........................................................ HB 1260

Procedure of savings and loan associations for

accepting savings deposits .................................................. SB 403

Bank Taxation Study Commission ........................................ SJR 878

Excise tax payments of banks ............................................... SB 658

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

N O R T H D A K O T A

Par clearance of checks .......................................................... SB 128

Lending and investment powers of the Bank of North

Dakota ..................................................................................... SB 320

Bank installment loan charges ............................................... SB 256

Bank reserve requirements ...................................................... SB 147

Investment in loans and obligations secured by Federal

and State Governments ........................................................ SB 207

SB 209

Conversions into national banks - removals to new

locations ................................................................................. HB 113

Bank reports of income .......................................................... SB 299

Penalties and liabilities of bank employees for

overdrafts ............................................................................... HB 278

Liability for unauthorized use of credit cards .................... SB 345

Usury and maximum contract rates of in te re s t.................... HB 133

State examiner and appointment of deputies .................... HB 122

Restrictions on loans to and purchases from directors,

officers, and employees of State banks ........................... HB 445

General revision of laws relating to credit u n io n s ................ HB 191

State Banking Board - State Credit Union Board ................ SB 446

Capital notes of banking associations .................................. HB 108

Bad checks .................................................................................. HB 413

Bank reports to State exam iner........................................ HB 400

Management and control of State Department of

Banking and Financial In s titu tio n s ....................................SB 181

O H IO

Loans and investments of building and loan

associations ............................................................................ SB 44

Accounts of fiduciaries ............................................................. HB 176

Building and loan association drive-in and

pedestrian facilities ............................................................... SB 45

Administration and supervision of credit unions ................ SB 230

Exclusion of certain loans from usury la w s ......................... SB 233

Investment of public funds .................................................... SB 171

Investments in bank premises - loans to directorslicense fees for trust companies ...................................... HB 739

Conversion of building and loan associations .................... SB 340

Investment of public employees retirement fu n d s ................ SB 176

SB 408

Theft of credit cards ................................................................. SB 346

Legal holidays ............................................................................ HB 5

Consumer protection study .................................................... HR 74

O K L A H O M A

Interest on time deposits on surplus public fu n d s ................ HB 1129

Oklahoma Savings and Loan Act of 1969 ............................. SB 208

Preventing certain corporations from acting in

certain fiduciary capacities .................................................. HB 1337

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Federal Reserve Bank of St. Louis
STATE BANKING LEGISLATION— 1969 231

O R EG O N

Powers of banks and trust companies ........... . . . SB 133

HB 1603

Banking Division records ........................................................ SB 130

Fees for examination of banks and trust com panies......... SB 131

Insurers' deposits ...................................................................... SB 203

Death of depositors in financial in stitu tio n s ........................... SB 228

Conflicts of interest involving directors and officers of

mutual savings banks ........................................................ HB 1353

Branch banking .......................................................................... SB 134

Foreign banks, trust companies, and savings and loan

associations authorized to transact certain business . HB 1394

Investments of fiduciaries in stocks ...................................... HB 1329

P E N N S Y L V A N IA

Regulation of corporate fiduciary p o w e rs ............................. SB 603

Merger, consolidation, and conversion of

banks and savings banks .................................................... SB 761

Powers of savings and loan associations ............................. SB 755

Fiduciary powers of banks and trust companies ................ SB 854

R H O D E IS LA N D

Loan and investment companies - mortgage loans ........... HB 1763

Unauthorized banking business ............................................. HB 1979

Investments of credit unions ................................................. SB 685

Allowing successor banks to succeed to fiduciary

appointments .......................................................................... SB 758

Conversion of building and loan associations into

savings banks ........................................................................ HB 2036

Commercial bank investment in political subdivisions .... SB 757 

Investment of savings deposits in bank holding

companies ............................................................................... HB 1978

Rhode Island Share and Deposit Insurance Corporation . . HB 2037 

Tax on bank deposits - advance tax payment

by corporations ...................................................................... HB 1825

S O U TH C A R O L IN A 

Merger, consolidation, and transfer of assets

of banks and trust companies ........................................... SB 133

Investments by fiduciaries ...................................................... HB 1480

Memorializing a Congressional investigation of the

prime interest-rate increase ............................................... HB 1838

S O U TH D A K O T A

Corporations - claims of u s u ry ................................................. SB 90

Installment loan interest rates ............................................... HB 605

Powers of State-chartered savings and loan associations . HB 756

Codification and revision of banking la w s ........................... HB 606

T E N N E S S E E

Governor's Advisory Commission on Consumer Protection . HB 17

Legal rates of interest ............................................................. HB 201

Banking institutions - powers of attorney ............................. SB 407

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

State Credit Card Crime Act ................................................. SB 271

Veterans’ estates - savings and loan a cco u n ts .................... SB 496

Bad checks .................................................................................. HB 456

Deposit of public funds in savings and loan associations . SB 422

Depositories for State funds ................................................. SB 621

T E X A S

Consumer Credit Study Committee .................................... SCR 9-XX

Organization and regulation of credit unions .................... SB 317

Fees charged and received by the banking commissioner . HB 685 

Organization of Savings and Loan Section of

the Finance Commission ................................................... HB 739

Qualifications of directors of State banks ........................... SB 88

Qualifications of managing officers of savings

and loan associations .................................. . . HB 965

Acquisition of interest in investment trust

and mutual funds by trustees ...................... . . SB 466

Transfer of security - requirement of signature

guarantee ................................................................................. SB 469

Payment of wages - bad checks ........................................... SB 13

Credit card fraud ...................................................................... HB 1006

General revision of laws relating to savings

and loan associations ........................................ . . HB 397

State banks - examinations, stock option plans,

authority to make loans, and liabilities ........................... HB 684

Refunding bonds ........................................................................ SB 675

SB 676

U T A H

Consumer credit transactions . ............................... HB 9-X

Fraudulent credit d e vice s.......................................................... HB 12

Drafts or orders against insufficient fu n d s .................... HB 10

HB 11

Creation and regulation of public transit districts ............. SB 4-X

Loans to bank officers ............................................................... SB 99

Saturday closing for banks . ....................................................... SB 100

V E R M O N T

Regulation of credit unions ...................................................... HB 31

Regulation of financial institutions ........................................ HB 173

Savings and Loan Law ............................................................. HB 198

W A S H IN G T O N

Dishonored checks ...................................................................... HB 196

Interest on judgments ............................................................... SB 121

Regulation of credit unions .................................................... HB 301

Incorporation of savings and loan associations ................ HB 282

Mutual savings bank powers, payment of deposits

and interest thereon ........................................................ .. . HB 131

State regulation of financial institutions ............................. HB 333

State fiscal agencies ............................................................... SB 205

Insurance Premium Finance Company Act ......................... SB 648

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Federal Reserve Bank of St. Louis
STATE BANKING LEGISLATION— 1969 233

Financial interest reports required of public

officers and employees ...................................................... ...SB 629

Investment of retirement funds ............................................. HB 425

Business and occupation taxes payable by banks . . SB 196

W E ST V IR G IN IA 

Powers, privileges, authorities, and duties

of building and loan associations .................................... HB 716

State Banking Code of West V irg in ia ...................................... ..SB 176

Interest charges on installment loans ......................................SB 221

Fraudulent use of credit c a rd s ................................................. ..SB 244

Investments of fiduciaries ........................................................ ..SB 248

W IS C O N S IN 

Loan limitations applicable to savings

and loan associations ......................... . . AB 99

Deficiency appropriations for school aid

and veteran’s housing loans ............................................... ..AB 747

State finances and appropriations ........................................ ..SB 95

Loans and investments of savings

and loan associations .......................................................... ..SB 252

Limitation of actions for payment of cashier’s checks .... AB 695

Payment of dividends by savings and loan associations . . . AB 558 

Judicial review of actions of credit

union review boards ...............................................................SB 255

Powers of savings and loan associations ............................. ..SB 253

Dividends of central credit u n io n s .............................................SB 380

State Bond Board ........................................................................SB 655

Savings and loan accounts ........................................................ ..SB 254

W Y O M IN G 

Removal of officers of and issuance of

cease-and-desist orders against banks .............................HB 129

Payment of bank deposits ......................................................HB 20

Interest rates on installment loans ........................................ ..SB 9

Bank and trust company records as evidence.................... ..HB 50

Deposit of collateral security by State depositories ...........HB 246

Temporary emergency rules of State examiner

regarding banking activities ................................................. .SB 14

Amount of permanent land funds invested in farm loans . . SB 38

Interest charges of the Farm Loan Board ............................. .SB 138

Authority of State examiner to examine bank

holding companies ............................................. . . SB 49

Study of capitalization and ad valorem tax

structure of banks ...................................... . . HB 343

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Federal Reserve Bank of St. Louis
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Federal Reserve Bank of St. Louis
STATISTICS OF BANKS

AND DEPOSIT INSURANCE

PART FOUR

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Federal Reserve Bank of St. Louis
NUMBER OF BANKS AND BRANCHES

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

States (States and other areas) during 1969 

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

(States and other areas) during 1969, by State 

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

December 31, 1969 

Grouped according to insurance status and class of bank, and by State or

area and type of office

Table 104. Number and deposits of all commercial and mutual savings banks (States and 

other areas), December 31, 1969 

Grouped by class and deposit size

Tabulations for all banks are prepared in accordance with an 

agreement among the Federal bank supervisory agencies. Provision of deposit facilities for the general public is the chief 

criterion for distinguishing between banks and other types of 

financial institutions. However, trust companies engaged in general fiduciary business though not in deposit banking are included; 

and credit unions and savings and loan associations are excluded 

except in the case of a few which accept deposits under the 

terms of special charters.

Branches include all offices of a bank other than its head office, 

at which deposits are received, checks paid, or money lent. Banking facilities separate from a banking house, banking facilities 

at government establishments, offices, agencies, paying or receiving stations, drive-in facilities and other facilities operated for 

limited purposes are defined as branches under the Federal 

Deposit Insurance Act, Section 3(o), regardless of the fact that in 

certain States, including several which prohibit the operation of 

branches, such limited facilities are not considered branches 

within the meaning of State law.

236 FEDERAL DEPOSIT INSURANCE CORPORATION

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Federal Reserve Bank of St. Louis
Commercial banks include the following categories of banking 

institutions:

National banks;

Incorporated State banks, trust companies, and bank and trust 

companies, regularly engaged in the business of receiving 

deposits, whether demand or time, except mutual savings banks;

Stock savings banks, including guaranty savings banks in New 

Hampshire;

Industrial and Morris Plan banks which operate under general 

banking codes, or are specifically authorized by law to accept 

deposits and in practice do so, or the obligations of which are 

regarded as deposits for deposit insurance;

Special types of banks of deposit; a cash depository in South 

Carolina; regulated certificated banks, and a savings and loan 

company operating under Superior Court charter, in Georgia; 

government-operated banks in North Dakota and Puerto Rico; a 

cooperative bank, usually classified as a credit union, operating 

under a special charter in New Hampshire; a savings institution, 

known as a “ trust company," operating under special charter in 

Texas; an employee's mutual banking association in Pennsylvania; 

the Savings Banks Trust Company in New York; and branches of 

foreign banks engaged in a general deposit business in New York, 

Oregon, Washington, Puerto Rico, and Virgin Islands.

Private banks under State supervision, and such other private 

banks as are reported by reliable unofficial sources to be engaged 

in deposit banking.

Nondeposit trust companies include institutions operating 

under trust company charters which are not regularly engaged in 

deposit banking but are engaged in fiduciary business other than 

that incidental to real estate title or investment activities.

Mutual savings banks include all banks operating under State 

banking codes applying to mutual savings banks.

Institutions excluded. Institutions in the following categories 

are excluded, though such institutions may perform many of the 

same functions as commercial and savings banks;

Banks which have suspended operations or have ceased to 

accept new deposits and are proceeding to liquidate their assets 

and pay off existing deposits;

Building and loan associations, savings and loan associations, 

credit unions, personal loan companies, and similar institutions, 

chartered under laws applying to such institutions or under general incorporation laws, regardless of whether such institutions 

are authorized to accept deposits from the public or from their 

members and regardless of whether such institutions are called 

“ banks" (a few institutions accepting deposits under powers 

granted in special charters are included);

Morris Plan companies, industrial banks, loan and investment 

companies, and similar institutions except those mentioned in the 

description of institutions included;

Branches of foreign banks, and private banks, which confine 

their business to foreign exchange dealings and do not receive 

“ deposits" as that term is commonly understood;

Institutions chartered under banking or trust company laws, but 

operating as investment or title insurance companies and not 

engaged in deposit banking or fiduciary activities;

Federal Reserve Banks $nd other banks, such as the Federal 

Home Loan Banks and the Savings and Loan Bank of the State of 

New York, which operate as rediscount banks and do not accept 

deposits except from financial institutions.

NUMBER OF BANKS AND BRANCHES 237

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Federal Reserve Bank of St. Louis
Table 101. CHANGES IN NUMBER AND CLASSIFICATION OF BANKS AND BRANCHES IN THE UNITED STATES (STATES AND OTHER

AREAS) DURING 1969

All banks Commercial banks and nondeposit trust companies Mutual savings banks

Insured Noninsured

Type of change

Total

Insured

Noninsured Total

Total

Members F.R. 

System

Not

members

F.R.

System

Banks

of

deposit

Nondeposit

trust

companies1

Total

Insured

Noninsured

National State

ALL BANKING OFFICES

Number of offices, December 31, 19692...................................................... 35,582 34,959 623 34,099 33,821 16,428 4,683 12,710 221 57 1,483 1,138 345

Number of offices, December 31, 19682 .......................................... 34,330 33,716 614 32,920 32,643 15,741 4,827 12,075 219 58 1,410 1,073 337

Net change during y e a r............................................................................... +1 ,25 2 + 1 ,24 3 + 9 + 1,179 + 1,178 +687 -1 4 4 +6 35 + 2 - 1 + 7 3 + 6 5 + 8

Offices opened............................................................................................. 1,499 1,467 32 1,416 1,393 656 189 548 22 1 83 74 9

Banks ......................................................................................... 137 117 20 135 115 16 7 92 19 1 2 2

Branches ..........................................................................................*. 1,362

247

1,350

241

12 1,281 1,278 640 182 456 3 81 72 9

Offices closed............................................................................................... 6 238 233 94 44 95 4 1 9 8 1

Banks........................................................................................................ 158 152 6 152 147 49 23 75 4 1 6 5 1

Branches 89 89 86 86 45 21 20 3 3

Change in classification + 17

+ 17

-1 7 + 1 + 18 + 125 -2 8 9 + 182 - 1 6 - 1 - 1

Among banks -^17 + 17 -1 4 - 4 4 + 7 5 - 1 6 —1

Among branches + 1 + 1 + 139 -2 4 5 + 107 - 1 - 1

BANKS

Number of banks, December 31,1969 ........................................................ 14,178 13,804 374 13,681 13,473 4,669 1,201 7,603 159 49 497 331 166

Number of banks, December 31, 1968.......................................................... 14,199 13,822 377 13,698 13,488 4,716 1,261 7,511 160 50 501 334 167

Net change during year .............................................................................. - 2 1 - 1 8 - 3 - 1 7 - 1 5 -4 7 - 6 0 + 9 2 - 1 - 4 - 3 - 1

Banks beginning operation ............................................................... 137 117 20 135 115 16 7 92 19 1 2 2

New banks ..................................... 132 117 15 130 115 16 7 92 15 2 2

Banks added to count5 5 5 5 4 1

Banks ceasing operation.......................................................................... 158 152 6 152 147 49 23 75 4 1 6 5 1

Absorptions, consolidations, and mergers (without FDIC a id )___

Closed-financial difficulties

153

4

148

4

5 147

4

143

4

472

221741

3 1 6 5 1

Other liquidations................................................................................... 1 1 1 1

238 FEDERAL DEPOSIT INSURANCE CORPORATION

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Federal Reserve Bank of St. Louis
Noninsured banks becoming insured..................

Other changes in classification............................

National succeeding State bank............................

State succeeding national bank.............................

Admission of insured bank to FRS.......................

Withdrawal from FRS with continued insurance. 

Insured bank becoming noninsured bank...........

Changes not involving number in any c la s s ...

Change in title ..........................................................

Change in location....................................................

Change in title and location...................................

Change in name of location....................................

Change in location within c ity ................................

Changes in corporate powers.............................................

Converted to commercial banking....................................

Granted trust powers (State nonmember banks only).

BRANCHES

Number of branches, December 31, 19692..............................

Number of branches, December 31, 19682..............................

Net change during y e a r............................................................

Branches opened for business.............................

Facilities designated by Treasury......................

Absorbed banks converted to branches.............

Branches replacing head offices relocated........

New branches.........................................................

Branches and/or facilities added to count3.......

Branches discontinued...........................................

Facilities designated by Treasury......................

Branches..................................................................

Branches and/or facilities deleted from count.

Other changes in classification.....................................................

Branches changing class as a result of conversion....................

Branches transferred through absorption, consolidation, or merger 

Branches of insured banks, withdrawing from FRS..................

Changes not involving number in any class.............................

Changes in operating powers of branches..................................

Branches transferred through absorption, consolidation, or merger 

Changes in title, location, or name of location...........................

247

17

18 10

279

1

68

21.404

20,131

+ 1,273

1,362

4

13220

1,19412

896

776

191

460

+ 18

- 1

245

17

18 8

278

1

68

21.155

19.894

+ 1.261

1.350

4

13020

1,18511

896

776

190

459

- 1 8

+ 1

+ 1

249

237

+ 12

12

.....2

237

17

18 10

274

1

67

20,418

19,222

+ 1,196

1,281

4

128

19

1,11911

866

746

+ 1

+ 1

180

439

+ 18

- 1

- 1

237

17

18 8

273

1

67

20,348

19,155

+ 1,193

1,278

4

127

19

1,11711

866

746

+ 1

+ 1

180

439

- 1 4

+ 16 

- 3 0

11,759

11,025

+ 734

640

3

688

556

5

456

381

+ 139

+ 110

+ 29

6

117

241

+ 2

- 4 6 -8

+ 3 

+ 1

-4 1 - 1

3,482

3,566

- 8 4

182

122

168

21

-245

-187

-11

-4 7

+ 16

+ 59 -8

+ 27 - 1

+ 41

122

5

9

5

185

1

67

5.107

4,564

+ 543

4561

47

9

3936

20

" ' 15 

5

+ 107

+ 77 

-1 7 

+ 4 7

2

54

140

- 1 7

+ 1

+ 1

10

62

59

+ 3

3

....

2

986

909

+ 77

81

' " 4

1

751

807

739

+ 6 8

72

" “ 3 1

68

179

170

+ 9

9

1121 1020

1 Includes one trust company member of the Federal Reserve System.

2 Includes facilities established at request of the Treasury or Commanding Officer of Government installations, and also a few seasonal branches that were not in operation as of December 31.

3 Offices opened prior to 1969 but not included in count as of December 31, 1968.

NUMBER OF BANKS AND BRANCHES 239

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Federal Reserve Bank of St. Louis
Table 102. CHANGES IN NUMBER OF COMMERCIAL BANKS AND BRANCHES IN THE UNITED STATES 

(STATES AND OTHER AREAS) DURING 1969, BY STATE

State

In operation

Dec. 31, 1969

Banks Branches

Dec. 31, 1968

Banks Branches

Net change 

during 1969

Banks Branches

Beginning operation in 1969

Banks

New Other

Branches

New Other

Ceasing operation in 1969

Banks

Absorptions Other

Branches

Branches Other

Total United States 

50 States and D .C ...

O ther A re a s ............

State

Alabama....................

Alaska..........................

Arizona........................

Arkansas.....................

California....................

Colorado......................

Connecticut.................

Delaware.....................

District of Columbia. 

Florida.........................

Georgia........................

Hawaii..........................

Idaho............................

Illinois..........................

Indiana........................

Iow a.............................

Kansas.........................

Kentucky.....................

Louisiana.....................

Maine...........................

M aryland.....................

Massachusetts............

Michigan......................

Minnesota....................

M ississippi..................

M issouri.......................

Montana............ ..........

Nebraska.....................

Nevada........................

New Hampshire.........

13,681

13,661

20

2681012

249

155

267

62

19

14

475

43311

26

1,088

410

668

603

345

231

44

122

161

332

724

181

668

136

4428

76

20,418

20,197

221

247

59

299

155

2,900

12

405

79 100

29

270

129

149

74

601

298

61

306

359

209

491

713

1,15310

321

85

5

39

81

52

13,698

13,678

20

26812

13 

248 

162

25766

19

14 

461

42811

26

1,074

415

673

601

346

229

43

122

158

338

723

185

667

135

441

9

77

19,222

19,013

209

236

55

278

141 

2,793

10

375

78 100

25

248

123

142 

45

576

282

61

286

329

200

469

683 1,10110

296

85

5

37

78

41

-1 7

- 1 7

N.A.

N.C. -2

- 1

+1

- 7

+10

- 4

N.A.

N.A.

+14

+ 5

N.A.

N.A.

+14

- 5

- 5

+2- 1+2

+1

N.C.

+ 3 -6

+1

- 4

+1 +'1 +1-1- 1

+1,196

+1,184

+12

+11

+ 4 +21

+14

+107

+2

+30

+1

N.C.

+ 4

+ 2 2

+6

+ 7

+29

+25

+16

N.C. + 20

+30

+ 9

+22

+30

+52

N.A.

+25

N.C.

N.C. +2

+ 3 +11

130

129

1,130 152 147

1,119 151 146

11 1 1

10 1 1

3 2 2

21 2 2

15

99 11 10

2 1

27 4 4

2

1

3 1

23 2 2

8

8

29 3

21 5 6

17 4 4

1 1

20 2 1

30 1

10

19 3 2

32 1 1

48 10 8

24 4 4

3 1

1

3

2 1 1

7 4 4

74

74

12

12

240 FEDERAL DEPOSIT INSURANCE CORPORATION

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Federal Reserve Bank of St. Louis
New Jersey............................... 228 891 229 797 - 1 + 94

+ 7

12

1

84 14 13 3 1

New Mexico............................... 64 121 63 114 + 1

+ 1

-1 2

7

New York................................... 320 2,298

1,016

68

319 2,214

930

+84 4 92 3 3 10 1

North Carolina.......................... 109 121 +86 1 75 13 13 2

North Dakota............................ 169 169 69 N.A. - 1 1

O hio............................................ 521 1,217

58

525 1,130

55

- 4 +87 1 82 9 5 4

Oklahoma.................................. 426 424 + 2 + 3 2 3

Oregon....................................... 51 319 50 307 + 1 +12 2 10 2 1

Pennsylvania............................ 492 1,616

161

509 1,519

158

-1 7 +97

+ 3

1 85 18 18 6

Rhode Island............................ 13 13 N.A. 6 3

South Carolina.......................... 105 380 118 351 - 1 3 +29 20

1

13 13 4

South Dakota............................ 163 94 165 91 - 2 + 3 2 2

Tennessee................................. 305 449 303 417 + 2 +32 2 33 1

Texas.......................................... 1,166

51

67 1,151

54

63 + 15

- 3

+ 4

+11

20 6 2 3 1 1

Utah............................................ 126 115 7 4 3

Verm ont..................................... 44 78 45 71 - 1 + 7 6 1 1

V irginia...................................... 233 765 237 709 - 4 +56 4 49 8 8 1

Washington............................... 92 523 94 487 - 2 + 36 1

+ 1

2 33 5 4 1

West V irginia............................ 195 5 195 4 N.A. 1

Wisconsin................................... 604 252 603 223 + 1 +29 3 29 1 2 1

Wyoming.................................... 70 2 70 1

i" '

N.A. + 1 1

O ther Areas

Pacific Islands.......................... 16 1

i

; n - 1 + 3 2 1 1

Panama Canal Zone................ 2 2 N.A. N.A.

Puerto Rico............................... 13 183 12 175 + 1 + 8 1 8

Virgin Islands........................... 7 20 7 r N.A. + 1 1

N.A. = No Activity 

N.C. = No Change

NUMBER OF BANKS AND BRANCHES 241

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Federal Reserve Bank of St. Louis
Table 103. NUMBER OF BANKING OFFICES IN THE UNITED STATES (STATES AND OTHER AREAS), DECEMBER 31, 1969

GROUPED ACCORDING TO INSURANCE STATUS AND CLASS OF BANK, AND BY STATE OR AREA AND TYPE OF OFFICE

State and type of bank 

or office

A ll banks Commercial banks and nondeposit trust companies Mutual savings banks Percentage insured1

Total

InsuredNoninsured

Insured Noninsured

Total

Insured

Noninsured

All

banks

of

deposit

Commercial

banks

of

deposit

Mutual

savings

banks

Total

Members F. R. 

System

Not 

members 

F. R. 

System

Banks 

of deposit2

Nondeposit

trust

comNa­ panies3

tional State

U nited States— all o ffic e s ...................... 35,582 34,959 623 34,099 33,821 16,428 4,683 12,710 221 57 1,483 1,138 345 98.4 99.4 76.7

Banks......................................................... 14,178 13,804 374 13,681 13,473 4,669 1,201 7,603 159 49 497 331 166 97.7 98.8 66.6

Unit banks.................................................. 10,017 9,752 265 9,811 9,627 3,032 752 5,843 140 44 206 125 81 97.8 98.6 60.7

Banks operating branches....................... 4,161 4,052 109 3,870 3,846 1,637 449 1,760 19 5 291 206 85 97.5 99.5 70.8

Branches.................................................... 21,404 21,155 249 20,418 20,348 11,759 3,482 5,107 62 8 986 807 179 98.9 99.7 81.8

50 States and D.C.— all o ffic e s ............. 35,340 34,750 590 33,858 33,613 16,384 4,683 12,546 189 56 1,482 1,137 345 98.5 99.4 76.7

Banks......................................................... 14,157 13,794 363 13,661 13,464 4,668 1,201 7,595 149 48 496 330 166 97.8 98.9 66.5

Unit banks.................................................. 10,007 9,750 257 9,802 9,626 3,032 752 5,842 133 43 205 124 81 97.9 98.6 60.5

Banks operating branches....................... 4,150 4,044 106 3,859 3,838 1,636 449 1,753 16 5 291 206 85 97.6 99.6 70.8

Branches.................................................... 21,183 20,956 227 20,197 20,149 11,716 3,482 4,951 40 8 986 807 179 99.0 99.8 81.8

O ther Areas— all o ffic e s ......................... 242 209 33 241 208 44 164 32 1 1 1 86.7 86.7 100.0

Banks......................................................... 21 10 11 20 9 1 8 10 1 1 1 50.0 47.4 100.0

Unit banks.................................................. 10 2 8 9 1 1 7 1 1 1 22.2 12.5 100.0

Banks operating branches 11 8 3 11 8 1 7 3 72.7 72.7

Branches 221 199 22 221 199 43 156 22 90.0 90.0

State

Alabama— all offices 515 515 515 515 265 34 216 100.0 100.0

Banks 268 268 268 268 88 21 159 100.0 100.0

Unit banks 188 188 188 188 47 15 126 100.0 100.0

Banks operating branches 80 80 80 80 41 6 33 100.0 100.0

Branches 247 247 247 247 177 13 57 100.0 100.0

Alaska— all offices .. .. 71 70 1 69 68 58 10 1 2 2 98.6 98.6 100.0

Banks......................................................... 12 11 1 10 9 5 4 1 2 2 91.7 90.0 100.0

Unit banks. . ............................. 5 4 1 3 2 2 1 2 2 80.0 66.7 100.0

Banks operating branches 7 7 7 7 5 100.0 100.0

Branches ....................................... 59 59 59 59 53 6 100.0 100.0

Arizona— all offices 311 311 311 311 207 19 85 100.0 100.0

Banks 12 12 12 12 4 1 7 100.0 100.0

Unit banks 5 5 5 5 2 3 100.0 100.0

Banks operating branches 7 7 7 7 2 1 4 100.0 100.0

Branches 299 299 299 299 203 18 78 100.0 100.0

Arkansas— all offices 404 401 3 404 401 147 32 222 2 1 99.5 99.5

Banks 249 246 3 249 246 68 12 166 2 1 99.2 99.2

Unif banks 169 166 3 169 166 35 5 126 2 1 98.8 98.8

Banks operating branches 80 80 80 80 33 7 40 100.0 100.0

Branches.................................................... 155 155 155 155 79 20 56 100.0 100.0

242 FEDERAL DEPOSIT INSURANCE CORPORATION

Digitized for FRASER 

http://fraser.stlouisfed.org/ 

Federal Reserve Bank of St. Louis
C alifornia— all o ffices.........

Banks.................................... Unit banks........................... Banks operating branches.

Branches................................

Colorado— all offices............

Banks...................................... Unit banks........................... Banks operating branches. 

Branches..............................

Connecticut— all o ffic e s ...

Banks...................................... Unit banks........................... Banks operating branches.

Branches..............................

Delaware— all offices........

Banks.................................... Unit banks......................... Banks operating branches

Branches..............................

D.C.— all offices...................

Banks.................................... Unit banks......................... Banks operating branches

Branches..............................

Florida— all offices...............

Banks.................................... Unit banks......................... Banks operating branches

Branches...............................

Georgia— all o ffices............

Banks.................................... Unit banks......................... Banks operating branches

Branches...............................

Hawaii— all offices.............

Banks.................................... Unit banks........................... Banks operating branches

Branches..............................

Idaho— all offices................

Banks....................................

Unit banks......................... Banks operating branches

Branches...............................

3,043 12 3,055 3,043 2,399

148 7 155 148 68 26 5 31 26 12 122 2 124 122 56

2,895 5 2,900 2,895 2,331

235 44 279 235 127

223 44 267 223 120 212 44 256 212 114 11 11 11 6

12 12 12 7

669

3 467 464 229

128

3 62 59 27

44

3 20 17

7

84 42 42 20

541 405 405 202

110 98 98

8

21 19 19

5

10 10 10

3

11

9

9

2

89 79 79 3

114 114 114 77

141

141

141

111

13 13 13 10

100 100 100 66

499

5 504 499 221

470

5 475 470 209 445 5 450 445 198 25 25 25 11

29 29 29 12

693 10 703 693 221

423 10 433 423 60 326 10 336 326 30 97 97 97 30

270 270 270 161

135 5 140 135 8

7 4 11 7

1

3

3

7 1 8

7

1

128 1 129 128

7

175 175 175 115

26 26 26

8

12 12 12

3

J A 14

H

5

149 149 149 107

3,055

155

31

124

2,900

279

267

256

1112

672

131

47

84

541

11021

10

11

89

114

141

IS 100

504

475

45025

29

703

433

33697

270

1401138

129

175

26

12

14

149

2799

' ’ 9

270

18

17

1611

1164

" " 4 112

362

34

281

’ 1

27

109811

511257

39

3374

26

365

71

1457

294

9086

8244

119

28

10

18

91

541275

4292

268

252

239

13

16

421

351

291

60

70

12766

121

27115

12 100.0 100.0 7 100.0 100.0 5 100.0 100.0 2 100.0 100.0 5 100.0 100.0

44 84.2 84.2

44 83.5 83.5

44 82.8 82.8

100.0 100 0

100.0 100.0

2 1 205 205 99.7 99.6 100.0

2 1 69 69 98.5 96.7 100.0 2 1 27 27 95.7 89.5 100.0 42 42 100.0 100.0 100 0

136 136 100.0 100.0 100.0

100.0

100.0

12 12 100.0 100.0 2 2 100.0 100.0

100.0 100.0 2 2 100.0 100 0 100 0

10 10 100.0

100.0

100.0

100.0

100.0

100.0 100.0

100.0 100.0

100.0 100.0

100.0 100.0

23 99.6 99.6

2

3 99.6 99.6

2

3 99.6 99.6

100.0 100.0

100.0 100.0

10 98.6 98.6

10 97.7 97.7 10 97.0 97.0

100.0 100.0

100.0 100.0

5 100.0 100.0 4 100.0 100.0 31 100.0 100.0 1 100.0 100.0

100.0 100.0

100.0 100.0

100.0 100.0

100.0 100.0

100.0 100.0

NUMBER OF BANKS AND BRANCHES 243

Digitized for FRASER 

http://fraser.stlouisfed.org/ 

Federal Reserve Bank of St. Louis
Table 103. NUMBER OF BANKING OFFICES IN THE UNITED STATES (STATES AND OTHER AREAS),

DECEMBER 31, 1969—CONTINUED

GROUPED ACCORDING TO INSURANCE STATUS AND CLASS OF BANK, AND BY STATE OR AREA AND TYPE OF OFFICE

All banks Commercial banks and nondeposit trust companies Mutual savings banks Percentage insured1

State and type of bank 

or office

Insured Noninsured

All

banks

of

deposit

Commercial

banks

of

deposit

Total

Insured

Noninsured Total

Total

Members F. R. 

System

Not 

members 

F. R. 

System

Banks 

of deposit2

Nondeposit

trust

companies3

Total

InsuredNoninsuredMutual

savings

banks

National State

Illin o is — all o f f ic e s ............................. 1,162

1,088

1,01771

1,159

1,085

1,01471

3 1,162 1,159

1,085

1,01471

467 89 603 1

1

2 99.9 99.9

Banks......................................................... 3 1,088

1,01771

418 83 584 2 99.9 99.9

3 372 77 565 1 99.9 99.9

Banks operating branches....................... 46

49

6 19 100.0 100.0

Branches 74 74 74 74 6 19 100.0 100.0

Indiana— all o ffic e s .................................. 1,015

414

1,012

411

3 1,011 1,008 441 133 434 2 1 4 4 99.8 99.8 100.0

Banks......................................................... 3 410 407 122 69 216 2 1 4 4 99.5 99.5 100.0

Unit banks.................................................. 223 220 3 219 216 51 43

26

122 2 1 4 4 99.1 99.1 100.0

Banks operating branches 191 191 191 191 71 94 100.0 100.0

Branches . . . . 601 601 601 601 319 64 218 100.0 100.0

Iowa—all offices 966 956 10 966 956 150 78 728 9 1 99.1 99.1

Banks. .................................... 668 658 10 668 658 100 54 504 9 1 98.7 98.7

Unit banks 454

214

298

4U

214

298

10 454

214

298

4 U

214

298

61 37 346 158

9 1 98.0 98.0

Banks operating branches 39 17 100.0 100.0

Branches 50 24 224 100.0 100.0

Kansas— all offices 664 663 1 664 663 201 44 418 1 99.8 99.8

Banks ................................................. 603 602 1 603 602 172 37 393 1 99.8 99.8

Unit banks 54459 54359 1 54459

61

54359

61

14527

29

30 368 1 99.8 99.8

Banks operating branches 7 25 100.0 100.0

Branches 61 61 7 25 100.0 100.0

K entucky— all offices 651 646 5 651 646 216 61 369 5 99.2 99.2

Banks .................... 345 340 5 345 340 80 14 246 5 98.6 98.6

Unit banks....................................... 212 207 5 212 207 36 6 165 5 97.6 97.6

Banks operating branches 133 133 133 133 44 8 81 100.0 100.0

Branches 306 306 306 306 136 47 123 100.0 100.0

Louisiana— all offices 590 589 1 590 589 215 47 327 1

1

99.8 99.8

Banks 231 230 1 231 230 49 10

1

171 99.6 99.6

Unit banks 108 107 1 108 107 15 91 1 99.1 99.1

Banks operating branches 123 123 123 123 34 9 80 100.0 100.0

Branches 359 359 359 359 166 37 156 100.0 100.0

244 FEDERAL DEPOSIT INSURANCE CORPORATION

Digitized for FRASER 

http://fraser.stlouisfed.org/ 

Federal Reserve Bank of St. Louis
Maine— all offices...............

Banks.................................... Unit banks........................... Banks operating branches

Branches..............................

Maryland— all offices..........

Banks.................................... Unit banks........................... Banks operating branches

Branches................................

Massachusetts—-all offices

Banks.................................... Unit banks........................... Banks operating branches

Branches4............................

Michigan— all o ffices.........

Banks.................................... Unit banks.......................... Banks operating branches.

Branches..............................

Minnesota— all offices........

Banks...................................

Unit banks........................... Banks operating branches

Branches..............................

Mississippi— all o ffic e s ...

Banks.................................... Unit banks........................... Banks operating branches.

Branches...............................

Missouri— all offices............

Banks.................................... Unit banks........................... Banks operating branches,

Branches..............................

Montana— all offices............

Banks...................................... Unit banks........................... Banks operating branches.

Branches................................

Nebraska— all offices..........

Banks.................................... Unit banks........................... Banks operating branches.

Branches................................

301 7 253 247 114

72 4 44 41 21

24

3 10 8

4

481 34 33 17

229

3 209 206 93

653

8 613 605 291

1261 122 12 1 47

47 47 47 13

79 1 75 74 34

527

7 491 484 244

909 352 874 866 493

164 170 161 156 86

39 83 40 37 21

125 87 121 119 65

745 182 713 710 407

1,481 4 1,485 1,481 633

3302 332 330 98

132 1 133 132 26

198 1 199 198 72

1,151

2 1,153 1,151 535

732

3 734 731 203

722

3 724 721 197

716 3 718 715 195 6 6 6 2

10 10 10 6

502 502 502 171

181 181 181 38

73 73 73

6

108 108 108 32

321 321 321 133

746

7 753 746 119

661

7 668 661 97

576 7 583 576 75

85 85 85 22

85 85 85 22

1401 141 140 50

1351 136 135 48

130

1 131 130 46

5

5

5

2

5 5

52

476 5 481 476 148

437 5 442 437 126

4005 405 400 105

37 37 37 21

39 39 39 22

308

76

27

49

232

661

127

4780

534

1,261

334

122

212

927

1,485

332

133

199

1,153

735

725 7196

10

502

18173

108

321

753

668 583

85

85

141

136

13155

481

442

40537

39

656

67716

60

174

16

" Y e

158

519

105

43

62

414

26

26

19615

13

89

73

57

16

16

43

41

3922

1312

1111

68

142

12

54

247

67

33

34

180

199

54

16

38

145

329

127

63

64

202

502

498

494

312

137

6671

175

538

491

444

47

47

47

46

4511

315

299

28415

16

6 55 54

1 97.7 97.6

3 32 31

1 94.7 93.2

2 17 16

1 88.9 80.0

1 15 15 98.0 97.1

3 23 23 98.7 98.6 8 48 48 98.8 98.7 1 5 5 99.2 99.2

100.0 100.0

1 ...........5 5 98.7 98.7

7 43 43 98.7 98.6 6 2 387 43 344 72.2 99.3 4 1 173 8 165 49.2 97.5 3 82 2 80 32.0 92.5

1 1 91

6 85 59.2 99.2

2

1 214 35 179 80.5 99.7

3 1 99.8 99.8 1 1 99.7 99.7 1 100.0 100.0 1 99.5 99.5 2 99.8 99.8 3 1 1 99.6 99.6 3 1 1 99.6 99.6 3 1 1 99.6 99.6

100.0 100.0

100.0 100.0

100.0 100.0

100.0 100.0

100.0 100.0

100.0 100.0

100.0 100.0

43 99.5 99.5

4

3 99.4 99.4

4

3 99.3 99.3

100.0 100.0

100.0 100.0

1 100.0 100.0 1 100.0 100.0 1 100.0 100.0

100.0 100.0

100.0 100.0

5 100.0 100.0 5 100.0 100.0 5 100.0 100.0

100.0 100.0

100.0 100.0

98.2

96.9

94.1

100.0

100.0

100.0

100.0

100.0

100.0

11.1

4.6

2.4

6.6

16.4

100.0

100.0

100.0

NUMBER OF BANKS AND BRANCHES 245

Digitized for FRASER 

http://fraser.stlouisfed.org/ 

Federal Reserve Bank of St. Louis
Table 103. NUMBER OF BANKING OFFICES IN THE UNITED STATES (STATES AND OTHER AREAS),

DECEMBER 31, 1969—CONTINUED

GROUPED ACCORDING TO INSURANCE STATUS AND CLASS OF BANK, AND BY STATE OR AREA AND TYPE OF OFFICE

All banks Commercial banks and nondeposit trust companies Mutual savings banks Percentage insu red1

State and type of bank 

or office

Insured Noninsured

All ComTotal

Insured

Noninsured Total

Total

Members F. R. 

System

Not 

members 

F. R. 

System

Banks 

of deposit2

Nondeposit

trust

companies3

Total

Insured

Noninsured

banks

of

demercial

banks

of

Mutual

savings

banks

National State

posit deposit

Nevada— all offices.................................... 89 89 89 89 61 15

1

13

3

1

100.0

100.0

100.0

100.0

100.0

100.0 Banks........................................................... 8

2

6

81

173

107

70

87

66

1,174

249

65

184

925

185

64

17

47

121

3,051

442

164 278

2,609

8

2

8

2

8

2

4

1

6

81

170

104

67

87

6 Q 3 i 2 100.0 100.0 Banks operating branches.......................

81

128

76

48

28

81 57 14 10 100.0 100.0

New Hampshire— all offices...................

Banks.'......................................................... Unit banks..................................................

3

3

3

125

73

4528

96

50

2723

2 27

22

18

3 45 45 98.3 97.7 100.0

1 3 31 31 97.2 96.1 100.0

3 22 22 95.7 93.8 100.0

1 4 9 9 100.0 100.0 100.0

100.0

R r a n r h o c 66 52 52 46 1 5 14 14 100.0 100.0

New Jersey— all offices...........................

Banks........................................................... Unit banks..................................................

1,172

247

63

184

925

2

2

2

1,119

22856

172

1,117

226

54 172

741

137

80 107

199

36

7

29

177

53

17

86

2 55 55 100.0 100.0 100.0

2 21 21 100.0 100.0 100.0

2 9 9 100.0 100.0 100.0

12 12 100.0 100.0 100.0

100.0

R r a n r h p c 891 891 604 163 124 34 34 100.0 100.0

New Mexico— all o ffices..........................

Banks...........................................................

185

6417

47

121

3,018

417

146 271

2,601

185

64

17

47

121

2,618

185

64

17

101

339

11

6

3

73

25

5

100.0

100.0

100.0

100.0

100.0

100.0

Banks operating branches.......................

Branches....................................................

New York— all offices...............................

Banks........................................................... Unit banks.................................................. Banks operating branches.......................

33

25

18

47

121

2,585

24

68

1,339

173

3

5

1 089

20

48

157

42

26

19

136

7 433 433

100.0

100.0

99.1

100.0

100.0

99.0 100.0

' 80 6 122 122 95.6 93.9 100.0 iL\}

134

186

2,298

Z j D

11 p 5 30 30 91.8 89.9 100.0 110 103

1,166

54

1,009

22 I 92 92 97.8 96.8 100.0 7

8

179

2,290 115 7 1 311 311 99.7 99.7 100.0

Branches4...................................................

North Carolina— all offices..................... 1,125 1,118 1,125 1,118 519

23

4

595

83

_

99.4

99.1

100.0

99.4 7 4 /

1

99.1 Banks........................................................... Unit banks ..................................

109

37

10837

1 109

37

108

37

2

1

100.0 98.6

99.4 Banks operating branches ....................

Branches......................................................

72

1,016

71

1,010

1

6

72

1,016

71

1,010

19

496

1

2

51

512

1

6

98.6

99.4

246 FEDERAL DEPOSIT INSURANCE CORPORATION

Digitized for FRASER 

http://fraser.stlouisfed.org/ 

Federal Reserve Bank of St. Louis
North Dakota— all o ffic e s ..

Banks...................................... Unit banks ......................... Banks operating branches.

Branches.................................

Ohio— all offices....................

Banks...................................... Unit banks........................... Banks operating branches.

Branches................................

Oklahoma— all offices..........

Banks...................................... Unit banks........................... Banks operating branches.

Branches................................

Oregon— all o ffices...............

Banks...................................... Unit banks........................... Banks operating branches.

Branches4..............................

Pennsylvania— all o ffic e s ..

Banks...................................... Unit banks........................... Banks operating branches.

Branches4..............................

Rhode Island— all o ffic e s ..

Banks...................................... Unit banks...........................

Banks operating branches.

Branches................................

South Carolina— all offices

Banks...................................... Unit banks........................... Banks operating branches.

Branches................................

South Dakota— all offices..

Banks......................................

Unit banks........................... Banks operating branches.

Branches................................

Tennessee— all offices........

Banks...................................... Unit banks...........................

Banks operating branches.

Branches................................

232

5 237 232 53

166 3 169 166 42 118 2 120 118 32 48 1 49 48 10

66

2 68 66 11

1,737 2 1,738 1,736 911

520 2 521 519 217 252 2 253 251 75 268 268 268 142

1,217 1,217 1,217 694

483

1 484 483 261

425 1 426 425 218 370 1 371 370 178 55 55 55 40

58 58 58 43

370

2 370 368 252

50

2 51 49 11 20 2 22 20 4

30 29 29

7

320 319 319 241

2,187 11 2,108 2,097 1,299

490 9 492 483 315 237 8 244 236 157 253 1 248 247 158

1,697

2 1,616 1,614 984

236 10 174 164 94

18 2 13 11

5

18 2 13 11

5

218

8 161 153 89

484

1 485 484 245

104

1 105 104 20

42

1 43 42

4

62 62 62 16

380 380 380 225

257 257 257 88

163 163 163 33 125 125 125 24 38 38 38 9

94 94 94 55

749

5 754 749 338

301

4 305 301 77 163 3 166 163 17 138 1 139 138 60

448 1 449 448 261

237

169

12049

68

1,739

522

254 268

1,217

484

426

37155

58

372

52

2230

320

2,198

499

245

254

1,699

246

20

’ ’ "2 0

226

485

105

43

62

380

257

163

125

38

94

754

305

166

139

449

64312

451

122

68

54

329

25

22

1933

258

27

1215

231

116335

29

25

2234

44

1165

33

173

120

83

37

53

374

180

108

72

194

197

185 173

12

12

116

38

16

22

78

540

141

67

74

399

706

64

228

78

3543

150

140

105

79

26

35

367

213

14073

154

6512

102

21

" l

1

90716

83

727

" 7

65

21

" l

1

90716

83

727

" 7

65

97.9 97.9

98.2 98.2

98.3 98.3

98.0 98.0

97.1 97.1

99.9

99.6

99.2

100.0

99.9

99.6

99.2

100.0

100.0

100.0

100.0

100.0 100.0

100.0 100.0

100.0 100.0

100.0 100.0 100.0 100.0

100.0 100.0

99.5

96.2

90.9

99.5

96.1

90.9

100.0

100.0

100.0

100.0

100.0

100.0

100.0

100.0

99.6

98.8 97.9

99.6

99.9

99.6

98.8 97.9

99.6

99.9

100.0

100.0

100.0

100.0

100.0

95.9

90.0

94.3

84.6

100.0

100.0

90.0

96.5

84.6

95.0

100.0

100.0

99.8 99.8

99.0 99.0 97.7 97.7 100.0 100.0

100.0 100.0

100.0 100.0

100.0 100.0

100.0 100.0 100.0 100.0

100.0 100.0

99.5 99.5

99.0 99.0

98.8 98.8 99.3 99.3

99.8 99.8

NUMBER OF BANKS AND BRANCHES 247

Digitized for FRASER 

http://fraser.stlouisfed.org/ 

Federal Reserve Bank of St. Louis
Table 103. NUMBER OF BANKING OFFICES IN THE UNITED STATES (STATES AND OTHER AREAS),

DECEMBER 31, 1969—CONTINUED

GROUPED ACCORDING TO INSURANCE STATUS AND CLASS OF BANK, AND BY STATE OR AREA AND TYPE OF OFFICE

All banks Commercial banks and nondeposit trust companies Mutual savings banks Percentage insured 1

State and type of bank 

or office

Insured Noninsured

All

banks

of

deposit

Commercial

banks

of

deposit

Total

InsuredNoninsured Total

Total

Members F. R. 

System

Not 

members 

F. R. 

System

Banks 

of deposit2

Nondeposit

trust

companies8

Total

Insured

NoninsuredMutual

savings

banks

National State

1,233

1,166

1,102

64

67

1,224

1,157

1,093

64

9 1,233

1,166

1,102

64

67

1,224

1,157

1,093

64

549 63 612 9 99.3 99.3

9 529 56 572 9 99.2 99.2

Unit banks 9 511 49 533 9 99.2 99.2

Banks operating branches 18 7 39 100.0 100.0

Branches 67 67 20 7 40 100.0 100.0

Utah—a ll offices 177 177 177 177 75 34 68 100.0 100.0

Banks 51 51 51 51 10 7 34 100.0 100.0

Unit banks 30 30 30 30 6 21 100.0 100.0

Banks operating branches 21 21 21 21 4

65

A 13 100.0 100.0

Branches 126 126 126 126 27 34 100.0 100.0

Verm ont— all offices 130

1

129 1 122 121 71 50 1 8 8 100.0 100.0 100.0

Banks ........................ 50 49 1 44 43 26 17 i 6 6 100.0 100.0 100.0

Unit banks 2426

23 1 20 19 12 7 1 4 4 100.0 100.0 100.0

Banks operating branches 26 24 24

78

U 10 2 2 100.0 100.0 100.0

Branches 80 80 78 45 33 2 2 100.0 100.0 100.0

V irg in ia __all offices 998 998 998 998 552 161 285 100.0 100.0

Banks 233 233 233 233 103 42 88 100.0 100.0

Unit banks 85 85 85 85 28 20 37 100.0 100.0

Banks operating branches 148

765

148

765

148

765

148

765

75 22 51 100.0 100.0

Branches 449 119 197 100.0 100.0

W ashington— all offices 674 673 1 615 614 445 45 124 1 59 59 99.9 99.8 100.0

Banks 101 100 1

1

92 91 27 8 56 1 9 9 99.0 98.9 100.0

Unit banks 4556 4456

43

49

523

42 11 3 28 1 2 2 97.8 97.7 100.0

Banks operating branches 49

523

16 5 28 7 7 100.0 100.0 100.0

Branches4 573 573 418 37 68 50 50 100.0 100.0 100.0

West V irg in ia — all offices 200

195

200 200 200 81 36 83 100.0 100.0

Banks 195 195 195 81 34 80 100.0 100.0

Unit banks 190 190 190 190 81 32 77 100.0 100.0

Banks operating branches 5 5 5 5 3 100.0 100.0

Branches.................................................... 5 5 5 5 2 3 100.0 100.0

248 FEDERAL DEPOSIT INSURANCE CORPORATION

Digitized for FRASER 

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Federal Reserve Bank of St. Louis
Wisconsin— all offices.........

Banks...................................... Unit banks........................... Banks operating branches.

Branches.................................

Wyoming— all o ffices...........

Banks......................................

Unit banks............................ Banks operating branches.

Branches.................................

O ther Areas

Pacific Islands— all o ffices5.

Banks.......................................... Unit banks................................ Banks operating branches... 

Branches6..................................

859

607

451 156

252

72

70

6822

16

855

603

447 156

252

72

70

10

856

604

448 156

252

72

70

6822

16

852H

6001

444 1 ||

252 |

72

70

6822

178

121

610

435

320 115

175

18

17

1611

10

99.9

99.8

99.8

100.0

100.0

100.0

100.0

100.0

100.0

100.0

37.5

99.9

99.8

99.8

100.0 100.0

100.0 100.0

100.0

100.0

100.0

37.5

100.0 100.0

100.0

Panama Canal Zone— all offices.

Banks................................................. Unit banks. ..................................... Banks operating branches...........

Branches7.........................................

37.5 37.5

Puerto Rico— all o ffic e s ...

Banks...................................... Unit banks. .......................... Banks operating branches.

Branches8..............................

Virgin Islands— all offices..

Banks...................................... Unit banks............................ Banks operating branches. 

Branches9..............................

197

144

10

183

27761

20

182927

173

211

196

133

10

183

27761

20

181817

173

211

...

20

18 163817

155

92.4

64.3

50.0 70.0

94.5

80.8

16.7

100.0

100.0

92.3

61.5

33.3 70.0

94.5

80.8

16.7

’ 100.0 100.0

100.0 100.0

100.0

NUMBER OF BANKS AND BRANCHES 249

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Federal Reserve Bank of St. Louis
Table 103. NUMBER OF BANKING OFFICES IN THE UNITED STATES (STATES AND OTHER AREAS),

DECEMBER 31, 1969—CONTINUED 

G RO UPED AC CO RD IN G TO IN S U R A N C E STATUS AND CLASS OF B A N K , AND BY STATE OR AREA A N D TYPE OF OFFICE

1 Nondeposit trust companies are excluded in computing these percentages, 

in c lu d e s 12 noninsured branches of insured banks; 10 branches in the Pacific Islands 

and 2 in the Panama Canal Zone.

3 Includes one trust company in Massachusetts, member of the F. R. System, operating

one branch.

4 Massachusetts: 1 branch operated by a noninsured bank in New York.

New York: 8 branches operated by two insured banks in Puerto Rico (not members of 

F. R. System).

Oregon: 1 branch operated by a national bank in California.

Pennsylvania: 2 branches— 1 operated by a noninsured bank in New York and 1 operated 

by a national bank in New Jersey.

Washington: 2 branches operated by a national bank in California.

5United States possessions (American Samoa, Guam, Midway Islands, and Wake Island); 

Trust Territories (Kwajalein, Majuro, Palau Islands, Ponape Island, Saipan and 

Truk).

6 Pacific Islands: 16 branches.

American Samoa: (Pago Pago); 1 noninsured branch—operated by an insured bank in 

Hawaii (not member of F. R. System).

Caroline Islands on Truk; 1 noninsured branch—operated by a national bank in California.

Mariana Islands: 5 branches—(4 insured on Guam and 1 noninsured on Saipan)— 

operated by a national bank in California.

Guam: 2 insured branches—operated by an insured bank in Hawaii (not member of 

F. R. System); and a national bank in New York.

Caroline Islands: 2 noninsured branches (1 on Palau Islands (Koror) and 1 on Ponape 

Island (Kolonia)—operated by an insured bank ih Hawaii (not member of F. R. 

System).

Marshall Islands: Kwajalein—2 noninsured branches operated by an insured bank in 

Hawaii (not member of F. R. System). Majuro— 1 noninsured branch operated by 

a national bank in California.

Midway Islands on Sand Island: 1 noninsured branch operated by an insured bank in 

Hawaii (not member of F. R. System).

Wake Island: 1 noninsured branch operated by an insured bank in Hawaii (not member 

of F. R. System).

7 Panama Canal Zone: 2 noninsured branches operated by 2 national banks in New York.

8 Puerto Rico: 18 insured branches operated by 2 national banks in New York.

9 Virgin Islands: 13 insured branches operated by 2 national banks in New York; and

1 national bank in California.

250 FEDERAL DEPOSIT INSURANCE CORPORATION

Digitized for FRASER 

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Federal Reserve Bank of St. Louis
Table 104. NUMBER AND DEPOSITS OF ALL COMMERCIAL AND MUTUAL SAVINGS BANKS, 

(STATES AND OTHER AREAS), DECEMBER 31, 1969

BANKS GROUPED BY CLASS AND DEPOSIT SIZE

Deposit' size 

(in dollars)

All

banks

Insured commercial banks Noninsured 

banks 

and trust 

companies

Mutual savings banks

Total

Members F.R. System Nonmembers 

F.R. System

Insured

Noninsured

National State

Number of banks

1 than 1 million 348 231 21 5 205 117

1 to 2 million .. ........................................................ 1,067 1,051 120 50 881 15 1

2 to 5 m illion............................................................................................ 3,527 3,494 758 235 2,501 22 9 2

5 to 10 m illion.......................................................................................... 3,480 3,434 1,184 289 1,961 14 15 17

10 to 25 m illion........................................................................................ 3,306 3,180 1,403 317 1,460 14 71 41

25 to 50 m illion........................................................................................ 1,216 1,096 584 131 381 8 63 49

50 to 100 m illio n...................................................................................... 584 476 272 62 142 8 60 40

100 to 500 m illio n................................................................................... 506 403 253 82 68 10 78 15

500 million to 1 billion .................. 86 59 43 12 4 26 1

1 billion or more .................. 58 49 31 18 9

T o ta l.................................................................................................... 14.178 13,473 4,669 1,201 7,603 208 331 166

Am ount of deposits (In thousands of dollars)

Less than 1 million • • - • 203,986 170,693 15,847 3,455 151,391 33,293

1 to 2 million ............................................ 1,661,684 1,633,715 188,479 80,059 1,365,177 26,110 1,859

2 to 5 m illion............................................................................................ 12,079,774 11,963,707 2,724,653 845,920 8,393,134 72,475 36,511 7,081

5 to 10 million ....................................................................................... 25,150,159 24,798,466 8,764,839 2,103,423 13,930,204 105,429 116,969 129,295

10 to 25 m illion........................................................................................ 51,120,600 48,879,720 21,959,612 5,028,179 21,891,929 264,243 1,257,272 719,365

25 to 50 m illion........................................................................................ 41,935,828 37,670,889 20,145,996 4,583,392 12,941,501 311,296 2,196,501 1,757,142

50 to 100 m illion...................................................................................... 40,588,288 32,960,204 18,732,803 4,332,300 9,895,101 551,066 4,275,027 2,801,991

100 to 500 m illio n................................................................................... 107,829,001 85,316,628 54,329,140 17,305,260 13,682,228 1,635,781 18,212,370 2,664,222

500 million to 1 billion .............................................. 60,094,729 41,701,511 31,183,641 8,067,252 2,450,618 17,801,557 591,661

1 billion or more...................................................................................... 166,865,773 151,894,132 99,798,781 52,095,351 14,971,641

T o ta l.................................................................................................... 507,529,822 436,989,665 257,843.791 94,444.591 84,701,283 2,999,693 58,867,848 8,672,616

NUMBER OF BANKS AND BRANCHES 251

Digitized for FRASER 

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Federal Reserve Bank of St. Louis
ASSETS AND LIABILITIES OF BANKS

Table

Table

Table

Table

Table

Table

Table

Table

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

other areas), June 30, 1969

B anks g ro u p e d by insu ran ce sta tu s a nd class o f b a n k

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

other areas), December 31, 1969

B anks g ro u p e d by insu ran ce sta tu s a nd class o f b an k

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

other areas), June 30, 1969, and December 31, 1969

B anks g ro u p e d by insu ran ce status

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

o th e r area s), D ecem ber ca ll dates, 1 96 1 , 1 9 6 5 -1 9 6 9

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

and other areas), December call dates, 1961, 1965-1969

110. Percentages of assets and liabilities of insured commercial banks operating 

throughout 1969 in the United States (States and other areas), December 31, 

1969

B anks g ro u p e d by a m o u n t o f d ep o sits

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

throughout 1969 in the United States (States and other areas), December 31, 

1969

B anks g ro u p e d by a m o u n t o f d ep o sits

112. Distribution of insured commercial banks in the United States (States and other 

areas), December 31, 1969

B a nks g ro u p e d a c c o rd in g to a m o u nt o f d e p o sits a nd by ra tio s o f se le cte d ite m s

to assets o r depo sits

Digitized for FRASER 

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Federal Reserve Bank of St. Louis
Before 1969, statements of assets and liabilities were submitted 

by insured commercial banks on either a cash or an accrual basis, 

depending upon the bank’s method of bookkeeping. Beginning in 

1969, insured commercial banks having total resources of $50 

million or more (the cut-off will fall to $25 million after December 

31, 1969) report their assets and liabilities on the basis of accrual 

accounting. Where the results are not significantly different, particular accounts may be reported on a cash basis. Banks not subject to full accrual accounting are required to report the installment 

loan function on an accrual basis, or else to submit a statement of 

unearned income on installment loans carried in surplus accounts. 

All banks are required to report income taxes on an accrual basis.

Beginning in 1969, all majority-owned premises subsidiaries are 

fully consolidated. Consolidation is required of other majorityowned domestic subsidiaries (but not domestic commercial bank 

subsidiaries) meeting either of the following criteria: any subsidiary in which the bank's investment represents 5 percent or 

more of its equity capital accounts, or any subsidiary whose gross 

operating revenues amount to 5 percent of the bank’s gross revenues.

In the case of insured banks with branches outside the 50 States, 

net amounts due from such branches are included in “ Other assets," and net amounts due to such branches are included in 

“ Other liabilities." Branches of insured banks outside the 50 States 

are treated as separate entities but not included in the count of 

banks. Data for such branches are not included in the figures for 

the States in which the parent banks are located.

Prior to 1969, securities held by commercial banks were reported 

net of valuation reserves; total loans were reported both gross (before deductions for reserves) and net, the latter included in “ Total 

assets." Beginning in 1969, loans and securities are shown on a 

gross basis in “ Total assets" of commercial banks. All reserves on 

loans and securities, including the reserves for bad debts set up 

pursuant to Internal Revenue Service rulings, are included in “ Reserves on loans and securities” on the liability side of the balance 

sheet.

Individual loan items are reported gross. Installment loans, however, are ordinarily reported net if the installment payments are 

applied directly to the reduction of the loan. Such loans are reported 

gross if, under contract, the payments do not immediately reduce 

the unpaid balances of the loan but are assigned or pledged to 

assure repayment at maturity.

The category “ Trading account securities" was added to the 

condition report of commercial banks in 1969 to obtain this segregation for banks that regularly deal in securities with other banks 

or with the public. Banks occasionally holding securities purchased 

for possible resale report these under “ Investment securities."

Assets and liabilities held in or administered by a savings, bond, 

insurance, real estate, foreign, or any other department of a bank, 

except a trust department, are consolidated with the respective 

assets and liabilities of the commercial department. “ Deposits of 

individuals, partnerships, and corporations" includes trust funds 

deposited by a trust department in a commercial or savings department. Other assets held in trust are not included in statements of 

assets and liabilities.

Demand balances with and demand deposits due to banks in the 

United States, except private banks and American branches of 

foreign banks, exclude reciprocal interbank deposits. (Reciprocal 

interbank deposits arise when two banks maintain deposit accounts 

with each other.)

Asset and liability data for noninsured banks are tabulated from 

reports pertaining to the individual banks. In a few cases, these 

reports are not as detailed as those submitted by insured banks.

Additional data on assets and liabilities of all banks as of June 

30, 1969, and December 31, 1969, are shown in the Corporation's 

semiannual publication Assets and Liabilities, Commercial and

Mutual Savings Banks.

Sources of data. Insured banks: see p.275; noninsured banks: 

State banking authorities; and reports from individual banks.

ASSETS AND LIABILITIES OF BANKS 253

Digitized for FRASER 

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Federal Reserve Bank of St. Louis
Table 105. ASSETS AND LIABILITIES OF ALL COMMERCIAL BANKS IN THE UNITED STATES (STATES AND OTHER AREAS),

JUNE 30, 1969 

BANKS GROUPED BY INSURANCE STATUS AND CLASS OF BANK

(Amounts in thousands of dollars)

Insured banks Noninsured banks

Asset, liability, or capital account item Total

Total

Members of 

Federal Reserve System

Not 

members 

of F.R. 

System

Total

Banks

of

deposit2

Nondeposit

trust

Total National State1 companies4

Total assets........................................................................................................ 521.242,363 516.578.849 426.377.153 307,018.927 119.358,226 90.201.696 4.663.514 4.273,352 390.162

Cash, reserves, balances w ith banks, and collection item s— total 88.530.372 87.555,701 78.688.445 52.344.448 26.343.997 8.867.256 974.671 924,251 50,420

Currency and coin....................................................................................... 6,301,814 6,266,282 4,838,296 3,638,199 1,200,097 1,427,986 35,532 34,840 692

Reserve with F.R. banks (member banks)............................................. 19,804,590 19,804,590 19,804,590 14,653,252 5,151,338 0 0 0 0

Demand balances with banks in the U.S. (except American branches 

of foreign banks).................................................................................... 17,471,905 16,670,366 10,276,701 8,084,076 2,192,625 6,393,665 801,539 759,780 41,759

Other balances with banks in the U.S..................................................... 265,144 200,062 100,753 84,913 15,840 99,309 65,082 57,126 7,956

Balances with banks in foreign countries.............................................. 303,218 274,898 248,405 143,309 105,096 26,493 28,320 28,320 0

Cash items in process of collection......................................................... 44,383,701 44,339,503 43,419,700 25,740,699 17,679,001 919,803 44,198 44,165 13

Securities—to ta l.......................................................................................... 126.910.762 125,686,352 95.780.476 71.441,350 24.339.126 29.905.876 1.224.410 969,540 254,910

U.S. Treasury securities............................................................................ 54,242,371 53,836,946 39,391,221 29,489,337 9,901,884 14,445,725 405,425 361,461 43,964

Securities of other U.S. Government agencies and corporations. 10,019,473 9,777,013 5,975,464 4,864,778 1,110,686 3,801,549 242,460 220,506 21,954

Obligations of States and subdivisions................................................... 60,261,432 59,859,454 48,624,872 35,651,412 12,973,460 11,234,582 401,978 314,938 87,040

Other securities........................................................................................... 2,387,486 2,212,939 1,788,919 1,435,823 353,096 424,020 174,547 72,595 101,952

Investment securities—total..................................................................... 123,655,598 122,437,623 92,578,544 69,175,198 23,403,346 29,859,079 1,217,975 963,065 254,910

U.S. Treasury securities................................................................................. 53,230,741 52,825,316 38,399,369 28,867,721 9,531,648 14,425,947 405,425 361,461 43,964

Securities o f other U.S. Government agencies and corporations.......... 9,551,400 9,310,940 5,517,079 4,549,752 967,327 3,793,861 240,460 218,506 21,954

Obligations o f States and subdivisions........................................................ 58,505,735 58,106,192 46,888,326 34,336,301 12,552,025 11,217,866 399,543 312,503 87,040

Other securities................................................................................................... 2,367,722 2,195,175 1,773,770 1,421,424 352,346 421,405 172,547 70,595 101,952

Trading account securities—total............................................................ 3,255,164 3,248,729 3,201,932 2,266,152 935,780 46,797 6,435 6,435 0

U.S. Treasury securities................................................................................. 1,011,630 1,011,630 991,852 621,616 370,236 19,778 0 0 0

Securities o f other U.S. Government agencies and corporations.......... 468,073 466,073 458,385 315,026 143,359 7,688 2,000 2,000 0

Obligations o f States and subdivisions........................................................ 1,755,697 1,753,262 1,736,546 1,315,111 421,435 16,716 2,435 2,435 0

Other securities................................................................................................... 19,764 17,764 15,149 14,399 750 2,615 2,000 2,000 0

Federal funds sold and securitie s purchased under agreem ents

1.623.773 158.999 158,599 400 to resell—to ta l...................................................................................... 7.234.356 7,075.357 5.451,584 4.070,217 1.381.367

With domestic commercial banks............................................................ 6,396,038 6,237,039 4,626,003 3,302,053 1,323,950 1,611,036 158,999 158,599 400

With brokers and dealers in securities................................................... 767,220 767,220 757,558 707,407 50,151 9,662 0 0 0

With others................................................................................................... 71,098 71,098 68,023 60,757 7,266 3,075 0 0 0

254 FEDERAL DEPOSIT INSURANCE CORPORATION

Digitized for FRASER 

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Federal Reserve Bank of St. Louis
O ther loans and discounts— to ta l..........................................................

Real estate loans—total............................................................................ Secured by fa rm la n d................................................................................... Secured by residential properties: Secured by 1- to 4-fam ily residential properties: Insured by Federal Housing A dm inistration............................. Guaranteed by Veterans A dm inistration..................................... Not insured or guaranteed by FH A or V A ................................. Secured by m ultifam ily (5 or more) residential properties: Insured by Federal Housing A dm inistration........................... Not insured by F H A ......................................................................... Secured by other properties.....................................................................

Loans to domestic commercial and foreign banks.............................

Loans to other financial institutions.....................................................

Loans to brokers and dealers in securities.........................................

Other loans for purchasing or carrying securities..............................

Loans to farmers (excluding loans on real estate)............................

Commercial and industrial loans (including open market paper). ..

Other loans to individuals—to ta l.......................................................... Passenger automobile installment loan s............................................. Credit cards and related plans: Retail (charge account) credit card plans......................................... Check credit and revolving credit plan s............................................. Other retail consumer installment loans................................................ Residential repair and modernization installment loans............... .

Other installment loans for personal expenditures............................ Single-payment loans for personal expenditures................................

All other loans (including overdrafts)..................................................

Total loans and s e cu ritie s...............................................................

Bank premises, furniture and fixtures, and other assets representing

bank premises........................................................................................

Real estate owned other than bank premises....................................

Investments in subsidiaries not consolidated....................................

Customers' liability on acceptances outstanding...............................

Other assets..............................................................................................

Total lia b ilitie s , reserves, and capital accou nts .................................

Business and personal deposits—to ta l................................................

Individuals, partnerships, and corporations—demand.......................

Individuals, partnerships, and corporations—tim e............................. Savings deposits................................................................................................ Deposits accumulated for payment o f personal loans............................ Other deposits o f individuals, partnerships, and corporations.............

Certified and officers’ checks, letters of credit, travelers’ checks, etc..

279,677.006 277.729,074 230,060.085 167.434,419 62,625.666 47,668,989 1,947,932 1.899.086 48.846

69,078,770 68,728,760 52,811,069 39,930,182 12,880,887 15,917,691 350,010 337,247 12,763

4,088,1201 4,061,452 2,101,725 1,612,492 489,233 1,959,727 26,668 25,997 671

7,462,753 7,360,009 6,509,330 5,289,824 1,219,506 850,679 102,744 102,540 204

2,743,349 2,673,129 2,324,352 1,788,085 536,267 348,777 70,220 70,201 19

30,376,548 30,286,274 22,625,756 17,596,617 5,029,139 7,660,518 90,274 80,742 9,532

596,801 594,641 564,946 269,462 295,484 29,695 2,160 2,160 0

2,352,517 2,350,653 1,915,977 1,182,647 733,330 434,676 1,864 1,855 9

21,458,682 21,402,602 16,768,983 12,191,055 4,577,928 4,633,619 56,080 53,752 2,328

2,589,654 2,543,555 2,385,965 1,451,574 934,391 157,590 46,099 46,098 1

13,820,812 13,640,251 12,841,398 8,604,674 4,236,724 798,853 180,561 180,327 234

5,305,827 5,179,540 4,996,105 2,224,417 2,771,688 183,635 126,287 119,841 6,446

4,214,566 4,170,027 3,472,880 2,204,850 1,268,030 697,147 44,539 33,301 11,238

10,564,457 10,546,149 6,351,892 5,268,300 1,083,592 4,194,257 18,308 18,080 228

105,159,324 104,290,921 93,202,746 66,527,096 26,675,650 11,088,175 868,403 859,601 8,802

61,905,822 61,669,768 47,556,675 36,641,461 10,915,214 14,113,093 236,054 232,616 3,438

22,495,867 22,436,965 16,447,995 13,122,037 3,325,958 5,988,970 58,902 57,660 1,24 2

1,704,982 1,704,982 1,591,538 1,316,655 274,883 113,444 0 0 0

993,681 993,681 899,064 643,112 255,952 94,617 0 0 0

5,897,710 5,871,057 4,306,916 3,474,879 832,037 1,564,141 26,653 26,418 235

3,625,376 3,619,121 2,861,767 2,126,894 734,873 757,354 6,255 6,095 160

9,921,835 9,852,935 7,311,479 5,530,121 1,781,358 2,541,456 68,900 67,976 924

17,266,371 17,191,027 14,137,916 10,427,763 3,710,153 3,053,111 75,344 74,467 877

7,037,774 6,960,103 6,441,355 4,581,865 1,859,490 518,748 77,671 71,975 5,696

413.822.124 410,490,783 331.292.145 242,945,986 88.346.159 79,198.638 3.331.341 3.027,185 304.156

7,596,930 7,563,940 6,195,178 4,753,183 1,441,995 1,368,762 32,990 21,799 11,191

349,665 344,481 263,848 207,799 56,049 80,633 5,184 4,804 380

512,869 509,227 500,327 389,582 110,745 8,900 3,642 3,617 25

3,177,904 3,100,687 2,971,239 1,687,715 1,283,524 129,448 77,217 77,217 0

7,252,499 7:014 030 6,465,971 4,690,214 1,775,757 548,059 238,469 214,479 23,990

521.242.363 516,578,849 426.377,153 307,018,927 119,358,226 90.201.696 4.663.514 4,273,352 390,162

357.750.263 355.582.619 285,148,793 210,876,125 74,272,668 70.433,826 2.167.644 2,002,894 164,750

163,882,836 162,900,158 133,315,194 97,034,530 36,280,664 29,584,964 982,678 853,932 128,746

181,108,271 180,273,337 140,312,116 107,846,175 32,465,941 39,961,221 834,934 798,931 36,003 95,288,474 94,977,150 74,961,310 57,493,755 17,467,555 20,015,840 311,324 290,115 21,209 1,154,439 1,149,195 880,834 693,503 187,331 268,361 5,244 5,221 23 84,665,358 84,146,992 64,469,972 49,658,917 14,811,055 19,677,020 518,366 503,595 14,771

12,759,156 12,409,124 11,521,483 5,995,420 5,526,063 887,641 350,032 350,031 1

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CO

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CO

m

CO

CO

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CJ1

cn

Digitized for FRASER 

http://fraser.stlouisfed.org/ 

Federal Reserve Bank of St. Louis
Table 105. ASSETS AND LIABILITIES OF ALL COMMERCIAL BANKS IN THE UNITED STATES (STATES AND OTHER AREAS),

JUNE 30, 1969—CONTINUED

BANKS GROUPED BY INSURANCE STATUS AND CLASS OF BANK

(Amounts in thousands of dollars)

Insured banks Noninsured banks

Asset, liability, or capital account item Total

Total

Members of 

Federal Reserve System

Not 

members 

of F.R. 

System

Total

Banks

of

deposit2

Nondeposit

Trust

Total National State1 companies4

Government deposits—to ta l..................................................................... 39,875,795 39,651,012 31.267.225 24,033,299 7,233,926 8,383,787 224,783 222,100 2,683

United States Government—demand...................................................... 5,659,164 5,636,323 4,880,206 3,539,562 1,340,844 756,117 22,841 20,158 2,683

United States Government—tim e............................................................ 361,960 361,839 312,191 194,812 117,379 49,648 121 121 0

States and subdivisions—demand........................................................... 17,060,621 16,929,297 12,938,803 9,924,410 3,014,343 3,990,494 131,324 131,324 0

States and subdivisions—tim e................................................................. 16,794,050 16,723,553 13,136,025 10,374,515 2,761,510 3,587,528 70,497 70,497 0

Domestic interbank deposits—to ta l....................................................... 23,647.036 23,415,718 22.599,992 13,594,533 9.005.459 815,726 231.318 230,641 677

Commercial banks in the United States—demand.............................. 21,812,205 21,763,085 21,051,303 12,857,178 8,194,125 711,782 49,120 48,443 677

Commercial banks in the United States—tim e ..................................... 527,728 525,653 464,465 312,135 152,330 61,188 2,075 2,075 0

Mutual savings banks in the United States—demand......................... 1,218,545 1,089,803 1,048,544 399,807 648,737 41,259 128,742 128,742 0

Mutual savings banks in the United States—tim e ............................... 88,558 37,177 35,680 25,413 10,287 1,497 51,381 51,381 0

Foreign governm ent and bank deposits— to ta l.................................. 8,004,027 7.702,356 7,522,075 4,176.106 3,345,969 180,281 301.671 300,210 1,461

Foreign governments, central banks, etc.—demand............................ 877,934 810,839 775,371 444,207 331,164 35,468 67,095 66,729 366

Foreign governments, central banks, etc.—tim e.................................. 4,585,500 4,502,679 4,452,988 2,491,272 1,961,716 49,691 82,821 81,821 1,000

Banks in foreign countries—demand...................................................... 2,258,981 2,135,052 2,071,936 1,141,599 930,337 63,116 123,929 123,834 95

Banks in foreign countries—tim e............................................................ 281,612 253,786 221,780 99,028 122,752 32,006 27,826 27,826 0

Total deposits................................................................................... 429,277,121 426.351,705 346.538,085 252.680,063 93.858.022 79.813,620 2.925.416 2.755.845 169,571

Demand....................................................................................................... 225,529,442 223,673,681 187,602,840 131,336,713 56,266,127 36,070,841 1,855,761 1,723,193 132,568

T im e............................................................................................................ 203,747,679 202,678,024 158,935,245 121,343,350 37,591 895 43,742,779 1,069,655 1,032,652 37,003

M iscellaneous lia b ilitie s — to ta l............................................................... 47.351,317 46,188,391 43.758.505 28.320,725 15.437,780 2.429.886 1,162.926 1,122,755 40,171

Federal funds purchased (borrowed) and securities sold under 

agreements to repurchase..................................................................... 11,167,377 11,152,703 10,836,305 7,762,894 3,073,411 316,398 14,674 14,674 0

Other liabilities for borrowed money...................................................... 3,643,169 3,314,109 3,162,613 2,131,916 1,030,697 151,496 329,060 324,693 4,367

Mortgage indebtedness.............................................................................. 520,804 518,945 411,394 295,244 116,150 107,551 1,859 1,859 0

Acceptances outstanding........................................................................... 3,251,474 3,156,074 3,024,409 1,708,438 1,315,971 131,665 95,400 95,400 0

Other liabilities............................................................................................ 28,768,493 28,046,560 26,323,784 16,422,233 9,901,551 1,722,776 721,933 686,129 35,804

Total lia b ilitie s ................................................................................. 476,628,438 472,540,096 390.296,590 281,000,788 109,295,802 82.243,506 4,088,342 3,878,600 209,742

M inority interest in consolidated subsidiaries.................................. 2,244 2,244 1,571 1,557 14 673 0 0 0

256 FEDERAL DEPOSIT INSURANCE CORPORATION

Digitized for FRASER 

http://fraser.stlouisfed.org/ 

Federal Reserve Bank of St. Louis
Reserves on loans and securitie s— to ta l.............................................

Reserve for bad debt losses on loans.....................................................

Other reserves on loans............................................................................

Reserves on securities...............................................................................

5,609,896

5,271,077

113,801

225,018

5.596,156

5,261,227

112,601

222,328

4,755,392

4,524,672

64,150

166,570

3,381,986

3,222,470

46,180

113,336

1,373,406

1,302,202

17,970

53,234

840,764

736,555

48,451

55,758

13,740

9,850

1,200

2,690

12,944

9,301

1,200

2,443

796

549

0

247

Capital accounts— to ta l............................................................................. 39,001,785 38,440,353 31,323,600 22,634,596 8,689,004 7,116,753 561.432 381,808 179,624

Capital notes and debentures.................................................................. 2,020,312 1,970,829 1,761,739 1,142,068 619,671 209,090 49,483 49,333 150

Equity capital—total.................................................................................. 36,981,473 36,469,524 29,561,861 21,492,528 8,069,333 6,907,663 511,949 332,475 179,474

Preferred stock................................................................................................... 103,384 99,153 92,022 59,457 32,565 7 ,131 4,231 4,081 150

Common stock.................................................................................................... 10,477,156 10,322,223 8,276,517 6,090,031 2,186,486 2,045,706 154,933 100,154 54,779

Su rp lu s................................................................................................................ 17,072,397 16,868,516 13,994,333 10,286,276 3,708,057 2,874,183 203,881 121,963 81,918

Undivided profits.............................................................................................. 8,278,943 8,164,335 6,363,631 4,367,697 1,995,934 1,800,704 114,608 77,044 37,564

Reserve for contingencies and other capital reserves............................... 1,049,593 1,015,297 835,358 689,067 146,291 179,939 34,296 29,233 5,063

PERCENTAGES

Of to ta l assets:

Cash and balances with other banks.......................................................... 17.0% 16.9% 18.5% 17.0% 22.1% 9.8% 20.9% 21.6% 12.9%

U.S. Treasury securities and securities of other U.S. Government

agencies and corporations........................................................................ 12.0 12.0 10.3 10.9 8.8 20.2 13.8 13.6 16.9

Other securities.............................................................................................. 12.3 12.3 12.2 12.4 11.6 13.0 12.4 9.1 48.4

Loans and discounts (including Federal funds sold and securities purchased under agreements to resell)....................................................... 55.0 55.1 55.2 55.9 53.6 54.6 45.2 48.2 12.6

Other assets..................................................................................................... 3.6 3.6 3.8 3.8 3.9 2.4 7.7 7.5 9.1

Total capital accounts5.................................................................................. 7.5 7.4 7.3 7.4 7.3 7.9 17.5 s 13.3 3 46.0

Of total assets other than cash and U.S. Treasury securities:

Total capital accounts5.................................................................................. 10.3 10.2 10.1 10.0 10.4 10.6 23.9 3 18.3 a 60.7

Number of banks............................................................................................... 13,694 13,473 5,937 4,701 1,236 7,536 221 171 50

1 Excludes 1 noninsured trust company in Massachusetts not engaged in deposit banking.

2 Includes asset and liability figures for 14 branches of foreign banks (tabulated as banks) licensed to do a deposit business in the State of New York. Capital is not allocated to these branches by the 

parent banks.

3 Data for branches of foreign banks referred to in the previous footnote have been excluded in computing this ratio for noninsured banks of deposit and in total columns.

4 Amounts shown as deposits are special accounts and uninvested trust funds, with the latter classified as demand deposits of individuals, partnerships, and corporations. Includes 1 trust company, a

member of the Federal Reserve System.

6 Only asset agd liability data are included for branches located in "other areas” of banks headquartered in one of the 50 States; because no capital is allocated to these branches, they are excluded 

from the computation of ratios of capital accounts to assets.

Note: Further information on the reports of assets and liabilities of banks may be found on page 253.

ASSETS AND LIABILITIES OF BANKS 257

Digitized for FRASER 

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Federal Reserve Bank of St. Louis
Table 106. ASSETS AND LIABILITIES OF ALL COMMERCIAL BANKS IN THE UNITED STATES (STATES AND OTHER AREAS),

DECEMBER 31, 1969 

BANKS GROUPED BY INSURANCE STATUS AND CLASS OF BANK 

(Amounts in thousands of dollars)

Asset, liability, or capital account item Total

Insured banks

Total

Members of 

Federal Reserve System

Total National State1

Not 

members 

of F.R. 

System

Noninsured banks

Total

Banks

of

deposit2

Nondeposit

trust

companies4

Total assets.......................................................................................................

Cash, reserves, balances w ith banks, and collection items— to ta l

Currency and coin.......................................................................................

Reserve with F.R. banks (member banks)............................................

Demand balances with banks in the U.S. (except American branches

of foreign banks)....................................................................................

Other balances with banks in the U.S....................................................

Balances with banks in foreign countries..............................................

Cash items in process of collection.........................................................

S ecurities— to ta l..........................................................................................

U.S. Treasury securities............................................................................

Securities of other U.S. Government agencies and corporations. . ..

Obligations of States and subdivisions...................................................

Other securities...........................................................................................

Investment securities—total............ ..................................................... U.S. Treasury securities................................................................................. Securities of other U.S. Government agencies and corporations......... Obligations o f States and subdivisions........................................................ Other securities...................................................................................................

Trading account securities—total............................................................ U.S. Treasury securities................................................................................. Securities o f other U.S. Government agencies and corporations........... Obligations o f States and subdivisions......................................................... Other securities...................................................................................................

Federal funds sold and securitie s purchased under agreem ents 

to resell— to ta l......................................................................................

With domestic commercial banks............................................................

With brokers and dealers in securities...................................................

With others...................................................................................................

535,679,740 530,714,711 434,720,699 315,502,098 119,218,601 95,994,012 4,965,029 4,563,522

90,268.201

7,383,124

21,452,826

20,157,862

273,943

381,128

40,619,318

89,335,129

7,346/973

21,452,826

19,389,950

230,150

320,921

40,594,309

79,088,603

5,690,944

21,452,826

11,796,479

140,547

287,244

39,720,563

54,775,953

4,305,068

16,224,774

9,402,859

119,439

167,261

24,556,552

24.312,650

1,385,876

5,228,052

2,393,620

21,108

119,983

15,164,011

10,246,526

1,656,0290

7,593,471

89,603

33,677

873,746

933,072

36,151

0

767,912

43,793

60,207

25,009

884,395

35,722

0

723,961

39,505

60,207

25,000

126.556,177

54,957,364

9,961,879

59,367,334

2,269,600

123,369,814

53,689,937 9,^28,353

57,993,813 2,257,711

3,186,363 1,267,427 533,526 1,373,521

11,889

125.384,941

54,529,716

9,771,666

58,943,820

2,139,739

122,203,185 53,262,588

9,239,140 57,572,607 2,128,850

3,181,756 1,267,128 532,526 1,371,213

10,889

94.657.934

39,846,069

5,847,255

47,253,889

1,710,721

91,514,100

38,602,065 5,324,411 45,887,755

1,699,869

3,143,834

1 , 244,004

522,844 1,366,134

10,852

70,130.165

29,588,921

4,640,875

34,536,260

1,364,109

68,097,886 28,818,837

4,282,344 33,642,283

1,354,422

2,032,279

770,084 358,531

893,977 9,687

24.527.769

10,257,148

“ 1,206,380

12,717,629

346,612

23,416,214 9,783,228 1,042,067

12,245,472

345,447

1,111,555 473,920 164,313

472,157 1,165

30.727.007

14,683,647

3,924,411

11,689,931

429,018

30,689,085 14,660,523 3,914,729

11,684,852 428,981

37,922

23,124 9,682 5,07937

1.171.236

427,648

190.213 

423,514

129.861

1,166,629 427,349 189.213

421,206

128.861

4,607

299

1 ,0 0 0

2,308

1,000

938.105

382,406

175.919 

317,230

62.550

933,498 382,107 174.919

314,922

61.550

4,607

299

1,000

2,308

1,000

9.947,079

8,624,255

929,617

393,207

9,712,405

8,389,581

929,617

393,207

7,374,768

6,076,872

913,059

384,837

5,809,058

4,676,492

823,805

308,761

1,565,710

1,400,380

89,254

76,076

2,337,637

2,312,709

16,558

8,370

234.674

234.674 

0 

0

232.675

232.675 

0 

0

401,507

48,677

429

0

43,951

4,288

0

9

233.131

45.242

14.294

106.284

67.311

233.131

45.242

14.294 106.284 67.311

0

0

0

0

0

1.999

1.999

0 

0

258 FEDERAL DEPOSIT INSURANCE CORPORATION

Digitized for FRASER 

http://fraser.stlouisfed.org/ 

Federal Reserve Bank of St. Louis
O ther loans and discounts—to ta l..........................................................

Real estate loans—total............................................................................ Secured by farm land........................................................................................ Secured by residential properties: Secured by 1- to 4-fam ily residential properties: Insured by Federal Housing Adm inistration.................................. Guaranteed by Veterans Adm inistration.......................................... Not insured or guaranteed by FH A or V A ..................................... Secured by multi fam ily (5 or more) residential properties: Insured by Federal Housing Adm inistration.................................. Not insured by F H A .............................................................................. Secured by other properties............................................................................

Loans to domestic commercial and foreign banks...............................

Loans to other financial institutions.......................................................

Loans to brokers and dealers in securities...........................................

Other loans for purchasing or carrying securities................................

Loans to farmers (excluding loans on real estate)..............................

Commercial and industrial loans (including open market paper)

Other loans to individuals—to ta l............................................................ Passenger automobile installment loan s.................................................... Credit cards and related plans: Retail {charge account) credit card plans.............................................. Check credit and revolving credit plan s.................................................. Other retail consumer installment loans..................................................... Residential repair and modernization installment loans...................... Other installment loans for personal expenditures................................. Single-payment loans for personal expenditures.....................................

All other loans (including overdrafts)....................................................

Total loans and s e cu ritie s ...........................................................

Bank premises, furniture and fixtures, and other assets representing

bank premises........................................................................................

Real estate owned other than bank premises......................................

Investments in subsidiaries not consolidated......................................

Customers' liability on acceptances outstanding.................................

Other assets................................................................................................

Total lia b ilitie s , reserves, and capital a ccou nts..................................

Business and personal deposits—to ta l................................................

Individuals, partnerships, and corporations—demand.......................

Individuals, partnerships, and corporations—tim e............................. Savings deposits................................................................................................ Deposits accumulated for payment o f personal loans............................. Other deposits o f individuals, partnerships, and corps..........................

Certified and officers’ checks, letters of credit, travelers’ checks, etc..

288,895.911 286,751,602 236.397,819 172.403,796 63.994,023 50,353,783 2,144,309 2,097,209 47,100

70,705,002 70,325,953 53,484,342 40,822,855 12,661,487 16,841,611 379,049 362,110 16,939 4,018,711 3,992,931 2,005,820 1,590,718 $16,102 1,986,111 25,780 25,078 702

7,895,468 7,262,023 6,388,479 5,318,611 1,069,868 873,544 133,445 133,366 79 2,663,251 2,596,261 2,245,948 1,807,161 438,787 350,313 66,990 65,049 1,941 31,297,144 31,210,921 23,133,532 18,071,872 5,061,660 8,077,389 86,223 77,280 8,943

564,190 562,501 524,737 261,286 263,451 37,764 1,689 1,689 0 2,652,699 2,647,857 2,167,945 1,337,081 830,864 479,912 4,842 4,842 0

22,113,539 22,053,459 17,016,881 12,436,126 4,580,755 5,036,578 60,080 54,806 5,274

2,488,625 2,425,147 2,257,583 1,396,205 861,378 167,564 63,478 62,828 650

15,145,288 14,938,963 14,040,627 9,211,876 4,828,751 898,336 206,325 205,575 750

5,740,082 5,646,962 5,408,314 2,528,286 2,880,028 238,648 93,120 88,220 4,900

4,033,857 3,994,818 3,285,521 2,240,661 1,044,860 709,297 39,039 30,751 8,288

10,338,594 10,323,657 6,187,398 5,143,046 1,044,352 4,136,259 14,937 14,717 220

109,364,020 108,393,788 96,470,162 68,580,743 27,889,419 11,923,626 970,232 962,621 7,611

63,643,625 63,355,683 48,480,073 37,669,202 10,810,871 14,875,610 287,942 284,780 3,162 22,806,154 22,706,108 16,459,165 13,342,228 3,116,937 6,246,943 100,046 98,817 1,229

2,639,497 2,639,497 2,429,559 1,959,465 470,094 209,938 0 0 0 1,082,791 1,082,791 954,924 668,758 286,166 127,867 0 0 0

6,295,554 6,269,924 4,530,075 3,678,726 851,349 1,739,849 25,630 25,398 232 3,661,071 3,654,863 2,869,374 2,143,874 725,500 785,489 6,208 6,064 144 10,013,977 9,936,340 7,361,204 5,646,761 1,714,443 2,575,136 77,637 76,822 815 17,144,581 17,066,160 13,875,772 10,229,390 3,646,382 3,190,388 78,421 77,679 742

7,436,818 7,346,631 6,783,799 4,810,922 1,972,877 562,832 90,187 85,607 4,580

425,399,167 421,848,948 338,430,521 248,343,019 90.087,502 83,418,427 3,550,219 3,267,989 282,230

8,110,427 8,070,059 6,579,946 5,067,455 1,512,491 1,490,113 40,368 23,356 17,012

369,770 360,820 276,339 221,776 54,563 84,481 8,950 4,756 4,194

670,347 651,095 644,134 511,648 132,486 6,961 19,252 3,759 15,493

3,389,859 3,308,881 3,167,311 1,837,940 1,329,371 141,570 80,978 80,978 0

7,471,969 7,139,779 6,533,845 4,744,307 1,789,538 605,934 332,190 298,289 33,901

535,679,740 530,714,711 434,720,699 315,502,098 119,218,601 95,994,012 4,965,029 4,563,522 401,507

368.193,312 365.934,821 290,925.554 215.377,163 75,548,391 75,009,267 2,258,491 2,106,151 152,340

179,219,467 178,185,683 145,432,955 105,918,310 39,514,645 32,752,728 1,033,784 909,482 124,302

177,028,567 176,240,900 135,001,529 104,181,501 30,820,028 41,239,371 787,667 759,629 28,038 94,098,303 93,796,302 73,277,659 56,350,958 16,926,701 20,518,643 302,001 283,614 18,387 1,136,018 1,129,305 875,886 688,085 187,801 253,419 6,713 6,692 21 81,794,246 81,315,293 60,847,984 47,142,458 13,705,526 20,467,309 478,953 469,323 9,630

11,945,278 11,508,238 10,491,070 5,277,352 5,213,718 1,017,168 437,040 437,040 0

ASSETS AND LIABILITIES OF BANKS 259

Digitized for FRASER 

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Federal Reserve Bank of St. Louis
Table 106. ASSETS AND LIABILITIES OF ALL COMMERCIAL BANKS IN THE UNITED STATES (STATES AND OTHER AREAS),

DECEMBER 31, 1969-CONTINUED

BANKS GROUPED BY INSURANCE STATUS AND CLASS OF BANK

(Amounts in thousands of dollars)

Insured banks Noninsured banks

Asset, liability, or capital account item Total

Total

Members of 

Federal Reserve System

Not 

members 

of F.R. 

System

Total

Banks

of

deposit2

Nondeposit

trust

Total National State1 companies4

Government deposits—to ta l..................................................................... 36,333.361 36.092.200 27,627,714 21,744,565 5.883,149 8,464.486 241.161 240.522 639

United States Government—demand.................................................. 5,076,670 5,050,538 4,121,021 3,056,513 1,064,508 929,517 26,132 25,494 638

United States Government—tim e ........................................................ 223,577 222,560 194,587 118,758 75,829 27,973 1,017 1,017 0

States and subdivisions—demand....................................................... 17,704,864 17,559,438 13,294,402 10,445,106 2,849,296 4,265,036 145,426 145,425 1

States and subdivisions— tim e................................................................. 13,328,250 13,259,664 10,017,704 8,124,188 1,893,516 3,241,960 68,586 68,586 0

Domestic interbank deposits— to ta l....................................................... 25.055,649 24.858.037 23,827,985 15,124,690 8,703.295 1,030,052 197,612 197,142 470

Commercial banks in the United States—demand.............................. 23,453,874 23,394,428 22,472,139 14,539,116 7,933,023 922,289 59,446 58,976 470

Commercial banks in the United States—tim e ........................... 416,026 415,216 348,571 191,884 156,687 66,645 810 810 0

Mutual savings banks in the United States—demand......................... 1,128,139 1,017,123 977,075 377,846 599,229 40,048 111,016 111,016 0

Mutual savings banks in the United States—tim e ............................. 57,610 31,270 30,200 15,844 14,356 1,070 26,340 26,340 0

Foreign governm ent and bank deposits— to ta l.................................. 10,407,036 10,104.607 9.907,129 5,597,373 4,309.756 197,478 302,429 300,907 1,522

Foreign governments, central banks, etc.—demand............................ 992,577 940,239 910,612 457,876 452,736 29,627 52,338 51,991 347

Foreign governments, central banks, etc.—tim e.................................. 6,465,942 6,378,964 6,323,127 3,552,169 2,770,958 55,837 86,978 85,978 1,000

Banks in foreign countries—demand...................................................... 2,624,537 2,475,098 2,402,263 1,393,440 1,008,823 72,835 149,439 149,264 175

Banks in foreign countries—tim e............................................................ 323,980 310,306 271,127 193,888 77,239 39,179 13,674 13,674 0

Total dep osits................................................................................... 439,989,358 436,989.665 352.288,382 257,843.791 94.444,591 84,701,283 2,999,693 2,844,722 154,971 Demand,....................................................................................................... 242,1^5,406 240,130,785 200,101,537 141,465,559 58,635,978 40,029,248 2,014,621 1,888,688 125,933 T im e............................................................................................................. 197,843,952 196,858,880 152,186,845 116,378,232 35,808,613 44,672,035 985,072 956,034 29,038

M iscellaneous lia b ilitie s — to ta l...............................................................

Federal funds purchased (borrowed) and securities sold under

49,326.984 47,966,725 45.118,418 30.618,355 14,500,063 2,848,307 1,360,259 1,313,054 47,205

agreements to repurchase..................................................................... 14,730,800 14,684,700 14,275,695 9,997,514 4,278,181 409,005 46,100 46,100 0

Other liabilities for borrowed money...................................................... 3,710,922 3,367,342 3,121,971 2,283,717 838,254 245,371 343,580 330,054 13,526

Mortgage indebtedness.............................................................................. 603,447 601,562 478,077 350,451 127,626 123,485 1,885 1,885 0

Acceptances outstanding........................................................................... 3,485,840 3,387,309 3,245,328 1,880,445 1,364,883 141,981 98,531 98,531 0

Other liabilities............................................................................................ 26,795,975 25,925,812 23,997,347 16,106,228 7,891,119 1,928,465 870,163 836,484 33,679

Total lia b ilitie s ............................................................................... 489,316,342 484,956,390 397.406,800 288,462,146 108,944.654 87,549,590 4,359,952 4,157,776 202,176

M inority interest in consolidated subsidiaries.................................. 3,883 3.295 835 827 8 2,460 588 0 588

260 FEDERAL DEPOSIT INSURANCE CORPORATION

Digitized for FRASER 

http://fraser.stlouisfed.org/ 

Federal Reserve Bank of St. Louis
Reserves on loans and securities— total

Reserve for bad debt losses on loans.........

Other reserves on loans................................

Reserves on securities...................................

Capital accounts— to ta l............................ ....................................

Capital notes and debentures..............................................

Equity capital—total........................................................................ Pre ferred stock................................................................................................... Common stock..................................................................................................... Su rp lu s................................................................................................................ Undivided profits..............................................................................................

Reserve for contingencies and other capital reserves...............................

PERCENTAGES

Of to ta l assets:

Cash and balances with other banks..........................................................

U.S. Treasury securities and securities of other U.S. Government

agencies and corporations....................................................

Other securities.................................................. ........................

Loans and discounts (including Federal funds soid)........

Other assets................................................................................

Total capital accounts5......................................

Of total assets other than cash and U.S. Treasury securities: 

Total capital accounts5..................................................................

Number of banks........................................................................

6.194,152 6,178.797 5,259.153 3.784,928 1,474,225 919,644 15,355 14,430 925

5,896,865 5,885,873 5,073,782 3,660,232 1,413,550 812,091 10,992 10,325 667

109,904 108,824 55,030 37,878 17,152 53,794 1,080 1,080 0

187,383 184,100 130,341 86,818 43,523 53,759 3,283 3,025 258

40.165.363 39,576.229 32,053.911 23.254,197 8,799,714 7,522.318 589,134 391,316 197,818

2,049,141 1,998,316 1,773,399 1,119,738 653,661 224,917 50,825 50,825 0

38,116,222 37,577,913 30,280,512 22,134,459 8,146,053 7,297,401 538,309 340,491 197,818 107,673 103,416 95,040 62,453 32,587 8,376 4,257 4,257 0

10,689,247 10,529,322 8,385,530 6,165,757 2,219,773 2,143,792 159,925 105,410 54,515 17,621,043 17,460,832 14,384,752 10,488,372 3,896,380 3,076,080 160,211 124,388 35,823 8,584,423 8,426,787 6,560,073 4,706,598 1,853,475 1,866,714 157,636 71,103 86,533 1,113,836 1,057,556 855,117 711,279 143,838 202,439 56,280 35,333 20,947

16.9% 16.8% 18.2% 17.4% 20.4% 10.7% 18.8% 19.4% 12.1%

11.8 11.8 10.1 10.5 9.1 19.4 12.4 12.2 14.8 11.8 11.8 11.7 11.7 11.5 12.7 11.2 8.4 43.2 55.8 55.9 56.1 56.5 55.0 54.9 47.9 51.1 12.2 3.7 3.7 4.0 3.9 4.0 2.4 9.7 9.0 17.6 7.5 7.5 7.4 7.4 7.4 7.8 17.33 12.93 49.3

10.3 10.2 10.1 10.0 10.3 10.6 22.73 16.73 64.3

13,681 13,473 5,870 4,669 1,201 7,603 208 159 49

1 See table 105, note 1.

parent "banks8 aSS8t ^ liabllity figures for 15 brafiches of foreign banks (tabulated as banks) licensed to do a deposit business in the State of New York. Capital is not allocated to these branches by the 

l >4.5 see table 105, notes.

Note: Further information on the reports of assets and liabilities of banks may be found on page 253.

ASSETS AND LIABILITIES OF BANKS 261

Digitized for FRASER 

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Federal Reserve Bank of St. Louis
Table 107. ASSETS AND LIABILITIES OF ALL MUTUAL SAVINGS BANKS IN THE UNITED STATES (STATES AND OTHER AREAS),

JUNE 30, 1969, AND DECEMBER 31, 1969

BANKS GROUPED BY INSURANCE STATUS 

(Amounts in thousands of dollars)

June 30,1969 December 31,1969

Asset, liability, or surplus account item Total Insured Noninsured Total Insured Noninsured

Total assets................................................................................................................................................. 73,300,003 63,744,591 9,555,412 74,349,679 64,633,716 9,715,963

Cash, balances w ith banks, and collection item s— to ta l......................................................... 832,152 713,004 119,148 890,947 780,079 110,868

Currency and coin................................................................................................................................ 156,199 128,286 27,913 209,719 179,378 30,341

Demand balances with banks in the United States....................................................................... 506,976 432,727 74,249 557,371 499,506 57,865

Other balances with banks in the United States............................................................................ 77,993 73,380 4,613 55,535 42,964 12,571

Cash items in process of collection................................................................................................... 90,984 78,611 12,373 68,322 58,231 10,091

Securities—to ta l.................................................................................................................................... 14,698,712 12,155,397 2,543,315 14,226,488 11,843,577 2,382,911

Obligations of the U.S. Government, net—to ta l......................................................................... 3,610,378 2,635,085 975,293 3,230,410 2,445,609 784,801

Valuation reserves............................................................................................................................... 12,774 12,774 0 13,004 13,004 0

Obligations of the U.S. Government, gross— to ta l.....................................................................

Direct:

3,623,152 2,647,859 975,293 3,243,414 2,458,613 784,801

Treasury bills................................................................................................................................................... 266,330 176,242 90,088 145,856 122,070 23,786

Treasury certificates o f indebtedness.......................................................................................................... 3,5^2 . 500 3,042 4,222 2,043 2,179

Treasury notes maturing in 1 year or less............................................................................................... 110,009 78,237 31,772 224,100 158,515 65,585

Treasury notes maturing after 1 year........................................................................................................ 1,033,538 728,138 305,400 919,440 654,983 264,457

United States nonmarketable bonds............................................................................................................ 25,790 23,963 1,827 15,797 13,997 1,800

Other bonds maturing in 1 year or less..................................................................................................... 163,311 125,056 38,255 115,493 91,152 24,341 Other bonds maturing in 1 to 5 years........................................................................................................ 672,697 479,672 193,025 573,971 437,306 136,665

Other bonds maturing in 5 to 10 years...................................................................................................... 66,368 32,155 34,213 26,555 11,718 14,837

Other bonds maturing after 10 years......................................................................................................... 916,858 786,272 130,586 885,770 762,119 123,651

Guaranteed obligations....................................................................................................................... 364,709 217,624 147,085 332,210 204,710 127,500

O bligations of States and subdivisions, n e t.................................................................................. 189,893 182,450 7,443 192,496 185,388 7,108

Valuation reserves............................................................................................................................... 5,725 5,725 0 5,561 5,561 0

O bligations of States and subdivisions, gross.............................................................................. 195,618 188,175 7,443 198,057 190,949 7,108

O ther bonds, notes, and debentures, net—to ta l......................................................................... 8,795,085 7,575,065 1,220,020 8,628,655 7,396,659 1,231,996

Valuation reserves............................................................................................................................... 22,834 22,757 77 26,842 26,765 77

Other bonds, notes, and debentures, gross— to ta l.................................................................... 8,817,919 7,597,822 1,220,097 8,655,497 7,423,424 1,232,073

Railroads................................................................................................................................................ 592,386 513,152 79,234 583,508 512,297 71,211

U tilities................................................................................................................................................... 4,231,003 3,629,935 601,068 4,265,854 3,624,115 641,739

Industrials............................................................................................................................................. 1,048,402 982,347 66,055 1,019,117 953,590 65,527

Securities of Federal agencies and corporations not guaranteed by U.S................................... 1,668,489 1,311,237 357,252 1,475,696 1,149,455 326,241

All other................................................................................................................................................. 1,277,639 1,161,151 116,488 1,311,322 1,183,967 127,355

Corporate stocks, net—to ta l.............................................................................................................. 2,103,356 1,762,797 340,559 2,174,927 1,815,921 359,006

Valuation reserves............................................................................................................................... 38,204 37,862 342 38,015 37,918 97

Corporate stocks, gross—to ta l.......................................................................................................... 2,141,560 1,800,659 340,901 2,212,942 1,853,839 359,103

474,659 248,149 226,510 485,730 251,903 233,827

1,666,901 1,552,510 114,391 1,727,212 1,601,936 125,276

262 FEDERAL DEPOSIT INSURANCE CORPORATION

Digitized for FRASER 

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Federal Reserve Bank of St. Louis
Loans and discounts, net—t o ta l............................................................

Valuation reserves.....................................................................................

Loans and discounts, gross—to ta l........................................................

Real estate loans—to ta l............................................................................ Secured by farm land........................................................................................ Secured by residential properties: Insured by F H A .......................................................................................... Guaranteed by V A ....................................................................................... Not insured or guaranteed by FHA or V A ......................................... Secured by other properties............................................................................

Commercial and industrial loans (including open market paper)

Loans to individuals for personal expenditures...................................

All other loans (including overdrafts)....................................................

Total loans and se c u ritie s ..........................................................

Bank premises...............................................................................................

Furniture and fixtures...................................................................................

Real estate owned other than bank premises..........................................

Miscellaneous assets.....................................................................................

Total lia b ilitie s and surplus accounts.....................................................

Deposits—to ta l............................................................................................

Demand deposits of individuals, partnerships, and corporations___

Time deposits of individuals, partnerships, and corporations...........

Other deposits (official checks, e tc.)......................................................

States and subdivisions............................................................................

United States Government.......................................................................

Interbank....................................................................................................

Total demand deposits.................................................................................... Total savings and time deposits...................................................................

M iscellaneous lia b ilitie s ..........................................................................

Total lia b ilitie s (excluding surplus accou nts)..........................

Surplus accounts— to ta l............................................................................

Surplus........................................................................................................

Undivided profits.......................................................................................

Other segregations of surplus.................................................................

PERCENTAGES

Of total assets:

Cash and balances with other banks.........................................................

U.S. Government obligations, direct and guaranteed..............................

Other securities..............................................................................................

Loans and discounts......................................................................................

Other assets....................................................................................................

Total surplus accounts..................................................................................

Of total assets other than cash and U.S. Government obligations: 

Total surplus accounts..................................................................................

Number of banks...............................................................................................

56,495,369

132,048

56,627,417

54,843,569

116,753

49,707,935

121,788

49,829,723

48,321,900

110,578

6,787,434

10,260

6,797,694

6,521,669

6,175

57,948,031

130,189

58,078,220

56,137,885

113,629

50,828,568

120,928

50,949,496

49,329,087

106,943

7,119,463

9,261

7,128,724

6,808,798

6,686

15,769,230

12,150,988

19,898,221 6,908,377

284,044

1,168,666

331,138

14,674,504

11,032,381 16,555,195

5,949,242

271,705

931,561

304,557

1,094,726 1,118,607

3,343,026 959,135

12,339

237,105

26,581

15,862,120 12,165,969

20,654,641 7,341,526

217,850

1,243,914

478,571

14,742,577 11,030,456 17,193,309 6,255,802

206,348

987,198

426,863

1,119,543 1,135,513

3,461,332 1,085,724

11,502

256,716

51,708

71,194,081 61,863,332 9,330,749 72,174,519 62,672,145 9,502,374

432,546

111,977

43,020

686,227

389,840

94,269

38,273

645,873

42,706

17,708

4,747

40,354

444,671

114,939

51,310

673,293

400,375

96,684

47,607

636,826

44,296

18,255

3,703

36,467

73,300,003 63,744,591 9,555,412 74,349,679 64,633,716 9,715,963

66,756,656

570,635

66,125,568

22,762

28,382

6,665

2,644

58,288,940

526,471

57,703,374

22,679

27,766

6,006

2,644

8,467,716

44,164

8,422,194

83

616

659

0

67,540,464

527,043

66,951,492

18,405

33,293

7,921

2,310

58,867,848

503,982

58,303,307

18,378

32,660

7,213

2,308

8,672,616

23,061

8,648,185

27

633

708

2

602,019

66,154,637 557,106

57,731,834

44,913

8,422,803 557,635

66,982,829

533,836 58,334,012

23,799

8,648,817

1,137,177 848,640 288,537 1,287,835 1,068,152 219,683

67,893,833 59,137,580 8,756,253 68,828,299 59,936,000 8,892,299

5,406,170

3,771,060

1,145,666

489,444

4,607,011

3,321,762

882,797

402,452

799,159

449,298

262,869

86,992

5,521,380

3,777,347

1,244,572

499,461

4,697,716

3,317,372

970,376

409,968

823,664

459,975

274,196

89,493

l:i* 15.1

77.1 

1.7 

7.4

1.1%

4.1 

14.9 

78.0

1.8

7.2

1.2%

10.2

16.4

71.0

1.1

8.4

1.2%

4.3

14.8

77.9 

1.7

7.4

1.2%

3.8

14.5

78.6

1.8 

7.3

16.4

73.3

1.1

8.5

7.9 7.6 9.4 7.9 7.7 9.3

500 333 167 497 331 166

ASSETS AND LIABILITIES OF BANKS 263

Digitized for FRASER 

http://fraser.stlouisfed.org/ 

Federal Reserve Bank of St. Louis
Table 108. ASSETS AND LIABILITIES OF INSURED COMMERCIAL BANKS IN THE UNITED STATES (STATES AND OTHER AREAS),

DECEMBER CALL DATES, 1961, 1965-1969

(Amounts in thousands of dollars)

Asset, liability, or capital account item Dec. 30, 1961 Dec. 31, 1965 Dec. 31, 1966 Dec. 30, 1967 Dec. 31, 1968 Dec. 31, 1969 1

T o t a l a s s e t s .............................................................................................................................................................

C a s h , r e s e r v e s , b a l a n c e s w i t h b a n k s , a n d c o l le c t io n i t e m s — t o t a l .............................

Currency and c o in .........................................................................................................................................

Reserve with Federal Reserve banks ( m e m b e r b a n k s ) ............................................................

Dema nd balances with banks in the U.S. (except American branc hesof foreign banks)

Other balances with banks in the U .S ................................................................................................

Balances with banks in foreign cou nt rie s.........................................................................................

Cash items in process of colle ctio n.....................................................................................................

I n v e s t m e n t s e c u r i t i e s — t o t a l ..................................................................................................................

U.S. Treasury sec u rit ie s............................................................................................................................

Securities of other U.S. Government agencies and corporations.........................................

Obligations of States and subdivisions..............................................................................................

Other secu rities..............................................................................................................................................

T r a d i n g a c c o u n t s e c u r i t i e s 3...................................................................................................................

F e d e r a l f u n d s s o l d 4.........................................................................................................................................

O t h e r lo a n s a nd d i s c o u n t s — t o t a l ..........................................................................................................

Real estate loans— t o t a l...............................................................................................................................

Secured, by fa r m la n d................................................................................................................................

Secured by residential properties:

Secured by 1- to 4-famxUi residential properties:

Insured by Federal Housing Administration....................................................................

Guaranteed by Veterans Administration..........................................................................

Not insured or guaranteed by F H A or V A .......................................................................

Secured by m u lt i f a m i l y (5 or more) properties:

Insured by Federal Housing Administration 3 .................................................................

Not insured by FH A 3 .................................................................................................................

Secured by other properties ......................................................................................................................

Loans to domestic commercial and foreign b a n k s .........................................................................

Loans to other financial institutions......................................................................................................

Loans to brokers and dealers in secu rities......................................................................................

Other loSns for purchasing or carrying secu rities..........................................................................

Loans to farmers (excluding loans on real e s t a t e ) ........................................................................

Commercial and industrial loans (including open m ar ket p a p e r ) ........................................

Other loans to individuals— t o t a l .............................................................................................................

Passenger automobile installment loans .........................................................................................

Credit cards and related plans:

Retail (charge account) credit card p la ns .................................................................................

Check credit and revolving credit p l a n s .....................................................................................

Other retail consumer installment lo a n s .......................................................................................

Residential repair and modernization installment loans .......................................................

Other installment loans for personal expenditures ...................................................................

Single-payment loans for personal expenditures........................................................................

All other loans (including o v e r d ra ft s )..................................................................................................

279,980,5912

56,181,467

3,692,593

16,917,834

13,816,911

80,713

249,421

21,423,995

89,661,642

66,090,869

2,112,292

20,103,538

1,354,943

127,413,856 2

30,330,432

1,731,465

5,966,563

2,613,165

12,570,273

7,448,966

1,032,864

7,310,112

4,030,000

2,107,360

6,224,041

45,156,607

27,819,669

9,062,043

(5)

(5) 2,807,751

2,693,068

4 ,480,462

8,776,345

3,402,771

379,405,384 2 407,283,2692 455,445,184 2 505.453.732 2

60,436,719

4,865,803

17,992,395

14,354,186

484,817

255,865

22,483,653

68,651,850

5,457,281

19,068,820

15,136,611

257,066

250,872

28,481,200

77,532,592

5,953,155

20,275,051

16,520,060

544,658

280,249

33,959,419

83,269.951

7,216,003

21,230,246

18,089,886

334,917

264,433

36,134,466

103,650,708

59,209,832

4,513,114

38,480,349

1,447,413

104,285,823

55,903,996

5,959,194

40,831,664

1,590,969

123,263,625

62,229,348

8,901,164

49,820,973

2,312,140

135,242,315

64,171,324

10,081,641

58,391,738

2,597,612

2,064,215

203,061,2012

49,393,933

2 ,888,012

7,592,405

2,637,439

21,929,584

14,346,493

2.095.012

13,186,038

5,087,694

3,175,076

8.203.013

71,235,183

45,497,461

17,139,214

(5)

(5) 4,176,950

3,126,804

7,388,640

13,665,853

5,187,791

2,460,941

220,331,6902

54,099,590

3,112,422

7,441,201

2,556,527

24,659,845

16,329,595

2,132,957

13,186,453

5,643,112

3,149,552

8,549,399

80,408,482

47,992,068

18,290,164

(5)

(5) 4,692,533

3,216,162

8,091,439

13,701,770

5,170,077

3,924,357

237,518,086 2

58,678,014

3,419,336

7,603,100

2,613,060

27,157,632

17,884,886

1,847,683

12,447,077

6,017,418

3,724,055

9,260,220

88,257,588

51,628,083

18,890,458

828,313

521, 909

4,781,232

3,351,554

8,361,180

14,893,437

5,657,948

6,526,458

264.671.395 2

65,332,745

3,735,180

7,809,567

2,626,560

30,712,679

20,448,759

2,145,604

13,676,953

6,409,302

4,068,900

9,712,410

98,161,381

58,414,799

21,200,443

1,312,020

798,115

5,520,274

3,494,813

9,390,559

16,698,575

6,749,301

530,714,711

89,335,129

7,346,973

21,452,826

19,389,950

230,150

320,921

40,594,309

122.203,185

53,262,588

9,239,140

57,572,007

2,128,850

3,181,756

9,712,405

286.751.602

70,325,953

3,992,931

7,262,023

2,596,261

31,210,921

562,501

2,647,857

22, 053, 459

2,425,147

14,938,963

5,646,962

3,994,818

10,323,657

108,393,788

63,355,683

22,706,108

2,639,497

1,082,791

6,269,924

3,654,863

9,936,340

17,066,160

7,346,631

264 FEDERAL DEPOSIT INSURANCE CORPORATION

Digitized for FRASER 

http://fraser.stlouisfed.org/ 

Federal Reserve Bank of St. Louis
Total loans and securities

Bank premises, furniture and fixtures, and other assets representing bank premises...

Real estate owned other than bank premises........................................................................

Investments in subsidiaries not consolidated3 .....................................................................

Customers' liability on acceptances outstanding...................................................................

Other assets..................................................................................................................................

Total liabMities, reserves, and capital accounts...............................................................

Business and personal deposits— to ta l..............................................................................

Individuals, partnerships, and corporations—demand.....................................................

Individuals, partnerships, and corporations—tim e........................................................... Savings deposits................................................................................................................................. Deposits accumulated for payment of personal loans.............................................................. Other deposits o f individuals, partnerships, and corporations..............................................

Certified and officers' checks, letters of credit, travelers' checks, etc...........................

Government deposits—to ta l..................................................................................................

United States Government—demand...................................................................................

United States Government—tim e.........................................................................................

States and subdivisions—demand.......................................................................................

States and subdivisions—tim e.............................................................................................

Domestic interbank deposits—to ta l...................................................................................

Commercial banks in the United States—demand...........................................................

Commercial banks in the United States—tim e.................................................................

Mutual savings banks in the United States-dem and.....................................................

Mutual savings banks in the United States—tim e............................................................

Foreign governm ent and bank deposits—to ta l...............................................................

Foreign governments, central banks, etc.—demand.........................................................

Foreign governments, central banks, etc.—tim e...............................................................

Banks in foreign countries—demand..................................................................................

Banks in foreign countries—tim e.........................................................................................

Total deposits.................................................................................................................... Demand............................................................................................................................................

T im e.................................................................................................................................................

Miscellaneous lia b ilitie s —to ta l.............................................................................................

Federal funds purchased (borrowed)7................................................................................

Other liabilities for borrowed money...................................................................................

Mortgage indebtedness 3........................................................................................................

Acceptances outstanding........................................................................................................

Othar liabilities........................................................................................................................

Total lia b ilitie s ..................................................................................................................

M inority interest in consolidated subsidiaries..............................................................

Reserves on loans and securities— to ta l..........................................................................

Reserve for bad debt losses on loans..................................................................................

Other reserves on loans3.......................................................................................................

Reserves on securities3..........................................................................................................

217,075,498 308,776,124 327,078,454 364,706,068 406,440,168 421,848,948

3,450,217

93,778

5,144,222 6 5,619,987 6 6,007,170

282,704

6,656,856

323,257

8,070,059

360,820

651,095

1,651,595

1,528,036

1,862,571

3,185,748

2,178,017

3,754,961

2,314,772

4,601,878

2,472,778

6,290,722

3,308,881

7,139,779

279,980,591 379,405,384 407,283,269 455,445,184 505,453,732 530,714,711

203,088,106

123,489,686

74,561,084

63,887,537

771,554

9,901, 993

5,037,336

275,205,357

139,077,920

130,195,436

92,554,897

1,078,207

36,562,332

5,932,001

293,565,757

144,323,672

142,261,089

90,076,746

1,223,553

50, 960, 790

6,980,996

329,860,033

158,491,340

162,727,918

94,451,458

1,283,923

66,992,537

8,640,775

361,993,247

172,006,973

180,506,278

96,166,256

1,215,522

83,124,500

9,479,996

365,934.821

178,185,683

176,240,900

93,796,302

1,129,305

81,315,293

11,508,238

23.881,005

5,943,251

280,030

12,215,686

5,442,038

32,216.843

5,523,816

281,330

14,241,724

12,169,973

33,768,382

4,990,164

257,599

15,059,104

13,461,515

36,990.123

5,238,918

285,533

15,577,942

15,887,730

41,385,278

5,012,445

376,629

16,881,042

19,115,162

36,092,200

5,050,538

222,560

17,559.438

13,259,664

16,680,600

15,751,918

213,214

700,355

15,113

17,311,718

15,779,062

510,159

860,378

162,119

18,355.321

16,947,228

476,896

782,525

148,672

20,660.087

18,788,406

727,014

935,212

209,455

23,221,458

21,424,784

714,271

933,799

148,604

24.858,037

23,394,428

415,216

1,017,123

31,270

4.255,164

656,922

2,178,055

1,297,787

122,400

6,778,763

892,867

4,086,126

1,529,097

270,673

7,150.699

869,268

4,212,084

1,784,407

284,940

8.285.680

874,451

5,166,228

1,909,911

335,090

8,051,716

866,885

4,752,732

2,118,758

313,341

10,104,607

940,239

6,378,964

2,475,098

310,306

247,904,875

165,092,941

82,811,934

331,512,681

183,836,865

147,675,816

352,840,159

191,737,364

161,102,795

395.795.923

210, 456, 955

185,338,968

434,651.699

228,724,682

205,927,017

436,989,665

240,130,785

196,858,880

7,346,272

462,309

13.976,496

2,438,413

1,898,290

18,413,009

2,824,088

1,904,513

20.910,731

4,980,322

568,797

28.958.217

7,468,200

1,214,440

47,966,725

14,684,700

3,367,342

601,562

3,387,309

25,925,812

1,689,406

5,194,557

1,897,569

7,742,224

2,234,455

11,449,953

2,382,072

12,979,540

2,508,707

17,766,870

255,251,147 345,489,177 371,253,168 416,706,654 463,609,916 484,956,390

3,295

6,178,797

5,885,873

108,824

184,100

2.606.474

2.606.474

4.011.273

4.011.273

4.336.933

4.336.933

4.732.606

4.732.606

5.215.817

5.215.817

ASSETS AND LIABILITIES OF BANKS 265

Digitized for FRASER 

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Federal Reserve Bank of St. Louis
Table 108. ASSETS AND LIABILITIES OF INSURED COMMERCIAL BANKS IN THE UNITED STATES (STATES AND OTHER AREAS).

DECEMBER CALL DATES, 1961, 1965-1969-CONTINUED

(Amounts in thousands of dollars)

Asset, liability, or capital account item Dec. 30, 1961 Dec. 31, 1965 Dec. 31, 1966 Dec. 30, 1967 Dec. 31, 1968 Dec. 31, 19691

Capital accounts— to ta l....................................................................................................... 22.122,970 29,904,934 31,693,168 34,005,924 36,627,999 39,576.229

Capital notes and debentures................................................................................................ 22,107 1,652,701 1,729,902 1,984,390 2,110,137 1,998,316

Equity capital—total ......................................................................................................... 22,100,863 28,252,233 29,963,266 32,021,534 34,517,862 37,577,913 Preferred stock.................................................................................................................................... 14,745 39,890 61,583 87,076 90,686 103,416 Common stock...................................................................................................................................... 6,584,701 8,507,770 8,856,837 9,253,642 9,772,605 10,529,322 Su rp lu s................................................................................................................................................. 10,798,364 13,464,797 13,998,697 14,983,375 16,173,907 17,460,832 Undivided profits............................................................................................................................... 4,156,764 5,437,575 6,166,477 6,610,743 7,419,669 8,426,787 Reserve for contingencies and other capital reserves.................................................................. 546,289 802,201 879,672 1,086,698 1,060,995 1,057,556

PERCENTAGES

Of to ta l assets:

Cash and balances with other banks.................................................................................... 20.1% 15.9% 16.9% 17.0% 16.5% 16.8%

U.S. Treasury securities and securities of other U.S. Government agencies and corporations .................................................................................................................................... 24.3 16.8 15.2 15.6 14.7 11.8

Other securities......................................................................................................................... 7.7 10.5 10.4 11.5 12.1 11.8

Loans and discounts (including Federal funds sold and securities purchased under 

agreements to resell)........................................................................................................... 45.5 54.1 54.7 53.0 53.6 55.9

Other assets............................................................................................................................... 2.4 2.7 2.8 2.9 3.1 3.7

Total capital accounts.............................................................................................................. 7.9 7.9 7.8 7.5 7.2 7.5

Of total assets other than cash and U.S. Treasury securitie s:

Total capital accounts............................................................................................................. 14.0 11.5 11.2 10.8 10.2 10.2

Number of banks............................................................................................................................. 13,115 13,547 13,541 13,517 13,488 13,473

1 For description of changes in 1969 in the Report of Condition, see p. 253 and notes to tables.

2 Assets in 1968 and prior years include “ Other loans and discounts" at gross (before deduction of valuation reserves) value, as reported in 1969. "Other loans and discounts" in 1965-1968 exclude 

Federal funds sold, now reported separately.

sNot available prior to figure shown, see note 1.

4 Prior to December 31, 1965, “ Federal funds sold (loaned)" not reported separately; most were included with loans to banks. Beginning in 1967, includes securities purchased under agreements to

resell, which previously were reported with “ Loans to domestic commercial and foreign banks” and “ Other loans for purchasing or carrying securities."

6Before 1967, loans extended under credit cards and related plans were distributed among other installment loan items.

6 Net of mortgages and other liens; previously included with “ Other liabilities." Includes real estate owned other than bank premises.

7 Prior to December 31, 1965, Federal funds purchased were included in “ Other liabilities for borrowed money"; beginning in 1967, includes securities sold under agreements to repurchase, which 

previously were reported with “ Other liabilities for borrowed money.”

266 FEDERAL DEPOSIT INSURANCE CORPORATION

Digitized for FRASER 

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Federal Reserve Bank of St. Louis
(Amounts in thousands of dollars)

Table 109. ASSETS AND LIABILITIES OF INSURED MUTUAL SAVINGS BANKS IN THE UNITED STATES (STATES AND OTHER AREAS),

DECEMBER CALL DATES, 1961, 1965-1969

Asset, liability, or surplus account item Dec. 30, 1961 Dec. 31, 1965 Dec. 31, 1966 Dec. 30, 1967 Dec. 31, 1968 Dec. 31, 1969

Total assets........................................................................................................................ 37,064,623 50,499,716 53,049,468 57,867,208 62,123,491 64,633,716

Cash, balances w ith banks, and collection item s—to ta l................................. 828.199 904,000 847,825 881,596 883,058 780,079

Currency and coin....................................................................................................... 126,598 142,598 145,587 153,639 164,965 179,378

Demand balances with banks in the United States.............................................. 490,382 493,600 474,276 461,378 497,725 499,506

Other balances with banks in the United States................................................... 167,637 212,193 166,743 202,325 157,610 42,964

Cash items in process of collection.......................................................................... 43,582 55,609 61,219 64,254 62,758 58,231

S ecurities—to ta l........................................................................................................... 9.847.742 8,770,371 8.675.750 10.447.028 11.802,948 11,843,577

Obligations of the U.S. Government, net—to ta l................................................. 4.689,898 3,759,961 3,323,662 3.110,649 2,854,896 2,445,609

Valuation reserves....................................................................................................... 23,841 15,787 13,504 13,610 12,559 13,004

Obligations of the U.S. Government, gross—to ta l............................................. 4,713,739 3,775,748 3,337,166 3,124,259 2,867,455 2,458,613

Treasury bills........................................................................................................................ 137,757 309, 700 289,812 365,155 284,785 122,070 Treasury certificates of indebtedness............................................................................... 43,881

233,269 16,900 50 1,800 2,043 Treasury notes maturing in 1 year or le s s .................................................................. 146,292 98,058 109,244 146,108 158,515 Treasury notes maturing after 1 year............................................................................. 660,190 89,827 219,584 487,248 696,291 654,983 United States nonmarketable bonds................................................................................ 165,631 67,037 61,857 36,129 25,560 13,997 Other bonds maturing in 1 year or less.......................................................................... 64,902 32,008 34,647 70,330 116,940 91,152 Other bonds maturing in 1 to 5 years............................................................................ 393,825 856,373 797,174 604,801 453,476 437,306 Other bonds maturing in 5 to 10 years........................................................................... 1,328,363 980,222 684,249 386,957 152,659 11,718 Other bonds maturing after 10 years.............................................................................. 1,617,533 1,183,254 1,003,468 902,375 808,814 762,119

Guaranteed obligations............................................................................................... 68,388 111,035 131,417 161,970 181,022 204,710

O bligations of States and subdivisions, n e t......................................................... 628,978 300,273 236,697 205,323 185,211 185,388

Valuation reserves...................................................................................................... 10,236 6,927 6,168 6,126 5,733 5,561

O bligations of States and subdivisions, gross..................................................... 639,214 307,200 242,865 211,449 190,944 190,949

Other bonds, notes, and debentures, net— to ta l................................................ 3,850,055 3,574,161 3,941,772 5,752,972 7,150,316 7,396.659

Valuation reserves....................................................................................................... 23,363 21,021 22,642 24,055 22,634 26,765

O ther bonds, notes, and debentures, gross—to ta l............................................ 3,873,418 3,595,182 3,964,414 5,777,027 7,172,950 7,423,424

Railroads....................................................................................................................... 516,916 357,906 368,290 480,595 500,629 512,297

U tilities.......................................................................................................................... 1,824,076 1,523,624 1,654,151 2,714,948 3,436,139 3,624,115

Industrials..................................................................................................................... 477,080 404,512 429,976 760,267 950,371 953,590

Securities of Federal agencies and corporations not guaranteed by U.S................ 505,463 842,356 1,009,066 1,049,964 1,235,256 1,149,455

All other........................................................................................................................ 549,883 466,784 502,931 771,253 1,050,555 1,183,967

Corporate stocks, net—to ta l..................................................................................... 678,811 1,135,976 1,173,619 1,378,084 1,612,525 1.815,921

Valuation reserves....................................................................................................... 66,668 46,597 42,067 38,615 35,084 37,918

Corporate stocks, gross—to ta l................................................................................. 745,479 1,182,573 1,215,686 1.416,699 1.647,609 1,853,839

Bank.............................................................................................................................. 171,616 221,935 225,177 232,232 246,455 251,903

Other.............................................................................................................................. 573,863 960,638 990,509 1,184,467 1,401,154 1,601,936

Loans and discounts, net—to ta l................................ ............................................ 25,812,078 39,964,343 42,593,177 45,492,445 48,287,403 50,828.568

Valuation reserves....................................................................................................... 219,703 209,331 140,483 126,789 121,876 120,928

Loans and discounts, gross— to ta l.......................................................................... 26,031,781 40,173,674 42,733,660 45,619,234 48,409.279 50,949,496

Real estate loans—total.............................................................................................. 25,639,686 39,435,679 41,808,403 44,595,807 47,177,405 49,329,087 Secured by fa rm la n d........................................................................................................... 45,346 46,819 47,719 110,695 111,935 106,943

ASSETS AND LIABILITIES OF BANKS 267

Digitized for FRASER 

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Federal Reserve Bank of St. Louis
Table 109. ASSETS AND LIABILITIES OF INSURED MUTUAL SAVINGS BANKS IN THE UNITED STATES (STATES AND OTHER AREAS),

DECEMBER CALL DATES, 1961, 1965-1969-CONTINUED

(Amounts in thousands of dollars)

Asset, liability, or surplus account item Dec. 31, 1961 Dec. 31, 1965 Dec. 31, 1966 Dec. 30, 1967 Dec. 31, 1968 Dec. 31, 1969

Secured by residential properties: Insured by F H A .............................................................................................................. Guaranteed by V A ........................................................................................................... Not insured or guaranteed by FH A or V A .............................................................. Secured by other properties................................................................................................

Commercial and industrial loans (including open market paper).......................

Loans to individuals for personal expenditures.....................................................

All other loans (including overdrafts)......................................................................

7,565,963

8,378,382 7,288,248 2,361,747

112,337

235,492

44,266

12,911,024 10,427,383

12,245,612

3,804,841

144,698

515,673

77,624

13,563,472 10,473,930

13,490,913

4,232,369

191,599

617,747

115,911

14,057,536 10,756,786 14,824,567 4,846,223

158,428

734,973

130,026

14,500,512

10,940,229 16,029,770 5,594,959

237.600

869.601 

124,673

14,742,577 11,030,456 17,193,309

6,255,802

206,348

987,198

426,863

Total loans and securities................................................. ...................................... 35,659,820 48,734,714 51,268,927 55.939.473 60,090,351 62,672,145

Bank premises..................................................................................................................

Furniture and fixtures.....................................................................................................

Real estate owned other than bank premises.............................................................

Miscellaneous assets.......................................................................................................

223,326

23,489

20,211

309,578

308,289

45,641

27,295

479,777

329,951

57,444

27,798

517,523

355,946

72,833

30,617

586,743

382,353

88,068

36,449

643,212

400,375

96,684

47,607

636,826

Total liabilities and surplus accounts.......................................................................... 37,064,623 50,499,716 53,049,468 57,867,208 62,123,491 64,633,716

Deposits— to ta l...................................................................................................................

Demand deposits of individuals, partnerships, and corporations.......................

Time deposits of individuals, partnerships, and corporations.............................

Other deposits (official checks, e tc.)........................................................................

States and subdivisions..............................................................................................

United States Government..........................................................................................

Interbank.......................................................................................................................

33,399,591

246,989

33,121,088

6,796

17,780

6,140

798

45,887,291

345,204

45,491,617

11,952

29,929

7,202

1,387

48,255,636

366,110

47,834,854

11,513

35,384

6,445

1,330

52,912,962

412,089

52,443,585

14,327

35,548

6,151

1,262

56,861,324

463,777

56,339,968

18,571

30,499

6,231

2,278

58,867,848

503,982

58,303,307

18,378

32,660

7,213

2,308

Total demand deposits......................................................................................................... 261,901 366,152 387,162 435,035 489,980

56,371,344

533,836

Total savings and time deposits ....................................................... 33,137,690

474,350

45,521,139 47,868,474 52,477,927 58,334,012

Miscellaneous lia b ilities................................................................................................ 655,013 653,735 716,615 781,183 1,068,152

Total liabilities (excluding surplus accounts).................................................. 33,873,941 46,542,304 48,909,371 53,629,577 57,642,507 59,936,000

Surplus accounts— to ta l.................................................................................................

Surplus...........................................................................................................................

Undivided profits..........................................................................................................

Other segregations of surplus....................................................................................

3,190,682

2,269,864

624,503

296,315

3,957,412

2,798,625

822,112

336,675

4.140,097

2,923,692

821,662

394,743

4,237,631

3,072,343

774,284

391,004

4,480,984

3,245,950

842,645

392,389

4.697,716

3,317,372

970,376

409,968

PERCENTAGES

Of total assets:

Cash and balances with other banks............................................................................

U.S. Government obligations, direct and guaranteed................................................

Other securities....................................................................................................................

Other assets...........................................................................................................................

Total surplus accounts........................................................................................................

2.2%

12.7

13.9

69.6

1.6

8.6

1.8%

7.5

9.9

79.1

1.7

7.8

1.6%

6.3

10.1

80.3

1.7

7.8

1.5%

5.4

12.7

78.6

1.8

7.3

1.4%

4.6

14.4

71.7

1.9

7.2

1.2%

3.8

14.5

78.6

1.8 

7.3

Of total assets other than cash and U.S. Government obligations:

Total surplus accounts........................................................................................................ 10.1 8.6 8.5 7.9 7.7 7.7

330 329 332 333 334 331

268 FEDERAL DEPOSIT INSURANCE CORPORATION

Digitized for FRASER 

http://fraser.stlouisfed.org/ 

Federal Reserve Bank of St. Louis
Table 110. PERCENTAGES OF ASSETS AND LIABILITIES OF INSURED COMMERCIAL BANKS OPERATING THROUGHOUT 1969 IN

THE UNITED STATES (STATES AND OTHER AREAS), DECEMBER 31, 1969

BANKS GROUPED BY AMOUNT OF DEPOSITS

Banks with deposits of—

Asset, liability, or capital account item All

banks

Less 

than 

$1 million

$1 million 

to

$2 million

$2 million 

to

$5 million

$5 million 

to

$10 million

$10 million 

to

$25 million

$25 million 

to

$50 million

$50 million 

to

$100 million

$100 million 

to

$500 million

$500 million 

to

$1 billion

$1 billion 

or

more

Total assets............................................................. 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0%

Cash and due from banks............................................. 16.9 17.9 13.3 12.3 11.9 11.9 12.4 13.2 16.4 19.1 20.5

U.S. Treasury securities1.............................................. 10.1 27.6 27.2 22.4 18.1 15.5 12.9 12.0 10.0 7.6 6.2

Obligations of States and political subdivisions1___ 10.9 2.0 3.4 7.4 11.2 13.2 13.5 13.9 12.5 11.1 8.6

Other securities 1.................................................... 2.1 9.4 8.4 6.7 5.2 4.1 3.5 3.1 1.7 1.1 8

Federal funds sold (loaned)2....................................... 1.8 3.5 2.5 2.9 3.2 2.9 2.2 2.0 1.6 2.1 1.2

Other loans and discounts—total................................ 54.1 38.5 44.1 46.9 48.7 50.3 52.9 52.9 54.4 54.7 56.5

Real estate................................................................... 13.2 7.1 10.6 14.3 15.6 16.8 17.6 17.7 15.3 12.9 9.3

To banks and other financial institutions.............. 3.3 1.3 .5 .5 .6 .7 .9 1.3 2.5 4.7 5.4

To purchase or carry securities............................... 1.8 .4 .3 .3 .6 .8 1.0 1.2 1.5 1.2 3.0

To farmers................................................................... 2.0 14.5 16.5 12.8 8.7 4.5 1.9 1.0 .8 .4 6

Commercial and industrial....................................... 20.4 4.2 5.4 6.7 8.7 10.7 13.7 15.1 17.8 21.0 29.2

Installment loans for personal expenditures 8.8 7.4 7.7 8.8 10.7 12.4 13.3 12.1 11.1 8.7 4.7

Single-payment loans for personal expenditures.. 3.2 2.7 2.5 2.9 3.2 3.7 3.9 3.7 4.0 4.0 2.3

All other loans............................................................ 1.4 .8 .6 .5 .6 .7 .7 .8 1.4 1.8 1.9

Other assets1................................................................... 4.2 1.2 1.1 1.4 1.8 2.1 2.6 2.9 3.4 4.2 6.2

Total lia b ilitie s , reserves, and capital a cc o u n ts .. 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0

Deposits—total............................................................... 82.3 84.2 88.0 89.1 89.6 89.2 88.3 87.5 85.6 81.8 75.2 Demand............................................................................. 45.3 58.5 50.3 43.8 42.2 40.9 41.6 42.0 46.2 50.1 46.7 T im e ...................................................................................

Individuals, partnerships, and corporations—

37.0 25.7 37.7 45.4 47.4 48.3 46.7 45.5 39.4 31.7 28.5

demand.................................................................... 33.8 51.4 43.2 36.7 34.8 33.7 34.4 33.5 35.2 36.1 32.1

Individuals, partnerships, and corporations—time 33.1 22.3 34.3 42.2 44.3 45.3 43.8 41.8 36.3 29.1 23.3

U.S. Government......................................................... 1.0 .4 .6 .8 1.1 1.2 .9 .9 1.0 1.1 1.0

States and subdivisions............................................ 5.8 9.3 9.2 8.5 8.2 7.6 6.8 7.5 6.9 7.3 3.4

Domestic interbank.................................................... 5.0 .4 .3 .3 .3 .6 1.3 2.5 5.1 6.8 8.0

Foreign government and bank................................. 1.4 .0 .0 .0 .0 .0 .0 .2 .1 .3 3.5

Other deposits............................................................. 2.2 .4 .5 .6 .8 .9 1.0 1.2 1.1 1.1 4.0

Federal funds purchased (borrowed)3....................... 2.8 .0 .0 .0 .1 .2 .3 .9 2.1 4.9 4.7

Other liabilities for borrowed money.......................... .6 .0 .0 .1 .1 .1 .2 .3 .4 1.1 1 1

Other liabilities4............................................................. 5.6 .4 .7 .9 1.4 2.0 2.7 2.8 3.2 3.4 10.5

Reserves on loans and securities................................ 1.1 .3 .6 .7 .9 .8 1.1 1.0 1.1 1.1 1.4

Capital notes and debentures...................................... .4 .0 .0 .0 .0 .1 .2 .3 .3 .7 5

Other capital accounts................................................... 7.1 15.1 10.7 9.1 8.1 7.5 7.2 7.1 7.3 6.8 6.7

Number of banks............................................................... 13,357 201 1,009 3,457 3,430 3,178 1,095 476 403 59 49

Securities held in trading accounts are included in "Other assets."

2 Includes securities purchased under agreements to resell.

3 Includes securities sold under agreements to repurchase.

4 Includes minority interest in consolidated subsidiaries.

Note: For income and expense data by size of bank, see tables 116 and 117, pp. 281-284 . Assets and liabilities (in $000) of all commercial banks by size of bank are contained in Assets and Liabilities-Commercial and M utual Savings Banks (with 1969 report of income), December 31, 1969.

ASSETS AND LIABILITIES OF BANKS 269

Digitized for FRASER 

http://fraser.stlouisfed.org/ 

Federal Reserve Bank of St. Louis
Table 111. PERCENTAGES OF ASSETS AND LIABILITIES OF INSURED MUTUAL SAVINGS BANKS OPERATING THROUGHOUT 1969 IN

THE UNITED STATES (STATES AND OTHER AREAS), DECEMBER 31, 1969

BANKS GROUPED BY AMOUNT OF DEPOSITS

Banks with deposits of—

Asset, liability, or surplus account item All

banks

Less 

than 

$5 million

$5 million 

to

$10 million

$10 million 

to

$25 million

$25 million 

to

$50 million

$50 million 

to

$100 million

$100 million 

to

$500 million

$500 million 

to

$1 billion

$1 billion 

or 

more

Total assets....................................................................................................... 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0%

Cash and due from banks............................................................................. 1.2 3.7 2.5 2.1 1.8 1.7 1.3 .9 1.2

Obligations of the U.S. Government, net.................................................... 3.8 5.6 12.5 6.8 5.7 4.3 4.0 3.6 2.9

.0 .0 .0 .0 .0 .0 .0 .0 .0

Other securities, net ................................................................................... 14.5 13.9 14.3 16.6 13.2 15.3 14.7 13.9 15.0

Valuation reserves .................................................................................... .1 .5 .0 .1 .1 .1 .1 .1 .1

Loans and discounts, net............................................................................... 78.6 75.0 69.1 73.2 78.0 77.2 78.2 79.6 79.0

Valuation reserves...................................................................................... .2 .4 .1 .2 .2 .2 .1 .2 .2

Real estate loans—total ......................................................................... 76.3 68.3 64.4 68.8 73.6 74.1 75.3 77.9 77.4

Secured by farmland ...................................................................................... .2 1.4 .8 .6 .3 .1 .0 4 .0

Secured by residential properties: Insured by F H A ........................................................................................... 22.8 10.4 6.0 8.3 11.5 15.0 21.3 25.3 26.9

Guaranteed by V A ........................................................................................ 17.1 2.6 5-4 6.5 9.2 11.1 16.8 16.8 21.6

Not insured or guaranteed by FH A or VA ........................................ 26.6 49-4 4-4

43.4 46.5 44 2 39.5 28.5 24.6 18.5

Secured by other properties............................................................................. 9 .7 8.9 7.0 8.3 8 .4 8 .7 10.8 10.4

Commercial and industrial loans ('includinR open market paper)........

Loans to individuals for personal expenditures....................................

.3

1.5

.2

5.0

.2

3.5

.2

3.3

.4

3.0

.1

2.4

.4

1.8

.2

1.1

.5

1.0

All other loans (including overdrafts)..................................................... .7 2.0 1.1 .9 1.3 .8 .9 .6 .4

Other assets..................................................................................................... 1.8 1.8 1.5 1.3 1.2 1.5 1.8 2.0 1.9

Total lia b ilitie s and surplus accounts...................................................... 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0

Deposits—total ....................................................................... 91.1 91.4 90.6 90.9 91.1 90.9 91.6 91.0 90.7

Demand deposits of individuals, partnerships, and corporations___

Time deposits of individuals, partnerships, and corporations...........

.8

90.2

.1

.4

90.3

.2

89.2

.5

90.0

.8

89.7

.9

89.9

.9

90.6

.7

90.3

.8

89.9

Other deposits ......................................................................................... .7 1.2 .5 .5 .2 .1 .0 .0

Miscellaneous liabilities ........................................................................... 1.7 1.3 .7 .6 .9 1.2 1.3 1.7 2.4

Surplus accounts—total ........................................................................... 7.3 7.3 8.7 8.5 8.1 7.9 7.2 7.3 7.0

Surplus ........................................................................... 5.1 3.6 5.2 5.0 4.7 4.7 4.9 5.3 5.4

Undivided profits ........................................................................... 1.5 2.4 2.6 2.7 2.4 2.5 1.7 1.4 .9

Other segregations of surplus.................................................................. .6 1.3 .8 .8 1.0 .7 .6 .6 .7

329 9 14 71 62 60 78 26 9

Note: Dollar amounts of assets and liabilities of all mutual savings banks are shown in Assets and Liabilities— Commercial and Mutual Savings Banks (with 1969 report of income); see table 110 notes.

270 FEDERAL DEPOSIT INSURANCE CORPORATION

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Federal Reserve Bank of St. Louis
Table 112. DISTRIBUTION OF INSURED COMMERCIAL BANKS IN THE UNITED STATES (STATES AND OTHER AREAS),

DECEMBER 31, 1969

BANKS GROUPED ACCORDING TO AMOUNT OF DEPOSITS AND BY RATIOS OF SELECTED ITEMS TO ASSETS OR DEPOSITS

Ratios 

(In percent)

All

banks

Number of banks with deposits of—

Less 

than 

$1 million

$1 million 

to

$2 million

$2 million 

to

$5 million

$5 million 

to

$10 million

$10 million 

to

$25 million

$25 million 

to

$50 million

$50 million 

to

$100 million

$100 million 

to

$500 million

$500 million 

to

$1 billion

$1 billion 

or

more

Ratios of obligations of States and subdivisions

to to ta l assets of—

Zero............................................................................... 988 123 286 375 135 55 13 1

More than 0.0 but less than 1.0..................................... 759 37 215 375 87 34 8 2 1 1.0 to 2.49.................................................................... 805 26 147 426 129 55 14 3 3 1 1

2.5 to 4.99.................................................................... 1,220 20 166 530 293 140 40 14 13 2 2 5.0 to 7.49.................................................................... 1,364 11 84 451 403 246 90 23 37 10 9 7.5 to 9.99.......................................................................... 1,777 5 66 404 547 461 134 63 73 11 13 10.0 to 12.49................................................................ 1,763 2 31 301 536 526 176 88 73 16 14 12.5 to 14.99...................................................................... 1,606 3 18 220 456 543 189 97 67 8 5 15.0 to 17.49...................................................................... 1,251 1 10 153 329 433 163 92 61 5 4

17.5 to 19.99...................................................................... 810 2 10 103 198 295 123 40 36 3

20.0 to 24.99............................................................ 784 13 96 215 270 11Q o 1

25.0 or more...................................................................... 346 1 5 60 106 122

11? 

27

OO

17

OZ

7

L

1

1

Ratios of U.S. Treasury securities to total assets of_

Less than 5 ........................................................................ 782 14 38 160 182 204 82 38 39 13 12 5 to 9.99............................................................................. 2,220 22 77 328 482 617 296 158 175 33 32

10 to 14.99......................................................................... 2,886 25 122 517 733 813 361 161 138 11 5

15 to 19.99......................................................................... 2,510 22 139 587 735 714 212 67 34

20 to 24.99......................................................................... 1,854 32 137 549 552 443 92 36 11 2

25 to 29.99......................................................................... 1,285 21 142 501 358 213 36 12 2

30 to 34.99......................................................................... 762 21 124 331 175 95 11 3 2

35 to 39.99......................................................................... 511 32 91 225 113 46 3 1

40 to 44.99......................................................................... 278 15 61 130 47 23 2

45 to 49.99......................................................................... 166 10 41 70 35 8 1 1

50 or more......................................................................... 219 17 79 96 22 4 1

ASSETS AND LIABILITIES OF BANKS 271

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Federal Reserve Bank of St. Louis
Table 112. DISTRIBUTION OF INSURED COMMERCIAL BANKS IN THE UNITED STATES (STATES AND OTHER AREAS),

DECEMBER 31, 1969-CONTINUED

BANKS GROUPED ACCORDING TO AMOUNT OF DEPOSITS AND BY RATIOS OF SELECTED ITEMS TO ASSETS OR DEPOSITS

Ratios 

(In percent)

Al!

banks

Number of banks with deposits of—

Less 

than 

$1 million

$1 million 

to

$2 million

$2 million 

to

$5 million

$5 million 

to

$10 million

$10 million 

to

$25 million

$25 million 

to

$50 million

$50 million 

to

$100 million

$100 million 

to

$500 million

$500 million 

to

$1 billion

$1 billion 

or

more

Ratios of loans to total assets of—

Less than 20...................................................................... 129 25 31 43 20 7 1 2

20 to 24.99......................................................................... 137 10 35 50 33 8 1

25 to 29.99......................................................................... 314 23 70 117 66 29 5 4

30 to 34.99......................................................................... 532 14 66 198 145 89 12 4 4

35 to 39.99......................................................................... 941 28 106 328 255 163 34 15 11 1

40 to 44.99......................................................................... 1,466 18 151 469 370 324 78 33 22 1

45 to 49.99......................................................................... 2,001 31 146 499 523 516 166 70 43 4 3

50 to 54.99......................................................................... 2,447 24 135 561 615 669 210 121 85 19 8

55 to 59.99......................................................................... 2,419 19 139 527 604 627 266 81 115 22 19

60 to 64.99......................................................................... 1,758 18 84 352 446 439 205 100 90 9 15

65 to 69.99......................................................................... 877 10 48 213 220 227 89 36 28 4 2

70 to 74.99......................................................................... 321 5 26 86 107 65 19 11 1 1

75 or more......................................................................... 131 6 14 51 30 17 11 2

Ratios of cash and due from banks to to ta l assets

of—

Less than 5 ........................................................................ 323 2 31 103 82 66 28 7 4

5.0 to 7.49.......................................................................... 1,760 20 124 501 513 412 123 44 23

7.5 to 9.99.......................................................................... 2,996 19 189 762 810 830 240 90 54 1 1

10.0 to 12.49...................................................................... 2,850 31 206 759 730 719 220 105 68 9 3

12.5 to 14.99...................................................................... 2,062 35 141 495 542 483 203 81 61 9 12

15.0 to 17.49...................................................................... 1,319 20 121 319 314 284 141 59 48 7 6

17.5 to 19.99...................................................................... 838 27 79 222 190 165 58 38 41 8 10

20.0 to 24.99...................................................................... 840 33 104 195 175 144 65 41 62 12 9

25.0 to 29.99...................................................................... 311 18 33 91 57 50 15 7 24 12 4

30.0 or m ore...................................................................... 174 26 23 47 21 27 3 4 18 1 4

272 FEDERAL DEPOSIT INSURANCE CORPORATION

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Federal Reserve Bank of St. Louis
Ratios of total demand deposits to to ta l deposits 

of—

Less than 25......................................................................

25 to 29.99.........................................................................

30 to 34.99.........................................................................

35 to 39.99.........................................................................

40 to 44.99.........................................................................

45 to 49.99.........................................................................

50 to 54.99.........................................................................

55 to 59.99.........................................................................

60 to 64.99.........................................................................

65 to 69.99.........................................................................

70 to 79.99.........................................................................

80 to 89.99.........................................................................

90 or more.........................................................................

295

641

1,159

1,638

2,051

1,979

1,789

1,385

912

588

541

217

278

1

2

6

5

9

11

23

29

21

19

33

25

47

11

26

54

65 

106 

136 

132 

120 

96

66 

99 

47 

93

67 

179 

281 

413 

525 

524 

479 

353 

2 11 

139 

161

68 

94

96

186

315

455

547

529

455

313

234

143

90

39

32

87

172

320

452

540

496

405

335

202

91

58

16

6

21

48

104

154

174

166

165

117

60

50

29

5

3

5

23

51

56

81

62

67

53

36

23

13

5

1

7

5

23

37

55

50

51 

53 

39 

34 

42

5

2

3

6

3

6

5

8

15

10

3

2

1

8

2

6

7

5

8

6 

4

Ratios of total capital accounts to to ta l assets

other than cash and due from banks, U.S.

Treasury securities, and U.S. Government

agency securitie s of—

Less than 7.5....................................................... 432 2 18 79 157 97 37 35 i 5

7.5 to 9.99.......................................................................... 2,941 1 25 262 712 1,083 445 199 169 24 21

10.0 to 12.49...................................................................... 3,766 3 72 709 1,157 1,10 2 379 172 131 23 18

12.5 to 14.99...................................................................... 2,371 13 150 765 743 494 1 1 1 43 39 9 4

15.0 to 17.49...................................................................... 1,364 9 154 599 319 212 39 11 19 2

17.5 to 19.99...................................................................... 787 18 113 353 209 66 13 10 5

20.0 to 22.49...................................................................... 538 21 107 261 102 37 7 1 2

22.5 to 24.99...................................................................... 327 22 95 157 41 11 1

25.0 to 29.99...................................................................... 374 29 107 180 43 8 4 2 1

30.0 to 34.99...................................................................... 195 24 73 72 19 4 1 1 1

35.0 to 39.99...................................................................... 113 14 40 54 2 3

40.0 or more...................................................................... 265 77 113 64 8 3

Ratios of to ta l capital accounts to to ta l assets

Less than 5 ........................................................................ 254 2 19 52 99 46 21 13 1 1

5 to 5.99............................................................................. 1,064 ..............2 16 132 271 377 145 68 44 2 7

6 to 6.99............................................................................ 2,616 4 60 447 722 810 308 122 110 16 17

7 to 7.99............................................................................. 3,079 7 109 691 859 827 302 141 112 19 12

8 to 8.99............................................................................. 2,301 13 155 626 660 533 160 67 66 14 7

9 to 9.99............................................................................. 1,483 16 147 530 396 263 60 29 33 5 4

10 to 10.99......................................................................... 984 16 132 391 230 146 41 13 13 1 1

11 to 11.99......................................................................... 609 30 122 263 109 57 18 6 3 1

12 to 12.99......................................................................... 323 22 65 142 46 31 6 5 6

13 to 14.99........................................................... 354 35 104 127 55 21 6 3 3

15 to 16.99....................................................................... 156 25 48 51 20 10 2

17 or more........................................................... 250 61 91 75 14 6 2 1

Number of banks........................................... 13,473 231 1,051 3,494 3,434 3,180 1,096 476 403 59 49

ASSETS AND LIABILITIES OF BANKS 273

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INCOME OF INSURED BANKS

Table 113. Income of insured commercial banks in the United States (States and other areas), 

1961-1969

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

other areas), 1961-1969

Table 115. Income of insured commercial banks in the United States (States and other areas), 

1969

Banks grouped by class of bank

Table 116. Income of Insured commercial banks operating throughout 1969 in the United 

States (States and other areas)

Banks grouped by amount of deposits

Table 117. Ratios of income of insured commercial banks operating throughout 1969 in 

the United States (States and other areas)

Banks grouped according to amount of deposits

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

areas), 1961-1969

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

and other areas), 1961-1969

The income data received and published by the Corporation 

relate to commercial and mutual savings banks insured by the 

Corporation.

Commercial banks

Prior to 1969, reports of income and dividends were submitted 

to the Federal supervisory agencies on either a cash or an accrual 

basis. Beginning in 1969, the revised consolidated reports of income

are submitted on an accrual basis for banks with assets of $50 

million or more (the cutoff figure will be $25 million in 1970). 

Smaller banks continue to have the option of submitting their 

reports on a cash or an accrual basis, except that unearned discount on installment loans, and income taxes, must be reported 

on an accrual basis. For more detail on the method of cash or accrual reporting by banks, and on the inclusion of subsidiaries in consolidated statements of condition and income, refer to page 253 of 

this report.

274 FEDERAL DEPOSIT INSURANCE CORPORATION

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Federal Reserve Bank of St. Louis
Income data are included for all insured banks operating at the 

end of the respective years, unless indicated otherwise. In addition, 

appropriate adjustments have been made for banks in operation 

during part of the year but not at the end of the year.

The Report of Income was revised extensively in 1969. Under 

“ Operating income," more detailed breakdowns of investment income 

were specified and income from Federal funds transactions was 

separated from other loan income. However, the overall contents 

of “ Operating income" are not changed significantly from prior 

years, the principal changes being the consolidation of subsidiaries 

and conversion to accrual accounting.

Under “ Operating expenses," expense of Federal funds transactions is broken out as a separate item; in prior years this item was 

included under “ Interest on borrowed money." “ Interest on capital 

notes and debentures" is included as an operating expense, whereas 

in prior years it had not been included as a charge against operating 

earnings or net income. “ Provision for loan losses" is included as 

an operating expense, beginning in 1969. This item covers actual 

loan losses (charge-offs less recoveries), or an average percentage 

of loan losses experienced during the previous five years, applied 

to average loans outstanding in 1969. Newly organized banks and 

others will also be permitted to determine their loan loss ratio 

by averaging forward from 1969 or their first year of operation. In 

prior years, loan losses for most banks (those on a reserve basis) 

were not charged against operating income or net income. Instead, 

transfers to loan loss reserves were included as a charge against 

net income (but not against operating income). Actual losses 

charged to loan loss reserves were treated as a memorandum item.

The 1969 report includes applicable income taxes for income 

before securities gains or losses. “ Applicable income taxes" is an 

estimate of the tax liability that a bank would incur if its taxes were 

based solely on operating income and expenses; that is, if there 

were no security gains or losses, no extraordinary items, etc.

Beginning in 1969, income from securities gains and losses is 

reported in total, gross and after taxes, not as separate gain or loss 

items as in prior years. It is included, along with a subtraction for 

minority interest in consolidated subsidiaries, before arriving at net 

income (after taxes).

“ Total provision for income taxes" is a memorandum item. It 

does not necessarily equal the sum of “ Applicable income taxes" 

and the tax effects of security gains or losses and of extraordinary 

charges or credits. The principal difference is accounted for by the 

fact that the transfer to reserve for bad debts generally exceeds 

provision for loan losss and, consequently, tends to reduce tax 

liability.

In comparing the 1969 report with prior data, certain generalizations are applicable. Because of the inclusion of additional items 

in “ Operating expenses," “ Income before taxes or security gains or 

losses" is understated compared with the current operating income 

of prior reports. On the other hand, “ Net income" for years prior 

to 1969 tends to be somewhat understated because it includes 

transfers to bad debt reserves which would generally exceed the 

provision for loan losses. Table 114 provides several operating ratios 

which afford comparisons between years prior to 1969 and more 

recent earnings experience.

Included in the changes in 1969 were the transfer of the tables 

“ Income of insured commercial banks . . . by State" and “ Income 

of insured mutual savings banks . . . by State", which formerly 

appeared in this report, to the Corporation's publication Assets and 

Liabilities, Commercial and Mutual Savings Banks.

Mutual savings banks

The present report of income and dividends for mutual savings 

banks was first used by the Corporation for the calendar year 1951. 

For a discussion of the history and principles of this report see pp. 

50-52 in Part Two of the 1951 Annual Report.

Sources of data

National banks and State banks in the District of Columbia not 

members of the Federal Reserve System: Office of the Comptroller 

of the Currency.

State banks members of the Federal Reserve System: Board of 

Governors of the Federal Reserve System.

Other insured banks: Federal Deposit Insurance Corporation.

INCOME OF INSURED BANKS 275

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Federal Reserve Bank of St. Louis
Table 113. INCOME OF INSURED COMMERCIAL BANKS IN THE UNITED STATES (STATES AND OTHER AREAS), 1961-1969

(Amounts in thousands of dollars)

Income item 1961 1962 1963 1964 1965 1966 1967 1 1968 1 1969 1

11,069,604

7,008,701

12.218.959

7,717,845

13.509.713

8,672,315

15.024.487

9,785,238

16,817.187

11,204,863

19,508.414

13,286,400

21,781.611

14,646,637

25.478.404

17,121,079

30,806.805

20,726,664

811,580

2,845,257

551,068

2,215,971

134,548

1,021,900

1,120,196

693,578

686,043

Income on Federal funds sold and securities purchased under agreeInterest on U.S. Treasury securities ........................................................ 1,901,732 2,093,207 2,176,454 2,240,389 2,224,711 2,317,794 2,601,900 3,004,655

Interest and dividends on securities of other U.S. Government agencies

Interest and dividends on other securities3.............................................. 629,134

502,871

630,458

223,283

173,425

759,030

543,916

681,243

237,446

186,272

921,060

573,252

728,857

248,362

189,413

1,085,334

629,694

781,405

280,289

222,138

1,285,287

689,628

842,775

304,276

265,647

1,531,517

756,130

915,049

354,036

347,488

1,904,886

820,269

987,187

411,021

409,711

2,376,223

906,206

1,055,964

478,028

536,249

Service charges on deposit accounts..........................................................

Other service charges, collection and exchange charges, commissions,

Other operating income.................................................................................

Operating expense— to ta l4 .................................................... 7.440.492

2,898,830

377,494

2,106,645

8.589.177

3,073,552

419,098

2,845,283

9.714.980

3,284,375

457,033

3,464,308

10.897.460

3,519,062

490,732

4,088,061

12.486.120

3,762,024

525,692

5,070,781

14.561.852

4,095,742

598,768

6,259,472

16.553.642

4,537,896

667,345

7,379,863

19.354.237

5,101,803

755,744

8,681,705

24.076.791

5,878,812

903,469

9,789,893

1,205,787

433,120

100,742

1,073,339

1,331,926

258,587

773,072

521,064

3,397,493

Salaries and wages of officers and employees..........................................

Pensions and other employee benefits.......................................................

1 nterest on deposits .............................................................................

Expense of Federal funds purchased and securities sold under agreemonte tn rpnnrrhacp5

Interest on other borrowed money 5...........................................................

Interest on capital not6s 3nd debentures *

37,997 64,325 106,517 127,277 189,519 301,768 266,476 528,986

Occupancy expense of bank premises, net .............................................. 510,691

647,715

137,024

224,852

555,670

699,296

143,626

267,885

608,462

760,908

152,446

311,518

670,243

831,158

160,915

362,301

731,573

898,440

166,867

411,889

802,060

980,444

178,384

458,695

873,541

1,059,785

186,244

533,846

970,034

1,173,423

203,389

631,564

Gross occupancy expense ........................................................

Less rental income ......................................................

Furniture and equipment, depreciation, rental costs, servicing, etc........

Prnuicinn fnr Inan fnccPQ *4

Other operating expenses............................................................................. 1,283,983 1,363,364 1,482,767 1,639,784 1,794,642 2,045,347 2,294,675 2,684,401

Income before income taxes and securities £dins or losses®..........

6,730,014

Maf n irra n t nnoratino oarninoc fnlri 3.629.112 3.629,782 3.794.733 4,127,027 4.331,067 4.946.562 5,227,969 6,124,167

Annlirahlo inm m p ta ypc 6 2,164,419

4,565,595

-237,707

-512,242

-274,535

4,327,888

6,914

3,994

-2 ,9 2 0

235

1 n m m a hofnro CAruritioc oainc nr Ihccpc 6

C o n irifio c oainc nr Inccpc npf6

Gross ................................................................................................... 409,440 198,048 117,558 -13,674 -4 2 6 -392,447 -4 ,3 1 2 -438,520

T axes ®

Kl/>f in rnmo hafnro oivtrsnrHin!)r\/ itom c 6

Gross.................................................................................................................

4,334,567

276 FEDERAL DEPOSIT INSURANCE CORPORATION

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Federal Reserve Bank of St. Louis
Recoveries, charge-offs, transfers from reserves, net.

Net income before taxes (old basis).....................................

Total provision for income ta x e s ..........................................

Federal income taxes................................................................

State and local income taxes...................................................

Net income after taxes (old basis).........................................

Dividends on capital— to ta l7..............................

Cash dividends declared on common stock. .. 

Cash dividends declared on preferred stock 7.

-636,730

3.401,822

1.406,102

1,317,292

88,810

1.995.720

895,053

893,230

1,823

-567,652

3,260.178

1,256,382

1,159,725

96,657

2,003,796

941,189

939,426

1,763

-5 32,74 5

3,379,546

1,226,783

1,130,629

96,154

2.152.763

993,374

990,039

3,335

-681.521

3.431.832

1.148.203

1,050,624

97,579

2.283,629

1,088.310

1,062,561

25,749

-786,74 6

3,543,895

1,029,162

927,423

101,739

2,514,733

1,202.349

1,146,186

56,163

-8 39.86 9

3.714,246

1.029.906

911,585

118,321

2.684.340

1,307.387

1,240,048

67,339

-9 04.64 5

4.319.012

1.177.154

1,020,988

156,166

3.141.858

1.426.202

1,342,538

83,664

-992.665

4.692.982

1.267.044

1,086,889

180,155

3.425.938

1.589,114

1,488,670

100,444

1.505,336

1,287,514

217,822

1.769.314

1,762,279

7,035

Memoranda

Recoveries credited to reserves (not included above):

On loans...........................................................................

On securities...................................................................

Losses charged to reserves (not included above):

On loans...........................................................................

On securities...................................................................

73,844

9,911

249,500

22,463

84,863

4,714

238,825

16,305

96,897

6,216

323,475

17,314

157,791

4,515

394,181

43,683

124,062

4,158

429,490

25,761

143,859

3,300

545,647

60,282

168,680

5,638

601,194

29,072

219,115

1,913

629,707

32,262

209,124

1,986

697,874

12,448

Average assets and liabilities 8

Assets— to ta l.........................................................................

Cash and due from banks..............................................

United States Treasury securities.................................

Obligations of States and political subdivisions 9. ..

Other securities 9.............................................................

Loans and discounts........................................................

All other assets................................................................

Liabilities and capital— to ta l. ..

Total deposits............................... Demand deposits.......................... Time and savings deposits........

Borrowings and other liabilities. 

Total capital accounts.................

256,598,531

46,613,211

61,792,135

21,660,321

120,370,317

6,162,547

276,869,632

49,438,670

64,519,914

25,761,084

130,437,964

6,712,000

301.861.288

50,997,566

64,058,431

328,756,207

54,449,343

61,439,390

360.944.351

59,013,596

59,419,551

391.255,121

62,867,398

56,088,649

425.619.337

70,248,679

57,357,584

31,421,875

147,948,743

7,434,673

36,360,062

168,082,284

8,425,128

256,598.531

225,214,703

147,556,175

77,658,528

10,094,841

21,288,937

276,869.632

243,319,550

153,849,494

89,470,056

10,846,274

22,703,808

41,540,772

191,391,533

9,578,899

47,054,812

214,381,628

10,862,634

301.861.288

264,059,489

159,561,973

104,507,516

13.507.899

24.283.900

328.756.207

287,988,560

168,382,122

119,606,438

14,376,273

26,391,374

55,213,293

230,636,149

12,163,632

473.138,013

78,504,024

61,545,807

65,318,374

253,678,319

14,091,489

360.944,351

315,643,533

178,089,360

137,554,173

16,479,957 

28,820,861

391,255.121

340,336,714

185,336,407

155,000,307

20,067,721

30,850,686

516,325,483

86,663,384

56,724,083io

58,011,200io

ll,839,130io

283,479,251

19,608,435io

425.619,337

368,906,501

194,982,924

173,923,577

23,836,162

32,876,674

473.138.013

407,508,260

213,628,389

193,879,871

30,297,605

35,332,148

516.325.483

431,468,339 

230,490,525

200,977,814

46,642,486 

38,214,658

Number of employees (end of period ). 

Number of banks (end of period)........

633,380 656,153 648,967 702,658 732,163 777,361 815,037 866,725 904,008

13,115 13,124 13,291 13,493 13,547 13,541 13,517 13,4 13,473

1 Figures before 1969 may differ slightly from those published by the Board of Governors of the Federal Reserve System and the Comptroller of the Currency because of differences 

in rounding techniques. Revisions in Report of Income in 19d9 are discussed on pp. 274-275; also see notes to tables.

2 “ Income on Federal funds sold" was included in "Interest and discount on loans” in 1968 and prior years (see 1968 report p. 198)

3 income from "Securities of other U.S. Government agencies and corporations" and from "Obligations of States and political subdivisions” were included in income from "Other securities” in 1968 

ana prior years.

4 ‘‘Interest on capital notes and debentures" and "Provision for loan losses" not included in "Operating expense— total" in 1968 and prior years

5 "Expense of federal funds purchased and securities sold under agreements to repurchase" were included in "Interest on borrowed money” in 1968 and prior vears

e Data are not available prior to 1969. See p. 275 of this report.

7 ln years, “ Dividends declared on preferred stock" was reported in combination with "Interest on capital notes and debentures.”

8 *964-1969 averages of amounts reported at beginning, middle, and end of year. For 1961 and 1962, averages of amounts for four consecutive official call dates beginning with the end of the previous 

been revised* to8a'grossbasis current year. For 1963, averages of amounts reported at 1962 year-end, 1953 spring, midyear, and year-end calls. 1961-1968 averages of securities and loans have

9 In 1968 and prior years, "Obligations of States and political subdivisions" were included in "Other securities.”

i° Securities held in trading accounts are included in "A ll other assets."

INCOME OF INSURED BANKS 277

Digitized for FRASER 

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Federal Reserve Bank of St. Louis
Table 114. RATIOS OF INCOME OF INSURED COMMERCIAL BANKS IN THE UNITED STATES (STATES AND OTHER AREAS), 1961-1969

Income item 1961 1962 1963 1964 1965 1966 1967 1968 1969

Am ounts per $100 of operating income 

O perating income—to ta l................................................................................................................... $100.00

63.31

$100.00

63.16

$100.00

64.19

16.11

$100.00

65.13

14.91

$100.00

66.63

13.23

$100.00

68.11

11.88

$100.00

67.24

11.95

$100.00

67.20

11.79

$100.00

69.91

9.23 

7.19

2.23 

3.32 

3.64

9 95

Income on loans 1...............................................................................................................................

Interest on U.S. Treasury securities2............................................................................................ 17.18 17.13

Interest on State and local government obligations2 ................................................................

Interest and dividends on other securities2................................................................................. 5.68 6.21 6.82 7.22

4.19

5.20 

1.87 

1.48

7.64

4.10

5.01

1.81

1.58

7.85

3.88

4.69

1.81

1.78

8.74

3.77

4.53

1.89

1.88

9.33

3.56

4.14

1.88

2.10

Trust department income................................................................................................................. 4.54 4.45 4.24

Service charges on deposit accounts.............................................................................................. 5.70 5.58 5 39

Other charges, commissions, fees, etc.................................................................... 2.02 1 94 1.84

Other operating income.................................................................................................................... 1.57 1.53 1.41

L. CO

2.23

Operating expense—to ta l3............................................................................................................... 67.22 70.29 71 91 72.53

23.42

3.27

27.21

.85

4.46

2.41

74.25

22.37

3.13 

30.15

1.13 

4.35 

2.45

74.64

20.99

3.07

32.09

1.55

4.11

2.35

76.00

20.83

3.07

33.88

1.22

4.01

2.45

75.96

20.02

2.97

34.07

2.08

3.81

2.48

78.15

19.08

2.93

31.78

5.65

3.48

9 *51

Salaries and wages............................................................................................................................ 26.19 25.15 24.31 

Pensions and other benefits............................................................................................................ 3.41 3.43 3 38

Interest on time and savings deposits........................................................................................... 19.03 23 28 25.64

.79

4.50

2.31

Interest on borrowed money3.................................................................................................. .34 .53 

Occupancy expense of bank premises, net.......................................................................... 4.61 4 55

Furniture and equipment, etc............................................................................... 2.03 2.19

Provision for loan losses3................................................................................................................ 1.69

Other operating expenses................................................................................................................. 11.61 11.16 10.98 10.91 10.67 10.48 10.54 10.53 11.03

Income before income taxes and securities gains or lo s s e s ................................................ 21.85

Net current operating earnings (old basis)................................................................................ 32.78 29.71 28.09 27.47 25.75 25.36 24.00 24.04

Am ounts per $100 of to ta l assets 

Operating income—to ta l................................................................................................................... 4.31 4.41 4 48 4.57

1.26

4.66

1.20

4.99

1.26

5.12

1.23

5.38

1.29

5.97 Net current operating earnings (old basis)................................................................................... 1.41 1.31 1.26

Income before income taxes and securities gains or losses....................................................... 1.30

Net income4........................................................................................................................................ .78 .72 .71 .69 .70 .69 .74 .72 .84

Amounts per $100 of to ta l capital accounts

Net income4........................................................................................................................................ 9.37 8.83 8.86

4.08

4.77

8.65

4.03

4.53

8.73

3.98

4.56

8.70

4.02

4.46

9.56

4.08

5.22

9.70

4.21

5.20

11.34

4.61

6.71

Cash dividends declared on common stock......................................................................... 4.20 4.14

Net additions to capital from income................................................................................... 5.17 4.68

Special ratios

Income on loans per $100 of loans1............................................................. 5.82 5 92 5 86 5.82

3.65

5.85

3.74

6.20

4.13

6.35

4.54

6.75

4.88

7.60

5.02

3.82

5.79

.49

4.87

Income on U.S. Treasury securities per $100 of U.S. Treasury securities.............................. 3.08 3.24 3.40

Income on obligations of States and political subdivisions per $100 of obligations of States 

and political subdivisions2....................................................................

1 ncome on other securities per $100 of other securities2................................................ 2.90 2.95

.44

3.18

2.93

.46

3.31

2.98

.46

3.42

3.09

.47

3.69

3.25

.49

4.04

3.45

.51

4.24

3.64

.49

4.48

Service charges per $100 of demand deposits.................................................................... .43

Interest paid per $100 of time and savings deposits....................................................... 2.71

Number of banks, December 31.................................................................... 13,115 13,124 13,291 13,493 13,547 13,541 13,517 13 488 13 473

1 Includes Federal funds sold.

“ Interes! on State and local government obligations” included in "Interest and dividends on other securities” in 1968 and prior years. Income from securities held in trading accounts is included in 

“ Other operating income.

3 “ Interest on capital notes and debentures,” which is included in "Interest on borrowed money” in 1969, and "Provision for loan losses” were not included in "Operating expenses—total” in 1968 and 

prior years.

4 Because of changes in the form of reporting by banks, figure in 1969 is not fully comparable with those in 1968 and prior years; see table 113 and p. 275.

278 FEDERAL DEPOSIT INSURANCE CORPORATION

Digitized for FRASER 

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Federal Reserve Bank of St. Louis
Table 115. INCOME OF INSURED COMMERCIAL BANKS IN THE UNITED STATES (STATES AND OTHER AREAS), 1969

B A N K S G R O U PE D BY C LASS OF B A N K 

(Amounts in thousands of dollars)

Income item

O perating income— to ta l................................................................................................................

Interest and fees on loans.............................................................................................................

Income on Federal funds sold and securities .purchased under agreements to reseil.........

Interest on U.S. Treasury securities...........................................................*...............................

Interest and dividends on securities of other U.S. Government agencies and corporations

Interest on obligations of States and political subdivisions....................................................

Interest and dividends on other securities.................................................................................

Trust department income..............................................................................................................

Service charges on deposit accounts...........................................................................................

Other service charges, collection and exchange charges, commissions, and fees................

Other operating income..................................................................................................................

Operating expense— to ta l..............................................................................................................

Salaries and wages of officers and employees...........................................................................

Pensions and other employee benefits........................................................................................

Interest on deposits........................................................................................................................

Expense of Federal funds purchased and securities sold under agreements to repurchase

Interest on other borrowed money..............................................................................................

Interest on capital notes and debentures...................................................................................

Occupancy expense of bank premises, net.................................................................................

Gross occupancy expense...........................................................................................................

Less rental income......................................................................................................................

Furniture and equipment, depreciation, rental costs, servicing, etc......................................

Provision for loan losses................................................................................................................

Other operating expenses...................................................................................

Income before income taxes and securities gains or losses.............................................

Applicable income ta x e s ................................................................................................................

Income before securities gains or losses.................................................................................

Net securities gains or losses......................................................................................................

Gross.................................................................................................................................... ’ ’ ’ ’ ’ ’ '

Taxes......................................................................................................................................

Total

Members F.R. System Nonmembers 

F.R. System

Operating 

throughout 

the year

Operating 

less than 

National State full year

30,806.805 18.221,202 6,777,570 5,808,033 30,794,517 12,288

20,726,664 12,492,556 4,615,033 3,619,075 20,721,529 5,135

811,580 473,181 176,714 161,685 808,250 3,330

2,845,257 1,524,702 516,895 803,660 2,843,503 1,754

551,068 264,166 58,012 228,890 550,147 921

2,215,971 1,302,223 492,965 420,783 2,215,860 111

134,548 81,591 24,436 28,521 134,469 79

1,021,900 562,368 409,803 49,729 1,021,900

1,120,196 659,101 176,623 284,472 1,119,676 520

693,578 426,787 130,489 136,302 693,396 182

686,043 434,527 176,600 74,916 685,787 256

24,076,791 14,305,999 5,224,946 4.545,846 24,063,228 13,563

5,878,812 3,402,598 1,288,496 1,187,718 5,874,615 4,197

903,469 529,968 219,217 154,284 903,120 349

9,789,893 6,036,219 1,850,151 1,903,523 9,787,787 2,106

1,205,787 777,062 400,133 28,592 1,205,749 38

433,120 255,791 162,704 14,625 432,987 133

100,742 56,282 32,769 11,691 100,742

1,073,339 618,849 248,405 206,085 1,072,221 1,118

1,331,926 786,911 305,852 239,163 1,330,723 1,203

258,587 168,062 57,447 33,078 258,502 85

773,072 467,453 148,056 157,563 772,462 610

521,064 296,201 85,054 139,809 520,720 344

3,397,493 1,865,576 789,961 741,956 3,392,825 4,668

6,730,014 3,915,203 1,552,624 1.262.187 6,731,289 -1 ,2 7 5

2,164,419 1,259,107 554,319 350,993 2,164,133 286

4,565,595 2,656,096 998,305 911,194 4,567,156 -1 .5 6 1

-237,707 -125.716 -83,387 -28,604 -237,713 6

-512,242 -281,775 -178,516 -51,951 -512,248 6

-274,535 -156,059 -95,129 -23,347 -274,535

INCOME OF INSURED BANKS 279

Digitized for FRASER 

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Federal Reserve Bank of St. Louis
(Amounts in thousands of dollars)

Table 115. INCOME OF INSURED COMMERCIAL BANKS IN THE UNITED STATES (STATES AND OTHER AREAS), 1969

BANKS GROUPED BY CLASS OF B A N K -C O N T IN U E D

Income item Total

Members F.R. System Nonmembers 

F.R. System

Operating 

throughout 

the year

Operating 

less than 

National State full year

Net income before extraordinary ite m s....................................................................................................................

E xtraordinary charges or credits, n e t........................................................................................................................

Gross............................................................................................................................................. .....................................

Taxes.................................................................................................................................................................................

Less m inority in terest in consolidated subsidiaries . . . .

4,327,888

6,914

3,994

— 2,920

235

2.530.380

3.935

1,192

— 2,743

36

914.918

1.549

1,192

— 357

12

882.590

1,430

1,610

180

187

4.329.443

6,960

4,061

— 2,899

235

-1 .5 5 5

- 4 6

- 6 7

- 2 1

Net incom e..........................................................................................................................................................................

Total provision fo r income ta x e s ................................................................................................................................

Federal income taxes......................................................................................................................................................

State and local income taxes........................................................................................................................................

Dividends on capital—to ta l...........................................................................................................................................

Cash dividends declared on common stock................................................................................................................

Cash dividends declared on preferred stock..............................................................................................................

4,334,567

1,505,336

1,287,514

217,822

2,534.279

830.698

714,706

115,992

916,455

385.286

310,739

74,547

883,833

289,352

262,069

27,283

4,336,168

1,505.112

1,287,293

217,819

-1 ,6 0 1

224

221

3

1.769,314

1,762,279

7,035

1.068.095

1,063,666

4,429

455,307

453,185

2,122

245.912

245,428

484

1.769.289

1,762,254

7,035

25

25

Memoranda

Recoveries credited to reserves (not included above):

On loans............................................................................................................................................................................ 209,124

1,986

697,874

12,448

135,094

733

436,281

5,173

32,461

373

108,338

808

41,569

880

153,255

6,467

209,124

1,986

697,855

12,448

On securities.....................................................................................................................................................................

Losses charged to reserves (not included above):

On loans............................................................................................................................................................................

On securities.....................................................................................................................................................................

19

Number of Employees (end of period)............................................................................................................................ 904,008 520,058 183,441 200,509 902,762 1,246

Number of banks (end of period).................................................................................................................................... 13,473 4,669 1,201 7,603 13,357 116

Note: The Report of Income was revised extensively in 1969; the changes are outlined on pp. 274-275, and in notes to tables.

280 FEDERAL DEPOSIT INSURANCE CORPORATION

Digitized for FRASER 

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Federal Reserve Bank of St. Louis
Table 116. INCOME OF INSURED COMMERCIAL BANKS OPERATING THROUGHOUT 

AND OTHER AREAS)

BANKS GROUPED BY AM OUNT OF DEPOSITS

(Amounts in thousands of dollars)

1969 IN THE UNITED STATES (STATES

Banks with deposits of—

All Less $1 million $2 million $5 million $10 million $25 million $50 million $100 million $500 million $1 billion

banks1 than to to to to to to to to or

$1 million $2 million $5 million $10 million $25 million $50 million $100 million $500 million $1 billion more

30.794,517 10,203 101,380 759,260 1.595,039 3,199,271 2,522,591 2,223.385 5.851,279 2,966,656 11,565,453

20,721,529 5,280 56,290 439,355 949,639 1,955,386 1,595,668 1,430,056 3,911,717 2,063,099 8,315,039

808,250 237 1,862 20,157 54,711 112,088 84,136 60,446 139,096 58,031 277,486

2,843,503 2,641 25,418 159,679 273,656 456,548 297,415 240,061 530,687 206,062 651,336

550,147 934 7,210 46,103 73,711 120,150 82,499 64,176 83,923 23,642 47,799

2,215,860 119 2,076 32,142 103,866 251,739 207,472 196,023 468,329 227,717 726,377

134,469 116 583 3,558 6,030 15,328 9,918 9,286 29,014 12,301 48,335

1,021,900 1 4 495 2,409 16,839 33,497 43,093 217,588 147,555 560,419

1,119,676 414 3,886 31,426 79,401 175,922 129,634 98,154 233,447 91,485 275,907

693,396 331 2,837 18,925 35,959 62,873 51,696 52,244 142,233 80,330 245,968

685,787 130 1,214 7,420 15,657 32,398 30,656 29,846 95,245 56,434 416,787

24,063.228 7,987 77,834 591,289 1,244,906 2,501,874 1,967,457 1.754.316 4,508,250 2,276,905 9,132,410

5,874,615 3,441 28,026 177,170 331,898 625,611 492,430 435,532 1,182,862 570,099 2,027,546

903,120 273 2,269 16,715 38,404 79,859 68,719 63,211 190,823 92,889 349,958

9,787,787 1,744 26,598 243,852 536,645 1,100,962 846,009 751,129 1,725,148 780,149 3,775,551

1,205,749 0 11 285 1,082 6,119 10,261 23,810 167,661 188,645 807,875

432,987 21 83 780 1,587 5,103 5,902 10,657 35,361 53,256 320,237

100,742 0 18 135 471 3,199 4,367 5,288 16,953 15,361 54,950

1,072,221 411 2,869 22,333 51,795 111,129 92,467 83,413 219,259 104,778 383,767

1,330,723 433 3,062 24,126 55,516 122,293 108,702 105,266 290,701 143,301 477,323

258,502 22 193 1,793 3,721 11,164 16,235 21,853 71,442 38,523 93,556

772,462 204 2,168 17,914 40,613 84,247 69,710 66,797 190,912 88,009 211,888

520,720 270 2,756 17,540 43,483 79,218 56,667 43,721 93,364 39,696 144,005

3,392,825 1,623 13,036 94,565 198,928 406,427 320,925 270,758 685,907 344,023 1,056,633

6.731,289 2,216 23,546 167,971 350,133 697,397 555,134 469,069 1,343,029 689,751 2,433,043

2,164,133 460 4,831 38,346 88,736 190,737 169,648 138.248 441.734 237,715 853,678

Income item

O perating income— to ta l.................................................

Interest and fees on loans .......................................................

Income on Federal funds sold and securities purchased under agreements to re s e ll ................................

Interest on U.S. Treasury securities..................................

Interest and dividends on securities of other U.S.

Government agencies and corporations........................

Interest on obligations of States and political subdivisions.......................................................................................

Interest and dividends on other securities.....................

T ru st d e pa rt m en t i n c o m e .........................................................

Service charges on deposit account s..................................

Other service charges, collection and exchange

charges, commissions, and f e e s .......................................

Other operating in c o m e .............................................................

O perating expense— to ta l...............................................

Salaries and wages of officers and employees ..............

Pensions and other employee benefits .............................

Intere st on dep os its ....................................................................

Expense of Federal funds purchased and securities

sold under agreements to repurchase ..........................

Interest on other borrowed m o n e y .....................................

Interest on capital notes and debentures ........................

Occupancy expense of bank premises, net.....................

Gross occupancy e x p e n s e ....................................................

Less rental in c o m e ..................................................................

Furniture and equipment, depreciation, rental costs,

servicing, etc...............................................................................

Provision for loan losses...........................................................

Other operating expenses........................................................

Income before income taxes and securities gains 

or losses...........................................................................

Applicable income taxes................................................. 2.164,133

INCOME OF INSURED BANKS 281

Digitized for FRASER 

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Federal Reserve Bank of St. Louis
Table 116. INCOME OF INSURED COMMERCIAL BANKS OPERATING THROUGHOUT 1969 IN THE UNITED STATES (STATES

AND OTHER AREAS)—CONTINUED 

BANKS GROUPED BY AMOUNT OF DEPOSITS

(Amounts in thousands of dollars)

Banks with deposits of—

Income item All 

banks 1

Less 

than 

$1 million

$1 million 

to

$2 million

$2 million 

to

$5 million

$5 million 

to

$10 million

$10 million 

to

$25 million

$25 million 

to

$50 million

$50 million 

to

$100 million

$100 million 

to

$500 million

$500 million 

to

$1 billion

$1 billion 

or 

more

Income before securities gains or losses.................. 4.567.156 1.756 18.715 129.625 261.397 506,660 385.486 330,821 901,295 452,036 1,579,365

Securities gains or losses, n e t...................................... -237.713 -2 1 -5 4 3 -4 ,7 7 5 -10.147 -14.750 -12.885 -11,501 -37,630 -15,711 -129,750

Gross................................................................................... -512,248 -2 5 -6 4 2 -6,1 75 -15,078 -26,759 -27,328 -24,878 -85,142 -35,152 -291,069

Taxes.................................................................................. -274,535 - 4 -9 9 -1 ,4 0 0 -4 ,9 3 1 -12,009 -14,443 -13,377 -47,512 -19,441 -161,319

Net income before extraordinary ite m s .................... 4.329.443 1.735 18.172 124.850 251.250 491,910 372.601 319,320 863,665 436,325 1.449.615

E xtraordinary charges or credits, n e t........................ 6.960 3 31 36 80 509 2,826 653 4,101 -687 -5 9 2

Gross................................................................................... 4,061 5 25 86 199 624 2,995 -2 6 0 3,625 -2,0 71 -1 ,1 6 7

Taxes.................................................................................. -2 ,8 9 9 2 - 6 50 119 115 169 -9 1 3 -4 7 6 -1 ,3 8 4 -5 7 5

Less m inority interest in consolidated subsidiaries 235 0 9 9 27 53 - 7 5 156 -1 7 0

Net incom e.......................................................................... 4.336.168 1.738 18,194 124.877 251,303 492,366 375,434 319,968 867,610 435,655 1.449.023

Total provision for income taxes................................. 1.505.112 328 3.872 32,975 74,560 160.001 135.406 105.347 336,795 175,303 480,525

Federal income taxes....................................................... 1,287,293 300 3,513 30,112 68,923 147,692 124,581 96,775 305,977 155,602 353,818

State and local income taxes......................................... 217,819 28 359 2,863 5,637 12,309 10,825 8,572 30,818 19,701 126,707

Dividends on capital— to ta l............................................ 1.769.289 401 4.920 31.215 62,072 129.556 112.460 103.649 349,889 198,251 776.876

Cash dividends declared on common stock................ 1,762,254 396 4,920 31,200 62,013 129,287 112,282 103,526 349,292 197,400 771,938

Cash dividends declared on preferred stock............... 7,035 5 0 15 59 269 178 123 597 851 4,938

Memoranda

Recoveries credited to reserves (not included above):

On loans............................................................................. 209,124 40 638 6,602 16,632 31,042 20,687 17,889 35,570 15,491 64,533

On securities..................................................................... 1,986 0 10 60 196 199 355 210 678 278 0

Losses charged to reserves (not included above):

On loans............................................................................. 697,855 129 2,092 20,349 50,644 96,242 68,820 59,347 136,218 61,036 202,978

On securities..................................................................... 12,448 1 42 141 494 1,339 1,563 197 1,214 5,466 1,991

Number of employees (end of period)............................ 902,762 743 5,138 29,090 54,969 105,119 83,313 72,053 190,812 82,705 278,820

Number of banks (end of period).................................... 13,357 201 1,009 3,457 3,430 3,178 1,095 476 403 59 49

1 This group of banks is the same as the group shown in table 115 under the heading “ Operating throughout the year.”

282 FEDERAL DEPOSIT INSURANCE CORPORATION

Digitized for FRASER 

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Federal Reserve Bank of St. Louis
Table 117. RATIOS OF INCOME OF INSURED COMMERCIAL BANKS OPERATING THROUGHOUT 1969 IN THE UNITED STATES (STATES

AND OTHER AREAS)1

BANKS GROUPED ACCORDING TO AMOUNT OF DEPOSITS

Banks with deposits of—

Income item Less 

than 

$1 million

$1 million 

to

$2 million

$2 million 

to

$5 million

$5 million 

to

$10 million

$10 million 

to

$25 million

$25 million 

to

$50 million

$50 million 

to

$100 million

$100 million 

to

$500 million

$500 million 

to

$1 billion

$1 billion 

or 

more

Am ounts per $100 of operating income

O perating income— to ta l......................................................................... 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00

Income on loans2..................................................................................... 54.07 57.36 60.52 62.97 64.62 66.59 67.04 69.23 71.50 74.29

Interest on U.S. Treasury securities3 ................................................ 25.89 25.07 21.03 17.16 14.27 11.79 10.80 9.07 6.95 5.63

Interest on State and local government obligations3........................ 1.17 2.05 4.23 6.51 7.87 8.22 8.82 8.00 7.68 6.28

Interest and dividends on other securities3....................................... 10.29 7.69 6.54 5.00 4.23 3.66 3.30 1.93 1.21 .83

Trust department income....................................................................... .01 .00 .07 .15 .53 1.33 1.94 3.72 4.97 4.85

Service charges on deposit accounts.................................................... 4.06 3.83 4.14 4.98 5.50 5.14 4.41 3.99 3.08 2.39

Other charges, commissions, fees, etc.................................................. 3.24 2.80 2.49 2.25 1.97 2.05 2.35 2.43 2.71 2.13

Other operating income3........................................................................ 1.27 1.20 .98 .98 1.01 1.22 1.34 1.63 1.90 3.60

O perating expense— to ta l ..................................................................... 78.28 76.77 77.88 78.05 78.20 77.99 78.90 77.05 76.75 78.96

Salaries and wages .......... ...................................................... 33.72 27.64 23.33 20.81 19.56 19.52 19.59 20.22 19.22 17.53

Pensions and other benefits. .................................................. 2.67 2.24 2.20 2.41 2.50 2.72 2.84 3.26 3.13 3.03

Interest on time and savings deposits ............................................ 17.09 26.23 32.12 33.64 34.41 33.54 33.78 29.48 26.30 32.64

Interest on borrowed money ........................................................ .21 .11 .16 .20 .45 .81 1.79 3.76 8.67 10.23

Occupancy expense of bank premises, n e t......................................... 4.03 2.83 2.94 3.25 3.47 3.67 3.75 3.75 3.53 3.32

Furniture and equipment, etc................................................................. 2.00 2.14 2.36 2.55 2.63 2.76 3.00 3.26 2.97 1.83

Provision for loan losses......................................................................... 2.65 2.72 2.31 2.72 2.48 2.25 1.97 1.60 1.34 1.24

Other operating expenses....................................................................... 15.91 12.86 12.46 12.47 12.70 12.72 12.18 11.72 11.59 9.14

Income before income taxes and securities gains or losses.......... 21.72 23.23 22.12 21.95 21.80 22.01 21.10 22.95 23.25 21.04

Am ounts per $100 of to ta l assets

Operating income— to ta l............................................................................. 5.62 5.69 5.72 5.77 5.85 5.94 5.91 5.97 5.82 5.73

Income before income taxes and securities gains or losses................ 1.22 1.32 1.26 1.27 1.27 1.31 1.25 1.37 1.35 1.20

Net income.................................................................................................... .96 1.02 .94 .91 .90 .88 .85 .88 .85 .72

Memoranda

Recoveries credited to reserves (not included above):

On loans..................................................................................................... .02 .04 .05 .06 .06 .05 .05 .04 .03 .03

On securities............................................................................................. (5) (5) (6) (5) (6) (6) (6)

.14

(6)

.12

Losses charged to reserves (not included above):

On loans ..................................................... ................................... .07 .12 .15

*

.18 .18 .16 .16 .10

On securities............................................................................................. 00 (5) (5) (5) (5) (5) 5) ( 5) .01 (5)

INCOME OF INSURED BANKS 283

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Federal Reserve Bank of St. Louis
Table 117. RATIOS OF INCOME OF INSURED COMMERCIAL BANKS OPERATING THROUGHOUT 1969 IN THE UNITED STATES (STATES

AND OTHER AREAS)’ -CONTINUED

BANKS GROUPED ACCORDING TO AMOUNT OF DEPOSITS

Banks with deposits of—

Income item Less $1 million $2 million $5 million $10 million $25 million $50 million $100 million $500 million $1 billion

than to to to to to to to to or

$1 million $2 million $5 million $10 million $25 million $50 million $100 million $500 million $1 billion more

Amounts per $100 of total capital accounts

Net income ............................................................................................. 6.34 9.51 10.30 11.24 11.85 11.95 11.50 11.75 11.20 10.02

Cash dividends declared on common stock............................................. 1.44 2.57 2.57 2.77 3.11 3.57 3.72 4.73 5.08 5.34

Net additions to capital from income........................................................ 4.88 6.94 7.73 8.46 8.73 8.37 7.78 7.01 6.10 4.65

Memoranda

Recoveries credited to reserves (not included above) :

On loans..................................................................................................... .15 .33 .54 .74 .75 .66 .64 .48 .40 .45

On securities ......................................... .01 (5) .01 ( 5) .01 .01 .01 .01

Losses charged to reserves (not included above):

On loans ........................................................................................... .47 1.09 1.68 2.27 2.32 2.19 2.13 1.84 1.57 1.40

( 6) .02 .01 .02 .03 .05 .01 .02 .14 .01

Special ratio s4

Income on loans per $100 of loans2......................................................... 7.24 6.99 6.94 6.99 7.11 7.17 7.22 7.37 7.32 7.38

Income on U.S. Treasury securities per $100 of U.S. Treasury

5.27 5.25 5.37 5.48 5.39 5.41 5.31 5.43 5.31 5.19

Income on obligations of States and political subdivisions per $100

of obligations of States and political subdivisions3........................... 3.29 3.38 3.29 3.37 3.50 3.63 3.76 3.84 4.01 4.18

Income on other securities per $100 of other securities3..................... 6.15 5.23 5.59 5.59 5.96 6.27 6.36 6.59 6.08 5.88

Service charges per $100 of demand deposits........................................ .39 .43 .54 .68 .79 .73 .62 .52 .36 .29

Interest paid per $100 of time and savings deposits............................. 3.74 3.96 4.05 4.09 4.16 4.26 4.39 4.46 4.83 6.56

Number of banks, December 31................................................................ 201 1,009 3,457 3,430 3,178 1,095 476 403 59 49

1 This group of banks is the same as the group shown in table 115 under heading “ Operating throughout the year.”

2 Includes Federal funds.

3 Income from securities held in trading accounts is included in “ Other operating income.”

4 Ratios are based on average assets and liabilities reported at beginning, middle, and end of year.

‘ Less than 0.005.

284 FEDERAL DEPOSIT INSURANCE CORPORATION

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Federal Reserve Bank of St. Louis
Table 118. INCOME OF INSURED MUTUAL SAVINGS BANKS IN THE UNITED STATES (STATES AND OTHER AREAS), 1961-1969

(Amounts in thousands of dollars)

Income item 1961 1962 1963 1964 1965 1966 1967 1968 1969

C urrent operating income—t o ta l................................................................................ 1,595,183 1,755,582 1,946,776 2,164,115 2,391,753 2,606,012 2,884,789 3,238,735 3,581,559

Interest on U.S. Government obligations.................................................................... 151,931 156,410 153,659 153,368 147,751 142,509 130,873 134,857 130,111

Interest and dividends on other securities................................................................. 205,751 206,367 203,720 207,164 211,278 226,023 301,218 417,984 503,724

Interest and discount on real estate mortgage loans—net...................................... 1,194,282 1,342,896 1,534,446 1,738,621 1,950,930 2,141,099 2,326,459 2,538,502 2,768,370 Interest and discount on real estate mortgage loans— gross.......................................... 1,231,774 1,383,735 1,580,276 1,790,318 2,009,214 2,203,133 2,391,848 2,605,960 2,836,248 Less: Mortgage servicing fees................................................................................................ 36,045 39,283 44,174 49,756 56,165 59,998 63,405 65,426 67,338 Premium amortization................................................................................................ 1,447 1,556 1,656 1,941 2,119 2,036 1,984 2,032 541

Interest and discount on other loans and discounts— net........................................ 18,767 22,733 27,576 33,538 41,773 53,172 67,925 83,807 121,172

Income on real estate other than bank building— net.............................................. -3 8 -5 2 -1 0 8 -1 2 2 -9 7 -2 5 5 -2 0 9 -415 -126 Income on real estate other than bank building— gross.................................................. 379 302 296 421 541 513 767 1,664 2,030 Less: Operating expense......................................................................................................... 417 354 404 543 638 768 976 2,079 1,904

Income on other assets.................................................................................................. 9,081 9,777 9,984 13,121 18,713 18,095 25,248 23,036 22,114

Income from service operations.................................................................................... 15,409 17,451 17,499 18,425 21,405 25,369 33,275 40,964 35,942

C urrent operating expense—to ta l............................................................................... 241,685 252,963 274,544 290,471 311,755 334,451 353,947 389,780 442,151

Salaries—officers............................................................................................................. 38,158 40,466 42,792 45,391 48,514 52,085 55,510 60,161 66,937

Salaries and wages—other employees........................................................................ 75,303 79,165 84,514 89,514 93,680 98,421 105,612 115,146 126,676

Pension, hospitalization and group insurance payments, and other employee 

benefits...................................................................................................................... 24,134 25,419 27,202 28,138 30,080 33,593 34,243 37,149 41,860

Fees paid to trustees and committee members......................................................... 3,994 4,158 4,404 4,604 4,720 4,855 4,945 5,111 5,484

Occupancy, maintenance, etc., of bank premises (including taxes and recurring 

depreciation)— net................................................................................................... 27,369 29,269 32,160 34,683 37,219 38,855 42,412 47,184 52,491 Occupancy, maintenance, etc., o f bank premises (including taxes and recurring depreciation)— gross............................................................................................................ 37,298 39,297 42,583 45,871 49,093 51,387 55,631 61,405 67,376 Less: Income from bank building....................................................................................... 9,929 10,028 10,423 11,188 11,874 12,532 13,219 14,221 14,885

Deposit insurance assessments..................................................................................... 12,824 12,172 12,709 14,035 15,887 16,810 17,712 19,571 21,145

Furniture and fixtures (including recurring depreciation)........................................ 5,438 5,997 7,714 9,182 10,262 11,777 13,799 16,414 19,726

All other current operating expenses.......................................................................... 54,465 56,317 63,049 64,924 71,393 78,055 79,714 89,044 107,831

Net curre nt operating in com e...................................................................................... 1,353,498 1,502,619 1,672,232 1,873,644 2,079,998 2,271,561 2,530,842 2,848,955 3,139,408

Franchise and income taxes—to ta l............................................................................ 16,011 17,966 22,587 26,022 29,487 37,480 37,708 47,710 61,874

State franchise and income taxes................................................................................. 15,277 17,502 19,168 21,657 22,048 31,426 33,737 39,281 47,571

Federal income taxes...................................................................................................... 734 464 3,419 4,365 7,439 6,054 3,971 8,429 14,303

Net curre nt operating income a fte r taxes................................................................ 1,337,487 1,484,653 1,649,645 1,847,622 2,050,511 2,234,081 2,493,134 2,801,245 3,077,535

Dividends and in terest on deposits............................................................................ 1,147,767 1,334,005 1,481,869 1,653,768 1,809,350 2,087,072 2,395,762 2,612,638 2,808,141

Net current operating income a fte r taxes and dividends.................................... 189,720 150,648 167,776 193,854 241,161 147,009 97,372 188,607 269,394

Nonrecurring income, realized profits and recoveries credited to p rofit 

and loss, and transfers from valuation adjustm ent provisions—total 113,763 105,907 113,085 105,454 75,130 177,612 93,536 135,049 104,501

Nonrecurring income....................................................................................................... 17,567 20,453 28,678 18,048 15,242 20,211 20,377 29,394 23,743

Realized profits and recoveries on:

Securities sold or matured......................................................................................... 54,263 55,751 28,752 36,472 27,375 59,173 47,292 77,817 64,809

Real estate mortgage loans........................................................................................ 629 739 2.465 1,088 1,266 773 705 1,351 865

Other real estate.......................................................................................................... 337 462 807 571 719 1,548 2,059 2,286 2,555

All other assets............................................................................................................. 459 957 871 1,096 1,532 3,429 1,114 2,066 4,238

Transfers from valuation adjustment provisions1 on:

Securities....................................................................................................................... 10,873 5,460 26,995 22,029 11,817 13,635 7,774 11,884 4,463

Real estate mortgage loans........................................................................................ 29,068 21,465 24,342 25,786 16,365 78,458 13,435 9,583 3,167

Other real estate.......................................................................................................... 36 66 46 92 121 20 64 56 81

All other assets............................................................................................................ 531 554 129 272 693 365 716 612 573

INCOME OF INSURED BANKS 285

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Federal Reserve Bank of St. Louis
Table 118. INCOME OF INSURED MUTUAL SAVINGS BANKS IN THE UNITED STATES (STATES AND OTHER AREAS), 1961-1969

(Amounts in thousands of dollars)—CONTINUED

Income item 1961 1962 1963 1964 1965 1966 1967 1968 1969

Nonrecurring expenses, realized losses charged to profit and loss, and

transfers to valuation adjustment provisions—to ta l....................................

Nonrecurring expenses...................................................................................................

Realized losses on:

Securities sold...............................................................................................................

Real estate mortgage loans.........................................................................................

Other real estate...........................................................................................................

All other assets.................... ........................................................................................

Transfers to valuation adjustment provisions1 on:

Securities.......................................................................................................................

Real estate mortgage loans.........................................................................................

Other real estate...........................................................................................................

All other assets.............................................................................................................

Net additions to total surplus accounts from operations....................................

116,143

17,692

40,851

1,252

375

404

19,337

35,377

111

744

109,192

18,941

31,379

1,083

662

424

30,925

25,252

76

450

101,611

17,331

47,629

1,681

656

655

11,548

21,534

74

503

88,234

12,991

39,884

2,023

712

936

8,692

22,266

57

673

93,036

15,306

48,124

3,037

886

927

6,524

17,394

122

716

147,688

10,499

100,585

7,015

1,644

2,646

13,015

11,590

97

597

94,744

12,458

63,624

4,891

1,850

1,932

5,229

3,796

127

837

100,690

12,693

64,136

4,488

1,609

3,219

7,962

5,558

189

836

160,669

13,434

98,959

24,246

2,186

2,608

15,224

3,266

39

704

187,340 147,363 179,250 211,074 223,255 176,933 96,164 222,966 213,225

Memoranda

Recoveries credited to valuation adjustment provisions1 (not included in

recoveries above) on:

Securities........................................................................................................................... 278

53

1,658

48

3,389

201

756

64

341

85

1,277

212

2,726

231

1

89

2,172

4,040

204

1,016

391

183

2

116

2,835

1,072

186

353

1,946

154

199

141

5,515

1,052

134

562

Real estate mortgage loans..................................................

Other real estate .............................................................................................................

All other assets.................................................................................................................

Realized losses charged to valuation adjustment provisions1 (not included

in realized losses above) on:

Securities...........................................................................................................................

6

7,721

720

5

218

35

5,830

501

6

448

14

12,973

5,136

190

178

13

6,058

765

24

6,564

841

118

308

46

6,811

1,220

257

341

Real estate mortgage loans.............................................................................................

Other real estate...............................................................................................................

All other assets................................................................................................................. 258

Average assets and liabilities2 

Assets— to ta l.......................................................................................................................

Cash and due from banks..............................................................................................

United States Government obligations.........................................................................

Other securities................................................................................................................

Real estate mortgage loans............................................................................................

Other loans and discounts...................................................

Other real estate............................................................

All other assets.............................................................

Liabilities and surplus accounts—to ta l.....................................

Total deposits................................................................................................................... Savings and time deposits.................................................................................................... Demand deposits...................................................................................................................

Other liabilities.................................................................................................................

Total surplus accounts....................................................................................................

35.916.590

757,912

4,791,909

5,228,022

24,255,437

353,474

18,955

510,881

35.916.590

32,320,488

32,113,129

207,359

506,744

3,089,358

38.152.221

794,362

4,748,691

5,151,555

26,435,337

441,994

19,640

560,642

38.152.221

34,350,820

34,070,511

280,309

537,630

3,263,771

41.180.616

786,298

4,563,328

5,115,637

29,538,513

543,458

21,114

612,268

41.180.616

37,175,285

36,870,906

304,379

588,622

3,416,709

44.609.410

768,719

4,351,966

5,057,794

33,121,502

588,196

28,389

692,844

44.609.410

40,334,274

39,997,217

337,057

660,037

3,615,099

48.466.656

891,727

4,030,731

5,069,343

36,991,670

672,117

27,228

783,840

48.466.656

43,985,749

43,609,062

376,687

653,614

3,827,293

51.399.898

838,855

3,594,830

5,153,130

40,095,486

842,896

29,263

845,438

51.399.898

46,590,719

46,172,242

418,477

764,445

4,044,734

55.173.023

953,843

3,156,304

6,312,183

42,794,592

1,003,436

27,987

924,678

55.173.023

50,247,915

49,805,468

442,447

730,825

4,194,283

59.674.026

825,767

3,049,815

8,135,834

45,445,434

1,175,629

36,156

1,005,391

59.674.026

54,534,572

54,053,723

480,849

793,930

4,345,524

63.314.677

715,778

2,702,791

9,334,079

47,971,370

1,462,572

38,345

1,089,742

63.314.677

57,834,645

57,304,999

529,646

888,123

4,591,909

Number of active officers, December 31.............................................................................

Number of other employees, December 31.......................................................................

2,977

17,290

3,085

17,617

3,170

18,459

3,281

18,958

3,423

19,451

3,602

19,609

3,708

20,367

3,899

21,164

4,178

21,927

Number of banks, December 31........................................................................................... 330 331 330 327 329 332 333 334 331

1 Includes “Valuation reserves” and "Other asset valuation provisions (direct write-downs).”

2 Averages of amounts for four consecutive official call dates beginning with the end of the previous year and ending with the fall call of the current year.

286 FEDERAL DEPOSIT INSURANCE CORPORATION

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Federal Reserve Bank of St. Louis
Table 119. RATIOS OF INCOME OF INSURED MUTUAL SAVINGS BANKS 

1961-1969

IN THE UNITED STATES (STATES AND OTHER AREAS),

Income item 1961 1962 1963 1964 1965 1966 1967 1968 1969

$100.00 $100.00 $100.00 $100.00 $100.00 $100.00 $100.00 $100.00 $100.00

9.52 8.91 7.89 7.09 6.18 5.47 4.54 4.16 3.63

12.90 11.76 10.46 9.57 9.83 8.67 10.44 12.90 14.07

74.87 76.49 78.82 80.34 81.57 82.16 80.65 78.38 77.30

1.18 1.29 1.42 1.55 1.75 2.04 2.35 2.59 3.38

.57 .56 .51 .60 .78 .69 .87 .71 .62

.96 .99 .90 .85 .89 .97 1.15 1.26 1.00

15.15 14.41 14.10 13.42 13.03 12.83 12.27 12.04 12.35

2.39 2.30 2.20 2.10 2.03 2.00 1.93 1.86 1.87

4.72 4.51 4.34 4.14 3.92 3.78 3.66 3.55 3.54

1.51 1.45 1.40 1.30 1.26 1.29 1.19 1.15 1.17

.25 .24 .23 .21 .20 .19 .17 .16 .15

1.72 1.67 1.65 1.60 1.55 1.49 1.47 1.46 1.47

.80 .69 .65 .65 .66 .64 .61 .60 .59

.34 .34 .39 .42 .43 .45 .48 .51 .55

3.42 3.21 3.24 3.00 2.98 2.99 2.76 2.75 3.01

84.85 85.59 85.90 85.58 86.97 87.17 87.73 87.96 87.65

1.00 1.02 1.16 1.20 1.24 1.44 1.31 1.47 1.73

.96 1.00 .98 1.00 .93 1.21 1.17 1.21 1.33

.04 .02 .18 .20 .31 .23 .14 .26 .40

83.85 84.57 84.74 85.38 85.73 85.73 86.42 86.49 85.92

71.95 75.99 76.12 76.42 75.65 80.09 83.04 80.67 78.40

11.90 8.58 8.62 8.96 10.08 5.64 3.38 5.82 7.52

4.44 4.60 4.73 4.85 4.93 5.07 5.23 5.42 5.66

.67 .66 .67 .65 .64 .65 .64 .65 .70

3.77 3.94 4.06 4.20 4.29 4.42 4.39 4.77 4.96

.05 .05 .05 .06 .06 .07 .07 .08 .10

3.72 3.89 4.01 4.14 4.23 4.35 4.52 4.69 4.86

3.19 3.50 3.60 3.71 3.73 4.06 4.34 4.37 4.44

.53 .39 .41 .43 .50 .29 .18 .32 .42

.31 .28 .27 .24 .15 .34 .16 .22 .17

.32 .28 .24 .20 .19 .29 .17 .17 .25

.52 .39 .44 .47 .46 .34 .17 .37 .34

3.17 3.29 3.37 3.52 3.67 3.96 4.15 4.42 4.81

3.94 4.01 3.98 4.10 4.17 4.39 4.77 5.14 5.40

4.92 5.08 5.19 5.25 5.27 5.34 5.44 5.59 5.77

5.31 5.14 5.07 5.70 6.22 6.31 6.77 7.13 8.28

3.57 3.92 4.02 4.13 4.15 4.52 4.81 4.83 4.90

6.06 4.52 5.25 5.84 5.83 4.37 2.29 5.13 4.64

330 331 330 327 329 332 333 334 331

Am ounts per $100 of current operating income

C urrent operating income— t o ta l..................................................................................................................

Interest on U.S. Government obligations......................................................................................................

Interest and dividends on other securities...................................................................................................

Interest and discount on real estate mortgage loans— net........................................................................

Interest and discount on other loans and discounts—net.........................................................................

Income on other assets......................................................................................................................................

Income from service operations.....................................................................................................................

C urrent operating expenses— to ta l...............................................................................................................

Salaries—officers....................... .....................................................................................................................

Salaries and wages—other employees..........................................................................................................

Pension, hospitalization and group insurance payments, and other employee benefits........................

Fees paid to trustees and committee members...........................................................................................

Occupancy, maintenance, etc., of bank premises (includingtaxesand recurring depreciation)— net...

Deposit insurance assessments........................................................................................................................

Furniture and fixtures (including recurring depreciation).........................................................................

All other current operating expenses............................................................................................................

Net curre nt operating incom e........................................................................................................................

Franchise and income taxes— t o ta l..............................................................................................................

State franchise and income taxes..................................................................................................................

Federal income taxes........................................................................................................................................

Net cu rre n t operating income a fte r ta xe s...................................................................................................

Dividends and in te re st on deposits................................................................................................................

Net curre nt operating income a fte r taxes and dividends.....................................................................

Amounts per $100 of total assets2

Current operating income—to ta l........................................................................................................................

Current operating expenses—total.....................................................................................................................

Net current operating income...............................................................................................................................

Franchise and income taxes—to ta l....................................................................................................................

Net current operating income after taxes.........................................................................................................

Dividends and interest on deposits.....................................................................................................................

Net current operating income after taxes and dividends...............................................................................

Nonrecurring income, realized profits and recoveries credited to profit and loss, and transfers from

valuation adjustment provisions—total1........................................................................... ........................

Nonrecurring expenses, realized losses charged to profit and loss, and transfers to valuation adjustment provisions—total1....................................................................................................................................

Net additions to total surplus accounts from operations.................................................................................

Special ra tio s2

Interest on U.S. Government obligations per $100 of U.S. Government obligations..................................

Interest and dividends on other securities per $100 of other securities.......................................................

Interest and discount on real estate mortgage loans per $100 of real estate mortgage loans...................

Interest and discount on other loans and discounts per $100 of other loans and discounts......................

Dividends and interest on deposits per $100 of savings and time deposits.................................................

Net additions to total surplus accounts from operations per $100 of total surplus accounts.....................

Number of banks, December 31...........................................................................................................................

Note: For footnotes to this table, see table 118, p. 286.

INCOME OF INSURED BANKS 287

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Federal Reserve Bank of St. Louis
Table

Table

Table

Table

BANKS CLOSED BECAUSE OF FINANCIAL DIFFICULTIES;

DEPOSIT INSURANCE DISBURSEMENTS

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

1934-1969

121. Insured banks requiring disbursements by the Federal Deposit Insurance 

Corporation during 1969

122. Depositors, deposits, and disbursements in insured banks requiring disbursements by the Federal Deposit Insurance Corporation, 1934-1969

Banks grouped by class of bank, year of deposit payoff or deposit assumption, amount of deposits, and State

123. Recoveries and losses by the Federal Deposit Insurance Corporation on principal 

disbursements for protection of depositors, 1934-1969

288 FEDERAL DEPOSIT INSURANCE CORPORATION

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Federal Reserve Bank of St. Louis
Deposit insurance disbursements

Disbursements by the Federal Deposit Insurance Corporation to 

protect depositors are made when the insured deposits of banks in 

financial difficulties are paid off, or when the deposits of a failing 

bank are assumed by another insured bank with the financial aid of 

the Corporation. In deposit payoff cases, the disbursement is the 

amount paid by the Corporation on insured deposits. In deposit 

assumption cases, the principal disbursement is the amount loaned 

to failing banks, or the price paid for assets purchased from them; 

additional disbursements are made in those cases as advances for 

protection of assets in process of liquidation and for liquidation 

expenses.

Noninsured bank failures

No noninsured bank failed in 1969.

For detailed data regarding noninsured banks which suspended 

in the years 1934-1962, see the Annual Report for 1963, pp. 

27-41. For 1963-1968, see Table 120 of this report, and previous 

reports for respective years.

Sources of data

Insured banks: books of bank at date of closing; and books of 

FDIC, December 31, 1969.

BANKS CLOSED AND DEPOSIT INSURANCE DISBURSEMENTS 289

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Federal Reserve Bank of St. Louis
Table 120. NUMBER AND DEPOSITS OF BANKS CLOSED BECAUSE OF FINANCIAL DIFFICULTIES, 1934-1969

Year

Number Deposits (in thousands of dollars)

Total

Noninsured1

Insured

Total

Noninsured1

Insured

Total

Without 

disbursements 

by FDIC2

With 

disbursements 

by FDIC3

Total

Without 

disbursements 

by FDIC2

With 

disbursements 

by FDIC3

T o ta l.............................. 618 131 487 8 479 970,673 61,973 908,700 41,147 867,553

1934................................ 61 52 9 9 37,332 35,364 1,968 1,968

1935................................ 32 6 26 1 25 13,987 583 13,404 85 13,319

1936................................ 72 3 69 69 28,100 592 27,508 27,508

1937................................ 83 7 76 2 74 34,141 528 33,613 328 33,285

1938................................ 80 7 73 73 60,444 1,038 59,406 59,406

1939................................ 72 12 60 60 160,211 2,439 157,772 157,772

1940................................ 48 5 43 43 142,787 358 142,429 142,429

1941................................ 16 2 14 14 18,805 79 18,726 18,726

1942................................ 23 3 20 20 19,541 355 19,186 19,186

1943................................ 5 5 5 12,525 12,525 12,525

1944................................ 2 2 2 1,915 1,915 1,915

1945................................ 1 1 1 5,695 5,695 5,695

1946................................ 2 1 1 1 494 147 347 347

1947................................ 6 1 5 5 7,207 167 7,040 7,040

1948................................ 3 3 3 10,674 10,674 10,674

1949................................ 9 4 5 1 4 9,217 2,552 6,665 1,190 5,475

1950................................ 5 1 4 4 5,555 42 5,513 5,513

1951................................ 5 3 2 2 6,464 3,056 3,408 3,408

1952................................ 4 1 3 3 3,313 143 3,170 3,170

1953................................ 5 1 4 2 2 45,101 390 44,711 26,449 18,262

1954................................ 4 2 2 2 2,948 1,950 998 998

1955................................ 5 5 5 11,953 11,953 11,953

1956................................ 3 1 2 2 11,689 360 11,329 11,329

1957................................ 3 1 2 1 1 12,502 1,255 11,247 10,084 1,163

1958................................ 9 5 4 4 10,413 2,173 8,240 8,240

1959................................ 3 3 3 2,593 2,593 2,593

1960................................ 2 1 1 1 7,965 1,035 6,930 6,930

1961................................ 9 4 5 5 10,611 1,675 8,936 8,936

1962................................ 3 2 1 1 4,231 1,220 3,011 3,011

1963................................ 2 2 2 23,444 23,444 23,444

1964................................ 8 1 7 7 23,867 429 23,438 23,438

1965................................ 9 4 5 5 45,256 1,395 43,861 43,861

1966................................ 8 1 7 7 106,171 2,648 103,523 103,523

1967................................ 4 4 4 10,878 10,878 10,878

1968................................ 3 3 3 22,524 22,524 22,524

1969................................ 9 9 9 40,120 40,120 40,120

1 For information regarding each of these banks, see table 22 in the Annual Report of the Federal Deposit Insurance Corporation for 1963, page 221 of the report for 1964, page 179 of the report for 

1965, and page 183 of the 1966 report. One noninsured bank placed in receivership in 1934, with no deposits at time of closing, is omitted (see table 22, note 9). Deposits are unavailable for 7 banks.

2 For information regarding these cases, see table 23 of the Annual Report for 1963.

3 For information regarding each bank, see the Annual Report for 1958, pp. 48-83 and pp. 98-127, and tables regarding deposit insurance disbursements in subsequent annual reports. Deposits are adjusted as of December 31, 1969, and exclude deposits for three cases requiring disbursements by the Corporation; 1 bank in voluntary liquidation in 1937 (payoff case no. 90); 1 noninsured bank in 1938 

with insured deposits at date of suspension, its insurance status having been terminated prior to suspension (payoff case no. 162); and 1 foreign-owned bank closed in 1941 by order of the Federal Government (payoff case no. 234).

290 FEDERAL DEPOSIT INSURANCE CORPORATION

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Federal Reserve Bank of St. Louis
Table 121. INSURED BANKS REQUIRING DISBURSEMENTS BY THE FEDERAL DEPOSIT INSURANCE CORPORATION DURING 1969

Case

number Name and location

Class of 

bank

Number of 

depositors or 

accounts1

Date of closing or 

deposit assumption

First payment to 

depositors or 

disbursement by 

FDIC

FDIC

disbursement2

Receiver or liquidating agent 

or assuming bank

Deposit

payoff

284 Citizens State Bank, 

Alvarado, Texas

NM 2,329 April 12, 1969 April 18, 1969 $1,910,9103 Federal Deposit Insurance Corporation

285 The First State Bank, 

Dodson, Texas

SM 686 May 12, 1969 May 14,1969 1,028,355 Federal Deposit Insurance Corporation

286 The State National Bank, 

Lovelady, Texas

N 2,030 May 28,1969 June 2,1969 3,182,920 Federal Deposit Insurance Corporation

287 First National Bank of Ursa, 

Ursa, Illinois

N 1,479 August 20, 1969 August 25, 1969 1,529,600 Federal Deposit Insurance Corporation

Deposit

assumption

194 The Rocky Mountain Bank, 

Lakewood, Colorado

NM 6,716 February 6, 1969 February 6, 1969 3,542,649 Lakewood Colorado National Bank, 

Lakewood, Colorado

195 The Morrice State Bank, 

Morrice, Michigan

SM 1,759 May 6, 1969 May 6, 1969 1,444,864 Owosso Savings Bank, 

Owosso, Michigan

196 The Big Lake State Bank, 

Big Lake, Texas

NM 2,642 August 22, 1969 September 2, 1969 2,400,486 Reagan State Bank, 

Big Lake, Texas

197 The First State Bank, 

Aransas Pass, Texas

NM 6,459 September 5,1969 September 8,1969 7,926,882 First State Bank, 

Aransas Pass, Texas

198 The First National Bank of Coalville, 

Coalville, Utah

N 3,254 October 10,1969 October 10, 1969 3,237,084 First National Bank of Coalville, 

Coalville, Utah

BANKS CLOSED AND DEPOSIT INSURANCE DISBURSEMENTS 291

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Federal Reserve Bank of St. Louis
Table 121. INSURED BANKS REQUIRING DISBURSEMENTS BY THE FEDERAL DEPOSIT INSURANCE CORPORATION DURING 1969

-CONTINUED

Assets1 Liabilities and capital accounts1

Case

number Cash and 

due from 

banks

U.S. Government 

obligations

Other

securities

Loans,

discounts,

and

overdrafts

Banking 

house, 

furniture & 

fixtures

Other

real

estate

Other

assets

Total

Deposits

Other

liabilities

Capital

stock

Other

capital

accounts

Deposit

payoff

284 415,096 530,000 40,000 1,234,972 27,936 3,220 305,132 2,556,357 2,319,6093 0 50,000 186,748

285 155,397 77,000 3,000 879,339 13,846 4,291 869 1,133,742 1,085,170 0 50,000 -1 ,4 2 7

286 774,699 270,972 9,500 2,886,477 119,563 30,658 43,736 4,135,606 3,801,632 98,122 75,000 160,851

287 214,280 259,830 115,936 1,434,953 24,490 1,600 2,252 2,053,340 1,798,254 130,000 75,000 50,087

Deposit

assumption

194 703,112 3,401,168 238,621 3,755,554 199,120 275,000 44,586 8,617,160 8,064,894 42,216 300,000 210,051

195 296,984 371,184 8,134 1,560,886 26,760 9,600 9,490 2,283,039 2,167,450 2,302 50,000 63,287

196 823,390 676,047 368,650 2,794,756 39,114 25,613 22,410 4,749,981 4,426,539 50,370 180,000 93,071

197 715,199 882,888 820,574 8,735,462 162,709 12,818 87,411 11,417,060 10,471,897 16,664 150,000 778,498

198 541,791 702,685 630,952 4,640,469 18,047 3,900 87,388 6,625,232 5,991,999 160,000 50,000 423,234

1 Figures as determined by FDIC agents after adjustment of books of the bank immediately following its closing.

* Includes disbursements made to December 31, 1969, plus additional disbursements estimated to be required in these cases.

* Includes $17 591 representing 15 nonbook shortage accounts which w ill be added to book figures when paid.

292 FEDERAL DEPOSIT INSURANCE CORPORATION

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Federal Reserve Bank of St. Louis
Table 122. DEPOSITORS, DEPOSITS, AND DISBURSEMENTS IN INSURED BANKS REQUIRING DISBURSEMENTS BY THE

FEDERAL DEPOSIT INSURANCE CORPORATION, 1934-1969

BANKS GROUPED BY CLASS OF BANK, YEAR OF DEPOSIT PAYOFF OR DEPOSIT ASSUM PTION, AM OUNT OF DEPOSITS, AND STATE

Classification

Number of banks Number of depositors1

Deposits1 

(in thousands of dollars)

Disbursements by FDIC1 

(in thousands of dollars)

Total Payoff

cases

Assumption

cases

Total Payoff

cases

Assumption

cases Total Payoff

cases

Assumption

cases

Principal disbursements

Advances and 

expenses2

Total Payoff

cases3

Assumption

cases4

Payoff

cases5

Assumption

cases8

A ll banks.............................................................. 482 284 198 1,672,810 508,531 1,164,279 878,888 254,994 623,894 418,970 171,315 247,655 3,200 50,666

Class of bank

National............................................................. 89 32 57 347,522 87,717 259,805 207,362 86,210 121,152 101,196 43,006 58,190 1,031 7,098

State member F.R.S......................................... 27 10 17 376,257 88,892 287,365 197,673 34,388 163,286 108,179 26,498 81,681 245 19,326

Nonmember F.R.S............................................ 366 242 124 949,031 331,922 617,109 473,853 134,397 339,456 209,595 101,811 107,784 1,924 24,242

Y e ar7

1934..................................................................... 9 9 15,767 1.5,767 1,968 1,968 941 941 43

1935.................................................................... 25 24 1 44,655 32,331 12,324 13,319 9,091 4,229 8,891 6,026 2,865 108 272

1936.................................................................... 69 42 27 89,018 43,225 45,793 27,508 11,241 16,267 14,781 8,056 6,725 67 934

1937.................................................................... 75 50 25 130,387 74,148 56,239 33,349 14,960 18,389 19,161 12,045 7,116 103 905

1938.................................................................... 74 50 24 203,961 44,288 159,673 59,684 10,296 49,388 30,479 9,092 21,387 93 4,902

1939.................................................................... 60 32 28 392,718 90,169 302,549 157,772 32,738 125,034 67,770 26,196 41,574 162 17,603

1940.................................................................... 43 19 24 256,361 20,667 235,694 142,429 5,657 136,773 74,134 4,895 69,239 89 17,237

1941.................................................................... 15 8 7 73,005 38,594 34,411 29,718 14,730 14,987 23,880 12,278 11,602 50 1,479

1942.................................................................... 20 6 14 60,688 5,717 54,971 19,186 1,816 17,369 10,825 1,612 9,213 38 1,076

1943.................................................................... 5 4 1 27,371 16,917 10,454 12,525 6,637 5,888 7,172 5,500 1,672 53 72

1944.................................................................... 2 1 1 5,487 899 4,588 1,915 456 1,459 1,503 404 1,099 9 37

1945.................................................................... 1 1 12,483 12,483 5 695 5 695 1,768 1,768 96

1946.................................................................... 1 1 1,383 1,383 347 347 265 ’ 265 11

1947.................................................................... 5 5 10,637 10,637 7,040 7,040 1,724 1,724 370

1948..................................................................... 3 3 18,540 18,540 10,674 10 674 2,990 2,990 200

1949.................................................................... 4 4 5,671 5,671 5,475 5,’ 475 2,552 2,552 166

1950.................................................................... 4 4 6,366 6,366 5,513 5,513 3’,986 3’,986 524

1951.................................................................... 2 2 5,276 5,276 3 408 3*408 1*885 1 * 885 127

1952 ................................................................... 3 3 6,752 6,752 3,170 3* 170 1,369 1 369 195

1953 ................................................................. 2 2 24,469 24,469 18 262 18 * 262 5 ’ 017 5017 428

1954.................................................................... 2 2 1,811 1,811 998 ’ 998 913 ’ 913 145

1955.................................................................... 5 4 1 17,790 8,080 9,710 11,953 6,503 5,450 6,784 4,438 2,346 106 665

1956.................................................................... 2 1 1 15,197 5,465 9,732 11,329 4,702 6,628 3,458 2,795 663 87 51

1957 ................................................................. 1 1 2,338 2,338 1,163 1 163 1 031 1 031 20

1958.................................................................... 4 3 1 9,587 4,380 5,207 8,240 4,156 4,084 3,026 2,796 230 38 31

1959.................................................................... 3 3 3,073 3,073 2,593 2,593 1,835 1,835 51

1960.................................................................... 1 1 11,171 11,171 6,930 6,930 4,765 4,765 82

1961 ................................................................... 5 5 8,301 8,301 8,936 8,936 6,200 6,200 154

1963 ................................................................... 2 2 36,430 36,430 23,444 23,444 19,232 19,232 292

1964 ............................................................... 7 7 19,934 19,934 23,438 23 438 13,768 13 768 583

1965.................................................................... 5 3 2 15,817 14,363 1,454 43,861 42,889 972 11,391 10,918 473 601 120

1966.................................................................... 7 1 6 95,424 1,012 94,412 103,523 774 102,749 15,075 735 14,340 25 1,041

1967 ............................................................... 4 4 4,729 4,729 10,878 10,878 8,125 8,125 199

1968 ................................................................... 3 3 12,850 12,850 22,524 22,524 5,284 5 284 468

1969.................................................................... 9 4 5 27,363 6,533 20,830 40,120 8,998 31,122 36,992 7,634 29,358

1

147 1,509

BANKS CLOSED AND DEPOSIT INSURANCE DISBURSEMENTS 293

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Federal Reserve Bank of St. Louis
Table 122. DEPOSITORS, DEPOSITS, AND DISBURSEMENTS IN INSURED BANKS REQUIRING DISBURSEMENTS BY THE 

FEDERAL DEPOSIT INSURANCE CORPORATION, 1934-1969— CONTINUED

BANKS GROUPED BY CLASS OF BANK, YEAR OF DEPOSIT PAYOFF OR DEPOSIT ASSUMPTION, AM OUNT OF DEPOSITS, AND STATE

Classification

Number of banks Number of depositors1

Deposits1 

(in thousands of dollars)

Disbursements by FDIC1 

(in thousands of dollars)

Total Payoff

cases

Assumption

cases

Total Payoff

cases

Assumption

cases Total Payoff

cases

Assumption

cases

Principal disbursements

Advances and 

expenses2

Total Payoff

cases3

Assumption

cases4

Payoff

cases5

Assumption

cases8

Banks w ith deposits of—

Less than $100,000........................................... 107 83 24 38,347 29,695 8,652 6,418 4,947 1,471 5,000 4,309 691 88 154

$100,000 to $250,000........................................ 109 86 23 83,370 65,512 17,858 17,759 13,920 3,839 12,906 11,554 1,352 209 173

$250,000 to $500,0008...................................... 62 37 25 92,179 57,287 34,892 22,315 12,921 9,394 15,615 10,549 5,066 164 611

$500,000 to $1,000,0008 .................................. 70 34 36 159,587 73,495 86,092 53,285 25,681 27,604 34,981 19,886 15,095 396 2,325

$1,000,000 to $2,000,0008................................ 55 19 36 208,412 68,928 139,484 73,668 25,094 48,574 41,840 19,641 22,199 405 3,645

$2,000,000 to $5,000,0008............................... 45 17 28 272,698 79,279 193,419 147,150 55,112 92,038 81,732 38,454 43,278 635 6,126

$5,000,000 to $10,000,000............................... 20 4 16 237,677 32,665 205,012 130,013 27,715 102,298 52,029 17,818 34,211 442 6,230

$10,000,000 to $25,000,000............................. 8 3 5 212,687 89,189 123,498 135,727 49,429 86,297 69,712 39,444 30,268 327 6,080

$25,000,000 to $50,000,000............................. 5 1 4 284,809 12,481 272,328 199,594 40,176 159,418 95,153 9,660 85,493 532 25,039

$50,000,000 to $100,000,000........................... 1 1 83,044 83,044 92,960 92,960 10,000 10,000 279

State

Alabama............................................................. 4 2 2 9,170 2,059 7,111 6,170 3,985 2,185 3,557 2,562 995 72 91

Arkansas............................................................ 7 6 1 5,446 4,541 905 2,538 1,942 596 1,720 1,576 144 43 48

California........................................................... 4 3 1 21,059 17,890 3,169 47,298 46,220 1,078 25,607 12,906 12,701 627 454

Colorado............................................................. 4 2 2 8,810 1,382 7,428 11,052 2,262 8,790 4,448 938 3,510 40 644

Connecticut..................................................... 2 2 5,379 5,379 1,526 1,526 1,242 1,242 8

Florida................................................................ 5 2 3 14,082 1,725 12,357 17,665 2,668 14,997 6,163 2,145 4,018 57 466

Georgia............................................................... 10 8 2 9,410 8,797 613 1,959 1,870 89 1,620 1,551 69 33 33

Idaho.................................................................. 2 2 2,451 2,451 1,894 1,894 1,493 1,493 29

Illin o is................................................................ 21 9 12 81,193 43,274 37,919 52,564 26,880 25,684 29,986 22,004 7,982 350 791

Indiana............................................................... 20 15 5 30,006 12,549 17,457 13,593 3,932 9,662 6,197 3,096 3,101 39 384

Iow a.................................................................... 7 4 3 16,055 4,066 11,989 9,401 4,383 5,018 3,875 2,804 1,071 46 113

Kansas............................................................... 10 6 4 6,715 3,824 2,891 5,052 4,357 694 4,093 3,601 492 50 72

Kentucky........................................................... 23 18 5 36,139 18,490 17,649 8,888 3,953 4,934 5,455 3,329 2,126 44 201

Louisiana .......................................... 3 3 6 087 6,087 1 652 1,652 668 668 10

Maine . .. .......................... 1 1 9,710 9,710 5,450 5,450 2,346 2,346 665

Maryland........................................................... 5 2 3 22,567 6,643 15,924 4,566 828 3,738 3,109 735 2,374 9 371

Massachusetts.................................................. 2 2 9,046 9,046 3,019 3,019 1,564 1,564 1,030

Michigan............................................................ 11 4 7 117,622 2,084 115,538 109,894 1,394 108,499 18,871 1,311 17,560 43 1,093

Minnesota .................................................. 5 5 2,650 2,650 818 818 640 640 17

Mississippi ..................................................... 3 3 1,651 1,651 334 334 257 257 5

294 FEDERAL DEPOSIT INSURANCE CORPORATION

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Federal Reserve Bank of St. Louis
Missouri..............

Montana..............

Nebraska............

New Hampshire. 

New Jersey.........

New York..........

North Carolina. 

North Dakota..

Ohio..................

Oklahoma........

Oregon...............

Pennsylvania... 

South Carolina. 

South Dakota... 

Tennessee.........

Texas.............

Utah...............

Vermont........

Virginia..........

Washington...

West V irginia. 

W isconsin.. .. 

Wyoming.......

29

41,277

1,500

6,069

1,780

522,563

269,621

10,408

14,103

13,751

27,650

3,439

166,894

1,848

12,515

12,358

59,125

3,254

11,057

35,715

4,179

8,346

26,898

3,212

29,478

849

6,069

103,797

28,440

3,677

6,760

7,585

20,149

1,230

43,828

403

11,412

9,993

40,909

8,687

12,638

8,346

18,739

11,799

651

1,780

418,766

241,181

6,731

7,343

6,166

7,501

2,209

123,066

1,445

1,103

2,365

18,216

3,254

2,370

23,077

4,179

8,159

3,212

11,107

1,095

8,145

296

194,630

145,439

3,266

3,830

7,223

18,920

2,670

75,756

849

2,987

1,942

52,817

5,992

3,725

17,778

1,538

2,006

9,512

2,033

7,240

215

8,145

33,128

13,286

1,421

1,552

2,345

11,053

1,368

14,340

136

2,862

1,620

26,384

' 3,375 

7,652

2,006

5,966

3.867 

880

296

161,502

132,153

1,845

2,278

4,877

7.867

1,302

61,416

714

126

322

26,432

5,992

350

10,127

1,538

3,545

2,033

7,676

639

5,008

117

82,125

67,997

2,387

2,656

2,098

10,275

1,948

51,292

274

2,411

1,278

33,150

3,212

3,445

8,285

935

1,458

7,188

202

6,009

186

5,008

26,468

10,836

1,156

1,397

1,610

7,936

986

10,133

136

2,388

1,164

19,344

3,259

3,889

1,458

5,096

1,667

453

117

55,657

57,161

1,231

1,259

488

2,339

962

41,159

138

23

114

13,806

3,212

186

4,396

935

2,092

202

161

32

23

24 

7

178

11

75

580

21

294

305

21

20,154

10,847

179

203

44

233

81

9,52410

9

25

1,028

52

22

505

512

428

19

1 Adjusted to December 31,1969, in assumption cases, number of depositors refers to number of deposit accounts.

2 Excludes $352 thousand of nonrecoverable insurance expenses in cases which were resolved without payment of claims or a disbursement to facilitate assumption of deposits by another insured bank, 

and other expenses of field liquidation employees not chargeable to liquidation activities.

3 Includes estimated additional disbursements in active cases.

4 Excludes excess collections turned over to banks as additional purchase price at termination of liquidation.

5 These disbursements are not recoverable by the Corporation; they consist almost wholly of field payoff expenses.

6 Includes advances to protect assets and liquidation expenses of $47,992 thousand, all of which have been fully recovered by the Corporation, and $611 thousand of nonrecoverable expenses.

7 No case in 1962 required disbursements. Disbursement totals for each year relate to cases occurring during that year, including disbursements made in subsequent years.

8 Figures have been revised since publication in 1968 Annual Report.

Note: Due to rounding differences, components may not add to totals.

BANKS CLOSED AND DEPOSIT INSURANCE DISBURSEMENTS 295

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Federal Reserve Bank of St. Louis
Table 123. RECOVERIES AND LOSSES BY THE FEDERAL DEPOSIT INSURANCE CORPORATION ON PRINCIPAL 

DISBURSEMENTS FOR PROTECTION OF DEPOSITORS, 1934-1969

(Amounts in thousands of dollars)

Liquidation All cases Deposit payoff cases Deposit assumption cases

year of deposit payoff 

or deposit 

assumption

Number

of

banks

Principal 

disbursements: -

Recoveries 

to Dec. 

31,1969

Estimated

additional

recoveries

Losses1

Number

of

banks

Principal

disbursements2

Recoveries 

to Dec. 

31,1969

Estimated

additional

recoveries

Losses1

Number

of

banks

Principal

disbursements3

Recoveries 

to Dec. 

31,1969

Estimated

additional

recoveries

Losses1

Total................ 482l ~"418,958 1 345,071 22,220 51,678 284 171,314 134,571 9,137 27,609 198 247,654 210,500 13,083 24,069

Status

Active............... 45

437

9

159,475

259,494

941

111,502

233,569

734

22,220 25,752

25,926

207

24

260

66,254

105,060

941

44,559

90,012

734

9,137 12,560

15,049

207

21

177

93,221

154,434

66,943

143,557

13,083 13,192

10,877

Year4

1934 9

1935 25 8,891

14,781

19,161

30,479

67,770

74,134

23,880

10,825

7,172

6,202 5 2,683 24 6,026 4,274 1,751 1 2,865 1,928 5 932

1936 69 12,325

15,610

2,455

3,549

42 8,056 6,595 1,460 27 6,725 5,730 995

1937 75 50 12,045 9,520 2,524 25 7,116 6,090 1,025

1938 74 28,055

60,618

70,336

2,425

7,153

50 9,092 7,908 1,184

5,798

24 21,387 20,147 1,241

1939 60 32 26,196 20,399 28 41,574 40,219 1.355

1940 43 10 3,787 19 4,895 4,313 582 24 69,239 66,023 10 3,205

1941 15 23,290

10,136

7,048

1,462

1,768

591 8 12,278 12,065 213 7 11,602 11,225 378

1942 20 688 6 1,612 1,320 292 14 9,213 8,816 396

1943 5 123 4 5,500

404

5,376

363

123 1 1,672

1,099

1,672

1944 2 1,503

1,768

40 1 40 1 1,099

1945 1 1 1,768 1,768

1946 1 265 265 1 265 265

1947 5 1 724 1,644

2,349

2,183

14 67 5 1,724 1,644 14 67

1948 3 2,990

2,552 

3 986

641 3 2,990 2,349 641

1949 4 369 4 2,552

3,986

1,885

1,369

5,017

913

2,183

2,601

1,885

577

369

1950 4 2 601 1,385 4 1,385

1951 2 1*885

1,369

5,017

913

1,885

577

2

1952 3 792 3 792

1953 2 5,017

654

2 5,017

1954 2 258 2 654 258

1955 5 6,784 

3 458

6,554

3,163

1,031

2,998

1,738

230 4 4,438 4,208 230 1 2,346

663

2,346

1956 2 55 240 1

1

2,795 2,500

1,031

55 240 1 663

1957 1 1,031

3,026

1,835

4,765

6,200

19,232

13,765

11,391

15,075

8,125

5,284

1,031

2,796

1,835

1958 4 28 3 2,768

1,738

28 1 230 230

1959 3 97 3 97

1960 1 4,765

4,65?

17,143

11,161

5,842

3,759

5,431

3,794

1 4,765

6,200

4,765

1961 5 26 1,523

700

5 4,652

17,143

11,161

5,537

611

5,431

26 1,523

1963 2 1,389 700

609

2 19,232

13,765

10,918

735

8,125

1,389

1964 7 1,996 609

5,229

8,486

1,535

550

7 1,996

5,065

20

1,535

196 5 

196 6 

1967

5

7

4

321

2,829

1,158

3 

1

4

318

104

1,158

2

6

473

14,340

305

3,148

3

2,725

164

8,466

1968 3 941 3 5,284 3,794 941 550

1969.............. 9 36,992 18,277 14,864 3,850 4 7,634 155 5,479 2,000 5 29,358 18,122 9,385 1,850

1 Includes estimated losses in active cases. Not adjusted for interest or allowable return, which was collected in some cases in which the disbursement was fully recovered.

2 Includes estimated additional disbursements in active cases.

3 Excludes excess collections turned over to banks as additional purchase price at termination of liquidation.

4 No case in 1962 required disbursements.

Note: Due to rounding differences, components may not add to totals.

296 FEDERAL DEPOSIT INSURANCE CORPORATION

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Absorptions:

Of insured banks requiring disbursements by FDIC. See 

Banks in financial difficulties.

Of operating banks, 1969 .......................................................... 15-17, 291-292

Of operating banks approved by FDIC, 1969 ........................... 15-17, 31-136

Regulation of ................................................................................................. 15-16

Admission of banks to insurance. See also Applications from banks:

Applications for, 1969 ........................................................................................ 15

Number of banks admitted, by class of bank, 1969 ........................... 238-239

Advertising of interest paid on deposits.................................................................28-29

Applications from b a n ks........................................................................................ 15-16

Areas outside continental United States, banks and branches located in:

Number, December 31, 1969 ...................................................... 241, 242, 250

Assessments for deposit insurance ................................................................... 23-25

Assets and liabilities of FD IC ..................................................................................... 22

Assets, liabilities, and capital of banks. See also Deposits:

Commercial banks:

Grouped by insurance status,

June 30, 1969, and December 31, 1969 .................................. 254-261

Developments in 1969 ............................................................................ 3-5

Sources of d a ta ........................................................................................ 253

Insured commercial banks:

Amounts, December call dates, 1961, 1965-1969 .... . . 264-266 

Amounts, June 30, 1969, and December 31, 1969,

by class of b a n k .......................................................................... 254-261

Major categories, average, 1961-1969 ................................................. 277

Percentage distribution, by size of bank, 1969 ......................... 271-273

Percentages of items, by size of bank, 1969 .................................... 269

Mutual savings banks:

Grouped by insurance status, June 30, 1969, and December

31, 1969 ........................................................................................ 262-263

Developments in 1969 ................................................................................. 5

Sources of d a ta ........................................................................................ 253

Insured mutual savings banks:

Amount, December call dates, 1961, 1965-1969 .................... 267-268

Major catagories, average, 1961-1969 ........................................ 285-286

Percentages of items, by size of bank, 1969 .................................... 270

Assets purchased by FDIC from banks in financial d ifficu ltie s .................... 11-13

Assumption of deposits of insured banks with financial aid of FDIC.

See also Banks in financial d ifficu ltie s ...........................11-13, 291-292, 293-295

Attorney General of the United States, summary

reports on absorptions................................................................................... 31-136

Audit of FD IC ................................................................................................................ 26

Bad-debt reserves. See Valuation reserves.

Bank ownership, changes i n ..................................................................................... 18

Bank Protection Act of 1968 ..................................................................................... 27

Bank supervision. See Supervision of banks; Examination of 

insured banks.

Banking offices, number of. See Number of banks and branches.

Banks in financial difficulties:

INDEX

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300 FEDERAL DEPOSIT INSURANCE CORPORATION

Insured banks requiring disbursements by FDIC:

Assets and liabilities o f ................................................................. 291-292

Deposit size o f .......................................................................................... 290

Deposits protected, 1934-1969 ........................................ 11-13, 293-295

Disbursements by FDIC, 1934-1969 ............................. 11-13, 293-296

Loans made and assets purchased by F D IC ........................................ 13

Location by State, 1934-1969 ...................................................... 294-295

Losses incurred by depositors................................................................. 12

Losses incurred by F D IC ........................................................................ 296

Name and location of, 1969 ................................................................... 11

Number of, 1934-1969 .......................................................................... 290

Number of deposit accounts, 1934-1969 ............................... 293-295

Recoveries by FDIC on assets acquired, 1934-1969 ......................... 296

Noninsured banks:

Number and deposits of commercial banks closed,

1934-1969 ................................................................................... 289-290

Banks, number of. See Number of banks and branches.

Board of Directors of FDIC. See Federal Deposit Insurance Corporation.

Board of Governors of the Federal Reserve System. See Federal Reserve 

authorities.

Branches. See also Number of banks and branches:

Establishment approved by FDIC, 1969 ........................................................ 15

Examination of, 1968 and 1969 ........................................................................ 14

Increase, branches of all banks, 1969 .................................... 5, 239, 240-241

Call reports. See Assets, liabilities, and capital of banks;

Reports from banks.

Capital of banks. See Assets, liabilities, and capital of banks; Banks in 

financial difficulties; Income of insured commercial banks;

Examination of insured banks.

Certificates of deposit. See also Deposits............................................ . 3, 29

Charge-offs by banks. See Income of insured commercial banks;

Income of insured mutual savings banks; Valuation reserves.

Class of bank, banking data presented by:

Absorptions................................................................... 16, 238-239

Income of insured commercial banks, 1969 ...................................... 279-280

Insured banks requiring disbursements by FDIC, 1934-1969 .................. 293

Number of banks and banking offices, 1969 ......... 238-239, 242-250

Number of banks and d e p o sits ..................................................................... 251

Classification of b a n k s ................................................................................. 236-237

Closed banks. See Banks in financial difficulties.

Commercial banks. See Assets, liabilities, and capital of banks; Deposits;

Income of insured commercial banks; Number of banks and branches.

Comptroller of the C urrency...............................................iv, v, 21, 27, 30, 253, 275

Conferences with supervisors of State ba n ks.................................................... 20-21

Consolidations. See Absorptions.

Credit, bank. See Assets, liabilities, and capital of banks.

Demand deposits. See Assets, liabilities, and capital of banks; Deposits.

Deposit insurance coverage...................................................................... 7, 12-13, 26

Deposits insured by FDIC:

Estimated insured deposits, December 31, 1934-1969 ............................. 26

Increase in maximum per depositor........................................ 7, 12-13, 26, 29

Deposits of: See also Assets, liabilities, and capital of banks:

Banks closed because of financial difficulties, 1934-1969 . . . . 290

Commercial banks:

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INDEX 301

By insurance status and type of bank, and type of account,

June 30, 1969 .......................................................................... 254-257

By insurance status and type of bank, and type of account,

December 31, 1969 .................... 258-261

Insured commercial banks:

Average demand and time deposits, 1961-1969 ............................... 277

By class of bank, December 31, 1969 ............................................... 251

By deposit size of bank, December 31, 1969 .................................... 251

December call dates, 1961, 1965-1969 ............................................... 265

Mutual savings banks, by insurance status, June 30, 1969, and

December 31, 1969 ............................................................................ 263

Insured mutual savings banks:

Average demand and time deposits, 1961-1969 ............................... 286

December call dates, 1961, 1965-1969 ............................................... 268

Deposits, number of insured commercial banks with given ratios of

demand to total deposits........................................................................ 273

Directors of FDIC. See Federal Deposit Insurance Corporation.

Disbursements. See Banks in financial difficulties.

Dividends:

To depositors in insured mutual savings banks. See Income of insured 

mutual savings banks.

To stockholders of insured commercial banks. See Income of insured 

commercial banks.

Earnings of banks. See Income of insured commercial banks; Income of insured

mutual savings banks.

Employees:

F D IC ........................................ 21

Insured commercial banks,

number and compensation, 1961-1969 ......... . 276-277

Insured mutual savings banks, number and

compensation, 1961-1969 ............................... . . 285-286

Examination of insured banks:

By FDIC, 1969 ..................................................................................................... 14

Regions and regional d ire cto rs.......................................................................... vi

Expenses of banks. See Income of insured commercial banks;

Income of insured mutual savings banks.

Expenses of F D IC ............................................... . 23-25

Failures. See Banks in financial difficulties.

Federal banking legislation............................. . 6-8, 139-169

Federal Deposit Insurance Corporation:

Actions on applications................................................................................. 15-16

Assessments on insured b a n ks ................................................................... 23-25

Assets .................................................................................................................. 22

Audit ................................................................................................................. 26

Banks examined by, and submitting reports t o ........................... 13-14, 18-19

Borrowing pow er............................................................................................ 22-23

Capital s to c k ..................................................................................................... 25n

Conferences .................................................................................................. 20-21

Coverage of deposit insurance, banks participating.................. 7, 12-13, 26

Deposit insurance fund (s u rp lu s )................................................. 22-23, 25-26

Directors (members of the B o a rd )............................................................... v, 21

Disbursements for protection of depositors........................... 11-13, 291-296

D ivisions......................................................................................................... iv, 21

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Employees ............................................................................................................ 21

Examination of b a n k s ................................................................................... 13-14

Financial statements, 1969 .......................................................................... 22-24

Income and expenses, 1933-1969 ................................................................... 25

Insured banks requiring disbursements by. See Banks in 

financial difficulties.

Liabilities .............................................................................................................. 22

Loans to, and purchase of assets from, insured b a n ks ............................... 13

Losses incurred, 1934-1969 .............................................................................. 13

Methods of protecting depositors............................................................... 11-12

Officials .................................................................................................................. v

Organization .......................................................................................................... iv

Payments to insured depositors............................................... 11-13, 291-296

Publications ................................................................................................... 18-19

Recoveries................................................................................................... 13, 296

Regions .................................................................................................................. vi

Regulation of interest ra te s ...................................................................... 6-7, 28

Regulation of standards for bank security devices.................................. 27-28

Reports from b a n k s ..................................................................................... 18-19

Research .............................................................................................................. 19

Reserve for losses on assets acquired...................................................... 21-22

Rules and regulations................................................................. 27-30, 170-217

Sources and application of fu n d s ..................................................................... 24

Supervisory activities ................................................................................... 13-21

Training program s.......................................................................................... 19-20

Federal Home Loan Bank B o a rd ...................................................................... 6, 27-28

Federal Reserve au th o ritie s.......................................................... 6-7, 19, 27-28, 30

Federal Reserve member banks. See Class of bank, banking data 

presented by.

Federal Savings and Loan Insurance Corporation.................................................... 7

Financial Developments. See Part One— Banking Developments...................... 3-6

Foreign governments, time deposits o f ................................................................... 29

General Accounting O ffic e .......................................................................................... 26

Income of FDIC ..................................................................................................... 23-25

Income of insured commercial banks:

Amounts of principal components:

Annually, 1961-1969 ..................................................................... 276-277

By class of bank, 1969 ................................................................... 279-280

By size of bank, 1969 ..................................................................... 281-282

Classification of income d a ta ................................................................. 274-275

Earnings, 1969 ................................................................................................... 4-5

Ratios of income items:

Annually, 1961-1969 .............................................................................. 278

By size of bank, 1969 ...................................................................... 283-284

Sources of d a ta ................................................................................................ 275

Income of insured mutual savings banks:

Amounts of principal components, 1961-1969 .................................... 285-286

Earnings, 1969 ....................................................................................................... 5

Ratios of income and expense items, 1961-1969 ...................................... 287

Sources of d a ta ................................................................................................. 275

Insolvent banks. See Banks in financial difficulties.

Insurance status, banks classified by:

Assets and liabilities of, June 30, 1969, and December 31, 1969 . . 254-263

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INDEX 303

Changes in number of, 1969 .......................................................................... 238

Class of bank and s iz e ..................................................................................... 251

Income of insured commercial ba n ks.................................................... 279-280

Percentage of banks insured, by State, December 31, 1969 ........... 242-250

Insured banks. See Assets, liabilities, and capital of banks; Banks in 

financial difficulties; Deposits; Income of insured commercial banks;

Income of insured mutual savings banks; Number of banks and branches. 

Insured commercial banks not members of the Federal Reserve System.

See Class of bank, banking data presented by.

Insured deposits. See Banks in financial difficulties; Deposit insurance 

coverage.

Insured State banks members of the Federal Reserve System. See Class 

of bank, banking data presented by.

Interest rates paid by insured banks:

Authority to regulate.......................................................................................... 6-7

Maximum ra te s .......................................................................................... 3, 28-29

Survey of, by F D IC .............................................................................................. 19

Investments. See Assets, liabilities, and capital of banks; Assets and 

liabilities of FDIC; Banks in financial difficulties.

Legislation relating to deposit insurance and banking:

Federal, enacted in 1969 ................................................................. 6-8, 139-169

State, enacted in 1969 ............................................................................ 218-233

Loans. See Assets, liabilities, and capital of banks; Banks in financial 

difficulties.

Losses:

Of banks. See Income of insured commercial banks; Income of 

insured mutual savings banks.

Of F D IC ....................................................................................................... 13, 296

On loans, reserves for. See Valuation reserves.

Provision for, in insured banks, 1961-1969 ...................... 276-278, 285-287

Massachusetts, special notice deposits in ............................................................. 28

Mergers. See Absorptions.

Methods of tabulating banking data. See Banking data, classification of.

Mutual savings banks. See Assets, liabilities, and capital of banks;

Deposits; Income of insured mutual savings banks; Number of banks 

and branches.

National banks. See Class of bank, banking data presented by.

State taxation o f ..................................................................................................... 7

New banks, 1969 ....................................................................................................... 238

Noninsured banks. See also Absorptions; Admission of banks to insurance; Assets, liabilities, and capital of banks; Banks in financial 

difficulties; Classification of banks; Class of bank, banking data presented 

by; Deposits; Number of banks and branches; Reports from banks.

Number of banks and branches:

Banks:

By insurance status, type of bank, number of branches, and

State, December 31, 1969 ........................................................ 242-250

By insurance status and type of bank, December 31, 1969 ........... 238

Changes during 1969 ...................................................... 5-6, 238, 240-241

Branches:

By insurance status and type of bank, December 31, 1969 .... 239 

By insurance status, type of bank, and State, December 31,

1969 .............................................................................................. 242-250

Changes during 1969 .................................................... 5-6, 239, 240-241

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304 FEDERAL DEPOSIT INSURANCE CORPORATION

Insured commercial banks:

December 31, 1961-1969 ..................................................................... 277

December 31, 1969, by class of bank and deposit size of bank . . 251

December 31, 1969, by State ................................................... 242-250

Distributed by capital ratios and distribution of assets and

deposits, December 31, 1969 .................... 271-273

Insured mutual savings banks . ...................................... 263

December 31, 1961-1969 ...................................................................... 286

December 31, 1969 by deposit size of bank .................................. 251

Mutual savings banks, by State, December 31, 1969 .................... 242-250

Noninsured banks by State, December 31, 1969 ............................. 242-250

Unit banks, by insurance status and State, December 31, 1969 . . 242-250 

Obligations of banks. See Assets, liabilities, and capital of banks;

Deposits.

Officers of insured banks. See Employees.

Officials of F D IC ........................................................................................

Operating banks. See Number of banks and branches.

Payments to depositors in closed insured banks. See Banks in financial 

difficulties.

Personnel. See Employees.

Political subdivision, definition o f .......................................................... . . 27

Possessions, banks and branches located in. See Areas outside 

continental United States, banks and branches located in.

Protection of depositors. See Banks in financial difficulties; Deposit 

insurance coverage.

Receivership, insured banks placed in. See Banks in financial difficulties. 

Recoveries:

By banks on assets charged off. See Income of insured commercial 

banks; Income of insured mutual savings banks.

By FDIC on disbursements. See Banks in financial difficulties.

Regions, F D IC ................................................................................................................ vi

Reports from banks .............................................................................................. 18-19

Reserves:

Of FDIC, for losses on assets acquired.......................................................... 22

Of insured banks for losses on assets. See Valuation reserves.

With Federal Reserve Banks. See Assets, liabilities, and capital of 

banks.

Rules and regulations of the FDIC. See Federal Deposit Insurance 

Corporation.

Salaries and wages:

FD IC ....................................................................................................................... 23

Insured banks. See Income of insured commercial banks; income of 

insured mutual savings banks.

Savings and loan associations..................................................................... . . 6

Savings and time deposits. See also Deposits.

Securities. See Assets, liabilities, and capital of banks; Assets and 

liabilities of FDIC; Banks in financial difficulties.

Securities, registration and reporting of b a n k ...................................... 17-18, 29-30

Security devices, minimum, of b a n ks................................................................. 27-28

Size of bank, data for banks classified by amount of deposits:

Assets and liabilities, percentages of, insured banks, 1969 ........... 269-270

Banks requiring disbursements by FDIC, 1934-1969 ............................... 294

Income data of insured commercial banks, 1969 ............................... 281-282

Income ratios of insured commercial banks, 1969 ......................... 283-284

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INDEX 305

Number and deposits of all banks.................................................................. 251

Number of employees of insured commercial banks, 1969 ............. 281-282

Number of insured commercial banks, 1969 ...................................... 281-282

Number of insured commercial banks, grouped by ratios of selected

items to assets and deposits, December 31, 1969 ......................... 271-273

State, banking data classified by:

Changes in commercial banks and branches, 1969 ......................... 240-241

Disbursements, deposits, and depositors in insured banks requiring

disbursements by FDIC, 1934-1969 ................................................. 294-295

Number of banks and branches, by class of bank and type of office,

December 31, 1969 ............................................................................ 242-250

Percentage of banks insured, December 31, 1969 ............................. 242-250

State banking legislation enacted in 1969 .................................................... 218-233

State banks. See Class of bank, banking data presented by.

Stockholders of banks, net profits available for. See Income of insured 

commercial banks.

Supervision of banks. See also Examination of insured banks:

By FDIC ......................................................................................................... 13-21

Federal legislation............................................................................ 6-8, 139-169

State legislation, 1969 ............................................................................ 218-233

Suspensions. See Banks in financial difficulties.

Tax Reform Act of 1969 ............................................................................................ 7-8

Taxes paid by insured banks. See Income of insured commercial banks;

Income of insured mutual savings banks.

Terminations of insurance for unsafe and unsound practices...................... 14-15

Time and savings deposits. See also D eposits............................... 3, 5, 6-7, 28-29

Truth-In-Lending regulation ....................................................................................... 30

Unit banks, by insurance status and State, December 31, 1969 ........... 242-250

Valuation reserves. See also Assets, liabilities, and capital of banks:

Amounts held, June 30, 1969, and December 31, 1969. 257, 261, 262-263

Amounts held, December call dates, 1961-1969....................... 266, 267-268

Violations of law or regulations, banks charged w ith ............................................. 14

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