ANNUAL REPORT

OF THE

FEDERAL DEPOSIT INSURANCE CORPORATION

FOR THE YEAR ENDED 

DECEMBER 31,1950

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Federal Reserve Bank of St. Louis
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Federal Reserve Bank of St. Louis
LETTER OF TRANSM ITTAL

F e d e r a l D ep o sit Insukance C orp o ration

Washington, D. C., June 5,1961

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

Deposit Insurance Act, the Federal Deposit Insurance Corporation 

has the honor to submit its annual report.

Respectfully,

M a p le T . H a r l, Chairman

T h e Presid en t P ro T em pore of t h e Sen ate

T h e Speak er of th e H ouse of R epr esentatives

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Federal Reserve Bank of St. Louis
FEDERAL DEPOSIT INSURANCE CORPORATION

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Federal Reserve Bank of St. Louis
FEDERAL DEPOSIT INSURANCE CORPORATION

N a t io n a l P ress B u il d in g — W a s h in g t o n 25, D . C.

BOARD OF DIRECTORS

Chairman................................................................................ M a p le T. H a r l

f l l . E a r l C o o k

Directors..............................................................................<

(P r e sto n D e la n o

OFFICIALS—JUNE 5, 1951

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

Assistant to Chairman............................................................Lyle L. Robertson

Assistant to Director...............................................................Albert G. Towers

Associate General Counsel......................................................Norris C. Bakke

Chief, Division of Examination.............................................Vance L. Sailor

Chief, Division of Research and Statistics.............................Edison H. Cramer

Chief, Service Division........................................................... Henry T. Ivey

Chief, Personnel Division......................................................Randolph Hughes

Chief, Division of Liquidation...............................................Edward C. Tefft

Chief, Division of Finance and Accounts, and Treasurer. . . Russell D. Miller

Chief, Audit Division............................................................. Mark A. Heck

Budget Officer..........................................................................Dana G. Messer

V

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Federal Reserve Bank of St. Louis
DISTRICT OFFICES

D is t . S u p e r v is in g 

N o. E x a m in e r

1. Lundie W. Barlow

2. Neil G. Greensides

3. A. F. Shafer

4. Robert N. McLeod

5. John E. Freeman

6. W. Clyde Roberts

7. Raby L. Hopkins

8. Eugene R. Gover

9. Charles F. Alden

10. Gerhard F. Roetzel

11. Linton J. Davis

12. William P. Funsten

A ddress

Room 1365, No. 10 Post 

Square, Boston 9, Mass.

Room 1900, 14 Wall Street, 

New York 5, N. Y.

City National^Bank 

Building, 20 East Broad 

Street, Columbus 15, Ohio

200 Bank of Virginia 

Building, Fourth and 

Grace Streets,

Richmond 19, Va.

625 First National Bank 

Building, Atlanta 3, Ga.

1059 Arcade Building,

St. Louis 1, Mo.

715 Tenney Building, 

Madison 3, Wis.

741 Federal Reserve Bank 

Building, 164 W. Jackson 

Blvd., Chicago 4, 111.

1200 Minnesota Building,

St. Paul 1, Minn.

901 Federal Reserve Bank 

Building, Kansas City 6, 

Missouri

Federal Reserve Bank 

Building, Station K, 

Dallas 13, Tex.

Suite 1120, 315 Montgomery Street, San 

Francisco 4, Calif.

St a t e s in d is tr ic t

Maine, New Hampshire, 

Vermont, Massachusetts, 

Rhode Island, Connecticut

New York, New Jersey, 

Delaware, Puerto Rico, 

Virgin Islands

Ohio, Pennsylvania

District of Columbia, Maryland, Virginia, West Virginia, North Carolina, 

South Carolina

Georgia, Florida, Alabama, 

Mississippi

Kentucky, Tennessee, 

Missouri, Arkansas

Indiana, Michigan, 

Wisconsin

Illinois, Iowa

Minnesota, North Dakota, 

South Dakota, Montana

Nebraska, Kansas, 

Oklahoma, Colorado, 

Wyoming

Louisiana, Texas,

New Mexico, Arizona

Idaho, Utah, Nevada, 

Washington, Oregon, California, Alaska, Hawaii

vi

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

DISTRICT 2 INCLUDES PUERTO RICO & VIRGIN ISLANDS

DISTRICT 4 INCLUDES DISTRICT OF COLUMBIA

DISTRICT 12 INCLUDES HAWAII & ALASKA

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Federal Reserve Bank of St. Louis
CONTENTS

Page

Summary................................................................................................................... xvii

PART ONE

OPERATIONS AND POLICIES OF THE CORPORATION

The Federal Deposit Insurance Act of 1950.......................................................... 3

Participation in deposit insurance.......................................................................... 7

Action to protect depositors.................................................................................... 10

Supervisory activities............................................................................................... 15

Legal developments.................................................................................................. 22

Personnel and financial statements of the Corporation........................................ 23

PART TWO

BANKING DEVELOPMENTS

Assets, liabilities, and capital accounts.................................................................. 35

Assets......................................................................................................................... 35

Liabilities................................................................................................................... 42

Capital....................................................................................................................... 43

Earnings of insured commercial banks................................................................... 46

Mutual savings banks.............................................................................................. 53

PART THREE

HISTORY OF LEGISLATION FOR THE GUARANTY OR

INSURANCE OF BANK DEPOSITS

Predecessors of the Federal deposit insurance law................................................ 63

Deposit insurance legislation, 1933-1950................................................................. 66

Analysis of Congressional proposals for deposit guaranty or insurance, 1886-1933 68 

Digest of bills for insurance or guaranty of bank deposits introduced into

Congress, 1886-1933............................................................................................. 80

PART FOUR 

LEGISLATION AND REGULATIONS

Federal legislation:

Federal Deposit Insurance Act........................................................................... 105

Laws applicable to Federal Deposit Insurance Corporation and insured banks 133

National bank conversion act............................................................................. 153

Rules and regulations of the Federal Deposit Insurance Corporation................ 158

State banking legislation......................................................................................... 209

PART FIVE

STATISTICS OF BANKS AND DEPOSIT INSURANCE

Number, offices, and deposits of operating banks................................................. 214

Assets and liabilities of operating banks................................................................ 228

Examiners' evaluation of insured commercial banks............................................ 240

Earnings, expenses, and dividends of insured banks............................................ 248

Deposit insurance disbursements............................................................................ 276

ix

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Federal Reserve Bank of St. Louis
LIST OF CHARTS

Page

Organization chart of the Federal Deposit Insurance Corporation..................... iv

Map: Federal Deposit Insurance Corporation districts........................................ vii

A. (Map). Percentage of banks insured, December 31, 1950............................ 8

B. (Map). Deposits of insured banks as a percentage of deposits of all banks,

December 31, 1950........................................................................................ 9

C. Assets of all banks, United States and possessions, December 31, 1945-1950 36

D. Percentage increase of total loans in all banks, December 31, 1945-1950. . 38

E. Amount and type of loans, insured commercial banks, December 31, 1945-

1950................................................................................................................ 39

F. Ratios of substandard loans and valuation reserves to total loans, insured

commercial banks, 1950............................................................................... 41

G. Banks grouped by ratio of total capital accounts to total assets, insured

commercial banks, December 30, 1950....................................................... 44

H. Ratio of total capital accounts to total assets, insured commercial banks,

December 30, 1950........................................................................................ 45

I. Ratio of total capital accounts to risk assets, insured commercial banks,

December 30, 1950........................................................................................ 45

J. Sources and disposition of total income, insured commercial banks, 1950.. 46

K. Disposition of net profits after taxes, insured commercial banks, 1935-1950 52 

L. Rate of net profit after taxes on total capital accounts, insured commercial

banks, 1950.................................................................................................... 53

M. Sources and disposition of total income, insured mutual savings banks, 1950 58

L IS T OF T A B L E S 

PART ONE

OPERATIONS AND POLICIES OF THE CORPORATION

P a r t ic ip a t io n in d e po sit in s u r a n c e :

1. Number and deposits of operating banks in the United States and possessions, December 30, 1950........................................................................ 9

A ctio n to pr o tect d e p o s it o r s:

2. Losses to depositors and to the Federal Deposit Insurance Corporation in

insured banks in financial difficulties, by years, 1934-1950..................... 11

3. Number of depositors, amount of deposits, recoveries, and losses in insured

banks placed in receivership or absorbed with the financial aid of the 

Corporation, 1934-1950.............................................................................. . 12

4. Payment of deposits by the Corporation and by receivers in insured banks

placed in receivership, 1934-1950................................................................ 13

5. Disbursements to protect depositors, recoveries, and losses by the Corporation from insured banks placed in receivership or absorbed with 

its financial aid, 1934-1950........................................................................... 14

6. Estimated losses to the Corporation compared with disbursements, by

year of estimate, 1944-1950......................................................................... 15

S u p e r v is o r y a c t iv it ie s :

7. Summary of unsafe and unsound banking practices and violations of laws

charged against three banks by the Corporation during 1950.......... 19

8. Actions to terminate insured status of banks charged with engaging in

unsafe or unsound practices or violations of law or regulations, 1936-1950 20

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Page

Organization and financial statements of the C orporation:

9. Number of officers and employees, Federal Deposit Insurance Corporation,

December 31, 1950...................................................................................................... 23

10. Statement of operations of the Federal Deposit Insurance Corporation

for the year ended December 31, 1950................................................................ 24

11. Determination and distribution of net assessment income for the year

ended December 31, 1950......................................................................................... 24

12. Operating costs and expenses of the Federal Deposit Insurance Corporation

for the year ended December 31, 1950................................................................ 25

13. Income and expenses of the Federal Deposit Insurance Corporation since

beginning operations September 11, 1933, adjusted as of December 31,

1950.................................................................................................................................. 26

14. Assets and liabilities of the Federal Deposit Insurance Corporation,

1934-1950....................................................................................................................... 27

15. Statement of condition of the Federal Deposit Insurance Corporation,

December 31, 1950...................................................................................................... 27

16. Assets acquired by the Federal Deposit Insurance Corporation through

bank suspensions and absorptions from beginning of operations to

December 31, 1950...................................................................................................... 28

17. Relation of the deposit insurance fund to the deposits of insured banks.. 29

18. Financial statements of the Federal Deposit Insurance Corporation—

from Auditors’ Report for year ended June 30, 1950..................................... 30

PART TW O

BANKING DEVELOPMENTS

Assets, liabilities, and capital accounts:

19. Assets and liabilities of all banks in the United States and possessions,

December, 1950, 1949, and 1945............................................................................ 35

Assets:

20. Maturities of United States Government obligations held by insured

commercial banks, December, 1941-1950........................................................... 37

21. Principal types of loans of all banks in the United States and possessions,

December, 1945-1950................................................................................................. 38

22. Substandard assets of insured commercial banks, examinations, 1939-

1950.................................................................................................................................. 40

Liabilities:

23. Deposits of all banks in the United States and possessions, by type of

deposit, June and December, 1945-1950............................................................. 42

Capital:

24. Capital accounts of insured commercial banks in the United States and

possessions, December, 1934-1950......................................................................... 43

Earnings of insured commercial banks:

25. Sources and disposition of total income, insured commercial banks, 1945-

1950.................................................................................................................................. 46

26. Earnings, expenses, and profits of insured commercial banks, 1934-1950.. 48

27. Selected operating ratios of insured commercial banks, 1945-1950........... 49

28. Insured commercial banks using reserve method of accounting for baddebt losses on loans in accordance with ruling of Commissioner of

Internal Revenue, 1948-1950................................................................................... 51

M utual savings banks:

29. Number and deposits of all banks and of mutual savings banks, States

having mutual savings banks, December 30, 1950...................................... 54

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

December, 1950, 1949, and 1945............................................................................ 55

LIST OF TABLES xi

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xii FEDERAL DEPOSIT INSURANCE CORPORATION

Page

M utual savings banks:— Continued

31. Maturities of United States Government obligations held by all mutual

savings banks, December, 1948-1950................................................................... 56

32. Number and deposits of insured and noninsured mutual savings banks,

by State, December 30, 1950.................................................................................. 57

33. Amount and average rate of income received and dividends paid on deposits, insured mutual savings banks, 1943-1950............................................. 59

PART THREE

HISTORY OF LEGISLATION FOR THE G UAR ANTY OR

INSURANCE OF BANK DEPOSITS

Predecessors of the Federal deposit insurance l a w :

34. Deposits insured and sources of funds in deposit insurance plans enacted

by Congress or passed by one house.................................................................... 67

A nalysis of Congressional proposals for deposit guaranty or

insurance, 1886-1933:

35. Congressional bills for guaranty or insurance of bank deposits, 1886-1933. . 69

36. Banks required or permitted to participate in deposit insurance or guaranty

proposals for Federal legislation, 1886-1933...................................................... 71

37. Administrative authority in proposals for Federal deposit insurance or

guaranty legislation, 1886-1933............................................................................. 72

38. Deposits and other liabilities covered by insurance or guaranty in proposals for Federal legislation, 1886-1933............................................................. 73

39. Sources of funds in proposals for Federal legislation regarding insurance

or guaranty of bank deposits.................................................................................. 74

40. Rates of assessment on deposits in proposals for deposit insurance........... 75

41. Significant changes in bank regulation or supervision accompanying

proposals for Federal insurance or guaranty of deposits............................... 77

PART FIVE

STATISTICS OF BANKS AND DEPOSIT INSURANCE

N umber, offices, and deposits of operating banks:

Explanatory note...................................................................................................................... 214

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

in the United States and possessions during 1950........................................ 216

102. Number of all operating banks and branches, December 30, 1950

Grouped according to insurance status and class of bank, and by State

and type of office................................................................................................ 218

103. Number and deposits of all operating banks, December 30, 1950

Banks grouped according to insurance status and by district and State. . 226

Assets and liabilities of operating banks:

Explanatory note...................................................................................................................... 228

104. Assets and liabilities of all operating banks in the United States and possessions, June 30, 1950

Banks grouped according to insurance status and type of bank............... 230

105. Assets and liabilities of all operating banks in the United States and possessions, December 30, 1950

Banks grouped according to insurance status and type of bank................ 232

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

possessions, December 30, 1950

Banks grouped by district and State................................................................. 234

107. Assets and liabilities of operating insured banks, December 30, 1950,

June 30, 1950, and December 31, 1949............................................................. 236

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Examiners’ evaluation of insured commercial banks:

Explanatory note...................................................................................................................... 240

108. Examiners’ appraisal of assets, liabilities, and capital of insured commercial banks examined in 1941-1950............................................................... 242

109. Examined appraisal of assets, liabilities, and capital of insured commercial banks examined in 1950

Banks grouped according to amount of deposits........................................... 244

110. Examiners’ appraisal of assets, liabilities, and capital of insured commercial banks examined in 1950

Banks grouped by Federal Deposit Insurance Corporation district and

State...................................................................................................................... 246

Earnings, expenses, and dividends of insured banks:

Explanatory note...................................................................................................................... 248

111. Earnings, expenses, and dividends of insured commercial banks, 1942-1950 250

112. Ratios of earnings, expenses, and dividends of insured commercial banks,

1942-1950..................................................................................................................... 252

113. Earnings, expenses, and dividends of insured commercial banks, 1950

By class of bank..................................................................................................... 254

114. Ratios of earnings, expenses, and dividends of insured commercial banks,

1950

By class of bank..................................................................................................... 256

115. Earnings, expenses, and dividends of insured commercial banks operating

throughout 1950

Banks grouped according to amount of deposits........................................... 258

116. Ratios of earnings, expenses, and dividends of insured commercial banks

operating throughout 1950

Banks grouped according to amount of deposits........................................... 260

117. Earnings, expenses, and dividends of insured commercial banks, by

State, 1950.................................................................................................................. 262

118. Earnings, expenses, and dividends of insured mutual savings banks,

1942-1950..................................................................................................................... 272

119. Ratios of earnings, expenses, and dividends of insured mutual savings

banks, 1942-1950....................................................................................................... 274

D eposit insurance disbursements:

Explanatory note...................................................................................................................... 276

120. Disbursements, deposits, and depositors in insured banks financially

aided by the Federal Deposit Insurance Corporation, 1934-1950

Banks grouped by class of bank, year of aid, amount of deposits, and

State...................................................................................................................... 278

121. Assets and liabilities of insured banks placed in receivership and of insured

banks absorbed with the financial aid of the Federal Deposit Insurance

Corporation, 1934-1950

-As shown by books of bank at date of closing................................................ 280

122. Name, location, Federal Deposit Insurance Corporation disbursement,

and assets and liabilities of insured banks absorbed with the financial

aid of the Corporation during 1950.................................................................... 281

123. Recoveries and losses by the Federal Deposit Insurance Corporation

in connection with insured banks financially aided by the Corporation,

1934-1950

As shown by books of FDIC, December 31, 1950......................................... 282

LIST OP TABLES xiii

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Federal Reserve Bank of St. Louis
SUMMARY

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Federal Reserve Bank of St. Louis
S u m m a r y

In the Federal Deposit Insurance Act, approved September 21, 1950, 

changes recommended by the Corporation were embodied in the deposit 

insurance law. (Pp. 3-7).

During 1950 the Federal Deposit Insurance Corporation disbursed 

$3 million to protect depositors in four insured banks in financial difficulties. Total disbursements of the Corporation for this purpose since 

deposit insurance became effective on January 1, 1934, were $319 million, 

extended to protect the depositors of 415 insured banks. The difficulties 

of three of the banks aided during 1950 were attributed to defalcations 

by officers or employees. (Pp. 10-12).

In 1950 proceedings were initiated against three insured banks for 

engaging in unsafe and unsound banking practices. Since 1935 a total 

of 145 banks have been charged with engaging in such practices. In 

over one-fifth of these cases the banks have corrected the practices; in 

most of the remaining cases the banks have suspended operations or 

have been absorbed or succeeded by other banks. (Pp. 19-20).

The surplus of the Corporation, which is the deposit insurance fund, 

amounted to $1.2.billion at the end of 1950. This is about three-fourths 

of 1 percent of the deposits in insured banks. (Pp. 29).

Bank assets and deposits showed a growth of 7 percent in 1950. During 

the five-year period between the end of 1945 and the end of 1950 bank 

loans expanded by 99 percent, and marked changes occurred in the 

composition of the loan portfolios of the banks. At the end of 1950 real 

estate loans were 36 percent of all loans, commercial and industrial loans 

36 percent, and other loans to individuals 17 percent. (Pp. 35-39).

The capital accounts of banks have not kept pace with their total 

assets, nor with those commonly described as “ risk assets.” The ratio 

of the capital accounts of insured commercial banks to assets other than 

cash and United States Government obligations declined from 26 percent 

in 1934 to 17 percent in 1950. (P. 43).

Net profits of insured commercial banks, after taxes, and dividends 

paid to stockholders, were larger in 1950 than in any previous year. The 

average rate of net profit on total capital accounts, after taxes, was 

over 8-1/2 percent. (Pp. 46-52).

A history of deposit insurance legislation shows that 150 bills for 

this purpose were introduced into the Congress during the period from 

1886 to 1933, and that the basic principles of the deposit insurance 

system were developed in these bills and in the experience of various 

States with the guaranty of bank obligations used as circulating medium* 

(Pp. 63-101).

xvii

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Federal Reserve Bank of St. Louis
PART ONE

OPERATIONS AND POLICIES OF THE CORPORATION

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Federal Reserve Bank of St. Louis
T h e F e d e r a l D e p o s it In s u r a n c e A c t o f 1950

Except for brief interruptions, the period since the beginning of Federal 

deposit insurance has been a time of business recovery from depression 

followed by a continuously high level of business activity. This prosperity 

has been reflected both in an increased output of goods and services 

and in a larger national income, and has been associated with an expansion of bank deposits and bank assets. In 1950 the dollar value of 

the output of the nation was more than four times as large as in 

1934, the year the Corporation began operations. The aggregate income 

received by individuals, which includes wages and salaries, dividends 

and interest, and earnings from unincorporated enterprises, was also 

four times as large in 1950 as in 1934. Likewise, the deposits of operating 

commercial and savings banks in 1950 were about four times the reported 

amount in 1934.

The real economic advance from 1934 to 1950 was much less striking 

than is suggested by the foregoing figures. The increase in the value of 

output and income of the people reflects in part a larger volume of goods 

and services produced and purchased, and in part simply a rise in the 

prices at which those goods and services are sold. The real income of the 

people and the physical volume of output in 1950 were a little more than 

twice the amounts in 1934. Prices of goods and services in 1950 were 

about twice the prices of 1934.

The increase in prices meant that a given amount of bank deposits 

became less valuable in terms of goods and services. By 1950 the fixed 

maximum insurance of $5,000 per depositor provided only about onehalf as much real protection as in 1934. It was therefore to be expected 

that a demand should arise for an increase in the statutory insurance 

coverage in order to restore the degree of protection which bank depositors 

had formerly enjoyed.

Bank failures occur most frequently in times of business depression 

and deflation. They are generally few in number in periods of business 

recovery and inflation. Since 1934 the number of bank failures has been 

unusually low even for a period of recovery and prosperity. This is due 

primarily to the existence of Federal deposit insurance and the accompanying improvement in bank supervision and management. As a result 

of the small number of bank failures, the losses and operating expenses 

of the Corporation have been less than the income of the Corporation 

from the invested portion of the deposit insurance fund. In consequence, 

the full amount of the insurance assessments paid by the banks up to 

1950 remained in the surplus of the Corporation. Therefore, it was 

believed that the insurance assessment rate could be safely reduced. 

Moreover, the method of calculating the assessment due to the Cor3

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

poration, under the law as enacted in 1935, had been found to be cumbersome and expensive.

Officials of the Federal Deposit Insurance Corporation, as a result 

of a decade and a half of administration of the permanent insurance 

plan, had found that various aspects of the law could be improved. 

These related in part to the methods of handling insured banks which 

become involved in financial difficulties, in part to the examination 

and supervision of banks, and in part to more technical aspects of the 

administration of the law.

These circumstances resulted in various proposals for amending the 

deposit insurance law, some of which were embodied in bills introduced 

in one or both Houses of the Congress. In 1950 the banking and currency 

committees of both the House and the Senate held hearings on a bill 

embodying recommendations of the Corporation, and the entire deposit 

insurance law was revised. It was also removed from the Federal Reserve 

Act, and entitled the “Federal Deposit Insurance Act.” This Act was 

approved by the President and became effective on September 21, 1950.

The new law increases the maximum insurable deposit from $5,000 

to $10,000. The immediate effect of this change was to afford full protection to three million additional accounts and to increase the amount of 

deposits insured by $12 billion. Nearly 99 percent of all accounts in 

insured banks are now fully protected. Under the previous coverage less 

than 96 percent of the accounts were fully protected.

The Federal Deposit Insurance Corporation believes that depositors 

should retain some element of risk in the deposit insurance system. 

Shared risk is an important factor in Federal deposit insurance and its 

operation within the present American free enterprise dual banking 

system, and also in relation to bank supervision. Owners of small deposits 

are protected by the $10,000 maximum; owners of large deposits are 

more able to protect themselves by exercising a restraining influence 

over managerial policies. Also their personal interest as depositors is a 

force in encouraging participation in management.

The new law changes the base for deposit insurance assessment in 

two important respects: first, each semiannual assessment computation 

is now based on the average of deposits on two dates instead of the daily 

average for the six months* period; and second, certain items may be 

omitted or deducted from deposits in determining the assessment base, 

and alternative methods are provided for computing cash items. For 

more detail, see the Corporation’s regulation on assessments, which is 

given on pages 190-93.

For several years the Corporation had had under study and analysis 

various proposals designed to simplify the computation by banks of

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Federal Reserve Bank of St. Louis
FEDERAL DEPOSIT INSURANCE ACT OF 1950 5

their assessments. Early in 1946 the Corporation commenced a program 

of auditing the records of insured banks relating to their assessment 

payments. One of the chief purposes of this program was “ to assist the 

banks in preparing certified statements with the view to eliminating 

any unnecessary work and to correct any errors in interpretation of the 

regulations by the banks.” This program contemplated an audit of 

1500 banks, or approximately 10 percent of the insured banks, holding 

over 70 percent of the deposits in all insured banks. The response of the 

banks audited was evidenced by the letters from them regarding the 

helpful suggestions our auditors had offered. As a result of its studies 

and of the audit the Corporation felt that any change in the assessment 

should first provide relief from the large amount of work connected with 

the assessment base. The Corporation has not received a single complaint from the banks on their first assessment computation under the 

new law.

In view of the fact that the Corporation’s need for funds to take care 

of depositors in distressed banks had never been tested by a major 

business depression, it was recommended that no permanent reduction 

in the assessment rate be made. The studies of the Corporation had not 

demonstrated that the accumulated fund was adequate, nor had they 

determined what would be an adequate fund. In judging the adequacy 

of the fund its relation to the Corporation’s potential liability as an 

insurer must be given consideration. When compared with the $168 

billion of deposits in insured banks, the margin of protection is not 

large. At the beginning of the Federal Deposit Insurance Corporation 

in 1934 the ratio of the Corporation’s capital and surplus to deposits 

in insured banks was 0.73 percent, while as of December 31, 1950, the 

ratio was 0.74 percent. The capital accounts of insured banks must also 

be considered in connection with the adequacy of the deposit insurance 

fund. The ratio of the banks’ capital funds to total assets has decreased 

from 14 percent in 1934 to 7 percent at the close of 1950.

The new law retains the previous assessment rate of 1/12 of 1 percent , 

of deposits per year, but provides credits to insured banks in years in 

which the Corporation’s assessment income exceeds its losses and expenses. The law provides that operating costs and expenses, insurance 

losses and expenses, and additions to reserves for losses after adjustments applicable to prior periods, shall be deducted from the assessment 

becoming due each calendar year at the rate of 1/12 of 1 percent of 

deposits. The Corporation retains 40 percent of the net assessment income, 

and the balance is to be credited pro rata to insured banks to be applied 

toward payment of their assessment next becoming due. If this credit is 

larger for any bank than the next assessment, the excess is applied to 

the payment of succeeding assessments. The assessment income for the 

calendar year 1950, the deductions therefrom, and the division of the

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

net assessment income between the Corporation and the banks, are 

shown in Table 11, page 24.

As a result of the coverage and assessment provisions of the new law 

the amount of deposits insured is increased about 15 percent and the 

premium is in effect decreased by approximately 50 percent. That this 

can be done without disturbing the confidence of depositors is a tribute 

to the effectiveness of deposit insurance and the improvement in management and bank supervision which has taken place during the seventeen 

years the Corporation has been in existence.

One of the principal changes introduced into the new Act, designed 

to improve the administration of deposit insurance, is an authorization 

for the Corporation, in the discretion of its Board of Directors, to make 

loans to, purchase assets from, or make deposits in any insured bank in 

danger of closing, if continued operation of the bank is essential to provide 

adequate banking facilities for the community [Section 13 (c)]. Under 

the old law the Corporation could make loans to or purchase assets from 

a bank in financial difficulties only when such action would facilitate a 

merger with or assumption of liabilities by another insured bank. This 

section further provides that such loans and deposits may be in subordination to the rights of other depositors and creditors. It is the intent of 

the Corporation to exercise this discretionary authority sparingly and 

only in special situations and in so doing to surround such advances 

with appropriate safeguards to protect the best interests of the Corporation. This change provides more flexibility in the handling of banks 

in financial difficulties.

The Corporation is authorized by the new law to make special examinations of national banks and State banks members of the Federal 

Reserve System when such action is deemed advisable by the Board of 

Directors to determine the insurance risk. This gives the Corporation 

for the first time the authority to make its own appraisal of its risks in 

providing deposit insurance for those banks. Under the previous law 

over half of the insured banks, holding about 80 percent of the deposits 

of all insured banks, could not be examined by the Corporation without 

the written consent either of the Comptroller of the Currency or of the 

Board of Governors of the Federal Reserve System.

The new law includes a provision designed to help insured banks avoid 

weakening their financial structures in connection with voluntary mergers 

and consolidations. Withdrawal of capital and surplus in such cases is 

prohibited except with the consent of the Comptroller of the Currency 

if the continuing or succeeding bank is a national bank, the Board of 

Governors of theu Federal Reserve System if a State bank member of the 

Federal Reserve System, and the Federal Deposit Insurance Corporation 

if an insured State bank not a member of the Federal Reserve System,

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FEDERAL DEPOSIT INSURANCE ACT OF 1950 7

The new law contains a provision that requires the Corporation to 

pay to the United States Treasury interest at the rate of 2 percent per 

year for the amounts advanced to the Corporation by the Federal Reserve 

banks and the Treasury for its original capital, for the time such funds 

remained in the Corporation’s capital account. This interest, computed 

for the period covered, amounts to $81 million. One-half of this amount 

was paid on December 30, 1950, and the balance will be paid prior to 

July 1, 1951.

Another provision of the new law prohibits the use of such phrases 

as “ Federally insured” in advertisements by insured banks and other 

financial institutions. For the exact provisions, see pages 131-132.

The Board of Directors recommended to the Congress that the new 

Federal Deposit Insurance Act contain authority for the audit of the 

Corporation’s financial transactions by the General Accounting Office. 

The Board of Directors of the Corporation is proud of the opinion expressed by the auditors regarding the quality of management of the 

Corporation, and with minor exceptions the Corporation’s relations 

with this independent Government auditing agency have been most 

pleasant. The Board of Directors has always recognized that audits 

made by an independent outside agency serve not only to inform the 

public and the Congress of the Corporation’s financial operations but 

also are of assistance to the Board of Directors in its management functions. For five years prior to the Federal Deposit Insurance Act of 1950, 

authority for the audit of the financial transactions of the Corporation 

had been incorporated in the Government Corporation Control Act. 

However, the Board of Directors was of the opinion that the audit 

authority should be part of the organic law of the Corporation and 

should not be set forth in a law applicable to government corporations 

generally since the fiscal affairs of the Federal Deposit Insurance Corporation have little, if anything, in common with those of other government corporations. Congress adopted the recommendation of the Corporation; and authority for the audit of its financial transactions by the 

General Accounting Office is set forth in Section 17 of the Act. In addition 

to the audit report to the Congress, the Corporation also receives a 

short form report from the General Accounting Office, which is utilized 

in connection with the assessment credits to banks under Section 7(d) 

of the Act.

Par ticipation in D eposit Insur ance

The proportion of all banks participating in Federal deposit insurance 

continued its upward trend during 1950. At the end of the year over 

93 percent of all banks of deposit in the United States and possessions, 

holding over 95 percent of total deposits, were insured.

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

Participation by State. In ten States and the District of Columbia 

all banks regularly engaged in deposit banking were insured. Seven of the 

States were in the West—Arizona, Montana, Nevada, New Mexico, 

South Dakota, Utah, and Wyoming; two in the East—Vermont and 

Virginia; and one in the South—Alabama.

In many other States participation in deposit insurance was virtually 

complete. In each of seven States—Delaware, Idaho, Louisiana, Maryland, New Jersey, North Carolina, and Oregon—there was only one 

noninsured bank of deposit at the end of 1950; in each of two States— 

California and Florida—there were only two.

The percentages of banks insured and of deposits held by insured 

banks in each State are shown in Charts A and B. These compilations 

exclude trust companies not regularly engaged in deposit banking. The 

number and deposits of all banks grouped by type of bank and insurance 

status are given in Table 1.

In each of four States—Maine, New Hampshire, Massachusetts, and 

Connecticut—deposits of insured banks amounted to less than twothirds of total deposits. The lower ratio of deposits in insured banks 

in New England is due chiefly to the considerable number of mutual 

savings banks in that area not participating in deposit insurance.

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PARTICIPATION IN DEPOSIT INSURANCE 9

Table 1 . N u m b e r a n d D e p o s its o f O p e r a tin g B a n k s in t h e U n ite d S t a t e s 

a n d P o s s e s s io n s , D e c e m b e r 30, 1950

Type of bank and insurance status

Number of banks Total deposits

Number Percentage

distribution

Amount 

(in millions)

Percentage

distribution

All banks and trust companies—tota l. . . 14,693 100.0% $176,120 100.0%

Banks of deposit—to ta l........................... 14,622 100.0 176,039 100.0

Insured....................................................... 13,634 93.2 167,817 95.3

Noninsured................................................. 988 6.8 8,222 4.7

Comm ercial banks.................................... 14,093 100.0 156,008 100.0

Insured....................................................... 13,440 95.4 153,497 98.4

Noninsured................................................. 653 4.6 2,511 1.6

M utual savings banks.............................. 529 100.0 20,031 100.0

Insured....................................................... 194 36.7 14,320 71.5

Noninsured................................................. 335 63.3 5,711 28.5

Trust companies not regularly engaged

in deposit banking............................. 71 100.0 81i 100.0

Insured....................................................... 6 8.5 1 1.2

Noninsured................................................. 65 91.5 80 98.8

1 Uninvested trust funds and special accounts. 

Detailed data: See Table 103, pp. 226-27.

In only one State—North Dakota—did noninsured commercial banks 

hold more than 10 percent of total bank deposits. These deposits were 

held by five banks, one of which is owned by the State and which accounted for a substantial part of the deposits of noninsured banks.

Chart B. D e p o s its o f I n s u r e d B a n k s as a P e r c e n t a g e o f D e p o s its 

o f a l l B a n k s, D e c e m b e r 31, 1950

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10 FEDERAL DEPOSIT INSURANCE CORPORATION

A ction to Protect D epositors

Aid to insured banks for protection of depositors, 1950. During 

1950 four insured banks needed financial aid from this Corporation to 

protect their depositors. In all four cases the Corporation was able to 

consummate transactions whereby other insured banks in the same 

localities assumed the deposit liabilities and acquired certain assets of 

the banks in trouble. The difference between the deposits assumed and 

the assets accepted was furnished in cash by the Corporation, which in 

return took the unacceptable assets. To purchase these assets the Corporation disbursed $3,183,000.

In three of these banks large defalcations were the direct cause of the 

difficulties. In the fourth bank, adversely classified assets were the 

immediate cause, but defalcations in substantial amounts were discovered after the bank was taken over and its affairs were subjected to 

close scrutiny. The records in all four banks were found to have been 

falsified or partially destroyed, and it is not yet possible to give accurate 

figures for the amount of deposits or the number of accounts involved. 

The estimates now available indicate that total deposits of the banks 

were nearly $6,000,000 and the number of accounts over 6,000.

Each of the three banks in which defalcations were the immediate 

cause of closing was carrying fidelity insurance in an amount approximating the recommendation of the Insurance and Protective Committee 

of the American Bankers Association. However, the sum of the peculations was more than ten times the amount of fidelity insurance carried. 

The Federal Deposit Insurance Corporation emphasizes that along with 

the need for adequate fidelity insurance is the need for more internal 

controls and ceaseless vigilance by bank directors. The control of fraud 

in banks is definitely a responsibility of the directors, and not that of a 

governmental agency. Examinations of banks by supervisory agencies 

are focused on determination of the solvency and adequacy of capital 

of the banks, and on compliance with the laws under which the banks 

operate, and not upon the discovery and prevention of defalcations.

Directors of a bank are the persons to whom its shareholders and 

depositors look for proper management of its affairs. In accepting his 

office, each director assumes the responsibility of exercising such care and 

diligence in the discharge of his duties as would be shown by an ordinarily 

prudent and diligent man. It is the responsibility of the directors to keep 

a reasonably close supervision of the bank’s activities by means of 

adequate investigations and audits of the bank’s records at intervals 

sufficiently frequent to act as a deterrent to careless or fraudulent tendencies on the part of bank personnel. Further, the directors have the 

additional responsibility to see that internal controls are adequate to

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ACTION TO PROTECT DEPOSITORS 11

prevent losses of the bank’s funds through fraudulent and criminal 

practices of outsiders, such as are involved in check-kiting schemes.

Aid to insured banks for protection of depositors, 1934-1950.

From the beginning of deposit insurance on January 1, 1934, to the end 

of 1950 the Corporation made disbursements in 415 insured banks. 

These banks had about 1,354,000 deposit accounts, totaling approximately $533 million. The Corporation disbursed $273 million, exclusive 

of advances for the protection and maintenance of collateral, liquidation 

expenses, and the cost of assets purchased from receivers of closed banks 

or liquidating officers in absorption cases. Including such advances and 

expenses, the Corporation disbursed $319 million. The number of depositors and their losses, together with the disbursements and estimated 

losses of the Corporation during each of the 17 years, are given in Table 2.

Table 2. L o s s e s t o D e p o s it o r s a n d t o t h e F e d e r a l D e p o s it I n s u r a n c e 

C o r p o r a t io n in I n s u r e d B a n k s in F in a n c ia l D i f f i c u l t i e s , 

b y Y e a r s , 1934-1950

Year

Number

of

banks

Number

of

depositors1

Amount

of

deposits 

(in thousands)

Losses

to

depositors2 

(in thousands)

Losses 

to the 

Corporation3 

(in thousands)

Disbursements 

by the 

Corporation4 

(in thousands)

1934-1950.. 415 1,354,172 $533,421 $1,824 $26,930 $273,203

1950........ 4 6,224 5,766 1,360 3,183

1949........ 4 5,660 4,977 374 2,558

1948........ 3 18,311 10,455 697 3,027

1947 5 10,618 6,966 124 1,777

1946 1 1,404 316 292

1945 1 12,484 5,695 1,874

1944 2 5,488 1,915 3 41 1,520

1943 5 27,372 12,535 13 124 7,250

1942 20 60,602 19,011 5 683 11,154

1941 15 73,046 29,721 33 610 23,930

1940 43 256,373 142,389 31 4,145 74,456

1939 60 392,765 157,790 985 7,422 67,804

1938 74 203,970 59,724 40 2,432 30,512

1937 75 130,409 33,345 109 3,564 19,202

1936 69 89,024 27,528 171 2,415 14,833

1935 25 44,655 13,320 415 2,732 8,890

1934 9 15,767 1,968 19 207 941

1 Number of depositors in receivership cases; number of deposit accounts in absorption cases.

2 Excludes unclaimed deposits on which insurance has been terminated or the claims barred by 

statute of limitations. Includes restricted or deferred deposits.

* Sum of losses in the cases in which the disbursement by the Corporation to protect depositors 

was not repaid in full. Excludes interest or gains in cases in which the disbursement by the Corporation 

was fully recovered, and gains or losses on assets purchased by the Corporation from receivers of closed 

banks. For the net loss of the Corporation, see the item, “ Losses—estimated net total," in Table 16, 

p. 28.

* Principal disbursements only. Does not include expenses.

Detailed data: See Tables 120-123, pp. 278-82.

Of the banks in which the Corporation made disbursements, 245 

were placed in receivership and 170 were absorbed by other insured 

banks. In the receiverships 334,425 depositors were paid irfTull, including 

those who failed to make claims but whose funds were held in trust, 

and 48,339 sustained some loss after payment of the insured deposits

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12 FEDERAL DEPOSIT INSURANCE CORPORATION

by the Corporation. In the absorptions none of the 971,408 depositors 

experienced any loss, as all deposit liabilities were assumed by the absorbing banks. The depositors in the banks absorbed, together with 

those in receiverships who were paid in full, constituted 96.4 percent 

of all depositors involved. In amounts, recoveries to depositors are 

estimated to be $531,358,000, or a total of 99.6 percent of all deposits 

in the 415 banks. In addition $59,000 was paid into funds held in trust 

for depositors whose claims were not presented within the prescribed 

time. Further details are given in Table 3.

Table 3. N umber of D epositors, A mount of D eposits, R ecoveries, and

L osses in I nsured Ban ks Placed in R eceivership or A bsorbed w it h

the Fin ancial A id of the C orporation, 1934-1950

Item Total

Banks placed 

in

receivership

Banks absorbed 

with financial 

aid of the 

Corporation

Number of banks............................................................

Number of depositors................................................

Estimated number with no loss................................

Estimated number with some loss1...........................

Estimated number with claims barred by termination of insurance or receivership...........................

Am ount of deposits (in thousands)..........................

Estimated recovery by depositors............................

Estimated loss by depositors.....................................

Insurance terminated or claims barred....................

Disbursements by the Corporation (in thousands)2

Estimated loss to the Corporation (in thousands)3

415

1,354,172

1,301,867

2,483

49,822

$533,421

531,358

1,824

239

$273,203

26,930

245

382,764

330,459

2,483

49,822

$109,603

107,540

1,824

239

$87,044

14,401

170

971.408

971.408

$423,818

423,818

$186,159

12,529

1 1,514 depositors will lose an estimated $1,783,000 in accounts which exceeded the limit of $5,000 

insurance and were not otherwise protected, and 969 depositors will lose about $41,000 in accounts 

which had been restricted or deferred prior to 1934, or were otherwise ineligible for insurance protection.

2 Excludes advances for the protection and maintenance of collateral, liquidation expenses, and the 

cost of assets purchased from receivers of closed banks. Also excluded is $17,000 set aside for payment 

of depositor's claims not yet proven in the receivership cases. For the amount of disbursements including 

these items, see Table 16, p. 28.

3 See note 3 to Table 2.

Detailed data: See Tables 120-123, pp. 278-82.

Receiverships. All of the 245 receiverships of insured banks occurred 

prior to June 1944. Since that date the Federal Deposit Insurance Corporation has successfully protected all deposits in insured banks. That 

is to say, for nearly seven years receiverships of insured banks in difficulty 

have been avoided, and no depositor of any insured bank has lost a 

single penny because of bank failures. This constitutes an all-time 

record in the nation’s history for bank solvency and safety of deposits.

The Corporation’s disbursements to depositors in the 245 receiverships 

were $87,044,000. In addition, $17,000 has been set aside for unproven 

claims. This figure is slightly less than was previously reported due to 

final determination of unproven depositors’ claims, which^ hadjbeen 

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ACTION TO PROTECT DEPOSITORS 13

tion. Losses to the Corporation in the receivership cases are expected 

to amount to $14,401,000 or 16.5 percent of disbursements. Those to 

depositors will average only 2 percent of their deposits. Further details 

regarding the paid and unpaid deposits are given in Table 4.

T ab le 4. Pa ym en t of D eposits b y the C orporation and b y R eceivers

in I nsured Ba n ks Placed in R eceivership, 1934-1950

(In thousands)

Status of deposits Total

Paid byDec. 30, 

1950

Unpaid on 

Dec. 30, 

1950

Deposits—tota l........................................................................ $109,603

87,061

11,682

9,685

936

239

$ 86,042 

68,779 

10,045 

6,086 

936 

196

$ 23,561 

18,282 

1,637 

3,599

$107,582

87.044 

11,682

7,902

895

59

$ 85,032 

68,779

10.045 

5,254

895

*59

$ 22,550

18,265

1,637

2,648

$2,021

17

(l)

1,783

41

180

$1,010

Insured....................................................................................

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

In excess of $5,000, not otherwise protected......................

Other uninsured......................................................................

Insurance terminated or claims barred2...............................

Deposits, terminated receiverships, (240 banks)—total 

Insured....................................... ..................

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

In excess of $5,000, not otherwise protected......................

Other uninsured......................................................................

832

41

137

$1,011

17

(»)

951

Insurance terminated or claims barred...............................

Deposits, active receiverships, (5 banks)—total.............

Insured....................................................................................

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

In excess of $5,000, not otherwise protected......................

Other uninsured......................................................................

Insurance terminated or claims barred................................ 43 43

i Less than $500.

* Includes in a few cases payments by receivers, either directly or into a trust, to meet claims presented after termination of receivership.

The Corporation acts as receiver for all insured national banks placed 

in receivership, and for closed insured State banks when so appointed 

by State authorities. The Corporation has been able to terminate the 

receiverships in the cases in which it was receiver, except for one national 

bank where legal difficulties prevented prompt liquidation. This bank 

had deposits of about $1 million. It is estimated that no loss will be 

suffered by depositors or by the Corporation in this case. In the four 

remaining State receiverships, the Corporation was not appointed 

receiver. However, through cooperation with the State banking authorities, periodic reports by the receivers or liquidators are received by the 

Corporation. These banks had deposits aggregating $23 million at the 

time of failure. It is now estimated that in three of these banks neither 

the depositors nor the Corporation will have any loss. In the fourth, 

losses will amount to nearly $1 million for depositors and over $4 million 

to the Corporation. The Corporation anticipates that the process of 

liquidation of all five of these banks will be completed during the forthcoming year.

Ten receiverships were terminated during 1950. Total deposits in 

these banks were $17,574,000. The Corporation disbursed $14,480,000

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14 FEDERAL DEPOSIT INSURANCE CORPORATION

to insured depositors on which it recovered all but $269,000. The depositors with accounts in excess of $5,000 lost only $24,000. The Corporation also incurred $94,000 in nonrecoverable expenses in paying off 

insured depositors.

Absorptions. The Corporation’s disbursements in the form of loans 

to banks in difficulty or purchases of assets from such banks amounted 

to $186,159,000. Liquidation of the assets acquired by the Corporation 

has been completed in 155 of the 170 absorbed banks. At the end of 

1950 liquidation was in progress in the remaining 15 cases.

Assets acquired by the Corporation in the absorption cases are 

liquidated in such manner and during such period as may be necessary 

to provide the largest recovery. In cases where the Corporation recovers 

more than the full amount of its investment plus advances, expenses, 

and an allowable return on its investment, the excess is delivered to the 

banks’ stockholders.

Recoveries and losses to the Corporation. By December 31, 1950, 

the Corporation had recovered nearly $291 million of its $319 million 

total disbursements in receiverships and absorptions. The Corporation 

expects to recover an additional $2 million from liquidations not yet 

terminated. Table 5 summarizes the Corporation’s disbursements and 

its recoveries and losses in the two groups of cases.

Table 5. D isbursem ents to Protect D epositors, R ecoveries, and

L osses by the C orporation from I nsured Banks Placed in

R eceivership or A bsorbed w ith its F in ancial A id , 1934-1950

Item Total Liquidation

terminated

Liquidation

active

Number of banks.................................................................... 415 395 20

Receiverships.......................................................................... 245 240 5

Absorptions............................................................................. 170 155 15

Disbursements (in thousands)1.............................................. $273,203 $184,236 $88,967

Receiverships.......................................................................... 87,044 68,779 18,265

Absorptions............................................................................. 186,159 115,457 70,702

Estimated additional disbursements in receiverships

(in thousands)3.................................................................... 17 17

Recoveries (in thousands)....................................................... 244,225 166,729 77,496

Receiverships.......................................................................... 72,489 58,778 13,711

Absorptions............................................................................. 171,736 107,951 63,785

Estimated additional recoveries (in thousands)............... 2,065 2,065

Receiverships.......................................................................... 171 171

Absorptions............................................................................. 1,894 1,894

Losses by the Corporation (in thousands)*......................... 26,930 17,507 9,423

Receiverships.......................................................................... 14,401 10,001. 4,400

Absorptions............................................................................. 12,529 7,506 5,023

1 Includes only principal disbursements; i.e., excludes expenses incident to the transaction, the 

greater part of which has been recovered. See note 2 to Table 3.

* Insured deposits which have not been paid. See note 2 to Table 3.

* Losses on principal disbursements: see note 3 to Table 2. Losses in terminated cases are the established losses; those in active cases are estimated.

Detailed data: See Table 123, p. 282.

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ACTION TO PROTECT DEPOSITORS 15

The Corporation’s recoveries include $244 million recovery on $273 

million principal disbursements and full recovery of expenses incident 

to the transactions. The expenses which were recovered include advances 

for the protection and maintenance of collateral, expenses of liquidation 

of assets acquired in absorption cases, and the cost of assets purchased 

from receivers of closed banks or liquidating officers in absorption cases.

The Corporation’s losses in the 415 insured banks placed in receivership or absorbed with its financial aid are estimated at $27 million. 

Depositors’ losses in the receivership cases are estimated at $2 million. 

In addition, losses of the Reconstruction Finance Corporation on preferred stock investments in these banks are estimated at $41 million. 

That Corporation had invested approximately $43 million in those 

banks, of which it will recover only $2 million. The total losses to depositors, to the Federal Deposit Insurance Corporation, and to the 

Reconstruction Finance Corporation is therefore approximately $70 

million, or 13 percent of the total deposits of the 415 banks.

In 1950 the total estimated losses to the Corporation increased because of the disbursements to four additional banks during the year. 

Estimates of losses are necessarily subject to substantial revision, as it 

is impossible to determine accurately the value of many of the assets 

acquired until after careful and detailed analysis has been made or, in 

some cases, until actual disposal.

Table 6 gives the figures of total losses to the Corporation as estimated 

at the end of each of the past seven years. Comparable data for prior 

years are not available.

T ab le 6. E stimated L osses to the C orporation C ompared w it h D isbursem ents,

b y Y ear of E stim ate, 1944-1950

Period

Number

of

banks

Disbursements 

to end of 

period 

(in thousands)1

Losses as 

estimated at 

end of period 

(in thousands)2

Estimated 

losses as 

percent of 

disbursements

1934-1950.................................... 415 $273,203 $26,930 9.8%

1934-1949.................................... 411 269,961 25,490 9.4

1934-1948.................................... 407 266,976 24,930 9.3

1934-1947.................................... 404 264,184 26,014 9.8

1934-1946.................................... 399 262,133 28,896 11.0

1934-1945.................................... 398 261,717 31,111 11.9

1934-1944.................................... 397 259,696 38,810 14.9

1 Principal disbursements. See note 2 to Table 3.

2 Losses on principal disbursements. See note 3 to Table 2.

Supervisor y A ctivities

Bank examinations. The policy of the Corporation from its establishment has been to examine at least once annually each insured State 

bank which is not a member of the Federal Reserve System. The inforDigitized for FRASER 

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

mation of the Corporation relating to national banks is derived chiefly 

from a review of reports of examination furnished by the Office of the 

Comptroller of the Currency; and information relating to State banks 

members of the Federal Reserve System from a review of reports of 

examination furnished by the Board of Governors of that System. In 

a few cases the Corporation has made special examinations of national 

banks or State banks members of the Federal Reserve System. These 

have been made in connection with proceedings to terminate the insured 

status of banks engaged in unsafe or unsound practices, or purchase of 

assets and the making of loans to distressed banks, or applications for 

continuance of insurance of banks contemplating withdrawal from the 

Federal Reserve System or conversion from a national to a State bank. 

The Corporation, since its beginning, has conducted approximately 

113,000 bank examinations, of which about 200 have been of institutions 

regularly examined by another Federal agency.

During 1950 the Corporation conducted 6,526 regular examinations. 

In addition, it made approximately 820 other examinations and investigations. The latter figure includes 127 repeat examinations, 55 

entrance examinations of operating banks, 132 new bank investigations, 

106 branch investigations, and about 400 miscellaneous investigations. 

The above figures do not include the regular examinations of 1,186 

branches and 775 trust departments. In addition to reviewing and 

analyzing these reports, the Corporation reviewed and analyzed 2,085 

reports of examination performed by the Federal Reserve banks and 

5,745 reports of examination performed by the Office of the Comptroller 

of the Currency.

During the year the Corporation approved the retirement of preferred 

capital amounting to $6,300,000, at retirable value, in 167 insured banks 

not members of the Federal Reserve System. About two-thirds of this 

was held by the Reconstruction Finance Corporation and the remainder 

by private investors. Much of this amount was replaced by cash subscriptions to new issues of common stock. In conjunction with its examining activities, the Corporation was instrumental in effecting capital 

increases in other instances, either through cash subscriptions or stock 

dividends. Altogether, cash increases totaled $5,100,000 in common 

and preferred stock, and $3,700,000 in other capital segregations. In 

addition, common capital accounts in these banks were increased by 

approximately $14,800,000 through the medium of dividends payable 

in common stock.

Since the inauguration of deposit insurance in 1934, officials of the 

Corporation have repeatedly called attention to the need for adequate 

capital in insured banks. The Corporation has urged banks to retire as 

rapidly as possible, without impairing the adequacy of their capital, the

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SUPERVISORY ACTIVITIES 17

preferred stock which was issued to the Reconstruction Finance Corporation during the depression years of the early 1930’s and to build 

up their capital through retention of earnings or through the sale of 

additional stock to private investors. The Reconstruction Finance 

Corporation originally invested more than $1 billion in the capital of 

about 6,000 banks. By the end of 1950 this had been reduced to $98 

million in 423 banks.

The Corporation continues to recommend that insured banks carry 

fidelity bond coverage equal to or above the amounts suggested by the 

Insurance and Protective Committee of the American Bankers Association. In June of 1950 the Insurance and Protective Committee revised 

upwards its schedule of recommended blanket bond fidelity coverage. 

Since the change was effected during the calendar year, tabulations 

of the number of insured banks which meet the suggested coverage are 

not comparable with those for previous years. There is evidence, however, 

that the banks should and are continuing to increase their coverage in 

compliance with the recommendations of supervisory authorities and 

the American Bankers Association.

In 1950 the Division of Examination was successful in maintaining 

its field examining force at a point closely approximating its authorized 

numerical strength. During March and April 1950 the United States 

Civil Service Commission held examinations for appointment to the 

position of Bank Examiner. These examinations resulted in the reestablishment of registers of eligibles in the 11 districts of the Corporation 

in which the registers had been exhausted. They led also to conversion 

to permanent status for non-status incumbent examiners, and provided 

a pool of eligibles from which future vacancies in the examining force 

may be filled. At the same time the examining staff was brought up to 

practically full strength through the appointment of successful candidates.

Educational program for examiners. The Corporation is continuing 

its education program for examiners. This program, which was started 

in 1946, consists primarily of correspondence work in courses of study 

given by the American Institute of Banking, but also includes evening 

residence courses offered by colleges or universities and local chapters 

of the institute as well as special graduate courses at two selected universities. Total enrollment in all educational projects numbered 285 

at year-end.

The more advanced courses of study are made available to a limited 

number of examiners each year through enrollment in the American 

Bankers’ Association Graduate Schools of Banking held at Rutgers 

University and the School of Banking at the University of Wisconsin. 

These graduate sessions are held for a two-week period each summer 

and consist of an intensified educational training program sponsored

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

by bankers primarily for their employees. The average annual enrollment 

of the Corporation’s examiners at Rutgers and Wisconsin is about 45 

under the present schedule.

More than 900 education courses were completed by personnel of 

the Corporation from 1946 to 1950, inclusive. Among those taking 

American Institute of Banking courses, 46 were awarded Pre-Standard 

Certificates, 38 received Standard Certificates, and 7 received Graduate 

Certificates from the Institute. Of the examiners with the Corporation 

at the close of 1950, 31 held diplomas from the two Graduate banking 

schools. A number of other examiners received college degrees for study 

completed in part under the evening residence program, bringing to 

224 the total number of such degrees held by Corporation examiners. 

In addition, many of those examiners who left the Corporation to take 

positions in private banks or State banking departments have benefited 

from the educational program sponsored by the Corporation.

The cost of the training program is paid by the Corporation, although 

those students who attend the Graduate summer schools must forego 

two weeks of their annual leave. The Corporation believes that it is to 

its own financial advantage and to the best interest of the dual banking 

system to keep its examiners abreast of the times and in step with the 

educational advancement of the bankers with whom they deal directly.

The Corporation is proud of its pioneering efforts in the field of inservice training and education of bank examiners. The beneficial effects 

of such a program are being disseminated throughout the entire banking 

profession.

Unsafe and unsound banking practices and violations of law

or regulations. Section 8(a) of the Federal Deposit Insurance Act 

charges the Corporation with the responsibility of keeping insured banks 

within the channels of safe and sound banking. Whenever the Board of 

Directors finds that a bank has continued to engage in unsafe or unsound 

practices or violations of the law, it is required to give to the appropriate 

supervisory authority a statement with respect to such practices or 

violations for the purpose of obtaining necessary corrections. In situations 

of this sort the Corporation works jointly with the supervisory authority 

in the attempt to secure correction of the unsound practices or violations 

of law. If they are not corrected the Corporation has the authority to 

terminate the insured status of the bank. This power is used as an ultimate 

sanction only after every effort has been made to correct the difficulty. 

Where corrections do not appear to be feasible or likely, the Corporation 

prefers to have the bank absorbed by a sounder bank rather than to 

terminate the bank’s insured status. Accordingly, formal action to 

terminate the insured status of banks has been taken in only a small 

number of cases.

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SUPERVISORY ACTIVITIES 19

During 1950, proceedings were initiated in accordance with Section 8 

of the Federal Deposit Insurance Act against three banks for engaging 

in unsafe and unsound banking practices and violations of law. The 

practices and violations of law with which these banks were charged 

are given in Table 7. In one of these cases, the period given the bank 

to make corrections had not expired by the end of the year; in another, 

hearings were held and the charges sustained, and plans worked out 

for rehabilitation of the bank and correction of the practices; in the other 

case, the bank was absorbed by another bank.

Table 7. Sum m ary o f U n s a fe o r U n so u n d B a n k in g P r a c t ic e s a n d V i o l a t i o n s 

o f L a w C h a r g e d A g a in s t T h r e e B a n k s b y t h e C o r p o r a t io n D u r in g 1950

Type of practice or violation

Number 

of banks 

charged

Case

identification

letters

Capital:

Continued operation of the bank with inadequate capital.................

Continued operation of the bank with surplus or common stock impaired....................................................................................................

Progressive dissipation of capital funds by losses...............................

Management and general practices:

Continued operation of the bank with weak and hazardous management 

Continued operation of the bank with incapable or self-serving

management..............................................................................................

Continued operation of the bank in an unsafe and extended financial

condition...................................................................................................

Incompetency of the bank’s board of directors.......................................

Failure of the bank’s board of directors to perform duties and functions 

and properly to supervise bank’s lending and collection policies. .. . 

Continued carrying of large lines and concentrations of credit to officers

and directors of the bank........................................................................

Preferential treatment of dealings with an affiliated finance company.. 

Utter disregard of the bank’s directors and officers to heed and comply 

with the recommendations of the State banking authority and of the

Corporation..............................................................................................

Failure to heed the criticisms and recommendations of the bank’s

examiners..............................................................................................

Failure to maintain true and correct records.......................................

Failure to preserve the bank’s assets....................................................

Failure to file claims for and to collect insurance on losses thus protected 

Insufficient earnings to take looses as they occur................................

Loan and investment practices:

Maintenance of lax lending and collection policies...............................

Large amount of assets classified as “ substandard” and as “ doubtful1 

or “ loss” , as those terms are defined in reports of examination. . . .

Large amount of past due loans..............................................................

Continued making of improvident, or hazardous and improvident,

loans..........................................................................................................

Large amount of loans extended to borrowers heavily indebted to the

President of the bank and his interests.............................................

Failure to restrict total loans to reasonable proportion of assets. . . . 

Failure to give necessary attention to loans of questionable value to

prevent them from developing into losses.........................................

Failure to obtain and maintain adequate credit information.............

Failure to obtain and maintain insurance and evidences of title on

properties held as security to loans...................................................

Failure to inspect and appraise chattels and real estate held as security 

for loans................................................................................................

Violations of law:

Failure to observe and comply with, and violation of, State banking

laws...........................................................................................................

Extension of credit to directors and officers and their interests not in

conformity with legal requirements.......................................................

Extensions of credit in excess of statutory limitations...........................

Continued practice of bank’s board of directors and officers of knowingly violating and permitting violations of law..............................

a, b, c

a, c

b

a, b, c

b, c

b

b

a, b

a, b, c

a, b, c

b, c

a, b

b

c

b

a, b, c

a, b

b

a, b, c

c

a, b, c

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20 FEDERAL DEPOSIT INSURANCE CORPORATION

In four other cases, proceedings with respect to banking practices 

were pending at the beginning of the year. These were banks previously 

charged with unsafe and unsound practices and violations of law, with 

final action by the Corporation deferred in view of proposed correction 

programs. In one of these cases, corrections were made and the action 

dismissed. In the other three, progress was made in the development 

of corrective programs, and further action by the Corporation was 

deferred pending reexamination or completion of the rehabilitation 

programs.

Since 1935, when the Corporation was given authority to terminate 

the insurance of banks which continue to engage in unsafe or unsound 

practices or violations of law or regulations, a total of 145 banks have 

been charged with such practices and violations. The disposition of 

these cases is given in Table 8.

T ab le 8. A ction s to T erm inate Insured S tatu s o f B anks C harged

w ith Engaging in U n sa fe o r Unsound P ra ctic es o r V io la tio n s

o f Law o r R egu lation s, 1936-1950

Disposition or status

Total

cases

1936-19501

Pending 

beginning 

of 1950

Started

during

1950

Total banks against which action was taken................. 145 4 3

Gases closed:

Corrections made.................................................................... 32 1

Insured status terminated, or date for such termination 

set by Corporation, for failure to make corrections: 

Banks suspended prior to or on date of termination of 

insured status.................................................................. 7

Banks continued in operation*.......................................... 3

Banks suspended prior to setting of date of termination 

of insured status by Corporation.................................. 32

Banks absorbed or succeeded by other banks:

With financial aid of the Corporation.............................. 61

Without financial aid of the Corporation........................ 5 1

Gases pending December 31, 1950:

Correction period not expired............................................... 1 1

Action deferred pending reexamination or completion of 

rehabilitation program................................................... 4 3 1

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 later action is included. 

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

Back data: See the Annual Report of the Corporation for 1949, p. 13, and earlier reports.

Approval of banks for insurance. During 1950 the Corporation 

approved the applications of 102 banks for admission to insurance. Of 

these, 56 were new banks, 38 were operating as noninsured banks at 

the beginning of the year or were successors to such banks, 1 was a 

financial institution which had not been engaged previously in deposit 

banking, and 7 were insured banks which obtained new charters or 

withdrew from the Federal Reserve System. Five applications for admission to insurance were disapproved because the conditions enumerated 

in the deposit insurance law were not met.

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SUPERVISORY ACTIVITIES 21

The number of applications for admission to insurance acted on by 

the Corporation in prior years is given in the Annual Report of the 

Corporation for 1949, page 14. For the number of banks which became 

insured during 1950—a figure which differs from the number approved 

for insurance by the Board of Directors—see page 216 of this report.

Approval o f actions by insured banks. During 1950 the Corporation 

approved the establishment of 87 branches by insured banks not members 

of the Federal Reserve System. Of these, 76 were for the establishment 

of new banking offices, and 11 were banks to be absorbed and converted 

into branches. The Corporation also approved continuation of operation 

of 38 branches previously operated by absorbed banks, and the sale 

of one branch to another bank with assumption of the deposits of the 

branch. The Corporation disapproved three applications for permission 

to establish branches. For Corporation actions regarding establishment 

of branches in prior years, see the Annual Report of the Corporation 

for 1949, page 15.

During 1950 the Corporation approved the applications of 10 insured 

banks for permission to exercise trust powers, and disapproved one such 

application. The Corporation approved one bank’s application for 

permission to change the business of a paying and receiving station to 

that of a regular branch.

The Corporation approved in ten cases the assumption of deposit 

liabilities of one bank by another bank. In five of these cases, deposits 

of a noninsured bank were assumed by an insured bank; in three cases 

deposits of one insured bank were assumed by another insured bank; 

and in one case time deposits of an insured bank were assumed by a 

noninsured bank. In the other case, the Corporation approved the 

assumption of deposit liabilities of an insured bank by a noninsured 

institution, with simultaneous assumption of those deposit liabilities 

from the noninsured institution by another insured bank.

Reports from banks. Insured State banks not members of the 

Federal Reserve System, other than those in the District of Columbia, 

were required by the Corporation to report their assets, liabilities, and 

capital accounts as of June 30 and December 30, 1950, and their earnings, 

expenses, and disposition of profits for the calendar year 1950. Summaries 

of corresponding data for other insured banks have been furnished to 

the Corporation by the agencies to which those banks make reports. 

Tabulations from the reports of assets, liabilities, and capital accounts, 

for the nation and for each State, are given in the pamphlets published 

by the Corporation, “ Report No. 33, Operating Insured Commercial 

and Mutual Savings Banks, Assets and Liabilities, June 30, 1950,” and 

“ Report No. 34, Assets, Liabilities, and Capital Accounts, Capital and 

other Ratios, Commercial and Mutual Savings Banks, December 30,

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

1950.” Summary tabulations are given in Table 107 of this report, 

pages 236-39. Summaries of the reports of earnings, expenses, and disposition of profits are given in Tables 113-119, pages 254-75 of this report.

Through the cooperation of State banking authorities and of officials 

of banking institutions not under State or Federal supervision, mostly 

unincorporated banks, the Corporation obtained, as of June 30 and 

December 30, reports of assets and liabilities of noninsured banks and 

trust companies which do not file reports with a Federal agency. Tabulations from these reports, and tabulations for all banks and trust companies 

obtained by combining the data for insured and noninsurecl banks, are 

given in Tables 103-106, pages 226-35, of this report. Similar tabulations 

by State for December 30 are given in the pamphlet, “ Report No. 34,” 

referred to above.

L egal D evelopm ents

The Federal Deposit Insurance Act. For several months during 

1949 the Board of Directors and members of the staff studied the need 

for amendments to the law creating the Corporation with a view of 

re-casting it into an entirely new Act to be known as the Federal Deposit 

Insurance Act. Proposals were drafted. Conferences with outstanding 

bankers, bank representatives and others were held and in January, 

1950, the proposals were submitted to Congress in S.2822. The banking 

and currency committees of both houses held hearings on the bill. The 

important changes in the old law recommended by the Corporation were 

adopted by Congress. The old statute was withdrawn from the Federal 

Reserve Act and the new one, to be known as The Federal Deposit 

Insurance Act, was passed by the Congress and approved by the President 

on September 21, 1950. (Public Law 797, 81st Congress; 64 Stat. 873; 

12 U.S.C. 1811-1831). The important changes made by the new Act are 

discussed on pages 1-7 and the text of the Act is given on pages 105-32.

National Bank Conversion Act. Congress authorized a national 

bank to convert into, or merge or consolidate with a State bank in the 

same State under a State charter, where under the State law, State 

banks may without approval by any State authority convert into and 

merge or consolidate with national banks as provided by Federal law 

(Public Law 706, 81st Congress; 64 Stat. 455; 12 U.S.C. 214, 214a-214c). 

This law gives control over the diminution of capital and surplus in 

assumption, merger, consolidation, and conversion transactions to the 

Federal banking agency having jurisdiction over the resulting banks. 

It also provides for continuance of insurance when a national bank 

converts to a State bank, or when a State bank results from the merger 

or consolidation of an insured bank with any other bank or banks. 

The text of this Act is given on pages 153-57.

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Federal Reserve Bank of St. Louis
LEGAL DEVELOPMENTS 23

Rules and regulations o f the Corporation. The rules and regulations of the Corporation were revised after the enactment of the Federal 

Deposit Insurance Act. The rules and regulations were published in the 

Federal Register of December 6, 1950 (15 F.R. 8628), with effective 

date of January 6, 1951, as a revision of Chapter III, Title 12, Code 

of Federal Regulations. They are given on pages 158-208 of this report.

State legislation. A summary of State banking legislation enacted 

during 1950 is given on pages 209-11.

Personnel and F in an c ial Statem en ts of the C orporation

Directors and employees. Mr. Maple T. Harl, Mr. Preston Delano, 

and Mr. H. Earl Cook continued to serve as members of the Board of 

Directors throughout the year.

On December 31, 1950, the Corporation had 1,075 officers and employees, compared with 1,088 at the beginning of the year. The number 

of employees in each Division of the Corporation at the end of 1950 

is given in Table 9. Two-thirds of the employees of the Corporation 

are in the Division of Examination. Because of the cost of travel and 

other expenses incurred in examining banks, the expenses of the Division 

of Examination are three-fourths of the total operating expenses of 

the Corporation.

Table 9. N u m b e r o f O f f i c e r s a n d E m p lo y e e s, F e d e r a l D e p o s it 

I n s u r a n c e C o r p o r a t io n , D e c e m b e r 31, 1950

Division Total Washington

office

District

and

field

offices

T otal........................................................................................... 1,075 325 750

Directors.................................................................................. 3 3

Executive Division................................................................. 24 24

Legal Division........................................................................ 24 24

Division of Examination....................................................... 727 42 685

Division of Liquidation......................................................... 90 25 65

Division of Research and Statistics..................................... 46 46

Personnel Division................................................................. 17 17

Division of Accounts.............................................................. 42 42

Audit Division........................................................................ 27 27

Service Division...................................................................... 75 75

Income and expenses. A statement of the income, expenses, and 

surplus of the Corporation for 1950 is given in Table 10.

The assessment income accruing to the Corporation was much smaller 

than in prior years, because of the credit to insured banks required by 

the Federal Deposit Insurance Act of 1950. As a consequence the income 

of the Corporation in 1950 was less than $85 million. Approximately

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

two-thirds of this sum was derived from assessments and one-third from 

interest on Government securities.

T ab le 10. S tatem en t o f O perations o f th e F e d e ra l D ep osit In surance

C orporation f o r th e Y e a r Ended D ecem ber 31, 1950

Surplus adjustments:

Surplus (deposit insurance fund), December 31, 1949........ $1,203,942,687.76

Adjustments applicable to years prior to 1950:

Interest on capital stock paid to U. S. Treasury.............

Other adjustments (net credit)...........................................

$40,281,155.89

3,901,764.27

Net decrease....................................................................

Surplus (deposit insurance fund) as adjusted, December 

31, 1949...............................................................................

36,379,391.62

$1,167,563,296.14

Income:

Deposit insurance assessments.................................................

Less: Net assessment income to be credited to insured banks 

(see Table 11).................................................................

$122,682,611.27

68,706,890.72

Net deposit Insurance assessments.....................................

Interest earned on U. S. Government obligations................

Other interest received............................................................

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

$ 53,975,720.55 

27,960,077.56 

2,605,711.78 

13,350.09

Total income..................................................................... $ 84,554,859.98

Losses and expenses:

Operating expenses...................................................................

Provision for insurance losses.................................................

Insurance losses in excess of reserves.....................................

$ 6,409,098.55 

1,759,174.54 

2,853.64

Total losses and expenses................................................ $ 8,171,126.73

Net income for the year.......................................................... $ 76,383,733.25

Surplus (deposit insurance fund), December 31, 1950............ $1,243,947,029.39

Assessments payable in 1950 were $123 million. After deduction of

the Corporation’s operating expenses and losses, three-fifths of the

balance, or $69 million, was credited at the end of the year to insured

banks as an offset to the assessments payable in 1951. The method of

determining this amount is given in Table 11.

Table 11, D e t e r m in a t io n a n d D is t r ib u t io n o f N e t A ssessm en t I nco m e

f o r t h e Y e a r E n d e d D e c e m b e r 31, 1950

Total assessments which became due during the

calendar year.......................................................................... $ 122,682,611.27

Less:

1. Operating costs and expenses for the calendar year.. . .

2. Additions to reserve to provide for insurance losses.. . .

3. Insurance losses in excess of reserves...............................

$ 6,409,098.55 

1,759,174.54 

2,853.64

Total deductions........................................................... $ 8,171,126.73

Net assessment income...........................................................

40% of net assessment income to be transferred to the

Corporation’s capital account.............................................

Balance of net assessment income to be credited pro rata 

to insured banks...................................................................

$ 45,804,593.82 

68,706,890.721

$114,511,484.54

$114,511,484.54

1 Represents 56.00377% of total assessments becoming due during 1950.

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FINANCIAL STATEMENTS OF THE CORPORATION 25

Total losses and expenses of the Corporation were $8 million in 1950. 

Insurance losses for 1950 were nearly $2 million, and operating expenses 

over $6 million. A classification of operating expenses is given in Table 12.

Table 12. O p e r a tin g C o s t s a n d E x p e n s e s o f t h e F e d e r a l D e p o s it I n s u r a n c e 

C o r p o r a t io n f o r t h e Y e a r E n d e d D e c e m b e r 31, 1950

Salaries........................................................................................................................... $4,546,758.35

Professional services........................................................................ ............................. 21,443.17

Services of other Government agencies...................................................................... 3,500.99

Transportation.............................................................................................................. 227,159.28

Subsistence..................................................................................................................... 951,379.77

Office rental................................................................................................................... 348,771.97

Printing, stationery, and supplies............................................................................... 156,424.41

Postage, telephone, and telegraph.............................................................................. 42,486.25

Insurance and fidelity bond premiums....................................................................... 5,411.09

Subscriptions................................................................................................................. 13,679.34

Equipment rental.......................................................................................................... 22,406.09

Repairs and alterations................................................................................................ 11,506.88

Transportation of things.............................................................................................. 9,635.07

Furniture, fixtures, and equipment............................................................................ 56,874.31

Miscellaneous................................................................................................................. 42,376.48

Total....................................................................................................... $6,459,813.45

Less: Inter-departmental expense transfers................................................................ 39,120.25

Expenses recovered............................................................................................. 11,594.65

Total....................................................................................................... 50,714.90

Operating costs and expenses for year ended December 31, 1950................ $6,409,098.55

The Corporation’s operating income after expenses in 1950, which 

was added to the deposit insurance fund, was $76 million. In addition, 

the fund was increased by $4 million in net adjustments applicable to 

prior years. However, because of the 1950 legislation, the fund at the 

end of the year was only $40 million, or 3 percent, larger than at the 

beginning of the year. The difference of $40 million resulted from payment of one-half of the interest due the United States Treasury for the 

use of Treasury and Federal Reserve funds while invested in the capital 

stock of the Corporation. Under the provisions of the Federal Deposit 

Insurance Act of 1950 this interest, at the rate of 2 percent per year, 

was made payable in two instalments. The second instalment is to be 

paid prior to July 1, 1951.

A summary of the income and expenses of the Corporation, and additions to surplus, for each year since its organization is given in Table 13.

Assets and liabilities. A summary of the assets and liabilities of 

the Corporation for December 31, 1934 to 1950, is given in Table 14.

Assets of the Corporation totaled $1,314 million at the end of 1950. 

United States Government obligations and accrued interest receivable 

of $1,309 million accounted for most of this total. The remaining assets 

were $2.5 million in cash, $2.3 million in assets acquired through bank 

suspensions and absorptions, and $0.1 million in miscellaneous accounts 

receivable and deferred charges.

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

T ab le 13. In com e a n d E x p e n s e s o f t h e F e d e r a l D e p o s it I n s u r a n c e 

C o r p o r a t io n S in c e B e g in n in g o f O p e r a tio n s S e p te m b e r 11, 1933,

A d ju s te d a s o f D e c e m b e r 31, 19501

(In millions)

Year

Income Expenses

Net 

income 

added to 

insurance 

fund Total

Deposit

insurance

assessments

Investment

and

other

income

Total

Deposit

insurance

losses

and

expenses2

Interest

on

capital

stock

Administrative

expenses3

1933-1950... $1,381.6 $1,078.2 $303.4 $137.7 $27.2 $40.3 $70.2 $1,243.9

1950............ 84.6 54.04 30.6 7.7 1.3 6.4 76.9

1949............ 148.3 119.8 28.5 6.4 .3 6.1 141.9

1948............ 146.8 119.3 27.5 7.1 .7 .3 6.1 139.7

1947............ 157.7 114.4 43.3 8.0 .1 2.4 5.5 149.7

1946............ 130.9 107.1 23.8 7.5 .1 2.9 4.5 123.4

1945............ 121.2 93.7 27.5 6.9 .1 2.9 3.9 114.3

1944............ 99.5 80.9 18.6 6.8 .1 2.9 3.8 92.7

1943............ 86.7 70.0 16.7 7.4 .2 2.9 4.3 79.3

1942............ 69.4 56.5 12.9 7.3 .5 2.9 3.9 62.1

1941............ 62.0 51.4 10.6 7.2 .6 2.9 3.7 54.8

1940............ 55.9 46.2 9.7 10.7 4.2 2.9 3.6 45.2

1939............ 51.2 40.7 10.5 13.9 7.6 2.9 3.4 37.3

1938............ 47.8 38.3 9.5 8.3 2.4 2.9 3.0 39.5

1937............ 48.1 38.8 9.3 9.1 3.5 2.9 2.7 39.0

1936............ 43.8 35.6 8.2 7.9 2.5 2.9 2.5 35.9

1935............ 20.7 11.5 9.2 8.3 2.7 2.9 2.7 12.4

1933-34___ 7.0 (6) 7.0 7.2 .3 2.8 4.16 -0.2

1 Includes income received and expenses incurred in administering the Federal Credit Union Act from May 

16, 1942, to July 28, 1948. The Corporation was fully reimbursed for all expenses incurred in connection with 

this operation.

2 Includes nonrecoverable expenses incurred pursuant to the insurance of deposits in closed insured banks. 

Total deposit insurance losses and expenses are therefore larger than the losses incurred and reserve for losses, 

as given in Table 15.

1 Includes furniture, fixtures, and equipment charged off.

* Net after deducting $68.7 million, representing credits to insured banks of 40 percent of net assessment 

income for 1950, pursuant to provisions contained in the Federal Deposit Insurance Act (see Tables 10 and 11).

5 Assessments collected from insured banks, members of the temporary insurance funds, were credited to 

their accounts in total at the termination of the temporary funds, 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.

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

insurance funds on June 30, 1934.

A statement of the assets and liabilities of the Corporation at the 

close of 1950 is given in Table 15.

The Corporation’s assets acquired through bank suspensions and 

mergers represent its disbursements to protect depositors in closed 

banks less its recoveries, its known losses, and estimated additional 

losses. From the beginning of deposit insurance to December 31, 1950, 

the Corporation disbursed a total of $319.3 million to protect depositors 

in 415 closed or absorbed banks. During this same period recoveries of 

$290.6 million were made, leaving an uncollected balance of only $28.7 

million. The actual known losses, less realized profits, for the 17-year 

period were $17.0 million. It is estimated that additional losses of $9.4 

million will be incurred, leaving a net book value of remaining assets 

of $2.3 million. Further details regarding the disbursements, collections, 

and losses are given in Table 16.

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FINANCIAL STATEMENTS OF THE CORPORATION 27

T ab le 14. A s s e ts a n d L ia b ilit ie s o f t h e F e d e r a l D e p o s it I n s u r a n c e 

C o r p o r a t io n , 1934-1950

(in millions)

Dec. 31 Cash

U. S.

Government

obligations

Insurance

assets Other

assets

Total

assets Liabilities

Deposit

insurance

fund1

1950............ $ 2.4 $1,309.5 $ 2.3 $ .1 $1,314.3 $70.4 $1,243.9

1S49............ 1.4 1,207.3 2.8 .2 1,211.7 7.8 1,203.9

4&48....... 2.3 1,066.0 3.6 .1 1,072.0 6.1 1,065.9

1947............ 4.6 1,022.5 3.6 .1 1,030.8 24.7 1,006.1

1946............ 7.3 1,047.7 5.6 .1 1,060.7 2.2 1,058.5

1945............ 15.7 900.0 15.1 .3 931.1 1.9 929.2

1244....... 17.8 762.0 26.1 .3 806.2 1.9 804.3

1943............ 20.0 638.8 46.2 .5 705.5 2.4 703.1

1942............ 19.4 536.8 62.0 .5 618.7 1.8 616.9

1941............ 20.0 453.9 81.7 .1 555.7 2.2 553.5

1940............ 20.4 384.5 92.2 .1 497.2 1.2 496.0

1939............ 28.3 363.5 64.2 .1 456.1 3.4 452.7

1938............ 22.2 372.8 26.5 .1 421.6 1.1 420.5

1937............ 20.6 348.5 16.1 .1 385.3 2.2 383.1

1936............ 9.1 332.6 11.4 .1 353.2 9.8 343.4

1935............ 33.5 298.2 5,4 .1 337.2 31.2 306.0

1934............ 16.0 316.7 .5 .1 333.3 41.6 291.7

1 Designated capital and surplus in previous Annual Reports of the Corporation.

T ab le 15. S ta te m e n t o f C o n d itio n o f t h e F e d e r a l D e p o s it In s u r a n c e 

C o r p o r a t io n , D e c e m b e r 31, 1950

ASSETS

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

U. S. Government obligations and accrued interest receivable.............................

Assets acquired through bank suspensions and absorptions— net (See Table 16)

Furniture, fixtures, and equipment..........................................................................

Miscellaneous accounts receivable and deferred charges........................................

Total assets

LIABILITIES

Net assessment income credited to insured banks.. 

Accounts payable and other assessment credits....

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

Earnest money deposits and collections in suspense

Deferred credits..........................................................

Depositors’ claims pending settlement.....................

Total liabilities

SURPLUS1

Deposit insurance fund........................................................................................... $1,243,947,029.39

Total liabilities and surplus.............................................................. $1,314,344,741.57

1 Capital stock issued to the United States in the amount of $150,000,000.00 and to the Federal 

Reserve banks in the amount of $139,299,556.99, has been retired by payments to the United States 

Treasury in accordance with the provisions of Public Laws 363 and 813. These laws were initiated and 

recommended by the Board of Directors of the Federal Deposit Insurance Corporation and approved 

August 5, 1947, and June 29, 1948, respectively,

The Federal Deposit Insurance Act, approved September 21, 1950, provided for the payment to 

the U. S. Treasury of interest on capital stock while it was outstanding at the rate of two percent per 

annum. The first instalment payment of $40,281,155.89 was made on December 30, 1950. Since the 

second and final instalment in the same amount will not become payable until after December 31, 1950, 

it has not been reflected in this statement.

$ 68,706,890.72 

495,411.13 

903,958.46 

236,455.70 

37,325.52 

17,670.65

$ 70,397,712.18

$ 2,453,915.38 

1,309,458,494.05 

2,315,218.24 

1.00

117,112.90

$1,314,344,741.57

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28 FEDERAL DEPOSIT INSURANCE CORPORATION

T ab le 16. A ssets A cquired by th e F e d e ra l D ep osit Insurance C orporation

T h rou gh Bank Suspensions and Absorptions from B eginning o f O perations

to D ecem ber 31, 1950

(In thousands)

Total

Assets

acquired

from

liquidators1

Assets acquired from insured banks in difficulties

Total

subrogated

claims4

Receivership

Absorption cases

Loans3

Assets

purchased

under

ment4

Other

purchased5

Disbursements—total...

Original disbursement... 

Depositors’ claims pending settlement.............

Subsequent expenses for 

protection of assets. . . 

Field liquidation expenses ..........................

Collections0.......................

Uncollected balance. .. .

Losses—estimated net

total............................

Losses incurred less realized profits..................

Reserve for losses...........

Net book value of remaining assets.........

$319,330

274,678

17

31,970

12,665

290,599

28,731

26,416

16,993

9,423

2,315

$1,552

1,475

77

1,898

W 7

597*

597*

251

$317,778

273,203

17

31,893

12,665

288,701

29,077

27,013

17,590

9,423

2,064

$87,061

87,044

17

$132,717

100,292

$96,613

84,517

$1,387

1,350

72,492

14,569

14,399

9,999

4,400

170

24,745

7,680

126,927

5.790

5.790

5.790

7,111

4,985

88,383

8,230

6,345

1,322

5,023

1,885

37

899

488

479

479

1 Assets purchased outright from liquidating officers in receivership and absorption cases in order to facilitate

the termination of the liquidations.

3 Subrogated claims represent the amounts of insured deposits in closed banks paid to depositors for which 

amounts the depositors transferred their claims against the bank receiverships to the Federal Deposit Insurance 

Corporation.

* Loans to absorbed insured banks are supported by collateral and are evidenced by demand notes bearing 

interest at the rate of 4 percent per annum. Recoveries in excess of Corporation disbursements and interest 

allowances are returned to stockholders of closed banks.

4 Assets purchased under agreements with absorbed insured banks are evidenced by purchase agreements

allowing an interest return of 4 percent per annum on Corporation advances. Any excess recoveries are returned 

to the stockholders of the selling bank in the form of an additional cash purchase price.

6 Assets purchased from absorbed insured banks without refund agreements.

* Does not include operating income from the assets held by the Corporation, nor interest earned or allowable return on loans and assets purchased to protect depositors.

7 Collections in excess of disbursements.

* Net profit.

Total liabilities of the Corporation increased from $8 million on 

December 31, 1949, to $70 million on December 30, 1950. This increase 

was caused by a new account appearing on the balance sheet for the 

first time; namely, net assessment income credited to insured banks. 

This account constitutes nearly 98 percent of total liabilities.

Pursuant to Public Laws 363 and 813, 80th Congress, approved August 

5, 1947, and June 29, 1948, respectively, the Corporation retired all 

of the capital stock originally issued to the United States Treasury 

and the Federal Reserve banks. Retirement was completed on August 

30, 1948. In addition, the first instalment of interest for the use of this 

capital was made on December 30, 1950, in compliance with provisions 

of the Federal Deposit Insurance Act of September 21, 1950. The second

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FINANCIAL STATEMENTS OF THE CORPORATION 29

and final interest instalment of $40 million is to be paid prior to July 

1, 1951.

At the end of 1950 the deposit insurance fund was equivalent to 

approximately 3/4 of 1 percent of all deposits and about 1-1/3 percent 

of insured deposits. Both of these percentages are smaller than the 

corresponding figures at the beginning of the year because deposits in 

insured banks increased by 7 percent, while the deposit insurance fund 

increased by only 3 percent. The ratio of the fund to insured deposits 

was also made smaller by the increase in insurance coverage from $5,000 

to $10,000 for each depositor. Table 17 shows the total deposits, the 

estimated insured deposits, and the ratios of the deposit insurance fund 

to deposits, at the end of each year since beginning operations.

Table 17. R e l a t i o n o f t h e D e p o s it I n s u r a n c e F u n d t o t h e D e p o s its

of I n su r e d B an k s

Dec. 31

Deposit 

insurance 

fund 

(in millions)

Deposits in insured banks 

(in millions)

Ratio of deposit insurance 

fund to—

Total Insured1 Total

deposits

Insured

deposits

1950......................... $1,243.9 $167,818 $93,498 .74% 1.33%

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

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

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

1946......................... 1,058.5 148,457 73,759 .71 1.44

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

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

1948......................... 703.1 111,650 48,440 .63 1.45

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

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

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

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

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

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

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

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

1934......................... 291.7 40,060 18,075 .73 1.61

i Estimated. For method, see Annual Report of the Corporation for 1949, page 61.

Audit. The audit of the Corporation for the year ended June 30, 

1950, was made by the Comptroller General of the United States. The 

short form of the audit report has been furnished to the Corporation 

by the Comptroller General and is given in Table 18. The auditor’s 

opinion is shown on page 32.

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30 FEDERAL DEPOSIT INSURANCE CORPORATION

Table 18. Fin ancial Statem ents of the F ederal D eposit I nsurance

C orporation— from A uditors’ R eport for Y ear E nded June 30, 1950

Exhibit 1— B alance Sheet— Ju ne 30, 1950

ASSETS

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

United States Government securities, at cost—market value, 

$1,277,011,127.............................................................................. $1,275,789,500

2,526,941

$ 1,383,883 

1,278,316,441

2,379,483

136,749

1

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

Assets acquired through mergers and receiverships of 

insured banks:

Subrogated claims of depositors against banks in receivership 

(including $21,449 of pending and unpaid claims) (note 1).. . 

Equity in collateral assets (notes 2 and 4):

Under loan agreements................................................................

4,875,724

2,420,661

Under asset purchase agreements.............................................. 6,848,358

Less estimate for losses and expenses............................................

14,144,743

11,873,733

Assets purchased outright (note 3)................................................

2,271,010

108,473

Deferred charges and sundry assets............................................

Furniture, fixtures, and equipment, at nominal value............

$1,282,216,557

LIABILITIES

Accounts payable and accrued liabilities..................................................................

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

Depositors’ claims pending settlem ent.....................................................................

Employees’ accrued annual leave................................................................................

Deferred credits (note 4 ).................................................................................................

Deposit insurance reserve, representing accumulated income from inception to 

June 30, 1950, available for future losses and related expenses (notes 5, 6, and 7,

and exhibit 2 ) .....................................................................................................................................

The notes following exhibit 2 are an integral part of this statement.

Exhibit 2— Statem ent on I ncome and D eposit I nsurance R eserve

for the Y ear E nded June 30, 1950

Deposit insurance assessments...........................................................

$ 2,286,966 

13,171

$ 120,561,822 

26,526,563

1,710,137

Interest on United States Government securities............................

Income from bank mergers and receiverships:

Interest and allowable return (note 4)...........................................

Less estimated loss on merger cases acquired during the year... 

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

2,300,137

590,000

148,798,522

6,435,869

Net income for year transferred to deposit insurance reserve........

Deposit insurance reserve, June 30, 1949.........................................

Net adjustment of prior years’ estimate of losses and expenses 

restored to reserve........................................................................

142,362,653

1,135,003,216

10,070

Deposit insurance reserve, June 30, 1950 (notes 5, 6, and 7 and 

exhibit 1 )...................................................................................... $1,277,375,939

Notes 4, 5, 6, 7, and 8 on the following page are an integral part of this statement.

$ 472,805 

250,325 

21,449 

1,002,332 

3,093,707

1,277,375,939

$1,282,216,557

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FINANCIAL STATEMENTS OF THE CORPORATION 31

T ab le 18. F inancial Statem ents of the F ederal D eposit I nsurance

C orporation— from A uditors’ R eport for Y ear E nded

June 30, 1950— Continued

N otes to the F in ancial Statem ents— June 30, 1950

1. Subrogated claims represent the amounts paid to depositors on insured deposits for which the 

depositors had transferred to FDIC their claims against banks in receivership. The balance of subrogated claims at June 30, 1950, represents claims paid and uncollected on six receiverships not terminated 

at that date. Any recoveries made on these claims are in the nature of liquidating dividends paid by the 

receiverships from funds realized in disposition of bank assets.

2. Loans to merged insured banks are supported by collateral and are evidenced by demand notes 

bearing interest at the rate of 4 percent per annum on the principal and any subsequent amounts expended by the Corporation. Under this arrangement, notes are dishonored immediately by the closed 

banks and the Corporation acquires and proceeds to liquidate the collateral assets until it has collected 

the principal and any subsequent amounts expended plus interest. Any excess recoveries and residual 

unliquidated assets are returned to the stockholders of the closed banks involved.

Assets purchased under agreements with merged insured banks are evidenced by purchase agreements allowing a return at the rate of 4 percent per annum on the principal purchase price and any 

subsequent amounts expended by the Corporation. Under this arrangement the Corporation acquires 

title to the assets which it liquidates, returning any excess recoveries to the stockholders of the closed 

banks involved.

3. Assets purchased outright represent collateral assets which have been purchased by the Corporation from receivership and merger cases in order to facilitate the termination of the liquidations. 

These assets are the absolute property of the Corporation and are not subject to any agreements with 

the closed banks from which the assets were originally obtained.

4. The Corporation follows the practice of taking into income only such amounts of interest or 

allowable return as are realized after recovery in full of its investments (including recoverable expenses) 

in the respective loan and assets-purchased-under-agreement cases when they are closed. Deferred 

credits at June 30, 1950, include interest of $3,063,736 and allowable return of $5,967, a total of 

$3,069,703, representing recoveries in excess of the Corporation’s total investment on four of the merger 

cases not yet closed at that date.

5. The Corporation may borrow from the Treasury such funds as in the judgment of the board of 

directors of the Corporation are required from time to time for insurance purposes, not exceeding, in 

the aggregate, three billion dollars outstanding at any time. The Corporation has never used this borrowing power.

6. The original capital investment of the Corporation amounting to $289,299,557 consisted of 

non-dividend-bearing capital stock which was purchased by the United States Treasury and the Federal 

Reserve banks. In accordance with the act of August 5, 1947 (12 U.S.C. 264 supp.), the Corporation 

retired this stock by making payments totaling $289,299,557 to the Secretary of the Treasury. Final 

payment was made on August 30, 1948. No interest or dividends were ever paid by the Corporation 

on the Government’s investment. However, the Federal Deposit Insurance Act, approved September 

21, 1950, provides that, “ Prior to July 1, 1951, the Corporation shall pay out of its capital account to 

the Secretary of the Treasury an amount equal to 2 per centum simple interest per annum on amounts 

advanced to the Corporation on stock subscriptions by the Secretary of the Treasury and the Federal 

Reserve banks, from the time of such advances until the amounts thereof were repaid. The amount 

payable hereunder shall be paid in two equal installments, the first installment to be paid prior to December 31, 1950.” The total interest amounts to $80,562,312. The first installment was paid on December 

30, 1950.

7. Section 7(d) of the Federal Deposit Insurance Act provides that as of December 31, 1950, and 

December 31 of each calendar year thereafter, the Corporation shall credit pro rata to the insured banks 

60 percent of the net assessment income (as defined in the act) for the calendar year, such credit to be 

applied toward the payment of assessments becoming due for the semiannual period beginning the next 

ensuing July 1, and any excess credit applied to the assessment of the following period.

At June 30, 1950, the part of the net income for the first half of the calendar year 1950, included 

in the deposit insurance reserve, to be used in computing the assessment credit as of December 31, 1950, 

was not determinable.

8. Under existing law the Corporation is not required to bear the Government’s share of the cost 

of furnishing retirement, disability, and compensation benefits to the Corporation’s employees. These 

costs are estimated to be approximately $260,000 for the fiscal year 1950.

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32 FEDERAL DEPOSIT INSURANCE CORPORATION

COMPTROLLER GENERAL OF THE UNITED STATES 

WASHINGTON 25

February 21, 1951

Board of Directors,

Federal Deposit Insurance Corporation,

Washington 25, D.C.

Gentlemen:

An audit of the affairs of Federal Deposit Insurance Corporation for the fiscal 

year ended June 30, 1950, has been made by the General Accounting Office in accordance with provisions of section 17(b) of the Federal Deposit Insurance Act, approved 

September 21, 1950.

There is transmitted herewith a short form report including statements of financial 

position and operations, together with explanatory notes and auditors’ opinion, all 

of which will be included in the detailed report to be submitted by the Comptroller 

General to the Congress.

Very truly yours,

E. L. Fisher

Acting Comptroller General 

of the United States

AUDITORS’ OPINION

We have examined the balance sheet of Federal Deposit Insurance Corporation 

as of June 30, 1950, and the related statement of income and deposit insurance reserve 

for the year then ended. Our examination was made in accordance with generally 

accepted auditing standards and accordingly included such tests of the accounting 

records and such other auditing procedures as we considered necessary in the circumstances and appropriate in view of the effectiveness of the system of internal 

control, including the work performed by the Corporation’s internal auditors.

In our opinion, the accompanying balance sheet and statement of income and 

deposit insurance reserve present fairly the financial position of Federal Deposit 

Insurance Corporation at June 30, 1950, and the results of its operations for the 

year then ended in conformity with generally accepted accounting principles applied 

on a basis consistent with that of the preceding year and with applicable Federal laws.

During our examination we observed no program, expenditure, or other financial 

transaction or undertaking which, in our opinion, was carried on or made without 

authority of law.

S te p h e n B . I v e s 

Director 

Corporation Audits Division 

GeneraljAccounting Office

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PART TWO

BANKING DEVELOPMENTS

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A ssets, L ia b il it ie s, and Capital A ccounts

The most striking economic developments of 1950 were the recovery 

from the moderate business recession of 1949 and the sharp rise in prices 

during the second half of the year. The outbreak of the Korean war 

created an intensified demand for goods both on the part of industry 

and private consumers. The scare buying which followed set the stage 

for a rapid expansion of bank loans and deposits toward the end of the 

year. By the year-end total assets of all banks in the United States and 

possessions were $192 billion, deposits and other liabilities $178 billion, 

and capital accounts $14 billion. These amounts were respectively 7, 

7, and 6 percent larger than at the beginning of the year. The amount 

and percentage distribution of bank assets, liabilities, and capital accounts at the close of 1950, 1949, and 1945 are presented in Table 19.

T ab le 19. A s s e t s a n d L ia b ilit ie s o f A l l B a n k s in t h e U n it e d S t a t e s a n d 

P o s s e s s io n s , D e c e m b e r , 1950, 1949, a n d 1945

Asset, liability, or capital 

account item

Amount (in millions) Percentage distribution

Dec. 30, 

1950

Dec. 31, 

1949

Dec. 31, 

1945

Dec. 30, 

1950

Dec. 31, 

1949

Dec. 31, 

1945

Total assets.............................................. $192,241 $180,043 $178,203 100.0% 100.0% 100.0%

Cash and funds due from banks.......... 41,236 36,676 35,585 21.4 20.4 20.0

United States Government obligations. 73,188 78,754 101,822 38.1 43.7 57.1

Obligations of States and subdivisions. 8,249 6,657 4,064 4.3 3.7 2.3

Other securities...................................... 6,568 6,025 4,531 3.4 3.3 2.5

Loans and discounts—net.................... 60,711 49,828 30,473 31.6 27.7 17.1

Miscellaneous assets.............................. 2,289 2,103 1,728 1.2 1.2 1.0

Total liabilities and capital accounts $192,241 $180,043 $178,203 100.0% 100.0% 100.0%

Total deposits........................................ 176,120 165,244 166,474 91.6 91.8 93.4

Miscellaneous liabilities........................ 2,205 1,633 1,203 1.2 .9 .7

Total capital accounts.......................... 13,916 13,166 10,526 7.2 7.3 5.9

Number of banks1................................... . 14,693 14,736 14,725

1 Asset and liability data were not available for 27 banks on December 30,1950, 31 banks on December 31, 1949, and 104 banks on December 31, 1945.

Detailed data for 1950: See Table 105, pp 232-33.

A ssets

Significant changes in the distribution of assets held by all banks 

in the United States and possessions occurred during the period 1945 

through 1950. During this time bank holdings of United States Government obligations decreased $29 billion, investments in municipal and 

other securities increased $6 billion, and loans rose $30 billion. Over 

the 5-year period the growth in bank loans amounted to 99 percent, 

while the decline in bank holdings of United States Government obligations was 28 percent. The amount and distribution of assets held by all 

banks in the United States and possessions from 1945 to 1950 are shown 

in Chart C.

35

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36 FEDERAL DEPOSIT INSURANCE CORPORATION

United States Government obligations constituted only 38 percent 

of total bank assets on December 30, 1950, contrasted with 57 percent 

on December 31, 1945. Loans, on the other hand, increased from 17 

percent of the total assets in 1945 to 32 percent of the total in 1950.

C h a r t C . A s s e t s o f A l l B a n k s, U n ite d S t a t e s a n d P o s s e s s io n s , 

D e c e m b e r 31, 1945-1950

Investment in securities. On December 31, 1945, total investments 

in securities held by all banks in the United States and possessions 

amounted to $110 billion. By the end of 1950 the banks held only $88 

billion in securities, a decline of 20 percent. However, as shown in Table 

19, this decline is the result of divergent trends. Bank holdings of 

United States Government obligations declined over a fourth from 

1945 to 1950, investments in obligations of States and subdivisions 

doubled, and holdings of other securities increased almost one-half.

United States Government obligations held by insured commercial 

banks declined $5 billion in 1950. The principal changes in such holdings 

were an increase of $11 billion in notes, a decrease of over $10 billion 

in certificates, and a decline of about $6 billion in bonds. These changes

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BANK ASSETS 37

largely reflected Treasury financing activities. The Treasury offered 

notes in exchange for most of the bonds, notes, and certificates maturing 

or called in 1950.

The amount and percentage distribution by type and maturity of 

United States Government obligations held by insured commercial 

banks during the period 1941 to 1950 are given in Table 20.

Table 20. M aturities of U nited States G overnm ent Obligations H eld b y

I nsured C ommercial Ba n k s, D ecem ber, 1941-1950

Marketable issues

Dec.

31

Direct NonTotal

Certificates1

Bonds maturing in-3

Guaranteed

issues

marketable

issues*

Bills1 Notes1

5 years 

or less

5 to 10 

years

10 to 20 

years

Over 

20 years

Am ount (in millions)

1950 $61,047 $4,122 $ 1,937 $16,774 $22,594 $ 7,737 $2,987 $2,554 $ 11 $2,331

1949 65,847 3,692 12,488 5,812 27,278 7,692 4,461 2,409 6 2,009

1948 61,407 2,822 10,068 3,395 19,374 15,114 6,581 2,059 8 1,986

1947 67,960 2,124 7,555 5,920 18,341 22,202 7,534 2,654 14 1,616

1946 73,575 1,272 12,293 6,781 12,728 29,700 6,597 3,008 15 1,181

1945 88,933 2,456 19,075 16,047 9,030 32,230 6,092 2,787 22 1,194

1944 75,896 3,972 15,303 15,781 5,918 25,467 5,796 1,917 978 764

1943 58,693 4,637 13,220 7,673 5,790 16,776 6,160 1,620 2,501 316

1942 40,712 4,462 6,729 5,800 2,865 10,047 6,470 1,337 2,718 284

1941 21,047 988 3,159 1,551 3,970 5,930 1,347 4,102 (4)

Percentage

distribution

1950 100.0% 6.7% 3.2% 27.5% 37.0% 12.7% 4.9% 4.2% (6)% 3.8%

1949 100.0 5.6 19.0 8.8 41.4 11.7 6.8 3.6 (6) 3.1

1948 100.0 4.6 16.4 5.5 31.6 24.6 10.7 3.4 (6) 3.2

1947 100.0 3.1 11.1 8.7 27.0 32.7 11.1 3.9 (5) 2.4

1946 100.0 1.7 16.7 9.2 17.3 40.4 9.0 4.1 (6) 1.6

1945 100.0 2.8 21.5 18.0 10.2 36.2 6.9 3.1 (5) 1.3

1944 100.0 5.2 20.2 20.8 7.8 33.6 7.6 2.5 1.3 1.0

1943 100.0 7.9 22.5 13.0 9.9 28.6 10.5 2.8 4.3 .5

1942 100.0 11.0 16.5 14.2 7.0 24.7 15.9 3.3 6.7 .7

1941 100.0 4.7 15.0 7.4 18.8 28.2 6.4 19.5 (4)

1 Treasury bills are generally issued with maturities of 91 days; certificates of indebtedness have 

maturities of approximately one year; and Treasury notes are issued with maturities of from one to 

five years.

3 Based upon number of years to final maturity.

8 United States savings bonds, Treasury bonds (investment series A-1965), and depositary bonds. 

Prior to December 31, 1947, this item included United States savings bonds only; depositary bonds 

were included with other United States bonds according to maturity.

4 Non-marketable issues were not reported separately on December 31, 1941.

5 Less than 0.05 percent.

Loans. Total loans and discounts of all banks in the United States 

and possessions expanded $11 billion or 22 percent during 1950. Almost 

half of this increase was in commercial and industrial loans; real estate 

loans advanced nearly $4 billion and other loans to individuals $2 billion. 

Nominal increases were recorded in all other loan categories except 

agricultural loans, which were slightly lower at the year-end.

Chart D shows that the volume of bank loans more than doubled 

from 1945 to 1950 in all but 9 of the 48 States. The lowest rate of growth,

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38 FEDERAL DEPOSIT INSURANCE CORPORATION

58 percent, was recorded by the State of New York, while the highest 

rate of growth, 267 percent, was registered by North Dakota. In general, 

the percentage expansion of loans was lowest in the Eastern half of the 

United States and highest in the Western half.

C h art D. Percentage Increase of T otal L oans in A ll B a n k s,

D ecember 31, 1945-1950

T ab le 21. P rincipal T ypes of L oans of A ll Ban ks in the Un ited States and

P ossessions, D ecem ber, 1945-1950

Dec. 31

All

loans,

gross1

Commercial

and

industrial

Agricultural 

(excluding 

real estate)

Real

estate

For

carrying

securities

Other 

loans 

to individuals

All

other

Am ount

(in millions)

1950.................... $61,638 $22,068 $2,926 $21,925 $2,882 $10,243 $1,594

1949.................... 50,615 17,195 3,075 18,350 2,658 8,159 1,178

1948.................... 49,090 19,055 2,893 16,703 2,332 6,960 1,147

1947.................... 43,231 18,295 1,678 14,302 2,075 5,791 1,090

1946.................... 35,823 14,237 1,412 11,675 3,164 4,109 1,226

1945.................... 30,467 9,600 1,361 8,980 6,827 2,419 1,280

Percentage

distribution

1950.................... 100.0% 35.8% 4.7% 35.6% 4.7% 16.6% 2.6%

1949.................... 100.0 34.0 6.1 36.3 5.2 16.1 2.3

1948.................... 100.0 38.8 5.9 34.0 4.8 14.2 2.3

1947.................... 100.0 42.3 3.9 33.1 4.8 13.4 2.5

1946.................... 100.0 39.8 3.9 32.6 8.8 11.5 3.4

1945.................... 100.0 31.5 4.5 29.5 22.4 7.9 4.2

1 Gross loans include valuation reserves, which are excluded from net loans in Table 19. 

Detailed data for 1950: See Table 105, p. 232,

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Federal Reserve Bank of St. Louis
BANK ASSETS 39

Marked changes in the composition of bank loans have occurred since 

1945. Between 1945 and 1950 real estate loans advanced from 30 to 

36 percent of all loans; other loans to individuals, which include personal 

instalment loans, increased from 8 to 17 percent; commercial and industrial loans rose from 32 to 36 percent of the total, while loans made 

for the purpose of purchasing or carrying securities declined from 22 

percent to 5 percent of total loans. The distribution of loans of all banks 

by principal type of loan at the close of each year since 1945 is given in 

Table 21. A similar breakdown of the volume and distribution of loans 

made by insured commercial banks only is illustrated in Chart E.

Chart E. A mount and T ype of L oans,

I nsured C ommercial Ba n k s, D ecember 31, 1945-1950

Examiners’ appraisal of assets, insured commercial banks.

Both the amount and proportion of assets classified as substandard by 

examiners of insured commercial banks were lower in 1950 than in any 

year since 1939, except for 1945 and 1946. For banks examined in 1950 

the ratio of substandard assets to appraised value of total assets was 

0.45 percent, compared with 0.51 percent in 1949, 0.36 percent in 1946,

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

and 5.12 percent in 1939. Loans comprised about two-thirds and securities 

other than United States Government obligations almost one-third of 

all assets regarded as substandard. At the end of 1950, 0.99 percent of 

the appraised value of loans was classified substandard, and substandard 

securities amounted to 1.90 percent of the appraised value of all securities 

other than United States Government obligations. These proportions 

of substandard loans and securities were the lowest for which comparable 

data are available. Amounts and percentages of assets classified as 

substandard from 1939 to 1950 are given in Table 22.

T ab le 22. Substandard A ssets of I nsured C ommercial Ba n k s,

E xa m in a tio n s, 1939-1950

Substandard assets Substandard

loans

Substandard

securities1

Substandard 

fixed and 

miscellaneous 

assets

Year Percentage of

PerPercentage 

of total 

fixed 

and 

miscellaneous 

assets

Amount 

(in 

millions)? Total

assets

Total

capital

accounts

Amount

(in

millions)

Percentage 

of total 

loans

Amount

(in

millions)

centage 

of total 

other 

securities

Amount

(in

millions)

1950.................. $ 689 ■45% 6.35% $ 445 .99% $ 202 1.90% $ 42 1.47%

1949.................. 762 .51 7.32 515 1.26 200 2.22 47 1.65

1948.................. 788 .53 8.00 533 1.35 211 2.51 44 1.51

1947.................. 696 .48 7.42 422 1.28 231 2.92 44 1.67

1946.................. 526 .36 6.02 (3) (3) (3) (3) (3) (3)

1945.................. 619 .45 7.58 263 1.23 259 4.17 97 4.07

1944.................. 825 .69 10.92 359 1.84 302 5.20 164 7.02

1943.................. 1,260 1.24 17.84 541 2.96 462 7.65 257 11.45

1942.................. 1,714 2.13 25.26 768 3.83 617 9.28 329 15.13

1941.................. 2,031

2,552

2,970

2.84 31.12 849 4.36 753 429 19.10

1940.................. 3.93 40.35 1,054

1,229

6.23 1,039

1,207

460 22.60

1939.................. 5.12 48.21 7.73 535 24.55

1 Amounts and percentages both refer to securities other than U. S. Government obligations. 

Prior to 1942 no segregation was made between U. S. Government obligations and other securities.

2 Components do not necessarily add to the total because of rounding.

3 Data not available separately.

Detailed data for 19^1-1950: see Table 108, p. 242.

While the over-all proportion of loans classified as substandard is at 

a historically low level, the amount and percentage of such loans present 

potential problems in individual banks. There are wide geographical 

variations in the proportion of loans which are classified as substandard, 

ranging from a low of 0.36 percent in Rhode Island to 5.27 percent in 

Vermont. Banks in all the States have made provision in varying degree 

for possible losses on loans by setting up valuation reserves. The total 

amount of these reserves is greater than the total amount of substandard 

loans, but the valuation reserves are not held by the banks which appear 

to need them most. A comparison of the ratios of substandard loans and 

of valuation reserves to total loans, by State, is given in Chart F.

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Federal Reserve Bank of St. Louis
BANK ASSETS 41

Chart F. R atios of Substandard L oans a n d V aluation R eserves

to T otal L oans, I nsured C ommercial Ban k s, 1950

RATIO OF SUBSTANDARD TO TOTAL LOANS

(at time of examination)

6% 4% 2% 0

RATIO OF VALUATION RESERVES TO TOTAL LOANS

(December 30)

13 2% 4% t>%

VT. M i l

DEL 11

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

The low percentage of assets of substandard quality held by the 

insured commercial banks of our Nation is primarily a reflection of 

business prosperity. Many of those assets formerly classified as substandard have since worked out satisfactorily. At the same time it is likely 

that many of the bank assets which appear to be sound today may 

actually possess inherent weaknesses not easily recognizable in a boom 

period.

Lia bilitie s

About 99 percent of all bank liabilities, exclusive of capital accounts, 

consists of deposits. Miscellaneous liabilities other than deposits amounted 

to only $2 billion on December 30, 1950, compared with total deposits 

for all banks of $176 billion.

Deposits. Total deposits of all banks in the United States and possessions increased by nearly $11 billion, or 7 percent, during 1950. All 

of this increase occurred after the outbreak of the Korean fighting and 

the subsequent intensification of industrial and business activity. The 

most significant changes occurred in the demand and time deposit 

accounts of individuals and businesses. Demand deposits of businesses 

and individuals rose $8 billion during the year while time deposits increased by less than $1 billion. All of the increase in time deposits occurred during the first half of the year. The amount and type of deposits 

of all banks in the United States and possessions from 1945 to 1950 

are given in Table 23.

Table 23. D eposits of A ll Ban ks in the U nited States and P ossessions,

b y T ype of D eposit, Ju ne and D ecem ber, 1945-1950

(In millions)

Call dates Total

deposits

Business and personal

States

and

subdivisions

u. s.

Gov’t.

Interbank1

Total Demand Time

Certified

checks,

etc.

Dec. 30, 1950............. $176,120 $149,455 $91,314 $55,203 $2,938 $9,546 $3,059 $14,060

June 30, 1950.............. 164,555 139,642 81,924 55,541 2,177 9,580 3,875 11,458

Dec. 31, 1949.............. 165,244 140,241 83,454 54,416 2,371 8,956 3,318 12,729

June 30, 1949............. 157,239 135,003 78,399 54,216 2,388 8,912 2,373 10,951

Dec. 31, 1948............. 162,041 138,674 83,167 53,355 2,152 8,561 2,515 12,291

June 30, 1948.............. 157,177 134,961 79,723 53,181 2,057 8,511 2,249 11,456

Dec. 31, 1947.............. 162,729 140,357 85,303 52,454 2,600 7,788 1,534 13,050

June 30, 1947.............. 154,191 133,475 79,551 51,775 2,149 7,520 1,423 11,773

Dec. 31, 1946.............. 156,753 133,956 81,276 50,284 2,396 6,895 3,164 12,738

June 29, 1946.............. 159,990 127,469 76,693 48,423 2,353 6,619 13,515 12,387

Dec. 31, 1945.............. 166,474 121,776 73,876 45,285 2,615 5,786 24,770 14,142

June 30, 1945.............. 151,933 109,321 66,709 41,348 1,264 5,442 24,538 12,632

1 Includes postal savings deposits; prior to Dec. 81,1947, also includes a small amount of unclassified 

deposits.

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Federal Reserve Bank of St. Louis
BANK LIABILITIES 43

The rapid expansion in demand deposits paralleled the growth in 

total loans and emphasized the sensitivity of demand deposits to changes 

in business activity. Time deposits, on the other hand, failed to follow 

the general upward trend; rather, they showed a net decrease during the 

last six months of the year. This was the first time in many years that 

these deposits were lower at the end of the year than at mid-year. This 

deviation from trend was probably caused by the heavy scare buying 

of durable goods on the part of both individuals and businesses following 

the outbreak of war. To finance these purchases savings accounts were 

drawn on and borrowings expanded.

Capital

Total capital accounts of all insured commercial banks in the United 

States and possessions rose during 1950 to $11.3 billion, an increase of $0.6 

billion. Each year since the Corporation was organized there has been an increase in total capital accounts of insured banks. However, the increase in capital has not kept pace with the increase in total assets and 

deposits.

Table 24 gives a summary of the capital accounts and capital ratios 

of all insured commercial banks in the United States and possessions 

from 1934 to 1950.

Table 24. Capital A ccounts of I nsured C ommercial B anks in the

United States and P ossessions, D ecem ber, 1934-1950

Dec. 31

Amount (in millions) Ratio of total 

capital accounts to—

Total

capital

accounts

Common

stock

Preferred 

stock, 

capital 

notes, 

and debentures

Surplus

Undivided

profits

and

reserves

Total

assets

Assets 

other than 

cash and

u. s.

Gov’t

obligations

1950....................... $11,281 $3,437 $ 82 $5,200 $2,562 6.8% 17.1%

1949....................... 10,649 3,305 91 4,803 2,450 6.9 19.6

1948....................... 10,160 3,163 101 4,504 2,392 6.7 19.3

1947....................... 9,736 3,079 116 4,316 2,225 6.4 20.3

1946....................... 9,288 2,994 148 4,060 2,086 6.3 23.2

1945....................... 8,672 2,837 195 3,785 1,855 5.5 25.2

1944....................... 7,990 2,660 252 3,402 1,676 5.9 27.6

1943....................... 7,454 2,567 308 3,090 1,489 6.6 28.3

1942....................... 7,056 2,848 0) 2,802 1,406 7.4 26.0

1941....................... 6,845 2,469 380 2,688 1,308 8.9 22.8

1940....................... 6,673 2,441 431 2,563 1,238 9.4 24.4

1939....................... 6,524 2,432 482 2,443 1,167 10.3 25.4

1938....................... 6,435 2,428 553 2,347 1,107 11.3 25.6

1937....................... 6,404 3,030 (l) 2,268 1,106 11.8 25.0

1936....................... 6,329 3,081 0) 2,185 1,063 11.3 24.6

1935....................... 6,210 3,300 0) 1,946 964 12.2 26.1

1934....................... 6,152 3,349 0) 1,915 888 13.2 26.1

1 Preferred stock, capital notes, and debentures included with common stock.

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

From 1934 to 1950, total capital of insured commercial banks increased 

from $6.2 billion to $11.3 billion, an increase of 83 percent. During this 

same period the ratio of capital accounts to total assets declined from 

13.2 percent to 6.8 percent. The ratio of capital accounts to assets other 

than cash and United States Government obligations declined from 

26.1 percent in 1934 to 17.1 percent in 1950. This latter ratio, sometimes 

called the risk asset ratio, is at the lowest level ever reached since the 

Corporation was organized. In fact, it is necessary to go back to 1928 

to find a year when this ratio, for all commercial banks, was as low as 

it was at the end of 1950.

The distribution of insured commercial banks according to their 

ratio of total capital accounts to total assets on December 30, 1950, is 

shown in Chart G. Chart H shows the ratio of total capital accounts 

to total assets, by State.

Chart G. Ba n ks Grouped b y R atio of T otal Capital A ccounts to T otal A ssets,

I nsured C ommercial Ba n k s, D ecember 30, 1950

CAPITAL RATIO:

LESS THAN 4%

3000

8.0% to 8.9%

9.0% to 9.9%

10.0% to 10.9%

11.0% to 11.9%

12.0% to 119%

13.0% to 13.9%

14.0% to 14.9%

15.0% or MORE

1000 1500 2000

NUMBER OF BANKS

3000

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Federal Reserve Bank of St. Louis
BANK CAPITAL 45

Chart H . R atio of T otal Capital A ccounts to T otal A ssets,

I nsured C ommercial Ba n k s, D ecember 30, 1950

m m 6.0% t<>7.5%

□ 7.5% AND ABOVE 

UNITED STATES AVERAGE 6.8%

Chart I shows, by State, the ratio of total capital accounts to assets 

other than cash and United States Government securities.

Chart I. R atio of T otal Capital A ccounts to R isk A ssets,

I nsured C ommercial Ba n k s, D ecember 30, 1950

15% to 20%

□ 20% AND ABOVE 

UNITED STATES AVERAGE 17.1%

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

A noticeable regional pattern is found in the distribution of both of 

the capital ratios. The highest capital ratios are in the New England 

and Middle Atlantic States while the lowest ratios are in the West. The 

risk asset ratios follow the same regional pattern in all sections of the 

country except the South where the average ratios are about as low as 

in the West.

Insured commercial banks continued to retire the preferred stock, 

capital notes, and debentures held chiefly by the Reconstruction Finance 

Corporation. From 1945 to the end of 1950 the total par value of these 

investments was reduced from $195 million to $82 million, a reduction 

of $113 million. The remaining capital investments of the Reconstruction 

Finance Corporation in banks are concentrated in a relatively few banks.

E arnin gs of I nsured C ommercial B an ks

Net profits after taxes of insured commercial banks advanced 13 

percent during 1950 to the highest level on record. Dividend payments 

to stockholders were likewise greater than any previous disbursement, 

while profits retained in the bank continued to provide the principal 

increment to their capital accounts.

The sources and disposition of total income of insured commercial 

banks from 1945 to 1950 are summarized in Table 25.

T ab le 25. Sources and D isposition o f T o t a l Income,

Insured Com m ercial Banks, 1945-1950

(In millions)

Item 1950 1949 1948 1947 1946 1945

Total incom e................................................. $4,177 $3,820 $3,670 $3,360 $3,271 $2,992

Sources

Loans............................................................ 2,008 1,760 1,600 1,282 951 727

U. S. Government obligations................... 1,015 1,013 1,008

190

1,080 1,219 1,133

Other securities........................................... 226 202 179 177 167

Service charges on deposit accounts......... 212 194 174 148 125 110

Other current earnings...............................

Recoveries (including transfers from reserve accounts and profits on sale of

470 438 432 409 390 346

securities)................................................. 246 213 266 262 409 509

Disposition

Salaries and wages...................................... 1,202 1,111 1,044 947 831 691

Interest on deposits.................................... 343 328 317 298 269 233

Deposit insurance assessment.................... 111 109 109 105 98 86

Other current expenses...............................

Charge-offs (including losses and transfers

789 736 694 633 565 513

to reserve accounts)................................ 367 380 486 294 283 264

Income taxes................................................ 428 325 275 302 323 299

Net profits after taxes................................ 937 831 745 781 902 906

Detailed data: See Table 111, pp. 250-51.

The major sources of income of insured commercial banks and the 

disposition of this income in 1950 are shown in Chart J. Almost threeDigitized for FRASER 

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Federal Reserve Bank of St. Louis
EARNINGS OF INSURED COMMERCIAL BANKS 47

fourths of the income came from loans and United States Government 

obligations, while the largest expenditure consisted of salaries and wages. 

After deducting all expenses, charge-offs and taxes, about a fifth of total 

income remained as net profits.

C h art J. Sources and D isposition of T otal I ncom e,

I nsured C ommercial Ban ks, 1950

Total current operating earnings. Total current operating earnings of $3,931 million in 1950 exceeded the previous peak of 1949 by

9 percent. Most of the increase in current earnings, and over half the 

total earnings, came from the record volume of loans. Interest on United 

States Government obligations was practically the same as in 1949. 

Income from other securities increased by 12 percent and service charges 

on deposit accounts by 9 percent, but together these two sources provided 

only about a tenth of total current earnings. A summary of earnings, 

expense, and profit data of insured commercial banks for each year 

since 1934 is given in Table 26.

Income from loans has steadily risen in relative importance since 

World War II. At the end of 1945 loan income constituted only 29 

percent of total income. Since that time income from loans has almost

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Federal Reserve Bank of St. Louis
trebled in amount and at the end of 1950 comprised 51 percent of total 

current operating earnings.

Table 26. E a r n i n g s , E x p e n s e s , a n d P r o f i t s o f I n s u r e d C o m m e r c i a l B a n k s ,

1934-1950

48 FEDERAL DEPOSIT INSURANCE CORPORATION

(In millions)

Year

Total

current

operating

earnings

Total

current

operating

expenses1

Net

current

operating

earnings1

Chargeoffs in 

excess of 

recoveries 

and profits 

on assets 

sold*

Income

taxes*

Net

profits

after

taxes

Cash 

dividends 

declared 

and 

interest 

paid on 

capital

Net

profits

retained

in

capital

accounts

1950.. $3,931 $2,445 $1,486 $121 $428 $937 $391 $546

1949.. 3,607 2,284 1,323 167 325 831 354 477

1948.. 3,404 2,164 1,240 219 276 745 332 413

1947.. 3,098 1,982 1,116 32 302 782 315 467

1946.. 2,863 1,763 1,100 126* 323 903 299 604

1945.. 2,482 1,523 959 2I>5* 299 905 274 631

1944.. 2,215 1,357 858 96* 203 751 253 498

1943.. 1,959 1,256 703 62* 128 637 233 404

1942.. 1,790 1,222 568 48 79 441 228 213

1941.. 1,730 1,216 514 9 50 455 253 202

1940.. 1,631 1,170 461 37 23 401 237 164

1939.. 1,605 1,148 457 57 12 388 232 156

1938.. 1,584 1,148 436 126 10 300 222 78

1937.. 1,634 1,156 478 86 11 381 226 155

1936.. 1,567 1,114 453 83* 12 524 223 301

1935.. 1,486 1,078 408 195 5 208 208

1934.. 1,518 1,114 404 741 3 -3405 188 -5285

1 Figures for 1934-1941 are estimates and differ from reported figures by the amount of estimated 

incom e taxes excluded from total current operating expenses. See note 3.

a Book value of assets charged off, and transfers to valuation reserves, minus recoveries on assets 

previously charged off, transfers from valuation reserves, and profits on assets sold.

8 Includes surtax and excess profits tax. Figures for 1934-1941 are estimates, based upon Bureau 

of Internal Revenue figures of income taxes paid by national banks for 1934-1937, and paid by “ all 

banks and trust companies” for 1938-1941. Income taxes have been reported separately since 1936 for 

insured banks not members of the Federal Reserve System, and since 1942 for banks members of the 

Federal Reserve System.

* Recoveries and profits on assets sold in excess of charge-offs.

5 Net loss.

Detailed data for 1942-1950: see Table 111, pp. 250-51.

The record $2,008 million income from loans in 1950 was a result of 

both a greater volume of loans and a higher average rate of return. 

Between 1945 and 1950 income from loans increased 176 percent; over 

the same period the volume of loans expanded 97 percent, and the 

average rate of return advanced 40 percent. In 1950 most of the 

increase in loan income was derived from the rapid expansion in the 

volume of loans, since the average rate of return advanced only from 

4.22 percent in 1949 to 4.34 percent. The average rates of income on 

loans and other operating ratios, for the years 1945 to 1950, are given 

in Table 27.

The average rate of income on loans varied directly with size of bank. 

In 1950 banks with deposits of $500,000 or less received a return of 

7.06 percent on their loans; the average rate of return declined directly 

with increased size of bank, and amounted to 3.10 percent in banks 

with deposits of more than $100 million.

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EARNINGS OF INSURED COMMERCIAL BANKS 49

Interest on United States Government obligations has steadily declined in relative importance since 1945. In 1950 this interest comprised 

one-fourth of total current operating earnings, compared with nearly 

one-half in 1945. The amount in 1950, which was $1,015 million, slightly 

exceeded the amount received from this source in 1949, notwithstanding 

the decline during 1950 of almost $5 billion in holdings of United States 

Government obligations. The stability of income in this circumstance is 

explained by the fact that by far the major portion of the decline in 

bank holdings of United States Government obligations occurred in the 

latter part of 1950, so much so that average holdings during the year 

were slightly higher than during 1949. The rate of interest on bank 

holdings of United States Government obligations was a shade lower 

in 1950, averaging 1.59 percent compared with 1.61 percent in 1949.

Income from municipal and other securities increased 12 percent 

during 1950 to $225 million. During the year bank holdings of State and 

local government issues expanded sharply, as their attraction to banks 

coincided with the largest flotation of these issues ever offered in a 

single year. Together with corporate securities these issues yielded an 

average return of 2.04 percent in 1950, compared with 2.15 percent in

1949.

Table 27. S e l e c t e d O p e r a tin g R a t io s o p I n s u r e d C o m m e r cia l B a n k s, 1945-1950

Operating ratio 1950 1949 1948 1947 1946 1945

Net current operating earnings to total assets 

Net profits after taxes to total capital

.93% .87% .82% .75% .72% .66%

accounts.......................................................

Dividends and interest on capital to total

8.51 7.98 7.49 8.20 10.01 10.87

capital accounts.......................................... 3.55 3.40 3.33 3.31 3.32 3.29

Retained net profits to total capital accounts 4.96 4.58 4.16 4.89 6.69 7.58

Average rate of income on loans................... 4.34 4.22 4.04 3.79 3.43 3.09

Average rate of income on securities............

Average interest paid on time and savings

1.66 1.68 1.64 1.60 1.56 1.46

' deposits........................................................ .94 .91 .90 .87 .84 .87

Average service charges to demand deposits. 

Income taxes to net profits before income

.19 .18 .17 .14 .11 .10

taxes............................................................. 31.35 28.11 26.98 27.89 26.38 24.80

Service charges on deposit accounts amounted to $212 million. This 

source of income has grown steadily in importance over the years. Since 

1945 the average charge for the maintenance of checking accounts has 

almost doubled; in 1950 this charge averaged 19 cents per $100 of demand 

deposits.

The earnings of trust departments advanced 13 percent to $181 million 

during 1950. This growth was approximately equivalent to the total 

increase registered by trust departments during the preceding three 

years.

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

All other current operating earnings in 1950, including miscellaneous 

service charges, commissions, fees, and rentals, totaled $289 million.

Total current operating expenses. Current operating expenses 

totaled $2,445 million in 1950, 7 percent above 1949. Almost half of 

these expenditures were for wages and salaries; these increased due to 

both greater employment and higher rates of pay. Banks had about 

18,000 more employees at the end than at the beginning of the year. 

Bank officers earned an average of $6,327, and non-officer employees, 

including an unknown number of part-time workers, earned an average 

of $2,483.

Interest paid on time and savings deposits aggregated $343 million, 

the largest amount ever paid by insured commercial banks. Since World 

War II such interest payments have comprised about one-seventh of 

total expenses, compared with over one-fourth in the early years of the 

Corporation. The decline in the relative importance of interest payments 

since 1934 has been due principally to a fall in the average rate of interest 

paid on time deposits. However, the rate of interest paid on such deposits 

in 1950, which averaged 0.94 percent, was slightly higher than in the 

last few years.

Property and other taxes, except those on net income, amounted to 

$128 million. This was a 13 percent advance for an item which had 

increased only 15 percent in the preceding four years.

All other operating expenses totaled $772 million. These include such 

varied items as depreciation on fixed assets, rentals, interest on borrowed 

money, fidelity and other insurance premiums, advertising, travel, 

office supplies, deposit insurance assessments, dues, contributions, and 

other incidental items.

Net current operating earnings. Gross earnings exceeded gross 

expenses by $1,486 million, 12 percent above 1949. The rate of net 

earnings on total assets advanced from 0.87 percent to 0.93 percent, the 

highest rate in the history of the Corporation. Banks in the smallest 

size group, with deposits of $500,000 or less, earned 1.29 percent on 

total assets. The average rate of net earnings declined progressively 

with increased size of bank, and averaged 0.82 percent for banks with 

deposits of more than $100 million.

Charge-offs, recoveries, and transfers to and from reserves.

In addition to earnings from current operations, banks normally receive 

each year income of a non-recurring character. Similarly, each year 

banks make provision for losses which are not directly related to current 

operations. In 1950 charge-offs exceeded non-recurring income by $121 

million, compared with $167 million in 1949.

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EARNINGS OF INSURED COMMERCIAL BANKS 51

Income other than from current operations totaled $246 million in

1950. Over a third of this amount, or $91 million, came from profits on 

the sale of securities. Recoveries on loans and securities previously 

written off amounted to $43 million; transfers from reserve accounts, 

to adjust for anticipated losses which did not materialize, totaled $69 

million. Miscellaneous recoveries and profits were $43 million.

Charge-offs totaled $367 million in 1950. Over half, or $191 million, 

represented additions to valuation reserves for loans. Of this amount, 

$156 million were made in accordance with the December 8, 1947, ruling 

of the Commissioner of Internal Revenue. By the end of 1950, 43 percent 

of all insured commercial banks had added to their reserves in accordance 

with this ruling; the proportion was appreciably less among insured 

banks not members of the Federal Reserve System, which are generally 

smaller institutions. The number and percentage of banks using this 

reserve method and the amount of reserves set up in accordance with 

it for the last three years are shown in Table 28.

Table 28. I nsured C ommercial Ban ks U sing R eserve M ethod of A ccounting

[for B ad- debt L osses on L oans in A ccordance w ith R uling of

C ommissioner of I n ternal R e v e n u e , 1948-1950

Number and percentage of 

banks using reserve method

Amount of reserves 

(in thousands)1

Class of bank Number Percentage

Dec. 30, 

1950

Dec. 31, 

1949

Dec. 31, 

1948

1950 1949 1948 1950 1949 1948

Insured com m ercial banks 

in the United States........ 5,792 5,576 5,120 43% 42% 38% $594,986 $463,773 $320,658

National banks..................... 2,422 2,336 2,135 49 47 43 363,194 280,983 199,363

State banks members of 

Federal Reserve System.. 947 937 888 50 49 46 165,507 132,290 86,928

State banks not members of 

Federal Reserve System.. 2,423 2,303 2,097 37 35 32 66,285 50,500 34,367

1 Reserves for bad-debt losses on loans, set up in accordance with the ruling of the Commissioner of Internal 

Revenue on December 8, 1947, comprise the major portion of valuation reserves for loans; the latter totaled 

$672,986,000 on December 30, 1950.

During 1950 $56 million of losses on loans were charged to all valuation 

reserves for loans. In addition, there were direct losses and charge-offs 

on loans amounting to $23 million for which no provision had been made. 

At the end of 1950 valuation reserves for loans totaled $673 million.

Charge-offs on securities amounted to $93 million in 1950. Of this 

amount, $54 million represented additions to valuation reserves for 

securities, and $39 million consisted of direct losses for which no reserve 

had been provided. During the year $6 million of realized losses were 

charged to valuation reserves. At the end of 1950 valuation reserves for 

securities amounted to $250 million.

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52 FEDERAL DEPOSIT INSURANCE CORPORATION

Net profits and their disposition. Greater net current operating 

earnings and lower net charge-offs combined to increase net profits 

before taxes by 18 percent. In 1950 total profits before taxes were $1,365 

million. This higher level of profits brought with it a higher average 

rate of income tax, which absorbed 31 percent of net profits before 

taxes. Net profits after taxes were $937 million, still well above the 

previous peak in 1945. This represented a rate of return of 8.51 percent 

on total capital accounts, compared with 7.98 percent in 1949, and was 

the highest rate of profits since 1946.

For the eighth consecutive year dividend payments were larger than 

in the preceding year, reaching a total of $391 million in 1950. Nevertheless, the proportion of net profits disbursed as dividends was slightly 

smaller than in 1949, comprising 42 percent of net profits after taxes. 

This compares with an average of 39 percent disbursed during World 

War II and 61 percent in the prewar period. The amount and disposition 

of net profits after taxes from 1935 to 1950 are shown in Chart K.

C h art K . D isposition of N e t P rofits A fter T a x e s,

I nsured C ommercial Ban k s, 1935-1950

The profits retained, amounting to $546 million, were the principal 

source of addition to capital accounts during the year. Except for 1945 

and 1946, this was the largest addition to capital accounts since the 

beginning of deposit insurance.

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EARNINGS OF INSURED COMMERCIAL BANKS 53

Variation in net profits by State and size of bank. The rate of 

net profit after taxes on total capital accounts varied considerably among 

different geographical areas and among banks of different sizes. Part 

of the variation simply reflected differences in the relative capital position 

of the banks. However, economic forces having to do with location and 

size of institution were also at work.

Of the twenty-five States in which the banks averaged a return of 

10 percent or more on total capital accounts, nineteen were west of the 

Mississippi River and the other six were in the South. New Mexico 

with 14.6 percent had the highest rate. The lowest rates of net profit 

were in the New England and Middle Atlantic States. New Hampshire 

with 5.8 percent had the lowest rate. The rates for each State are shown 

in Chart L.

Chart L. R a t e o f N e t P r o f i t A f t e r T a x e s o n T o t a l C a p i t a l A c c o u n t s ,

I n s u r e d C o m m e r c i a l B a n k s , 1950

As in 1949, the rate of net profit on total capital accounts averaged 

the highest among banks in the $1 million to $2 million size group; banks 

in this group also had higher than average ratios of capital to assets. 

In general, the larger the bank, the smaller the average rate of net profit.

M utual Savings B an ks

Number, deposits, and assets of all mutual savings banks.

Mutual savings banks, unlike most commercial banks, conduct a specialized type of business. Nearly all of their deposits are savings and

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54 FEDERAL DEPOSIT INSURANCE CORPORATION

time deposits, and their loans and investments are largely in long-term 

obligations. They are organized on the cooperative principle; depositors 

supply the funds and are the beneficiaries of their operations.

There were 529 mutual savings banks in the United States at the 

end of 1950. Although mutual savings banks comprised only 4 percent 

of all banks in the United States at the end of 1950, and held only 11 

percent of total bank deposits, they held 36 percent of the nation’s 

savings and time deposits.

Mutual savings banks are heavily concentrated in the Northeastern 

States; all but 16 are located in the New England and Middle Atlantic 

States. Within this area the savings banks do a sizeable portion of the 

total banking business. In New England mutual savings banks comprise 

40 percent of all banks, and in New York some of the oldest and largest 

banks are organized as mutual savings institutions. In New England 

and New York State these banks held three-fourths of all savings deposits. 

The number of mutual savings banks and their relative importance in 

the States where they are located are indicated in Table 29.

Table 29. N umber and D eposits of All Banks and of M utual Sayings Banks,

States Having M utual Savings Banks, D ecember 30, 1950

Number of 

banks

Total deposits 

(in millions)

Time deposits of 

business and 

individuals 

(in millions)

Mutual savings banks 

as a percentage of 

all banks

State

All

banks

Mutual

savings

banks

All

banks

Mutual

savings

banks

All

banks

Mutual

savings

banks

NumberTotal

deposits

Time

deposits

of

business

and

individuals

United States—

total.................. 14,650 529 $175,296 $20,031 $54,932 $20,004 4% 11% 36%

17 States—total.. 5,738 529 99,074 20,031 37,552 20,004 9 20 53

Maine.................. 95 32 686 238 427 237 34 35 56

New Hampshire.. 109 34 556 278 388 278 31 50 72

Vermont.............. 77 7 341 86 236 85 9 25 36

Massachusetts.. . 371 189 7,692 3,312 4,032 3,311 51 43 82

Rhode Island. . . . 24 8 1,044 267 562 267 33 26 48

Connecticut......... 184 72 3,048 1,336 1,744 1,336 39 44 77

New York............ 759 130 44,393 11,665 15,577 11,661 17 26 75

New Jersey.......... 347 23 5,455 599 2,563 587 7 11 23

Pennsylvania. . . . 978 7 11,906 1,077 4,062 1,076 1 9 26

Delaware.............. 40 2 623 88 160 88 5 14 55

Maryland............ 173 9 2,073 402 813 401 5 19 49

Ohio..................... 662 3 8,083 243 2,710 240 0) 3 9

Indiana................ 490 4 3,322 43 923 40 1 1 4

Wisconsin............ 556 4 3,117 13 1,232 13 1 0) 1

Minnesota........... 681 1 3,099 167 1,009 167 « 5 17

Oregon.................

Washington.........

71 1 1,436 17 392 17 1 1 4

121 3 2,200 200 722 200 2 9 28

1 Less than 0.5 percent.

Detailed data: See Table 103, pp. 226-27.

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MUTUAL SAYINGS BANKS 55

Savings and time deposits of mutual savings banks reached a new 

high of $20 billion at the end of 1950. This represented a 4 percent increase during the year and a 30 percent expansion since December 31, 

1945. In contrast, savings and time deposits of commercial banks in 

New England and New York State have declined during each of the 

last two years, and at the end of 1950 were only 14 percent above the 

1945 level.

Assets of mutual savings banks totalled $22 billion at the end of 1950. 

Investments in real estate loans have almost doubled since 1945 and at 

the end of 1950 comprised over a third of their assets. Holdings of United 

States Government obligations declined 5 percent during 1950 to approximately their 1945 level, but still comprised nearly half of total 

assets. Investments in other securities were about a tenth of total assets; 

they decreased slightly during 1950 but were still almost twice their 

1945 level. The principal assets and liabilities of all mutual savings 

banks at the end of 1950 are compared in Table 30 with the amounts 

in ,1949 and in 1945.

Table 30. A s s e t s a n d L ia b ilit ie s o f A l l M u t u a l S a v in g s B a n k s in t h e 

U n ite d S ta te s , D e c e m b e r , 1950, 1949, a n d 1945

Asset, liability, or surplus 

and capital account item

Amount (in millions) Percentage change1

Dec. 30, 

1950

Dec. 31, 

1949

Dec. 31, 

1945

1949 to 

1950

1945 to 

1950

Total assets................................................. $22,385

797

$21,493

873

$17,021 4.2% 31.5%

Cash and funds due from banks.............. 609 -8.7 30.8

United States Government obligations.. 

Obligations of States and subdivisions... 

Other securities.........................................

10,868

88

2,253

8,137

242

11,428

86

2,308

6,578

220

10,673

89

1,166

-4.9

2.3

-2.4

1.8

-1.2

93.3

Real estate and other loans...................... 4,281

203

23.7 90.1

Miscellaneous assets................................. 9.9 19.1

Total liabilities and surplus accounts $22,385 $21,493 $17,021 4.2% 31.5%

Total deposits............................................ 20,032

106

19,293

78

15,385

43

3.8 30.2

Miscellaneous liabilities............................ 37.0 145.5

Surplus and capital accounts................... 2,247 2,122 1,593 5.9 41.1

Number of banks.......................................... 529 531 5422 -.4 -2.4

1 Computed from unrounded figures.

2 Includes 8 guaranty savings banks in New Hampshire. 

Detailed data for 1950: See Table 105, pp. 232-33.

The maturity distribution of United States Government obligations 

held by mutual savings banks at the end of each of the last three years 

is shown in Table 31.

Number, deposits, and assets of insured mutual savings banks.

During 1950 two mutual savings banks, both in Rhode Island, became 

insured by the Federal Deposit Insurance Corporation. This brought

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

to 194 the total number of mutual savings banks insured by the Corporation. At the end of 1950 these banks comprised 37 percent of all 

mutual savings banks and held 71 percent of their deposits.

Table 31. M aturities of U nited States G overnm ent Obligations H eld b y

A ll M utual Savings Ban k s, D ecem ber, 1948-1950

Amount (in millions) Percentage distribution

Type and maturity Dec. 30, 

1950

Dec. 31, 

1949

Dec. 31, 

1948

Dec. 30, 

1950

Dec. 31, 

1949

Dec. 31, 

1948

United States Government

obligations — total............ $10,868 $11,428 $11,476 100.0% 100.0% 100.0%

Non-marketable issues1........... 642 569 537 5.9 5.0 4.7

Marketable issues:

Treasury bills, certificates,

and notes2......................... 177 290 391 1.6 2.5 3.4

Bonds maturing in—*

5 years or less................... 637 1,120 948 5.9 9.8 8.2

5 to 10 years..................... 197 387 1,111 1.8 3.4 9.7

10 to 20 years................... 6,297 5,691 3,794 58.0 49.8 33.1

Over 20 years................... 2,917 3,370 4,695 26.8 29.5 40.9

Guaranteed securities.......... 1 1 (4) « M (4)

1 United States savings bonds, Treasury bonds (investment series A-1965), and depositary bonds.

a Treasury bills are generally issued with maturities of 91 days; certificates of indebtedness have 

maturities of approximately one year; and Treasury notes are issued with maturities of from one to 

five years.

3 Based upon number of years to final maturity.

4 Less than $500,000 or .05 percent.

The proportion of mutual savings banks insured by the Corporation 

varies widely among the States, as shown in Table 32. In eight of the 

seventeen States having mutual savings banks all of them are insured 

by the Corporation; in three States, on the contrary, none is insured 

by the Corporation. Accordingly, any comparison of the characteristics 

of insured mutual savings banks with noninsured mutual savings banks 

becomes largely a paraphrase of the features of mutual savings banks 

in different States, particularly in New York and Massachusetts. Of all 

deposits in insured mutual savings banks, New York State has 81 percent; on the other hand, Massachusetts has 58 percent of all deposits 

in noninsured mutual savings banks.

Earnings o f insured mutual savings banks. Earnings data are 

obtained by the Corporation for the insured mutual savings banks. 

During the last few years insured banks have accounted for around 

two-thirds of the total earnings of all mutual savings banks. Chart M 

shows the sources and disposition of the total income of insured mutual 

savings banks in 1950. Of the total income, 87 percent consisted of 

current operating earnings and 13 percent of profits on securities sold 

and recoveries on assets previously charged-off.

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MUTUAL SAYINGS BANKS 57

In 1950 total current operating earnings of insured mutual savings 

banks advanced to a new peak of $479 million. This was the ninth consecutive year of record earnings. Almost half of total earnings came from 

real estate mortgages. Income from United States Government obligations provided 38 percent of total earnings, and other securities supplied

10 percent.

Table 32. N u m b e r a n d D e p o s its o f I n s u r e d a n d N o n in s u r e d 

M u t u a l S a v in g s B a n k s, b y S ta te , D e c e m b e r 30, 1950

State

Number of mutual 

savings banks

Deposits in mutual 

savings banks 

(in millions)

Percentage of 

mutual savings 

banks insured 

on basis of—

Total Insured Noninsured Total Insured

banks

Noninsured

banks

Number Deposits

T ota l............................... 529 194 335 $20,031 $14,3201 $5,711i 37% 71%

Maine.......................... 32 6 26 238 27 211 19 11

New Hampshire......... 34 34 278 278

Vermont...................... 7 7 86 86 100 100

Massachusetts............ 189 189 3,312

267

1,336

3,312

193

1,297

Rhode Island..............

Connecticut................

8

72

2

3

6

69

74

39

25

4

28

3

New York................... 130 130 11,665

599

11,665

599

100 100

New Jersey................. 23 23 100 100

Pennsylvania.............. 7 7 1,077

88

1,077 100 100

Delaware..................... 2 2 88

Maryland.................... 9 2 7 402 83 319 22 21

Ohio............................. 3 3 243 243 100 100

Indiana........................ 4 3 1 43 31 12 75 71

Wisconsin.................... 4 3 1 13 13 (*) 75 97

Minnesota................... 1 1 167 167 100 100

Oregon......................... 1 1 17 17 100 100

Washington................. 3 3 200 200 100 100

1 Components do not necessarily add to the total because of rounding.

2 Less than $500,000.

Detailed data: See Table 103, pp. 226-27.

Income from real estate loans, which advanced 21 percent during the 

year, accounted for practically all of the growth in earnings. The larger 

volume of these loans was wholly responsible for this greater income, as 

the average rate of return has fallen steadily from 4.61 percent in 1945 

to 4.35 percent in 1950. This decline is due largely to an increased proportion of loans which are partially or fully guaranteed by the United States 

Government and carry lower interest rates than most other mortgage 

loans. During this period, the volume of real estate loans expanded 

74 percent and total income from this source increased 64 percent.

A slight decline in income from United States Government obligations 

during 1950 was offset by an increase in income from other securities. 

The average rate of income on all securities was 2.45 percent, approximately the same as in the preceding year.

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58 FEDERAL DEPOSIT INSURANCE CORPORATION

Chart M. S o u r c e s a n d D is p o s it io n o f T o t a l In com e, 

I n s u r e d M u t u a l S a v in g s B a n k s, 1950

Current operating expenses totaled $115 million in 1950, 11 percent 

greater than in the previous year. Wages and salaries of $56 million 

were the largest expense item. Officers received an average of $10,220 

while other employees averaged $3,057. These wages and salaries are 

higher than those received by commercial bank employees, due in part 

to the concentration of insured mutual savings banks in New York 

State, where wages and salaries exceed the national average.

Dividends paid to depositors increased 9 percent to $258 million. 

This was the largest amount, the highest rate, and the greatest percentage disbursement of net earnings since 1943, the earliest year for 

which comparable data are available. These dividend payments, similar 

to interest paid by other banks, afforded an average dividend to depositors of 1.84 percent on their time and savings deposits. This rate 

contrasts with the 0.94 percent interest paid on time and savings deposits 

in insured commercial banks.

Amounts and average rates of income received on loans and securities, 

and the dividends paid by insured mutual savings banks, from 1943 to 

1950 are given in Table 33.

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MUTUAL SAYINGS BANKS 59

Table 33. A m o u n t a n d A v e r a g e R a t e o f In com e R e c e iv e d a n d D iv id e n d s o n 

D e p o s its , I n s u r e d M u t u a l S a v in g s B a n k s, 1943-1950

Year

Income (in millions) 

from— Rate of income on— 1 Dividends paid 

on deposits Ratio of 

dividends 

to net 

current 

Loans Securities Loans Securities earnings

Amount

(in

millions)

Rate1

1950....................... $235 $229 4.35% 2.45% $258 1.84% 71.0%

1949....................... 194 228 4.37 2.44 236 1.79 70.9

1948....................... 169 220 4.43 2.38 196 1.57 64.8

1947....................... 153 209 4.51 2.34 181 1.53 64.3

1946....................... 144 194 4.58 2.35 160 1.47 60.3

1945....................... 143 160 4.61 2.31 143 1.49 58.5

1944....................... 141 128 4.53 2.38 132 1.60 63.3

1943....................... 139 101 4.44 2.54 118 1.65 63.6

1 Loans, securities, and deposits used in computing these rates are averages of figures reported 

at beginning, middle, and end of year.

Detailed data: See Tables 118 and 119, pp. 272-75.

Net current operating earnings in excess of dividends on deposits 

were $105 million. This amount was augmented by profits on sales 

of securities and by other recoveries and transfers from reserves of $74 

million. However, losses, charge-offs and transfers to reserves of $83 

million more than off-set these income items. Taxes computed on net 

income amounted to $5 million. These taxes were franchise taxes rather 

than true income taxes, for mutual savings banks are not subject to 

income tax. However, in six States the amount of the franchise tax is 

computed on the net income of the bank, and is therefore treated in 

earnings reports as an income tax.

After all adjustments in surplus and capital accounts, these accounts 

were $93 million greater at the year-end, amounting to $1,513 million. 

The ratio of surplus and capital accounts to total assets rose slightly 

to 9.5 percent.

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HISTORY OF LEGISLATION FOR THE GUARANTY OR 

INSURANCE OF BANK DEPOSITS

PART THREE

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Adoption of deposit insurance by the Congress in 1933 followed the 

prolonged banking crisis of the early 1930’s, which had culminated in 

thousands of bank failures and finally in the banking holiday of 1933. 

However, the insurance of bank deposits was not a novel idea conceived 

at that time nor was it an untried experiment.

The history of deposit insurance in the United States goes back a 

century and a quarter to the efforts of State legislatures to establish 

stable banking systems. A period of mushroom growth in banking had 

followed the dissolution of the first Bank of the United States in 1811; 

and this, together with the policies of the second Bank of the United 

States at the end of that decade, had led to many bank failures in the 

early years of the 1820’s. In the decades of the 1820’s and 1830’s banking 

codes were developed in many of the States. The primary aim of these 

codes was to provide conditions under which bank credit would not be 

subject to alternations of excessive expansion and contraction, with 

consequent periods of financial disturbance accompanied by numerous 

bank failures.

At that time the credit of commercial banks was extended both in 

the form of deposit accounts and in the form of circulating notes, or 

currency; and the latter formed a much larger part of the nation’s circulating medium than do the circulating notes issued now by the Treasury 

and the Federal Reserve banks. In the 1820’s, the total circulating 

medium was about equally divided between deposits and currency; 

and practically all of the currency, except for minor coins, consisted 

of circulating notes of commercial banks.

State systems of guaranty of bank obligations prior to creation

of the national banking system. In the discussions accompanying 

the development of banking codes, there was more agitation for special 

legislative provisions to assure the safety of bank credit in the form of 

circulating notes than in the form of deposits. In many sections of the 

country, currency issued by banks was predominantly used in making 

payments, and tended to circulate for long periods of time before being 

returned to the issuing bank. The use of deposits was mainly concentrated in the large cities, and checks or drafts on deposits were usually 

presented to the issuing bank promptly. In consequence, some of the 

plans for insurance of bank obligations covered only circulating notes, 

while others covered both circulating notes and deposits. The earliest 

plans covered both notes and deposits.

P r e d e c e ss o r s o f t h e F e d e r a l D e p o s it I n s u r a n c e L a w

63

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64 FEDERAL DEPOSIT INSURANCE CORPORATION

Insurance funds covering both circulating notes and deposits, or the 

mutual guaranty of bank obligations, were established by New York in 

1829, Vermont in 1831, Indiana in 1834, and Michigan in 1836. The 

New York plan was modified to cover circulating notes only in 1842, 

after the fund was found insufficient. Plans covering circulating notes 

only were adopted by Ohio in 1845 and Iowa in 1858.

These plans met with varying degrees of success. The Michigan plan 

applied only to a few banks and appears never to have been in actual 

operation. The New York and Vermont funds were partially successful, 

meeting nearly all claims against them and operating for about forty 

years, passing out of existence with the termination of the charters of 

all the participating banks. The plans in Indiana, Ohio, and Iowa applied 

to the offices of so-called State banks, the “ branches” of which were in 

reality independent banks subject to examination and supervision by 

State boards of control. All three were highly successful. They were 

discontinued only when the “ branches” converted into national banks 

following the prohibitive Federal tax in 1865 on circulating notes of 

State banks.

United States government guaranty of circulating banknotes.

In 1863 the National Bank Act provided for guaranty by the Federal 

Government of circulating notes issued by national banks.1 Federal 

Government guaranty of circulating banknotes has continued to the 

present time. Guaranty of national banknotes continued until 1935, 

when they were retired, and the notes of Federal Reserve banks have 

been guaranteed since establishment of the Federal Reserve System.

At the time when establishment of a national banking system was 

under consideration, circulating notes were, as in the 1820’s, about 

equal in amount to deposits. A large portion of the circulating notes in 

use in 1863, when the National Bank Act was adopted, had been issued 

by the Federal Government during the early years of the Civil War. 

The remaining circulating notes were issues of State banks. It was expected that most of these circulating notes would be replaced by notes 

of the new national banks.

Consequently, at the beginning of the national banking system it was 

expected that about one-half of the circulating medium would be covered 

by Federal government guaranty. This is about the same proportion of 

the circulating medium as was guaranteed or insured after establishment of the Federal Deposit Insurance Corporation in 1934. With the 

more rapid growth of currency than of deposits during World War II, 

the amount of deposits insured and currency guaranteed rose to about 

three-fifths of the circulating medium.

iEach bank which issued circulating notes was required to purchase United States Government bonds 

and deposit them with the Comptroller of the Currency as security for the circulating notes, which were 

printed under the directions of the Comptroller.

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PREDECESSORS OF FEDERAL DEPOSIT INSURANCE 65

Due to circumstances which apparently were not foreseen at the 

time of passage of the National Bank Act, the proportion of bank obligations guaranteed by the Federal Government under the provisions of 

that Act declined substantially in the 1870’s and 1880’s. Circulating 

notes did not expand as rapidly as the needs of the nation for circulating 

medium. Increased use was made of deposits transferable by check 

because of their convenience in making payments in distant places and 

their advantages with respect to safekeeping. In consequence, the problem of assuring the safety and value of bank deposits became as important 

a monetary problem as that of assuring the safety and value of banknotes.

Proposals for guaranty of deposits in national banks, 1886-1912.

By the middle of the 1880’s deposits had become over four-fifths of the 

circulating medium. The problem of protecting bank deposits was 

sufficiently acute to bring about the introduction in the Congress of 

bills providing for the guaranty of deposits. Four bills for this purpose 

were introduced in the House of Representatives in 1886. Fourteen 

more were introduced in the Congress prior to 1900.

In the 60th Congress, following the panic of 1907, about thirty proposals 

for deposit guaranty legislation were made. Most of these related to 

deposits in national banks but in a few cases other banks were also eligible 

for participation. In 1908 the National Monetary Commission was 

established and during the next five years only a few bills for deposit 

guaranty were introduced in Congress. It is believed that numerous 

proposals of this sort were made to the National Monetary Commission 

but no record of them has been located.

State deposit guaranty systems, 1907-1917. Proposals for the 

guaranty of bank deposits were not confined to the Federal Congress. In 

the 1890’s and the early years of the present century, many similar 

proposals were made in the legislatures of various States.

During the period 1907-1917 deposit guaranty funds were established 

in eight States: Oklahoma in 1907; Kansas, Nebraska, and Texas in 

1909; Mississippi in 1914; South Dakota in 1915; and North Dakota 

and Washington in 1917. By 1933 these funds had become insolvent 

or inoperative as a result of the large number of bank failures in the 1920’s 

and early 1930’s, and of relatively high failure rates among the larger 

banks.

Proposals for Federal deposit insurance, 1913-1932. During the 

period when establishment of the Federal Reserve System was under 

consideration proposals for deposit guaranty were considered by the 

banking and currency committees of the Congress. The Federal Reserve 

Act, as reported by the Senate Committee on Banking and Currency and 

as passed by the Senate in 1913, contained a provision placing part of 

the earnings of the Federal Reserve banks in a depositors’ guaranty

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66 FEDERAL DEPOSIT INSURANCE CORPORATION

fund. This was eliminated by a joint conference committee with the 

House. However, during the next few years several bills for the guaranty 

of bank deposits were introduced.

In the early 1930*s numerous proposals for deposit guaranty were 

made. More than twenty bills for this purpose were introduced in the 

72nd Congress, which opened in 1931. Early in 1932, hearings on one 

of these were held by a subcommittee of the Banking and Currency 

Committee of the House of Representatives. Following the hearings, 

the bill was reported favorably by the Committee, and it passed the 

House of Representatives in May 1932. The Banking and Currency 

Committee of the Senate, to which the bill was referred after its passage 

by the House, took no action on it before the 72nd Congress adjourned 

on March 4, 1933.

In the first session of the 73rd Congress, which opened on March 9, 

1933, several bills for deposit insurance were introduced. One of these 

proposals was incorporated in the Banking Act of 1933, as introduced 

in the House and Senate by the chairmen of their banking and currency 

committees.

D ep o sit In su ra n ce L e g isla tio n , 1933-1950

Federal legislation regarding deposit insurance. Most of the 

important features of the deposit insurance law, as enacted in June 1933, 

may be found in one or more of the bills previously introduced in the 

Congress. Some of the basic provisions were contained in the very earliest 

of the bills introduced.

One feature of the deposit insurance law of 1933 was provision for 

two distinct and separate plans of deposit insurance. One of these was a 

temporary plan which limited the protection to $2,500 for each depositor. 

The other was a permanent plan which provided 50 percent coverage 

on all deposits in excess of $50,000, 75 percent coverage of deposits 

exceeding $10,000 but not $50,000, and full coverage of all deposits up 

to $10,000 per depositor.

Both of the plans of deposit insurance embodied in the Banking Act 

of 1933 were amended. Coverage under the temporary plan was raised 

in 1934 to $5,000. The permanent plan was revised in 1935, before going 

into effect, with coverage reduced to $5,000. In 1950, coverage under 

the permanent plan was raised to $10,000. Table 34 gives the insurance 

coverage and sources of funds in the plans for deposit insurance approved 

by the Senate in 1913 and the House of Representatives in 1932, the 

two plans adopted in 1933, and the subsequent amendments.

State deposit insurance legislation, 1934-1943. Subsequent to 

creation of the Federal Deposit Insurance Corporation three States

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PREDECESSORS OF FEDERAL DEPOSIT INSURANCE 67

provided for establishment of deposit insurance funds for mutual savings 

banks. These were Massachusetts and New York in 1934, and Connecticut 

in 1943. The New York fund passed out of existence in 1943, when all the 

participating banks became insured by the Federal Deposit Insurance 

Corporation. The Massachusetts plan covers all mutual savings banks 

in the State; in Connecticut nine-tenths of the savings banks participate. 

In all three of these plans for mutual savings banks the insurance covered 

all deposits.

Table 34. D eposits I nsured and Sources of F unds in D eposit I nsurance

Plans E nacted b y C ongress or Passed b y One H ouse

Act Deposits covered1 Assessments on 

participating banks Other sources of funds

Federal Reserve 

Act as passed 

by Senate, Sept. 

19, 1913

All deposits None 25 percent of net earnings of Federal Reserve banks after dividends

Passed House of 

Representatives, 

May 27, 1932

All deposits Annually on banks members 

F. R. System not over 

$100,000,000 distributed 

in proportion to deposits 

and at same rate in participating banks not members F. R. System; if fund 

exceeds $500,000,000, excess may be refunded to 

banks contributing to last 

annual assessment

Initial levy on F. R. banks $150,- 

000,000 in proportion to surplus; 

45 percent of net earnings of F. R. 

banks after dividends; U. S. 

appropriation of amount received 

as franchise tax from F. R. banks. 

Federal Bank Liquidating Board 

empowered to borrow on assets|of 

insolvent national banks, and- to 

borrow a maximum of $500,- 

000,000 from the Reconstruction 

Finance Corporation

Banking Act of 

1933 (approved 

June 16) 

Permanent plan

100 percent of 

each depositor's 

account not exceeding $10,000, 

75 percent in excess of $10,000 

up to $50,000, 

and 50 percent 

of accounts in 

excess of $50,000

Capital stock subscription 

equal to 1/2 of 1 percent 

of outstanding deposits as 

of January 1, 1933; assessment equal to 1/4 of 

1 percent of total deposits 

when net debit balance of 

deposit insurance account 

equals or exceeds that 

amount

Capital stock subscription by F. R. 

banks equal to one-half of surplus 

on Jan. 1, 1933, and by U. S., 

$150,000,000. Federal Deposit 

Insurance Corporation empowered 

to issue its obligations not to 

exceed 3 times its capital and 

surplus

Banking Act of 

1933 (approved 

June 16) 

Temporary plan

$2,500 per depositor (amended 

June 16, 1934, 

to $5,000 per 

depositor, with 

option of $2,500 

or $5,000 for 

mutual savings 

banks)

1/4 of 1 percent of insured 

deposits, plus 1/4 of 1 

percent on call by the 

Corporation

As in permanent plan

Banking Act of 

1935 (approved 

August 23)

$5,000 per 

depositor

Annually 1/12 of 1 percent 

of average deposits

Capital stock subscription of U. S. 

Treasury and Federal Reserve 

banks ($289,000,000) transferred 

from temporary fund. Federal 

Deposit Insurance Corporation 

empowered to issue obligations not 

to exceed 3 times amount received 

by the Corporation in payment of 

its capital stock and in assessments on insured banks for 1936

Federal Deposit 

Insurance Act, 

1950 (approved 

Sept. 21)

$10,000 per 

depositor

Annually 1/12 of 1 percent 

of average deposits, with 

three-fifths of this amount 

adjusted for losses and 

operating costs to be returned to insured banks

Federal Deposit Insurance Corporation authorized to borrow from 

Treasury a maximum of $3,000,- 

000,000 at any one time

i In the Federal Reserve Act as passed by the Senate in 1913 deposit insurance applied to banks members 

of the Federal Reserve System. In the other acts, all members of the Federal Reserve System were required to 

participate, and applicant State banks were eligible for participation upon certification of solvency or sound 

condition by the State authority or upon examination and approval by the administrative Board.

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68 FEDERAL DEPOSIT INSURANCE CORPORATION

A n a ly sis o f C o n g ressio n al P rop osals f o r

D ep o sit G u a ra n ty o r Insu rance, 1886-1933

For the entire period from 1886 to the establishment of the Federal 

Deposit Insurance Corporation, 150 bills for the guaranty or insurance 

of bank deposits, including a few proposed amendments to banking 

bills under consideration, are known to have been introduced in the 

Congress. It is probable that the total number introduced was larger, 

for it has not been feasible to analyze the content of all bills relating 

to banking.

The foregoing figure does not include bills proposing the establishment 

and operation of banks of deposit by the government itself. Numerous 

proposals of this type have been introduced in the Congress, some 

calling for establishment of a Bank of the United States with branches 

scattered throughout the country, others for a series of banks owned 

by the government and operating under conditions similar to those 

imposed upon national banks, and others for expansion of the Postal 

Savings System to provide for receipt of deposits and their transfer by 

check at postoffices throughout the nation. The number of such proposals 

has not been tabulated. Several bills which would have authorized 

national banks to participate in State deposit guaranty plans are also 

excluded from the tabulation.

Another group of bills, similar in principle to deposit insurance, proposed to authorize national banks to issue circulating notes on the basis 

of various types of assets or as general obligations of the banks, with a 

guaranty or insurance fund to which all national banks would contribute. 

These proposals were numerous during the thirty years preceding establishment of the Federal Reserve System. The number of these bills has 

not been tabulated.

Of the 150 bills for the guaranty or insurance of bank deposits about 

one-half were original bills in the sense that the proposals embodied in 

them differed significantly from proposals embodied in other bills. The 

rest of the bills were duplicates or slightly amended versions of the 

original bills. These duplicates or amended bills include cases where 

identical bills were introduced in both Houses of the Congress on the 

same day or approximately the same time, cases where a member of 

the Congress introduced the same bill into successive Congresses, and 

cases where members of the Congress made slight revisions in their 

proposals and reintroduced them as new bills. However, it is not possible 

to draw a definite line of demarcation between original proposals and 

duplicate or revised bills. Many of the bills with definitely original provisions were similar to previously introduced bills with respect to other 

features. A digest of the provisions of each of the 150 bills is given on 

pages 80-101.

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CONGRESSIONAL PROPOSALS FOR DEPOSIT INSURANCE 69

Sponsors* The 150 bills were introduced by 79 different members of 

the Congress, of whom 22 were Senators and 57 members of the House 

of Representatives. The latter figure excludes two Representatives who 

also introduced bills as Senators. The sponsors of the bills came from 

30 States in all parts of the nation. Slightly over one-half of the sponsors 

were Democrats, and nearly one-half Republicans. Three were members 

of other parties.

Character of protection. Three general methods of providing protection for depositors were proposed in the bills. Of the 150 bills, 118 

provided for the establishment of an insurance fund, sometimes called 

a guaranty fund, out of which depositors’ losses would be paid; 22 provided for United States government guaranty of deposits; and 10 required 

banks to purchase surety bonds guaranteeing deposits in full. Table 35 

shows the number of each of these three types of bills introduced in each 

Congress.

Table 35, C o n g r e s s i o n a l B i l l s f o r G u a r a n t y o r I n s u r a n c e

o f B a n k D e p o s i t s , 1886-1933

NUMBER IN e a c h CONGRESS CLASSIFIED BY CHARACTER OF INSURANCE OR GUARANTY

Bills providing for—

Congress and years Total United

States

government

guaranty1

Insurance*

Surety 

bonds by 

fidelity 

company

T otal.................................................... 150 22 118 10

Congress 

49th, 1885-87............................... 4 4

50th, 1887-89............................... 1 1

51st. 1889-91....................................

52nd, 1891-93................................... 2 1 1

53rd, 1893-95................................... 5 2 3

54th, 1895-97................................... 1 1

55th, 1897-99................................... 5 2 3

56 th, 1899-01...................................

57th, 1901-03...............................

58th, 1903-05................................... 1 1

59th, 1905-07................................. 6 6

60th, 1907-09................................... 33 3 30

61st, 1909-11.................................... 7 1 6

62nd, 1911-13............................... 2 2

63rd, 1913-15................................... 8 8

64th, 1915-17............................... 3 3

65th, 1917-19................................... 5 3 2

66th, 1919-21............................... 3 3

67th, 1921-23....................... 3 3

68th, 1923-25................................. 6 5 1

69th, 1925-27................................... 6 2 3 1

70th, 1927-29................................... 6 1 2 3

71st, 1929-31.................................... 7 1 5 1

72nd, 1931-33................................... 21 3 153 3

73rd, 1933 (Mar.-May).................. 15 1 13 1

1 Includes four bills providing for an insurance fund to which government appropriations were to 

be made sufficient to maintain it at a specified minimum.

2 One fund for all participating banks, except in eight bills in which separate funds were to be established in the various Federal Reserve districts.

* Includes 1 bill in which cost was to be underwritten in part by the United States Government.

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70 FEDERAL DEPOSIT INSURANCE CORPORATION

Several of the proposals for insurance or guaranty of bank deposits 

were accompanied by other proposed currency and banking reforms. 

Such reforms related to methods and extent of currency issue, and to 

the methods and character of chartering, regulating, and examining 

banks.

Participant banks. Most of the bills for guaranty or insurance of bank 

deposits introduced prior to establishment of the Federal Reserve System 

in 1913 authorized participation of national banks only, though a few 

of them also covered deposits in State banks which met specified conditions. About one-half of the bills introduced subsequent to establishment 

of the Federal Reserve System provided for participation of all members 

of that system. Most of the remaining bills covered only national banks. 

Only a few provided for coverage of deposits in banks which were not 

members of the Federal Reserve System. In a few bills the insurance 

of deposits applied to cooperative banks, which were to be established, 

with limited dividends to stockholders and distribution of the remaining 

profits to depositors.

In nearly all the proposals participation was required of national 

banks, or of all banks members of the Federal Reserve System; such 

participation was optional in only a few of the proposals. In the cases in 

which deposit guaranty was made available to State banks not members 

of the Federal Reserve System, such participation was optional.

A more detailed classification and summary of the provisions of the 

various bills regarding participation in deposit insurance or guaranty 

is given in Table 36.

Administrative authority. Nearly two-thirds of the bills for deposit 

insurance or guaranty introduced prior to establishment of the Federal 

Reserve System provided for administration of the insurance or guaranty 

system by the Comptroller of the Currency. Most of the remaining bills 

introduced during that period provided for administration of the system 

by the Secretary of the Treasury. A few, however, named the Treasurer 

of the United States, and in two cases new boards were proposed.

In the case of bills for deposit insurance or guaranty introduced 

subsequent to establishment of the Federal Reserve System, about 

one-fourth provided for administration by the Comptroller of the Currency and nearly one-third by the Federal Reserve Board or by the 

Federal Reserve banks under supervision of the Board. However, nearly 

one-fifth of the bills introduced during this period provided for special 

administrative boards. In many of these the Comptroller of the Currency 

was to be a member of the proposed administrative board. In a few cases 

one of the members of the Federal Reserve Board was to be a member 

of the board in charge of the insurance system.

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CONGRESSIONAL PROPOSALS FOR DEPOSIT INSURANCE 71

Table 36. B a n k s R e q u ir e d o r P e r m it te d t o P a r t ic ip a t e in D e p o s it I n s u r a n c e 

o r G u a r a n t y P r o p o s a ls f o r F e d e r a l L e g is la t io n — 1886-1933

Banks participating

Total bills introduced................................................................................................................

National banks—tota l...............................................................................................................

All national banks......................................................................................................................

All national banks members Federal Reserve System1..........................................................

All national banks organized under the Act............................................................................

National banks in satisfactory condition.................................................................................

National banks found solvent by the Comptroller of the Currency.....................................

National banks accepting the A ct............................................................................................

All national banks in each Federal Reserve district in which fund is established by majority vote of the bank......................................................................................................

National and State banks—tota l............................................................................................

All national banks; applicant State banks solvent and properly managed..........................

All national banks; applicant State banks under conditions prescribed by the Comptroller

of the Currency..................................................................................................................

National and State banks accepting the A ct..........................................................................

Solvent national and State banks accepting terms of the Act..............................................

Any applicant national or State bank certified as sound by the Secretary of the Treasury 

or State banking authority, respectively, and approved by the Federal Bank Liquidating Board...................................................................................................................

All national banks; applicant savings banks agreeing to same regulations and examinations 

as national banks................................................................................................................

Federal Reserve member banks—total.................................................................................

All Federal Reserve member banks............................... .........................................................

All national banks and all State banks members Federal Reserve System1........................

All Federal Reserve member banks except those under a State deposit guaranty law... . 

All Federal Reserve member banks, with State banks members of State funds having

privilege of withdrawal......................................................................................................

All members Federal Reserve System in each district in which guaranty fund has reached

size prescribed by Board........................; .........................................................................

All Federal Reserve member banks “ deemed sound” or certified as to “ apparent solvency” by the Comptroller of the Currency...................................................................

Federal Reserve m ember banks and other banks..............................................................

All members Federal Reserve System; other applicant banks with total capital account 

of $25,000 or more which are certified to be in sound financial condition (or which

maintain a satisfactory condition and management).....................................................

All members Federal Reserve System; other applicant banks certified by State authority

to be in sound financial condition.....................................................................................

All members Federal Reserve System; other applicant banks upon approval by (or complying with requirements of) the Federal Reserve Board..............................................

All members Federal Reserve System; other applicant State banks approved by directors

of insurance fund................................................................................................................

All members Federal Reserve System; other applicant State banks certified to be solvent

by State authority and approved by directors of fund..................................................

All members Federal Reserve System; other applicant banks and building and loan 

associations found solvent2................................................................................................

All classes of banks....................................................................................................................

All banks organized under the Act3.........................................................................................

Any applicant bank organized under the Act3........................................................................

All national banks and all banks under State charter, including private banks.................

All Federal Reserve member banks, with all banks of deposit required to become members 

of the Federal Reserve System.........................................................................................

Cooperative banks to be organized........................................................................................

Cooperative national banks.......................................................................................................

Federal cooperative banks.........................................................................................................

Number

of bills

150

81

72

2

1

1

1

1

3

7

2

1

1

1

1

1

41

23

10

4

1

1

2

12

3

1

2

2

2

2

5

1

1

1

2

4

2

2

1 Membership in the Federal Reserve System is optional with national banks located in territories 

and possessions.

2 These bills also offered insurance to individual depositors in banks which did not apply for insurance.

3 These were general banking reform bills, under which all or most operating banks were expected 

to come under provisions of the proposed Act.

The various methods of administration proposed in the bills are 

shown in Table 37. 

Deposits and other liabilities protected. Four-fifths of the bills 

provided for insurance or guaranty of all, or nearly all, deposits. In

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72 FEDERAL DEPOSIT INSURANCE CORPORATION

some cases deposits otherwise secured, or deposits of officers, directors, 

and stockholders, were excluded from protection. In most of the bills 

providing full coverage of deposits, payment from the insurance or 

guaranty fund was to be made as soon as practicable; in a few bills, the 

payments from the fund were to cover the deposits not paid from the 

proceeds of liquidation. In most of the latter cases depositors would be 

required to wait until the completion of liquidation before they could 

obtain payments from the fund, though in a few cases advances to receivers or liquidating agents were authorized.

Table 37. A d m in is tr a tiv e A u t h o r i t y in P r o p o s a ls f o r F e d e r a l D e p o s it 

I n s u r a n c e o r G u a r a n t y L e g is la t io n , 1886-1933

Number of bills

Administrative authority Total

49th to 62nd 

Congresses1

63rd to 73rd 

Congresses3

Total number of bills................................................. 150 67 83

Comptroller of the Currency..................................... 64 44 20

Secretary of the Treasury (or Treasury

Department)........................................................ 33 20 13

Treasurer of the United States*................................ 7 1 6

Federal Reserve Board............................................... 20 20

Federal Reserve banks under supervision of Federal 

Reserve Board..................................................... 5 5

Agency to be created—total..................................... 20 2 18

Ministers of Finance (Board of 3 persons succeeding the Comptroller of the Currency)....... 2 2

Cooperative reserve bank.......................................... 2 2

Federal Farm Board................................................... 2 2

Bureau of Insurance to be organized by Treasury 

Department......................................................... 1 1

Federal Guaranty and Insurance Corporation........ 2 2

Federal Bank Liquidating Board.............................. 4 4

Federal Banking Commission.................................... 2 2

Guarantee Board........................................................ 2 2

Federal Bank Deposit Insurance Corporation........ 1 1

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

Not specified.................................................................

2

1

2

1

1 Prior to establishment of the Federal Reserve System.

* Subsequent to establishment of the Federal Reserve System, including proposed amendments 

to the Federal Reserve Act while that Act was under consideration.

8 Includes one bill with administration by the Treasurer of the United States and Comptroller of 

the Currency.

The bills which provided for only partial coverage of deposits contained a variety of limitations. Three provided coverage of 50 percent 

of deposits in excess of $50,000, 75 percent of deposits in excess of $10,000 

up to $50,000, and full coverage up to $10,000 for each depositor. Four 

limited the coverage to 50 percent of deposits; one to 25 percent of 

deposits; and six to 25 percent of deposits other than interest bearing 

time deposits and deposits otherwise secured. Three limited the protection 

to $5,000 for each depositor. Several bills limited the protection to noninterest bearing deposits of individuals and institutions or non-interest

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CONGRESSIONAL PROPOSALS FOR DEPOSIT INSURANCE 73

bearing deposits of individuals subject to check; and several others to 

deposits bearing not more than specified rates of interest. Two bills 

covered time deposits only and limited the protection to 75 percent. 

In a substantial number of bills all liabilities not otherwise secured 

were protected by the insurance or guaranty. In no bill did the protection 

extend to capital accounts. 

Further details regarding the protection to be afforded to depositors 

and other creditors are given in Table 38.

Table 38. D e p o s it s a n d O t h e r L ia b ilit ie s C o v e r e d b y I n s u r a n c e o r 

G u a r a n t y in P r o p o s a ls f o r F e d e r a l L e g is la t io n , 1886-1933

Liabilities covered

Total number of bills.................................................................................................................

Complete, or nearly complete, coverage of deposits, and also full or partial coverage of other liabilities—total...................................................................................

Deposits and other liabilities.....................................................................................................

All liabilities to creditors not covered by assets or not paid from proceeds of liquidation..

All liabilities, except circulation and United States deposits1...............................................

All liabilities, except circulation, United States deposits, and other secured public deposits

All depositors and creditors, except officers, directors, and stockholders............................

Deposits and circulating notes..................................................................................................

Deposits, circulating notes, and expenses of note redemption and bank examination3. .. 

Deposits and obligations to creditors, excluding creditors for borrowed money, not 

covered by proceeds of liquidation...................................................................................

Complete, or nearly complete, coverage of deposits—total............................................

All deposits3................................................................................................................................

All deposits except those of officers, directors, and stockholders.........................................

Deposits, except United States government...........................................................................

Deposits not otherwise secured.................................................................................................

Deposits not covered by assets or not paid from proceeds of liquidation.........................

Deposits not covered by assets, with interest at 3 percent...................................................

Individual deposits.....................................................................................................................

Depositors’ losses for which bank would be responsible in law.............................................

Partial coverage of deposits—total.........................................................................................

Deposits, except those for current account bearing over 2 percent interest, and time

deposits bearing over 4 percent interest..........................................................................

Deposits bearing not over 2 percent interest, in full; 2 to 3 percent interest, 95 percent 

coverage; 3 to 4 percent interest, 90 percent coverage; 4 to 5 percent interest, 80 

percent coverage; 5 to 6 percent interest, 70 percent coverage; over 6 percent, no

coverage...............................................................................................................................

Deposits not bearing interest....................................................................................................

Non-interest bearing deposits of individuals and institutions...............................................

Individual deposits non-interest bearing and subject to check.............................................

Full coverage up to $10,000 for each depositor; 75 percent of deposits in excess of $10,000

up to $50,000; 50 percent of deposits in excess of $50,000.............................................

50 percent of deposits................................................................................................................

25 percent of deposits................................................................................................................

25 percent of deposits, exclusive of interest bearing time deposits and deposits secured..

75 percent of time deposits.......................................................................................................

Deposits, maximum $5,000 for each depositor.......................................................................

Deposits, except those bearing 4 percent interest, maximum $5,000 for each depositor..

Number 

of bills

150

41

9

2

9

3 

8

2

1

7

79

46

2

2

4 

21

2

1

1

30

2

1

2

5 1

3

4 1

6

2

2

1

1 Includes 5 bills which provide for both a premium and reserve fund, with coverage reduced to 

90 percent if necessary to draw on reserve fund.

2 90 percent of loss paid from general guaranty fund, 10 percent assessed upon banks in redemption 

district in which failed bank was located.

8 Includes 3 bills with coverage of all “ just claims0 of depositors, and 3 bills providing for coverage 

as follows: deposit accounts up to $1,000 to be paid not less than 50 percent, those over $1,000 not less 

than 25 percent or $500 whicnever is greater within 60 days, balance within 1-1/2 years thereafter.

Assessments and other sources of funds. The means by which funds 

were to be obtained to meet the cost of deposit insurance or guaranty 

were diversified. Table 39 lists the various methods proposed.

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74 FEDERAL DEPOSIT INSURANCE CORPORATION

T ab le 39. Sources of F unds in P roposals for F ederal L egislation

R egarding I nsurance or G uaran ty of Ban k D eposits

Source of fund

Total number of bills.............................................................................................................

Cost m et solely by assessment on participating banks............................................. ..

Fixed periodic assessment on total or average deposits................................................... .

Initial or occasional assessment, or both, on total or average deposits......................... ..

Periodic arid also initial or occasional assessment on total or average deposits.............

Assessment on base other than total or average deposits1......................................... .......

Assessment on total or average deposits and on other base...................................... .......

Cost m et chiefly by assessment on banks, supplemented by funds from other

sources2..............................................................................................................................

Assessment on total or average deposits, and levy on Federal Reserve banks...................

Assessment on total or average deposits, and contribution from United States Government 

Assessment on total or average deposits, levy on Federal Reserve banks, and contribution

from United States Government......................................................................................

Assessment on base other than total or average deposits, and contribution from United

States Government.................................................................................................. .........

Assessment on base other than total or average deposits, levy on Federal Reserve banks, 

and contribution from United States Government.........................................................

Cost m et without assessment (or with supplemental assessment only) on participating banks..........................................................................................................

Assessment on property holders...............................................................................................

Assessment on bank customers, levy on Federal Reserve banks, and contribution from

United States Government...............................................................................................

Levy on Federal Reserve banks...............................................................................................

Contribution from United States Government............................................................. .........

Levy on Federal Reserve banks, and contribution from United States Government........

Cost m et solely or chiefly by surety bond premiums paid by banks................. .........

Surety bond requirements only................................................................................................

Surety bond requirements with portion of cost not exceeding 1 percent of deposits covered 

chargeable to depositor......................................................................................................

Number

of bills

150

71

321

16

15

7

38

9

13

7

7

2

311

5

7

14

4

10

9

1

1 Proposed assessment bases, other than total or average deposits, were of the following types: 

insured deposits, capital stock or capital and surplus, fixed sums, circulating notes (including use of 

existing tax on circulation as a deposit insurance premium), bonds deposited to secure circulation, 

redemption fund for circulating notes, and money paid to United States Treasury by national banking 

associations under existing laws.

2 The proposals for levy on the Federal Reserve banks were of two types: payment of part or all 

of the net earnings of the Federal Reserve banks into the guaranty fund; and an initial levy on the 

surplus of the Federal Reserve banks.

The proposals for Federal government contributions were of four types: an initial contribution; 

contributions of amounts received from Federal Reserve banks as franchise tax; contributions of Treasury 

receipts from payments by commercial banks such as the tax on circulating notes, unused redemption 

fund for circulating notes of closed banks, interest on government deposits, and on issues of national 

bank credit notes; and an appropriation sufficient to meet the cost in excess of other funds.

In nearly one-half of the bills the entire cost of deposit guaranty or 

insurance, and in about one-fourth of the bills the major part of the 

cost, was to be met by assessments upon the banks. Most of the bills 

which provided for meeting the cost wholly or chiefly by assessments 

on banks levied such assessments on average total deposits or on total 

deposits at specified dates. Several bills provided for assessments upon 

bases other than total deposits: time deposits, interest bearing deposits, 

guaranteed deposits, capital stock, capital and surplus, circulating notes, 

loans and discounts, and fixed sums.

The various proposed rates of assessment on deposits are given in 

Table 40. In this table rates of assessment applicable to periods shorter 

than a year have been converted to equivalent rates per year, in order 

to facilitate comparison; and certain special provisions, such as use of

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CONGRESSIONAL PROPOSALS FOR DEPOSIT INSURANCE 75

capital stock instead of deposits as a base of assessment in the case of 

new banks, have been omitted.

T ab le 40. R ates of A ssessment on D eposits in P roposals for

D eposit I nsurance

Rate of assessment Number 

of bills

Total number of bills.............................................................................................................

Not providing for assessments on deposits or depositors............................................

Providing for assessment on depositors (annual rates)1.................................................

1/4 of 1 percent......................................................................................................................

1/5 of 1 percent......................................................................................................................

Providing for assessments on insured deposits with insurance not covering all

deposits (annual rates)1...............................................................................................

1/8 of 1 percent (coverage 75 percent of time deposits)2...................................................

1/10 of 1 percent (coverage limited to $5,000)....................................................................

Bills providing for assessments on total or average deposits necessary to cover costs1

3/10 of 1 percent annually, additional 1/2 of 1 percent each when necessary....................

Initial 5 percent, additional sufficient to maintain fund at 5 percent3.................................

Initial 1 percent, additional sufficient to maintain fund at 1 percent4.................................

Initial 1 percent, annually 1/10 of 1 percent, and additional necessary to keep fund at

1 percent..........................................................................................................................

Initial 1/8 of 1 percent, additional necessary to maintain fund at $3 million................

Initial (in form of capital stock subscription) 1 /2 of 1 percent, additional 1 /4 of 1 percent

when necessary to meet debits to fund........................................................................

1 /4 of 1 percent annually subject to variation if necessary...............................................

Sufficient to pay claims (as determined by administrative authority)5...........................

Rate to be established by authority administering funds...................................................

Bills providing for fixed periodic assessments proportional to total or average 

deposits, or such assessments plus limited additional assessments (annual

rates)1...................................................................................................................................

1/10 of 1 percent (for first two years 1/2 of 1 percent), additional not over 1 percent if

fund is depleted...................................................................................................................

1 percent......................................................................................................................................

1 /2 of 1 percent, additional 1 percent if necessary................................................................

1 /2 of 1 percent, additional 1 /2 of 1 percent if necessary.....................................................

1 /20 of 1 percent, additional to total 1 percent if necessary?...............................................

1/2 of 1 percent (initial 1 percent)...........................................................................................

1/2 of 1 percent..........................................................................................................................

$100 million in proportion to deposits (initially equivalent to about 1/3 of 1 percent)8. ..

1/4 of 1 percent for reserve fund plus 1/10 of 1 percent for premium fund........................

1/4 of 1 percent..........................................................................................................................

1/4 of 1 percent on savings or interest-bearing deposits, and 1/10 of 1 percent on demand

deposits (for first two years 1 /2 percent of all deposits)................................................

1/5 of 1 percent9.........................................................................................................................

1/8 of 1 percent..........................................................................................................................

1/10 of 1 percent........................................................................................................................

1/10 of 1 percent, if necessary..................................................................................................

1/20 of 1 percent........................................................................................................................

1/50 of 1 percent........................................................................................................................

$100, additional 1/50 of 1 percent if necessary.......................................................................

150

56

4

2

2

5

2

3

171

1

68

7

1

1

1

3 

2

1

4

5 

9

1

4

3

18

2

1

4 1

1 Rates referred to here as “ annual” include equivalent annual rates in cases of semiannual or more 

frequent assessments. In the digest on pages 80-101 the rates are shown for the periods specified in 

the bills. In some of these bills levies were also made on the earnings or surplus of Federal Reserve banks; 

and in some the United States government made an initial appropriation for the insurance fund or 

appropriated to it certain government receipts from banks.

2 Banks not members of Federal Reserve System assessed twice the rate on member banks.

3 This bill also provided for assessments, at the same rate, on circulating notes, and for special 

assessments on banks in each note redemption district to cover 1/10 of losses in that district.

4 In two bills these provisions apply to Federal Reserve member banks, with rates applicable to

other banks to be established by the Federal Reserve Board.

6 In one of these bills, bonds deposited to secure circulating notes were to be pledged for security 

of deposits also, with assessments levied on the basis of deposits and deposited bonds if necessary.

8 Two of these bills provided for initial stock subscription of 1/5 of 1 percent of deposits and for 

coverage of individual depositors in nonparticipating banks at premium rates to be determined by the 

administrative authority. Another bill provided for a “ reasonable” rate of assessment, with the Federal 

government contributing to the fund if necessary.

7 In these bills State and United States funds otherwise secured were exempted from assessment.

8 In one of these bills the rate on banks not members of the Federal Reserve System was twice the 

rate on member banks; in two of the bills initial assessment was twice the annual amount.

9 One of these bills required an initial deposit in trust of United States Government securities equal 

to 2 percent of deposits.

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76 FEDERAL DEPOSIT INSURANCE CORPORATION

The frequency with which assessments were to be collected, and the 

rates of assessment, show wide variation. The specific rates range from 

1/50 of 1 percent to 1/2 of 1 percent per year, while in a number of cases 

assessments were to be adjusted to meet the total cost. The most common 

rate was 1/10 of 1 percent. Many of the bills provided for special initial 

assessments, or for assessments as needed in addition to those collected 

periodically.

In a number of bills assessments upon the banks were supplemented 

by appropriations from the United States government, or, particularly 

in the bills introduced in the more recent years, by levies upon the 

earnings or surplus of the Federal Reserve banks. In a few bills the only 

provision for meeting the cost of insurance or guaranty was an allocation 

for this purpose of part or all of the earnings of the Federal Reserve 

banks, and in several cases the cost was to be met solely or chiefly by 

the United States government. In the cases where the insurance or 

guaranty was in the form of purchase of surety bonds, the cost of such 

bonds was to be borne by the banks.

In many of the bills a maximum was placed upon the accumulation 

of funds by the insurance or guaranty system. In a few bills assessment 

rates were to be adjusted by the administrative authority and required 

to be sufficient to meet all losses to depositors or to maintain the fund 

at a given size. In some bills, the fund was authorized to borrow if necessary; and in others, to issue certificates to unpaid depositors if the fund 

was depleted.

Changes in bank regulation or supervision. A substantial proportion of the bills providing for deposit insurance or guaranty also provided 

for significant changes in the regulation or supervision of banks. These 

changes are summarized in Table 41.

In some of the bills insurance or guaranty of deposits was only a part 

of comprehensive plans for currency and bank reform. In several cases 

deposits of banks were limited to 10 times capital, or 10 times capital 

and surplus; in others, minimum capital requirements were made more 

stringent. A number of bills contained provisions for the issue of emergency currency or for a more elastic currency, a few authorized the 

United States Treasury to make advances to banks under specified 

conditions, and a few made changes in reserve requirements. More 

frequent bank examinations were specified in several of the bills, and 

in some of the bills Federal bank supervisory authorities were given 

more authority regarding chartering of banks or the issue and enforcement of regulations regarding banking practices. Maximum interest 

rates on deposits, and limitations or restrictions on the payment of 

dividends, were embodied in several bills. In a few bills repeal of the 

double liability of stockholders was proposed.

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CONGRESSIONAL PROPOSALS FOR DEPOSIT INSURANCE 77

T a b le 41. Sig n if ic a n t C h a n g e s in B a n k R e g u l a t io n o r S u p e r v isio n

A cc o m p a n y in g P ro po sa ls fo r F e d e r a l I n su r a n c e o r

G u a r a n t y o f D e po sit s

Character of proposed change Number

of bills

Currency issue and central banking

Circulating notes of national banks to be issued upon security of specified types of loans

and securities and to be obligations of the United States..............................................

Changes made in conditions of issue of bank notes, eliminating required deposit of United

States government bonds...................................................................................................

Treasury notes in amount equal to the insurance fund to be issued and used for government expenses.............................................................................................................

Issue of currency by any financial institution or any number of persons depositing United

States bonds and conforming to the A ct..........................................................................

United States Treasury authorized to make advances to persons or corporations in the

form of circulating notes, on approved security..............................................................

Issue of emergency currency if necessary to pay certificates of deposit issued to depositors

of closed banks....................................................................................................................

Comptroller of the Currency authorized to make loans to banks when deposits are 

suddenly withdrawn or losses exceed accumulated surplus and to appoint manager

of borrowing bank.........................................................................................................

Increased rediscount facilities.............................................................................................

Federal Reserve banks to be owned by United States.....................................................

Reserve requirements

Reserves required of banks insuring their deposits one-half that specified for other banks.. 

Changes to be made in reserve requirements.................................................................... .

Capital requirements

Deposits of banks covered not to exceed 10 times capital................................................

Deposits of banks covered not to exceed 10 times capital and surplus...........................

Larger minimum capital...................................................................................................... .

Elimination of double liability of stockholders...................................................................

Capital of banks to consist of coin or bullion, United States bonds, State bonds if above 

par, and real estate mortgaged to United States........................................................

Interest on deposits

Interest on demand deposits (except correspondent balances) prohibited and on savings 

and time deposits limited to 2-3/4 percent per year or to maximum established by

Federal Reserve Board.......................................................................................................

More rigorous restrictions on payment of dividends; interest on deposits limited to 4 percent per year.......................................................................................................................

Interest on time deposits limited to 3-1/2 percent and on demand deposits to 1 percent

per year............................................................................................................................

Interest on time or savings deposits limited to 3 percent per year..................................

Interest on tim e or savings deposits lim ited to 2 -3 /4 percent per y e a r .................................

Maximum interest on deposits, 2 percent per year............................................................

Maximum interest on deposits, 3 percent per year............................................................

Maximum interest on deposits, 4 percent for one year or longer, less on deposits for

shorter periods, none on demand deposits...................................................................

Maximum interest on deposits, 5 percent...........................................................................

Maximum interest on deposits, half of legal rate in respective States.............................

Interest on deposits prohibited except 2 percent on government deposits.......................

Bank examinations and reports

Banks to be examined monthly, never over twice in year by same examiner................

Banks to be examined every two months, never twice in year by same examiner.......

Banks to be examined four times a year by two different examiners.............................

All banks covered to be examined twice a year by examiners of the Corporation administering the fund...........................................................................................................

Comptroller of the Currency or Federal Reserve Board to examine all banks covered

at least twice a year...........................................................................................................

Banks to report their condition weekly to the Comptroller of the Currency......................

Equal right to examine bank given to surety companies furnishing bonds as by Comptroller

of the Currency and national bank examiners................................................................

Insured banks not members of Federal Reserve System to be examined by Federal Reserve 

Board................................................................................................................................

Bank management and banking practices

Governors of the Federal Reserve banks and Comptroller of the Currency given power 

to suspend bank officials for violations of laws or regulations or repeated warnings

against unsound practices..................................................................................................

Each director and officer of a failed bank to be imprisoned for one to ten years unless it

is proved failure is not due to violation of law................................................................

Restrictions on salary increases, new loans and investments, and dividends when bank

surplus below amount reported or government loan to bank outstanding...............

Limitation on loans................................................................................................................ . .

Federal Banking Commission created and authorized to make rules and regulations, not 

inconsistent with Federal Reserve and National Banking Acts, deemed necessary

properly to regulate and control bank practices.............................................................

Restrictions on ana regulation of affiliates, loans to officers, and loans upon stock and 

bond collateral....................................................................................................................

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78 FEDERAL DEPOSIT INSURANCE CORPORATION

T a b le 41. S ig n ific a n t C h a n g e s in B a n k R e g u la t i o n o r S u p e r v is io n 

A cco m p a n y in g P r o p o s a ls f o r F e d e r a l I n s u r a n c e o r 

G u a r a n t y o f D e p o s its — Continued

Character of proposed change Number 

of bills

Bank management and banking practices—Continued

Interest on loans to be 3 percent, of which 1 percent to be paid to the United States and

2 percent to the county......................................................................................................

Earnings in excess of dividends and specified additions to surplus distributed among

depositors.............................................................................................................................

Superintendent of loan department appointed by President of United States....................

Officer of each bank, nominated by directors and appointed by Secretary of Treasury, 

to be responsible for control and management of the bank..........................................

Bank chartering, ownership, and supervision

Comptroller of the Currency authorized to refuse new national charters where banking

facilities are already sufficient...........................................................................................

Nonmembers Federal Reserve System may be required to withdraw from insurance if they 

fail to furnish annually certificates by State authority of their financial condition..

Private banks permitted to operate under national banking law.........................................

National banks to be organized, and county comptrollers elected by vote of people in 

each county having a population of 5,000 or more; post offices in smaller communities

to receive deposits for such banks....................................................................................

Formation of cooperative banks by not less than 200 persons, with minimum capital 

of $25,000.........................................................................................................................

The present system of deposit insurance is the joint result of Congressional action in 1933, subsequent Federal legislation, and the administrative experience of the Federal Deposit Insurance Corporation. 

However, its most essential features—a premium or assessment on the 

basis of deposits, careful examination of insured banks, maintenance 

of the capital funds of banks in proportion to their liabilities or total 

assets, assurance of adequate emergency credit to banks in difficulties, 

avoidance by banks of unduly risky loans and investments and other 

unsafe or unsound banking practices, and prompt action to protect 

depositors in banks which become involved in financial difficulties— 

were contained in earlier legislative proposals and former systems of 

guaranty of bank obligations used as circulating medium. The roots of 

the present system of deposit insurance go back more than a century 

prior to establishment of the Federal Deposit Insurance Corporation 

in 1933.

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D ig e s t o f B i l l s f o r I n s u r a n c e o r G u a r a n t y o f B a n k D e p o s it s I n t r o d u c e d 

I n t o C o n g r e s s , 1886-1933

Date» Congress and bill 

number number, and author

Character of protection, 

banks participating, and 

administrative authority

Liabilities covered

1 Jan. 11, 1886; 49th HR 3740 

Price, W.T. (Wis., Rep.)

Insurance; National banks; 

Comptroller of the Currency

Proved claims adjusted for mutual 

indebtedness

2 Feb. 1, 1886; 49th HR 5023 

Sawyer, J.E. (N.Y., Rep.)

Insurance; National banks; 

Treasurer of U.S. and

Comptroller of the Currency

Deposits

3 Feb. 15, 1886; 49th HR 5683 

Hutton, J.E. (Mo., Dem)

Insurance; National banks; 

Comptroller of the Currency

Proved claims adjusted for mutual 

indebtedness

4 Mar. 1, 1886; 49th HR 6240 

Brumm, C.N. (Penn., Rep.)

Insurance; National banks; 

Comptroller of the Currency

Proved claims adjusted for mutual 

indebtedness

5 Jan. 4, 1888; 50th HR 1797 

Brumm, C.N. (Penn., Rep.)

Same as 4 Same as 4

6 Dec. 10, 1891; 52nd S 581 

Hiscock, F. (N.Y., Dem.)

Insurance; National banks; 

Secretary of the Treasury

Deposits not paid from assets

7 Mar. 23, 1892; 52nd HR 7494 

Clover, B.H. (Kans., 

Farmers’ Alliance)

U.S. guaranty; National 

banks organized under 

the Act;

Comptroller of the Currency

Currency and deposits

8 Aug. 14, 1893; 53rd S 289 

Hunton, E. (Va., Dem.)

U.S. guaranty; National 

banks;

Secretary of the Treasury

Deposits thereafter made, except 

of officers and stockholders

9 Sept. 9, 1893; 53rd HR 1951 

Babcock, J.W. (Wis., Rep.)

Insurance; National banks; 

Secretary of the Treasury

Depositors

10 Sept. 22, 1893; 53rd HR 3378 

Bryan, Wm. J. (Neb., Dem.)

Insurance; National banks; 

Comptroller of the Currency

Depositors and creditors 

officers, directors, and 

holders

except

stock11 Mar. 26, 1894; 53rd HR 6438 

Mercer, D.H. (Neb., Rep.)

Insurance; National banks; 

Secretary of the Treasury

Losses to depositors in 

placed in receivership

banks

12 Jan. 3, 1895; 53rd S 2492 

George, J.Z. (Miss., Dem.)

U.S. guaranty; National 

banks; Secretary of the 

Treasury and Comptroller 

of the Currency

Deposits and circulating notes

13 Jan. 5, 1897; 54th S 3478 

Peffer, W.A. (Kans., 

Populist)

U.S. guaranty; National 

banks;

Comptroller of the Currency

Losses to depositors for which 

bank would be responsible in 

law

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DEPOSIT INSURANCE PROPOSALS 81

D ig e s t o f B il l s f o r I n s u r a n c e o r G u a r a n t y o f B a n k D e p o s it s I n t r o d u c e d

I n t o C o n g r e s s , 1886-1933— Continued

Assessments and other sources of funds Other provisions

Identifying

number

Existing duty on circulating notes (1 percent per year); 

unused redemption fund for notes of banks closed 

five years or more; maximum fund $20,000,000

1

Semi-annually 1/10 of 1 percent of average deposits; 

maximum fund $20,000,000

2

Semi-annually 1/20 of 1 percent of average monthly 

deposits, in lieu of all existing taxes; unused redemption fund for notes of banks closed five years or 

more; maximum fund $20,000,000

3

Semi-annually 1/20 of 1 percent of average deposits, 

in lieu of existing taxes, unused redemption fund 

of banks closed five years or more; maximum 

fund $20,000,000

Same as 4 6

Annually 1/10 of 1 percent of deposits, until fund 

sufficient in discretion of Secretary of the Treasury 

to guarantee deposits and reimburse government; 

initial U.S. appropriation $20,000,000 from tax on 

circulating notes and unused redemption fund

Circulating notes, to be obligations of the 

United States, to be issued upon deposit of 

specified types of loans and securities

6

Reimbursement of government, with interest at 1 

percent, by assessments of 2-1/2 percent per year 

upon property owners in counties where losses 

occur

National banks to be organized, upon vote 

of the people, in each county having population of 5,000 or more; county comptroller 

to be elected by the people; post offices in 

smaller communities to receive deposits for 

such banks; maximum interest on deposits 

2 percent; interest on loans to be 3 percent, 

of which 1 percent to be paid to the U.S. 

and 2 percent to the county

7

Annually 1/4 of 1 percent of all deposits, payable 

m onthly on deposits of that m onth

8

All money paid to U.S. Treasury by national banking 

associations except that appropriated for expenses 

of the Bureau of the Currency

Banks to be examined every two months, no 

two examinations in any year by the same 

examiner

9

Annually 1/4 of 1 percent of average deposits during 

October-December; maximum fund $10,000,000

Treasury notes to be issued in amount equal 

to special fund, and used for government 

expenses, to provide against contraction of 

the currency

10

At end of fiscal year, all moneys paid to U.S. Treasury 

under existing laws regarding banking associations, 

except amounts appropriated to pay expenses of 

the Bureau of Currency and those incurred under 

this Act

Maximum interest on deposits 5 percent; 

banks to be examined four times each year 

by two different examiners

11

U.S. bonds deposited to secure bank notes to serve 

also to secure deposits; if insufficient, necessary 

assessment on amount of deposited bonds and 

deposits

Private banks as well as associations permitted to operate under the national banking law

12

Necessary Treasury appropriation Capital of banks to consist of coin or bullion, 

U.S. bonds, State bonds if above par, and 

real estate mortgaged to U.S.; superintendent of loan department appointed by 

President of U.S.; banks to be examined 

monthly, and by the same examiner not 

over twice yearly; maximum interest 4 

percent on deposits for one year or longer, 

less on deposits for shorter periods, none 

on demand deposits

13

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82 FEDERAL DEPOSIT INSURANCE CORPORATION

D ig e s t o f B i l l s f o r I n s u r a n c e o r G u a r a n t y o f B a n k D e p o s its I n t r o d u c e d 

I n t o C o n g r e s s , 1886-1933—Continued

Date, Congress and bill 

number number, and author

Character of protection, 

banks participating, and 

administrative authority

Liabilities covered

14 Mar. 15, 1897; 55th HR 50 

Fowler, C.N. (N.J., Rep.)

Insurance; any bank organized under the Act; 

Ministers of Finance (three)

Depositors, all just claims

15 July 15, 1897; 55th HR 3820 

Lewis, J.H. (Wash., Dem.)

U.S. guaranty; National 

banks;

Secretary of the Treasury

Deposits, banks to issue to depositors certificates payable on 

demand at U.S. Treasury

16 July 15, 1897; 55th HR 3822 

Jenkins, J. (Wis., Rep.)

U.S. guaranty; National 

banks;

Comptroller of the Currency

General deposits

17 Jan. 5, 1898; 55th HR 5494 

Jenkins, J. (Wis., Rep.)

Insurance; National banks in 

satisfactory condition upon 

examination; Secretary of 

the Treasury

Claims satisfactorily proved

18 Feb. 1, 1898; 55th HR 7604 

Fowler, C.N. (N.J., Rep.)

Same as 14, except insurance 

optional with bank

Same as 14

19 Feb. 27, 1905; 58th HR 19155 

Webber, A.R. (Ohio, Rep.)

U.S. guaranty; National 

banks found solvent by 

Comptroller of the Currency; 

Comptroller of the Currency

All deposits, except those of 

officers and shareholders

20 Dec. 4, 1905; 59th HR 236 

Bates, A.L. (Penn., Rep.)

Insurance; National banks; 

Comptroller of the Currency

Deposits not covered by proceeds 

of liquidation

21 Jan. 19, 1906; 59th HR 12592 

Bates, A.L. (Penn., Rep.)

Same as 20 Same as 20

22 Feb. 14, 1906; 59th HR 14902 

Bates, A.L. (Penn., Rep.)

Same as 20 Same as 20

23 Mar. 5, 1906; 59th HR 16225 

Gronna, A.J. (N.D., Rep.)

Insurance; National banks, 

applicant State banks solvent and properly managed; 

Comptroller of the Currency

Deposits not covered by assets, 

with interest at 3 percent

24 Dec. 13, 1906; 59th HR 22336 

Underwood, O.W. (Ala., Dem.)

Insurance; National banks; 

Comptroller of the Currency

Deposits and liabilities to creditors 

not paid from proceeds of 

liquidation

25 Dec. 17, 1906; 59th HR 22673 

Bates, A.L. (Penn., Rep.)

Same as 20 Deposits and obligations to creditors, excluding creditors for 

borrowed money, not covered 

by proceeds of liquidation; payment not later than two years 

after failure

26 Dec. 2, 1907; 60th HR 44 

Candler, E.S. (Miss., Dem.)

Insurance; National banks; 

Comptroller of the Currency

Depositors and creditors, except 

officers, directors, and stockholders

27 Dec. 2, 1907; 60th HR 159 

Norris, G.W. (Neb., Rep.)

Insurance; National banks; 

Secretary of the Treasury

Deposits not otherwise secured

28 Dec. 2, 1907; 60th HR 354 

Sheppard, M. (Texas, Dem.)

Insurance; National banks; 

Comptroller of the Currency

Balance of claims of depositors 

and creditors, except for borrowed money, after partial 

payments from liquidation, not 

later than two years after 

failure

29 Dec. 2, 1907; 60th HR 356 

Russell, G.J. (Texas, Dem.)

Insurance; National banks; 

Comptroller of the Currency

Depositors and creditors, except 

officers, directors, and stockholders

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DEPOSIT INSURANCE PROPOSALS 83

D ig e s t o f B il l s f o r I n s u r a n c e o r G u a r a n t y o f B a n k D e p o s it s I n t r o d u c e d

I n t o C o n g r e s s , 1886-1933— Continued

Assessments and other sources of, funds

Annually 1 /2 of 1 percent (initial 1 percent) of average 

balance of deposits of preceding fiscal year; maximum fund 5 percent

Semi-annually 1 /4 of 1 percent of all deposits

Necessary Treasury appropriation in form of loans 

at 10 percent interest to bank having a run by 

depositors, with all paper owned by bank as 

security

Semi-annually 1/10 of 1 percent of average daily 

deposits and 1-1/2 percent of average amount of 

redemption fund for circulating notes

Annually 1/2 of 1 percent (initial 1 percent) of average 

balance of deposits of preceding fiscal year; annual 

assessment to be reduced to 1 /8 of 1 percent when 

fund exceeds 3 percent

Annually maximum of 1/10 of 1 percent of all deposits; maximum fund 1/10 of 1 percent; U.S. 

appropriations to meet any deficiency

Annually $100; maximum fund $6,000,000; if fund 

insufficient, not over two assessments per year of 

1/100 of 1 percent of deposits

Annually $100; maximum fund $6,000,000

Annually from $100 to $250 depending upon amount 

of capital; maximum fund $6,000,000

Annually 1 percent of capital and surplus

Annually 1/50 of 1 percent of average deposits of 

every character; maximum fund $10,000,000

Same as 22

Annually 1/4 of 1 percent of average deposits; maximum fund $10,000,000

Annually 1/5 of 1 percent of average deposits (new 

banks 1/5 of 1 percent of capital stock); maximum 

fund, 2 percent of average deposits of each bank

Annually 1/10 of 1 percent of average deposits; maximum fund $36,000,000

IdentiOther provisions fying

number

Part of general banking and currency reform Iff 14 

bill providing for currency issue and deposit 

insurance by any financial institution or 

any number of persons depositing U.S. 

bonds and conforming to Act

15

Banks to be examined monthly 16

17

Part’ of general banking and currency reform 18 

bill (same as 14); required reserves of banks 

insuring their deposits one-half of that 

specified for other banks

19

Maximum interest on deposits 3 percent 20

Same as 20 21

22

23

24

25

26

27

Deposits not to exceed 10 times capital 28

Annually 1/4 of 1 percent of average deposits; maximum fund $10,000,000

29

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84 FEDERAL DEPOSIT INSURANCE CORPORATION

D igest of B ills for I nsurance or G u aranty of B a n k D eposits I ntroduced

I nto C ongress, 1886-1933—Continued

Identifying

number

Date, Congress and bill 

number, and author

Character of protection, 

banks participating, and 

administrative authority

Liabilities covered

30 Dec. 2, 1907; 60th HR 456 

Gronna, A.J. (N.D., Rep.)

Same as 23 Same as 23

31 Dec. 2, 1907; 60th HR 531 

Underwood, O.W. (Ala., Dem.)

Same as 24 Same as 24

32 Dec. 2, 1907; 60th HR 3866 

Bates, A.L. (Penn., Rep.)

Same as 25 Same as 25

33 Dec. 16, 1907; 60th HR 9153 

Campbell, P.P. (Kans., Rep.)

U.S. guaranty; National 

banks;

Secretary of the Treasury

Deposits

34 Dec. 16, 1907; 60th HR 9236 

Reeder, W.A. (Kans., Rep.)

Insurance; National banks; 

Secretary of the Treasury

Deposits

35 Dec. 19, 1907; 60th HR 10526 

Chaney, J.C. (Ind., Rep.)

Insurance; National banks; 

Secretary of the Treasury

Individual depositors

36 Dec. 19, 1907; 60th HR 10547 

Underwood, O.W. (Ala., Dem.)

Insurance; National banks; 

Comptroller of the Currency

Depositors and creditors

37 Dec. 21, 1907; 60th S 2954 

Raynor, I. (Md., Dem.), for 

Owen, R.L. (Okla., Dem.)

Insurance; National banks; 

Comptroller of the Currency

Depositors

38 Jan. 6, 1908; 60th HR 11780 

Hinshaw, E.H. (Neb., Rep.)

Insurance; National banks; 

Comptroller of the Currency

Depositors and creditors

39 Jan. 6, 1908; 60th HR 11804 

DeArmond, D.A. (Mo., Dem.)

Insurance; National banks; 

Secretary of the Treasury

Deposits

40 Jan. 7, 1908; 60th S 3028 

Culberson, C.A. (Texas, Dem.)

Insurance; National banks 

accepting the Act; 

Comptroller of the Currency

Individual deposits non-interest 

bearing and subject to check

41 Jan. 7, 1908; 60th S 3187 

Brown, N. (Neb., Rep.)

Insurance; National banks; 

Secretary of the Treasury

Deposits not otherwise secured

42 Jan. 8, 1908; 60th HR 12655 

Fulton, E.L. (Okla., Dem.)

Insurance; National banks; 

Secretary of the Treasury

Deposits not paid from proceeds 

of liquidation

43 Jan. 8, 1908; 60th HR 12677 

Fowler, C.N. (N.J., Rep.) 

(Reported by Banking and 

Currency Committee, Feb. 29, 

1908)

Insurance; National banks; 

Comptroller of the Currency

Deposits and circulating notes, 

and expenses of note redemption 

and bank examination; 1/10 of 

the loss from each failure assessed upon banks in that note 

redemption district

44 Jan. 8, 1908; 60th HR 12680 

Davidson, J.H. (Wis., Rep.)

Insurance; National banks, 

savings banks agreeing to 

same regulations and examinations as national banks;

Comptroller of the Currency

Deposits with interest not over 

2 percent, in full; with interest 

2 to 3 percent, 95 percent; with 

interest 3 to 4 percent, 90 percent; interest 4 to 5 percent, 

80 percent; interest 5 to 6 percent, 70 percent; interest over 

6 percent, none

45 Jan. 8, 1908; 60th HR 12682 

McHenry, J.G. (Penn., Dem.)

U.S. guaranty; solvent National and State banks accepting terms of Act; 

Comptroller of the Currency

Deposits

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Federal Reserve Bank of St. Louis
DEPOSIT INSURANCE PROPOSALS 85

D ig e s t o f B il l s f o r I n s u r a n c e o r G u a r a n t y o f B a n k D e p o s it s I n t r o d u c e d

I n t o C o n g r e s s , 1886-1933—Continued

Assessments and other sources of funds Other provisions

]

Identifying

number

Annually 1/50 of 1 percent of average deposits; 

assessments to be suspended when Comptroller 

deems fund sufficient

30

31

Same as 24

Annually $100 to $400 depending upon amount of 

capital; maximum fund $6,000,000

32

Annually 1/10 of 1 percent of average deposits Officers of each bank, nominated by directors 

and appointed by Secretary of the Treasury 

to be responsible for control and management of the bank and to report condition 

weekly to the Comptroller of the Currency

33

Interest paid by banks on all U.S. government deposits, rate not over 2 percent per year; maximum 

fund $25,000,000

34

Annually 1/10 of 1 percent of average deposits of 

individuals; maximum fund $10,000,000

35

Annually 1/10 of 1 percent of average deposits of 

every character; maximum fund $10,000,000

Deposits not to exceed 10 times capital and 

surplus; payment of interest on deposits 

prohibited, except 2 percent per year on 

government deposits

36

Sufficient to pay depositors in full, to be fixed by the 

Comptroller of the Currency; interest received on 

“ special circulation fund”

U.S. Treasury authorized to issue $100,- 

000,000 in circulating notes, to be kept as 

a “ special circulation fund” and advanced 

to any person or corporation, at 6 to 8 percent interest, on approved security

37

Annually 1/20 of 1 percent of average deposits; 

maximum fund $10,000,000

Deposits not to exceed 10 times capital and 

surplus

38

Annually 1 /8 of 1 percent of total deposits 39

Necessary assessment, whenever a bank fails, prorated according to capital and surplus

40

Annually 1/10 of 1 percent of average deposits; maximum fund 2 percent of deposits of each bank41

Initial assessment 1/8 of 1 percent of average daily 

individual deposits (new banks 1 percent of capital); 

additional assessments to maintain fund at 

$3,000,000

Deposits not to exceed 10 times capital and 

surplus

42

Initial assessment 5 percent of all deposits and note 

issues; semi-annual assessments to maintain this 

amount; special assessments upon banks in note 

redemption districts to cover 1/10 of losses in such 

districts; interest paid by national banks on 

government deposits and interest on circulating 

notes, each at 2 percent

Changes to be made in reserve requirements, 

and in conditions of issue of circulating 

notes (deposit of government bonds not 

required); guaranty fund in excess of 

$25,000,000 to be used to retire United 

States notes

43

For reserve fund, initial assessment 1 percent of 

deposits, adjusted annually to keep fund at this 

figure. For premium fund, annually 1/10 of 1 

percent of average deposits (new banks, 1 percent 

of capital); and 1 percent (existing tax) on circulating notes

Deposits not to exceed 10 times capital; 

Comptroller of the _ Currency authorized 

to refuse new national charters where 

banking facilities already sufficient

44

Semi-annually 1/10 of 1 percent of capital stock, 

additional as and when needed; interest on loans 

to banks; maximum fund $10,000,000

Comptroller may make loan at 6 percent to 

banks when losses exceed accumulated surplus or deposits are suddenly withdrawn, 

and appoint manager of borrowing bank; 

restrictions on salary increases, new loans 

and investments, and dividends when surplus below amount reported or while government loan outstanding

45

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

D ig e s t o f B i l l s f o r I n s u r a n c e o r G u a r a n t y o f B a n k D e p o s it s I n t r o d u c e d 

I n t o C o n g r e s s , 1886-1933—Continued

Identifying

number

Date, Congress and bill 

number, and author

Character of protection, 

banks participating, and 

administrative authority

Liabilities covered

46 Jan. 9, 1908; 60th S 3023 

Amendment 

Nelson, K. (Minn., Rep.)

Insurance; National banks; 

Secretary of the Treasury

Depositors, except U.S. 

government

47 Jan. 14, 1908; 60th HR 13646 

Adair, J.A. (Ind., Dem.)

Insurance; National banks; 

Comptroller of the Currency

Deposits and creditors except 

officers, directors, and stockholders

48 Jan. 15, 1908; 60th S 3988 

Owen, R.L. (Okla., Dem.)

Insurance; National banks; 

Comptroller of the Currency

Deposits, excluding current accounts bearing over 2 percent 

and time deposits bearing over 

4 percent interest

49 Jan. 27, 1908; 60th HR 15238 

Bates, A.L. (Penn., Rep.)

Same as 25 Same as 25

50 Jan. 27, 1908; 60th S 4486 

Gore, T.P. (Okla., Dem.)

Insurance; National banks; 

Comptroller of the Currency

Deposits and creditors except 

officers, directors, and stockholders w

51 Jan. 30, 1908; 60th HR 15860 

Crawford, W .T. (N.C., Dem.)

U.S. guaranty; National 

banks and all banks under 

State charter, including 

private banks;

Comptroller of the Currency

Depositors

52 Feb. 7, 1908; 60th HR 16730 

Williams, J.S. (Miss., Dem.)

Insurance; National and 

State banks accepting 

conditions of Act; Secretary 

of the Treasury

Deposits not paid from proceeds 

of liquidation

53 Feb. 12, 1908; 60th S 3023 

Amendment 

Owen, R.L. (Okla., Dem.)

Insurance; National banks; 

Comptroller of the Currency

Deposits, excluding interestbearing

54 Feb. 17, 1908; 60th S 3023 

Amendment 

Brown, N. (Neb., Rep.)

Insurance; National banks; 

Secretary of the Treasury

Deposits

55 Mar. 11, 1908; 60th S 3023 

Amendment 

McCumber, P. J. (N.D., Rep.)

Insurance; National banks; 

Comptroller of the Currency

Deposits not covered by proceeds 

of liquidation

56 Mar. 13, 1908; 60th S 3023 

Amendment 

Nelson, K. (Minn., Rep.)

Same as 46 Same as 46

57 Mar. 16, 1908; 60th HR 19362 

Bates, A.L. (Penn., Rep.)

Same as 25 Same as 25

58 Mar. 25, 1908; 60th S 3023 

Amendment 

Owen, R.L. (Okla., Dem.)

Same as 53 Same as 53

59 Mar. 18, 1909; 61st HR 2140 

Sheppard, M. (Texas, Dem.)

Same as 28 Same as 28

60 Mar. 24, 1909; 61st HR 4322 

DeArmond, D.A. (Mo., Dem.)

Same as 39 Same as 39

61 May 3, 1909; 61st HR 9148 

Underwood, O.W. (Ala., Dem.)

Same as 36 Same as 36

62 July 9, 1909; 61st HR 11397 

Candler, E.S. (Miss., Dem.)

Same as 26 Same as 26

63 Dec. 10, 1909; 61st HR 13887 

Russell, G.J. (Texas, Dem.)

Same as 29 Same as 29

64 Feb. 28, 1910; 61st HR 22000 

Rucker, A.W. (Colo., Dem.)

Insurance; National banks, 

State banks under conditions prescribed by Comptroller of the Currency; 

Comptrollerfof the Currency

Deposits, except time deposits 

paying over 4 percent and demand deposits paying over 2 

percent interest

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Federal Reserve Bank of St. Louis
DEPOSIT INSURANCE PROPOSALS 87

D ig e s t o f B il l s f o r I n s u r a n c e o r G u a r a n t y o f B a n k D e p o s it s I n t r o d u c e d

I n t o C o n g r e s s , 1886-1933— Continued

Assessments and other sources of funds

One-third of taxes paid on circulating notes; maximum fund $10,000,000

Annually 1/10 of 1 percent of average deposits; 

maximum fund $5,000,000

Same as 37

Same as 32

Annually 1/4 of 1 percent of average deposits; 

maximum fund $10,000,000

Annually 1 percent on average deposits and capital 

stock, for four years

Semi-annually 1/16 of 1 percent of average deposits; 

maximum fund $15,000,000

Tax on circulation of national banks; interest on 

“ circulation fund” ; if necessary, assessment on 

average deposits not over 1/10 of 1 percent per 

year

Interest paid by national banks on U.S. deposits 

at 2 percent per year

Annually 1/50 of 1 percent of average deposits; maximum fund, judgment of Comptroller of the 

Currency

Same as 46

Same as 32

Same as 53

Same as 28

Same as 39

Same as 36

Same as 26

Same as 29

Existing tax (1 percent per year) on circulating notes 

of national banks; assessments on State banks 

prescribed by Comptroller of the Currency

IdentiOther provisions fying

number

46

47

Same as 37 48

Maximum interest on deposits half of legal 49 

rate in State in which located

50

Circulating notes to be issued only on basis of 51 

old and silver, or, if this is inadequate, 

tate and local government securities; each 

director and officer of a failed bank to be 

imprisoned for one to ten years unless it is 

proved that failure is not due to violation 

of law

Change in reserve requirements; limitations 52 

on loans

Same as 37, except Treasury note issue to be 53 

$500,000,000

54

55

56

Same as 49 57

Same as 53 58

Same as 28 59

60

61

62

63

64

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

D igest of Bills for I nsurance or G u aranty of B a n k D eposits I ntroduced

I nto C ongress, 1886-1933—Continued

*fvinp~ Date, Congress and bill 

number TMmber, and author

Character of protection, 

banks participating, and 

administrative authority

Liabilities covered

65 June 16, 1910; 61st S 8723 

Jones, W.L. (Wash., Rep.)

U.S. guaranty; National 

banks;

Secretary of the Treasury

Depositors; in form of U.S. 

certificates of deposit payable 

upon endorsement

66 July 26, 1911; 62nd HR 12836 

Candler, E.S. (Miss., Dem.)

Same as 26 Same as 26

67 Dec. 12, 1911; 62nd HR 15454 

Sheppard, M. (Texas, Dem.)

Same as 28 Same as 28

68 Nov. 10, 1913; 63rd S Amendment to HR 7837 

Williams, J.S. (Miss., Dem.)

Insurance; National banks; 

Comptroller of the Currency

Liabilities, excluding circulation 

U.S. deposits, reduced to 90 

percent if necessary to draw on 

reserve fund

69 Nov. 25, 1913; 63rd S Amendment to HR 7837 

Hitchcock, G.N. (Neb., Dem.)

Insurance; members Federal 

Reserve System;

Federal Reserve Board

Deposits

70 Dec. 1, 1913; 63rd S Amendment to HR 7837 

Owen, R.L. (Okla., Dem.)

Insurance; National banks; 

Secretary of the Treasury

Deposits

71 Dec. 18, 1913; 63rd S Amendment to HR 7837 

Owen, R.L. (Okla., Dem.) 

(Passed byJSenate, Dec. 19, 

1913)

Insurance; members Federal 

Reserve System; 

Secretary, of the Treasury

Deposits

72 Dec. 23, 1913; 63rd S 3867 

Williams, J.S. (Miss., Dem.)

Same as 68 Same as 68

73 Jan. 16, 1914; 63rd HR 11744 

Kinkaid, M.P. (Neb., Rep.)

Insurance; National banks; 

Secretary of the^Treasury

Deposits

74 Mar. 10, 1914; 63rd S 4844 

Owen, R.L. (Okla., Dem.)

Insurance; members Federal 

Reserve System;

Federal Reserve Board

Liabilities, except circulation and 

U.S. deposits

75 Sept. 12, 1914; 63rd HR 18763 

Barton, S.R. (Neb., Rep.)

Insurance; members Federal 

Reserve System;

Secretary of the Treasury

Deposits

76 Dec. 6, 1915; 64th HR 771 

Kinkaid, M.P. (Neb., Rep.)

Same as 73 Same as 73

77 Dec. 7, 1915; 64th S 456 

Williams, J.S. (Miss., Dem.)

Same as 68 Same as 68

78 Dec. 10, 1915; 64th S 1408 

Owen, R.L. (Okla., Dem.)

Same as 74 Same as 74

79 April 4, 1917; 65th S 9 

Owen, R.L. (Okla., Dem.)

Same as 74 Same as 74

80 April 6, 1917; 65th S 742 

Williams, J.S. (Miss., Dem.)

Same as 68 Same as 68

81 Feb. 18, 1918; 65th HR 9968 

Shouse, J. (Kans., Dem.)

U.S. guaranty; National 

banks;

Comptroller of the Currency

Deposits, maximum $5,000 to 

any one depositor

82 Feb. 18, 1918; 65th S 3909 

Owen, R.L. (Okla., Dem.)

Same as 81 Same as 81

83 April 23, 1918; 65th S 4426 

Shaforth, J.F. (Colo., Rep.)

U.S. guaranty; National 

banks;

Comptroller of the Currency

Deposits, maximum $5,000 to any 

one depositor, except those 

bearing over 4 percent interest

Digitized for FRASER 

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Federal Reserve Bank of St. Louis
DEPOSIT INSURANCE PROPOSALS 89

D ig e s t o f B il l s f o r I n s u r a n c e o r G u a r a n t y o f B a n k D e p o s it s I n t r o d u c e d

I n t o C o n g r e s s , 1886-1933— Continued

IdentiAssessments and other sources of funds Other provisions fying

number

Necessary assessment, upon liquidation of a failed 

bank, on basis of average loans and discounts for 

preceding year

Same as 26

Same as 28

Annually 1/10 of 1 percent of total deposits for 

premium fund, plus 1/4 of 1 percent for reserve 

fund to be adjusted by the Comptroller of the 

Currency to deposits; initial assessment for reserve 

fund 1 /2 of 1 percent (bank with deposits less than 

capital, 1 percent of capital for reserve fund and 

1/10 of 1 percent of capital for premium fund)

37-1/2 percent of net earnings of Federal Reserve 

banks, after 5 percent dividend to stockholders; 

maximum fund set by Federal Reserve Board

1/4 of net earnings of Federal Reserve banks, after

6 percent dividend to stockholders

Same as 70

Revision of entire law relating to national 65 

banks; issue of emergency currency by 

government if necessary; public works program in case of a great national business 

depression

66

Same as 28 67

Deposits of a bank limited to 10 times its 68 

capital

69

70

71

Same as 68 Same as 68 72

Interest received on U.S. Government deposits, re- 73

ducible after 3 years to one-half of such interest if 

fund is deemed sufficient by Secretary of the 

Treasury

Proceeds of tax on national bank circulation (1 per- 74

cent) to maximum of 1 percent of deposits in 

member banks

3/8 of net earnings of Federal Reserve banks after 75

6 percent dividend to stockholders

Same as 73 76

Same as 68 Same as 68 77

Same as 74 78

Same as 74 79

Same as 68 Same as 68 80

Annually 1/10 of 1 percent of aggregate guaranteed 81

deposits; necessary Treasury appropriation

Same as 81 82

Annually 1/10 of 1 percent of aggregate guaranteed 83

deposits; necessary Treasury appropriation

Digitized for FRASER 

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

D igest of Bills for I nsurance or G u aranty of B a n k D eposits I ntroduced

I nto C ongress, 1886-1933—Continued

^vintr*" Date, Congress and bill 

number number, and author

Character of protection, 

banks participating, and 

administrative authority

Liabilities covered

84 May 26, 1919; 66th S 757 

Williams, J.S. (Miss., Dem.)

Same as 68 Same as 68

85 May 26, 1919; 66th S 800 

Owen, R.L. (Okla., Dem.)

Same as 74 Same as 74

86 Dec. 13, 1920; 66th HR 15012 

McClintic, J.V. (Okla., Dem.)

Insurance; National banks 

members of F.R. System; 

Comptroller of the Currency

Non-interest bearing deposits of 

individuals and institutions

87 April 11, 1921; 67th HR 2174 

McClintic, J.V. (Okla., Dem.)

Insurance; National banks 

members of F.R. System in 

Reserve districts establishing funds upon vote of majority of said banks;

Comptroller of the Currency

Non-interest bearing deposits of 

individuals and institutions

88 Sept. 16, 1922; 67th HR 12659 

Smith, A.T. (Idaho, Rep.)

Same as 87 Same as 87

89 Feb. 3, 1923; 67th S 4475 

Brookhart, S.W. (Iowa, Rep.)

Insurance; cooperative national banks; Cooperative 

reserve bank (after establishment of 1,000 banks);

Treasurer of U.S. (temporarily)

Total deposits

90 Dec. 5, 1923; 68th HR 84 

McClintic, J.V. (Okla., Dem.)

Same as 87 Same as 87

91 Jan. 1, 1924; 68th S 2063 

Brookhart, S.W. (Iowa, Rep.)

Same as 89 Same as 89

92 Mar. 1, 1924; 68th S Res. 182 

Jones, A.A. (N.M., Rep.)

Insurance; members Federal 

Reserve System;

Not specified

Just claims of depositors

93 Mar. 10, 1924; 68th HR 7794 

Thomas, E. (Okla., Dem.)

Insurance; members Federal 

Reserve System;

Federal Reserve Board

Deposits

94 Apr. 30, 1924; 68th HR 8977 

Doyle, T.A. (111., Dem.)

Guaranty of surety company; 

National banks;

Treasurer of U.S.

Deposits

95 Feb. 9, 1925; 68th HR 12221 

Steagall, H.S. (Ala., Dem.)

Insurance; members

Federal Reserve System; 

Secretary of the Treasury

Balance unpaid to depositors after 

bank is liquidated

96 Dec. 14, 1925; 69th HR 5406 

Hastings, W.W. (Okla., Dem.)

Guaranty of surety company; 

National banks and State 

banks members F.R. System; 

Treasurer of U.S.

25 percent of deposits

97 Mar. 6, 1926; 69th HR 10085 

Thomas, E. (Okla., Dem.)

Insurance; National banks 

and State banks members 

Federal Reserve System; 

Comptroller of the Currency

Any claims for losses occasioned 

by a bank failure

98 Mar. 23, 1926; 69th HR 10602 

Steagall, H.S. (Ala., Dem.)

Same as 95 Same as 95

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Federal Reserve Bank of St. Louis
DEPOSIT INSURANCE PROPOSALS 91

D ig e s t o f B il l s f o r I n s u r a n c e o r G u a r a n t y o f B a n k D e p o s it s I n t r o d u c e d

I n t o C o n g r e s s , 1886-1933— Continued

IdentiAssessments and other sources of funds Other provisions fying

number

Same as 68 Same as 68 84

Same as 74

Annually 1/2 of 1 percent of average deposits excluding State and U.S. funds otherwise secured, 

plus an additional 1 percent per year if necessary; 

new banks 2 percent of capital to be adjusted to 

deposits later; 10 percent of net earnings of 

F.R. banks after dividends

Annually 1 /20 of 1 percent of average daily and time 

deposits, excluding State and U.S. funds otherwise 

secured in districts establishing funds, subject to 

increase to 1 percent if necessary and to reduction 

if fund is deemed sufficient; new banks 1/2 of 1 

percent of capital to be adjusted to deposits later; 

10 percent of net earnings of Federal Reserve banks 

after dividends; initial levy upon surplus of all 

F.R. banks sufficient to provide $1,000,000 for 

each fund established

Same as 87

Annually 1/10 of 1 percent of total deposits; maximum fund, 3 percent of total deposits

Same as 87

Same as 89

Surplus and current net earnings of the Federal 

Reserve banking system

Anually net earnings of Federal Reserve banks equal 

to 3/10,000 of 1 percent of individual unsecured 

deposits bearing not over 3 percent interest and 

not exceeding $5,000 for each depositor; maximum 

fund 1/2 of 1 percent of individual deposits with 

same limitations

Banks required to purchase surety bonds equal to 

aggregate deposits (new banks, equal to capital) 

from companies found financially responsible by 

Treasurer of the U.S.

Net earnings of Federal Reserve banks paid to U.S.

Banks required to purchase surety bonds equal to 

25 percent of deposits (new banks, capital); companies to be approved as to financial responsibility 

by the Treasurer of U.S.

U.S. Treasury appropriation $10,000,000 to be 

retired when bank deposit insurance fund reaches 

$25,000,000; reasonable premiums by insured 

banks to be determined by Comptroller of the 

Currency

Same as 95

85

86

87

88

Formation of cooperative national banks 89 

by not less than 200 persons; minimum 

capital $15,000; dividends on capital 

limited; earnings in excess of dividends and 

specified additions to surplus to be distributed amongfdepositors and borrowers

90

Same as 89 91

Committee on Banking and Currency in- 92 

structed>to prepare a bill

93

Each surety company to have same right to 94 

examine banks covered as Comptroller of . 

the Currency and national bank examiners

95

Company furnishing bond to have right to 96 

examine bank as Comptroller of the Currency, national bank examiners, and State 

bank examiners

97

98

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

D igest of Bills for I nsurance or G u aranty of Ba n k D eposits I ntroduced

I nto C ongress, 1886-1933—Continued

Identifying

number

Date, Congress and bill 

number, and author

Character of protection, 

banks participating, and 

administrative authority

Liabilities covered

99 Dec. 6, 1926; 69th HR 13466 

Brand, C. H. (Ga., Dem.)

Insurance, in effect U.S. 

guaranty; members F.R. 

System except banks under 

State deposit insurance 

laws; Federal Reserve Board

Deposits not paid from proceeds 

of liquidation; fund may be 

used before assets are exhausted, if they are believed 

insufficient

100 Dec. 6, 1926; 69th HR 13501 

Howard, E. (Neb., Dem.)

Insurance; National banks; 

Comptroller of the Currency

Claims of depositors

101 Dec. 11, 1926; 69th HR 14921 

Brand, C.H. (Ga., Dem.)

Same as 99 Deposits; immediate payment of 

part estimated not recoverable 

from assets, with adjustment on 

final settlement

102 Dec. 5, 1927; 70th HR 5572 

Hastings, W.W. (Okla., Dem.)

Guaranty of surety company; 

National banks and State 

banks members F.R. System; 

Treasurer of United States

25 percent of deposits, excluding 

deposits otherwise secured ana 

interest-bearing time deposits

103 Dec. 5, 1927; 70th HR 5576 

Howard, E. (Neb., Dem.)

Same as 100 Same as 100

104 Dec. 13, 1927; 70th HR 7187 

Brand, C.H. (Ga., Dem.)

Same as 99 Same as 101

105 Feb. 16, 1928; 70th HR 11066 

Hastings, W.W. (Okla., Dem.)

Same as 102 Same as 102

106 Feb. 20, 1928; 70th HR 11199 

Hastings, W.W. (Okla., Dem.)

Guaranty of surety company; 

National banks and State 

banks members F.R. System; 

Secretary of the Treasury

25 percent of deposits, excluding 

deposits otherwise secured and 

interest-bearing time deposits

107 May 26, 1928; 70th HR 14058 

Steagall, H.Sk(Ala., Dem.)

Same as 95 Same as 95

108 Apr. 15, 1929; 71st HR 227 

Howard, E. (Neb., Dem.)

Same as 100 Same as 100

109 Dec. 12, 1929; 71st HR 7381 

Brand, C.H. (Ga., Dem.)

Same as 99 Same as 101

110 Jan. 6, 1930; 71st S 2848 

Brookhart, S.W. (Iowa, Rep.)

Insurance; Federal 

cooperative banks; 

Federal Farm Board

Total deposits

111 Mar. 26, 1930; 71st HR 11147 

Steagall, H.S. (Ala., Dem.)

Same as 95 Same as 95

112 June 12, 1930; 71st HR 12924 

Hastings, W.W. (Okla., Dem.)

Same as 106 Same as 106

113 Jan. 10, 1931; 71st HR 16038 

Hare, B.B. (S.C., Dem.)

Insurance; members F.R.

System;

Federal Reserve Board

50 percent of deposits

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Federal Reserve Bank of St. Louis
DEPOSIT INSURANCE PROPOSALS 93

D ig e s t o f B il l s f o r I n s u r a n c e o r G u a r a n t y o f B a n k D e p o s it s I n t r o d u c e d

I n t o C o n g r e s s , 1886-1933— Continued

IdentiAssessments and other sources of funds Other provisions fying

number

Initial U.S. government appropriation of $50,000,000, 99

and subsequent appropriations necessary to maintain fund at $25,000,000; after 6 percent dividend 

has been paid to stockholders, 90 percent of net 

earnings of Federal Reserve banks after surplus 

equals capital until fund equals $75,000,000

Semi-annually 1/20 of 1 percent (1/4 of 1 percent for 100

two years) of average daily deposits, with additional assessments not over 1 percent per year if 

fund is depleted below 1 percent; new banks 4 percent of capital to be adjusted to deposits later

Same as 99 101

Banks required to purchase surety bonds equal to 

guaranteed deposits (new banks, capital) from 

companies approved as to financial responsibility 

by the Treasurer of U.S.; or in lieu of above requirements bank, with approval of Comptroller 

of Currency, may deposit with Federal Reserve 

bank of its district Federal, State, county or 

municipal bonds to amount of bond required by the 

Act

Same as 100

Same as 99

Banks required to purchase surety bonds equal to 

guaranteed deposits (new banks, capital) from 

companies approved as to financial responsibility 

by Treasurer of the United States

Banks required to purchase surety bonds equal to 

guaranteed deposits (new banks, capital) from 

companies approved as to financial responsibility 

by Secretary of the Treasury

Same as 95

Same as 100

Same as 99

Annually 1/10 of 1 percent of total deposits; maximum 

fund, 3 percent of total deposits

Same as 95

Same as 106

Net earnings derived by U.S. from Federal Reserve 

banks to extent deemed necessary; and additional 

appropriations if necessary not exceeding amount 

previously received from net earnings of F.R. banks

103

104

105

106

107

108

109

Formation of Federal cooperative banks by 110 

not less than 200 persons (50 persons if 

organized as stock corporations); minimum 

capital $25,000; dividends on capital 

limited; earnings in excess of dividends and 

specified additions to surplus to be distributed among depositors and borrowers

111

112

113

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

D ig e s t o f B i l l s f o r I n s u r a n c e o r G u a r a n t y o f B a n k D e p o s its I n t r o d u c e d 

I n t o C o n g r e s s , 1886-1933—Continued

Identifying

number

Date, Congress and bill 

number, and author

Character of protection, 

banks participating, and 

administrative authority

Liabilities covered

114 Feb. 28, 1931; 71st HR 17324 

Ramspeckf R. (Ga., Dem.)

Insurance (fund in each F.R. 

district); members F.R. 

System in each district in 

which guaranty fund has 

reached maximum prescribed 

by F.R. Board;

Federal Reserve Board

Deposits

115 Dec. 8, 1931; 72nd HR 313 

Howard, E. (Neb., Dem.)

Same as 100 Same as 100

116 Dec. 8, 1931; 72nd HR 4512 

Beam, H.P. (111., Dem.)

Guaranty of surety company; 

National banks; Treasurer 

of the United States

Total deposits

117 Dec. 8, 1931; 72nd HR 4572 

Hastings, W.W. (Okla., Dem.)

Same as 106 Same as 106

118 Dec. 9, 1931; 72nd HR 5125 

Hare, B.B. (S.C., Dem.)

Same as 113 Same as 113

119 Dec. 9,1931; 72nd S 126 

Brookhart, S.W. (Iowa, Rep.)

Same as 110 Same as 110

120 Dec. 17, 1931; 72nd HR 6181 

Lamneck, A.P. (Ohio, Dem.)

Insurance; members F.R. 

System; F.R. banks under 

supervision F.R. Board

Deposits; immediate payment of 

part estimated not recoverable 

from assets, with adjustment 

upon final settlement

121 Jan. 4, 1932; 72nd HR 6705 

LaGuardia, F.H. (N.Y., Rep.)

Insurance (fund in each F.R. 

district); all members F.R. 

System, members of State 

funds having privilege of 

withdrawal;

Federal Reserve banks under 

supervision of F.R. Board

Deposits, fund to pay or advance 

to liquidating officer estimated 

amount by which assets are 

insufficient

122 Jan. 26, 1932; 72nd S 3324 

Lewis, J.H. (111., Dem.)

U.S. guaranty; National 

banks and State banks 

members F.R. System; 

Bureau of Insurance organized by Treasury 

Department

Deposits

123 Feb. 8, 1932; 72nd HR 8989 

Shallenberger, A.C.

(Neb., Dem.)

Insurance (fund in each F.R. 

district); members F.R. 

System; Federal Reserve 

banks under supervision 

F.R. Board

Deposits, fund to pay or advance 

to liquidating officer estimated 

amount by which assets are 

insufficient

124 Feb. 20, 1932; 72nd HR 9594 

Jenkins, T.A. (Ohio, Rep.)

Same as 123 Same as 123

125 Feb. 26, 1932; 72nd S 3826 

Fletcher, D.U. (Fla., Dem.)

U.S. guaranty; ail members 

F.R. System certified as to 

apparent solvency by Comptroller of the Currency; 

Treasurer of the United States

Unsecured deposits

126 Mar. 2, 1932; 72nd HR 10040 

Disney, W.E. (Okla., Dem.)

Insurance, in part underwritten by U.S. government; 

members F.R. System; 

FederaliReserveiBoard

Deposits

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Federal Reserve Bank of St. Louis
DEPOSIT INSURANCE PROPOSALS 95

D ig e s t o f B il l s f o r I n s u r a n c e o r G u a r a n t y o f B a n k D e p o s it s I n t r o d u c e d

I n t o C o n g r e s s , 1880-1933— Continued

Assessments and other sources of funds Other provisions

Identifying

number

90 percent of earnings of F.R. banks after surplus 

equals subscribed capital; maximum fund prescribed by Federal Reserve Board

114

Same as 100 115

Banks required to purchase surety bonds equal to 

total deposits (new banks, capital)

Company furnishing bond to have right to 

examine bank to same extent as Comptroller of the Currency and national bank 

examiners

116

Same as 106 117

Same as 113 118

Same as 110 Same as 110 119

Quarterly 75 cents (initial assessment $3) for each 

$1,000 of average daily deposits; additional assessments when necessary not over $5 per $1,000 of 

deposits

120

Semi-annually 1/20 of 1 percent (1/4 of 1 percent 

for two years) of average deposits; new banks 

4 percent of capital to be adjusted later

121

Premium to be established by Bureau of Insurance, 

and such further levies on banks or U.S. Treasury 

as may be necessary

122

Semi-annually 1/20 of 1 percent of average demand 

deposits and 1/8 of 1 percent of average savings or 

interest bearing deposits (for two years, 1/4 of 

1 percent of all deposits); new banks 4 percent of 

capital to be adjusted later; 1/2 of earnings of 

Federal Reserve banks after dividends

Maximum rate of interest on savings or 

other time deposits 2-3/4 percent per year

123

Semi-annually 1/20 of 1 percent (1/4 of 1 percent for 

two years) of average deposits; new banks 4 percent 

of capital to be adjusted later; additional assessment not over 1 percent per year if fund is_depleted 

below 1 percent of deposits

124

Initial assessment 5 percent of capital stock, to be 

deposited and maintained with the U.S. Treasury; 

Treasury to advance and credit guaranty fund 

with any additional sumsjiecessary

Comptroller of the Currency to examine all 

members of F.R. System at least twice a 

year

125

Quarterly 50 cents per $1,000 of deposits; initial 

deposit in trust of U.S. securities equal to 2 percent 

of deposits; all future earnings of F.R. banks; U.S. 

appropriation of amount received as franchise tax 

from Federal Reserve banks, and guarantee against 

loss of principal up to $100,000,000

Minimum capital requirements raised; increased rediscounting facilities; Governor of 

Reserve bank and Comptroller of the Currency to have power to suspend any official 

of a member bank for violation of laws, 

regulations or repeated warnings against 

unsound practices; failed banks liquidated 

by receiver nominated by Federal^Reserve 

bank

126

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96 FEDERAL DEPOSIT INSURANCE CORPORATION

D ig e s t o f B il l s f o r I n s u r a n c e o r G u a r a n t y o f B a n k D e p o s it s I n t r o d u c e d

I n t o C o n g r e s s , 1886-1933— Continued

Date, Congress and bill 

number number, and author

Character of protection, 

banks participating, and 

administrative authority

Liabilities covered

127 Mar. 5, 1932; 72nd HR 10201 

Cable, J.L. (Ohio, Rep.)

128

129

Mar. 7, 1932; 72nd S 3971 

Fess, S.D. (Ohio, Rep.)

Mar. 7, 1932; 72nd HR 10241 

Steagall, H.B. (Ala., Dem.)

Insur an ce; 'members’ F.R. 

System, other applicant 

banks and building and loan 

associations found solvent 

with privilege of withdrawal 

on 12 months' notice, and 

depositors of banks not 

participating;

Federal Guaranty and Insurance Corporation

Same as 127

Insurance; members F.R. 

System; Federal Bank 

Liquidating Board

507percent of deposits, payment 

to receiver of closed banks; additional loans to receivers, in 

such amounts as may be safely 

loaned after appraisal of assets

Same as 127

Deposits; accounts up to $1,000 

to be paid not less than 50 percent, those over $1,000 not less 

than 25 percent or $500 whichever is greater, within 60 days; 

balance within 1-1/2 years 

thereafter

130 Mar. 7, 1932; 72nd HR 10242 

McClintic, J.V. (Okla., Dem.)

Insurance; National banks 

members F.R. System; 

Comptroller of the Currency

Non-interest bearing deposits of 

individuals and institutions

131 Mar. 21, 1932; 72nd HR 10706 

Taylor, J.W. (Tenn., Rep.)

U.S. guaranty; members F.R. 

System, with all banks of 

deposit required to become 

members; Federal Banking 

Commission

Deposits

132 Apr. 13, 1932; 72nd HR 11340 

Strong, J.G. (Kans., Rep.)

Guaranty by surety company; 

National banks;

Comptroller of the Currency

Deposits not specially secured 

1/4 within 60 days, 1/4 within 

120 days, 1/4 within 210 days, 

and final 1/4 within 1 year

133 Apr. 14, 1932;T72nd HR 11362 

Steagall, H.B. (Ala., Dem.) 

(Passed House of Representa-

/ tives May 27, 1932, amended 

to make banks not members 

F.R. System eligible on certification of sound condition 

by State examing authority, 

and assessment rate for 

banks not members F.R. 

System same as for members)

134 May 21, 1932; 72nd S 4725 

Fletcher, D.U. (Fla., Dem.)

Insurance; members F.R. 

System, other banks with 

capital and surplus not less 

than $25,000 found by 

Board’s examination to be in 

sound financial condition;

Federal Bank Liquidating 

Board

Insurance; National banks 

and State banks members 

F.R System, other applicant banks with total capital account of $25,000 or 

more which maintain satisfactory condition and 

management; Guarantee 

Board

Deposits; accounts up to $1,000 

to be paid not less than 50 percent, those over $1,000 not less 

than 25 percent or $500 whichever is greater, within 90 days; 

balance within 1-1/2 years 

thereafter

Deposits

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DEPOSIT INSURANCE PROPOSALS 97

D ig e s t o f B il l s fo r I n s u r a n c e o r G u a r a n t y o f B a n k D e p o sit s I n tr o d u c e d

I n t o C o n g r e s s, 1886-1933— Continued

IdentiAssessments and other sources of funds Other provisions fying

number

Annual assessment on basis of daily deposits at rate 

determined by Corporation; stock subscriptions by 

participating banks and by Federal Reserve banks 

1/5 of 1 percent of average deposits during latter 

half of 1931; premium by guaranteed depositors in 

non-participating banks at rate determined by 

Corporation

All stockholder banks to be examined twice 127 

a year by examiners of the Corporation

Same as 127 Same as 127 128

Annual assessments not over $100,000,000 distributed 

in proportion to deposits; initial assessment not to 

exceed $130,000,000 in proportion to deposits other 

than time and $70,000,000 in proportion to time 

deposits; initial levy on F.R. banks $150,000,000 

in proportion to surplus; U.S. appropriation of 

amount received as franchise tax from F.R. banks; 

45 percent of net earnings of F.R. banks after 

dividends; if fund exceeds adequate amount excess 

may be refunded

Minimum capital requirements increased; 

interest on deposits limited to 4 percent; 

further restrictions on payment of dividends

129

Annually 1/2 of 1 percent of average deposits, excluding State and U.S. funds otherwise secured, 

plus an additional 1/2 of 1 percent per year if 

necessary; new banks 1 percent of capital to be 

adjusted later; all net earnings of F.R. banks 

after dividends

130

Annually 1/4 of 1 percent from all depositors and 

borrowers, except U.S. and political subdivisions; 

if necessary on banks annually 1/4 of 1 percent of 

net deposits; net earnings of F.R. banks above 

surplus requirements; U.S. appropriation if foregoing funds are insufficient

Interest on demand deposits except correspondent balances, prohibited and interest 

on savings and time deposits limited to 

2-3/4 percent per year; payment of dividends by banks and F.R. bank restricted; 

Federal Banking Commission authorized to 

make rules and regulations, not inconsistent with Federal Reserve and national 

banking acts, deemed necessary properly 

to regulate and control banking practices; 

double liability of stockholders repealed; 

Federal Reserve banks to be owned by the 

United States

131

Banks required to purchase surety bonds equal to 

total deposits (new banks, equal to capital); bonds 

to be filed with Comptroller of the Currency; 

portion of cost, not to exceed 1/10 of 1 percent of 

deposits covered, may be charged by each bank 

to its depositors

132

Annual assessment on member banks not over 

$100,000,000 distributed in proportion to deposits; 

assessment on banks not members of the F.R. 

System twice that on member banks; initial levy on 

F.R. banks $150,000,000 in proportion to surplus; 

45 percent of net earnings of F.R. banks after 

dividends; U.S. appropriation of amount received 

as franchise tax from F.R. banks; if fund exceeds 

$500,000,000 excess may be refunded

Banks members F.R. System not to pay over 

4 percent interest on deposits, and dividends 

restricted; banks not members of the F.R. 

System to be examined by Board; failed 

national banks to be liquidated by Board

133

Quarterly assessments upon each depositor at 5 cents 

for each $100, or less, of average deposits; rate 

subject to reduction by board if fund reaches 

$300,000,000; U.S. appropriation of franchise tax 

previously received and to be received in the 

future, from F.R. banks; subject to call of guarantee board, $100,000,000 from surplus of F.R. 

banks

Except for savings banks, interest on time 134 

deposits limited to 3-1/2 percent, and on 

demand deposits to 1 percent per year

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

D ig e s t o f B i l l s f o r I n s u r a n c e o r G u a r a n t y o f B a n k D e p o s its I n t r o d u c e d 

I n t o C o n g r e s s , 1886-1933—Continued

Identifying

number

Date, Congress and bill 

number, and author

Character of protection, 

banks participating, and 

administrative authority

Liabilities covered

135 Dec. 23, 1932; 72nd S 5291 

Vandenberg, A.H. (Mich., 

Rep.)

Insurance; members F.R. 

System, other applicant 

State banks approved by 

directors; Board of Directors 

composed of F.R. Board 

members

75 percent of time deposits

136 Mar. 9, 1933; 73rd HR 137 

Jenkins, T.A. (Ohio, Rep.)

Same as 124 Same as 124

137 Mar. 9, 1933; 73rd HR 1562 

Taylor, J.W. (Tenn., Rep.)

Same as 131 Same as 131

138 Mar. 10, 1933; 73rd S 21 

Vandenberg, A.H. (Mich., 

Rep.)

Same as 135 Same as 135

139 Mar. 10, 1933; 73rd S 75 

McAdoo, W.G. (Calif., Dem.)

Insurance; members F.R. 

System, other banks complying with requirements of 

Board;

Federal Reserve Board

Liabilities except circulation, LT.S. 

deposits, and other secured 

public deposits

140 Mar. 11, 1933; 73rd S 301 

Fletcher, D.U. (Fla., Dem.)

Same as 134 Same as 134

141 Mar. 14, 1933; 73rd HR 3359 

Hastings, W.W. (Okla., Dem.)

Same as 106 Same as 106

142 Mar. 14, 1933; 73rd HR 3369 

Johnson, L.A. (Texas, Dem.)

Insurance; members F.R. 

System, other banks certified by State authority 

to be in sound financial 

condition; Federal Bank 

Liquidating Board

Same as 133

143 Mar. 15, 1933; 73rd HR 3515 

Whitley, J.L. (N.Y., Rep.)

Insurance; any applicant national or State bank certified as sound by Secretary 

of Treasury or State banking^ authority, respectively, 

and approved by the Board; 

Federal Bank Liquidating 

Board

Deposits, payable as soon as 

practicable, not over 1 year 

after necessary information is 

provided by report of committee 

appraising assets

144 Mar. 16, 1933; 73rd HR 3669 

Church, D.S. (Calif., Dem.)

Same as 139 Same as 139

145 Mar. 17, 1933; 73rd HR 3758 

Shallenberger, A.C. (Neb., 

Dem.)

Insurance; members F.R.

System;

Comptroller of the Currency

All deposits, by payment to 

liquidating officer of closed bank 

of sum sufficient to enable full 

payment of depositors; loans 

to liquidating officers also 

authorized

146 Apr. 20, 1933; 73rd HR 5076 

Carter, A.E. (Calif., Rep.)

Insurance; members F.R.

System deemed sound; 

Federal Reserve Board

Deposits

147 May 9, 1933; 73rd HR 5571 

McLeod, C.J. (Mich., Rep.)

Insurance; National banks 

and State banks members 

F.R. System; Federal 

Reserve Board

Deposits, defined as liabilities 

other than circulation, U.S. 

deposits, and other secured 

public deposits

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Federal Reserve Bank of St. Louis
DEPOSIT INSURANCE PROPOSALS 99

D ig e s t o f B il l s f o r I n s u r a n c e o r G u a r a n t y o f B a n k D e p o s it s I n t r o d u c e d

I n t o C o n g r e s s , 1886-1933— Continued

Assessments and other sources of funds Other provisions

Identifying

number

Annually on banks members of the F.R. System 

1/8 of 1 percent of average time deposits, and on 

banks not members at least twice this rate; additional if necessary, not over 1/8 of 1 percent 

annually; initially 1/4 of surplus, and annually 

1/4 of net earnings of F.R. banks available for 

surplus; U.S. appropriation $125,000,000

135

Same as 124 136

Same as 131 Same as 131 137

Same as 135 138

Assessments on banks members F.R. System sufficient 

to maintain fund at 1 percent of deposits, and on 

other banks at rate determined by Board; 1 percent 

per year on national bank circulation (existing tax) 

at option of Board

139

Same as 134 Same as 134 140

Same as 106 141

Same as 133, except that banks not members F.R. 

System to pay same rate as members

Banks members F.R. System not to pay over 

4 percent interest on deposits and dividends 

restricted; banks not members of F.R. 

System may be required to withdraw if they 

fail to furnish annually certificates by State 

authority of their sound financial condition

142

Semi-annually 1/8 of 1 percent of average daily 

deposits, subject to variation if necessary; new 

banks 4 percent of capital accounts to be adjusted 

to deposits later; U.S. appropriations of franchise 

tax paid by Federal banks; maximum fund, discretion of Board

143

Same as 139 144

Annual assessment aggregating not over $100,000,000 

in proportion to deposits; initial assessment 

$130,000,000 on basis of deposits other than time 

deposits and $70,000,000 on basis of time deposits; 

new banks 4 percent of capital accounts, adjusted 

to deposits later; initial levy on Federal Reserve 

banks $150,000,000 in proportion to surplus; half 

of annual earnings of F .R . banks after dividends; 

U.S. appropriation of amount received as franchise 

tax from Federal Reserve banks

Interest on savings or time deposits limited 

to 3 percent per year

145

Semi-annually 1/8 of 1 percent of average time and 

demand deposits; F.R. banks 1/4 of surplus and 

semi-annually 1/4 of net earnings; assessments may 

be reduced or waived by Board when fund is 1 

percent or more of deposits

146

Assessments in proportion to deposits sufficient to 

maintain fund at 1 percent of average, payable in 

installments and at times fixed by Board; if necessary, additional assessments not over 3 percent 

per year of average deposits; if from accrued 

interest fund exceeds 5 percent of average deposits 

excess to be distributed as dividends in proportion 

to previous assessments

147

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

D igest of Bills for I nsurance or G uaran ty of B a n k D eposits I ntroduced

I nto C ongress, 1886-1933—Continued

Identi- Date, Congress and bill Character of protection, .

number, and author L.ab.ht.es covered

148 May 10, 1933; 73rd HR 5598 

Steagali, H.B. (Ala., Dem.)

149 May 15, 1933; 73rd S 1631 

Glass, C. (Va., Dem.)

Insurance; members F.R. 

System, applicant State 

banks in solvent condition 

examined and approved by 

Corporation; Federal Deposit 

Insurance Corporation

Insurance; members F.R. 

System; Federal Bank 

Deposit Insurance Corp.

All deposits up to $10,000 for 

each depositor, 75 percent of 

those in excess of $10,000 up 

to $50,000, and 50 percent of 

those in excess of $50,000

Same as 148

150 May 17, 1933; 73rd HR 5661 Same as 148 Same as 148

Steagali, H.B. (Ala., Dem.)

(This bill, in amended form, 

became law on June 16,

1933; for principal deposit’ 

insurance provisions as enacted, see< Tablet 34, p. 67.)

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Federal Reserve Bank of St. Louis
DEPOSIT INSURANCE PROPOSALS 101

D ig e s t o f B il l s f o r I n s u r a n c e o r G u a r a n t y o f B a n k D e p o s it s I n t r o d u c e d

I n t o C o n g r e s s , 1886-1933— Continued

IdentiAssessments and other sources of funds Other provisions fying

number

Semi-annually 1/4 of 1 percent of all loans made 

during the period to be paid by the borrower, 

reducible if fund is deemed sufficient; capital stock 

subscriptions by insured banks equal to 1/2 of 

1 percent of total net outstanding deposits adjusted 

annually, by F.R. banks equal to 1/2 of their 

surplus, and by the U.S. $150,000,000

Assessment equal to 1/4 of 1 percent of total deposits, 

when net debit balance of deposit insurance account equals or exceeds that amount; capital stock 

subscriptions by insured banks equal to 1/2 of 1 

percent of total deposits adjusted annually, by 

Federal Reserve banks equal to 1/2 of their surplus, and by the U.S. $150,000,000

Same as 149

Regulation of bank affiliates; restrictions on 148 

securities acquired by member banks; 

interest on time deposits limited to 3 percent per year; other changes in banking 

code

Regulation of bank affiliates; restrictions on 149 

securities acquired; interest on demand deposits prohibited and rate on time deposits 

to be limited by Federal Reserve Board; 

other changes in banking code

Same as 148 150

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Federal Reserve Bank of St. Louis
PART FOUR 

LEGISLATION AND REGULATIONS

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Federal Reserve Bank of St. Louis
F e d e r a l L e g is l a t io n

FEDERAL DEPOSIT INSURANCE ACT

[P u b l ic L a w 797— 81 st C o n g r e s s]

[C h a p t e r 967— 2 d S e s s io n ]

[S. 2822]

AN ACT

To amend the Federal Deposit Insurance Act (U.S.C., title 12, sec. 264).

Be it enacted by the Senate and House of Representatives of the United

States of America in Congress assembled, That section 12B of the Federal 

Reserve Act, as amended, is hereby withdrawn as a part of that Act and 

is made a separate Act to be known as the “ Federal Deposit Insurance 

Act” .

Sec. 2. The Federal Deposit Insurance Act is amended to read as 

follows:

Sec. 1. There is hereby created a Federal Deposit Insurance Corporation (hereinafter referred to as the “ Corporation” ) which shall insure, as hereinafter provided, the deposits of all banks which are entitled 

to the benefits of insurance under this Act, and which shall have the 

powers hereinafter granted.

Sec. 2. The management of the Corporation shall be vested in a Board 

of Directors consisting of three members, one of whom shall be the 

Comptroller of the Currency, and two of whom shall be citizens of the 

United States to be appointed by the President, by and with the advice 

and consent of the Senate. One of the appointive members shall be the 

Chairman of the Board of Directors of the Corporation and not more 

than two of the members of such Board of Directors shall be members 

of the same political party. Each such appointive member shall hold 

office for a term of six years. In the event of fa vacancy in the office of 

the Comptroller of the Currency, and pending the appointment of his 

successor, or during the absence of the Comptroller from Washington, 

the Acting Comptroller of the Currency shall be a member of the Board 

of Directors in the place and stead of the Comptroller. In the event 

of a vacancy in the office of the Chairman of the Board of Directors, 

and pending the appointment of his successor, the Comptroller of the 

Currency shall act as Chairman. The members of the Board of Directors 

shall be ineligible during the time they are in office and for two years 

thereafter to hold any office, position, or employment in any insured 

bank, except that this restriction shall not apply to any member who 

has served the full term for which he was appointed. No member of the 

Board of Directors shall be an officer or director of any insured bank

105

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

or Federal Reserve bank or hold stock in any insured bank; and before 

entering upon his duties as a member of the Board of Directors he shall 

certify under oath that he has complied with this requirement and such 

certification shall be filed with the secretary of the Board of Directors.

Sec. 3. As used in this Act—

(a) The term “ State bank” means any bank, banking association, trust 

company, savings bank, or other banking institution which is engaged 

in the business of receiving deposits, other than trust funds as herein 

defined, and which is incorporated under the laws of any State, any 

Territory of the United States, Puerto Rico, or the Virgin Islands, or 

which is operating under the Code of Law for the District of Columbia 

(except a national bank), and includes any unincorporated bank the 

deposits of which are insured on the effective date of this amendment.

(b) The term “ State member bank” means any State bank which is 

a member of the Federal Reserve System, and the term “ State nonmember bank” means any State bank which is not a member of the 

Federal Reserve System.

(c) The term “ District bank” means any State bank operating under 

the Code of Law for the District of Columbia.

(d) The term “national member bank” means any national bank 

located in any of the States of the United States, the District of Columbia, any Territory of the United States, Puerto Rico, or the Virgin 

Islands which is a member of the Federal Reserve System.

(e) The term “national nonmember bank” means any national bank 

located in any Territory of the United States, Puerto Rico, or the Virgin 

Islands which is not a member of the Federal Reserve System.

(f) The term “ mutual savings bank” means a bank without capital 

stock transacting a savings bank business, the net earnings of which 

inure wholly to the benefit of its depositors after payment of obligations 

for any advances by its organizers.

(g) The term “ savings bank” means a bank (other than a mutual 

savings bank) which transacts its ordinary banking business strictly 

as a savings bank under State laws imposing special requirements on 

such banks governing the manner of investing their funds and of conducting their business: Provided, That the bank maintains, until maturity 

date or until withdrawn, all deposits made with it (other than funds 

held by it in a fiduciary capacity) as time savings deposits of the specific 

term type or of the type where the right is reserved to the bank to require 

written notice before permitting withdrawal: Provided further, That 

such bank to be considered a savings bank must elect to become subject 

to regulations of the Corporation with respect to the redeposit of maturing 

deposits and prohibiting withdrawal of deposits by checking except in 

cases where such withdrawal was permitted by law on August 23, 1935, 

from specifically designated deposit accounts totaling not more than 

15 per centum of the bank’s total deposits.

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FEDERAL DEPOSIT INSURANCE ACT 107

(h) The term “insured bank” means any bank the deposits of which 

are insured in accordance with the provisions of this Act; and the term 

“ noninsured bank” means any bank the deposits of which are not so 

insured.

(i) The term “ new bank” means a new national banking association organized by the Corporation to assume the insured deposits of an insured 

bank closed on account of inability to meet the demands of its depositors 

and otherwise to perform temporarily the functions prescribed in this Act.

(j) The term “ receiver” includes a receiver, liquidating agent, conservator, commission, person, or other agency charged by law with 

the duty of winding up the affairs of a bank.

(k) The term “Board of Directors” means the Board of Directors 

of the Corporation.

(1) The term “ deposit” means the unpaid balance of money or its 

equivalent received by a bank in the usual course of business and for 

which it has given or is obligated to give credit to a commercial, checking, 

savings, time, or thrift account, or which is evidenced by its certificate 

of deposit, and trust funds held by such bank whether retained or deposited in any department of such bank or deposited in another bank, 

together with such other obligations of a bank as the Board of Directors 

shall find and shall prescribe by its regulations to be deposit liabilities 

by general usage: Provided, That any obligation of a bank which is 

payable only at an office of the bank located outside the States of the 

United States, the District of Columbia, any Territory of the United 

States, Puerto Rico, and the Virgin Islands, shall not be a deposit for 

any of the purposes of this Act or be included as a part of total deposits 

or of an insured deposit: Provided further, That any insured bank having 

its principal place of business in any of the States of the United States 

or in the District of Columbia which maintains a branch in any Territory 

of the United States, Puerto Rico, or the Virgin Islands may 

elect to exclude from insurance under this Act its deposit obligations 

which are payable only at such branch, and upon so electing the insured 

bank with respect to such branch shall comply with the provisions of 

this Act applicable to the termination of insurance by nonmember banks: 

Provided further, That the bank may elect to restore the insurance to 

such deposits at any time its capital stock is unimpaired.

(m) The term “ insured deposit” means the net amount due to any 

depositor for deposits in an insured bank (after deducting offsets) less 

any part thereof which is in excess of $10,000. Such net amount shall 

be determined according to such regulations as the Board of Directors 

may prescribe, and in determining the amount due to any depositor 

there shall be added together all deposits in the bank maintained in the 

same capacity and the same right for his benefit either in his own name 

or in the names of others except trust funds which shall be insured as 

provided in subsection (i) of section 7. Each officer, employee, or agent

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1 0 8 FEDERAL DEPOSIT INSURANCE CORPORATION

of the United States, of any State of the United States, of the District 

of Columbia, of any Territory of the United States, of Puerto Rico, of 

the Virgin Islands, of any county, of any municipality, or of any political 

subdivision thereof, herein called “ public unit” , having official custody 

of public funds and lawfully depositing the same in an insured bank 

shall, for the purpose of determining the amount of the insured deposits, 

be deemed a depositor in such custodial capacity separate and distinct 

from any other officer, employee, or agent of the same or any public 

unit having official custody of public funds and lawfully depositing the 

game in the same insured bank in custodial capacity.

(n) The term “transferred deposit” means a deposit in a new bank 

or other insured bank made available to a depositor by the Corporation 

as payment of the insured deposit of such depositor in a closed -bank, 

and assumed by such new bank or other insured bank.

(o) 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, or the Virgin Islands at which deposits are received 

or checks paid or money lent.

(p) The term “trust funds” means funds held by an insured bank 

in a fiduciary capacity and includes, without being limited to, funds 

held as trustee, executor, administrator, guardian, or agent.

Sec. 4. (a) Every bank, which is an insured bank on the effective 

date of this amendment, shall be and continue to be, without application or approval, an insured bank and shall be subject to the provisions 

of this Act.

(b) Every national member bank which is authorized to commence 

or resume the business of banking, and which is engaged in the business 

of receiving deposits other than trust funds as herein defined, and every 

such national nonmember bank which becomes a member of the Federal 

Reserve System, and every State bank which is converted into a national 

member bank or which becomes a member of the Federal Reserve System, 

and which is engaged in the business of receiving deposits, other than trust 

funds as herein defined, shall be an insured bank from the time it is 

authorized to commence or resume business or becomes a member of 

the Federal Reserve System. The certificate herein prescribed shall be 

issued to the Corporation by the Comptroller of the Currency in the case 

of such national member bank, or by the Board of Governors of the 

Federal Reserve System in the case of such State member bank: Provided, 

That in the case of an insured bank which is admitted to membership 

in the Federal Reserve System or an insured State bank which is converted into a national member bank, such certificate shall not be required, 

and the bank shall continue as an insured bank. Such certificate shall 

state that the bank is authorized to transact the business of banking 

in the case of a national member bank, or is a member of the Federal

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FEDERAL DEPOSIT INSURANCE ACT 109

Reserve System in the case of a State member bank, and that consideration has been given to the factors enumerated in section 6. A State bank, 

resulting from the conversion of an insured national bank, shall continue 

as an insured bank. A State bank, resulting from the merger or consolidation of insured banks, or from the merger or consolidation of a noninsured 

bank or institution with an insured State bank, shall continue as an 

insured bank.

Sec. 5. Subject to the provisions of this Act, any national nonmember 

bank which is engaged in the business of receiving deposits, other than 

trust funds as herein defined, upon application by the bank and certification by the Comptroller of the Currency in the manner prescribed in 

subsection (b) of section 4 and any State nonmember bank, upon application to and examination by the Corporation and approval by the 

Board of Directors, may become an insured bank. Before approving 

the application of any such State nonmember bank, the Board of Directors shall give consideration to the factors enumerated in section 6 

and shall determine, upon the basis of a thorough examination of such 

bank, that its assets in excess of its capital requirements are adequate to 

enable it to meet all of its liabilities to depositors and other creditors as 

shown by the books of the bank.

Sec. 6. The factors to be enumerated in the certificate required under 

section 4 and to be considered by the Board of Directors under section 5 

shall be the following: The financial history and condition of the bank, 

the adequacy of its capital structure, its future earnings prospects, the 

general character of its management, the convenience and needs of the 

community to be served by the bank, and whether or not its corporate 

powers are consistent with the purposes of this Act.

Sec. 7. (a) The assessment rate shall be one-twelfth of 1 per centum 

per annum. The semiannual assessment for each insured bank shall 

be in the amount of the product of one-half the annual assessment rate 

multiplied by the assessment base. The assessment base shall be the 

amount of the liability of the bank for deposits, according to the definition of the term “ deposit” in and pursuant to subsection (1) of section 

3, without any deduction for indebtedness of depositors: Provided, 

That the bank—

(1) may deduct (i) from the deposit balance due to an insured 

bank the deposit balance due from such insured bank (other than 

trust funds deposited by it in such bank) which is subject to immediate withdrawal; (ii) trust funds held by the bank in a fiduciary 

capacity and which are deposited in another insured bank; and 

(iii) cash items as determined by either of the following methods, 

at the option of the bank: (aa) by multiplying by 2 the total of the 

cash items forwarded for collection on the assessment base days 

(being the days on which the average deposits are computed) and 

cash items held for clearings at the close of business on said days,

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110 FEDERAL DEPOSIT INSURANCE CORPORATION

which are in the process of collection and which the bank has paid 

in the regular course of business or credited to deposit accounts; 

or (bb) by deducting the total of cash items forwarded for collection 

on the assessment base days and cash items held for clearings at 

the close of business on said days, which are in the process of collection 

and which the bank has paid in the regular course of business or 

credited to deposit accounts, plus such uncollected items paid or 

credited on preceding days which are in the process of collection: 

Provided, That the Board of Directors may define the terms “ cash 

items” , “ process of collection” , and “ uncollected items” and shall fix 

the maximum period for which any such item may be deducted; and

(2) may exclude from its assessment base (i) drafts drawn by 

it on deposit accounts in other banks which are issued in the regular 

course of business; and the amount of any advices or authorizations, issued by it for cash letters received, directing that its deposit 

account in the sending bank be charged with the amount thereof; 

and (ii) cash funds which are received and held solely for the purpose of securing a liability to the bank but not in an amount in 

excess of such liability, and which are not subject to withdrawal 

by the obligor and are carried in a special non-interest-bearing 

account designated to properly show their purpose.

Each insured bank, as a condition to the right to make any such deduction or exclusion in determining its assessment base, shall maintain 

such records as will readily permit verification of the correctness thereof. 

The semiannual assessment base for one semiannual period shall be 

the average of the assessment base of the bank as of the close of business 

on March 31 and June 30, and the semiannual assessment base for the 

other semiannual period shall be the average of the assessment base 

of the bank as of the close of business on September 30 and December 31: 

Provided, That when any of said days is a nonbusiness day or a legal 

holiday, either National or State, the preceding business day shall be 

used. The certified statements required to be filed with the Corporation 

under subsections (b) and (c) of this section shall be in such form and 

set forth such supporting information as the Board of Directors shall 

prescribe. The assessment payments required from insured banks under 

subsections (b) and (c) of this section shall be made in such manner and 

at such time or times as the Board of Directors shall prescribe, provided 

the time or times so prescribed shall not be later than sixty days after 

filing the certified statement setting forth the amount of assessment.

(b) On or before the 15th day of July of each year, each insured bank 

shall file with the Corporation a certified statement showing for the six 

months ending on the preceding June 30 the amount of the assessment 

base and the amount of the semiannual assessment due to the Corporation 

for the period ending on the following December 31, determined in 

accordance with subsection (a) of this section, which shall contain or

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FEDERAL DEPOSIT INSURANCE ACT 111

be verified by a written declaration that it is made under the penalties 

of perjury. Each insured bank shall pay to the Corporation the amount 

of the semiannual assessment it is required to certify. On or before the 

15th day of January of each year, each insured bank shall file with the 

Corporation a similar certified statement for the six months ending on 

the preceding December 31 and shall pay to the Corporation the amount 

of the semiannual assessment for the period ending on the following 

June 30 which it is required to certify.

(c) Each bank which becomes an insured bank shall not be required 

to file any certified statement or pay any assessment for the semiannual 

period in which it becomes an insured bank. On the expiration of such 

period, each such bank shall comply with the provisions of subsection

(b) of this section except that the semiannual assessment base for its 

first certified statement shall be the assessment base of the bank as of 

the close of business on the preceding June 30 or December 31, whichever 

is applicable, determined in accordance with subsection (a) of this 

section. If such bank has assumed the liabilities for deposits of another 

bank or banks, it shall include such liabilities in its assessment base. 

The first certified statement shall show as the amount of the first semiannual assessment due to the Corporation, an amount equal to the 

product of one-half of the annual assessment rate multiplied by such 

assessment base.

(d) As of December 31, 1950, and as of December 31, of each calendar 

year thereafter, the Corporation shall transfer 40 per centum of its net 

assessment income to its capital account and the balance of the net 

assessment income shall be credited pro rata to the insured banks based 

upon the assessments of each bank becoming due during said calendar 

year. Each year such credit shall be applied by the Corporation toward 

the payment of the total assessment becoming due for the semiannual 

assessment period beginning the next ensuing July 1 and any excess credit 

shall be applied upon the assessment next becoming due. The term 

“ net assessment income,, as used herein means the total assessments 

which become due during the calendar year less (1) the operating costs 

and expenses of the Corporation for the calendar year; (2) additions to 

reserve to provide for insurance losses during the calendar year, except 

that any adjustments to reserve which result in a reduction of such 

reserve shall be added; and (3) the insurance losses sustained in said 

calendar year plus losses from any preceding years in excess of such 

reserves. If the above deductions exceed in amount the total assessments 

which become due during the calendar year, the amount of such excess 

shall be restored by deduction from total assessments becoming due in 

subsequent years.

(e) The Corporation (1) may refund to an insured bank any payment 

of assessment in excess of the amount due to the Corporation or (2) may 

credit such excess toward the payment of the assessment next becoming

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due from such bank and upon succeeding assessments until the credit 

is exhausted.

(f) Any insured bank which fails to file any certified statement required 

to be filed by it in connection with determining the amount of any 

assessment payable by the bank to the Corporation may be compelled 

to file such statement by mandatory injunction or other appropriate 

remedy in a suit brought for such purpose by the Corporation against 

the bank and any officer or officers thereof in any court of the United 

States of competent jurisdiction in the District or Territory in which 

such bank is located.

(g) The Corporation, in a suit brought at law or in equity in any 

court of competent jurisdiction, shall be entitled to recover from any 

insured bank the amount of any unpaid assessment lawfully payable 

by such insured bank to the Corporation, whether or not such bank 

shall have filed any such certified statement and whether or not suit 

shall have been brought to compel the bank to file any such statement. 

No action or proceeding shall be brought for the recovery of any assessment due to the Corporation, or for the recovery of any amount paid 

to the Corporation in excess of the amount due to it, unless such action 

or proceeding shall have been brought within five years after the right 

accrued for which the claim is made, except where the insured bank 

has made or filed with the Corporation a false or fraudulent certified 

statement with the intent to evade, in whole or in part, the payment 

of assessment, in which case the claim shall not be deemed to have 

accrued until the discovery by the Corporation that the certified statement is false or fraudulent: Provided, however, That where a cause of 

action has already accrued, and the period herein prescribed within 

which an action may be brought has expired, or will expire within one 

year from the date this amendment becomes effective, an action may 

be brought on such cause of action within one year from the effective 

date of this amendment: And provided further, That no action or proceeding shall be brought for the recovery of any assessment on deposits 

alleged to have been omitted from the assessment base of any insured 

bank for any year prior to 1945 except that any claim of the Corporation 

for the payment of any assessment may be offset by it against any claim 

of the bank for the overpayment of any assessment.

(h) Should any national member bank or any insured national nonmember bank fail to file any certified statement required to be filed 

by such bank under any provision of this section, or fail to pay any 

assessment required to be paid by such bank under any provision of 

this Act, and should the bank not correct such failure within thirty 

days after written notice has been given by the Corporation to an officer 

of the bank, citing this subsection, and stating that the bank has failed 

to file or pay as required by law, all the rights, privileges, and franchises 

of the bank granted to it under the National Bank Act, as amended,

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FEDERAL DEPOSIT INSURANCE ACT 113

the Federal Reserve Act, as amended, or this Act, shall be thereby 

forfeited. Whether or not the penalty provided in this subsection has 

been incurred shall be determined and adjudged in the manner provided 

in the sixth paragraph of section 2 of the Federal Reserve Act, as amended. 

The remedies provided in this subsection and in the two preceding subsections shall not be construed as limiting any other remedies against 

any insured bank, but shall be in addition thereto.

(i) Trust funds held by an insured bank in a fiduciary capacity whether 

held in its trust or deposited in any other department or in another 

bank shall be insured in an amount not to exceed $10,000 for each trust 

estate, and when deposited by the fiduciary bank in another insured 

bank such trust funds shall be similarly insured to the fiduciary bank 

according to the trust estates represented. Notwithstanding any other 

provision of this Act, such insurance shall be separate from and additional to that covering other deposits of the owners of such trust funds 

or the beneficiaries of such trust estates: Provided, That where the 

fiduciary bank deposits any of such trust funds in other insured banks, 

the amount so held by other insured banks on deposit shall not for the 

purpose of any certified statement required under subsections (b) and

(c) of this section be considered to be a deposit liability of the fiduciary 

bank, but shall be considered to be a deposit liability of the bank in 

which such funds are so deposited by such fiduciary bank. The Board 

of Directors shall have power by regulation to prescribe the manner 

of reporting and of depositing such trust funds.

Sec. 8. (a) Any insured bank (except a national member bank or 

State member bank) may, upon not less than ninety days’ written notice 

to the Corporation, and to the Reconstruction Finance Corporation 

if it owns or holds as pledgee any preferred stock, capital notes, or debentures of such bank, terminate its status as an insured bank. Whenever 

the Board of Directors shall find that an insured bank or its directors 

or trustees have continued unsafe or unsound practices in conducting 

the business of such bank, or have knowingly or negligently permitted 

any of its officers or agents to violate any provision of any law or regulation to which the insured bank is subject, the Board of Directors shall 

first give to the Comptroller of the Currency in the case of a national 

bank or a District bank, to the authority having supervision of the 

bank in the case of a State bank, or to the Board of Governors of the 

Federal Reserve System in the case of a State member bank, a statement 

with respect t® such practices or violations for the purpose of securing 

the correction thereof and shall give a copy thereof to the bank. Unless 

such correction shall be made within one hundred and twenty days or 

such shorter period of time as the Comptroller of the Currency, the 

State authority, or Board of Governors of the Federal Reserve System, 

as the case may be, shall require, the Board of Directors, if it shall 

determine to proceed further, shall give to the bank not less than thirty

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114 FEDERAL DEPOSIT INSURANCE CORPORATION

days’ written notice of intention to terminate the status of the bank 

as an insured bank, and shall fix a time and place for a hearing before 

the Board of Directors or before a person designated by it to conduct 

such hearing, at which evidence may be produced, and upon such evidence 

the Board of Directors shall make written findings which shall be conclusive. Unless the bank shall appear at the hearing by a duly authorized 

representative, it shall be deemed to have consented to the termination 

of its status as an insured bank. If the Board of Directors shall find that 

any unsafe or unsound practice or violation specified in such notice has 

been established and has not been corrected within the time above 

prescribed in which to make such corrections, the Board of Directors 

may order that the insured status of the bank be terminated on a date 

subsequent to such finding and to the expiration of the time specified in 

such notice of intention. The Corporation may publish notice of such 

termination and the bank shall give notice of such termination to each 

of its depositors at his last address of record on the books of the bank, 

in such manner and at such time as the Board of Directors may find to 

be necessary and may order for the protection of depositors. After the 

termination of the insured status of any bank under the provisions of 

this subsection, the insured deposits of each depositor in the bank on 

the date of such termination, less all subsequent withdrawals from any 

deposits of such depositor, shall continue for a period of two years to 

be insured, and the bank shall continue to pay to the Corporation assessments as in the case of an insured bank during such period. No additions 

to any such deposits and no new deposits in such bank made after the 

date of such termination shall be insured by the Corporation, and the 

bank shall not advertise or hold itself out as having insured deposits 

unless in the same connection it shall also state with equal prominence 

that such additions to deposits and new deposits made after such date 

are not so insured. Such bank shall, in all other respects, be subject to 

the duties and obligations of an insured bank for the period of two years 

from the date of such termination, and in the event that such bank 

shall be closed on account of inability to meet the demands of its depositors 

within such period of two years, the Corporation shall have the same 

powers and rights with respect to such bank as in case of an insured bank.

(b) Whenever the insured status of a State member bank shall be 

terminated by action of the Board of Directors, the Board of Governors 

of the Federal Reserve System shall terminate its membership in the 

Federal Reserve System in accordance with the provisions of section 9 

of the Federal Reserve Act, and whenever the insured status of a national 

member bank shall be so terminated the Comptroller of the Currency 

shall appoint a receiver for the bank, which shall be the Corporation. 

Except as provided in subsection (b) of section 4, whenever a member 

bank shall cease to be a member of the Federal Reserve System, its 

status as an insuredfobank shall, without notice or other action by the

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FEDERAL DEPOSIT INSURANCE ACT 115

Board of Directors, terminate on the date the bank shall cease to be a 

member of the Federal Reserve System, with like effect as if its insured 

status had been terminated on said date by the Board of Directors after 

proceedings under subsection (a) of this section.

(c) Notwithstanding any other provision of law, whenever the Board 

of Directors shall determine that an insured banking institution is not 

engaged in the business of receiving deposits, other than trust funds 

as herein defined, the Corporation shall notify the banking institution 

that its insured status will terminate at the expiration of the first full 

semiannual assessment period following such notice. A finding by the 

Board of Directors that a banking institution is not engaged in the 

business of receiving deposits, other than such trust funds, shall be 

conclusive. The Board of Directors shall prescribe the notice to be given 

by the banking institution of such termination and the Corporation may 

publish notice thereof. Upon the termination of the insured status of 

any such banking institution, its deposits shall thereupon cease to be 

insured and the banking institution shall thereafter be relieved of all 

future obligations to the Corporation, including the obligation to pay 

future assessments.

(d) Whenever the liabilities of an insured bank for deposits shall 

have been assumed by another insured bank or banks, the insured status 

of the bank whose liabilities are so assumed shall terminate on the date 

of receipt by the Corporation of satisfactory evidence of such assumption 

with like effect as if its insured status had been terminated on said date 

by the Board of Directors after proceedings under subsection (a) of this 

section: Provided, That if the bank whose liabilities are so assumed gives 

to its depositors notice of such assumption within thirty days after such 

assumption takes effect, by publication or by any reasonable means, 

in accordance with regulations to be prescribed by the Board of Directors, 

the insurance of its deposits shall terminate at the end of six months 

from the date such assumption takes effect. Such bank shall be subject 

to the duties and obligations of an insured bank for the period its deposits 

are insured: Provided, That if the deposits are assumed by a newly insured 

bank, the bank whose deposits are assumed shall not be required to pay 

any assessment upon the deposits which have been so assumed after the 

semiannual period in which the assumption takes effect.

Sec. 9. Upon the date of enactment of the Banking Act of 1933, the 

Corporation shall become a body corporate and as such shall have 

power—

First. To adopt and use a corporate seal.

Second. To have succession until dissolved by an Act of Congress.

Third. To make contracts.

Fourth. To sue and be sued, complain and defend, in any court of 

law or equity, State or Federal. All suits of a civil nature at common 

law or in equity to which the Corporation shall be a party shall be deemed

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116 FEDERAL DEPOSIT INSURANCE CORPORATION

to arise under the laws of the United States: Provided, That any such 

suit to which the Corporation is a party in its capacity as receiver of a 

State bank and which involves only the rights or obligations of depositors, 

creditors, stockholders, and such State bank under State law shall not 

be deemed to arise under the laws of the United States. No attachment 

or execution shall be issued against the Corporation or its property 

before final judgment in any suit, action, or proceeding in any State, 

county, municipal, or United States court. The Board of Directors 

shall designate an agent upon whom service of process may be made in 

any State, Territory, or jurisdiction in which any insured bank is located.

Fifth. To appoint by its Board of Directors such officers and employees 

as are not otherwise provided for in this Act, to define their duties, fix 

their compensation, require bonds of them and fix the penalty thereof, 

and to dismiss at pleasure such officers or employees. Nothing in this 

or any other Act shall be construed to prevent the appointment and 

compensation as an officer or employee of the Corporation of any officer 

or employee of the United States in any board, commission, independent 

establishment, or executive department thereof.

Sixth. To prescribe, by its Board of Directors, bylaws not inconsistent 

with law, regulating the manner in which its general business may be 

conducted, and the privileges granted to it by law may be exercised 

and enjoyed.

Seventh. To exercise by its Board of Directors, or duly authorized 

officers or agents, all powers specifically granted by the provisions of 

this Act, and such incidental powers as shall be necessary to carry out 

the powers so granted.

Eighth. To make examinations of and to require information and 

reports from banks, as provided in this Act.

Ninth. To act as receiver.

Tenth. To prescribe by its Board of Directors such rules and regulations as it may deem necessary to carry out the provisions of this Act.

Sec. 10. (a) The Board of Directors shall administer the affairs of 

the Corporation fairly and impartially and without discrimination. 

The Board of Directors of the Corporation shall determine and prescribe 

the manner in which its obligations shall be incurred and its expenses 

allowed and paid. The Corporation shall be entitled to the free use of 

the United States mails in the same manner as the executive departments 

of the Government. The Corporation with the consent of any Federal 

Reserve bank or of any board, commission, independent establishment, 

or executive department of the Government, including any field service 

thereof, may avail itself of the use of information, services, and facilities 

thereof in carrying out the provisions of this Act.

(b) The Board of Directors shall appoint examiners who shall have 

power, on behalf of the Corporation, to examine any insured State 

nonmember bank (except a District bank), any State nonmember

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FEDERAL DEPOSIT INSURANCE ACT 117

bank making application to become an insured bank, and any closed 

insured bank, whenever in the judgment of the Board of Directors an 

examination of the bank is necessary. In addition to the examinations 

provided for in the preceding sentence, such examiners shall have like 

power to make special examination of any State member bank and any 

national bank or District bank, whenever in the judgment of the Board 

of Directors such special examination is necessary to determine the 

condition of any such bank for insurance purposes. Each such examiner 

shall have power to make a thorough examination of all the affairs of 

the bank and in doing so he shall have power to administer oaths and 

to examine and take and preserve the testimony of any of the officers 

and agents thereof, and shall make a full and detailed report of the condition of the bank to the Corporation. The Board of Directors in like 

manner shall appoint claim agents who shall have power to investigate 

and examine all claims for insured deposits and transferred deposits. 

Each claim agent shall have power to administer oaths and to examine 

under oath and take and preserve the testimony of any persons relating 

to such claims.

(c) For the purpose of any hearing under this Act, the Board of 

Directors, any member thereof or any person designated by the Board 

of Directors to conduct any such hearing, is empowered to administer 

oaths and affirmations, subpena any officer or employee of the insured 

bank, compel his attendance, take evidence, take depositions and require 

the production of any books, records, or other papers of the insured 

bank which are relevant or material to the inquiry. For the purpose 

of any hearing, examination, or investigation under this Act, the Board 

of Directors may apply to any judge or clerk of any court of the United 

States within the jurisdiction of which such hearing, examination, or 

investigation is carried on, or where such person resides or carries on 

business, to issue a subpena commanding each person to whom it is 

directed to attend and give testimony or for the taking of his deposition 

and to produce books, records, or other papers relevant or material to 

such hearing, examination, or investigation at a time and place and before 

a person therein specified. Such attendance of witnesses and the production of any such papers may be required from any place in any State or 

in any Territory or other place subject to the jurisdiction of the United 

States at any designated place where such a hearing is being held or 

such examination or investigation is being made: Provided, however, 

That the production of a person’s documents at any place other than 

his place of business shall not be required in any case in which, prior to 

the return date specified in the subpena with respect thereto, such person 

either has furnished as directed a copy of such documents (certified by 

such person under oath to be a true and correct copy) or has entered into 

a stipulation with any authorized representative of the Corporation as 

to the information contained in such documents. Witnesses subpenaed

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118 FEDERAL DEPOSIT INSURANCE CORPORATION

under this section shall be paid the same fees and mileage that are paid 

witnesses in the district courts of the United States.

(d) In cases of refusal to obey a subpena issued to, or contumacy 

by, any person, the Board of Directors may invoke the aid of any court 

of the United States within the jurisdiction of which such hearing, 

examination or investigation is carried on, or where such person resides 

or carries on business, in requiring the attendance and testimony of 

witnesses and the production of books, records, or other papers. And 

such court may issue an order requiring such person to appear before the 

Board of Directors or member or person designated by the Board of 

Directors, there to produce records, if so ordered, or to give testimony 

touching the matter in question; and any failure to obey such order of 

the court may be punished by such court as a contempt thereof. All process 

in any such case may be served in the judicial district whereof such person 

is an inhabitant or carries on business or wherever he may be found. 

No person shall be excused from attending and testifying or from producing books, records, or other papers in obedience to a subpena issued 

under the authority of this Act on the ground that the testimony or 

evidence, documentary or otherwise, required of him may tend to incriminate him or subject him to penalty or forfeiture; but no individual 

shall be prosecuted or subject to any penalty or forfeiture for or on account of any transaction, matter, or thing concerning which he is compelled to testify or produce evidence, documentary or otherwise, after 

having claimed his privilege against self-incrimination, except that such 

individual so testifying shall not be exempt from prosecution and punishment for perjury committed in so testifying.

(e) Each insured State nonmember bank (except a District bank) shall 

make to the Corporation reports of condition in such form and at such 

times as the Board of Directors may require. The Board of Directors may 

require such reports to be published in such manner, not inconsistent 

with any applicable law, as it may direct. Every such bank which fails 

to make or publish any such report within such time, not less than five 

days, as the Board of Directors may require, shall be subject to a penalty 

of not more than $100 for each day of such failure recoverable by the 

Corporation for its use.

(f) The Corporation shall have access to reports of examination 

made by, and reports of condition made to, the Comptroller of the 

Currency or any Federal Reserve bank, may accept any report made 

by or to any commission, board, or authority having supervision of 

a State nonmember bank (except a District bank), and may furnish 

to the Comptroller of the Currency, to any Federal Reserve bank, and 

to any such commission, board, or authority, reports of examinations 

made on behalf of, and reports of condition made to, the Corporation.

(g) The Corporation may cause any and all records, papers, or documents kept by it or in its possession or custody to be photographed or

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microphotographed or otherwise reproduced upon film, which photographic film shall comply with the minimum standards of quality approved for permanent photographic records by the National Bureau 

of Standards. Such photographs, microphotographs, or photographic 

film or copies thereof shall be deemed to be an original record for all 

purposes, including introduction in evidence in all State and Federal 

courts or administrative agencies and shall be admissible to prove any 

act, transaction, occurrence, or event therein recorded. Such photographs, microphotographs, or reproductions shall be preserved in such 

manner as the Board of Directors of the Corporation shall prescribe and 

the original records, papers, or documents may be destroyed or otherwise 

disposed of as the Board shall direct.

Sec. 11. (a) The Temporary Federal Deposit Insurance Fund and 

the Fund For Mutuals heretofore created pursuant to the provisions 

of section 12B of the Federal Reserve Act, as amended, are hereby 

consolidated into a Permanent Insurance Fund for insuring deposits, 

and the assets therein shall be held by the Corporation for the uses 

and purposes of the Corporation: Provided, That the obligations to 

and rights of the Corporation, depositors, banks, and other persons 

arising out of any event or transaction prior to the effective date of 

this amendment shall remain unimpaired. On and after August 23, 

1935, the Corporation shall insure the deposits of all insured banks 

as provided in this Act: Provided further, That the insurance shall apply 

only to deposits of insured banks which have been made available since 

March 10, 1933, for withdrawal in the usual course of the banking 

business: Provided further, That if any insured bank shall, without 

the consent of the Corporation, release or modify restrictions on or 

deferments of deposits which had not been made available for withdrawal in the usual course of the banking business on or before August 

23, 1935, such deposits shall not be insured. The maximum amount 

of the insured deposit of any depositor shall be $10,000: And provided

further, That in the case of banks closing prior to the effective date 

of this amendment, the maximum amount of the insured deposit of 

any depositor shall be $5,000.

(b) For the purposes of this Act an insured bank shall be deemed 

to have been closed on account of inability to meet the demands of its 

depositors in any case in which it has been closed for the purpose of 

liquidation without adequate provision being made for payment of 

its depositors.

(c) Notwithstanding any other provision of law, whenever the 

Comptroller of the Currency shall appoint a receiver other than a conservator of any insured national bank or insured District bank, or of 

any noninsured national bank or District bank hereafter closed, he shall 

appoint the Corporation receiver for such closed bank.

(d) Notwithstanding any other provision of law, it shall be the duty

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of the Corporation as such receiver to cause notice to be given, by advertisement in such newspapers as it may direct, to all persons having 

claims against such closed bank pursuant to section 5235 of the Revised 

Statutes (U.S.C., title 12, sec. 193); to realize upon the assets of such 

closed bank, having due regard to the condition of credit in the locality; 

to enforce the individual liability of the stockholders and directors 

thereof; and to wind up the affairs of such closed bank in conformity 

with the provisions of law relating to the liquidation of closed national 

banks, except as herein otherwise provided. The Corporation as such 

receiver shall pay to itself for its own account such portion of the amounts 

realized from such liquidation as it shall be entitled to receive on account 

of its subrogation to the claims of depositors, and it shall pay to depositors 

and other creditors the net amounts available for distribution to them. 

The Corporation as such receiver, however, may, in its discretion, pay 

dividends on proved claims at any time after the expiration of the period 

of advertisement made pursuant to the aforesaid section of the Revised 

Statutes, and no liability shall attach to the Corporation itself or as 

such receiver by reason of any such payment for failure to pay dividends 

to a claimant whose claim is not proved at the time of any such payment. 

With respect to any such closed bank, the Corporation as such receiver 

shall Imve all the rights, powers, and privileges now possessed by or 

hereafter granted by law to a receiver of a national bank or District 

bank and notwithstanding any other provision of law in the exercise 

of such rights, powers, and privileges the Corporation shall not be subject 

to the direction or supervision of the Secretary of the Treasury or the 

Comptroller of the Currency.

(e) Whenever any insured State bank (except a District bank) shall 

have been closed by action of its board of directors or by the authority 

having supervision of such bank, as the case may be, on account of 

inability to meet the demands of its depositors, the Corporation shall 

accept appointment as receiver thereof, if such appointment is tendered 

by the authority having supervision of such bank and is authorized or 

permitted by State law. With respect to any such insured State bank, 

the Corporation as such receiver shall possess all the rights, powers 

and privileges granted by State law to a receiver of a State bank.

(f) Whenever an insured bank shall have been closed on account 

of inability to meet the demands of its depositors, payment of the insured 

deposits in such bank shall be made by the Corporation as soon as possible, 

subject to the provisions of subsection (g) of this section either (1) by 

cash or (2) by making available to each depositor a transferred deposit 

in a new bank in the same community or in another insured bank in an 

amount equal to the insured deposit of such depositor: Provided, That 

the Corporation, in its discretion, may require proof of claims to be filed 

before paying the insured deposits, and that in any case where the 

Corporation is not satisfied as to the validity of a claim for an insured

120 FEDERAL DEPOSIT INSURANCE CORPORATION

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deposit, it may require the final determination of a court of competent 

jurisdiction before paying such claim.

(g) In the case of a closed national bank or District bank, the 

Corporation, upon the payment to any depositor as provided in subsection (f) of this section, shall be subrogated to all rights of the depositor 

against the closed bank to the extent of such payment. In the case of 

any other closed insured bank, the Corporation shall not make any 

payment to any depositor until the right of the Corporation to be subrogated to the rights of such depositor on the same basis as provided 

in the case of a closed national bank under this Act shall have been 

recognized either by express provision of State law, by allowance of 

claims by the authority having supervision of such bank, by assignment 

of claims by depositors, or by any other effective method. In the case 

of any closed insured bank, such subrogation shall include the right 

on the part of the Corporation to receive the same dividends from the 

proceeds of the assets of such closed bank and recoveries on account 

of stockholders’ liability as would have been payable to the depositor 

on a claim for the insured deposit, but such depositor shall retain his 

claim for any uninsured portion of his deposit: Provided, That, with 

respect to any bank which closes after May 25, 1938, the Corporation 

shall waive, in favor only of any person against whom stockholders’ 

individual liability may be asserted, any claim on account of such liability 

in excess of the liability, if any, to the bank or its creditors, for the amount 

unpaid upon his stock in such bank; but any such waiver shall be effected 

in such manner and on such terms and conditions as will not increase 

recoveries or dividends on account of claims to which the Corporation 

is not subrogated: Provided further, That the rights of depositors and 

other creditors of any State bank shall be determined in accordance with 

the applicable provisions of State law.

(h) As soon as possible after the closing of an insured bank, the Corporation, if it finds that it is advisable and in the interest of the depositors 

of the closed bank or the public, shall organize a new national bank to 

assume the insured deposits of such closed bank and otherwise to perform temporarily the functions hereinafter provided for. The new bank 

shall have its place of business in the same community as the closed bank.

(i) The articles of association and the organization certificate of 

the new bank shall be executed by representatives designated by the 

Corporation. No capital stock need be paid in by the Corporation. 

The new bank shall not have a board of directors, but shall be managed 

by an executive officer appointed by the Board of Directors of the Corporation who shall be subject to its directions. In all other respects the 

new bank shall be organized in accordance with the then existing provisions of law relating to the organization of national banking associations. 

The new bank may, with the approval of the Corporation, accept new 

deposits which shall be subject to withdrawal on demand and which,

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except where the new bank is the only bank in the community, shall 

not exceed $10,000 from any depositor. The new bank, without application to or approval by the Corporation, shall be an insured bank and 

shall maintain on deposit with the Federal Reserve bank of its district 

reserves in the amount required by law for member banks, but it shall 

not be required to subscribe for stock of the Federal Reserve bank. 

Funds of the new bank shall be kept on hand in cash, invested in obligations of the United States, or in obligations guaranteed as to principal 

and interest by the United States, or deposited with the Corporation, 

with a Federal Reserve bank, or, to the extent of the insurance coverage 

thereon, with an insured bank. The new bank, unless otherwise authorized 

by the Comptroller of the Currency, shall transact no business except 

that authorized by this Act and as may be incidental to its organization. 

Notwithstanding any other provision of law the new bank, its franchise, 

property, and income shall be exempt from all taxation now or hereafter 

imposed by the United States, by any Territory, dependency, or possession thereof, or by any State, county, municipality, or local taxing 

authority.

(j) Upon the organization of a new bank, the Corporation shall promptly 

make available to it an amount equal to the estimated insured deposits 

of such closed bank plus the estimated amount of the expenses of operating 

the new bank, and shall determine as soon as possible the amount due 

each depositor for his insured deposit in the closed bank, and the total 

expenses of operation of the new bank. Upon such determination, the 

amounts so estimated and made available shall be adjusted to conform 

to the amounts so determined. Earnings of the new bank shall be paid 

over or credited to the Corporation in such adjustment. If any new 

bank, during the period it continues its status as such, sustains any 

losses with respect to which it is not effectively protected except by reason 

of being an insured bank, the Corporation shall furnish to it additional 

funds in the amount of such losses. The new bank shall assume as transferred deposits the payment of the insured deposits of such closed bank 

to each of its depositors. Of the amounts so made available, the Corporation shall transfer to the new bank, in cash, such sums as may be 

necessary to enable it to meet its expenses of operation and immediate 

cash demands on such transferred deposits, and the remainder of such 

amounts shall be subject to withdrawal by the new bank on demand.

(k) Whenever in the judgment of the Board of Directors it is desirable 

to do so, the Corporation shall cause capital stock of the new bank to 

be offered for sale on such terms and conditions as the Board of Directors 

shall deem advisable in an amount sufficient, in the opinion of the Board 

of Directors, to make possible the conduct of the business of the new 

bank on a sound basis, but in no event less than that required by section 

5138 of the Revised Statutes, as amended (U. S. C., title 12, sec. 51), 

for the organization of a national bank in the place where such new

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bank is located. The stockholders of the closed insured bank shall be 

given the first opportunity to purchase any shares of common stock so 

offered. Upon proof that an adequate amount of capital stock in the 

new bank has been subscribed and paid for in cash, the Comptroller 

of the Currency shall require the articles of association and the organization certificate to be amended to conform to the requirements for the 

organization of a national bank, and thereafter, when the requirements 

of law with respect to the organization of a national bank have been 

complied with, he shall issue to the bank a certificate of authority to 

commence business, and thereupon the bank shall cease to have the 

status of a new bank, shall be managed by directors elected by its own 

shareholders and may exercise all the powers granted by law, and it 

shall be subject to all the provisions of law relating to national banks. 

Such bank shall thereafter be an insured national bank, without certification to or approval by the Corporation.

(1) If the capital stock of the new bank is not offered for sale, or if 

an adequate amount of capital for such new bank is not subscribed and 

paid for, the Board of Directors may offer to transfer its business to any 

insured bank in the same community which will take over its assets, 

assume its liabilities, and pay to the Corporation for such business such 

amount as the Board of Directors may deem adequate; or the Board 

of Directors in its discretion may change the location of the new bank 

to the office of the Corporation or to some other place or may at any time 

wind up its affairs as herein provided. Unless the capital stock of the 

new bank is sold or its assets are taken over and its liabilities are assumed 

by an insured bank as above provided within two years from the date 

of its organization, the Corporation shall wind up the affairs of such 

bank, after giving such notice, if any, as the Comptroller of the Currency 

may require, and shall certify to the Comptroller of the Currency the 

termination of the new bank. Thereafter the Corporation shall be liable 

for the obligations of such bank and shall be the owner of its assets. The 

provisions of sections 5220 and 5221 of the Revised Statutes (U. S. C., 

title 12, secs. 181 and 182) shall not apply to such new banks.

Sec. 12. (a) Notwithstanding any other provision of law, the Corporation as receiver of a closed national bank or District bank shall not be 

required to furnish bond and shall have the right to appoint an agent 

or agents to assist it in its duties as such receiver, and all fees, compensation, and expenses of liquidation and administration thereof shall be 

fixed by the Corporation, and may be paid by it out of funds coming into 

its possession as such receiver.

(b) Payment of an insured deposit to any person by the Corporation 

shall discharge the Corporation, and payment of a transferred deposit 

to any person by the new bank or by an insured bank in which a transferred deposit has been made available shall discharge the Corporation 

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124 FEDERAL DEPOSIT INSURANCE CORPORATION

ment to such person by the closed bank would have discharged it from 

liability for the insured deposit.

(c) Except as otherwise prescribed by the Board of Directors, neither 

the Corporation nor such new bank or other insured bank shall be required 

to recognize as the owner of any portion of a deposit appearing on the 

records of the closed bank under a name other than that of the claimant, 

any person whose name or interest as such owner is not disclosed on the 

records of such closed bank as part owner of said deposit, if such recognition would increase the aggregate amount of the insured deposits in 

such closed bank.

(d) The Corporation may withhold payment of such portion of the 

insured deposit of any depositor in a closed bank as may be required 

to provide for the payment of any liability of such depositor as a stockholder of the closed bank, or of any liability of such depositor to the 

closed bank or its receiver, which is not offset against a claim due from 

such bank, pending the determination and payment of such liability 

by such depositor or any other person liable therefor.

(e) If, after the Corporation shall have given at least three months’ 

notice to the depositor by mailing a copy thereof to his last-known 

address appearing on the records of the closed bank, any depositor in 

the closed bank shall fail to claim his insured deposit from the Corporation within eighteen months after the appointment of the receiver 

for the closed bank, or shall fail within such period to claim or arrange 

to continue the transferred deposit with the new bank or with the other 

insured bank which assumes liability therefor, all rights of the depositor 

against the Corporation with respect to the insured deposit, and against 

the new bank and such other insured bank with respect to the transferred 

deposit, shall be barred, and all rights of the depositor against the closed 

bank and its shareholders, or the receivership estate to which the Corporation may have become subrogated, shall thereupon revert to the 

depositor. The amount of any transferred deposits not claimed within 

such eighteen months’ period, shall be refunded to the Corporation.

Sec. 13. (a) Money of the Corporation not otherwise employed shall 

be invested in obligations of the United States or in obligations guaranteed 

as to principal and interest by the United States: Provided, That the 

Corporation shall not sell or purchase any such obligations for its own 

account and in its own right and interest, at any one time aggregating 

in excess of $100,000, without the approval of the Secretary of the 

Treasury: And provided further, That the Secretary of the Treasury 

may waive the requirement of his approval with respect to any transaction or classes of transactions subject to the provisions of this subsection 

for such period of time and under such conditions as he may determine.

(b) The banking or checking accounts of the Corporation shall be 

kept with the Treasurer of the United States, or, with the approval of 

the Secretary of the Treasury, with a Federal Reserve bank:, or with

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a bank designated as a depositary or fiscal agent of the United States: 

Provided, That the Secretary of the Treasury may waive the requirements of this subsection under such conditions as he may determine: 

And provided further, That this subsection shall not apply to the establishment and maintenance in any bank for temporary purposes of banking 

and checking accounts not in excess of $50,000 in any one bank, or to 

the establishment and maintenance in any bank of any banking and 

checking accounts to facilitate the payment of insured deposits, or the 

making of loans to, or the purchase of assets of, insured banks. When 

designated for that purpose by the Secretary of the Treasury, the Corporation shall be a depositary of public moneys, except receipts from 

customs, under such regulations as may be prescribed by the said Secretary, and may also be employed as a financial agent of the Government. 

It shall perform all such reasonable duties as depositary of public moneys 

and financial agent of the Government as may be required of it.

(c) In order to reopen a closed insured bank or, when the Corporation 

has determined that an insured bank is in danger of closing, in order 

to prevent such closing, the Corporation, in the discretion of its Board 

of Directors, is authorized to make loans to, or purchase the assets of, 

or make deposits in, such insured bank, upon such terms and conditions 

as the Board of Directors may prescribe, when in the opinion of the 

Board of Directors the continued operation of such bank is essential to 

provide adequate banking service in the community. Such loans and 

deposits may be in subordination to the rights of depositors and other 

creditors.

(d) Receivers or liquidators of insured banks closed on account of 

inability to meet the demands of their depositors shall be entitled to 

offer the assets of such banks for sale to the Corporation or as security 

for loans from the Corporation, upon receiving permission from the 

appropriate State authority in accordance with express provisions of 

State law in the case of insured State banks. The proceeds of every 

such sale or loan shall be utilized for the same purposes and in the same 

manner as other funds realized from the liquidation of the assets of 

such banks. In any case where prior to the effective date of this amendment, the Comptroller of the Currency has appointed a receiver of a 

closed national bank other than the Corporation, he may, in his discretion, pay dividends on proved claims at any time after the expiration 

of the period of advertisement made pursuant to section 5235 of the 

Revised Statutes (U. S. C., title 12, sec. 193), and no liability shall attach 

to the Comptroller of the Currency or to the receiver of any such national 

bank by reason of any such payment for failure to pay dividends to a 

claimant whose claim is not proved at the time of any such payment. 

The Corporation, in its discretion, may make loans on the security of 

or may purchase and liquidate or sell any part of the assets of an insured 

bmk which is now or may hereafter be closed on account of inability

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to meet the demands of its depositors, but in any case in which the 

Corporation is acting as receiver of a closed insured bank, no such loan 

or purchase shall be made without the approval of a court of competent 

jurisdiction.

(e) Whenever in the judgment of the Board of Directors such action 

will reduce the risk or avert a threatened loss to the Corporation and 

will facilitate a merger or consolidation of an insured bank with another 

insured bank, or will facilitate the sale of the assets of an open or closed 

insured bank to and assumption of its liabilities by another insured bank, 

the Corporation may, upon such terms and conditions as it may determine, 

make loans secured in whole or in part by assets of an open or closed 

insured bank, which loans may be in subordination to the rights of 

depositors and other creditors, or the Corporation may purchase any 

such assets or may guarantee any other insured bank against loss by 

reason of its assuming the liabilities and purchasing the assets of an 

open or closed insured bank. Any insured national bank or District bank, 

or the Corporation as receiver thereof, is authorized to contract for such 

sales or loans and to pledge any assets of the bank to secure such loans.

No agreement which tends to diminish or defeat the right, title or 

interest of the Corporation in any asset acquired by it under this section, 

either as security for a loan or by purchase, shall be valid against the 

Corporation unless such agreement (1) shall be in writing, (2) shall have 

been executed by the bank and the person or persons claiming an adverse 

interest thereunder, including the obligor, contemporaneously with the 

acquisition of the asset by the bank, (3) shall have been approved by 

the board of directors of the bank or its loan committee, which approval 

shall be reflected in the minutes of said board or committee, and (4) 

shall have been, continuously, from the time of its execution, an official 

record of the bank.

(f) Prior to July 1, 1951, the Corporation shall pay out of its capital 

account to the Secretary of the Treasury an amount equal to 2 per 

centum simple interest per annum on amounts advanced to the Corporation on stock subscriptions by the Secretary of the Treasury and 

the Federal Reserve banks, from the time of such advances until the 

amounts thereof were repaid. The amount payable hereunder shall be 

paid in two equal installments, the first installment to be paid prior 

to December 31, 1950.

Sec. 14. The Corporation is authorized to borrow from the Treasury, 

and the Secretary of the Treasury is authorized and directed to loan to 

the Corporation on such terms as may be fixed by the Corporation and 

the Secretary, such funds as in the judgment of the Board of Directors 

of the Corporation are from time to time required for insurance purposes, 

not exceeding in the aggregate $3,000,000,000 outstanding at any one 

time: Provided, That the rate of interest to be charged in connection 

with any loan made pursuant to this section shall not be less than the

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current average rate on outstanding marketable and nonmarketable 

obligations of the United States as of the last day of the month preceding 

the making of such loan. For such purpose the Secretary of the Treasury 

is authorized to use as a public-debt transaction the proceeds of the sale 

of any securities hereafter issued under the Second Liberty Bond Act, 

as amended, and the purposes for which securities may be issued under 

the Second Liberty Bond Act, as amended, are extended to include 

such loans. Any such loan shall be used by the Corporation solely in 

carrying out its functions with respect to such insurance. All loans and 

repayments under this section shall be treated as public-debt transactions of the United States.

Sec. 15. All notes, debentures, bonds, or other such obligations issued 

by the Corporation shall be exempt, both as to principal and interest, 

from all taxation (except estate and inheritance taxes) now or hereafter 

imposed by the United States, by any Territory, dependency, or possession thereof, or by any State, county, municipality, or local taxing 

authority: Provided, That interest upon or any income from any such 

obligations and gain from the sale or other disposition of such obligations 

shall not have any exemption, as such, and loss from the sale or other 

disposition of such obligations shall not have any special treatment, 

as such, under the Internal Revenue Code, or laws amendatory or 

supplementary thereto. The Corporation, including its franchise, its 

capital, reserves, and surplus, and its income, shall be exempt from all 

taxation now or hereafter imposed by the United States, by any Territory, 

dependency, or possession thereof, or by any State, county, municipality, 

or local taxing authority, except that any real property of the Corporation 

shall be subject to State, Territorial, county, municipal, or local taxation 

to the same extent according to its value as other real property is taxed.

Sec. 16. In order that the Corporation may be supplied with such 

forms of notes, debentures, bonds, or other such obligations as it may 

need for issuance under this Act, the Secretary of the Treasury is authorized to prepare such forms as shall be suitable and approved by the 

Corporation, to be held in the Treasury subject to delivery, upon order 

of the Corporation. The engraved plates, dies, bed pieces, and other 

material executed in connection therewith shall remain in the custody 

of the Secretary of the Treasury. The Corporation shall reimburse the 

Secretary of the Treasury for any expenses incurred in the preparation, 

custody, and delivery of such notes, debentures, bonds, or other such 

obligations.

Sec. 17. (a) The Corporation shall annually make a report of its 

operations to the Congress as soon as practicable after the 1st day of 

January in each year.

(b) The financial transactions of the Corporation shall be audited 

by the General Accounting Office in accordance with the principles and 

procedures applicable to commercial corporate transactions and under

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such rules and regulations as may be prescribed by the Comptroller 

General of the United States. The audit shall be conducted at the place 

or places where accounts of the Corporation are normally kept. The 

representatives of the General Accounting Office shall have access to all 

books, accounts, records, reports, files, and all other papers, things, or 

property belonging to or in use by the Corporation pertaining to its 

financial transactions and necessary to facilitate the audit, and they 

shall be afforded full facilities for verifying transactions with the balances 

or securities held by depositaries, fiscal agents, and custodians. All such 

books, accounts, records, reports, files, papers, and property of the 

Corporation shall remain in possession and custody of the Corporation. 

The audit shall begin with financial transactions occurring on and after 

August 31, 1948.

(c) A report of the audit for each fiscal year ending on June 30 shall 

be made by the Comptroller General to the Congress not later than 

January 15 following the close of such fiscal year. On or before December 

15 following such fiscal year the Comptroller General shall furnish the 

Corporation a short form report showing the financial position of the 

Corporation at the close of the fiscal year. The report to the Congress 

shall set forth the scope of the audit and shall include a statement of 

assets and liabilities and surplus or deficit; a statement of surplus or 

deficit analysis; a statement of income and expenses; a statement of 

sources and application of funds and such comments and information 

as may be deemed necessary to inform Congress of the financial operations and condition of the Corporation, together with such recommendations with respect thereto as the Comptroller General may deem advisable. 

The report shall also show specifically any program, expenditure, or 

other financial transaction or undertaking observed in the course of the 

audit, which, in the opinion of the Comptroller General, has been carried 

on or made without authority of law. A copy of each report shall be 

furnished to the President, to the Secretary of the Treasury, and to 

the Corporation at the time submitted to the Congress.

(d) For the purpose of conducting such audit the Comptroller General 

is authorized in his discretion to employ by contract, without regard 

to section 3709 of the Revised Statutes, professional services of firms 

and organizations of certified public accountants, with the concurrence 

of the Corporation, for temporary periods or for special purposes. The 

Corporation shall reimburse the General Accounting Office for the cost 

of any such audit as billed therefor by the Comptroller General, and 

the General Accounting Office shall deposit the sums so reimbursed into 

the Treasury as miscellaneous receipts.

Sec. 18. (a) Every insured bank shall display at each place of business 

maintained by it a sign or signs, and shall include a statement to the 

effect that its deposits are insured by the Corporation in all of its advertisements: Provided, That the Board of Directors may exempt from

128 FEDERAL DEPOSIT INSURANCE CORPORATION

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this requirement advertisements which do not relate to deposits or when 

it is impractical to include such statement therein. The Board of Directors 

shall prescribe by regulation the forms of such signs and the manner 

of display and the substance of such statements and the manner of use. 

For each day an insured bank continues to violate any provisions of this 

subsection or any lawful provisions of said regulations, it shall be subject 

to a penalty of not more than $100, which the Corporation may recover 

for its use.

(b) No insured bank shall pay any dividends on its capital stock or 

interest on its capital notes or debentures (if such interest is required 

to be paid only out of net profits) or distribute any of its capital assets 

while it remains in default in the payment of any assessment due to the 

Corporation; and any director or officer of any insured bank who participates in the declaration or payment of any such dividend or interest 

or in any such distribution shall, upon conviction, be fined not more 

than $1,000 or imprisoned not more than one year, or both: Provided, 

That, if such default is due to a dispute between the insured bank and 

the Corporation over the amount of such assessment, this subsection 

shall not apply, if such bank shall deposit security satisfactory to the 

Corporation for payment upon final determination of the issue.

(c) Without prior written consent by the Corporation, no insured 

bank shall (1) merge or consolidate with any noninsured bank or institution or convert into a noninsured bank or institution or (2) assume 

liability to pay any deposits made in, or similar liabilities of, any noninsured bank or institution or (3) transfer assets to any noninsured bank 

or institution in consideration of the assumption of liabilities for any 

portion of the deposits made in such insured bank. No insured bank 

shall convert into an insured State bank if its capital stock, or its surplus 

will be less than the capital stock or surplus, respectively, of the converting 

bank at the time of the shareholders’ meeting approving such conversion, 

without prior written consent by the Comptroller of the Currency if the 

resulting bank is to be a District bank, or by the Board of Governors 

of the Federal Reserve System if the resulting bank is to be a State 

member bank (except a District bank), or by the Corporation if the 

resulting bank is to be a State nonmember insured bank (except a District 

bank). No insured bank shall (i) merge or consolidate with an insured 

State bank under the charter of a State bank or (ii) assume liability 

to pay any deposits made in another insured bank, if the capital stock 

or surplus of the resulting or assuming bank will be less than the aggregate 

capital stock or aggregate surplus, respectively, of all the merging or 

consolidating banks or of all the parties to the assumption of liabilities, 

at the time of the shareholders’ meetings which authorized the merger 

or consolidation or at the time of the assumption of liabilities, unless 

the Comptroller of the Currency shall give prior written consent if the 

assuming bank is to be a national bank or the assuming or resulting

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130 FEDERAL DEPOSIT INSURANCE CORPORATION

bank is to be a District bank; or unless the Board of Governors of the 

Federal Reserve System gives prior written consent if the assuming or 

resulting bank is to be a State member bank (except a District bank); 

or unless the Corporation gives prior written consent if the assuming 

or resulting bank is to be a nonmember insured bank (except a District 

bank). No insured State nonmember bank (except a District bank) 

shall, without the prior consent of the Corporation, reduce the amount 

or retire any part of its common or preferred capital stock, or retire any 

part of its capital notes or debentures.

(d) No State nonmember insured bank (except a District bank) 

shall establish and operate any new branch unless it shall have the 

prior written consent of the Corporation, and no State nonmember 

insured bank (except a District bank) shall move its main office or any 

branch from one location to another without such consent. The factors 

to be considered in granting or withholding the consent of the Corporation 

under this subsection shall be those enumerated in section 6 of this Act.

(e) The Corporation may require any insured bank to provide protection and indemnity against burglary, defalcation, and other similar 

insurable losses. Whenever any insured bank refuses to comply with any 

such requirement the Corporation may contract for such protection and 

indemnity and add the cost thereof to the assessment otherwise payable 

by such bank.

(f) Whenever any insured bank (except a national bank or a District 

bank), after written notice of the recommendations of the Corporation 

based on a report of examination of such bank by an examiner of the 

Corporation, shall fail to comply with such recommendations within 

one hundred and twenty days after such notice, the Corporation shall 

have the power, and is hereby authorized, to publish only such part 

of such report of examination as relates to any recommendation not 

complied with: Provided, That notice of intention to make such publication shall be given to the bank at least ninety days before such publication is made.

(g) The Board of Directors shall by regulation prohibit the payment 

of interest on demand deposits in insured nonmember banks and for 

such purpose it may define the term “ demand deposits” ; but such exceptions from this prohibition shall be made as are now or may hereafter 

be prescribed with respect to deposits payable on demand in member 

banks by section 19 of the Federal Reserve Act, as amended, or by 

regulation of the Board of Governors of the Federal Reserve System. 

The Board of Directors shall from time to time limit by regulation the 

rates of interest or dividends which may be paid by insured nonmember 

banks on time and savings deposits, but such regulations shall be consistent with the contractual obligations of such banks to their depositors. 

For the purpose of fixing such rates of interest or dividends, the Board 

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FEDERAL DEPOSIT INSURANCE ACT 131

ment on time and savings deposits having different maturities, or subject 

to different conditions respecting withdrawal or repayment, or subject 

to different conditions by reason of different locations, or according to 

the varying discount rates of member banks in the several Federal 

Reserve districts. The Board of Directors shall by regulation define 

what constitutes time and savings deposits in an insured nonmember 

bank. Such regulations shall prohibit any insured nonmember bank 

from paying any time deposit before its maturity except upon such 

conditions and in accordance with such rules and regulations as may be 

prescribed by the Board of Directors, and from waiving any requirement 

of notice before payment of any savings deposit except as to all savings 

deposits having the same requirement. For each violation of any provision 

of this subsection or any lawful provision of such regulations relating 

to the payment of interest or dividends on deposits or to withdrawal 

of deposits, the offending bank shall be subject to a penalty of not more 

than $100, which the Corporation may recover for its use.

(h) Any insured bank which willfully fails or refuses to file any certified 

statement or pay any assessment required under this Act shall be subject 

to a penalty of not more than $100 for each day that such violations 

continue, which penalty the Corporation may recover for its use: Provided,

That this subsection shall not be applicable under the circumstances 

stated in the proviso of subsection (b) of this section.

Sec. 19. Except with the written consent of the Corporation, no 

person shall serve as a director, officer, or employee of an insured bank 

who has been convicted, or who is hereafter convicted, of any criminal 

offense involving dishonesty or a breach of trust. For each willful violation of this prohibition, the bank involved shall be subject to a penalty 

of not more than $100 for each day this prohibition is violated, which 

the Corporation may recover for its use.

Sec. 20. It is not the purpose of this Act to discriminate in any manner 

against State nonmember banks and in favor of national or member 

banks; but the purpose is to provide all banks with the same opportunity 

to obtain and enjoy the benefits of this Act. No bank shall be discriminated against because its capital stock is less than the amount required 

for eligibility for admission into the Federal Reserve System.

Sec. 21. The provisions of this Act limiting the insurance of the deposits 

of any depositor to a maximum less than the full amount shall be independent and separable from each and all of the provisions of this Act.

Sec. 3. (a) The third paragraph of section 709, title 18, United States 

Code, is amended to read as follows:

“Whoever, except as expressly authorized by Federal law, uses the 

words ‘Federal Deposit’, ‘Federal Deposit Insurance’, or ‘Federal Deposit 

Insurance Corporation’ or a combination of any three of these words, 

as the name or a part thereof under which he or it does business, or

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132 FEDERAL DEPOSIT INSURANCE CORPORATION

advertises or otherwise represents falsely by any device whatsoever 

that his or its deposit liabilities, obligations, certificates, or shares are 

insured or guaranteed by the Federal Deposit Insurance Corporation, 

or by the United States or by any instrumentality thereof, or whoever 

advertises that his or its deposits, shares, or accounts are federally insured, or falsely advertises or otherwise represents by any device whatsoever the extent to which or the manner in which the deposit liabilities 

of an insured bank or banks are insured by the Federal Deposit Insurance 

Corporation; or” .

(b) The amendment made by subsection (a) of this section shall 

become effective on January 1, 1951.

Sec. 4. Section 220, title 18, United States Code, is amended to read 

as follows:

“ Whoever, being an officer, director, employee, agent, or attorney 

of any bank, the deposits of which are insured by the Federal Deposit 

Insurance Corporation, of a Federal intermediate credit bank, or of a 

National Agricultural Credit Corporation, except as provided by law, 

stipulates for or receives or consents or agrees to receive any fee, commission, gift, or thing of value, from any person, firm, or corporation, 

for procuring or endeavoring to procure for such person, firm, or corporation, or for any other person, firm, or corporation, from any such 

bank or corporation, any loan or extension or renewal of loan or substitution of security, or the purchase or discount or acceptance of any 

paper, note, draft, check, or bill of exchange by any such bank or corporation, shall be fined not more than $5,000 or imprisoned not more 

than one year or both.”

Sec. 5. Subsection (b) of section 405 of Title IV of the National 

Housing Act, as amended, is amended to read as follows:

“ (b) In the event of a default by any insured institution, payment 

of each insured account in such insured institution which is surrendered 

and transferred to the Corporation shall be made by the Corporation 

as soon as possible either (1) by cash or (2) by making available to each 

insured member a transferred account in a new insured institution in 

the same community or in another insured institution in an amount 

equal to the insured account of such insured member: Provided, That 

the Corporation, in its discretion, may require proof of claims to be 

filed before paying the insured accounts, and that in any case where 

the Corporation is not satisfied as to the validity of a claim for an insured 

account, it may require the final determination of a court of competent 

jurisdiction before paying such claim.”

Approved September 21, 1950.

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LAWS APPLICABLE TO FEDERAL DEPOSIT INSURANCE 

CORPORATION AND INSURED BANKS

Principals in crimes

(a) Whoever commits an offense against the United States, or aids, 

abets, counsels, commands, induces, or procures its commission, is a 

principal.

(b) Whoever causes an act to be done, which if directly performed 

by him would be an offense against the United States, is also a principal 

and punishable as such. (18 U. S. C. 2)

Offer of bribe to officer or other person

Whoever promises, offers, or gives any money or thing of value, or 

makes or tenders any check, order, contract, undertaking, obligation, 

gratuity, or security for the payment of money or for the delivery or 

conveyance of anything of value, to any officer or employee or person 

acting for or on behalf of the United States, or any department or agency 

thereof, in any official function, under or by authority of any such department or agency or to any officer or person acting for or on behalf 

of either House of Congress, or of any committee of either House, or 

both Houses thereof, with intent to influence his decision or action on 

any question, matter, cause, or proceeding which may at any time be 

pending, or which may by law be brought before him in his official 

capacity, or in his place of trust or profit, or with intent to influence him 

to commit or aid in committing, or to collude in, or allow, any fraud, or 

make opportunity for the commission of any fraud, on the United States, 

or to induce him to do or omit to do any act in violation of his lawful 

duty, shall be fined not more than three times the amount of such money 

or value of such thing or imprisoned not more than three years, or both.

This section shall not apply to violations of section 212 of this title. 

(18 U. S. C. 201)

Acceptance or solicitation by officer or other person

Whoever, being an officer or employee of, or person acting for or on 

behalf of the United States, in any official capacity, under or by virtue 

of the authority of any department or agency thereof, or an officer or 

person acting for or on behalf of either House of Congress, or of any 

committee of either House, or of both Houses thereof, asks, accepts, or 

receives any money, or any check, order, contract, promise, undertaking, 

obligation, gratuity, or security for the payment of money, or for the 

delivery or conveyance of anything of value, with intent to have his 

decision or action on any question, matter, cause, or proceeding which 

may at any time be pending, or which may by law be brought before 

him in his official capacity, or in his place of trust or profit, influenced

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134 FEDERAL DEPOSIT INSURANCE CORPORATION

thereby, shall be fined not more than three times the amount of such 

money or value of such thing or imprisoned not more than three years, 

or both; and shall forfeit his office or place and be disqualified from 

holding any office of honor, trust, or profit under the United States.

This section shall not apply to violations of section 213 of this title. 

(18 U. S. C. 202)

Offer of loan or gratuity to bank examiner

Whoever, being an officer, director or employee of a bank which is a 

member of the Federal Reserve System or the deposits of which are 

insured by the Federal Deposit Insurance Corporation, or of any National 

Agricultural Credit Corporation, or of any land bank, national farm loan 

association or other institution subject to examination by a farm credit 

examiner, makes or grants any loan or gratuity, to any examiner or 

assistant examiner, who examines or has authority to examine such bank, 

corporation, or institution, shall be fined not more than $5,000 or imprisoned not more than one year, or both; and may be fined a further 

sum equal to the money so loaned or gratuity given.

The provisions of this section and section 218 of this title shall apply 

to all public examiners and assistant examiners who examine member 

banks of the Federal Reserve System or insured banks, or National 

Agricultural Credit Corporations, whether appointed by the Comptroller 

of the Currency, by the Board of Governors of the Federal Reserve 

System, by a Federal Reserve Agent, by a Federal Reserve Bank or 

by the Federal Deposit Insurance Corporation, or appointed or elected 

under the laws of any state; but shall not apply to private examiners 

or assistant examiners employed only by a clearing-house association 

or by the directors of a bank. (18 U. S. C. 217)

Acceptance of loan or gratuity by bank examiner

Whoever, being an examiner or assistant examiner of member banks 

of the Federal Reserve System or banks the deposits of which are insured 

by the Federal Deposit Insurance Corporation, or a farm credit examiner or 

examiner of National Agricultural Credit Corporations, accepts a loan or gratuity from any bank, corporation, association or organization examined by 

him or from any person connected therewith, shall be fined not more 

than $5,000 or imprisoned not more than one year, or both; and may 

be fined a further*sum equal to the money so loaned or gratuity given, 

and shall be disqualified from holding office as such examiner. (18 U. 

S. C. 218)

Receipt of commissions or gifts for procuring loans

Whoever, being an officer, director, employee, agent, or attorney of 

any bank, the deposits of which are insured by the Federal Deposit

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Insurance Corporation, of a Federal intermediate credit bank, or of a 

National Agricultural Credit Corporation, except as provided by law, 

stipulates for or receives or consents or agrees to receive any fee, commission, gift, or thing of value, from any person, firm, or corporation, 

for procuring or endeavoring to procure for such person, firm, or corporation, or for any other person, firm, or corporation, from any such 

bank or corporation, any loan or extension or renewal of loan or substitution of security, or the purchase or discount or acceptance of any 

paper, note, draft, check, or bill of exchange by any such bank or corporation, shall be fined not more than $5,000 or imprisoned not more 

than one year or both. (18 U. S. C. 220)

Compensation to Members of Congress, officers and

others in matters affecting the Government

Whoever, being a Member of or Delegate to Congress, or a Resident 

Commissioner, either before or after he has qualified, or the head of a 

department, or other officer or employee of the United States, or any 

department or agency thereof, directly or indirectly receives or agrees to 

receive, any compensation for any services rendered or to be rendered, 

either by himself or another, in relation to any proceeding, contract, 

claim, controversy, charge, accusation, arrest, or other matter in which 

the United States is a party or directly or indirectly interested, before 

any department, agency, court martial, officer, or any civil, military, or 

naval commission, shall be fined not more than $10,000 or imprisoned 

not more than two years, or both; and shall be incapable of holding 

any office of honor, trust, or profit under the United States. * * * * *

This section shall not apply to any person because of his membership 

in the National Guard of the District of Columbia nor to any person 

specially excepted by Act of Congress. (18 U. S. C. 281)

Officers or employees interested in claims against

the Government

Whoever, being an officer or employee of the United States or any 

department or agency thereof, or of the Senate or House of Representatives, acts as an agent or attorney for prosecuting any claim against 

the United States, or aids or assists in the prosecution or support of any 

such claim otherwise than in the proper discharge of his official duties, 

or receives any gratuity, or any share of or interest in any such claim in 

consideration of assistance in the prosecution of such claim, shall be 

fined not more than $10,000 or imprisoned not more than one year, 

or both. *****

This section shall not apply to any person because of his membership 

in the National Guard of the District of Columbia nor to any person 

specially excepted by enactment of Congress. (18 U. S. C. 283)

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136 FEDERAL DEPOSIT INSURANCE CORPORATION

Disqualifications of former officers and employees

in matters connected with former duties

Whoever, having been employed in any agency of the United States, 

including commissioned officers assigned to duty in such agency, within 

two years after the time when such employment or service has ceased, 

prosecutes or acts as counsel, attorney, or agent for prosecuting, any 

claims against the United States involving any subject matter directly 

connected with which such person was so employed or performed duty, 

shall be fined not more than $10,000 or imprisoned not more than one 

year, or both. (18 U. S. C. 284)

False, fictitious or fraudulent claims

Whoever makes or presents to any person or officer in the civil, military, 

or naval service of the United States, or to any department or agency 

thereof, any claim upon or against the United States, or any department 

or agency thereof, knowing such claim to be false, fictitious, or fraudulent, 

shall be fined not more than $10,000 or imprisoned not more than five 

years, or both. (18 U. S. C. 287)

Contracts by Member of Congress; exceptions

Whoever, being a Member of or Delegate to Congress, or a Resident 

Commissioner, either before or after he has qualified, directly or indirectly, 

himself, or by any other person in trust for him, or for his use or benefit, 

or on his account, undertakes, executes, holds, or enjoys, in whole or in 

part, any contract or agreement, made or entered into in behalf of the 

United States or any agency thereof, by any officer or person authorized 

to make contracts on its behalf, shall be fined not more than $3,000.

All contracts or agreements made in violation of this section shall be 

void; and whenever any sum of money is advanced by the United States 

or any agency thereof, in consideration of any such contract or agreement, 

it shall forthwith be repaid; and in case of failure or refusal to repay the 

same when demanded by the proper officer of the department or agency 

under whose authority such contract or agreement shall have been made 

or entered into, suit shall at once be brought against the person so failing 

or refusing and his sureties for the recovery of the money so advanced. 

(18 U. S. C. 431)

Officer or employee contracting with Member of Congress

Whoever, being an officer or employee of the United States, on behalf 

of the United States or any agency thereof, directly or indirectly makes 

or enters into any contract, bargain, or agreement, with any Member 

of or Delegate to Congress, or any Resident Commissioner, either before

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or after he has qualified, shall be fined not more than $3,000. (18 U. 

S. C. 432)

Bonds and obligations of certain lending agencies

Whoever falsely makes, forges, counterfeits or alters any note, bond, 

debenture, coupon, obligation, instrument, or writing in imitation or 

purporting to be in imitation of, a note, bond, debenture, coupon, obligation, instrument or writing, issued by the Reconstruction Finance Corporation, Federal Deposit Insurance Corporation, Home Owners’ Loan 

Corporation, Farm Credit Administration, Federal Housing Administration, Federal Farm Mortgage Corporation or any land bank, intermediate credit bank, bank for cooperatives or any lending, mortgage, 

insurance, credit or savings and loan corporation or association authorized 

or acting under the laws of the United States, shall be fined not more 

than $10,000 or imprisoned not more than five years, or both.

Whoever passes, utters, or publishes, or attempts to pass, utter or 

publish any note, bond, debenture, coupon, obligation, instrument or 

document knowing the same to have been falsely made, forged, counterfeited or altered, contrary to the provisions of this section, shall be fined 

not more than $10,000 or imprisoned not more than five years, or both. 

(18 U. S. C. 493)

Public money, property or records; theft of

Whoever embezzles, steals, or purloins, or knowingly converts to his 

use or the use of another, or without authority, sells, conveys or disposes 

of any record, voucher, money, or thing of value of the United States, 

or of any department or agency thereof, or any property made or being 

made under contract for the United States or any department or agency 

thereof; or

Whoever receives, conceals, or retains the same with intent to convert 

it to his use or gain, knowing it to have been embezzled, stolen, purloined 

or converted—

Shall be fined not more than $10,000 or imprisoned not more than ten 

years, or both; but if the value of such property does not exceed the sum 

of $100, he shall be fined not more than $1,000 or imprisoned not more 

than one year, or both.

The word “ value” means face, par, or market value, or cost price, 

either wholesale or retail, whichever is greater. (18 U. S. C. 641)

Officer or employee of United States converting property

of another

Whoever, being an officer or employee of the United States or of any 

department or agency thereof, embezzles or wrongfully converts to

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his own use the money or property of another which comes into his 

possession or under his control in the execution of such office or employment, or under color or claim of authority as such officer or employee, 

shall be fined not more than the value of the money and property thus 

embezzled or converted, or imprisoned not more than ten years, or both; 

but if the sum embezzled is $100 or less, he shall be fined not more than 

$1,000 or imprisoned not more than one year, or both. (18 U. 13. C. 654)

Theft by bank examiner

Whoever, being a bank examiner or assistant examiner, steals, or 

unlawfully takes, or unlawfully conceals any money, note, draft, bond, 

or security or any other property of value in the possession of any bank 

or banking institution which is a member of the Federal Reserve System 

or which is insured by the Federal Deposit Insurance Corporation, or 

from any safe deposit box in or adjacent to the premises of such bank, 

shall be fined not more than $5,000 or imprisoned not more than five 

years, or both; but if the amount taken or concealed does not exceed 

$100, he shall be fined not more than $1,000 or imprisoned not more 

than one year, or both; and shall be disqualified from holding office as 

a national bank examiner or Federal Deposit Insurance Corporation 

examiner.

This section shall apply to all public examiners and assistant examiners 

who examine member banks of the Federal Reserve System or banks 

the deposits of which are insured by the Federal Deposit Insurance 

Corporation, whether appointed by the Comptroller of the Currency, 

by the Board of Governors of the Federal Reserve System, by a Federal 

Reserve Agent, by a Federal Reserve bank, or by the Federal Deposit 

Insurance Corporation, or appointed or elected under the laws of any 

State; but shall not apply to private examiners or assistant examiners 

employed only by a clearing-house association or by the directors of 

a bank. (18 U. S. C. 655)

Theft, embezzlement, or misapplication by bank officer or

employee

Whoever, being an officer, director, agent or employee of, or connected in any capacity with any Federal Reserve bank, member bank, 

national bank or insured bank, or a receiver of a national bank, or any 

agent or employee of the receiver, or a Federal Reserve Agent, or an 

agent or employee of a Federal Reserve Agent or of the Board of Governors of the Federal Reserve System, embezzles, abstracts, purloins 

or willfully misapplies any of the moneys, funds or credits of such bank 

or any moneys, funds, assets or securities intrusted to the custody or 

care of such bank, or to the custody or care of any such agent, officer, 

director, employee or receiver, shall be fined not more than $5,000 or

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imprisoned not more than five years, or both; but if the amount embezzled, 

abstracted, purloined or misapplied does not exceed $100, he shall be 

fined not more than $1,000 or imprisoned not more than one year, or 

both.

As used in this section, the term “ national bank” is synonymous 

with “national banking association” ; “ member bank” means and includes any national bank, state bank, or bank and trust company which 

has become a member of one of the Federal Reserve banks; and “ insured 

bank” includes any bank, banking association, trust company, savings 

bank, or other banking institution, the deposits of which are insured by 

the Federal Deposit Insurance Corporation. (18 U. S. C. 656)

Embezzlement from lending, credit and insurance institutions

Whoever, being an officer, agent or employee of or connected in any 

capacity with the Reconstruction Finance Corporation, Federal Deposit 

Insurance Corporation, Home Owners’ Loan Corporation, Farm Credit 

Administration, Federal Housing Administration, Federal Farm Mortgage Corporation, Federal Crop Insurance Corporation, Farmers’ Home 

Corporation, the Secretary of Agriculture acting through the Farmers’ 

Home Administration, or any land bank, intermediate credit bank, 

bank for cooperatives or any lending, mortgage, insurance, credit or 

savings and loan corporation or association authorized or acting under 

the laws of the United States, and whoever, being a receiver of any 

such institution, or agent or employee of the receiver, embezzles, abstracts, purloins or willfully misapplies any moneys, funds, credits, 

securities or other things of value belonging to such institution, or 

pledged or otherwise intrusted to its care, shall be fined not more than 

$5,000 or imprisoned not more than five years, or both; but if the amount 

or value embezzled, abstracted, purloined or misapplied does not exceed 

$100, he shall be fined not more than $1,000 or imprisoned not more 

than one year, or both. (18 U. S. C. 657)

Official badges, identification cards, other insignia; misuse of

Whoever manufactures, sells, or possesses any badge, identification 

card, or other insignia, of the design prescribed by the head of any 

department or agency of the United States for use by any officer or 

employee thereof, or any colorable imitation thereof, or photographs, 

prints, or in any other manner makes or executes any engraving, photograph, print, or impression in the likeness of any such badge, identification card, or other insignia, or any colorable imitation thereof, except as 

authorized under regulations made pursuant to law, shall be fined not 

more than $250 or imprisoned not more than six months, or both. (18 

U. S. C. 701)

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False advertising or misuse of names to indicate Federal agency

Whoever, except as permitted by the laws of the United States, uses 

the words “ national” , “ Federal” , “ United States” , “ reserve” , or “ Deposit Insurance” as part of the business or firm name of a person, corporation, partnership, business trust, association or other business 

entity engaged in the banking, loan, building and loan, brokerage, 

factorage, insurance, indemnity, savings or trust business; or

Whoever falsely advertises or represents, or publishes or displays 

any sign, symbol or advertisement reasonably calculated to convey the 

impression that a nonmember bank, banking association, firm or partnership is a member of the Federal reserve system; or

Whoever, except as expressly authorized by Federal law, uses the 

words “Federal Deposit” , “ Federal Deposit Insurance” , or “ Federal 

Deposit Insurance Corporation” or a combination of any three of these 

words, as the name or a part thereof under which he or it does business, 

or advertises or otherwise represents falsely by any device whatsoever 

that his or its deposit liabilities, obligations, certificates, or shares are 

insured or guaranteed by the Federal Deposit Insurance Corporation, 

or by the United States or by any instrumentality thereof, or whoever 

advertises that his or its deposits, shares, or accounts are federally insured, 

or falsely advertises or otherwise represents by any device whatsoever 

the extent to which or the manner in which the deposit liabilities of an 

insured bank or banks are insured by the Federal Deposit Insurance 

Corporation; ******

Shall be punished as follows: a corporation, partnership, business trust, 

association, or other business entity, by a fine of not more than $1,000; 

an officer or member thereof participating or knowingly acquiescing 

in such violation or any individual violating this section, by a fine of 

not more than $1,000 or imprisonment for not more than one year, 

or both.

This section shall not make unlawful the use of any name or title 

which was lawful on the date of enactment of this title.

A violation of this section may be enjoined at the suit of the United 

States Attorney, upon complaint by any duly authorized representative 

of any department or agency of the United States. (18 U. S. C. 709)

Officer or employee of the United States, impersonating

Whoever falsely assumes or pretends to be an officer or employee 

acting under the authority of the United States or any department, 

agency or officer thereof, and acts as such, or in such pretended character 

demands or obtains any money, paper, document, or thing of value, 

shall be fined not more than $1,000 or imprisoned not more than three 

years, or both. (18 U. S. C. 912)

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False statements or entries generally

Whoever, in any matter within the jurisdiction of any department or 

agency of the United States knowingly and willfully falsifies, conceals 

or covers up by any trick, scheme, or device a material fact, or makes 

any false, fictitious or fraudulent statements or representations, or 

makes or uses any false writing or document knowing the same to contain any false, fictitious or fraudulent statement or entry, shall be fined 

not more than $10,000 or imprisoned not more than five years, or both. 

(18 U. S. C. 1001)

Possession of false papers to defraud the United States

Whoever, knowingly and with intent to defraud the United States, 

or any agency thereof, possesses any false, altered, forged or counterfeited writing or document for the purpose of enabling another to obtain 

from the United States, or from any agency, officer or agent thereof, 

any sum of money, shall be fined not more than $10,000 or imprisoned 

not more than five years, or both. (18 U. S. C. 1002)

False certification of checks

Whoever, being an officer, director, agent, or employee of any Federal 

Reserve bank or member bank of the Federal Reserve System, certifies 

a check before the amount thereof has been regularly deposited in the 

bank by the drawer thereof, or resorts to any device, or receives any 

fictitious obligation, directly or collaterally, in order to evade any of 

the provisions of law relating to certification of checks, shall be fined 

not more than $5,000 or imprisoned not more than five years, or both. 

(18 U. S. C. 1004)

False bank entries, reports and transactions

Whoever, being an officer, director, agent or employee of any Federal 

Reserve bank, member bank, national bank or insured bank, without 

authority from the directors of such bank, issues or puts in circulation 

any notes of such bank; or

Whoever, without such authority, makes, draws, issues, puts forth, 

or assigns any certificate of deposit, draft, order, bill of exchange, acceptance, note, debenture, bond, or other obligation, or mortgage, 

judgment or decree; or

Whoever makes any false entry in any book, report, or statement of 

such bank with intent to injure or defraud such bank, or any other 

company, body politic or corporate, or any individual person, or to 

deceive any officer of such bank, or the Comptroller of the Currency, or 

the Federal Deposit Insurance Corporation, or any agent or examiner 

appointed to examine the affairs of such bank, or the Board of Governors 

of the Federal Reserve System—

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Shall be fined not more than $5,000 or imprisoned not more than five 

years, or both.

As used in this section, the term “national bank” is synonymous with 

“ national banking association” ; “member bank” means and includes 

any national bank, state bank, or bank or trust company, which has 

become a member of one of the Federal Reserve banks; and “ insured 

bank” includes any state bank, banking association, trust company, 

savings bank, or other banking institution, the deposits of which are 

insured by the Federal Deposit Insurance Corporation. (18 U. S. C. 1005)

Federal credit institution false entries, reports and transactions

Whoever, being an officer, agent or employee of or connected in any 

capacity with the Reconstruction Finance Corporation, Federal Deposit 

Insurance Corporation, Home Owners’ Loan Corporation, Farm Credit 

Administration, Federal Housing Administration, Federal Farm Mortgage Corporation, Federal Crop Insurance Corporation, Farmers’ Home 

Corporation, the Secretary of Agriculture acting through the Farmers’ 

Home Administration, or any land bank, intermediate credit bank, 

bank for cooperatives or any lending, mortgage, insurance, credit or 

savings and loan corporation or association authorized or acting under 

the laws of the United States, with intent to defraud any such institution 

or any other company, body politic or corporate, or any individual, 

or to deceive any officer, auditor, examiner or agent of any such institution or of department or agency of the United States, makes any 

false entry in any book, report or statement of or to any such institution, 

or without being duly authorized, draws any order or bill of exchange, 

makes any acceptance, or issues, puts forth or assigns any note, debenture, 

bond or other obligation, or draft, bill of exchange, mortgage, judgment, 

or decree, or, with intent to defraud the United States or any agency 

thereof, or any corporation, institution, or association referred to in 

this section, participates or shares in or receives directly or indirectly 

any money, profit, property, or benefits through any transaction, loan, 

commission, contract, or any other act of any such corporation, institution, or association, shall be fined not more than $10,000 or imprisoned 

not more than five years, or both. (18 U. S. C. 1006)

Fraud to influence Federal Deposit Insurance Corporation

Whoever, for the purpose of obtaining any loan from the Federal Deposit Insurance Corporation, or any extension or renewals thereof, or the 

acceptance, release, or substitution of security therefor, or for the purpose 

of inducing the Federal Deposit Insurance Corporation to purchase any 

assets, or for the purpose of obtaining the payment of any insured deposit 

or transferred deposit or the allowance, approval, or payment of any 

claim, or for the purpose of influencing in any way the action of the

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Federal Deposit Insurance Corporation, makes any statement knowing 

it to be false, or willfully overvalues any security, shall be fined not 

more than $5,000 or imprisoned not more than two years, or both. 

(18 U. S. C. 1007)

False acknowledgement of appearance or oath

Whoever, being an officer authorized to administer oaths or to take 

and certify acknowledgments, knowingly makes any false acknowledgment, certificate, or statement concerning the appearance before him or 

the taking of an oath or affirmation by any person with respect to any 

proposal, contract, bond, undertaking, or other matter submitted to, 

made with, or taken on behalf of the United States or any department 

or agency thereof, concerning which an oath or affirmation is required 

by law or lawful regulation, or with respect to the financial standing 

of any principal, surety, or other party to any such proposal, contract, 

bond, undertaking, or other instrument, shall be fined not more than 

$2,000 or imprisoned not more than two years, or both. (18 U. S. C. 1016)

Government seals wrongfully used and instruments

wrongfully sealed

Whoever fraudulently or wrongfully affixes or impresses the seal of 

any department or agency of the United States, to or upon any certificate, 

instrument, commission, document, or paper or with knowledge of its 

fraudulent character, with wrongful or fraudulent intent, uses, buys, 

procures, sells, or transfers to another any such certificate, instrument, 

commission, document, or paper, to which or upon which said seal has 

been so fraudulently affixed or impressed, shall be fined not more than 

$5,000 or imprisoned not more than five years, or both. (18 U. S. C. 1017)

False official certificates or writings

Whoever, being a public officer or other person authorized by any 

law of the United States to make or give a certificate or other writing, 

knowingly makes and delivers as true such a certificate or writing, 

containing any statement which he knows to be false, in a case where 

the punishment thereof is not elsewhere expressly provided by law, 

shall be fined not more than $500 or imprisoned not more than one year, 

or both. (18 U. S. C. 1018)

Influencing or injuring witness before agencies and committees

Whoever corruptly, or by threats or force, or by any threatening 

letter or communication, endeavors to influence, intimidate, or impede 

any witness in any proceeding pending before any department or agency 

of the United States, or in connection with any inquiry or investigation

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being had by either House, or any committee of either House, or any 

joint committee of the Congress; or

Whoever injures any party or witness in his person or property on 

account of his attending or having attended such proceeding, inquiry, 

or investigation, or on account of his testifying or having testified to 

any matter pending therein; or

Whoever corruptly, or by threats or force, or by any threatening 

letter or communication influences, obstructs, or impedes, or endeavors 

to influence, obstruct, or impede the due and proper administration of 

the law under which such proceeding is being had before such department or agency of the United States, or the due and proper exercise of 

the power of inquiry under which such inquiry or investigation is being 

had by either House, or any committee of either House or any joint 

committee of the Congress—

Shall be fined not more than $5,000 or imprisoned not more than 

five years, or both. (18 U. S. C. 1505)

Use of mail to defraud or swindle

Whoever, having devised or intending to devise any scheme or artifice 

to defraud, or for obtaining money or property by means of false or 

fraudulent pretenses, representations, or promises, or to sell, dispose of, 

loan, exchange, alter, give away, distribute, supply, or furnish or procure 

for unlawful use any counterfeit or spurious coin, obligation, security, 

or other article, or anything represented to be or intimated or held out 

to be such counterfeit or spurious article, for the purpose of executing 

such scheme or artifice or attempting so to do, places in any post office 

or authorized depository for mail matter, any matter or thing whatever 

to be sent or delivered by the Post Office Department, or takes or receives 

therefrom, any such matter or thing, or knowingly causes to be delivered 

by mail according to the direction thereon, or at the place at which it 

is directed to be delivered by the person to whom it is addressed, any 

such matter or thing, shall be fined not more than $1,000 or imprisoned 

not more than five years, or both. (18 U. S. C. 1341)

Perjury generally

Whoever, having taken an oath before a competent tribunal, officer, 

or person, in any case in which a law of the United States authorizes 

an oath to be administered, that he will testify, declare, depose, or certify 

truly, or that any written testimony, declaration, deposition, or certificate by him subscribed, is true, willfully and contrary to such oath 

states or subscribes any material matter which he does not believe to 

be true, is guilty of perjury, and shall, except as otherwise expressly 

provided by law, be fined not more than $2,000 or imprisoned not more 

than five years, or both. (18 U. S. C. 1621)

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Subornation of perjury

Whoever procures another to commit any perjury is guilty of subornation of perjury, and shall be fined not more than $2,000 or imprisoned 

not more than five years, or both. (18 U. S. C. 1622)

Disclosure of confidential information generally

Whoever, being an officer or employee of the United States or of any 

department or agency thereof, publishes, divulges, discloses, or makes 

known in any manner or to any extent not authorized by law any information coming to him in the course of his employment or official 

duties or by reason of any examination or investigation made by, or 

return, report or record made to or filed with, such department or agency 

or officer or employee thereof, which information concerns or relates 

to the trade secrets, processes, operations, style of work, or apparatus, 

or to the identity, confidential statistical data, amount or source of any 

income, profits, losses, or expenditures of any person, firm, partnership, 

corporation, or association; or permits any income return or copy thereof 

or any book containing any abstract or particulars thereof to be seen 

or examined by any person except as provided by law; shall be fined 

not more than $1,000, or imprisoned not more than one year, or both; 

and shall be removed from office or employment. (18 U. S. C. 1905)

Disclosure of information by bank examiner

Whoever, being an examiner, public or private, discloses the names 

of borrowers or the collateral for loans of any member bank of the Federal 

Reserve System, or bank insured by the Federal Deposit Insurance 

Corporation, examined by him, to other than the proper officers of such 

bank, without first having obtained the express permission in writing 

from the Comptroller of the Currency as to a national bank, the Board 

of Governors of the Federal Reserve System as to a State member bank, 

or the Federal Deposit Insurance Corporation as to any other insured 

bank, or from the board of directors of such bank, except when ordered 

to do so by a court of competent jurisdiction, or by direction of the 

Congress of the United States, or either House thereof, or any committee 

of Congress or either House duly authorized, shall be fined not more 

than $5,000 or imprisoned not more than one year, or both. (18 U. S. 

C. 1906)

Examiner performing other services

Whoever, being a national-bank examiner, Federal Deposit Insurance 

Corporation examiner, farm credit examiner, or an examiner of National 

Agricultural Credit Corporations, performs any other service, for compensation, for any bank or banking or loan association, or for any officer,

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director, or employee thereof, or for any person connected therewith 

in any capacity, shall be fined not more than $5,000 or imprisoned not 

more than one year, or both. (18 U. S. C. 1909)

Bank robbery and incidental crimes

(a) Whoever, by force and violence, or by intimidation, takes or attempts to take, from the person or presence of another any property 

or money or any other thing of value belonging to, or in the care, custody, 

control, management, or possession of, any bank, or any savings and 

loan association; or

Whoever enters or attempts to enter any bank, or any savings and 

loan association, or any building used in whole or in part as a bank, or 

as a savings and loan association, with intent to commit in. such bank, 

or in such savings and loan association, or building, or part thereof, so 

used, any felony affecting such bank or such savings and loan association 

and in violation of any statute of the United States, or any larceny—

Shall be fined not more than $5,000 or imprisoned not more than 

twenty years, or both.

(b) Whoever takes and carries away, with intent to steal or purloin, 

any property or money or any other thing of value exceeding $100 

belonging to, or in the care, custody, control, management, or possession 

of any bank, or any savings and loan association, shall be fined not more 

than $5,000 or imprisoned not more than ten years, or both; or

Whoever takes and carries away, with intent to steal or purloin, any 

property or money or any other thing of value not exceeding $100 belonging to, or in the care, custody, control, management, or possession 

of any bank, or any savings and loan association, shall be fined not more 

than $1,000 or imprisoned not more than one year, or both.

(c) Whoever receives, possesses, conceals, stores, barters, sells, or disposes of, any property or money or other thing of value knowing the 

same to have been taken from a bank, or a savings and loan association, 

in violation of subsection (b) of this section shall be subject to the punishment provided by said section (b) for the taker.

(d) Whoever, in committing, or in attempting to commit, any offense 

defined in subsections (a) and (b) of this section, assaults any person, 

or puts in jeopardy the life of any person by the use of a dangerous 

weapon of device, shall be fined not more than $10,000 or imprisoned not 

more than twenty-five years, or both.

(e) Whoever, in committing any offense defined in this section, or in 

avoiding or attempting to avoid apprehension for the commission of 

such offense, or in freeing himself or attempting to free himself from 

arrest or confinement for such offense, kills any person, or forces any 

person to accompany him without the consent of such person, shall be 

imprisoned not less than ten years, or punished by death if the verdict 

of the jury shall so direct.

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(f) As used in this section the term “bank” means any member bank 

of the Federal Reserve System, and any bank, banking association, trust 

company, savings bank, or other banking institution organized or operating under the law^s of the United States, and any bank the deposits 

of which are insured by the Federal Deposit Insurance Corporation.

(g) As used in this section the term “ savings and loan association” 

means any Federal savings and loan association and any savings and 

loan association the accounts of which are insured by the Federal Savings 

and Loan Insurance Corporation. (18 U. S. C. 2113)

Definition of securities in stolen property law

As used in this chapter: * * *

“ Securities” includes any note, stock certificate, bond, debenture, 

check, draft, warrant, traveler’s check, letter of credit, warehouse receipt, 

negotiable bill of lading, evidence of indebtedness, certificate of interest 

or participation in any profit-sharing agreement, collateral-trust certificate, preorganization certificate or subscription, transferable share, 

investment contract, voting-trust certificate; certificate of interest in 

property, tangible or intangible; instrument or document or writing 

evidencing ownership of goods, wares, and merchandise, or transferring 

or assigning any right, title or interest in or to goods, wares, and merchandise; or, in general, any instrument commonly known as a “security” , 

or any certificate of interest or participation in, temporary or interim 

certificate for, receipt for, warrant, or right to subscribe to or purchase 

any of the foregoing, or any forged, counterfeited, or spurious representation of any of the foregoing;

“ Value” means the face, par, or market value, whichever is the greatest, 

and the aggregate value of all goods, wares, and merchandise, securities, 

and money referred to in a single indictment shall constitute the value 

thereof. (18 U. S. C. 2311)

Transportation of stolen goods, securities, monies, or articles

used in counterfeiting

Whoever transports in interstate or foreign commerce any goods, 

wares, merchandise, securities or money, of the value of $5,000 or more, 

knowing the same to have been stolen, converted or taken by fraud; or

Whoever, with unlawful or fraudulent intent, transports in interstate 

or foreign commerce any falsely made, forged, altered, or counterfeited 

securities, knowing the same to have been falsely made, forged, altered, 

or counterfeited; or

Whoever, with unlawful or fraudulent intent, transports in interstate 

or foreign commerce, any tool, implement, or thing used or fitted to be 

used in falsely making, forging, altering, or counterfeiting any security, 

or any part thereof—

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Shall be fined not more than $10,000 or imprisoned not more than ten 

years, or both.

This section shall not apply to any falsely made, forged, altered, 

counterf eited or spurious representation of an obligation or other security 

of the United States, or of an obligation, bond, certificate, security, 

treasury note, bill, promise to pay or bank note issued by any foreign 

government or by a bank or corporation of any foreign country. (18 

U. S. C. 2314)

Sale or receipt of stolen goods, securities, or monies

Whoever receives, conceals, stores, barters, sells, or disposes of any 

goods, wares, or merchandise, securities, or money of the value of $5,000 

or more, or pledges or accepts as security for a loan any goods, wares, or 

merchandise, or securities, of the value of $500 or more, moving as, or 

which are a part of, or which constitute interstate or foreign commerce, 

knowing the same to have been stolen, unlawfully converted, or taken; or

Whoever receives, conceals, stores, barters, sells or disposes of any 

falsely made, forged, altered, or counterfeited securities, or pledges or 

accepts as security for a loan any falsely made, forged, altered, or counterfeited securities, moving as, or which are a part of, or which constitute 

interstate or foreign commerce, knowing the same to have been so falsely 

made, forged, altered, or counterfeited; or

Whoever receives in interstate or foreign commerce, or conceals, 

stores, barters, sells, or disposes of, any tool, implement, or thing used 

or intended to be used in falsely making, forging, altering, or counterfeiting any security, or any part thereof, moving as, or which is a part 

of, or which constitutes interestate or foreign commerce, knowing that 

the same is fitted to be used, or has been used, in falsely making, forging, 

altering, or counterfeiting any security, or any part thereof—

Shall be fined not more than $10,000 or imprisoned not more than ten 

years, or both.

This section shall not apply to any falsely made, forged, altered, 

counterfeited, or spurious representation of an obligation or other security 

of the United States or of an obligation, bond, certificate, security, 

treasury note, bill, promise to pay, or bank note, issued by any foreign 

government or by a bank or corporation of any foreign country. (18 

U. S. C. 2315)

Secret Service powers

The Secretary of the Treasury is authorized to direct and use the 

Secret Service Division of the Treasury Department to detect, arrest, 

and deliver into custody any person violating any of the provisions of 

sections 508 and 509 of this title and, insofar as the Federal Deposit 

Insurance Corporation, Federal land banks, joint-stock land banks and

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national farm loan associations are concerned, of sections 218, 221, 433, 

493, 657, 709, 1006, 1007, 1011, 1013, 1014, 1907 and 1909 of this title. 

(18 U. S. C. 3056)

Insured banks receiving property of foreign States and

central banks

***** Whenever (1) any insured bank has received any property 

from or for the account of a foreign state which is recognized by the 

Government of the United States, or from or for the account of a central 

bank of any such foreign state, and holds such property in the name of 

such foreign state or such central bank; (2) a representative of such 

foreign state who is recognized by the Secretary of State as being the 

accredited representative of such foreign state to the Government of 

the United States has certified to the Secretary of State the name of a 

person as having authority to receive, control, or dispose of such property; 

and (3) the authority of such person to act with respect to such property 

is accepted and recognized by the Secretary of State, and so certified 

by the Secretary of State to such insured bank, the payment, transfer, 

delivery, or other disposal of such property by such bank to or upon the 

order of such person shall be conclusively presumed to be lawful and 

shall constitute a complete discharge and release of any liability of such 

bank for or with respect to such property. Any suit or other legal proceeding against any insured bank or any officer, director, or employee 

thereof, arising out of the receipt, possession, or disposition of any such 

property shall be deemed to arise under the laws of the United States 

and the district courts of the United States shall have exclusive jurisdiction thereof, regardless of the amount involved; and any such bank, 

or any officer, director, or employee thereof which is a defendant in any 

such suit may, at any time before trial thereof, remove such suit from a 

State court into the district court of the United States for the proper 

district by following the procedure for the removal of causes otherwise 

provided by law. ***** (12 U. S. C. 632)

Depositaries of public funds, insured banks

All insured banks designated for that purpose by the Secretary of 

the Treasury shall be depositaries of public money of the United States 

(including, without being limited to, revenues and funds of the United 

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

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

and Postal Savings funds), and the Secretary is hereby authorized to 

deposit public money in such depositaries, under such regulations as 

may be prescribed by the Secretary; and they may also be employed 

as financial agents of the Government; and they shall perform all such 

reasonable duties, as depositaries of public money and financial agents

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of the Government as may be required of them. The Secretary of the 

Treasury shall require of the insured banks thus designated satisfactory 

security by the deposit of United States bonds or otherwise, for the safekeeping and prompt payment of public money deposited with them 

and for the faithful performance of their duties as financial agents of 

the Government: Provided, That no such security shall be required 

for the safekeeping and prompt payment of such parts of the deposits 

of the public money in such banks as are insured deposits and each 

officer, employee, or agent of the United States having official custody 

of public funds and lawfully depositing the same in an insured bank 

shall, for the purpose of determining the amount of the insured deposits, 

be deemed a depositor in such custodial capacity separate and distinct 

from any other officer, employee, or agent of the United States having 

official custody of public funds and lawfully depositing the same in the 

same insured bank in custodial capacity. Notwithstanding any other 

provision of law, no department, board, agency, instrumentality, officer, 

employee, or agent of the United States shall issue or permit to continue 

in effect any regulations, rulings, or instructions, or enter into or approve 

any contracts or perform any other acts having to do with the deposit, 

disbursement, or expenditure of public funds, or the deposit, custody, 

or advance of funds subject to the control of the United States as trustee 

or otherwise which shall discriminate against or prefer national banking 

associations, State banks members of the Federal Reserve System, or 

insured banks not members of the Federal Reserve System, by class, or 

which shall require those enjoying the benefits, directly or indirectly, 

of disbursed public funds so to discriminate. All Acts or parts thereof 

in conflict herewith are hereby repealed. The terms “ insured bank” and 

“ insured deposit” as used in this Act shall be construed according to the 

definitions of such terms in the Act of August 23, 1935 (49 Stat. 684), 

as amended (12 U. S. C. 265)

Failure to pay circulating notes, national banks

On becoming satisfied, as specified in sections fifty-two hundred 

and twenty-six and fifty-two hundred and twenty-seven, that any 

association has refused to pay its circulating notes as therein mentioned, and is in default, the Comptroller of the Currency may forthwith appoint a receiver, and require of him such bond and security 

as he deems proper. Such receiver, under the direction of the 

comptroller, shall take possession of the books, records, and assets 

of every description of such association, collect all debts, dues, and 

claims belonging to it, and, upon the order of a court of record of competent jurisdiction, may sell or compound all bad or doubtful debts, 

and, on a like order, may sell all the real and personal property of such 

association, on such terms as the court shall direct; and may, if necessary

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to pay the debts of such association, enforce the individual liability of 

the stockholders. Such receiver shall pay over all money so made to the 

Treasurer of the United States, subject to the order of the comptroller, 

and also make report to the comptroller of all his acts and proceedings.

Provided, That the comptroller may, if he deems proper, deposit 

any of the money so made in any regular Government depositary, or 

in any State or national bank either of the city or town in which the 

insolvent bank was located, or of a city or town as adjacent thereto 

as practicable; if such deposit is made he shall require the depositary 

to deposit United States bonds or other satisfactory securities with the 

Treasurer of the United States for the safe-keeping and prompt payment of the money so deposited: Provided, That no security in the 

form of deposit of United States bonds, or otherwise, shall be required 

in the case of such parts of the deposits as are insured under section 12B 

of the Federal Reserve Act, as amended. Such depositary shall pay upon 

such money interest at such rate as the comptroller may prescribe, not 

less1, however, than 2 per centum per annum upon the average monthly 

amount of such deposits. (12 U. S. C. 192)

Bankruptcy funds, deposit of

The judges of the several courts of bankruptcy shall designate, by 

order, banking institutions as depositories for the money of estates 

under this title, as convenient as may be to the residences of receivers 

and trustees, and shall require from each such banking institution a 

good and sufficient bond with surety, to secure the prompt repayment 

of the deposit. Said judges may, in accordance with the provisions of, 

and the authority conferred in section 1126 of the Revenue Act of 1926, 

as amended1 accept the deposit of the securities therein designated, 

in lieu of a surety or sureties upon such bond and may, from time to 

time as occasion may require, by like order increase or decrease the 

number of depositories or the amount of any bond or other security or 

change such depositories: Provided, That no security in the form of a 

bond or otherwise shall be required in the case of such part of the deposits 

as are insured under section 264 of Title 12, as amended: And provided

further, That depository banks shall place such securities, accepted for 

deposit in lieu of a surety or sureties upon depository bonds, in the 

custody of Federal Reserve banks or branches thereof designated by 

the judges of the several courts of bankruptcy, subject to the orders of 

such judges. All national banking associations designated as depositories, 

pursuant to the provisions of this section of this title, are authorized 

to give such security as may be required. All pledges of securities heretofore made for the purposes herein named are hereby ratified, validated 

and approved. (11 U. S. C. 101)

i See, however, Section 19 of the Federal Reserve Act, as amended by Sec. 324 (c) of the Banking 

Act of 1935. (U. S. C., Title 12, Sec. 371a.)

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152 FEDERAL DEPOSIT INSURANCE CORPORATION

Postal Savings funds, deposit of

Postal savings funds received under the provisions of this chapter 

shall be deposited in solvent banks, whether organized under national 

or State laws, and whether member banks or not of the Federal reserve 

system, being subject to national or State supervision and examination, 

and the sums deposited shall bear interest at the rate of not less1 than 

2J4 per centum per annum, which rate shall be uniform throughout 

the United States and Territories thereof; but 5 per centum of such 

funds shall be withdrawn by the board of trustees and kept with the 

Treasurer of the United States, who shall be treasurer of the board of 

trustees, in lawful money as a reserve. The board of trustees shall take 

from such banks such security in public bonds or other securities, authorized by Act of Congress or supported by the taxing power, as the 

board may prescribe, approve, and deem sufficient and necessary to 

insure the safety and prompt payment of such deposits on demand: 

Provided, That no such security shall be required in case of such part 

of the deposits as are insured under section 12B of the Federal Reserve 

Act, as amended. (39 U. S. C. 759)

Indian funds, deposit of

The Secretary of the Interior is hereby authorized in his discretion, 

and under such rules and regulations as he may prescribe, to withdraw 

from the United States Treasury and to deposit in banks to be selected 

by him the common or community funds of any Indian tribe which 

are, or may hereafter be, held in trust by the United States and on which 

the United States is not obligated by law to pay interest at higher rates 

than can be procured from the banks. The said Secretary is also authorized, under such rules and regulations as he may prescribe, to deposit 

in banks to be selected by him the funds held in trust by the United States 

for the benefit of individual Indians: Provided, That no individual 

Indian money shall be deposited in any bank until the bank shall have 

agreed to pay interest thereon at a reasonable rate, subject, however, 

to the regulations of the Board of Governors of the Federal Reserve 

System in the case of member banks, and of the Board of Directors of 

the Federal Deposit Insurance Corporation in the case of insured nonmember banks, except that the payment of interest may be waived in 

the discretion of the Secretary of the Interior on any deposit which is 

payable on demand: Provided further, That no tribal or individual Indian 

money shall be deposited in any bank until the bank shall have furnished 

an acceptable bond or pledged collateral security therefor in the form 

of any public-debt obligations of the United States and any bonds, notes, 

or other obligations which are unconditionally guaranteed as to both 

interest and principal by the United States, except that no such bond 

or collateral shall be required to be furnished by any such bank which

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is entitled to the benefits of section 264 of Title 12, with respect to any 

deposits of such tribal or individual funds to the extent that such deposits 

are insured under such section: Provided, however, That nothing contained in this section, or in section 264 of Title 12, shall operate to deprive 

any Indian having unrestricted funds on deposit in any such bank of 

the full protection afforded by section 264 of Title 12, irrespective of 

any interest such Indian may have in any restricted Indian funds on 

deposit in the same bank to the credit of a disbursing agent of the United 

States. For the purpose of this section and section 264 of Title 12, said 

unrestricted funds shall constitute a separate and distinct basis for an 

insurance claim: Provided further, That the Secretary of the Interior, 

if he deems it advisable and for the best interest of the Indians, may 

invest the trust funds of any tribe or individual Indian in any publicdebt obligations of the United States and in any bonds, notes, or other 

obligations which are unconditionally guaranteed as to both interest 

and principal by the United States: And provided further, That the foregoing shall apply to the funds of the Osage Tribe of Indians, and the 

individual members thereof, only with respect to the deposit of such 

funds in banks. (25 U. S. C. 162 (a))

NATIONAL BANK CONVERSION ACT

[Public Law 706—81st Congress]

[Chapter 729—2d Session]

[H. R. 1161]

AN ACT

To provide for the conversion of national banking associations into and their merger 

or consolidation with State banks, and for other purposes.

Be it enacted by the Senate and House of Representatives of the United

States of America in Congress assembled,

DEFINITIONS

Section 1. (a) As used in this Act the term “State bank” means 

any bank, banking association, trust company, savings bank (other 

than a mutual savings bank), or other banking institution which is 

engaged in the business of receiving deposits and which is incorporated 

under the laws of any State, any Territory of the United States, Puerto 

Rico, or the Virgin Islands, or which is operating under the Code of Law 

for the District of Columbia (except a national banking association).

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(b) For purposes of merger or consolidation under this Act the term 

“national banking association” means one or more national banking 

associations, and the term “State bank” means one or more State banks.

CONVERSION OF NATIONAL BAN K INTO AND M ERGER OR 

CONSOLIDATION W ITH STATE B A N K ; PROCEDURE

Sec. 2. A national banking association may, by vote of the holders 

of at least two-thirds of each class of its capital stock, convert into, or 

merge or consolidate with, a State bank in the same State in which the 

national banking association is located, under a State charter, in the 

following manner:

(a) The plan of conversion, merger, or consolidation must be approved 

by a majority of the entire board of directors of the national banking 

association. The bank shall publish notice of the time, place, and object 

of the shareholders’ meeting to act upon the plan, in some newspaper 

with general circulation in the place where the principal office of the 

national banking association is located, at least once a week for four 

consecutive weeks: Provided, That newspaper publication may be dispensed with entirely if waived by all the shareholders and in the case 

of a merger or consolidation one publication at least ten days before 

the meeting shall be sufficient if publication for four weeks is waived by 

holders of at least two-thirds of each class of capital stock and prior 

written consent of the Comptroller of the Currency is obtained. The 

national banking association shall send such notice to each shareholder 

of record by registered mail at least ten days prior to the meeting, which 

notice may be waived specifically by any shareholder.

(b) A shareholder of a national banking association who votes against 

the conversion, merger, or consolidation, or who has given notice in 

writing to the bank at or prior to such meeting that he dissents from the 

plan, shall be entitled to receive in cash the value of the shares held by 

him, if and when the conversion, merger, or consolidation is consummated, upon written request made to the resulting State bank at any 

time before thirty days after the date of consummation of such conversion, merger, or consolidation, accompanied by the surrender of his 

stock certificates. The value of such shares shall be determined as of the 

date on which the shareholders’ meeting was held authorizing the conversion, merger, or consolidation, by a committee of three persons, one 

to be selected by unanimous vote of the dissenting shareholders entitled 

to receive the value of their shares, one by the directors of the resulting 

State bank, and the third by the two so chosen. The valuation agreed 

upon by any two of three appraisers thus chosen shall govern; but, if 

the value so fixed shall not be satisfactory to any dissenting shareholder 

who has requested payment as provided herein, such shareholder may 

within five days after being notified of the appraised value of his shares 

appeal to the Comptroller of the Currency, who shall cause a reappraisal

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to be made, which shall be final and binding as to the value of the shares 

of the appellant. If, within ninety days from the date of consummation 

of the conversion, merger, or consolidation, for any reason one or more 

of the appraisers is not selected as herein provided, or the appraisers fail 

to determine the value of such shares, the Comptroller shall upon written 

request of any interested party, cause an appraisal to be made, which 

shall be final and binding on all parties. The expenses of the Comptroller 

in making the reappraisal, or the appraisal as the case may be, shall 

be paid by the resulting State bank. The plan of conversion, merger, or 

consolidation shall provide the manner of disposing of the shares of the 

resulting State bank not taken by the dissenting shareholders of the 

national banking association.

SAME E N TITY

Sec. 3. The franchise of a national banking association as a national 

banking association shall automatically terminate when its conversion 

into or its merger or consolidation with a State bank under a State 

charter is consummated and the resulting State bank shall be considered 

the same business and corporate entity as the national banking association, although as to rights, powers, and duties the resulting bank is a 

State bank. Any reference to such national banking association in any 

contract, will, or document shall be considered a reference to the State 

bank if not inconsistent with the provisions of the contract, will, or 

document or applicable law.

CONTRAVENTION W ITH STATE LAW

Sec. 4. N o conversion of a national banking association into a State 

bank or its merger or consolidation with a State bank shall take place 

under this Act in contravention of the law of the State in which the 

national banking association is located; and no such conversion, merger, 

or consolidation shall take place under this Act unless under the law 

of the State in which such national banking association is located State 

banks may without approval by any State authority convert into and 

merge or consolidate with national banking associations as provided 

by Federal law.

CONSENT OF FEDERAL AGENCIES

Sec. 5. Section 12B (v) (4) of the Federal Reserve Act (title 12, 

U.S.C., sec. 264 (v) (4)), is amended to read as follows:

“ (4) Without prior written consent by the Corporation, no 

insured bank shall (a) merge or consolidate with any noninsured 

bank or institution or convert into a noninsured bank or institution 

or (b) assume liability to pay any deposits made in, or similar 

liabilities of, any noninsured bank or institution or (c) transfer 

assets to any noninsured bank or institution in consideration of

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the assumption of liabilities for any portion of the deposits made in 

such insured bank. No insured bank shall convert into an insured 

State bank if its capital stock, or its surplus will be less than the 

capital stock or surplus, respectively, of the converting bank at 

the time of the shareholders’ meeting approving such conversion, 

without prior written consent by the Comptroller of the Currency 

if the resulting bank is to be a District bank, or by the Board of 

Governors of the Federal Reserve System if the resulting bank is 

to be a State member bank (except a District bank), or by the Corporation if the resulting bank is to be a State nonmember insured 

bank (except a District bank). No insured bank shall (a) merge 

or consolidate with an insured State bank under the charter of a 

State bank or (b) assume liability to pay any deposits made in 

another insured bank, if the capital stock or surplus of the resulting 

or assuming bank will be less than the aggregate capital stock or 

aggregate surplus, respectively, of all the merging or consolidating 

banks or of all the parties to the assumption of liabilities, at the 

time of the shareholders’ meetings which authorized the merger 

or consolidation or at the time of the assumption of liabilities, unless 

the Comptroller of the Currency shall give prior written consent 

if the assuming bank is to be a national bank or the assuming or 

resulting bank is to be a District bank; or unless the Board of Governors of the Federal Reserve System gives prior written consent 

if the assuming or resulting bank is to be a State member bank 

(except a District bank); or unless the Corporation gives prior 

written consent if the assuming or resulting bank is to be a nonmember insured bank (except a District bank). No insured State 

nonmember bank (except a District bank) shall, without the prior 

consent of the Corporation, reduce the amount or retire any part 

of its common or preferred capital stock, or retire any part of its 

capital notes or debentures.”

CONTINUED DEPOSIT INSURANCE

Sec. 6. Section 12B (e) (2) of the Federal Reserve Act (title 12, 

U.S.C., sec. 264 (e) (2)), is amended by adding at the end thereof the 

following sentences: “A State bank, resulting from the conversion of 

an insured national bank, shall continue as an insured bank. A State 

bank, resulting from the merger or consolidation of insured banks, 

or from the merger or consolidation of a noninsured bank or institution 

with an insured State bank, shall continue as an insured bank.”

EFFECT OF TERM INATION OF INSURANCE OF M EMBER BANKS

Sec. 7. The last sentence of section 12B (i) (2) of the Federal Reserve 

Act (12 U.S.C., sec. 264 (1) (2)), is amended to read as follows: “Except 

as provided in paragraph (2) of subsection (e) of this section, whenever

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NATIONAL BAN K CONVERSION ACT 157

a member bank shall cease to be a member of the Federal Reserve System, 

its status as an insured bank shall, without notice or other action by the 

board of directors, terminate on the date the bank shall cease to be a 

member of the Federal Reserve System, with like effect as if its insured 

status had been terminated on said date by the board of directors after 

proceedings under paragraph (1) of this subsection.”

CONTINUED M EMBERSHIP IN THE FEDERAL RESERVE SYSTEM

Sec. 8. Section 9 of the Federal Reserve Act (title 12, U.S.C., sec. 

321), as amended, is amended by inserting after the first paragraph 

thereof the following new paragraph:

“ Upon the conversion of a national bank into a State bank, or the 

merger or consolidation of a national bank with a State bank which 

is not a member of the Federal Reserve System, the resulting or continuing State bank may be admitted to membership in the Federal 

Reserve System by the Board of Governors of the Federal Reserve 

System in accordance with the provisions of this section, but, otherwise, the Federal Reserve bank stock owned by the national bank shall 

be canceled and paid for as provided in section 5 of this Act. Upon the 

merger or consolidation of a national bank with a State member bank 

under a State charter, the membership of the State bank in the Federal 

Reserve System shall continue.”

SEPARABILITY CLAUSE

Sec. 9. If any provision of this Act, or the application thereof to 

any person or circumstance, is held invalid, the remainder of the Act 

and the application of such provision to other persons or circumstances 

shall not be affected thereby.

Approved August 17, 1950.

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Subchapter A—Procedure and Rules of Practice

Part 301—I ntroductory an d A u th ority

§ 301.1 Scope. The rules contained in this subchapter are promulgated pursuant to the provisions of the Administrative Procedure 

Act (60 Stat. 237), the Federal Deposit Insurance Act (Act of Sept. 21, 

1950, Pub. Law 797,81st Cong.), and other applicable laws. In accordance 

with the provisions of section 3 (a) (2) of the Administrative Procedure 

Act (sec. 3 (a) (2), 60 Stat. 238) they state the general course and method 

by which the Corporation’s functions with respect to deposit insurance 

are channeled and determined, including the nature and requirements 

of formal or informal procedures available as well as forms and instructions as to the scope and contents of papers and reports. This subchapter 

also includes appropriate provisions with respect to rule making, adjudications, and hearings, as prescribed by law.

Proceedings by the Corporation within the meaning of this subchapter 

include:

(a) The formulation and promulgation of rules and regulations, 

including amendments thereto or the repeal thereof;

(b) The disposition of applications, requests, and submittals;

(c) Formal hearings and adjudications.

(Sec. 9, Pub. Law 797, 81st Cong.)

R u l e s a n d R e g u l a t io n s o f t h e

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

Par t 302—F orm ulation an d P rom ulgation of

R ules an d R egulations

Sec.

302.1 Notice.

302.2 Public participation.

302.3 Formulation of rules.

302.4 Petitions.

302.5 Effective date.

302.6 Exceptions.

302.7 Amendment and repeal.

A u t h o r it y : §§ 302.1 to 302.7 issued under sec. 9, Pub. Law 797, 

81st Cong.

§ 302.1 Notice. General notice of proposed rule making, including 

amendments thereto or repeal thereof, will be published in the F ederal

R egister , except as specified in § 302.6, or otherwise excepted by law.

iRules and Regulations published in Federal Register of December 6, 1950 (15 F.R. 8628) with 

effective date of January 6, 1951, as revision of Chapter III, Title 12, Code of Federal Regulations.

158

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Such notice will include either the terms or substance of the proposed 

rule or a description of the subjects and issues involved, reference to 

the authority under which the rule is proposed, and a statement of the 

time, place, and nature of the public proceedings for making the rule.

§ 302.2 Public participation. Interested persons will be afforded 

an opportunity to participate in the making of any rule, except as specified 

in § 302.6, or otherwise excepted by law, through the submission of 

written data, views, or arguments, unless the board of directors shall 

specifically provide an opportunity for the oral presentation thereof.

§ 302.3 Formulation of rules. After consideration of all relevant 

matter presented, the Committee on Administration will submit its 

recommendations to the board of directors and, in collaboration with 

appropriate Divisions, will prepare drafts of any proposed rules or 

amendments. The board of directors will take such action thereon as it 

deems appropriate and in any rule adopted will incorporate therein a 

concise general statement of its basis and purpose.

§ 302.4 Petitions. Any interested person may petition the Corporation for the issuance, amendment, or repeal of any rule by submitting 

such petition in writing together with a complete and concise statement 

of the petitioner’s interest in the subject matter and the reasons why 

the petition should be granted. Such petition should be submitted to 

the Secretary.

§ 302.5 Effective date. Any rule issued by the Corporation will 

be published or served not less than thirty (30) days prior to the effective 

date thereof except as specified in § 302.6 or otherwise excepted by law.

§ 302.6 Exceptions. Whenever the Corporation finds that notice 

of, and public participation in, rule making is impracticable, unnecessary, 

or contrary to the public interest, or there is good cause why the effective 

date of any rule should not be deferred for thirty (30) days, the provisions 

of §§ 302.1, 302.2, and 302.5 shall not apply; and any such rule when 

published will incorporate the finding and a brief statement of the 

reasons therefor.

§ 302.7 Amendment and repeal. The right to alter, amend, or 

repeal the whole or any part of any rule except as otherwise provided by 

law, is expressly reserved.

Par t 303—A pplications, R equests, and Subm ittals

Sec.

303.1 Application by nonmember bank for deposit insurance.

303.2 Application by State nonmember insured bank to establish a

branch.

303.3 Application by State nonmember insured bank to move main

office or branch.

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303.4 Application by insured State nonmember bank to reduce or

retire capital.

303.5 Application for conversion, merger, consolidation, assumption

and sale of asset transactions.

303.6 Application by State nonmember insured bank to extend its

corporate or charter powers.

303.7 Application to continue or resume insured status.

303.8 Applications for use of other official sign or for exemption from

advertising requirements.

303.9 Other applications.

303.10 Procedure on applications.

303.11 Notice of disposition of application.

A u t h o r it y : §§ 303.1 to 303.11 issued under sec. 9, Pub. Law 797, 

81st Cong. Interpret or apply secs. 5, 6, 8, 18, 19, Pub. Law, 797, 81st 

Cong.

§ 303.1 Application by nonmember bank1 for deposit insurance. 

Application for deposit insurance by an existing or proposed State nonmember bank should be filed with the Supervising Examiner of the 

Federal Deposit Insurance District in which the bank or proposed bank 

is or will be located. Any such application (a) by an existing bank must 

be accompanied by separate applications for the consent of the Corporation to the continued operation of each branch which it proposes to 

continue to operate; (b) by a proposed bank must be accompanied by a 

separate application for the consent of the Corporation to establish and 

operate each proposed branch. The appropriate forms of application 

and instructions for completing the same may be obtained upon request 

from the Supervising Examiner of the District in which the application 

originates. (See Part 304 of this subchapter for list of forms and instructions.)2

§ 303.2 Application by State nonmember insured bank to establish a

branch.* Application by a State nonmember insured bank (except a 

District bank) to establish and operate a new branch should be filed 

with the Supervising Examiner of the Federal Deposit Insurance District 

in which the bank is located. The appropriate form of application and 

instructions for completing the same may be obtained upon request 

from the Supervising Examiner of the District in which the application 

originates. (See Part 304 of this subchapter for list of forms and instructions.)

§ 303.3 Application by State nonmember insured bank to move main

office or branch. Application for the consent of the Corporation to move 

the main office or branch of a State nonmember insured bank (except a

i A nonmember bank is a bank which is not a member of the Federal Reserve System.

* For information concerning applications for deposit insurance by national nonmember banks, 

inquiries should be addressed to the Chief of the Division of Examination, Washington 25, D. C.

* “ 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, or the Virgin Islands at which deposits are received or checks paid or money 

lent.” (Sec. 3 (o) (Pub. Law 797, 81st Cong.) )

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District bank) should be filed with the Supervising Examiner of the 

Federal Deposit Insurance District in which the bank is located. The 

appropriate form of application and instructions for completing the same 

may be obtained upon request from the Supervising Examiner of the 

District in which the application originates. (See Part 304 of this subchapter for list of forms and instructions.)

§ 303.4 Application by insured State nonmember bank to reduce or

retire capital. Application for the consent of the Corporation to the 

reduction in the amount, or retirement of any part, of the common or 

preferred capital stock, or retirement of any part of the capital notes 

or debentures, of an insured State nonmember bank (except a District 

bank) should be filed with the Supervising Examiner of the Federal 

Deposit Insurance District in which the bank is located. The appropriate 

form of application and instructions for completing the same may be 

obtained upon request from the Supervising Examiner of the District 

in which the application originates. (See Part 304 of this subchapter 

for list of forms and instructions.)

§ 303.5 Application for conversion, merger, consolidation, assumption

and sale of asset transactions— (a) With noninsured bank or institution. 

Application by an insured bank for the consent of the Corporation to 

merge or consolidate with a noninsured bank or institution, or to convert 

into a noninsured institution, or to assume liability to pay any deposits 

made in, or similar liabilities of, any noninsured bank or institution, or 

to transfer assets to any noninsured bank or institution in consideration 

of the assumption of liability for any portion of the deposits made in 

such insured bank, together with copies of all agreements or proposed 

agreements relating thereto, should be filed with the Supervising Examiner of the Federal Deposit Insurance District in which the insured 

bank is located. The appropriate form of application and instructions 

for completing the form as well as instructions concerning notice to 

depositors, may be obtained upon request from the office of said Supervising Examiner.

(b) Conversion with diminution of capital or surplus. Application 

for the consent of the Corporation to convert into an insured State 

nonmember bank (except a District bank)—when the conversion will 

result in the converted bank having less capital stock or surplus than 

the converted bank at the time of the shareholders’ meeting approving 

such conversion—together with copies of the charter and/or articles 

of association of the converted bank, should be filed with the Supervising 

Examiner of the Federal Deposit Insurance District in which the insured 

bank is located. The appropriate form of application and instructions 

for completing the form may be obtained upon request from the office 

of said Supervising Examiner.

(c) Merger, consolidation or assumption with diminution of capital

or surplus. Application for the consent of the Corporation to merge or

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162 FEDERAL DEPOSIT INSURANCE CORPORATION

consolidate under the charter of a State bank, or assume the liability 

to pay any deposits made in another insured bank—when the resulting 

or assuming bank is to be an insured State nonmember bank (except 

a District bank) and where the capital stock or surplus of the resulting 

or assuming bank will be less than the aggregate capital stock or aggregate surplus, respectively, of all the merging or consolidating banks 

or of all the parties to the assumption of liabilities, at the time of the 

shareholders’ meetings which authorized the merger or consolidation 

or at the time of such assumption—together with copies of all agreements 

or proposed agreements, charters and articles of association relating 

thereto, should be filed with the Supervising Examiner of the Federal 

Deposit Insurance District in which the resulting or assuming bank is 

located. The appropriate form of application and instructions for completing the same may be obtained upon request from the office of said 

Supervising Examiner.

§ 303.6 Application by State nonmember insured bank to extend its

corporate or charter powers. Application for the consent of the Corporation to the extension of the corporate or charter powers of a State nonmember insured bank (except a District bank) should be filed with the 

Supervising Examiner of the Federal Deposit Insurance District in 

which the bank is located. The appropriate form of application and 

instructions for completing the same may be obtained upon request 

from the Supervising Examiner of the District in which the application 

originates. (See Part 304 of this subchapter for list of forms and instructions.)

§ 303.7 Application to continue or resume insured status. Application 

under § 327.3 (c) of this chapter by a bank whose insured status has 

been terminated, to be permitted to continue or to resume its status as 

an insured bank, should be filed with the Supervising Examiner of the 

Federal Deposit Insurance District in which the bank is located. Such 

application should be (a) in writing; (b) signed by the president, or 

cashier, or other managing officer of the bank; (c) accompanied by a 

certified copy of the resolution of its board of directors authorizing the 

submission of such application; and should contain (d) a statement 

that the bank's insured status has been terminated, the date thereof, 

and the basis therefor, that the insurance of its deposits has not ceased, 

and that it applies for permission to continue or resume its status as 

an insured bank; and (e) the reasons why the continuance or resumption 

of such status should be permitted by the Corporation.

§ 303.8 Application for use of other official sign or for exemption from

advertising requirements. Any application made by an insured bank 

under any of the provisions of Part 328 of this chapter should be filed 

with the Division of Examination of the Corporation at its principal 

office. Such application should (a) be in writing; (b) be signed by the 

president, or cashier, or other managing officer of the bank; and (c)

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state, in conformity with the particular provision in respect of which 

the application is made, the reason for the request in detail and the 

reason why the application should be granted and in case of an official 

sign should be accompanied by a sample of the proposed sign.

§ 303.9 Other applications. Except as otherwise provided by rule 

or regulation, all applications, requests, and submittals for which no 

form of application has been prescribed by the Corporation, should be

(a) in writing; (b) signed by the applicant or his duly authorized agent; 

and (c) should contain a statement of the applicant’s interest therein, 

a complete and concise statement of the action requested and the reasons 

and facts relied upon as the basis for such requested action; and should 

be addressed to the Secretary at the principal office of the Corporation. 

The applicant shall furnish such other pertinent information as may be 

required by the Corporation.

Whenever applicable the forms specified in Part 304 of this subchapter 

should be used and the instructions issued with respect thereto should 

be followed and submission made as therein provided.

§ 303.10 Procedure on applications. With respect to applications 

for deposit insurance under § 303.1, the Division of Examination of 

the Corporation will cause an investigation to be conducted, and an 

examination to be made of the bank or proposed bank; and the board 

of directors will thereafter, in accordance with applicable provisions of 

law, act upon such application, the report of such investigation and 

examination, the recommendations thereon of the examiner and Supervising Examiner of the District in which the bank is or will be located, 

of the Division of Examination and of the Board of Review, and the 

legal opinion of counsel for the Corporation. The applicant bank will 

be duly advised of the board’s decision upon such application.

With respect to all other applications, requests, or submittals the board 

of directors will cause such an investigation or examination, or both, 

to be made by the proper Divisions of the Corporation, as the board 

shall deem appropriate, and upon the report of such investigation and 

examination, and the recommendations thereon, will take such action 

as it shall deem necessary or appropriate in the premises.

§ 303.11 Notice of disposition of application. Prompt notice will be 

given of the grant or denial, in whole or in part, of any written application, petition, or other request of any interested person made in connection with any agency proceeding. In the case of a denial, except in 

affirming a prior denial, or where the same is self-explanatory, such 

notice will be accompanied by a simple statement of procedural or other 

grounds.

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1 6 4 FEDERAL DEPOSIT INSURANCE CORPORATION

Part 304—F orms, I nstructions, an d R eports

Sec.

304.1 Certified statements.

304.2 Reports of condition, etc.

304.3 Forms and instructions.

A u t h o r it y: §§ 304.1 to 304.3 issued under sec. 9, Pub. Law 797, 

81st Cong. Interpret or apply secs. 5-8, 10, 18, 19, Pub. Law 797, 81st 

Cong.

§ 304.1 Certified statements. The certified statements required to 

be filed by insured banks in accordance with the provisions of section 7 

of the Federal Deposit Insurance Act shall be filed with the Fiscal Agent 

of the Corporation upon the forms, and in the manner, and pursuant 

to the instructions prescribed by the board of directors; and the assessments required to be certified must be paid to the Corporation at the 

time such statements are required to be filed. The form of certified 

statement and instructions for completing the same will be furnished 

to all insured banks by, or may be obtained upon request from, the 

Fiscal Agent.

§ 304.2 Reports of condition, etc. Whenever required by the board 

of directors pursuant to law, insured State nonmember banks (except 

District banks) should file reports of condition, reports of earnings and 

dividends, and summaries of deposits, with the Division of Research 

and Statistics upon the forms, and in the manner, and pursuant to 

the instructions, prescribed by the board of directors from time to time. 

The form of such reports and instructions for completing the same 

will be furnished to all such banks by, or may be obtained upon request 

from, the Division of Research and Statistics.

§ 304.3 Forms and instructions. The following forms and instructions 

have been prepared by the Corporation for the use of banks and may 

be obtained by any person properly and directly concerned therewith 

upon request at the office designated in this chapter:

(a) Form 82:l Application of Proposed Bank {other than mutual

savings) for Federal Deposit Insurance. The proposed incorporators 

are required to make statements and representations and to submit 

information with respect to the several factors enumerated in section 6 

of the Federal Deposit Insurance Act. The application on Form 82 must 

be executed in quadruplicate. Three applications signed by the proposed 

incorporators must be forwarded to the Supervising Examiner and the 

other application retained by the prospective incorporators. Applications 

filed on Form 82 must be accompanied by a certified copy of the proposed 

Articles of Incorporation or Association and the requisite number of

i If the proposed bank contemplates the establishment of a branch or branches, its application 

on Form 82 must be accompanied by a properly executed Form 85 for each branch. Form 85-M is to 

be used where the proposed bank is to be a mutual savings bank.

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properly executed Forms 83. After incorporation is duly effected, the 

bank must submit a properly executed Form 82a.

(b) Form 82-M:1 Application of Proposed Mutual Savings Bank for

Federal Deposit Insurance. Form 82-M, which is substantially the 

same as Form 82, should be used when the proposed bank is to be a 

mutual savings bank, and should be prepared and submitted in the same 

manner as Form 82.

(c) Form 82a and Form 82a-M: Certificate of Adoption of Resolution.

Form 82a is a copy of the Resolution of the board of directors (or trustees) 

of the bank approving the action of the prospective incorporators in 

preparing and presenting its application for Federal deposit insurance 

on Form 82 or 82-M, certified to be a true and correct copy by the president or vice president and cashier or secretary. After incorporation has 

been duly effected and the bank is chartered to do business by the proper 

state authority, four properly executed Forms 82a must be transmitted 

to the Supervising Examiner. If not previously submitted, Form 82a 

must be accompanied by a copy of the bank’s Articles of Incorporation 

or Association and a copy of the bank’s license or authorization to 

engage in the business of receiving deposits.

(d) Form 81+:* Application for Federal Deposit Insurance by an existing

noninsured State bank (other than mutual savings). The applicant bank 

is required to submit statements, representations, and information with 

respect to the several factors enumerated in section 6 of the Federal 

Deposit Insurance Act, and a copy of the resolution of its board of 

directors authorizing the bank’s president or vice president and cashier 

or secretary to make the application. The application must be executed 

in quadruplicate, signed by such officers and the bank’s corporate seal 

affixed thereto. Three signed applications must be forwarded to the 

Supervising Examiner and the other application retained by the bank 

as part of its permanent records. Applications filed on Form 84 must be 

accompanied by the requisite number of properly executed Forms 83 

and a certified copy of the Articles of Incorporation or Association, 

including any amendments thereto.

(e) Form 84-M;2 Application for Federal Deposit Insurance by an

existing noninsured mutual savings bank. Form 84-M, which is substantially the same as Form 84, should be used by mutual savings banks, 

and should be prepared and submitted in the same manner as Form 84.

(f) Form 88 and Form 88-M: Financial Statement. Form 83 must 

be executed in triplicate and certified to be true and correct by each 

individual director (or trustee) and officer of the bank or proposed bank 

(who is solely responsible for its contents) for the benefit of the board 

of directors of the Corporation in determining, with respect to the

1 If the proposed bank contemplates the establishment of a branch or branches, its application 

on Form 82 must be accompanied by a properly executed Form 85 for each branch. Form 85-M is to 

be used where the proposed bank is to be a mutual savings bank.

* If the bank has a branch or branches, its application on Form 84 must be accompanied by a properly 

executed Form 85 for each branch. Form 85-M is to be used where the bank is a mutual savings bank.

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applicant bank, the general character of its management in accordance 

with section 6 of the Federal Deposit Insurance Act. The requisite 

number of properly executed and signed Forms 83 must accompany 

each application on Form 82, Form 82-M, Form 84, or Form 84-M.

(g) Form 85, Form 85a and Form 85b: Application of State nonmember insured bank (except District bank and mutual savings bank) to

establish or move its main office or branch. (1) Form 85 is an application 

to establish a branch. The applicant bank is required to submit statements, representations and information with respect to the several 

factors enumerated in section 6 of the Federal Deposit Insurance Act 

and a copy of the resolution of its board of directors authorizing the 

bank’s president or vice president and cashier or secretary to make the 

application. The application must be executed in quadruplicate, signed 

by the president or vice president, have the corporate seal of the bank 

affixed thereto, and be attested by the cashier or secretary. Three signed 

applications must be forwarded to the Supervising Examiner and the 

other application retained in the files of the bank as part of its permanent 

records. The application must be accompanied by a certified copy of 

the bank’s Articles of Incorporation or Association, including any amendments thereto unless previously submitted to the Corporation and 

not subsequently amended.

(2) Form 85a is an application to move main office or branch. It is 

similar to Form 85 and should be prepared and submitted in the same 

manner as Form 85.

(3) Form 85b is an application to establish a branch pursuant to 

designation as depositary and financial agent of the United States 

Government. It is similar to Form 85 and should be prepared and submitted in the same manner as Form 85.

(h) Form 85-M and Form 85a-M: Application by insured nonmember

mutual savings bank to establish a branch or move its main office or branch.

(1) Form 85-M is substantially the same as Form 85 and should be 

prepared and submitted in the same manner as Form 85.

(2) Form 85a-M is substantially the same as Form 85a and should 

be prepared and submitted in the same manner as Form 85.

(i) Form 100: Application for Consent to Retirement of Common or

Preferred Stock, Capital Notes, or Debentures. The applicant bank is 

required to submit statements with respect to the nature of the proposal, 

source of funds to effect the proposal, and other steps involved in the 

retirement. The application contains a statement of assets and liabilities 

and the disposition of certain assets adversely classified in the preceding 

Report of Examination made of the bank by examiners of the Corporation. Three applications certified to be true and correct and signed by 

the president or cashier of the bank must be forwarded to the Supervising Examiner.

(j) Form 102: Application. Form 102 should be used by all banks

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applying for the consent of the Corporation with respect to any application requiring such consent and for which no specific form is prescribed 

by this section or otherwise. The form contains a copy of the resolution 

of the bank’s board of directors describing the proposal and authorizing 

the application, a statement of the action taken upon the proposal by 

the proper state banking authority, where such action is required, and 

must be signed by the president or vice president and attested by the 

cashier or secretary. The application must be accompanied by a copy 

of the bank’s Articles of Incorporation or Association including any 

amendments thereto unless previously submitted to the Corporation 

and not subsequently amended. The application must be executed 

in quadruplicate. Three signed applications must be submitted to the 

Supervising Examiner of the District wherein the bank is located and 

one copy retained in the bank’s files.

(k) Form 64 (Short form): Report of Condition (from banks other than

mutual savings). Form 64 is a report in the form of a standard statement 

of the Assets and Liabilities of the reporting bank together with additional detailed breakdown of selected items. When special circumstances 

so require, additional detail with respect to specific asset or liability 

items may be required. Reports of Condition must be prepared in accordance with the instructions contained in the booklet entitled “ Instructions for the preparation of Report of Condition on Form 64 (Short 

form)” , copies of which are furnished by the Corporation to all insured 

State nonmember banks (except District banks) and which may be 

obtained on request from the Division of Research and Statistics.

(1) Form 64 (Savings): Report of Condition (from mutual savings

banks). Form 64 (Savings) is substantially the same as Form 64 (Short 

form) and should be used by mutual savings banks.

(m) Form 73: Report of Earnings and Dividends (from banks other

than mutual savings). Report of Earnings and Dividends, Form 73, 

is a report in the form of a standard profit and loss statement and a 

reconciliation of changes in total capital accounts during the year. 

When special circumstances so require additional detail with respect to 

specific income or expense items, charge-offs or recoveries, profits on 

assets sold, or changes in total capital account may be required. Reports 

of Earnings and Dividends must be prepared in accordance with the 

instructions contained in the booklet entitled “ Instructions for the 

preparation of Report of Earnings and Dividends on Form 73” , which is 

furnished by the Corporation to all insured State nonmember banks 

(except District banks) and which may be obtained on request from the 

Division of Research and Statistics.

(n) Form 73 (Savings): Report of Earnings and Dividends (from

mutual savings banks). Form 73 (Savings) is substantially the same 

as Form 73 and should be used by mutual savings banks.

(o) Form 89: Summary of Deposits. Report of Summary of Deposits

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is a report of the number of deposit accounts and the amount of deposits 

in such accounts grouped by size of account and type of deposit . Summary 

of deposit reports must be prepared in accordance with instructions 

contained in the pamphlet entitled “ Instructions for preparation of 

Form 89” , which is furnished by the Corporation to all insured banks 

and which may be obtained on request from the Division of Research 

and Statistics.

(p) Form 51+5: Certified statement. A Form 545 must be submitted 

on or before January 15 and July 15 of each year by every insured bank 

except newly insured banks which must submit their First Certified 

Statement on Form 645. Form 545 shows the deposit liabilities, less 

authorized deductions, for the two base days in each semiannual period. 

The base days are March 31 and June 30 for the six months ending 

June 30, and September 30 and December 31 for the six months ending 

December 31. When any of said base days is a non-business day or a 

holiday, either national or state, the preceding business day shall be 

used. The form will show the computation of the assessment base and 

the amount of the assessment due the Corporation. It must be prepared 

in duplicate, signed by an official of the bank and the original must 

be forwarded to the Fiscal Agent. The duplicate copy should be retained 

in the bank’s file. The forms are mailed to all insured banks each six 

months in ample time to permit compliance with the law, but if not 

received on or before January 1 or July 1, they should be obtained from 

the Fiscal Agent. Instructions for the preparation of said forms are 

furnished all insured banks by the Fiscal Agent.

(q) Form 555: Tabulation of assessment base. Form 555 is used for 

the tabulation of total deposit liabilities, deductions claimed, and deposits 

for the assessment base for assessment base days. Each form has spaces 

for recording the figures for the two base days in each semiannual period. 

The form and the supporting records required under section 7 (a) of 

the Federal Deposit Insurance Act, must be retained by the bank as 

part of its records. A supply of these forms is mailed periodically to each 

insured bank. Additional supplies of the form may be obtained from the 

Fiscal Agent upon request.

(r) Form 645: First certified statement. The First Certified Statement, Form 645, must be submitted on or before July 15 or January 15 

following the semiannual period in which the bank began operation 

as an insured bank. The form shows the deposit liabilities, less authorized 

deductions, for the applicable base day, either June 30 or December 31, 

or if the applicable day falls on a non-business day or a holiday, the 

preceding business day shall be used. The form will show the computation 

of the assessment base and the amount of the assessment due the Corporation. It must be prepared in duplicate, signed by an official of the 

bank, and the original must be forwarded to the Fiscal Agent. The 

duplicate copy should be retained in the bank’s file. The forms will be

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mailed by the Fiscal Agent to newly insured banks with appropriate 

instructions for their preparation.

(s) Form 845: Final certified statement—for use by an insured bank

whose deposits are assumed by another insured bank. This Statement, 

Form 845, shows the deposit liabilities, less authorized deductions of 

the bank on the base days prior to the assumption date. Form 845 accompanied by appropriate letter of explanation and instructions will 

be mailed by the Fiscal Agent to each insured bank whose deposit liabilities are assumed by another insured bank. The form must be prepared 

in duplicate, signed by an officer of the bank and the original must be 

forwarded to the Fiscal Agent. The duplicate copy should be retained 

in the bank’s files. If the deposits of the liquidating bank are assumed 

by a newly insured bank, the liquidating bank is not required to file 

Form 845 or to pay any assessments upon the deposits so assumed after 

the semiannual period in which the assumption takes effect.

(t) Form 845A: Final certified statement—for use of an insured bank

whose deposit liabilities are assumed by another insured operating bank

(To be used when the assuming bank executes the certified statement for the

bank whose deposits were assumed). Form 845A may be substituted for 

Form 845 described in paragraph (s) of this section if the assuming bank 

is executing the Certified Statement for the bank whose deposit liabilities 

were assumed. Form 845A is prepared in the same manner as Form 

845 except the certification is executed by an official of the assuming 

bank.

(u) Amended and corrected certified statements. Forms for use in 

amending or correcting previously submitted Certified Statements are 

identical in number and form with Forms 545, 645, 845, and 845A described above except the title of the form contains the additional word 

“ Amended” or “ Corrected” . These forms may be obtained on request 

from the Fiscal Agent.

Part 305—Pa y m e n t of I nsured D eposits

§ 305.1 Payment of insured deposits in closed banks. When an 

insured bank closes under circumstances requiring the Corporation to 

make payment of the insured deposits1 therein, as prescribed by law,2 

the Board of Directors appoints one or more Claim Agents with power 

and authority as provided by law8 who maintain a temporary office at 

the site of the closed bank for the purpose of receiving claims for insured 

deposits and making payment thereof as soon as possible in accordance 

with applicable law. Claimants for insured deposits are required to submit 

to such Claim Agents appropriate proofs of claim, in form and manner

1 Defined in section 3 (m) of the Federal Deposit Insurance Act.

* See section 11 of the Federal Deposit Insurance Act, particularly subsections (b), (f) and (g).

* See section 10 (b) of the Federal Deposit Insurance Act.

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170 FEDERAL DEPOSIT INSURANCE CORPORATION

prescribed by law or by the Board of Directors, to deliver up any pass 

book or other record issued by the bank evidencing the insured deposit, 

to assign their claims for insured deposits to the Corporation to the 

extent required by law, and to furnish proper identification. The claimant 

is required to make proof thereof to the satisfaction of the Claim Agent. 

Disputed claims which cannot be adjusted in the field are referred to 

the Chief of the Division of Liquidation for determination and when 

satisfactory disposition cannot be so made, may be referred to the Board 

of Directors for appropriate action. In cases where the Corporation is 

not satisfied as to the validity of a claim for an insured deposit, it may 

require the final determination of a court of competent jurisdiction 

before paying such claim. The Corporation is authorized to make payment of the insured deposits in cash or by making available to each 

depositor a transferred deposit in a new bank in the same community 

or in another insured bank in an amount equal to the insured deposit 

of such depositor. Any such transferred deposit would be a demand 

deposit in the absence of an agreement between the depositor and transferee bank providing for a time or savings deposit. The Corporation's 

practice has been to make such payment by issuing its check for the 

amount of the insured deposit. In making such payments, the Corporation exercises its statutory authority to withhold payment of such 

portion of the insured deposit of any depositor as may be required to 

provide for the payment of any liability of such depositor as a stockholder of the bank, or of any liability of such depositor to the closed 

bank or its receiver, which is not offset against a claim due from the 

bank, pending the determination and payment of such liability by the 

depositor or any other person liable therefor.

(Sec. 9, Pub. Law 797, 81st Cong. Interprets or applies secs. 10, 11, Pub. Law 797, 

81st Cong.) _____________

Par t 306—R eceiverships an d L iquidations

Sec.

306.1 Liquidation of assets acquired through loans and purchases.

306.2 National bank receiverships.

306.3 State bank receiverships.

A u t h o r it y : §§ 306.1 to 306.3 issued under sec. 9, Pub. Law 797, 

81st Cong. Interpret or apply secs. 11, 12, 13, Pub. Law 797, 81st Cong.

§ 306.1 Liquidation of assets acquired through loans and purchases. 

Assets acquired by the Corporation pursuant to contracts of loan or 

purchase from insured banks or receivers of closed insured banks, in 

accordance with the provisions of the Federal Deposit Insurance Act, 

are liquidated by the Corporation through a liquidator appointed in 

the same manner as in the case of a national bank receivership (see 

§ 306.2). The liquidator takes possession of the assets and usually maintains a liquidating office in the vicinity of the bank from which the assets

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were acquired. The liquidator receives collections of debts and claims 

due, effects sales of assets, compositions and compromises of debts, 

and otherwise enforces claims and obligations due and owing and arising 

out of the liquidation. Proposals for the sale of assets, compositions and 

compromises, and extensions or renewals of debts due or other contracts, 

are transmitted by the liquidator to the Chief of the Division of Liquidation and are in turn submitted to the Committee on Liquidations, Loans, 

and Purchases of Assets and to the Board of Directors of the Corporation 

for approval. Expenses of administration, attorneys’ fees, proposals for 

leasing, engaging brokers or others, independent contractors, and advances to protect assets are likewise submitted by the liquidator for 

transmission with the recommendation of the Division of Liquidation 

to the Committee on Liquidations, Loans, and Purchases of Assets 

and to the Board of Directors of the Corporation for approval. In general, 

the liquidator is the local representative of the Corporation and proceeds 

in compliance with the manual of instructions of the Division of Liquidation to liquidate the assets so acquired.

§ 306.2 National bank receiverships. Whenever the Comptroller of 

the Currency appoints a receiver (other than conservator) of a national 

or District bank, it must be the Corporation. Immediately upon appointment the Corporation takes possession of the records, assets, and 

affairs of the bank through one of its agents, usually a liquidator, appointed to represent the Corporation in that receivership. If possession 

is taken by an agent other than a liquidator, the liquidator, when appointed, is substituted for the agent. The Board of Directors of the 

Corporation appoints the agent to take possession, the liquidator, such 

assistant liquidators, and personnel, as may be neccssary, as well as an 

attorney to furnish the Corporation as receiver with such legal assistance 

as may be required in the administration of the receivership. The liquidator as local representative of the Corporation proceeds, in compliance 

with the manual of instructions of the Division of Liquidation, and in 

conformity with the applicable provisions of the National Bank Act 

and the Federal Deposit Insurance Act, to liquidate the assets, receive 

claims of depositors (claiming in excess of $10,000 per depositor)1 and 

other creditors, pay the expenses of administration, distribute the proceeds of such liquidation, and otherwise wind up the affairs of the bank 

subject to the control of the Board of Directors of the Corporation and 

under the supervision of the Chief of the Division of Liquidation. After 

notice by advertisement pursuant to law, depositors having claims in 

excess of $10,000 per depositor, and other creditors, are permitted to 

file claims with the liquidator, who transmits such claims to the Division 

of Liquidation for allowance, classification, and deductions by way of 

set-offs or counterclaims. Such claims are filed on blanks prescribed from

i Claims for insured deposits up to $10,000 for each depositor are filed with a Claim Agent, appointed by the Board of Directors of the Corporation, who represents the Corporation in its capacity 

as insurer of deposit (see Part 305 of this chapter).

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time to time by the Corporation and when allowed are evidenced by 

receiver’s certificates issued by the Division of Liquidation on such 

forms as are from time to time prescribed by the Corporation. The 

liquidator receives collections of debts and claims due to the receivership, 

effects sales of assets, compositions and compromises of debts, and 

otherwise enforces claims and obligations, owing to the receivership. 

All proceeds of the liquidation are segregated and are kept separate 

and apart from the general and other funds of the Corporation. Proposals 

for the sale of assets, compositions, and compromises are transmitted 

by the liquidator to the Division of Liquidation, which in turn submits 

them to the Committee on Liquidations, Loans, and Purchases of Assets 

and to the Board of Directors of the Corporation for approval; and upon 

such approval the liquidator, through local counsel, presents the proposals to a court of competent jurisdiction for authorization as provided 

by 12 U. S. C. 192. Expenses of administration are similarly submitted 

by the Division of Liquidation for approval by the Board of Directors. 

Attorney fees are submitted by the Legal Division for determination 

by the Board of Directors. Proposals for leasing, engaging brokers or 

others, independent contractors, extensions or renewals of debts due the 

receivership, or other contracts, and advances to protect assets, are 

submitted by the liquidator for transmission and recommendation by 

the Division of Liquidation to the Committee on Liquidations, Loans, 

and Purchases of Assets and to the Board of Directors for authorization. 

When sufficient funds have been realized from the liquidation to justify 

payment of a dividend to creditors, the Division of Liquidation submits 

a recommendation to the Board of Directors, which orders a ratable 

dividend to be paid. Dividend checks are drawn by the Division of 

Liquidation on receivership funds and transmitted to the liquidator for 

delivery to the claimants who are required to present their receiver’s 

certificates for endorsement thereon and to execute receipts for such 

dividends. If such claims are paid in full with interest, receivership 

certificates must be surrendered. If surplus assets remain after payment 

of dividends to creditors equal to the principal of their respective claims 

plus interest thereon, a meeting of the shareholders is called pursuant 

to the provisions of 12 U. S. C. 197, for the purpose of determining 

whether a shareholders’ agent shall be elected or the receivership continued. If the shareholders elect to have a shareholders’ agent appointed, 

then the assets are assigned and delivered to the shareholders’ agent 

upon compliance w’ith the requirements of 12 U. S. C. 197.

§ 306.3 State bank receiverships. When the Corporation accepts 

appointment as receiver of an insured State bank4 the board of directors 

appoints an agent or liquidator to take possession, on behalf of the 

Corporation, of the assets, books, and records, and to administer the 

affairs, of the closed bank. The liquidator as the local representative

4 Pursuant to the provisions of section 11 (e) of the Federal Deposit Insurance Act.

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of the Corporation proceeds, in accordance with the provisions of the 

applicable law of the State in which the bank is located, and in conformity with the manual of instructions of the Division of Liquidation, 

to administer the receivership, subject to the control of the board of 

directors and under the supervision of the Division of Liquidation.

Part 307—V o luntary T erm in atio n of Insured Status

Sec.

307.1 Steps to be taken and records to be furnished the Corporation

by an insured nonmember bank in liquidation.

307.2 Steps to be taken and records to be furnished the Corporation

by a member bank in liquidation (both State and national).

307.3 Steps to be taken and records to be furnished the Corporation

where deposits are assumed by another insured bank. 

A u t h o r it y : §§ 307.1 to 307.3, issued under sec. 9, Pub. Law 797, 

81st Cong. Interpret or apply secs. 7, 8, Pub. Law 797, 81st Cong.

§307.1 Steps to be taken and records to be furnished the Corporation

by an insured nonmember bank in liquidation, (a) Whenever a nonmember bank goes into liquidation and its insured status has not been 

terminated by the board1 and its deposit liabilities are not assumed by 

another insured bank, it shall terminate its status as an insured bank in 

accordance with the provisions of section 8 (a) of the Federal Deposit 

Insurance Act.2 To effect such termination the bank shall adopt a resolution in form substantially as follows:

Resolved: (1) That the status of the.............................................................................

(Name of bank) (City or town)

................................................ as an insured bank under the provisions of the Federal

(State)

Deposit Insurance Act shall terminate ninety (90) days from the date of the receipt 

by the Federal Deposit Insurance Corporation of a copy of this resolution;8

(2) That........................................................................................................................is

(cashier or other officer) 

hereby directed to immediately forward a certified copy of this resolution to the 

Federal Deposit Insurance Corporation, Washington 25, D. C., which shall constitute 

the notice of termination prescribed in section 8 (a) of that Act.

Upon receipt of a certified copy of the aforesaid resolution the Corporation will promptly advise the bank of the date of the receipt thereof, 

and confirm the date of the termination of its insured status.

i Board means Board of Directors of the Federal Deposit Insurance Corporation. 

s Section 8 (a) of the Federal Deposit Insurance Act provides, in part, as follows: “ Any insured 

bank (except a national member bank or State member bank) may, upon not less than ninety days' written

notice to the Corporation, and to the Reconstruction Finance Corporation if it owns or holds as pledgee 

any preferred stock, capital notes, or debentures of such bank, terminate its status as an insured bank.

* * * After the termination of the insured status of any bank * * * the insured deposits of each depositor in the bank on the date of such termination, less all subsequent withdrawals from any deposits 

of such depositor, shall continue for a period of two years to be insured, and the bank shall continue to 

pay to the Corporation assessments as in the case of an insured bank during such period. * * *” [Italics 

supplied.]

* If the bank desires to fix a later date of termination, it may do so a3 the law prescribes only the 

minimum notice period which is ninety (90) days.

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Thereupon, and prior to the termination date, the bank shall give 

notice to its depositors of the termination of its insured status. Such 

notice shall be (1) mailed to each depositor at his last address of record 

as shown upon the books of the bank, (2) published in not less than two 

issues of a local newspaper of general circulation, and (3) in form substantially as follows:

(Date)

Notice to Depositors:

Please be advised that the status of the.......................................................................

(Name of bank)

............................................................................. as an insured bank under the pro-

(City or town) (State)

visions of the Federal Deposit Insurance Act, will terminate on......................... day

of......................................................... 19...........

You are further advised that your insured deposits in this bank on the date of 

termination will continue to be insured within the limitations provided by law.

(Name of bank)

(Address)

There may be included in such notice any additional information or 

advice the bank may deem desirable.

Whenever the bank proposes to pay its depositors and, at the direction 

of the depositors, effects such payment by transferring the deposits to a 

noninsured bank, the following information shall be added to the notice 

to depositors prescribed in the above form:

You are further advised that your deposits may be transferred to the..................

(Name of noninsured bank) (City or town) (State) 

upon your direction to this bank and your acknowledgment in writing of the payment of your deposits in full by such transfer.................................................................

(Name of noninsured bank) 

is not a member of the Federal Deposit Insurance Corporation and deposits made in 

it, or transferred to it, will not be insured.

(b) The bank shall furnish to the Corporation the following records 

and information:

(1) An affidavit of the mailing and an affidavit of the publication of 

the notice to depositors. The affidavit of mailing should be executed 

by the person mailing the notice and should state (i) the date of mailing, 

(ii) that it was mailed to each depositor at his last address of record as 

shown on the books of the bank; and (iii) that a copy of the notice as 

mailed is attached.

(2) A certified copy of the resolutions pursuant to which the bank 

was placed in liquidation and/or any other document dr instrument 

required by law to place the bank in liquidation.

(3) The bank shall continue to file certified statements and pay 

assessments thereon for the period its deposits are insured, as provided

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by the Federal Deposit Insurance Act:4 Provided, That after the bank 

shall have paid in full its deposit liabilities and the assessment to the 

Corporation required to be paid for the semiannual period in which 

its deposit liabilities are paid in full, and after it shall, under applicable 

law, have ceased to have authority to transact a banking business and 

to have existence, except for the purpose of, and to the extent permitted 

by law for, winding up its affairs, it shall not be required to file further 

certified statements nor to pay further assessments.

(4) When the deposit liabilities of the bank shall have been paid in 

full, the bank shall furnish to the Corporation an affidavit executed by 

two of its officers, which affidavit shall state the fact that the deposit 

liabilities have been paid in full and give the date of the final payment 

thereof.5

(5) Where the bank has unclaimed deposits the affidavit to be furnished pursuant to subparagraph (4) of this paragraph, shall further 

state the amount of such unclaimed deposits and the disposition made 

of the funds to be held to meet such claims. For assessment purposes, 

the following will be considered as payment of such unclaimed deposits, 

viz:

(i) The transfer of cash funds in an amount sufficient to pay such 

unclaimed and unpaid deposits to the public official authorized under 

the law to receive the same; or

(ii) If no provision is made by law for the transfer of funds to a public 

official, the transfer of cash funds or compensatory assets to an insured 

bank in an amount sufficient to pay the unclaimed and unpaid deposits 

in consideration of such insured bank assuming the payment thereof: 

Provided, That, prior to such transfer, the liquidating bank shall have 

given notice, as hereinafter provided, to the owners of the unclaimed 

deposits of the intended transfer and a reasonable time shall have elapsed 

after the giving of such notice to enable the depositors to obtain their 

deposits. Such notice shall be mailed to each depositor and shall be 

published in a local newspaper of general circulation. The notice shall 

advise such depositors of the liquidation of the bank, shall request them 

to call for and accept payment of their deposits, and shall state the 

disposition to be made of their deposits upon their failure to promptly 

claim the same.

If such unclaimed and unpaid deposits are disposed of as provided in 

subdivision (i) of this subparagraph, a certified copy of the public official's 

receipt issued for such funds shall be furnished to the Corporation. If 

such unclaimed and unpaid deposits are disposed of as provided in subdivision (ii) of this subparagraph, an affidavit of the publication and of 

the mailing of the notice to depositors, together with a copy of such

« See footnote 2 to 5 307.1 (a).

1 The issuance of a draft or officer's check does not constitute the discharge of a deposit liability

nor relieve the bank of assessment until such draft or other evidence of payment has been duly presented

for payment and has been paid.

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notice, and a certified copy of the contract of assumption shall be furnished to the Corporation.

(6) The liquidating bank shall advise the Corporation of the date on 

which the authority or right of the bank to do a banking business shall 

have terminated and the method or means whereby such termination 

shall have been effected, that is, whether such termination has been 

effected by the surrender of its charter, by the cancellation of its authority 

or license to do a banking business by the supervisory authority, or 

otherwise.6

§ 307.2 Steps to be taken and records to be furnished the Corporation

by a member bank in liquidation (both State and national), (a) Whenever 

a bank which is a member of the Federal Reserve System goes into 

liquidation and its insured status has not been terminated by the Board7 

and its deposit liabilities are not assumed by another insured bank, it 

shall notify its depositors of the date of the termination of its insured 

status.8 Such notice shall be in the form prescribed in § 307.1 and shall 

be given at the time and in the manner therein provided.

(b) The bank shall furnish to the Corporation the records and information mentioned in, and comply with the requirements of, § 307.1 (b).

§ 307.3 Steps to be taken and records to be furnished the Corporation

where deposits are assumed by another insured bank.9 (a) Whenever the 

deposit liabilities of an insured bank are assumed by another insured 

bank, the bank whose deposits are assumed, or the assuming bank as 

its agent, shall give notice to its depositors of such assumption. Such 

notice shall be (1) mailed to each depositor at his last address of record 

as shown upon the books of the bank, (2) published in not less than two 

issues of a local newspaper of general circulation, and (3) in form substantially as follows:

8 As the governing law of the various jurisdictions is not uniform in this respect, it is suggested 

that the applicable statute be consulted and that this Corporation be advised of the manner in which 

the termination or cancellation of such authority has been effected.

7 See footnote 1 to § 307.1 (a).

8 Section 8 (b) of the Federal Deposit Insurance Act provides in part as follows: “ Except as provided 

in subsection (b) of section 4, whenever a member bank shall cease to be a member of the Federal Reserve 

System, its status as an insured bank shall, without notice or other action by the Board of Directors, 

terminate on the date the bank shall cease to be a member of the Federal Reserve System, with like 

effect as if its insured status had been terminated on said date by the Board of Directors after proceedings 

under subsection (a) of this section.” Regulations of the Board of Governors of the Federal Reserve 

System provide (12 CFR 208.10 footnote 13): “ A bank’s withdrawal from membership in the Federal 

Reserve System is effective on the date on which the Federal Reserve bank stock held by it is duly cancelled." Section 4 (b) of the Federal Deposit Insurance Act provides in part that: “ A State bank, resulting 

from the conversion of an insured national bank, shall continue as an insured bank. A State bank, resulting from the merger or consolidation of insured banks, or from the merger or consolidation of a 

noninsured bank or institution with an insured State bank, shall continue as an insured bank."

9 Section 8 (d) of the Federal Deposit Insurance Act provides as follows: “ Whenever the liabilities 

of an insured bank for deposits shall have been assumed by another insured bank or banks, the insured 

status of the bank whose liabilities are so assumed shall terminate on the date of receipt by the Corporation of satisfactory evidence of such assumption with like effect as if its insured status had been terminated on said date by the Board of Directors after proceedings under subsection (a) of this section: 

Provided, That if the bank whose liabilities are so assumed gives to its depositors notice of such assumption within thirty days after such assumption takes effect, by publication or by any reasonable means, 

in accordance with regulations to be prescribed by the Board of Directors, the insurance of its deposits 

shall terminate at the end of six months from the date such assumption takes effect. Such bank shall 

be subject to the duties and obligations of an insured bank for the period its deposits are insured: Provided, That if the deposits are assumed by a newly insured bank, the bank whose deposits are assumed 

shall not be required to pay any assessment upon the deposits which have been so assumed after the 

semiannual period in which the assumption takes effect."

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(Date)

Notice to Depositors:

Please be advised that the deposit liabilities shown on the books of the undersigned

bank as of the close of business on............................................ ,1 9 .......... have been

assumed by the....................................................................................................................

(Name of assuming bank) (City or town) (State)

and that the status of the undersigned bank as an insured bank will therefore terminate as provided in section 8 (d) of the Federal Deposit Insurance Act.

You are further advised that.......................................................................................

(Name of assuming bank) 

is an insured bank and that your deposits will continue to be insured by the Federal 

Deposit Insurance Corporation in the manner and to the extent provided in said act.

10

(Name of bank)

(Address)

There may be included in such notice any additional information or 

advice the bank may deem desirable.

The bank shall furnish to the Corporation an affidavit of mailing and 

an affidavit of publication of the notice to depositors. The affidavit of 

mailing should be in the form prescribed in § 307.1 (b) (1).

(b) The liquidating bank shall continue to file certified statements 

and pay assessments thereon for the period its deposits are insured, as 

provided by the Federal Deposit Insurance Act: Provided, That if the 

liquidating bank, or the assuming bank as its agent, has given the requisite notice to the depositors of the assumption of the deposit liabilities 

within 30 days after such assumption takes effect, then the liquidating 

bank shall file a final certified statement, as provided for in §304.3 (s) 

and (t), and shall pay to the Corporation the normal assessment thereon.11 

If the deposits of the liquidating bank are assumed by a newly insured 

bank, the liquidating bank is not required to file certified statements or 

pay any assessment upon the deposits so assumed, after the semiannual 

period in which the assumption takes effect.

(c) The Corporation will consider receipt of the following as satisfactory 

evidence of such assumption:

(1) A certified copy of the resolution (i) duly authorizing the bank’s 

officers to enter into a contract for the sale of the bank’s assets to another 

insured bank upon the consideration of the assumption by it of the 

deposit liabilities, and (ii) duly placing the bank in liquidation; and

(2) A certified copy of the assumption agreement, provided it contains an express undertaking by an insured bank to pay the deposit 

liabilities of the bank going into liquidation.

(d) The bank shall furnish to the Corporation the information called 

for in § 307.1 (b) (6).

18 If this notice is given by the assuming bank as agent for the liquidating bank, it may add its 

own name designating itself as agent.

11 See § 327.3 of this chapter.

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178 FEDERAL DEPOSIT INSURANCE CORPORATION

Par t 308—I n vo lu n tar y T er m in atio n of I nsured Status

Sec.

308.1 Termination of insured status by the Corporation.

308.2 Appearance and practice before the Corporation.

308.3 Notice of hearing.

308.4 Conduct of hearings.

308.5 Rules of evidence.

308.6 Proposed findings and conclusions and recommended decision.

308.7 Exceptions.

308.8 Briefs.

308.9 Certification of record to Board of Directors.

308.10 Consent to termination of insured status.

308.11 Oral argument before Board of Directors.

308.12 Decision of Board of Directors.

308.13 Filing papers.

308.14 Service; proof of service.

308.15 Copies.

308.16 Computing time.

308.17 Documents in proceedings confidential.

308.18 Formal requirements as to papers filed.

308.19 Termination of insured status of banking institution not engaged

in the business of receiving deposits other than trust funds. 

A u t h o r it y : §§ 308.1 to 308.19 issued under sec. 9, Pub. Law 797, 

81st Cong. Interpret or apply secs. 8, 10, Pub. Law 797, 81st Cong.

§ 308.1 Termination of insured status by the Corporation. Under the 

authority of section 8 (a) of the Federal Deposit Insurance Act the Board 

of Directors of the Corporation may terminate the insured status of an 

insured bank. The procedure for terminating the insured status of a 

bank as therein prescribed will be followed and the hearing required 

thereunder will be conducted in accordance with the rules and practice 

set forth in this part.

§ 308.2 Appearance and practice before the Corporation— (a) Power

of attorney and notice of appearance. The Corporation maintains no 

register of attorneys or agents who may practice before it nor is an 

application for admission to practice required. Any person desiring to 

appear before or transact business with the Corporation in a representative capacity may be required to file with the Secretary of the Corporation a power of attorney showing his authority to act in such capacity, and he may be required to show to the satisfaction of the Board 

of Directors that he has the requisite qualifications. Attorneys and 

representatives of parties to proceedings shall file a written notice of 

appearance with the Secretary or with the trial examiner.

(b) Suspension and disbarment. Any person appearing before the 

Board of Directors or before a trial examiner in a representative capacity,

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or desiring so to act, may for cause, sufficient in the judgment of the 

Board of Directors, be suspended or disbarred from so doing, provided 

that charges shall be preferred by the Board of Directors against such 

representative and he shall be afforded an opportunity to be heard 

thereon.

(c) Summary suspension. Contemptuous conduct at an argument 

before the Board of Directors or at a hearing before a trial examiner 

shall be ground for exclusion therefrom and suspension for the duration 

of the argument or hearing.

§ 308.3 Notice of hearing. Whenever a hearing is ordered by the 

Board of Directors in any proceedings a Notice of Hearing shall be given 

by the Secretary or other designated officer of the Corporation to the 

bank involved and the appropriate supervisory authority. Such notice 

shall designate the time and place of the hearing, the nature thereof, the 

trial examiner and shall specify the charges against the bank and shall 

be delivered by personal service, by registered mail to last known address, 

or other appropriate means, at least 30 days in advance of the hearing.

§ 308.4 Conduct of hearings. Any hearing shall be held before a 

person designated by the Board of Directors as the trial examiner and, 

unless otherwise provided in the notice of hearing, shall be conducted 

as hereinafter provided.

(a) Authority of trial examiner. The trial examiner at the hearing 

shall have authority to administer oaths and affirmations, take or cause 

depositions to be taken, examine witnesses and receive evidence and rule 

upon the admissibility of evidence and other matters that normally and 

properly arise in the course of the hearing; to subpena any officer or 

employee of the insured bank, to compel his attendance, and to require 

the production of any books, records or other papers of the insured 

bank which are relevant or material to the inquiry, but he shall have 

no power to decide any motion to dismiss the proceedings or other 

motion which results in a final determination of the merits of the proceedings. Except as authorized by law, the trial examiner shall not 

consult any person or party on any fact in issue unless upon notice and 

opportunity for all parties to participate, nor be responsible to or subject 

to the supervision or direction of any officer, employee, or agent engaged 

in the performance of investigative or supervisory functions. The trial 

examiner may hold conferences before or during the hearing for the 

settlement or simplification of issues by consent of the bank and counsel 

for the Corporation.

(b) Attendance at hearings. A hearing shall be private and shall be 

attended only by the bank and its representatives or counsel, representatives of the Corporation, witnesses, and other persons having an 

official interest in the proceedings; Provided, however, That on the written 

request of the bank or counsel for the Corporation, or on its own motion,

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the Board of Directors when not prohibited by law, may permit other 

persons to attend or may order the hearing to be public.

(c) Transcript of testimony. Hearings shall be reported and transcripts will be available at cost to the bank and, if the Board of Directors 

has ordered the hearing to be public, to the public. At the close of the 

hearing a complete transcript of the testimony taken, together with any 

exhibits and any briefs or memoranda of law filed theretofore on behalf 

of the bank or counsel for the Corporation, shall be filed with the Secretary. Requested corrections to a transcript of record shall be considered 

only if offered within 10 days after the date the transcript is filed with 

the Secretary (or within 10 days after the bank’s receipt of a copy of 

such transcript, if ordered by the bank before conclusion of the hearing). 

Requested corrections shall be filed with the Secretary and shall be served 

upon the other party to the proceedings as provided in § 308.14. The 

trial examiner shall have authority to act upon motions to correct the 

record.

(d) Order of procedure. The counsel for the Corporation shall open 

and close.

(e) Continuances and changes or extensions of time and changes of

place of hearing. Except as otherwise expressly provided by law, the 

Board of Directors may by the notice of hearing, or subsequent order, 

provide time limits different from those specified in this part, may on 

its own motion or for cause shown extend any time limits prescribed by 

these rules or the notice of hearing, and may continue or adjourn any 

hearing. The trial examiner may continue or adjourn a hearing to such 

time and place as may be ordered by him.

(f) Call for further evidence, oral argument and briefs, reopening of

hearings. The trial examiner may call for the production of further 

evidence upon any issue, may permit oral arguments and submission 

of briefs at the hearing, and, upon appropriate notice, may reopen any 

hearing at any time prior to the certification of his recommended decision 

to the Board of Directors, or the Board of Directors may reopen any 

hearing at any time prior to its order disposing of the proceeding.

(g) Depositions. The Board of Directors or trial examiner may order 

evidence to be taken by deposition in any proceeding at any stage thereof. 

Such depositions may be taken by the trial examiner or before any person 

designated by the Board of Directors or trial examiner and having power 

to administer oaths. Unless notice be waived, no deposition shall be 

taken except after at least 5 days’ notice to the bank and counsel for 

the Corporation.

Any party desiring to take the deposition of a witness shall make 

application in writing, setting out the reasons why such deposition 

should be taken, stating the time when, the place where, and the name 

and post-office address of the person before whom, it is desired the 

deposition be taken, the name and post-office address of the witness,

180 FEDERAL DEPOSIT INSURANCE CORPORATION

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and the subject matter or matters concerning which the witness is 

expected to testify. If good cause is shown, the Board or trial examiner 

will make and serve upon the bank, or its counsel, and counsel for the 

Corporation, an order wherein the Board of Directors or trial examiner 

shall name the witness whose deposition is to be taken and specify the 

time when, the place where, and the person before whom, the witness 

is to testify, but such time and place, and the person before whom the 

deposition is to be taken so specified in the order, may or may not be 

the same as those named in the application. The testimony of the witness 

shall be reduced to writing by the person before whom the deposition 

is taken, or under his direction, after which the deposition shall be 

subscribed by the witness and certified as a true and complete transcript 

of the testimony by the person before whom the deposition was taken and 

by him forwarded as specified in the order with three additional copies 

thereof made by him or under his direction. A certified copy thereof 

shall be furnished to the bank, or its counsel, and to counsel for the 

Corporation. Witnesses whose depositions are taken, and the person 

taking such depositions, shall severally be entitled to the same fees as 

are paid for like services in the courts of the United States which shall 

be paid by the party upon whose application the deposition was taken.

§ 308.5 Rules of evidence— (a) Evidence. Every party shall have 

the right to present his case or defense by oral and documentary evidence, 

to submit rebuttal evidence and to conduct such cross examination as 

may be required for a full and true disclosure of the facts. Irrelevant, 

immaterial or unduly repetitious evidence shall be excluded.

(b) Objections. Objections to the admission or exclusion of evidence 

shall be in short form, stating the grounds of objections relied upon, and 

the transcript shall not include argument thereon except as ordered by 

the trial examiner. Rulings on such objections and on any other matters 

shall be a part of the transcript. Failure to object to admission or exclusion of evidence or to any ruling shall be considered a waiver of such 

objection.

(c) Official notice. All matters officially noticed by the trial examiner shall appear on the record.

§ 308.6 Proposed findings and conclusions and recommended decision—

(a) Proposed findings and conclusions and supporting briefs. Within 15 

days after the filing of the transcript with the Secretary (or within 15 

days after the bank’s receipt of a copy of such transcript, if ordered by 

the bank before the conclusion of the hearing) the bank or counsel for 

the Corporation may file with the Secretary for submission to the trial 

examiner proposed findings and conclusions, which may be accompanied 

by a brief or memorandum in support thereof. A copy of such proposals 

and brief or memorandum in support thereof shall be delivered by the 

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tary upon the other party to the proceedings. All such proposed findings 

and conclusions shall be a part of the record.

(b) Recommended decision. The trial examiner, within 15 days 

after the expiration of the time allowed for filing proposed findings and 

conclusions, shall file with the Secretary his recommended decision in 

the form prescribed by law.

(c) Service of recommended decision. A copy of the recommended 

decision shall be forthwith served on the bank and on counsel for the 

Corporation by the Secretary.

§ 308.7 Exceptions— (a) Filing. Within 15 days after receipt of a 

copy of the recommended decision of the trial examiner, the bank or 

counsel for the Corporation may file with the Secretary exceptions to 

the recommended decision of the trial examiner or any portion thereof 

or to his failure to adopt a proposed finding or conclusion, or to the admission or exclusion of evidence or to any other ruling. A copy of such 

exceptions shall be forthwith delivered by the Secretary to the trial 

examiner and a copy shall be served on the other party to the proceedings. 

Exceptions shall be argued only if a hearing is ordered before the Board 

of Directors.

(b) Waiver. Failure to file exceptions to the recommended decision 

of the trial examiner or any portion thereof, or to his failure to adopt a 

proposed finding or conclusion, or to the admission or exclusion of evidence, or to any ruling, within the time so required, shall be deemed to 

be a waiver of the objections thereto.

§ 308.8 Briefs— (a) Filing. Within the time provided for filing of 

exceptions, the bank or counsel for the Corporation may file a brief in 

support of his conclusion and exceptions.

(b) Contents. All briefs shall be confined to the particular matters 

in issue. Each exception or proposed finding or conclusion which is 

briefed shall be supported by a concise argument or by citation of such 

statutes, decisions or other authorities and by page reference to such 

portions of the record or recommended decision of the trial examiner as 

may be relevant. If the exception relates to the admission or exclusion 

of evidence, the substance of the evidence admitted or excluded shall 

be set forth in the brief with appropriate references to the transcript. 

Exceptions not briefed may be regarded by the Board of Directors as 

waived.

(c) Reply briefs. Reply briefs may be filed within 10 days after 

service of briefs and shall be confined to matters in original briefs of 

opposing parties.

(d) Service of briefs. Copies of briefs shall be served by the Secretary 

on the other party to the proceedings.

(e) Delays. Briefs not filed on or before the time fixed in this part 

will be received only upon special permission of the Board of Directors.

§ 308.9 Certification of record to Board of Directors. Within 15 days

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after expiration of the time required for filing exceptions to his recommended decision, the trial examiner shall file with the Secretary of the 

Corporation and certify to the Board of Directors for initial decision 

the entire record, including the transcript of testimony, exhibits (including on request of the party concerned any exhibits excluded from 

evidence) recommended findings and conclusions, exceptions and rulings 

thereon, any briefs or memoranda filed by any party or counsel for the 

Corporation in connection therewith and his recommended decision. A 

copy of his ruling on the exceptions shall be served on the bank and on 

the counsel for the Corporation.

§ 308.10 Consent to termination of insured status. Unless a bank, 

which has received notice of intention to terminate its status as an insured 

bank pursuant to section 8 (a) of the Federal Deposit Insurance Act, 

shall appear at the hearing designated in the notice of hearing by a duly 

authorized representative, it shall be deemed to have consented to the 

termination of its status as an insured bank. In such event counsel for 

the Corporation may, but need not, present his case. Within 10 days 

of the date or close of the hearing the trial examiner shall certify the 

transcript and exhibits, if any, to the Board of Directors with his recommended decision.

§ 308.11 Oral argument before Board of Directors. Upon written 

request of the bank or counsel for the Corporation, made within 10 days 

after the certification of the record to the Board of Directors, the Board 

may order the matter to be set down for oral argument before it at the 

time and place specified in such order.

§ 308.12 Decision of Board of Directors. Appropriate members of 

the staff, who are not engaged in the performance of investigative or 

prosecuting functions, may advise and assist the Board of Directors in 

the consideration of the matter and in the preparation of appropriate 

documents for its disposition. Copies of the decision of the Board of 

Directors shall be furnished by the Secretary to the bank, to counsel for 

the Corporation and to the appropriate State supervisory authority, 

in the case of a State bank, to the Board of Governors of the Federal 

Reserve System, in the case of a State member bank, or to the Comptroller of the Currency, in the case of a national bank.

§ 308.13 Filing papers. Recommended decisions, exceptions, briefs 

and other papers required to be filed with the Board of Directors or Secretary in any proceeding shall be filed with the Secretary, Federal Deposit 

Insurance Corporation, Washington 25, D. C. Any such papers may be 

sent to the Secretary by mail or express but must be received by the 

Secretary in the office of the Corporation in Washington, D. C., or postmarked by a post office, within the time limit for such filing.

§ 308.14 Service; proof of service. All documents or papers required 

by this part to be served on the bank, or on counsel for the Corporation, 

shall be served by the Secretary or other designated officer of the Board

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of Directors. Such service, except on counsel for the Corporation, shall 

be made by personal service on, or by registered mail addressed to the 

last known address of, the attorney or representative of record of any 

party. If there is no attorney or representative of record, such service 

shall be made upon the bank.

§ 308.15 Copies. Unless otherwise specifically provided in the 

notice of hearing, an original and 7 copies of all documents and papers 

required or permitted to be filed or served under this part, except the 

transcript of testimony and exhibits, shall be furnished to the Secretary.

§ 308.16 Computing time. In computing any period of time prescribed or allowed by this part or by order of the Board of Directors, 

the day of the act, event, or default after which the designated period 

of time begins to run is not to be included. The last day of the period 

so computed is to be included, unless it is a Saturday, Sunday, or a 

legal holiday in the District of Columbia, in which event the period 

runs until the end of the next day which is neither a Saturday, Sunday 

nor a legal holiday. Intermediate Saturdays, Sundays and holidays 

shall be included in the computation. A half-holiday shall be considered 

as other days and not as a holiday.

§ 308.17 Documents in proceedings confidential. Unless and until 

otherwise ordered by the Board of Directors, the notice of hearing, the 

transcript, the recommended decision of the trial examiner, exceptions 

thereto, proposed findings or conclusions, and briefs in support of such 

proposals or in support of or in opposition to such exceptions, the findings 

and conclusions of the Board of Directors and other papers which are 

filed in connection with any hearing shall not be made public, and shall 

be for the confidential use only of the Board of Directors, the bank and 

appropriate supervising authorities.

§ 308.18 Formal requirements as to papers filed— (a) Form. All 

papers filed under this part shall be typewritten, mimeographed, or 

printed.

(b) Signature. All papers must be signed by an officer of the bank 

filing the same, or its duly authorized agent or attorney, or counsel for 

the Corporation, and, except in the case of counsel for the Corporation, 

must show the address of the signer.

(c) Caption. All papers filed must include at the head thereof, or 

on a title page, the name of the Corporation, the name of the bank, 

and the subject of the particular paper.

§ 308.19 Termination of insured status of banking institution not

engaged in the business of receiving deposits other than trust funds. Whenever the Board of Directors shall have evidence indicating that an insured 

banking institution is not engaged in the business of receiving deposits, 

other than trust funds, it will give notice in writing to the banking 

institution of such fact, and will direct the banking institution to show 

cause why the insured status of the banking institution should not be

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terminated under the provisions of section 8 (c) of the Federal Deposit 

Insurance Act. The banking institution shall have thirty days, or such 

greater period of time as the Board of Directors shall prescribe, after 

receipt of such notice to submit affidavits or other written proof that it 

is engaged in the business of receiving deposits, other than trust funds. 

The Board of Directors, may in its discretion, upon written request of 

the banking institution, authorize a hearing before it or any person 

designated by it. If upon consideration of the evidence, the Board of 

Directors determines that the banking institution is not engaged in the 

business of receiving deposits, other than trust funds, the Corporation 

shall notify the banking institution that its insured status will terminate 

at the expiration of the first full semiannual assessment period following 

such notice. Within thirty days prior to the date of the termination of 

the insured status of a banking institution under section 8 (c) of the 

Federal Deposit Insurance Act, the banking institution shall publish 

a notice of such termination in not less than two issues of a local newspaper 

of general circulation and shall furnish the Corporation with proof of 

publication. The notice shall be as follows:

(Date)

Notice:

Please be advised that the status of the...................................................................

(Name of banking institution)

(City or town) (State)

as an insured bank under the Federal Deposit Insurance Act, will terminate on the

..................... day of............................................. 19........... and its deposits shall

thereupon cease to be insured.

(Name of banking institution)

(Address)

There may be included in such notice any additional information or 

advice the banking institution may deem desirable.

Par t 309—C o n fidential I nform ation

Sec.

309.1 Unpublished information.

309.2 Opinions and orders.

A u t h o r it y : §§ 309.1 and 309.2 issued under sec. 9, Pub. Law 797, 

81st Cong. Interpret or apply sec. 10, Pub. Law 797, 81st Cong.

§ 309.1 Unpublished information— (a) Confidential information and

records. All files, documents, reports, books, accounts, and records 

(collectively referred to as “records” in this section) pertaining to insured 

banks, or the internal operations and affairs of the Corporation, in the

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possession or under the control of the Corporation or any officer, agent, 

or employee thereof, and all facts or information contained in such records 

or acquired by said officers, agents, or employees in the performance of 

their official duties (collectively referred to as “information” in this 

section) are confidential, unless prepared for public distribution by order 

of the Board of Directors of the Corporation or its Chairman.

(b) Certain records and information also privileged. Records and 

information pertaining to (1) examinations or investigations of insured 

banks, (2) applications and reports to the Corporation by any bank 

(exclusive of applications for loans or purchases of assets under section 

13 (c) and (e) of the Federal Deposit Insurance Act), (3) proceedings 

for the termination of the insured status of any bank, or (4) the internal 

operations of the Corporation, are conditionally privileged as well as 

confidential, and are sometimes referred to as “ privileged” in this section.

(c) Disclosure prohibited. Officers, agents, and employees of the 

Corporation are prohibited from allowing any person to inspect, examine, or copy any of said confidential or privileged records, or furnishing 

copies thereof, or from disclosing any such confidential or privileged 

information, except as hereinafter provided:

(1) The Chief of any Division having custody thereof, in his discretion, 

may release or furnish any record or information, not privileged, to any 

governmental agency, State or Federal, for use in the exercise of its 

official duties; and to any other person upon a verified written application, which shall show that the applicant has a substantial interest 

therein and the purpose for which it is to be used: Provided, That such 

disclosure, in the opinion of the Division Chief, will not be prejudicial 

to the Corporation or the public interest.

(2) The Chief of the Division of Examination may furnish to an insured nonmember bank copies of any reports of examination of such 

bank (except the section designated “ confidential” ) and other information pertaining to its affairs: Provided, That copies of such reports of 

examination and other information so furnished to an insured nonmember bank shall remain the property of the Corporation and under 

no circumstances shall the bank or any of its directors, officials, or 

employees disclose or make public in any manner such reports or any 

portion thereof or other information so furnished.

(3) The Chief of the Division of Examination may furnish to the 

Comptroller of the Currency, to any Federal Reserve bank, and to any 

commission, board, or authority having supervision of a State nonmember bank, and to the Reconstruction Finance Corporation, if it 

owns or holds as pledgee, or has under consideration an application 

for the purchase of, any preferred stock, capital notes, or debentures in 

such bank, copies of reports of examination made on behalf of the Corporation and other information pertaining to insured nonmember banks 

for use in the exercise of their official duties: Provided, That such reports

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of examination and other information so furnished to such officials or 

agency shall remain the property of the Corporation and under no 

circumstances shall any such official or agency disclose or make public 

in any manner such reports or any portion thereof or other information 

so furnished.

(4) The Chief of the Division of Examination may furnish to any 

official of the Department of Justice any information regarding defalcations, burglaries, or robberies affecting insured banks, when, in his 

opinion, there is urgent need for immediate action to be taken by such 

Department in the investigation thereof or the apprehension or prosecution of persons responsible therefor.

(5) The Chief of the Division of Research and Statistics may furnish 

to the Comptroller of the Currency, to any Federal Reserve bank, and 

to any commission, board, or authority having supervision of a State 

nonmember bank copies of reports of condition made by insured banks 

to the Corporation, including statements of assets, liabilities, and capital 

accounts, and of earnings, expenses, and distribution of profits, for use 

in the exercise of their official duties: Provided, That under no circumstances shall such State or Federal officials make public the contents of 

such reports or any portion thereof, except in the publication of general 

statistical reports.

(6) The General Counsel of the Corporation may disclose to the proper 

Federal prosecuting authorities any and all records and information 

relating to irregularities discovered in open and closed insured banks 

believed to constitute violations of the Federal criminal statutes. The 

General Counsel may authorize the production of any record, the disclosure of any information, and the giving of any testimony with respect 

thereto, by any officer or employee of the Corporation, upon any proceeding, hearing, or trial, civil or criminal, in any State or Federal court 

or before any administrative board, commission, or committee. Such 

authorization may be given only in response to a subpena or other 

process duly issued and served upon the Corporation at its principal 

office, which service may be by registered mail addressed to the Corporation at Washington, D. C., specifying the record requested, the 

nature and scope of the testimony to be elicited, the name of the witness 

and the place and time of appearance: Provided, That the General 

Counsel, in his discretion, may waive the requirement of service of subpena or process when he believes it to be in the interest of justice to do 

so. Without such prior authorization, any officer or employee required 

to respond to a subpena or other legal process shall attend at the time 

and place therein mentioned and respectfully decline to produce any 

record or disclose any information or give any testimony with respect 

thereto, basing his refusal upon this rule: Provided, That this prohibition 

shall not apply to information which may be disclosed pursuant to and 

in accordance with the provisions of subsection (b), section 22 of the

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Federal Reserve Act as amended by section 326 of the Banking Act 

of 1935 (sec. 22, 38 Stat. 272, as amended; 12 U. S. C. 594) and, Provided

further, That when such requested records or information are privileged, 

the General Counsel shall not authorize their production or disclosure 

in any of the suits or proceedings hereinbefore mentioned, or otherwise, 

except where the production of such evidence is requested in behalf of 

the Corporation, the United States, or the person from whom such 

privileged documents and information were obtained,

(d) Application for disclosure. Applications for disclosure of information or records hereunder should be addressed to the appropriate 

Division Chief or the General Counsel of the Corporation, as the case 

may be.

(e) Service of process on officer, agent, or employee. Any officer, agent, 

or employee of the Corporation served with a subpena, order, or other 

process requiring his personal attendance as a witness or the production 

of records or information upon any proceeding mentioned in paragraph

(c) (6) of this section shall promptly advise (1) the court or tribunal 

which issued the process, and the attorney for the party at whose instance the process was issued, if known, of the substance of this rule, 

and (2) the General Counsel of the Corporation at Washington, D. C., 

of such service and of the records and information requested and any 

facts which may be of assistance to the General Counsel in determining 

whether such records and information should be made available.

(f) Authority of Chairman of Board of Directors. Notwithstanding 

any of the foregoing provisions, the Chairman of the Board of Directors, 

in his discretion and pursuant to law, may authorize the production, 

examination, or inspection of any records, or the furnishing of copies 

thereof, or the disclosure of any information, or may direct the General 

Counsel or the Chief of any Division to refuse to permit the production, 

examination, or inspection of any records, or the furnishing of copies 

thereof, or the disclosure of any information, when in his opinion such 

action is consistent with the public interest.

§ 309.2 Opinions and orders. A survey and review of the opinions 

and orders heretofore made by the Board of Directors of the Corporation 

in the adjudication of cases, in connection with licensing, supervision, 

investigation, termination of insured status, payment of insured deposits, 

and the administration of liquidations and receiverships, disclose that 

their publication would not be of current interest or importance, they 

are not cited as precedents, and are required for good cause to be held 

confidential. Accordingly, they will not be published nor made available 

to public inspection.

The Board of Directors will, however, either publish, or, in accordance 

with published rule, make available for public inspection, final opinions 

and orders in the adjudication of cases which are cited as precedents and 

which are not required for good cause to be held confidential.

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Subchapter B—Regulations and Statements

of General Policy

Part 325—I ntroductory an d A u thority

§ 325.0 Scope. The regulations and statements of general policy 

contained in this subchapter are promulgated pursuant to the provisions 

of the Federal Deposit Insurance Act and are published pursuant to 

the Administrative Procedure Act (60 Stat. 237), and other applicable 

laws, and, in accordance with the provisions of section 3 (a) (3) of the 

Administrative Procedure Act, contain rules adopted as authorized by 

law and statements of general policy or interpretations formulated and 

adopted by the Corporation for the guidance of the public.

(Sec. 9, Pub. Law 797, 81st Cong.)

Part 326—B a n k O bligations P rescribed a s D eposits

Sec.

326.1 Deposits,

326.2 Money or its equivalent.

A u t h o r it y : §§ 326.1 and 326.2 issued under sec. 9, Pub. Law 797, 

81st Cong. Interpret or apply sec. 3, Pub. Law 797, 81st Cong.

§ 326.1 Deposits. The term “ deposit” as used in section 3 (1) of 

the Federal Deposit Insurance Act, shall include the following obligations:

(a) Outstanding drafts, cashier's checks and other officer's checks. 

Outstanding drafts,1 cashier’s checks, and other officer’s checks issued 

under any of the following circumstances:

(1) For money or its equivalent received by the issuing bank; or

(2) For a charge against a deposit account in the issuing bank; or

(3) In settlement of checks, drafts, or other instruments forwarded 

to the issuing bank for collection.

(b) Certified checks. Checks drawn against a deposit account and 

certified by the drawee bank.

(c) Traveler's checks and letters of credit. Outstanding traveler’s 

checks or letters of credit on which the bank is primarily liable issued 

under either of the following circumstances:

(1) For money or its equivalent received by the issuing bank; or

(2) For a charge against a deposit account in the issuing bank.

(d) Special purpose funds. Money received or held by the bank, 

or the credit given therefor to an account including a special or memorandum account, which money or credit is held for a special or specific

i Drafts drawn on foreign correspondents or foreign branches and payable only in foreign countries 

are not included in the term “ deposit.’*

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190 FEDERAL DEPOSIT INSURANCE CORPORATION

purpose, regardless of whether the relationship thereby created is that 

of debtor-creditor, fiduciary, or any other relationship.1

§ 326.2 Money or its equivalent. Under paragraphs (a) and (c) of 

§ 326.1 drafts, cashier’s checks and other officer’s checks, traveler’s 

checks and letters of credit must be regarded as issued for the equivalent 

of money when issued in exchange for checks or drafts or for promissory 

notes upon which the person procuring any of the enumerated instruments is primarily or secondarily liable.

Par t 327—A ssessm ents

Sec.

327.1 Classes of uncollected items eligible for deduction.

327.2 Periods of deduction for uncollected items.

327.3 Payment of assessments by banks whose insured status has

terminated.

327.4 Time of payment.

A u t h o r it y : §§ 327.1 to 327.4 issued under sec. 9, Pub. Law 797, 

81st Cong. Interpret or apply secs. 7, 8, Pub. Law 797, 81st Cong.

§ 327.1 Cash items— (a) Definition. The term “ cash item,” as 

used in section 7 of the Federal Deposit Insurance Act and in this part, 

means any instrument providing for the payment of money which the 

reporting bank has received in the regular course of business pursuant 

to an agreement under which the bank has given credit to a deposit 

account, and checks and bank drafts received and paid by it in the 

regular course of business: Provided, That the instrument, check or 

draft is in the process of collection and is payable on presentation: And, 

provided further, That the payor or drawee of the instrument, check or 

draft, is a bank or person other than the reporting bank or a branch 

office or main office of the reporting bank other than the office where 

the item is received. The term “reporting bank” as used in this part 

means the bank filing the certified statement for assessment purposes. 

For the purposes of this paragraph a check or bank draft is deemed 

paid by the reporting bank if the bank has given cash or other consideration therefor.

(b) Cash items eligible for deduction. In computing the assessment 

base, only cash items, as defined in this section, may be deducted. Such 

cash items may be deducted without regard to whether withdrawal has 

been made against the credit given to deposit accounts therefor. No

* Special purpose funds, defined in § 326.1 (d), include, among others and without limitation to 

those mentioned here, escrow funds, funds held as collateral security for an obligation due the bank or 

others, withheld taxes, funds held for distribution or for purchase of securities or currency, or funds 

held by the bank to meet its acceptances or letters of credit. The Corporation has consistently interpreted 

the term “ deposit", as defined in the Federal Deposit Insurance Act since 1935, to include special purpose 

funds as defined in § 326.1 (d). These special purpose funds are also deposits by general usage. This 

clarification is made with the realization that some or all of the funds defined as special purpose funds 

in 5 326.1 (d) may be within the term “ deposit” as defined in the Federal Deposit Insurance Act since 

1935.

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cash item shall be deducted except in accordance with the provisions of 

this part and unless such records are maintained as will readily permit 

verification of the correctness thereof.

§ 327.2 Period of deduction for uncollected cash items— (a) Choice

of method. An insured bank may, at its option, use either of the two 

following methods in computing its deductible cash items, namely:

(1) by multiplying by 2 the total of the cash items forwarded for collection on the assessment base days which were received on said days 

and the cash items held for clearings at the close of business on said 

days which were received on said days, or (2) by deducting the total 

of cash items forwarded for collection on the assessment base days and 

cash items held for clearings at the close of business on said days plus 

uncollected cash items paid or credited on preceding days: Provided, 

The method selected must be followed for the entire assessment period. 

If the second alternative method is used, the maximum periods of deduction shall be as prescribed in the following paragraphs (b) and (c), 

and no cash item may be considered as uncollected for any period in 

excess of said maximum. No cash item shall be deducted after the bank 

has had advice that the item has been paid or dishonored.

(b) Cash items paid or credited to deposit accounts in bank or branch

located in any Federal Reserve district. In the case of any insured bank 

or branch located in any Federal Reserve district, cash items forwarded 

for collection and cash items held for clearings at the close of business 

on the base day shall be eligible for deduction for that day. Any cash 

item forwarded for collection on preceding days which remains uncollected as of the close of business on the assessment base day shall be 

eligible for deduction for the base day: Provided, That an item shall not 

be considered as uncollected at the close of business on the base day if 

such item has been outstanding for a period in excess of the time necessary 

to send the item in due course to the Federal Reserve bank of the Federal 

Reserve district or the branch of the subdistrict thereof in which the 

reporting bank is located, plus the time allowed for collection from the 

place where the item is payable, as shown on the current Time Schedule 

of such Federal Reserve bank or branch thereof.

(c) Cash items paid or credited to deposit accounts in bank or branch

located outside of any Federal Reserve district. In the case of any insured 

bank or branch located outside any Federal Reserve district, cash items 

forwarded for collection and cash items held for clearings at the close of 

business on the base day shall be eligible for deduction for that day. 

Any cash item forwarded for collection on preceding days which remains 

uncollected at the close of business on the assessment base day shall be 

eligible for deduction for the base day: Provided, That an item shall 

not be considered as uncollected at the close of business on the base day 

if such item has been outstanding for a period in excess of the time from 

the date the cash item is paid or credited to a deposit account and the

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date of receipt (in the usual course of business) by the correspondent 

bank to which the item is forwarded for collection plus (1) the collection 

time allowed by the Federal Reserve time schedule for the district in 

which the correspondent bank is located or (2) the actual collection time, 

where the collection time is not included in the Federal Reserve time 

schedule.

(d) Construction of section. This section is not to be construed as 

requiring any bank to clear items through any Federal Reserve bank 

or branch thereof.

§ 327.3 Payment of assessments by banks whose insured status has

terminated— (a) Assumed deposits of terminating bank become deposits of

assuming bank. The deposit liabilities of an insured bank, if assumed 

by another insured bank, will, except to the extent that depositors of 

the first bank by affirmative action signify their express intention to 

hold the first bank liable as a debtor, be presumed for assessment purposes to cease being deposit liabilities of the first bank on the date the 

assumption becomes effective: Provided, That the requisite notice of 

assumption be given to the depositors of the terminating bank.1 The 

assumed deposits, for assessment purposes, are deposit liabilities of the 

assuming bank from the date of assumption, whether or not the requisite 

notice of assumption has been given to the depositors.

(b) Payment of assessments by assuming bank on assumed deposits of

terminating bank. Where the deposit liabilities of an insured bank are 

assumed by another insured bank and the assuming bank agrees to file 

the certified statement which the terminating bank is required to file, 

the filing of such certified statement and the payment of the assessment 

thereon by the assuming bank shall be deemed the acts of the terminating 

bank: Provided, That the requisite notice of assumption1 be given to the 

depositors of the terminating bank and, Provided further, That such 

certified statement shall be filed separately from that required to be 

filed by the assuming bank.

(c) Resumption of insured status before insurance of deposits ceases.

If a bank whose insured status has been terminated under section 8 (a) 

or (b) of the Federal Deposit Insurance Act, makes application to the 

Corporation, before the insurance of its deposits shall have ceased, to 

be permitted to continue or to resume its status as an insured bank and 

if the Board of Directors grant the application, the bank will be deemed, 

for assessment purposes, to continue as an insured bank and must thereafter furnish certified statements and pay assessments as though its 

insured status had not been terminated. For the procedure to be followed 

in making such application, see § 303.7 of this chapter.

i The requisite notice of assumption shall be the notice prescribed in § 307.3 of this chapter.

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§ 327.4 Time of 'payment. Each insured bank shall pay to the Corporation the amount of the semiannual assessment due to the Corporation, 

as shown on its certified statement,2 at the time such statement is required to be filed under Section 7 (b) of the Federal Deposit Insurance 

Act.

P a r t 328—A d v e r t is e m e n t o f M e m b e r s h ip

Sec.

328.0 Scope.

328.1 Mandatory requirements with regard to the official sign and its

display.

328.2 Mandatory requirements with regard to the official advertising

statement and manner of use.

328.3 Approved emblem and approved short title which insured banks

may use at their option.

A u t h o r i t y : §§ 328.fr to 328.3 issued under sec. 9, Pub. Law 797, 

81st Cong. Interpret or apply sec. 18, Pub. Law 797, 81st Cong.

§ 328.0 Scope. The regulation contained in this part prescribes 

the requirements with regard to the official sign insured banks must 

display and the requirements with regard to the official advertising 

statement insured banks must include in their advertisements. It also 

prescribes an approved emblem and an approved short title which 

insured banks may use at their option. It imposes no limitations on other 

proper advertising of insurance of deposits by insured banks and does 

not apply to advertisements published in foreign countries by insured 

banks which maintain offices in such foreign countries in which offices 

the deposits are not insured.

§ 328.1 Mandatory requirements with regard to the official sign and

its display— (a) Insured banks to display official sign. Each insured 

bank shall continuously display an official sign as hereinafter prescribed 

at each station or window where insured deposits are usually and normally received in its principal place of business and in all its branches: 

Providedj That no bank becoming an insured bank shall be required to 

display such official sign until twenty-one (21) days after its first day 

of operation as an insured bank. The official sign may be displayed by 

any insured bank prior to the date display is required.

(b) Official sign. The official sign referred to in paragraph (a) of

sSee § § 304.1 and 304.3 of this chapter

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this section shall be seven inches by three inches in size, and shall be of 

the following design:

The Federal Deposit Insurance Corporation

WASHINGTON, D. C.

$10,000 FOR'e a c h 'd e p o s it o r $10,000

Any insured bank may procure official signs from the Corporation or 

may use any other sign of the same size, wording and appearance which 

shall have been approved in writing by the Corporation as conforming 

to the requirements of this section. Such approval will be given only 

in individual cases where the official sign does not harmonize with the 

bank’s counters or fixtures or where it cannot be adequately displayed 

because of the type of construction of the bank’s counters or fixtures. 

For the procedure to be followed in applying for such approval see 

§ 303.8 of this chapter.

The Corporation shall furnish to banks an order blank for use in 

procuring the official signs. Any bank which promptly, after receipt of 

the order blank, fills it in, executes it, and properly directs and forwards 

it to the Federal Deposit Insurance Corporation, Washington 25, D. C., 

shall not be deemed to have violated this regulation on account of not 

displaying an official sign, or signs, unless the bank shall omit to display 

such official sign or signs after same have been tendered to the bank 

through the instrumentality of the United States mail or otherwise.

(c) Receipt of deposits at same teller’s station or window as noninsured

bank. An insured bank is forbidden to receive deposits at any teller’s 

station or window where any noninsured bank receives deposits.

(d) Required changes in official sign. The Corporation may require 

any insured bank, upon at least thirty days written notice, to change 

the wording of its official signs in a manner deemed necessary for the 

protection of depositors or others.

§ 328.2 Mandatory requirements with regard to the official advertising

statement and manner of use.— (a) Insured banks to include official advertising statement in all advertisements except as provided in paragraph (c) 

of this section. Each insured bank shall include the official advertising 

statement, prescribed in paragraph (b) of this section, in all of its advertisements except as provided in paragraph (c) of this section.

An insured bank is not required to include the official advertising

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statement in its advertisements until thirty (30) days after its first day 

of operation as an insured bank.

In cases where the Board of Directors of the Federal Deposit Insurance 

Corporation shall find the application to be meritorious, that there has 

been no neglect or wilful violation in the observance of this section and 

that undue hardship will result by reason of its requirements, the Board 

of Directors may grant a temporary exemption from its provisions to a 

particular bank upon its written application setting forth the facts. 

For the procedure to be followed in making such application see § 303.8 

of this chapter.

In cases where advertising copy not including the official advertising 

statement is on hand on the date the requirements of this section become 

operative, the insured bank may cause the official advertising statement 

to be included by use of a rubber stamp or otherwise.

(b) Official advertising statement. The official advertising statement 

shall be in substance as follows: “ Member of the Federal Deposit Insurance Corporation.” The word “the” or the words “ of the” may be 

omitted. The words “ This bank is a” or the words “ This institution is 

a” or the name of the insured bank followed by the words “is a” may be 

added before the word “ member” .

(c) Types of advertisements which do not require the official advertising

statement. The following is an enumeration of the types of advertisements 

which need not include the official advertising statement:

(1) Statements of condition and reports of condition of an insured 

bank which are required to be published by State or Federal law;

(2) Bank supplies such as stationery (except when used for circular 

letters), envelopes, deposit slips, checks, drafts, signature cards, deposit 

pass books, certificates of deposit, etc.;

(3) Signs or plates in the banking offices or attached to the building 

or buildings in which the banking offices are located;

(4) Listings in directories;

(5) Advertisements not setting forth the name of the insured bank;

(6) Display advertisements in bank directory, provided the name of 

the bank is listed on any page in the directory with a symbol or other 

descriptive matter indicating it is a member of the Federal Deposit 

Insurance Corporation;

(7) Joint or group advertisements of banking services where the names 

of insured banks and noninsured banks or institutions are listed and form 

a part of such advertisements;

(8) Advertisements by radio which do not exceed thirty (30) seconds 

in time;

(9) Advertisements by television, other than display advertisements, 

which do not exceed thirty (30) seconds in time;

(10) Advertisements which are of the type or character making it 

impractical to include therein the official advertising statement, provided

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such exclusion may only be made upon the prior written consent of the 

Corporation.

(11) Advertisements which contain a statement to the effect that the 

bank is a member of the Federal Deposit Insurance Corporation, or 

that the bank is insured by the Federal Deposit Insurance Corporation, 

or that its deposits or depositors are insured by the Federal Deposit 

Insurance Corporation to the maximum of $10,000 for each depositor.

(12) Advertisements relating to the making of loans by the bank or 

loan services;

(13) Advertisements relating to safe keeping box business or services;

(14) Advertisements relating to trust business or trust department

services;

(15) Advertisements relating to real estate business or services;

(16) Advertisements relating to armored car services;

(17) Advertisements relating to service charges or analysis charges;

(18) Advertisements relating to securities business or securities department services;

(19) Advertisements relating to travel department business, including 

traveler’s checks on which the bank issuing or causing to be issued the 

advertisement is not primarily liable;

(20) Advertisements relating to savings bank life insurance.

(d) Outstanding billboard advertisements. Where an insured bank 

has billboard advertisements outstanding which are required to include 

the official advertising statement and has direct control of such advertisements either by possession or under the terms of a contract, it 

shall, as soon as it can consistent with its contractual obligations, cause 

the official advertising statement to be included therein.

(e) Official advertising statement in non-English language. The 

non-English equivalent of the official advertising statement may be 

used in any advertisement: Provided, That the translation has had the 

prior written approval of the Corporation.

§ 328.3 Approved emblem and approved short title which insured

banks may use at their option— (a) Emblem. The only emblem approved 

for use by insured banks, when reference therein is made to deposit 

insurance or membership in the Corporation, is the one reproduced below:

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(b) Short title. The following short title is approved for use by insured 

banks only on signs or plates attached to the outside of the bank building: 

“ MEMBER OF FDIC.”

(c) Use of emblem or short title. If an insured bank desires to use 

the emblem, it may do so in any of its advertisements and on any of its 

bank supplies. Since the approved emblem contains the official advertising statement in the outside circle, its use in advertisements requiring 

the official advertising statement will satisfy the mandatory requirements 

of § 328.2.

Par t 329—Pa y m e n t of D eposits and I nterest T h ereon b y I n sur ed

N onm em ber B an k s

Sec.

329.0 Scope.

329.1 Definitions.

329.2 Demand deposits.

329.3 Maximum rate of interest on time and savings deposits.

329.4 Payment of time deposits before maturity.

329.5 Notice of withdrawal of savings deposits.

329.6 Maximum rates of interest payable on time and savings deposits

by insured nonmember banks.

A u t h o r it y : §§ 329.0 to 329.6 issued under sec. 9, Pub. Law 797, 

81st Cong. Interpret or apply sec. 18, Pub. Law 797, 81st Cong.

§ 329.0 Scope. The regulation contained in this part relates to the 

payment of deposits and interest thereon by insured nonmember banks. 

This part is not applicable to banks which are members of the Federal 

Reserve System. Regulation Q (Part 217 of this title), prescribed by 

the Board of Governors of the Federal Reserve System for banks which 

are members of that System, is not applicable to insured banks which 

are not members of the Federal Reserve System, except to the extent 

that the State law of a particular State provides otherwise. The provisions 

of this part do not apply to mutual savings banks or to any deposit in 

a bank located outside of, or payable only at a bank’s office which is 

located outside of, the States of the United States and the District of 

•Columbia.

§ 329.1 Definitions— (a) Demand deposits. The term “demand 

deposit” includes every deposit which 'is not a “time deposit” or “ savings 

deposit” , as defined below.

(b) Time deposits. The term “ time deposits” means “time certificates 

of deposit” and “time deposits, open account” , as defined below.

(c) Time certificates of deposit. The term “time certificate of deposit” 

means a deposit evidenced by a negotiable or nonnegotiable instrument 

which provides on its face that the amount of such deposit is payable:

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198 FEDERAL DEPOSIT INSURANCE CORPORATION

(1) On a certain date, specified in the instrument, not less than thirty 

(30) days after the date of the deposit; or

(2) At the expiration of a specified period not less than thirty (30) 

days after the date of the instrument; or

(3) Upon written notice to be given not less than thirty (30) days 

before the date of repayment.1

(d) Time depositsj open account. The term “ time deposit, open 

account” means a deposit, other than a “ time certificate of deposit” or 

a “ savings deposit” , with respect to which there is in force a written 

contract with the depositor that neither the whole nor any part of such 

deposit may be withdrawn, by check or otherwise, prior to the date 

of maturity, which shall be not less than thirty (30) days after the date 

of the deposit,2 or prior to the expiration of the period of notice which 

must be given by the depositor in writing not less than thirty (30) days 

in advance of withdrawals.3

(e) Savings deposits. The term “savings deposit” means a deposit 

evidenced by a passbook consisting of funds (1) deposited to the credit 

of one or more individuals or of a corporation, association, or other 

organization operated primarily for religious, philanthropic, charitable, 

educational, fraternal, or other similar purposes and not operated for 

profit,4 or (2) in which the entire beneficial interest is held by one or 

more individuals or by such a corporation, association, or other organization and in respect to which:

(i) The depositor is required, or may at any time be required, by the 

bank to give notice in writing of an intended withdrawal not less than 

thirty (30) days before such withdrawal is made; or the bank consistently 

continues to adhere to a practice existing prior to January 23, 1936, of 

requiring notice of at least fifteen (15) days before permitting withdrawal;

(ii) Withdrawals are permitted in only two ways, either upon presentation of the passbook through payment to the person presenting the passbook, or without presentation of the passbook, through payment to the 

depositor himself but not to any other person, whether or not acting for 

the depositor.5

The provisions of subparagraphs (1) and (2) of this paragraph, limiting 

savings deposits to funds of certain classes of persons, shall not be ap1 If the certificate of deposit provides merely that the bank reserves the right to require notice of 

not less than thirty (30) days before any withdrawal is made, the bank must require such notice before 

permitting withdrawal.

2 Deposits, such as Christmas club accounts and vacation club accounts, which are made under 

written contracts providing that no withdrawal shall be made until a certain number of periodic deposits 

have been made during a period of not less than three (3) months, constitute “ time deposits, open account” , even though some of the deposits are made within thirty (30) days from the end of such period.

* If a deposit be made with respect to which the bank merely reserves the right to require notice 

of not less than thirty (30) days before withdrawal is made, the bank must require such notice to be given 

before permitting withdrawal.

4 Deposits in joint accounts of two or more individuals may be classified as savings deposits if they 

meet the other requirements of the above definition, but deposits of a partnership operated for profit 

may not be so classified. Deposits to the credit of an individual of funds in which any beneficial interest 

is held by a corporation, partnership, association, or other organization operated for profit or not operated 

primarily for religious, philanthropic, charitable, educational, fraternal, or other similar purposes may 

not be classified as savings deposits.

5 Presentation of a passbook may be made over the counter or through the mails; and payment 

may be made over the counter, through the mails or otherwise, subject to the limitations contained 

herein as to the person to whom such payment may be made.

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plicable to deposits received and credited on or before February 1, 1936, 

to accounts evidenced by passbooks in insured nonmember banks and 

these deposits, together with interest subsequently payable on such 

deposits, less any withdrawals from such accounts, may be classed by 

insured nonmember banks as savings deposits under the terms of this 

paragraph, even though such deposits belong to an association, organization, or corporation organized for profit. The said provisions of 

subparagraphs (1) and (2) of this paragraph, however, shall be applicable 

to deposits received subsequently to February 1, 1936, whether or not 

such deposits are credited to an account existing prior to February 1, 

1936.

The presentation by any officer, agent or employee of the bank of a 

passbook or a duplicate thereof retained by the bank or by any of its 

officers, agents or employees is not a presentation of the passbook within 

the meaning of this part except where the passbook is held by the bank 

as a part of an estate of which the bank is a trustee or other fiduciary, 

or where the passbook is held by the bank as security for a loan. If a 

passbook is retained by the bank, it may not be delivered to any person 

other than the depositor for the purpose of enabling such person to present 

the passbook in order to make a withdrawal, although the bank may 

deliver the passbook to a duly authorized agent of the depositor for 

transmittal to the depositor.

Every withdrawal made upon presentation of a passbook shall be 

entered in the passbook at the time of the withdrawal, and every other 

withdrawal shall be entered in the passbook as soon as practicable after 

the withdrawal is made.

§ 329.2 Demand deposits— (a) Interest prohibited. Except as provided in this part, no insured nonmember bank shall directly or indirectly, 

by any device whatsoever, pay any interest on any demand deposit. 

Within this part any payment to or for the account of any depositor as 

compensation for the use of funds constituting a deposit shall be considered interest.6

(b) Exceptions. The prohibition stated in paragraph (a) of this 

section does not apply to:

(1) Payment of interest accruing before August 24, 1937, on any 

deposit made by a “savings bank” 7 as defined in the Federal Deposit 

Insurance Act, or by a mutual savings bank;

6 The absorption of normal or customary exchange charges by an insured nonmember bank, in 

connection with the routine collection for its depositors of checks drawn on other banks, does not constitute the payment of interest within the provisions of this part.

7 Section 3 (g) of the Federal Deposit Insurance Act provides:

“ The term ‘savings bank’ means a bank (other than a mutual savings bank) which transacts its 

ordinary banking business strictly as a savings bank under State laws imposing special requirements 

on such banks governing the manner of investing their funds and of conducting their business: Provided, That the bank maintains, until maturity date or until withdrawn, all deposits made with it (other 

than funds held by it in a fiduciary capacity) as time savings deposits of the specific term type or of the 

type where the right is reserved to the bank to require written notice before permitting withdrawal: 

Provided further, That such bank to be considered a savings bank must elect to become subject to regulations of the Corporation with respect to the redeposit of maturing deposits and prohibiting withdrawal 

of deposits by checking except in cases where such withdrawal was permitted by law on August 23, 1935 

from specifically designated deposit accounts totaling not more than 15 per centum of the bank’s total 

deposits.”

RULES AND REGULATIONS OF THE CORPORATION 199

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(2) Payment of interest accruing before August 24, 1937, on any 

deposit of public funds8 made by or on behalf of any State, county, 

school district, or other subdivision or municipality, or on any deposit 

of trust funds, if the payment of interest with respect to such deposit 

of public funds or of trust funds is required by State law when such 

deposits are made in State banks;

(3) Payment of interest in accordance with the terms of any certificate 

of deposit or other contract which was lawfully entered into in good 

faith before February 1, 1936 (or, if the bank became an insured nonmember bank thereafter, before the date upon which it became an insured 

nonmember bank), which was in force on such date, and which may not 

legally be terminated or modified by such bank at its option and without 

liability; but no such certificate of deposit or other contract may be 

renewed or extended unless it be modified to eliminate any provision 

for the payment of interest on demand deposits, and every insured nonmember bank shall take such action as may be necessary, as soon as 

possible consistently with its contractual obligations, to eliminate from 

any such certificate of deposit or other contract any provision for the 

payment of interest on demand deposits.

(c) Deposits in savings banks. Deposits in “savings banks” 9 in 

specifically designated deposit accounts with respect to which withdrawal by checking is permitted in accordance with section 3 (g) of the 

Federal Deposit Insurance Act, shall, for the purposes of this part, be 

classed as demand deposits.

§ 329.3 Maximum rate of interest on time and savings deposits— (a) 

Maximum rate prescribed from time to time. Except in accordance with 

the provisions of this part, no insured nonmember bank shall pay interest 

on any time deposit or savings deposit in any manner, directly or indirectly, or by any method, practice, or device whatsoever. No insured 

nonmember bank shall 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; and any rate or rates which may be so prescribed by 

the Board will be set forth in supplements to this part (see § 329.6), 

which will be issued in advance of the date upon which such rate or 

rates become effective.

(b) Modification of contracts to conform to regulation. No certificate 

of deposit or other contract shall be renewed or extended unless it be 

modified to conform to the provisions of this part, and every insured 

nonmember bank shall take such action as may be necessary, as soon as 

possible consistently with its contractual obligations, to bring all of its 

outstanding certificates of deposit or other contracts into conformity 

with the provisions of this part.

8 Deposits of moneys paid into State courts by private parties pending the outcome of litigation 

are not deposits of “ public funds” , within the meaning of the above provision.

4 See footnote 7.

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RULES AND REGULATIONS OF THE CORPORATION 201

(c) Savings deposits received during the first 5 days of month. An 

insured nonmember bank may pay interest on a savings deposit received 

during the first 5 days of any calendar month at the applicable maximum 

rate prescribed pursuant to the provisions of paragraph (a) of this section, 

calculated from the first day of such calendar month until such deposit 

is withdrawn or ceases to constitute a savings deposit under the provisions of this part, whichever shall first occur.

(d) Continuance of time deposit status. A deposit which was a time 

deposit at the date of deposit continues to be such until maturity, although it has become payable within thirty (30) days, and interest at a 

rate not exceeding that prescribed pursuant to the provisions of paragraph (a) of this section may be paid until maturity upon such deposit. 

A time deposit or a savings deposit, with respect to which notice of 

withdrawal has been given, continues to be such until the expiration 

of the period of such notice, and interest may be paid upon such deposit 

until the expiration of the period of such notice at a rate not exceeding 

that prescribed pursuant to the provisions of paragraph (a) of this 

section. Interest at a rate not exceeding that prescribed pursuant to 

the provisions of paragraph (a) of this section may be paid upon savings 

deposits with respect to which notice of intended withdrawal has not 

actually been required or given. No interest shall be paid by an insured 

nonmember bank on any amount which by the terms of any certificate 

or other contract or agreement, or otherwise, the bank may be required 

to pay within thirty (30) days from the date on which such amount is 

deposited in such bank,10 except as to savings deposits with respect to 

which the bank consistently continues to adhere to a practice existing 

prior to January 23, 1936, of requiring notice of at least fifteen (15) days 

before permitting withdrawal.

(e) No interest after maturity or expiration of notice; exception. No 

interest shall be paid on any time or savings deposit for any period 

subsequent to maturity, whether such deposit matures by its terms on 

a specific date or at the expiration of a notice period pursuant to written 

notice actually given, except if a time certificate is renewed within ten 

(10) days after maturity, the renewal certificate11 may draw interest 

from the maturity date of the matured certificate.

§ 329.4 Payment of time deposits before maturity— (a) Time deposits

payable on a specified date. No insured nonmember bank shall pay any 

time deposit, which is payable on a specified date, before such specified 

date, except as provided in paragraph (d) of this section.

(b) Time deposits payable after a specified period. No insured nonmember bank shall pay any time deposit, which is payable at the ex10 Deposits, such as Christmas club accounts and vacation club accounts, which are made under 

written contracts providing that no withdrawal shall be made until a certain number of periodic deposits 

have been made during a period of not less than three (3) months, constitute “ time deposits, open account” evenjthough some of the deposits are made within thirty (30) days from the end of such period.

11 Where a time certificate is renewed within ten (10) days after maturity, the renewal certificate 

may be dated back to the maturity date of the matured certificate.

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202 FEDERAL DEPOSIT INSURANCE CORPORATION

piration of a specified period, before such period has expired, except as 

provided in paragraph (d) of this section.

(c) Time deposits payable after a specified notice. No insured nonmember bank shall pay any time deposit, with respect to which notice 

is required to be given a specified period before any withdrawal is made, 

until such required notice has been given and the specified period thereafter has expired, except as provided in paragraph (d) of this section.

(d) Loans upon security of time deposits. An insured nonmember 

bank may make a loan to the depositor upon the security of his time 

deposit, provided that the rate of interest on such loan shall be not less 

than 2 percent per annum in excess of the rate of interest on the time 

deposit.

Where a loan to the depositor upon the security of his time deposit 

upon terms satisfactory to the insured nonmember bank and the depositor cannot be arranged, and where the depositor signs a written 

statement to be kept in the files of the bank that he is in need of money 

represented by the time deposit before the maturity thereof, stating 

the definite amount needed, the time deposit may be paid before maturity to the extent required to meet such need, but the depositor shall 

forfeit accrued and unpaid interest for a period of not less than three 

months on the amount withdrawn. When a portion of a time certificate 

of deposit is paid before maturity, the certificate shall be canceled and 

a new certificate shall be issued for the unpaid portion of the deposit, 

with the same terms, rate, date, and maturity as the original deposit.

§ 329.5 Notice of withdrawal of savings deposits— (a) Requirements

regarding notice. An insured nonmember bank shall observe the requirements set forth as follows in requiring notice of intended withdrawal 

of any savings deposit or part thereof or in permitting withdrawal 

without requiring such notice:

(1) If an insured nonmember bank pay any amount or percentage 

of the savings deposits of any depositor without requiring such notice, 

it shall, upon request, and without requiring such notice, pay the same 

amount or percentage of the savings deposits of every other depositor, 

subject to the same notice requirement, except if the bank changes its 

practice in accordance with paragraph (b) of this section.

(2) If an insured nonmember bank requires such notice before the 

payment of any amount or percentage of the savings deposits of any 

depositor, it shall require such notice before the payment of the same 

amount or percentage of the savings deposits of any other depositor, 

subject to the same notice requirement, except if the bank changes its 

practice in accordance with paragraph (b) of this section. Even though 

the bank’s practice is to require notice, an insured nonmember bank is 

not prevented by this part from paying during the next succeeding 

interest period without requiring notice of withdrawal interest on a 

savings deposit which has accrued during the preceding interest period.

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(b) Requirements regarding change of practice. No insured nonmember bank shall change its practice with respect to the requiring or 

not requiring of notice of intended withdrawal of savings deposits, 

except after duly recorded action of its board of directors or of its executive committee properly authorized, and no practice in this respect shall 

be adopted which does not conform to the requirements of paragraphs

(a) (1) and (a) (2) of this section.

(c) Change of practice for purpose of discrimination. No change in 

the practice of an insured nonmember bank with respect to the requiring 

or not requiring of notice of intended withdrawal of savings deposits 

shall be made for the purpose of discriminating in favor of or against 

any particular depositor or depositors.

(d) Requirements applicable although no interest paid. An insured 

nonmember bank shall observe the requirements of this section with 

respect to savings deposits even though no interest be paid on such 

deposits.

(e) Loans upon security of savings deposits. An insured nonmember 

bank may make a loan to any of its depositors upon the security of his 

savings deposits, provided that if the bank’s practice is to require notice 

before permitting withdrawal of any amount or percentage of the savings 

deposits of any depositor, the rate of interest on such loan shall not be 

less than 2 percent per annum in excess of the rate of interest on the 

savings deposit.

§ 329.6 Maximum rates12 of interest payable on time and savings

deposits by insured nonmember banks— (a) Maximum rate of 2Yi percent.

No insured nonmember bank shall pay interest accruing after February 

1, 1936, at a rate in excess of 2J^ percent per annum, compounded 

quarterly,13 regardless of the basis upon which such interest may be 

computed:

(1) On any savings deposit.

(2) On any time deposit having a maturity date 6 months or more 

after the date of deposit or payable upon written notice of 6 months 

or more.

(3) On any postal savings deposit which constitutes a time deposit, 

except that an insured nonmember bank may pay interest on any such 

deposits in accordance with the terms of any certificate of deposit or 

other contract which was entered into before February 1, 1936 (or, if 

the bank becomes an insured nonmember bank thereafter, before the 

date upon which it becomes an insured nonmember bank), which was 

in force on such date and which may not legally be terminated or modified 

by such bank at its option and without liability.

11 The maximum rates of interest payable by insured nonmember banks on time and savings deposits 

as prescribed herein are not applicable to any deposit which is payable only at an insured nonmember 

bank, or at an office of an insured nonmember bank, located outside of the States of the United States 

and the District of Columbia.

19 This limitation is not to be interpreted as preventing the compounding of interest at other than 

quarterly intervals: Provided, That the aggregate amount of such interest so compounded does not 

exceed the aggregate amount of interest at the rate above prescribed when compounded quarterly.

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204 FEDERAL DEPOSIT INSURANCE CORPORATION

(b) Maximum rate of 2 'percent. No insured nonmember bank shall 

pay interest accruing after February 1, 1936, at a rate in excess of 2 

percent per annum, compounded quarterly, regardless of the basis upon 

which such interest may be computed, on any time deposit (except 

postal savings deposits which constitute time deposits) having a maturity date less than 6 months and not less than 90 days after the date 

of deposit or which is originally or becomes payable upon written notice 

of less than 6 months and not less than 90 days, except that an insured 

nonmember bank may pay interest on such deposits in accordance with 

the terms of any certificate of deposit or other contract which was entered 

into before February 1, 1936 (or, if the bank becomes an insured nonmember bank thereafter, before the date upon which it becomes an insured nonmember bank), which was in force on such date and which 

may not legally be terminated or modified by such bank at its option 

and without liability.

(c) Maximum rate of 1 percent. No insured nonmember bank shall 

pay interest accruing after February 1, 1936, at a rate in excess of 1 

percent per annum, compounded quarterly, regardless of the basis upon 

which such interest may be computed, on any time deposit (except 

postal savings deposits which constitute time deposits) having a maturity date less than 90 days after the date of deposit or which is originally 

or becomes payable upon written notice of less than 90 days, except that 

an insured nonmember bank may pay interest on such deposits in accordance with the terms of any certificate of deposit or other contract 

which was entered into before February 1, 1936 (or, if the bank becomes 

an insured nonmember bank thereafter, before the date upon which it 

becomes an insured nonmember bank), which was in force on such date 

and which may not legally be terminated or modified by such bank at its 

option and without liability.

(d) Discontinuance of payments on outstanding certificates of indefinite

maturities. Banks which on January 23, 1936, have outstanding certificates of indefinite maturities representing deposit liabilities drawing 

interest as savings deposits must within 1 year from February 1, 1936, 

discontinue to pay thereon the rate applicable hereunder to savings 

deposits unless meanwhile the same be converted into savings deposits 

as defined in this part.

Par t 330—R ecognition of D eposit Ow n er sh ip

N ot on B a n k R ecords

Sec.

330.1 Deposits evidenced by negotiable instruments.

330.2 Deposit obligations for payment of items forwarded for collection

by bank acting as agent.

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330.3 Deposits of public officers.

330.4 Deposits in custodial accounts.

A u t h o r it y : §§ 330.1 to 330.4 issued under sec. 9, Pub.®Law 797, 

81st Cong. Interpret or apply sec. 12, Pub. Law 797, 81st Cong.

§ 330.1 Deposits evidenced by negotiable instruments. If any insured 

deposit obligation of a bank be evidenced by a negotiable certificate of 

deposit, negotiable draft, negotiable cashier’s or officer’s check, negotiable 

certified check, or negotiable traveler’s check or letter of credit, the 

owner of such deposit obligation will be recognized for all purposes of 

claim for insured deposits to the same extent as if his name and interest 

were disclosed on the records of the bank provided the instrument was 

in fact negotiated to such owner prior to the date of the closing of the 

bank. Affirmative proof of such negotiation must be offered in all cases 

to substantiate the claim.

§ 330.2 Deposit obligations for payment of items forwarded for collection by bank acting as agent. Where a closed bank has become obligated 

for the payment of items forwarded for collection by a bank acting solely 

as agent, the owner of such items will be recognized for all purposes of 

claim for insured deposits to the same extent as if his name and interest 

were disclosed on the records of the bank when such claim for insured 

deposits, if otherwise payable, has been established by the execution and 

delivery of prescribed forms. Such bank forwarding such items for the 

owners thereof will be recognized as agent for such owners for the purpose 

of making an assignment of the rights of such owners against the closed 

insured bank to the Federal Deposit Insurance Corporation and for the 

purpose of receiving payment on behalf of such owners.

§ 330.3 Deposits of public officers. The owner of any portion of a 

deposit appearing on the records of a closed bank under the name of a 

public official, State, county, city, or other political subdivision will be 

recognized for all purposes of claim for insured deposits to the same 

extent as if his name and interest were disclosed on the records of the 

bank: Provided, That the interest of such owner in the deposit is disclosed 

on the records maintained by such public official, State, county, city, or 

other political subdivision and, Provided further, That such records have 

been maintained in good faith and in the regular course of business.

§ 330.4 Deposits in custodial accounts. The owner of any portion 

of a deposit appearing on the records of a closed bank under a name other 

than that of the claimant, whose name or interest as such owner is not 

disclosed on the records of the closed bank as part owner of said deposit, 

will be recognized for all purposes of claim for insured deposits to the 

same extent as if his name and interest were disclosed on the records of 

the bank: Provided, That the deposit is maintained in a specifically 

designated deposit account or accounts in such a manner as to disclose 

the custodial nature thereof and, Provided further, That the name and 

interest of such owner in the deposit is disclosed on the records of the

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person in whose name the deposit is maintained and such records have 

been maintained in good faith and in the regular course of business.

Part 331—I n surance of T rust F unds

§ 331.1 Claim by fiduciary bank for insured deposits of trust estates.

In the event of the closing of an insured bank for inability to meet the 

demands of its depositors, the claim for insured deposits made by a 

fiduciary bank or trust company which, in the exercise of its trust powers, 

had deposited trust funds therein will be determined as follows:

(a) Allocated funds of a trust estate. If trust funds of a particular 

trust estate are allocated by the fiduciary and deposited, the deposit 

with respect to such estate will be determined by ascertaining the amount 

of its funds allocated, deposited and remaining to the credit of the 

claimant as fiduciary in the closed insured bank.

(b) Interest of a trust estate in unallocated trust funds. If trust funds 

of a particular trust estate be mingled1 with trust funds of other trust 

estates and deposited by the fiduciary bank or trust company in one 

or more insured banks to the credit of the depositing bank or trust 

company as fiduciary, without allocation of specific amounts from the 

particular trust estate to an account in such bank or banks, the deposit 

with respect to such estate in any closed insured bank will be the amount 

which will bear the same ratio to all unallocated funds of the estate for 

which the fiduciary is accountable as the entire unallocated trust funds 

to the credit of the fiduciary bank or trust company in the closed insured 

bank will bear to the entire amount of such funds so deposited by the 

fiduciary in all depositories.2

(c) Claims for funds of corporate trusts determined on basis of allocation.

The rule stated in paragraph (b) of this section will not be applied to 

funds of a bank or trust company held as fiduciary under a type of trust 

created to facilitate the issuance, distribution, or servicing of corporate 

bonds, debentures, or stock issues, commonly known as corporate trusts. 

The claim of the fiduciary bank with respect to deposits of such funds 

will be determined according to allocations of the funds of particular 

estates to particular deposit accounts.

(d) Insured deposit of a trust estate. In arriving at the total insured 

deposit of a fiduciary bank or trust company with respect to any trust 

estate, the deposit of such estate as determined in accordance with any 

paragraph of this section shall be combined with that determined under 

any other subsection of this section and the insured deposit shall be 

the total less any amount thereof in excess of $10,000.

(Sec. 9, Pub. Law 797, 81st Cong. Interprets or applies secs. 3, 7, 12, Pub. Law 797, 

81st Cong.).

i This section is not to be construed as an express or implied approval of such commingling of trust 

funds as may be involved in the maintaining of general trust accounts.

a In determining claims under this paragraph, unallocated trust funds in the fiduciary bank will 

be included in the totals of such funds.

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Par t 332—P o w ers I nconsistent W ith P urposes of F eder al D eposit

I nsur ance La w

Sec.

332.1 Inconsistent powers.

332.2 Exercise prohibited.

A u t h o r it y : §§ 332.1 and 332.2 issued under sec. 9, Pub. Law 797, 

81st Cong. Interpret or apply sec. 6, Pub. Law 797, 81st Cong.

§ 332.1 Inconsistent powers. A State nonmember insured bank 

(except a District bank) which does not have any of the powers hereinafter enumerated, or which, although it has any such power, does not 

exercise the same, shall not hereafter exercise, take, or assume the power: 

(a) to do a surety business; (b) to insure the fidelity of others; (c) to 

engage in insuring, guaranteeing or certifying titles to real estate; or

(d) to guarantee or become surety upon the obligations of others.1

§ 332.2 Exercise prohibited. After the effective date of this part, 

any State nonmember bank (except a District bank) becoming an insured 

bank shall not thereafter exercise any of the powers enumerated in § 332.1.

Part 333—E x t e n sio n of C orporate P o w ers

REGULATIONS

Sec.

333.1 Classification of general character of business.

333.2 Change in general character of business.

interpretations

333.101 Prior consent not required.

A u t h o r it y : §§ 333.1 to 333.101 issued under sec. 9, Pub. Law 797, 

81st Cong. Interpret or apply sec. 6, Pub. Law 797, 81st Cong.

regulations

§ 333.1 Classification of general character of business. State nonmember insured banks are divided into five categories for the purpose 

of classifying their general character or type of business,2 viz: commercial 

banks, banks and trust companies, savings banks (including mutual 

and stock), industrial banks, and cash depositories.

§ 333.2 Change in general character of business. No State nonmember insured bank (except a District bank) or branch thereof shall 

hereafter cause or permit any change to be made in the general character 

or type of business exercised by it after the effective date of this part 

without the prior written consent of the Corporation.

1 The limitations prescribed in paragraph (d) do not include acceptances or endorsements made in

the usual course of the banking business.

« A bank's business may include two or more of the general classifications.

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208 FEDERAL DEPOSIT INSURANCE CORPORATION

INTERPRETATIONS

§ 333.101 Prior consent not required. The extension by any State 

nonmember insured bank of its business to include personal, character 

or installment loans, or the extension by an industrial bank of its business 

to include those of a commercial bank, is not a change in the general 

character or type of business requiring the prior written consent of the 

Corporation.

F ederal D eposit I n surance

C orporation,

[seal] E. F. D o w n e y ,

Secretary,

F. R. Doc. 50-11160; Filed, Dec. 5, 1950; 8:57 a. m.]

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In 1950 the legislatures of thirteen States held regular sessions and five of these legislatures held special sessions. The legislatures of thirteen other States held special 

sessions.

This summary includes the more important State banking legislation enacted in 1950.

SUPERVISORY AUTHORITY

Appointment of Bank Commissioner...................................Connecticut (H.B. 47xxxx)

Report of violations and shortages to Commissioner of Banks and District Attorney

............................................................................................... Massachussetts (Ch. 368)

Examination report furnished bank only for its use and may not be shown to others

without consent of Commissioner of Banks.......................Massachusetts (Ch. 428)

Governor’s authority to protect depositors and maintain banking structure in

emergency...............................................................................Massachusetts (Ch. 639)

Microfilming and destruction of records.......................................New Jersey (Ch. 195)

o r g a n iz a t io n a n d c h a r t e r c h a n g e s 

Holders of two-thirds instead of three-fourths of stock to consent to dissolutions

........................................................................................................New Jersey (Ch. 33)

Application for charter to have affidavit that each subscriber has agreed to pay in

cash for his share of stock, surplus and reserve for expense upon approval..........

......................................................................................................New Jersey (Ch. 181)

Amendment of agreement of association or of charter of savings bank with approval 

of board of bank incorporation.............................................. Rhode Island (Ch. 2529)

SHAREHOLDERS

Twenty days notice to shareholders of meeting to approve merger agreement

......................................................................................................New Jersey (Ch. 153)

Preemptive rights to purchase new stock within time fixed by Board of Directors

......................................................................................................New Jersey (Ch. 267)

Annual meeting on fourth Tuesday in January unless otherwise fixed in by-laws 

........................................................................................................New Jersey (Ch. 46)

GENERAL OPERATING PROVISIONS 

Coercion by lender in placing insurance on real and personal property prohibited

.................................................................................................Massachusetts (Ch. 520)

Banking institution may apply for license as sales finance company with its own

bond instead of surety bond............................................................Michigan (Act 27)

Limitation of deposits by bank in another bank to 25 percent of capital funds of

depository bank removed.............................................................New Jersey (Ch. 75)

Reserves...........................................................................................New Jersey (Ch. 122)

DEPOSITS

Limitation on deposits and certificate funds of banking companies...............................

...................................................................................................Massachusetts (Ch. 92)

Disposition of abandoned property..........................................Massachusetts (Ch. 801)

Maximum and minimum amounts of deposits in savings banks.New Jersey (Ch. 214)

Interest and dividends on deposits in savings banks.................. New Jersey (Ch. 233)

Banks having State deposits to make monthly report to Comptroller General. . . . 

................................................................................................South Carolina (Act 983)

St a t e B a n k in g L e g is l a t io n

209

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210 FEDERAL DEPOSIT INSURANCE CORPORATION

LOANS

Payments on principal of savings bank construction loan to commence in nine instead

of six months............................................................................ Massachusetts (Ch. 85)

Valuation and revaluation of real estate mortgages held by savings bank..............

...................................................................................................Massachusetts (Ch. 96)

Personal loans by savings banks to be repaid within 2-year period.........................

.................................................................................................Massachusetts (Ch. 365)

Loans insured under Federal Farm Tenant Act.....................Massachusetts (Ch. 598)

Purchase or acquisition of installment loans..................................New York (Ch. 586)

Foreign banks authorized to acquire from bank part or entire interest in loan made

by bank and in its security........................................................New Jersey (Ch. 97)

Real property mortgages purchased by bank.............................. New Jersey (Ch. 183)

Savings bank loans of $10,000 or less on collateral security of value of 110 percent

of loan.......................................................................................... New Jersey (Ch. 164)

Modification of real estate loan limitations................................. New Jersey (Ch. 247)

Savings bank mortgage loan limitations.......................................New Jersey (Ch. 313)

Taking interest in advance on loans.............................................New Jersey (Ch. 311)

Personal loan departments of banks and trust companies............... New York (Ch. 9)

INVESTMENTS

In general obligations of any one political subdivision of State not in excess of 50

percent of capital and surplus........................................................Georgia (H.B. 241)

Savings banks authorized to invest in common stock of national banks anywhere in 

U. S. with capital funds of $40 million and 6 percent of deposits and with ten year 

dividend rate of 4 percent, not in excess of 1/15 of capital funds of savings bank 

in any bank stock or 2/3 of capital funds in all bank stock.. Massachusetts (Ch. 367)

Savings bank investment in equipment obligations.................... New Jersey (Ch. 200)

Restrictions on power to take and hold real estate...........................New York (Ch. 8)

Sale of obligations of certain public units to banks and trust companies of which an

officer or employee of the public unit is an officer, director, or stockholder..........

........................................................................................................New York (Ch. 551)

Savings bank investments................................................................New York (Ch. 645)

TRUST ACTIVITIES

Joint control of money or assets by surety and fiduciary required to give bond-----

...................................................................................................Massachusetts (Ch. 65)

Common trust fund......................................................................... Mississippi (Ch. 328)

Investment of common trust funds in direct obligations of United States excepted

from requirement of ready market over the counter or on an exchange.............

......................................................................................................New Jersey (Ch. 123)

Investment powers of fiduciaries.....................................................New York (Ch. 464)

DIRECTORS, TRUSTEES, OFFICERS, AND EMPLOYEES 

Election of trust company directors at special meeting of shareholders authorized

................................................................................................... Massachusetts (Ch. 93)

Reports to Board of Directors....................................................Massachusetts (Ch. 93)

Executive Committee of Board of Directors................................New Jersey (Ch. 160)

Compensation of trustees of savings bank....................................... New York (Ch. 16)

Retirement benefits of officers and employees............................. New Jersey (Ch. 288)

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STATE BANKING LEGISLATION 211

CHECKS AND COLLECTIONS 

Banks not liable for payment of post-dated check prior to its date unless certified

or accepted and may return to last endorser any such check paid in error..........

......................................................................................................... Louisiana (Act 143)

Death of drawer of check on bank not a revocation of authority to pay check until

bank has notice of death............................................................. Mississippi (Ch. 201)

New Jersey (Ch. 124)

Deferred posting and delayed returns act....................................... Louisiana (Act 144)

Massachusetts (Ch. 287) 

Mississippi (Ch. 204) 

New York (Ch. 153) 

Virginia (Ch. 48)

Bank paying check subject to stop-payment order subrogated to rights of payee,

endorsers and drawer.....................................................................Louisiana (Act 145)

Issuance of bad check of $25 or more made a felony...................Mississippi (Ch. 316)

LIQUIDATION

Disposal of unclaimed dividends...............................................................Idaho (Ch. 10)

Disposition of amounts unclaimed in voluntary and involuntary liquidations. . . . 

..........................................................................................................New York (Ch. 44)

MISCELLANEOUS

Microfilm or photographic copy of bank files or record on original record admissible

in evidence...................................................................................... Louisiana (Act 146)

New Jersey (Ch. 104)

Uniform Trust Receipts Act...........................................................Mississippi (Ch. 331)

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PART FIVE

STATISTICS OF BANKS AND DEPOSIT INSURANCE

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N u m b e r , Offices, and D eposits of Operating B an ks

Table 101. Changes in number and classification of operating banks and branches in the United 

States and possessions during 1950

Table 102. Number of operating banks and branches, December 30, 1950

Grouped according to insurance status and class of bank, and by State and type

of office

Table 103. Number and deposits of all operating banks, December 30, 1950

Banks grouped according to insurance status and by district and State

The line of demarcation between banks and other types of financial 

institutions is not always clear. In these tables provision of deposit 

facilities for the general public is the chief criterion. 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.

The tabulations for all banks and trust companies shown here and 

in Tables 104-106 are prepared in accordance with an agreement 

among the Federal bank supervisory agencies. The data are tabulated 

from individual reports of assets and liabilities of the banks included. 

Institutions included are classified in three groups: commercial and 

stock savings banks, nondeposit trust companies, and mutual savings 

banks. However, in the case of insured banks the first two of these 

groups are combined in the tabulations.

214 FEDERAL DEPOSIT INSURANCE CORPORATION

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Commercial and stock savings 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: cash depositories in South 

Carolina; cooperative exchanges in Arkansas; savings and loan 

companies operating under Superior Court charters in Georgia; 

government operated banks in American Samoa, North Dakota, 

and Puerto Rico; a cooperative bank, usually classified as a credit 

union, operating under a special charter in New Hampshire; two 

savings institutions, known as “ trust companies,” operating under 

special charters in Texas; employes’ mutual banking associations in 

Pennsylvania; and the Savings Banks Trust Company in New York.

Private banks under State supervision, and such other private 

banks as are reported by reliable unofficial sources to be engaged 

in deposit banking;

Branches of foreign banks which engage in a general deposit 

business in the continental United States or in the possessions. 

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 and other banks, such as the Federal Home 

Loan banks and the Savings and Loan Bank of the State of New 

York, which operate as rediscount banks and do not accept deposits 

except from financial institutions;

The postal savings system.

NUMBER, OFFICES, AND DEPOSITS OF OPERATING BANKS 215

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Table 101. C h a n g e s in N u m b e r a n d C la s s if ic a t io n o f O p e r a tin g B a n k s a n d B r a n c h e s 

in t h e U n ite d S t a t e s an d P o s s e s s io n s D u r in g 1950

All banks Commercial and stock savings banks 

and nondeposit trust companies Mutual savings banks

Insured1 Noninsured

Type of change

Insured

Noninsured

Members F. R. 

System Not Non­ Insured2

Noninsured Total Total

Total

National State

members 

F. R.

System

Banks 

of deposit

deposit

trust

companies

Total

BANKS

Number of banks, December 30, 1950....................................... 14,693

14,736

-43

13,640

13,628

+ 12

59

1,053

1,108

-55

14,164

14,205

-41

13,446

13,436

+ 10

59

4,958

4,975

-17

1,912

1,914

-2

6,576

6,547

+29

45

653 65 529 194 335

Number of banks, December 31, 1949....................................... 704 65 531 192 339

Net change during year............................................................. -51 -2 + 2 -4

Banks beginning operations................................................. 69 10 69 6 8 10

New banks............................................................................... 67 58 9 67 58 6 8 44 9

Other additions to operating banks3..................................... 2 1 1 2 1 1 1

Banks ceasing operations..................................................... 106 95 11 104 95 28 12 55 9 2 2

Suspended banks not reopened or succeeded...................... 1 1 1 1

Absorbed with financial aid of FDIC— net decrease........ 4 4 4 4 2 2

Mergers, consolidations and absorptions (without FDIC 

aid)—net decrease............................................................... 89 84 5 88 84 25 12 47 4 1 1

Other liquidations4.................................................................. 12 7 5 11 7 1 6 4 1 1

Noninsured banks becom ing insured............................... +48

+ 5 

+40 

+ 3

-48 +46

+ 5 

+38 

+ 3

+ 2

+ 2

+ 3 +41

+ 3

+38

-46 + 2 -2

Successions to noninsured banks........................................... -5 -5

Admissions to insurance, operating banks5.......................... -40 -38 + 2 -2

Admissions to F. R. System................................................. -3 + 3

-1

-3

Other changes in classification........................................... -6 -6 -6 + 3

+ 4

-1

-2 -6

National banks succeeding State banks............................... -3 -1

State ban^s succeeding national bank................................. + 1

Admissions to F. R. System................................................. + 6

-4

-6

Withdrawals from F. R. System.......................................... + 4

Offices reclassified6................................. ................................ -6 -6 -6 -6

Changes not involving num ber in any class:

Successions ............................................................................. 4 3 1 4 3 2 1 1

Changes in title, location, or name of location.................. 121 120 1 116 116 22 13 81 5 4 1

Change in classification.......................................................... 2 2 2 2

Change in corporate powers................................................... 11 ......11 11 11 11

216 FEDERAL DEPOSIT INSURANCE CORPORATION

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BRANCHES

Number of branches, December 30, 1950.

Number of branches, December 31, 1949.

Net change during year.

Branches opened for business.............................

Facilities provided as agents of the government7.

Absorbed banks converted into branches............

Branches replacing offices relocated.....................

Other branches opened...........................................

Branches not previously included8........................

Branches discontinued9. ........................................

Facilities discontinued............................................

Other branches discontinued.................................

Other changes in classification among branches..........

Branches of noninsured banks admitted to insurance.......

Branches transferred as result of absorption or succession.

Sale of branch to another bank............................................

Offices reclassified6................................................................ .

Changes not involving number in any class:

Successions............................................................................ .

Branches transferred as result of absorption or succession

Change in title, location, or name of location.................. .

Change in powers................................................................. .

ALL BANKING OFFICES

Number of offices, December 30, 1950.

Number of offices, December 31, 1949.

Net change during year.

Offices opened.

Banks.............

Branches........

Offices closed.

Banks...........

Branches.. . .

Changes in classification6.

Among banks......................

Among branches.................

5,158

4,864

+294

311

1936

24

7

17

+7

.

’ +6

1

36

1322

19,851

19,600

+251

380

69

311

130

106

24

+ 1-6 

+ 7

4,984

4,671

+313

300

35

712

1866

23

7

16

+36

+ 35 

+ 1

1

36

1322

18,624

18,299

+325

359

59

300

118

95

23

+84

+48 

+ 36

174

193

-19

111

2

1

7

-29

-35

+6

1,227

1,301

-74

211011

12111

-83

-54

-29

4,945

4,665

+280

298

36

732

1816

24

7

17

+6

+ 1 -1 +6

1

36

1272

19,109

18,870

+239

367

69

298

128

104

24

-6+6

4,832

4,530

+302

293

35

712

1796

23

7

16

+32

+32

+1-1

1272

18,278

17,966

+312

352

59

293

118

95

23

+78

+46

+32

2,230 1,359

2,085 1,302

+ 145 +57

138 72

25 3

39 20

1

73 49

8 10

5 1

3 9

+ 15 -5

+ 16 -5

-1

6 28

78 28

1

7,188 3,271

7,060 3,216

+ 128 +55

144 80

6 8

138 72

36 22

28 12

8 10

+20 -3

+ 5 +2

+ 15 -5

1,243

1,143

+ 100

83

7

121

57

5

1

4

+22

+32 -10

7,819

7,690

+ 129

128

45

83

60

55

+61

+39 +22

112

134

1

1

213

199

152

141

61

58

-22 + 14

13

+ 11

7

+3

5 6

1

2

1 1

2 12 7 5

1

1

-26 + 1 + 4 -3

-32 +3 -3

+ 1 + 1

+6

5 5

765

838

66

66

742

730

346

333

396

397

-73 + 12

13

+ 13

7

-1

15 6

10

5 13 7 6

10 2 2

9 2 2

1

-78 + 1 +6

+2

+4

-5

-52 -2

-26 +1 -3

1 Includes 6 trust companies not engaged in deposit banking on December 30, 1950 and December 31, 1949.

* Includes 3 mutual savings banks members of the Federal Reserve System on December 30, 1950, and December 31, 1949.

* Includes 1 financial institution becoming bank of deposit, and 1 bank which discontinued voluntary liquidation proceedings and reopened. 

4 Includes 2 banks placed in liquidation in 1949, but included in count as of December 31, 1949.

, which were formerly tabulated as banks. 

. -- ________________________________________ f December 31, 1949.

8 Includes 5 branches opened prior to beginning of year but not included in count as of December 31, 1949. -

9 Includes 1 facility and 1 branch discontinued prior to beginning of year but included in count as of December 31, 1949.

NUMBER, OFFICES, AND DEPOSITS OF OPERATING BANKS 217

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Table 102. N u m b e r o f A l l O p e r a t in g B a n k s a n d B r a n c h e s , D e c e m b e r 30, 1950

GROUPED ACCORDING TO INSURANCE STATUS AND CLASS OF BAN K , AND BY STATE AND TYPE OF OFFICE

All banks Commercial and stock savings banks 

and nondeposit trust companies Mutual savings banks Insured banks 

as percentages of—

Insured1 Noninsured

State and type of bank or office

Total Insured Noninsured Total

Total

Members F. R. 

System

Not 

members 

F. R.

System

Banks 

of deposit

Nondeposit

trust

companies

Total Insured2

Noninsured

All

banks

Commercial

banks

Mutual

savings

banks

National State

United States and possessions........ 19,851

14,693

18,624

13,640

1,227

1,053

19,109

14,164

18,278

13,446

7,188

4,958

3,271

1,912

7,819

6,576

765

653

66

65

742

529

346

194

396

335

93.8

92.8

95.7

94.9

46.6

36.7

18,279 12,806 978 12,868 12,179 U,591 1,691 5,897 620 6U U16 127 289 92.7 9U.7 80.5

IM h 1.881* 80 1,801 1,267 867 221 679 88 1 118 67 U6 9U.8 97.U 59.8

Branches............................................. 5,158 4,984 174 4,945 4,832 2,230 1,359 1,243 112 1 213 152 61 96.6 97.7 71.4

United States....................................... 19,708 18,571 1,137 18,966 18,225 7,188 3,271 7,766 680 61 742 346 396 94.2 96.1 46.6

All banks............................................. 14,650 13,626 1,024 14,12T 13,432 4,958 1,912 6,562 629 60 529 194 335 93.0 95.1 36.7

Unit banka....................................... 18.2U6 12,298 9U8 12,880 12,171 U,591 1,691 5,889 600 59 U16 127 289 92.8 9 k.9 80.5

Banks operating branches............... 1,U0U 1,828 76 1,291 1,261 867 221 678 29 1 118 67 U6 9U.6 97.7 59.8

Branches............................................. 5,058 4,945 113 4,845 4,793 2,230 1,359 1,204 51 1 213 152 61 97.8 98.9 71.4

143

43

88

10

100

53 90 143 53 53 85 5 37.1 37.1

14 29 43 14 14 24 5 32.6 32.6

8 25 88 8 8 20 5 2U.2 2U.2

6 JL 10 6 6 U 60.0 60.0

39 61 100 39 39 61 39.0 39.0

State

251

225

251 25! 251 95 24 132 100.0 100.0

225 225 225 70 23 132 100.0 100.0

219 219 219 219 65 22 182 100.0 100.0

6 6 6 6 5 1 100.0 100.0

26 26 26 26 25 1 100.0 100.0

67 65 2 67 65 40 6 19 2 97.0 97.0

11 10 1 11 10 3 2 5 1 90.9 90.9

4 4 u 4 1 1 2 100.0 100.0

7 6

55

1 7 6 2 1 8 1 85.7 85.7

56 1 56 55 37 4 14 1 98.2 98.2

A r l r o f i c o o 251 241 10 251 241 54 16 171 9 1 96.0 96.0

232 222 10 232 222 52 16 154 9 1 95.7 95.7

215

17

19

205 10 215 205 50 16 189 9 1 95.8 95.8

17

19

17 17 2 15 100.0 100.0

19 19 2 17 100.0 100.0

218 FEDERAL DEPOSIT INSURANCE CORPORATION

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California..............................

All banks.............................

Unit banks.......................

Banks operating branches, 

Branches..............................

C olorado................................

All banks.............................

Unit banks.......................

Banks operating branches

Branches..............................

C onnecticut..........................

All banks.............................

Unit banks.......................

Banks operating branches

Branches..............................

Delaware................................

All banks.............................

Unit banks.......................

Banks operating branches

Branches..............................

District of C olum bia..........

All banks.............................

Unit banks.......................

Banks operating branches

Branches..............................

Florida....................................

All banks.............................

Unit banks.......................

Banks operating branches

Branches..............................

G eorgia..................................

All banks.............................

Unit banks.......................

Banks operating branches

Branches..............................

Id ah o......................................

All banks.............................

Unit banks.......................

Banks operating branches

Branches..............................

Illinois....................................

All banks.............................

Unit banks.......................

Banks operating branches

Branches..............................

1,169 12 1,181 1,169 869

191 11 202 191 93

146 10 156 146 77

45 1 46 45 16

978 1 979 978 776

148 10 158 148 80

144 10 154 144 77

140 10 150 140 74

4 4 4 3

4 4 4 3

145 94 162 142 69

95 89 112 92 47

79 86 96 76 40

16 3 16 16 7

50 5 50 50 22

56 5 58 56 13

37 3 38 37 13

30 1 so SO IS

7 2 8 7

19 2 20 19

64 64 64 33

19 19 19 9

4 h 4 1

15 15 15 8

45 45 45 24

201 4 205 201 66

195 4 199 195 62

189 4 193 189 58

6 6 6 4

6 6 6 4

372 67 439 372 76

331 66 397 331 51

313 65 378 313 42

18 1 19 18 9

41 1 42 41 25

97 1 98 97 61

42 1 43 42 13

34 1 35 34 8

8 8 8 5

55 55 55 48

878 15 893 878 386

876 15 891 876 384

874 15 889 874 382

2 2 2 2

2 2 2 2

1,181

202

156

46

979

158

154

150

4

4

239

184

165

19

55

61

40

SI

9

21

64

19

4

15

45

205

199

193

6

6

439

397

S78

19

42

98

43

35

8

55

893

891

889

2

2

180

27

16

11

120

71

53

18

3

2

1

1

9

9

9

153 49 1

16 52 10

16 51 10

16 50 10

1

1

36 37 19 1 77 3 74

15 30 19 1 72 3 69

9 27 19 1 69 3 66

6 3 s 3

21 7 5 5

12 31 2 3 3

4 20 1 2 2

1 16 1 1

s 4 1 1 1

g 11 1 1 1

17 14

6 4

2 1

4 3

11 10

12 123 2 2

12 121 2 2

12 119 2 2

2

2

25 271 67

15 265 66

10 261 65

5 4 1

10 6 1

13 23 1

11 18 1

10 16 1

1 2

2 5

124 368 12 3

124 368 12 3

124 368 12 S

99.0

94.6

93.6

97.8

99.9

93.7

93.5

93.3 100.0 100.0

60.7

51.6

47.9

84.2

90.9

91.8

92.5

96.8

77.8

90.5

100.0 100.0 100.0 100.0 100.0

98.0

98.0

97.9 100.0 100.0

84.7

83.4

82.8

94.7

97.6

99.0

97.7

97.1 100.0 100.0

98.3

98.3

98.3 100.0 100.0

99.0

94.6

93.6

97.8

99.9

93.7

93.5

93.3 100.0 100.0

87.7

82.1

79.2 100.0 100.0

96.6

97.4 100.0

87.5

95.0

100.0 100.0 100.0 100.0 100.0

98.0

98.0

97.9 100.0 100.0

84.7

83.4

82.8 94.7

97.6

99.0

97.7

97.1

100.0

100.0

98.3

98.3

98.3

100.0

100.0

3.9

4.2

4.3

toi—‘ 

CONUMBER, OFFICES, AND DEPOSITS OF OPERATING BANKS

Digitized for FRASER 

http://fraser.stlouisfed.org/ 

Federal Reserve Bank of St. Louis
Table 102. N u m b e r o f A l l O p e r a t i n g B a n k s a n d B r a n c h e s , D e c e m b e r 30, 1950— Continued

GROUPED ACCORDING TO INSURANCE STATUS AND CLASS OF BAN K , AND BY STATE AND TYPE OF OFFICE

All banks Commercial and stock savings banks 

and nondeposit trust companies Mutual savings banks Insured banks 

as percentages of—

Insured1 Noninsured

State and type of bank or office

Total Insured Noninsured Total

Total

Members F .R . 

System

Not 

members 

F. R.

System

Banks 

of deposit

Nondeposit

trust

companies

Total Insured2

Noninsured

All

banks

Commercial

banks

Mutual

savings

banks

National State

Indiana.................................................. 599 586 13 595 583 160 132 291 10 2 4 3 1 97.8 98.0 75.0

All banks............................................. 490 478 12 486 475 125 112 238 9 2 4 3 1 97.6 97.7 75.0

Unit banks....................................... 432 421 11 428 418 111 107 200 8 2 4 3 1 97.5 97.7 75.0

58 57 1 58 57

^■xa

5 38 1 98.3 98.3

Branches............................................. 109 108 1 109 108 20 53 1 99.1 99.1

Iowa........................................................ 827 765 62 827 765 97 64 604 61 1 92.5 92.5

All banks............................................. 663 606 57 663 606 97 64 445 56 1 91.4 91.4

Unit banks. ... .................. 542 489

117

53 542

121

489 97 64 328 52 1 90.2 90.2

Banks operating branches............... 121 4 117 117 4 96.7 96.7

Branches 164 159 5 164 159 159 5 97.0 97.0

Kansas ............................................... 612 466 146 612 466 174 41 251 146 76.1 76.1

All banks 612 466 146 612 466 174 41 251 146 76.1 76.1

Unit banks . .. .. . 612 466 146 612 466 174 41 251 146 76.1 76.1

Banks operating branches...............

Branches.............................................

Kentucky ....................................... 429 406 23 429 406 in 29 266 20 3 94.6 94.6

All banks .. . ............................ 385 362 23 385 362 92 21 249 20 3 94.0 94.0

Unit banks ............................. 361 338 23 361 338 89 16 233 20 3 93.6 93.6

Banks operating branches............... 24

44

24 24

44

24

44

3 5 16 100.0 100.0

Branches .......................... 44 19 8 17 100.0 100.0

Louisiana . . . . ............................ 242 241 1 242 241 75 19 147 1 99.6 99.6

All banks .......................... 165 164 1 165 164 36 11 117 1 99.4 99.4

Unit banks .......................... 126 125 1 126 125 26 6 93 1 99.2 99.2

Banks operating branches............... 39 39 39 39 10 5 24 100.0 100.0

Branches ................ .. 77 77 77 77 39 8 30 100,0 100.0

M ain e................................................... 168 121 47 134 115 40 34 41 19 34 6 28 72.0 85.8 17.6

All banks............................................. 95 59 36 63 53 32 5 16 10 32 6 26 62.1 84.1 18.8

Unit banks....................................... 69 hi 28 39 35 27 1 7 4 30 6 24 59.4 89.7 20.0

Banks operating branches............... 26 18 8 24

71

18 5 4 9 6 2 2 69.2 75.0

Branches . ............................ 73 62 11 62 8 29 25 9 2 2 84.9 87.3

FEDERAL DEPOSIT INSURANCE CORPORATION

Digitized for FRASER 

http://fraser.stlouisfed.org/ 

Federal Reserve Bank of St. Louis
M aryland...............................

All banks.............................

Unit banks.......................

Banks operating branches

Branches..............................

Massachusetts.....................

All banks.............................

Unit banks.......................

Banks operating branches

Branches..............................

M ichigan...............................

All banks.............................

Unit banks.......................

Banks operating branches

Branches..............................

M innesota.............................

All banks.............................

Unit banks.......................

Banks operating branches

Branches..............................

M ississippi............................

All banks.............................

Unit banks.......................

Banks operating branches

Branches..............................

M issouri.................................

All banks.............................

Unit banks.......................

Banks operating branches

Branches..............................

M ontana................................

All banks.............................

Unit banks.......................

Banks operating branches

Branches..............................

Nebraska................................

All banks.............................

Unit banks.......................

Banks operating branches

Branches..............................

Nevada....................................

All banks.............................

Unit banks.......................

Banks operating branches

Branches..............................

296 12 283 280 82

164

9 164 162 61

188

6 133 182 5k

31

3 31 30

7

132 3 119 118 21

349 246 359 349 209

174 197 182 174 116

12k 160 131 12k 9k

50 37 51 50 22

175 49 177 175 93

647 34 681 647 163

414 28 442 414 78

852 26 878 352 66

62

2 6k 62 12

233 6 239 233 85

668 19 686 667 184

662 19 680 661 178

660 19 678 659 176 2 2 2 2 6 6 6 6

265

4 269 265 29

197 4 201 197 24

160

k 16k 160 23

87 37 37

1

68 68 68

5

577 24 601 577 80

576 24 600 576 79

575 2k 599 575 78

1 1 1 1 1 1 1 1

110 110 110 39

110 110 110 39

110 110 110 39

369 51 420 369 126

367 51 418 367 124

365 51 U16 365 122

2 2 2

2

2 222

27 27 27 19

8 8

8

5

8 3 8 2

5 5

5

3

19 19 19 14

308

173

1893J,

135

595

371

28k

87

224

681

442

378

6k

239

687

681

67926

269

201

16 k.

37

68

601

600

59911

110

110

110

420

418 hi 622

27835

19

73

169

125

85

69

21

111

2596

1621975

7 16

1

8

1

2

57 40

1 16 14

2

91 49 10 236 236

25 33 8 189 189 8 22 7 153 158

17 11 1 86 86

66 16 2 47 47

251 233 27 7

153 183 21 7

189 lk7 19

7

lk- 86 2

98 50 6

28 455 17

2 1 1

28 455 17

2 1 1

28 k55 17

2 1 1

9 227 4 7 166 4

6 181

k

1 85 2 61

101 396 20

4

101 396 20 4

101 396 20 u

45 26

45 26

h5 26

17 226 44

7

17 226 44

7

17 226

U

7

5

3

1

21

1

1

4 1

96.1 98.9

94.8 98.8

95.7 99.2

91.2 96.8

97.8 99.2

58.7 97.2

46.9 95.6

kS.7 9k.7

57.5 98.0

78.1 98.9

95.0 95.0

93.7 93.7

93.1 93.1

96.9 96.9

97.5 97.5

97.2 97.2

97.2 97.2

97.2 97.2

100.0 100.0

100.0 100.0

98.5 98.5

98.0 98.0

97.6 97.6

100.0 100.0

100.0 100.0

96.0 96.0

96.0 96.0

96.0 96.0

100.0 100.0

100.0 100.0

100.0 100.0

100.0 100.0

100.0 100.0

87.9 87.9

87.8 87.8

87.7 87.7

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

64.0

22.2

16.7

33.3

87.5

100.0

100.0

100.0

toN U M B E R , O F F IC E S , AND D EPO SITS OF O PE R A T IN G B A N K S

Digitized for FRASER 

http://fraser.stlouisfed.org/ 

Federal Reserve Bank of St. Louis
T a b l e 1 0 2 . N u m b e r o f A l l O p e r a t i n g B a n k s a n d B r a n c h e s , D e c e m b e r 30, 1950— Continued

GROUPED ACCORDING TO INSURANCE STATUS AND CLASS OF BA N K , AND BY STATE AND TYPE OF OFFICE

State and type of bank or office

New H am pshire..................

All banks.............................

Unit banks.......................

Banks operating branches

Branches..............................

New Jersey............................

All banks.............................

Unit ba7iks.......................

Banks operating branches

Branches..............................

New M exico..........................

All banks.............................

Unit banks.......................

Banks operating branches

Branches..............................

New Y ork..............................

All banks.............................

Unit banks.......................

Banks operating branches

Branches..............................

North Carolina....................

All banks.............................

Unit banks.......................

Banks operating branches

Branches..............................

North Dakota.......................

All banks.............................

Unit banks.......................

Banks operating branches

Branches..............................

All banks

T otal Insured

112

109

106

3

3

521

347

282

65

174

66

51U2

9

15

1,642

759

586

173

883

443

225

162

63

218

172

150

135

15

22

N onin su red

59

58

571

1

517

343

278

65

174

66

51

15

1,632

752

581

171

880

440

224

162

62

216

167

145

130

15

22

Commercial and stock savings banks 

and nondeposit trust companies

Total

489

324

60

165

15

510

119

788

443

,225

218

172

150

135

15

22

Insured1

Total

National State

59

58

571

1

485

320

260

60

165

66

51U2

9

15

1,407

622

505

117

785

440

224

162

62

216

167

145

130

15

22

M em bers F . R . 

System

52

51

501

1

276

205

177

28

71

28

26

597

376

32U

52

221

69

46

36

10

23

41

41 

-41

149

71

U72U

78

9

680

171

12 UU7

509

31

8

U

u

23

2

2

2

N ot 

m embers 

F . R .

S y ste m

29

16

9

7

13

130

75

57

18

55

340

170

170

124

102

87

15

22

N oninsured

Banks 

of deposit

N ond e p o s it

trust

com ­

panies

M utual savings banks

Total

225

130

76

5U

95

Insured2

225

130

76

5U

95

N onin su red

Insured banks 

as percentages o f -

All

banks

52.7

53.2

53.8

33.3

33.3

99.2

98.8

98.6

100.0

100.0

100.0

100.0

100.0

100.0

100.0

99.4

99.1

99.1

98.8

99.7

99.3

99.6 

100.0

98.U

99.1

97.1

96.7

96.3

100.0

100.0

Com ­

m ercial

banks

76.6

77.3

78.1

50.0

50.0

99.2

98.8

98.5

100.0

100.0

100.0

100.0

100.0

100.0

100.0

99.3

98.9

99.0

98.3

99.6

99.3

99.6 

100.0 98.lt

99.1

97.1

96.7

96.3

100.0

100.0

M utual

savin gs

banks

100.0

100.0

100.0

100.0

100.0

100.0

100.0 100.0 100.0

100.0

222 FEDERAL DEPOSIT IN SU R A N C E C O R P O R A T IO N

Digitized for FRASER 

http://fraser.stlouisfed.org/ 

Federal Reserve Bank of St. Louis
O h io ........................................

All banks.............................

Unit banks.......................

Banks operating branches

Branches..............................

Oklahom a..............................

All banks.............................

Unit banks.......................

Banks operating branches

Branches..............................

O regon...................................

All banks.............................

Unit banks.......................

Banks operating branches

Branches..............................

Pennsylvania........................

All banks.............................

Unit banks.......................

Banks operating branches

Branches..............................

Rhode Island........................

All banks.............................

Unit banks.......................

Banks operating branches

Branches..............................

South C arolina....................

All banks.............................

Unit banks.......................

Banks operating branches

Branches..............................

South D akota.......................

All banks.............................

Unit banks.......................

Banks operating branches

Branches..............................

Tennessee..............................

All banks.............................

Unit banks.......................

Banks operating branches

Branches..............................

Unit banks.......................

Banks operating branches

B ranches....................................

879 9 885 876 306

653 9 659 650 241

596 9 602 593 223

57 57 57 18

226 226 226 65

376 11 387 376 200

375 11 386 375 199

374 11 385 374 198 1 1 1 1 1 1 1 1

171

2 172 170 108

69 2 70 68 20

55 2 56 54 17

14 14 14

3

102 102 102 88

1,169 21 1,164 1,143 748

961 17 971 954 627

896 14 907 893 593

65 3 64 61 34

208

4 193 189 121

64 26 76 59 22

14 10 16 12

7

5 6

5

4

4

9

4 11

8

3

50 16 60 47 15

180 17 197 180 58

131 17 148 131 25

114 17 131 114 20

17 17 17 5

49 49 49 33

218 218 218 56

169 169 169 35

143 143 143 31

26 26 26

4

49 49 49 21

387 8 395 387 123

2898 297 289 72

256

8 264 256 61

33 33 33 11

98 98 98 51

873 47 920 873 454

861 47 908 861 442

848 47 895 848 429

13 13 13 13

12 12 12 12

888

662

605

57

226

387

386

38511

173

71

57

14

102

1,190

978

910

68

212

90

24

11

13

66

197

148

131

17

49

218

169

143

26

49

395

297

26433

98

920

908

89513

12

311

181

163

18

130

25

25

25

12

10912

153

108

95

13

45

242

• •* 2

2297522

27

27

27

22

1091

12

136

136

136

259

228

20721

31

151

151

151

50

38

281012

242

219

205

14

23

133

10

113

99

89

10

14

135

107

8522

28

242

207

18621

35

283

283

283

19

15 1234

163

13

17

17

17

47

47

47

26734

19

148

26734

1952113

99.0 

98.6

98.5

100.0

100.0

97.2

97.2

97.1

100.0

100.0

98.8

97.2

96.5

100.0

100.0

98.2

98.3

98.5

95.6

98.1

71.1

58.3 

45.5

69.2

75.8

91.4

88.5

87.0

100.0

100.0

100.0

100.0

100.0

100.0

100.0

98.0

97.3

97.0

100.0

100.0

94.9

94.8

94.7

100.0

100.0

99.0

98.6

98.5

100.0

100.0

97.2

97.2

97.1

100.0

100.0

98.8

97.1

96.4

100.0

100.0

98.2

98.2

98.5

95.3

97.9

77.6

75.0

80.0

72.7

78.3

91.4

88.5

87.0

100.0

100.0

100.0

100.0

100.0

100.0

100.0

98.0

97.3

97.0

100.0

100.0

94.9

94.8 

94.7

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

35.7

25.0

16.7

50.0

50.0

toto

CON U M B E R , O F F IC E S , AND D EPO SITS OF O PE R A T IN G B A N K S

Digitized for FRASER 

http://fraser.stlouisfed.org/ 

Federal Reserve Bank of St. Louis
Table 102. N u m b e r o f A l l O p e r a t in g B a n k s a n d B r a n c h e s , D e c e m b e r 30, 1950—Continued

GROUPED ACCORDING TO INSURANCE STATUS AND CLASS OF BA N K , AND B Y STATE AND TY PE OF OFFICE

All banks Commercial and stock savings banks 

and nondeposit trust companies Mutual savings banks Insured banks 

as percentages of—

Insured1 Noninsured

State and type of bank or office

Total Insured Noninsured Total

Total

Members F. R. 

System

Not 

members 

F. R.

System

Banks 

of deposit

Nondeposit Total Insured*

Noninsured

All

banks

CommercialMutual

savings

National State

trust

companies

banks banks

U tah....................................................... 79 79 79 79 28 25 26 100.0

100.0

100.0

100.0

100.0

99.0

98.7

98.5

100.0

100.0

100.0

100.0

100.0

100.0

100.0

100.0

98.8

98.6 

98.U

100.0

100.0

100.0

100.0

100.0

100.0

100.0

98.9

97.5

97.1

100.0

100.0

97.8

97.8

97.8

All banks............................................. 55 55 55 55 11 20 24

Unit banks....................................... U9 U9 U9 U9 9 18 22

Banks operating branches............... 6 6 6 6 2 2 2

Branches............................................. 24 24 24 24 17 5 2

V erm on t................................................ 97 96 1 81 80 41 1 38 1 16

7

16

7

100.0

100.0

100.0

100.0

100.0

All banks............................................. 77 76 1 70 69 39 1 29 1

Unit banks....................................... 68 67 1 62 61 37 1 23 1 6 6

Banks operating branches............... 9 9 8 8 2 6 1 1

Branches............................................. 20 20 11 11 2 9 9 9

Virginia................................................. 427 427 427 427 176 89 162

All banks............................................. 313 313 313 313 132 71 110 100.0

100.0

100.0

Unit banks....................................... 259 259 259 259 112 61 86

Banks operating branches............... 5U 5U 5U 5h 20 10 2U

Branches............................................. 114 114 114 114 44 18 52 100.0

98.9

97.5

97.2

100.0

100.0

97.8

97.8

W ashington.......................................... 268 265 3 262 259 166 21 72 3 6 5 100.0

100.0

100.0

100.0

100.0

All banks............................................. 121 118 3 118 115 36 16 63 3 3 3

Unit banks....................................... 106 103 3 10 U 101 28 1U

2

59 3 2 2

Banks operating branches............... 15 15 lk lb 8 U 1 1

Branches............................................. 147 147 144 144 130 5 9 3 3

West Virginia....................................... 180 176 4 180 176 74 34 68 4

All banks............................................. 180 176 4 180 176 74 34 68 4

Unit banks....................................... 180 176 u 180 176 7* 3U 68 U 97.8 Banks operating branches...............

Branches.............................................

W isconsin............................................. 708 697 11 704 694 111 75 508

379

7 3 4 3 1 98.4

98.2

98.1

98.9

98.6

98.4

98.3

98.9

75.0

75.0

75.0

All banks............................................. 556 546 10 552 543 95 69 6 3 4 3

3

1

....................................... U6U U55 IUnit banks

91

9 k 60

92

U52 90 65 297 5 3 •4 Banks operating branches............... 92 1 91 5 U 82 1

Branches............................................. 152 151 1 152 151 16 6 129 1 99.3 99.3

224 FE D E RA L DEPOSIT IN SU R A N C E C O R P O R A T IO N

Digitized for FRASER 

http://fraser.stlouisfed.org/ 

Federal Reserve Bank of St. Louis
W yom ing.................................

All banks...............................

Unit banks.........................

Banks operating branches.

Branches................................

Possessions

Alaska3.....................................

All banks...............................

Unit banks.........................

Banks operating branches. 

Branches...............................

American Sam oa..................

All banks...............................

Unit banks.........................

Banks operating branches.

Branches...............................

Guam (including Marianas Islands)4.

All banks.............................................

Unit banks.......................................

Banks operating branches...............

Branches.............................................

Hawaii6.....................................

All banks...............................

Unit banks.........................

Banks operating branches.

Branches...............................

Panama Canal Zone4...........

All banks...............................

Unit banks.........................

Banks operating branches.

Branches................................

Puerto Rico4...........................

All banks...............................

Unit banks.........................

Banks operating branches.

Branches...............................

Virgin Islands6.......................

All banks...............................

Unit banks.........................

Banks operating branches.

Branches................................

53

53

53

24

24

n

15

15

15

14 100.0

100.0

100.0

100.0

100.0

100.0

14

U

9

5

3

2

4

9

5

3

2

4

15

15

15

37.5

25.0

16.7

100.0

100.0

37.5

25.0

16.7

100.0

100.0

1

1

1

2

2

48

3 

1

2

45

4

1

1

1

1

1

1

5

5

5

1.9

11.1

1U.3

1.9

11.1

1U.3

4

14

4

2

2

10

1

1

1

41

7

U

s

34

2

1

41

7

U

3

34

2

1

74.5

63.6

66.7

60.0

77.3

66.7

50.0

74.5

63.6

66.7

60.0

77.3

66.7

50.0

1

1

1

1

100.0

100.0

100.0

100.0

52!

d

K

w

tel W

o

awO tel v?2 

>

« 

e 

tel ►d O Uli—i

G0

O*1

o

hj

tel

£

a

%

o

w

22!

COW

1 Includes 6 trust companies not engaged in deposit banking: 2 State banks members of the Federal Reserve System, 1 each in California and Massachusetts; and 4 State 

banks not members of the Federal Reserve System, 1 each in Florida, Missouri, Pennsylvania and Wisconsin.

* Includes 3 banks members of the Federal Reserve System: 1 in Indiana and 2 in Wisconsin. bO

* Includes 5 national banks, 4 among insured banks not members of the Federal Reserve System, and 1 among noninsured banks.

* Includes noninsured branches of insured banks in the United States: 1 in Guam, 1 in Marianas Islands, 4 in Panama Canal Zone, and 7 in Puerto Rico.

* Includes, among noninsured banks, 1 national bank operating 20 branches.

* Includes, among insured banks not members of the Federal Reserve System, 1 national bank operating 1 branch.

Back figures: See the Annual Report for 1949, pp. 128-135, and earlier reports.

Digitized for FRASER 

http://fraser.stlouisfed.org/ 

Federal Reserve Bank of St. Louis
Table 103. N u m b e r a n d D e p o s it s o f A l l O p e r a t in g B a n k s , D e c e m b e r 30, 1950

B A N K S GROUPED ACCORDING TO INSURANCE STATUS AND BY DISTRICT AND STATE

t o

t oOi

F D IC D istrict 

and State

Number of banks

All

banks1

Com m ercial and stock savings 

banks and nondeposit 

trust com panies

T ota l Insured2

N oninsured

Banks 

of dep osit1

N on ­

d e p o s it

trust

com ­

panies

M utual savings banks

T otal

Insured

N oninsured

Deposits (in thousands of dollars)

All

banks

C om m ercial and stock savings 

banks and nondeposit 

trust com panies

T otal Insured N oninsured

M utual savings banks

T otal Insured

N oninsured

United States and 

possessions. ..

United States...

Possessions........

FDIC District

District 1.............

District 23............

District 3.............

District 4 .............

District 5.............

District 6.............

District 7.............

District 8.............

District 9.............

District 10...........

District 11...........

District 124..........

State

Alabama..............

Arizona................

Arkansas..............

California............

Colorado..............

Connecticut.........

Delaware.............

Dist. of Columbia

Florida.............

Georgia............

Idaho...............

Illinois..............

Indiana............

Iowa.................

Kansas.............

14,693

14,650

43

860

1,159

1,640

1,058

1,022

1,514

1,488

1,554

1,110

1,623

1,135

530

225

11

232

202

154

184

40

19

199

397

43

891

490

663

612

14,164

14,121

43

518

1,004

1,630

1,049

1,022

1,514

1,480

1,554

1,109

1,623

1,135

526

225

11

232

202

154

112

38

19

199

397

43

891

486

663

612

13,446

13,432

14

458

987

1,604

1,025

948

1,449

1,432

1,482

1.085 

1,405

1.086 

485

225

10

222

191

144

92

37

19

195

331

42

876

475

606

466

653

629

24

57

14

24

23

72

54

36

68

22

209

48

2

66

1

12

9

56

146

529

529

342

155

10

194

194

335

335

18

153

102

324

2

176,120,158

175,296,191

823,967

13,366,219

50,768,659

19,988,508

8,770,835

5,876,093

9,109,612

12,268,973

15,405,993

4,749,163

6,286,585

10,137,619

19,391,899

1,271,312

470,746

847,093

14,018,278

1,216,378

3,047,612

623,149

1,162,112

2,008,324

1,779,546

442,985

13,037,855

3,322,273

2,368,138

1,687,499

156,088,822

155,264,855

823,967

7,848,815

38,416,786

18,668,708

8,368,603

5,876,093

9,109,612

12,212,457

15,405,993

4,581,971

6,286,585

10,137,619

19,175,580

1,271,312

470,746

847,093

14,018,278

1,216,378

1,711,251

535,327

1,162,112

2,008,324

1,779,546

442*985

13,037,855

3,278,969

2,368,138

1,687,499

153,497,611

153,288,465

209,146

7,475,060

37,782,149

18,595,851

8,232,281

5,844,584

9,059,255

12,025,819

15,268,250

4,467,963

6,076,407

10,047,579

18,622,413

1,271,312

467,711

843,400

13,964,890

1,209,166

1,633,534

533,001

1,162,112

2,001,015

1,763,259

434,254

12,993,950

3,259,665

2,274,300

1,530,457

2,591,211

1,976,390

614,821

373,755

634.637 

72,857

136,322

31,509

50,357

186.638 

137,743 

114,008 

210,178

90,040

553,167

20.031.336

20.031.336

14.320.085

14.320.085

5.711.251

5.711.251

5,517,404

12,351,873

1,319,800

402,232

226,416

12,264,051

1,319,800

82,731

5,290,988

87,822

56,516 43,576

319,501 

' 12,940

167,192

216,319

167,192

216,319

3,035

3,693

53,388

7,212

77,717

2,326

1,336,361

87,822

39,499 1,296,862

87,822

7,309

16,287

8,731

43,905

19,304

93,838

157,042

43,304 30,719 12,585

FE DE RA L DEPOSIT IN SU R A N C E C O R P O R A T IO N

Digitized for FRASER 

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Federal Reserve Bank of St. Louis
Kentucky..........

Louisiana...........

Maine................

Maryland..........

Massachusetts. .

Michigan... 

Minnesota.. 

Mississippi. 

Missouri. . . 

Montana...

Nebraska.............

Nevada................

New Hampshire..

New Jersey..........

New Mexico........

New York............

North Carolina... 

North Dakota...

Ohio......................

Oklahoma............

Oregon.................

Pennsylvania. . . . 

Rhode Island. . . . 

South Carolina... 

South Dakota___

Tennessee.

Texas........

Utah.........

Vermont. . 

Virginia...

Washington.........

West Virginia.. ..

Wisconsin............

Wyoming.............

Possession

Alaska..................

American Samoa. 

Guam and 

Marianas Islands5

Hawaii.................

Panama Canal

Zone6................

Puerto Rico5........

Virgin Islands....

165

95

173

371

442

681

201

600

110

418

8

109

347

51

759

225

150

662

386

71

978

24

148

169

297

908

55

77

313

121

180

556

53

201

385

165

63

164

182

442

680

201

600

110

418

8

75

324

51

629

225

150

659

70

971

16

148

169

297

908

55

70

313

118

180

552

53

362

164

53

162

174

414

661

197

576

110

367

8

58

320

51

622

224

145

650

375

954

12

131

169

289

861

55

69

313

115

176

543

53

201

101

21

17

4

20

44

5

47

32

9

189

130

23

130

'3

26

7

189

34

1,617,182

1,835,437

686,384

2,072,700

7,691,547

1,617,182

1,835,437

448,539

1,670,468

4,379,466

5,829,254

3,099,199

816,911

4,584,006

581,765

5,829,254

2,932,007

816,911

4,584,006

581,765

1,375,030

178,579

555,949

5,454,936

360,852

1,375,030

178,579

278,108

4,855,706

360,852

44,392,898

1,899,074

563,699

8,082,933

1,736,190

32,728,077

1,899,074

563,699

7,840,002

1,736,190

1,436,308

11,905,575

1,044,003

672,370

504,500

1,419,620

10,828,706

776,588

672,370

504,500

2,061,331

7,470,584

589,691

340,724

2,014,777

2,061,331

7,470,584

589,691

254,863

2,014,777

2,199,767

949,802

3J.17.446

271,488

2,000,136

949,802

3,104,234

271,488

84,822

1,340

84,822

1,340

20,021

395,182

20,021

395,182

24,926

293,233

4,443

24,926

293,233

4,443

1.597.708 

1,834,634

409,236

1,581,728

4,273,727

5,673,044

2.918.708 

808,998

4,562,644

581,765

1,335,310

178,579

225,155

4,849,973

360,852

32,249,309

1,872,430

462,990

7,829,853

1,729,986

1,412,079

10,765,998

678,545

662,679

504,500

2,055,503

7,384,382

589,691

254,863

2,014,777

1,983,640

938,555

3,093,110

271,488

46,974

12,306

145,586

4,280

19,474

803

39,303

88,740

105,739

156,210

13,299

7,913

21,362

237,845

402,232

3,312,081

26,997

82,731

210,848

319,501

3,312,081

167,192 167,192

39,720

52,953

5,733

277,841

599,230

277,841

599,230

478,768

26,644

100,709

10,149

6,204

7,541

62,708

98,043

9,691

11,664,821 11,664,821

242,931 242,931

16,688

1,076,869

267,415

16,688

1,076,869

74,059 193,356

5,828

86,202

85,861 85,861

16,496

11,247

11,124

199,631 199,631

13,212 12,857 355

37,848

1,340

20,021

382,876

24,926

147,647

163

1 Includes 27 noninsured banks of deposit (1 in Colorado, 16 in Georgia, 3 in Iowa, 3 in Michigan, and 4 in Texas) for which deposits are not available.

a Includes 6 trust companies not engaged in deposit banking: 1 each in California, Florida, Massachusetts, Missouri, Pennsylvania, and Wisconsin.

* Includes Puerto Rico and the Virgin Islands.

4 Includes Alaska, American Samoa, Guam, Hawaii, Marianas Islands, and the Panama Canal Zone.

6 Includes deposit data for the following noninsured branches of insured banks in the U. S.: 1 each in Guam and Marianas Islands; 4 in the Panama Canal Zone; and 7 in 

Puerto Rico. Data for these branches are not included in the figures for the States in which the parent banks are located.

Back figures: See the Annual Report for 1949, pp. 136-137, and earlier reports.

tofcON U M B E R , O F F IC E S , AND D EPO SITS OF O PE R A T IN G B A N K S

Digitized for FRASER 

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Federal Reserve Bank of St. Louis
Table 104. Assets and liabilities of all operating banks in the United States and possessions, 

June 30, 1950

Banks grouped according to insurance status and type of bank

Table 105. Assets and liabilities of all operating banks in the United States and possessions, 

December 30, 1950 

Banks grouped according to insurance status and type of bank

Table 106. Assets and liabilities of all operating banks in the United States and possessions, 

December 30, 1950 

Banks grouped by district and State

Table 107. Assets and liabilities of operating insured banks, December 30, 1950, June 30, 

1950, and December 31, 1949

A ssets an d Liabilities of Operating B a n k s

Digitized for FRASER 

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Federal Reserve Bank of St. Louis
The data in these tables relate to banks operating in the United 

States and possessions. Data for December 30, 1950, from the same 

tabulations for all operating banks in each State are given in the 

pamphlet published by the Corporation, “Report No. 34, Assets, 

Liabilities, and Capital Accounts, Capital and other Ratios, Commercial 

and Mutual Savings Banks, December 30, 1950.” State data for June 

30 and December 30, 1950, are published in the Federal Reserve

Bulletin, November 1950, pp. 1496-97, and May 1951, pp. 530-31.

Statements of assets and liabilities are submitted by insured commercial banks upon either a cash or an accrual basis, depending upon 

the bank’s method of bookkeeping. Assets reported represent aggregate 

book value, on the date of call, less valuation and premium reserves.

Assets and liabilities held in or administered by a savings, bond, 

insurance, real estate, foreign, or any other department of a bank, 

except a trust department, are consolidated with the respective assets 

and liabilities of the commercial department. “Deposits of individuals, 

partnerships, and corporations” include trust funds deposited by a trust 

department in a commercial or savings department. Other assets held 

in trust are not included in statements of assets and liabilities.

In the case of banks with one or more domestic branches, the assets 

and liabilities reported are consolidations of figures for the head office 

and all domestic branches. In the case of a bank with foreign branches, 

net amounts due from its own foreign branches are included in “ Other 

assets” , and net amounts due to its own foreign branches are included 

in “ Other liabilities” .

Since June 30, 1942, 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.

Beginning with June 30, 1948, individual loan items have been

reported gross instead of net of valuation reserves. Accordingly, reserves for losses on loans under the provisions of Mimeograph 6209 

issued by the Bureau of Internal Revenue in December 1947 and other 

loan valuation reserves have been shown separately.

Instalment loans are ordinarily reported net if the instalment payments are applied directly to the reduction of the loan. Such loans are 

reported gross if, under contract, the payments do not immediately 

reduce the unpaid balances of the loan but are assigned or pledged to 

assure repayment at maturity.

Total deposits shown in these tables are not the same as the deposits 

upon which assessments paid to the Fedei-al Deposit Insurance Corporation are based. The assessment base is slightly lower due to certain 

exclusions which are permitted and deductions which may be claimed.

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, and some of 

the items reported have been allocated to more detailed categories 

according to the distribution of asset and liability data for insured 

State banks not members of the Federal Reserve System or for other 

noninsured banks.

Sources o f d ata

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.

Noninsured banks: State banking authorities; Rand McNally Bankers

Directory; Polk’s Bankers Encyclopedia; and reports from individual 

banks.

ASSETS AND LIABILITIES OF OPERATING BANKS

Digitized for FRASER 

http://fraser.stlouisfed.org/ 

Federal Reserve Bank of St. Louis
BANKS GROUPED ACCORDING TO INSURANCE STATUS AND TYPE OF BANK 

(Amounts in thousands of dollars)

Table 104. A s s e t s a n d L i a b i l i t i e s o f A l l O p e r a t in g B a n k s in t h e U n it e d St a t e s a n d P o s s e s s io n s , J u n e 30, 1950

Asset, liability, or capital account item

All banks Commercial and stock savings banks and 

nondeposit trust companies Mutual savings banks

Total Insured Noninsured Total Insured1

Nonir

Banks

of

deposit

isured

N ondeposit 

trust 

companies2

Total Insured Noninsured

Total assets.............................................................. 180,036,910 170,364,182 9,672,728 157,785,135 154,700,864 2,893,454 190,817 22,251,775 15,663,318 6,588,457

Gash, balances with other^banks, and cash 

collection items—tota l.............................

Currency and coin.............................................

Reserve with Federal Reserve banks (member

34,254,197

1,970,576

15,864,291

9,198,311

297,049

61,345

6,862,625

33,564,852

1,878,756

15,864,291

8,666,557

284,373

50,708

6,820,167

689,345

91,820

33,422,706

1,881,025

15,863,320

8,741,073

43,804

61,345

6,832,139

32,905,533

1,814,757

15,863,320

8,339,957

37,694

50,708

6,799,097

468,444

65,053

48,729

1,215

831,491

89,551

971

457,238

253,245

30,486

659,319

63,999

971

326,600

246,679

21,070

172,172

25,552

Demand balances with banks in U. S.............

Other balances with banks in U. S..................

Balances with banks in foreign countries. . . . 

Cash items in process of collection..................

Securities—total.................................................

U. S. Government obligations, direct and

guaranteed......................................................

Obligations of States and subdivisions...........

Other bonds, notes, and debentures3..............

Corporate stocks................................................

531,754

12,676

10,637

42,458

354,868

6,110

10,637

31,776

46,248

1,266

130,638

6,566

9,416

91.315.286

77.609.287 

7,516,412 

5,655,676

533,911

85,136,707

72,553,872

7,336,698

4,918,436

327,701

6,178,579

5,055,415

179,714

737,240

206,210

77,325,997

66,039,937

7,431,379

3,485,373

369,308

75,597,738

64,609,100

7,262,026

3,408,633

317,979

1,632,099

1,369,592

154,631

70,472

37,404

96,160

61,245

14,722

6,268

13.925

13,989,289

11,569,350

85,033

2,170,303

164,603

9,538,969

7,944,772

74,672

1,509,803

9,722

4,450,320

3,624,578

10,361

660,500

154,881

Loans and discounts, net—total...................

Valuation reserves4................................................

Loans and discounts, gross—tota l................

Commercial and industrial loans.....................

Loans to farmers directly guaranteed by the

Commodity Credit Corporation..................

Other loans to farmers (excluding loans on

real estate).....................................................

Loans to brokers and dealers in securities... .

Other loans for carrying securities..................

Real estate loans:

On farm land....................................

On residential properties..............................

On other properties.......................................

Other loans to individuals................................

52,310,789

837,972

53,148,761

17,108,800

484,384

2,435,389

1,871,554

953,850

986.261

15,653^999

3,206,828

9,208,386

102,601

1,136,709

49,667,066

815,356

50,482,422

16,867,743

471.706

2,357,948

1,856,277

913,403

950.707 

13,881,966

2,906,192

9,083,943

102,473

1,090,064

2,643,723

22,616

2,666,339

241,057

12,678

77,441

15,277

40,447

35.554

1,772,033

300,636

124,443

128

46,645

45,107,916

592,379

45,700,295

17,067,999

484,384

2,434,107

1,871,554

951,804

942.546

9,507,232

2,069,273

9,139,009

102,601

1,129,786

44,379,303

590,080

44,969,383

16,841,978

471,706

2,356,895

1,856,277

912,762

920.373

9,343,589

2,027,721

9,049,763

102,473

1,085,846

700,897

2,228

703,125

224,850

12,678

77,006

15,252

33,779

20.319

149,445

39,589

88,325

128

41,754

27,716

71

27,787

1,171

206

25

5,263

1.854

14,198

1,963

921

7,202,873

245,593

7,448,466

40,801

1,282

2,046

43.715

6,146,767

1,137,555

69,377

5,287,763

225,276

5,513,039

25,765

1,053

641

30.334

4,538,377

878,471

34,180

1,915,110

20,317

1,935,427

15,036

229

1,405

13,381

1,608,390

259,084

35,197

All other loans (including overdrafts)............ 2,186 6,923 4,218 2,705

Miscellaneous assets—to ta l............................

Bank premises owned, furniture and fixtures.

Other real estate—direct and indirect............

All other miscellaneous assets..........................

2,156,638

1,198,372

133,238

825,028

1,995,557

1,152,039

115,443

728,075

161,081

46,333

17,795

96,953

1,928,516

1,092,747

120,940

714,829

1,818,290

1,071,120

106,642

640,528

92,014

16,286

5,748

69,980

18,212

5,341

8,550

4,321

228,122

105,625

12,298

110,199

177,267

80,919

8,801

87,547

50,855

24,706

3,497

22,652

FEDERAL DEPOSIT INSURANCE CORPORATION

Digitized for FRASER 

http://fraser.stlouisfed.org/ 

Federal Reserve Bank of St. Louis
Total liabilities and capital accounts.

Deposits of individuals, partnerships, and

corporations— total..........................

D em a n d ...............................................................

T im e ......................................................................

Certified and officers’ checks, cash letters

of credit and travelers’ checks outstanding, and amounts due to Federal

Reserve banks....................................

Government deposits—total...........................

U nited States G overnm ent— dem and................

U nited States G overnm ent— tim e.......................

States and subdivisions— dem and........................

States and subdivisions— tim e...............................

Interbank and postal savings deposits—

total......................................................

B anks in the U nited States— dem and. .

Banks in the U nited States— tim e ..........

B anks in foreign countries— dem and. . .

B anks in foreign countries— tim e ............

P ostal savings...................................................

Total deposits.

D em and............

T im e..................

Miscellaneous liabilities—total..............

Rediscounts and other borrow ed m on ey . 

All other m iscellaneous liabilities...............

Total liabilities

accounts)...........

(excluding capital

Capital accounts—total............

Preferred cap ital.............................

C om m on sto ck .................................

Surplus................................................

U ndivided profits and reserves.

180,036,910 170,364,182 9,672,728 157,785,135 154,700,864 2,893,454 190,817 22,251,775 15,663,318 6,588,457

137,465,079

81,924,036

55,541,043

129,802,565

80,715,147

49,087,418

7,662,514

1,208,889

6,453,625

117,535,532

81,911,916

35,623,616

115,687,067

80,704,528

34,982,539

1,779,946

1,139,923

640,023

68,519

67,465

1,054

19,929,547

12,120

19,917,427

14,115,498

10,619

14,104,879

5,814,049

1,501

5,812,548

2,176,864 2,154,068 22,796 2,172,598 2,149,878 22,581 139 4,266 4,190 76

13,454,611

3,687,557

187,229

8,120,732

1,459,093

13,085,762

3,596,643

183,018

7,946,204

1,359,897

368,849

90,914

4,211

174,528

99,196

13,445,543

3,685,629

186,960

8,118,606

1,454,348

13,077,827

3,595,216

182,749

7,944,081

1,355,781

367,674

90,407

4,211

174,489

98,567

42

6

9,068

1,928

269

2,126

4,745

7,935

1,427

269

2,123

4,116

1,133

501

36 3

629

11,458,387

9,739,722

218,477

1,313,127

177,568

9,493

11,077,976

9,579,247

31,317

1,280,965

177,568

8,879

380,411

160,475

187,160

32,162

11,457,982

9,739,693

218,101

1,313,127

177,568

9,493

11,077,581

9,579,218

30,951

1,280,965

177,568

8,879

380,401

160,475

187,150

32,162

405

29

376

395

29

366

10

10

614 614

164,554,941

106,962,038

57,592,903

156,120,371

105,272,274

50,848,097

8,434,570

1,689,764

6,744,806

144,611,655

106,9U ,569

37,670,086

141,992,353

105,253,886

36,738,467

2,550,602

1,620,037

930,565

68,700

67,646

1,054

19,943,286

20,469

19,922,817

14,128,018

18,388

14,109,630

5,815,268

2,081

5,813,187

1,828,703

46,135

1,782,568

1,698,870

36,778

1,662,092

129,833

9,357

120,476

1,708,734

46,117

1,662,617

1,630,100

36,778

1,593,322

54,430

6,771

47,659

24,204

2,568

21,636

119,969

18

119,951

68.770

68.770

51,199

18

51,181

166,383,644 157,819,241 8,564,403 146,320,389 143,622,453 2,605,032 92,904 20,063,255 14,196,788 5,866,467

13,653,266

113,824

3,516,147

6,603,861

3,419,434

12,544,941

92,069

3,396,440

6,072,132

2,984,300

1,108,325

21,755

119,707

531,729

435,134

11,464,746

108,278

3,516,147

5,126,679

2,713,642

11,078,411

86,523

3,396,440

4,985,564

2,609,884

288,422

21,605

82,743

108,465

75,609

97,913

150

36,964

32,650

28,149

2,188,520

5,546

’ i , 477,182 

705,792

1,466,530

5,546

‘ i , 086,568 

374,416

721,990

390,614

331,376

14,717 13,641 1,076 14,187 13,449 673 65 530 192 338N um ber of banks5.

1 Includes 6 trust com panies n ot engaged in deposit banking having total capital accounts of $16,035,000 and total assets of $17,444,000.

a A m ounts shown as deposits are special accounts and uninvested trust funds, with the latter classified as dem and deposits of individuals, partnerships, and corporations. 

* Includes obligations of U nited States G overnm ent corporations and agencies, not guaranteed b y the U nited States G overnm ent.

4 Reserves for losses on loans authorized b y the Bureau of Internal Revenue for incom e tax purposes and other valuation reserves.

6 Includes 28 noninsured banks of deposit for which asset and liability data are n ot available.

Back figures: See the A nnual R ep ort for 1949, pp. 140-141, and earlier reports.

ASSETS AND LIABILITIES OF OPERATING BANKS 231

Digitized for FRASER 

http://fraser.stlouisfed.org/ 

Federal Reserve Bank of St. Louis
Table 105. A s s e t s a n d L i a b i l i t i e s o f A l l O p e r a t in g B a n k s in t h e U n it e d S t a t e s a n d P o s s e s s io n s , D e c e m b e r 30, 1950

BANKS GROUPED ACCORDING TO INSURANCE STATUS AND TYPE OF BANK 

(Am ounts in thousands of dollars)

All banks Com m ercial and stock savings banks and 

nondeposit trust com panies M utual savings banks

A sset, liability, or capital account item

N oninsured

T otal Insured N oninsured T ota l Insured1 Banks

of

deposit

N ondeposit

trust

com ­

panies2

Total Insured N oninsured

Total assets.................................................. .. 192,240,673 182,698,421 9,542,252 169,855,778 166,791,755 2,858,091 205,932 22,384,895 15,906,666 6,478,229

Gash, balances with other banks, and cash 

collection items—total............................. 41,235,803 40,481,286 754,517 40,438,890 39,864,505 518,631 55,754 796,913 616,781 180,132

Currency and co in ...................................................... 2,343,064 2,245,253 97,811 2,232,510 2,164,712 66,299 1,499 110,554 80,541 30,013

Reserve w ith Federal Reserve banks (m em ber

17,459,016

11,379,362

17,459,016

10,794,765

17,458,039

10,889,938

17,458,039

10,442,367

977 977

D em and balances w ith banks in U . S ............... 584,597 394,151 53,420 489,424 352,398 137,026

O ther balances w ith banks in U . S ..................... 210,585 201,977 8,608 42,167 38,581 3,487 99 168,418 163,396 5,022

Balances w ith banks in foreign cou n tries. . . . 

Cash item s in process of collection.....................

159,009

9,684,767

142,293

9,637,982

16,716

46,785

159,009

9,657,227

142,293

9,618,513

16,716

37,978 736 27,540 19,469 8,071

Securities—total................................................. 88,004,762 82,212,902 5,791,860 74,795,406 73,197,950 1,493,543 103,913 13,209,356 9,014,952 4,194,404

U . S. G overnm ent obligations, direct and 

guaran teed................................................................ 73,188,217 68,534,185 4,654,032 62,320,423 61,046,880 1,208,876 64,667 10,867,794 7,487,305 3,380,489

Obligations of States and subdivisions..............

Other bonds, notes, and debentures3................

8,249,124

6,010,448

8,039,590

5,303,150

209,534

707,298

8,160,880

3,938,032

7,958,929

3,868,699

183,691

62,984

18,260

6,349

88,244

2,072,416

80,661

1,434,451

7,583

637,965

Corporate sto ck s......................................................... 556,973 335,977 220,996 376,071 323,442 37,992 14,637 180,902 12,535 168,367

Loans and discounts, net— tota l................... 60,711,146 57,895,004

901,944

58,796,948

2,816,142 52,574,396 51,808,684 737,048 28,664 8,136,750 6,086,320 2,050,430

Valuation reserves4......................................................... 927,047 25,103 675,251 672,986 2,222

739,270

43 251,796 228,958 22,838

Loans and discounts, gross—to ta l................ 61,638,193 2,841,245 53,249,647 52,481,670 28,707 8,388,546 6,315,278 2,073,268

Com m ercial and industrial loa n s ......................... 22,067,761 21,833,514 234,247 22,037,786 21,808,262 227,376 2,148 29,975 25,252 4,723

Loans to farmers directly guaranteed b y the 

C om m odity Credit Corporation 381,962

2,544,703

366,984

2,467,578

1,788,634

1,036,636

979,315

14,978

77,125

381,962 366,984

2,466,476

14,978

Other loans to farmers (excluding loans on 

real e sta te)................................................................ 2,543,371 76,723 172 1,332 1,102 230

Loans to brokers and dealers in securities. . . . 

Other loans for carrying securities......................

1,801,662

1,079,965

13,028

43,329

1,801,662

1,078,014

1,788,634

1,036,186

13,003 25

37,059 4,769 1,951 450 1,501

Real estate loans:

On farm la n d ........................................................... 1,012,194 32,879 968,341 946,188 20,611 1,542 43,853 33,127 10,726

On residential properties.................................... 17,484,931 15,527,738

3,145,352

10,108,373

90,033

1,452,791

1,957,193 10,431,169 10,250,306 165,102 15,761 7,053,762 5,277,432 1,776,330

On other properties............................................... 3,427,902 282,550 2,264,040 2,219,326 43,240 1,474 1,163,862 926,026 237,836

Other loans to individuals...................................... 10,243,043 134,670 10,155,523 10,061,154 93,534 835 87,520 47,219 40,301

L oans to banks 90,167

1,503,903

134 90,167 90,033

1,448,121

134

A ll other loans (including ov erd ra fts)............... 51,112 1,497,612 47,510 1,981 6,291 4,670 1,621

Miscellaneous assets—to ta l............................ 2,288,962

1,241,035

136,203

2,109,229

1,193,824

119,307

179,733 2,047,086 1,920,616 108,869 17,601 241,876 188,613 53,263

B ank premises ow ned, furniture and fixtures. 

Other real estate— direct and in d irect..............

47,211

16,896

1,130,904

123,970

1,108,923

110,084

16,633

5,866

5,348

8,020

110,131

12,233

84,901

9,223

25,230

3,010

All other miscellaneous assets............................... 911,724 796,098 115,626 792,212 701,609 86,370 4,233 119,512 94,489 25,023

232 FEDERAL DEPOSIT INSURANCE CORPORATION

Digitized for FRASER 

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Federal Reserve Bank of St. Louis
Total liabilities and capital accounts..............

Deposits of individuals, partnerships, and

corporations— total...................................

Demand..............................................................

Time...................................................................

Certified and officers’ checks, cash letters

of credit and travelers’ checks outstanding, and amounts due to Federal

Reserve banks.................. ...........................

Government deposits—total...........................

United States Government— demand.............

United States Government—time...................

States and subdivisions—demand..................

States and subdivisions—time........................

Interbank and postal savings deposits—

total...............................................................

Banks in the United States—demand............

Banks in the United States—time..................

Banks in foreign countries—demand..............

Banks in foreign countries—time..................

192,240,673 182,698,421 9,542,252 169,855,778 166,791,755 2,858,091 205,932 22,384,895 115,906,666 6,478,229

146,516,310

91,313,759

55,202,551

138,881,057

90,004,198

48,876,859

7,635,253

1,309,561

6,325,692

126,500,888

91,300,786

35,200,102

124,575,069

89,992,776

34,582,293

1,846,021

1,229,242

616,779

79,798

78,768

1,030

20,015,422

12,973

20,002,449

14,305,988

11,422

14,294,566

5,709,434

1,551

5,707,883

2,938,481 2,908,960 29,521 2,933,714 2,904,687 28,959 68 4,767 4,273 494

12,604,431

2,871,578

187,229

8,082,174

1,463,450

12,271,185

2,795,933

185,507

7,917,149

1,372,596

333,246

75,645

1,722

165,025

90,854

12,593,768

2,868,992

187,004

8,080,919

1,456,853

12,261,835

2,794,060

185,282

7,915,894

1,366,599

331,833

74,928

1,722

164,929

90,254

100

4

96

10,663

2,586

225

1,255

6,597

9,350

1,873

225

1,255

5,997

1,313

713

600

14,060,936

12,109,685

143,916

1,478,555

318,161

10,619

13,756,494

11,956,820

29,164

1,442,351

318,161

9,998

304,442

152,865

114,752

36,204

14,060,452

12,109,656

143,461

1,478,555

318,161

10,619

13,756,020

11,956,791

28,719

1,442,351

318,161

9,998

304,432

152,865

114,742

36,204

484

29

455

474

29

445

10

10

Postal savings .. ..................................... 621 621

Total deposits..............................................

Demand.......................................................

Time............................................................

Miscellaneous liabilities—total.....................

Rediscounts and other borrowed money........

All other miscellaneous liabilities....................

Total liabilities (excluding capital

accounts)..................................................

Capital accounts—total...................................

Preferred capital................................................

Common stock...................................................

Surplus................................................................

Undivided profits and reserves........................

176,120,158

118,794,282

57,325,926

167,817,696

117,025,411

50,792,285

8,302,462

1,768,821

6,538,641

156,088,822

118,772,622

37,316,200

153,497,611

117,006,559

86,491,052

2,511,245

1,687,127

824,118

79,966

78,936

1,080

20,031,336

21,610

20,009,726

14,320,085

18,852

14,301,233

5,711,251

2,758

5,708,498

2,204,650

94,607

2,110,043

2,086,850

87,072

1,999,778

117,800

7,535

110,265

2,098,321

94,587

2,003,734

2,013,282

87,072

1,926,210

58,357

6,003

52,354

26,682

1,512

25,170

106,329

20

106,309

73.568

73.568

32,761

20

32,741

178,324,808 169,904,546 8,420,262 158,187,143 155,510,893 2,569,602 106,648 20,137,665 14,393,653 5,744,012

13,915,865

109,448

3,560,801

6,854,212

3,391,404

12,793,875

87,693

3,435,833

6,323,990

2,946,359

1,121,990

21,755

124,968

530,222

445,045

11,668,635

104,005

3,560,801

5,337,457

2,666,372

11,280,862

82,250

3,435,833

5,200,481

2,562,298

288,489

21,605

87,754

103,582

75,548

99,284

150

37,214

33,394

28,526

2,247,230

5,443

’ i ,516,755 

725,032

1,513,013

5,443

1,123,509 

384,061

734,217

‘393,246

340,971

Number of banks5..................................................... 14,693 13,640 1,053 14,164 I 13,446 653 65 529 194 335

1 Includes 6 trust companies not engaged in deposit banking having total capital accounts of $16,178,000 and total assets of $17,589,000.

2 Amounts shown as deposits are special accounts and uninvested trust funds, with the latter classified as demand deposits of individuals, partnerships, and corporations.

3 Includes obligations of United States Government corporations and agencies, not guaranteed by the United States Government.

4 Reserve for losses on loans authorized by the Bureau of Internal Revenue for income tax purposes and other valuation reserves.

6 Includes 27 noninsured banks of deposit for which asset and liability data are not available. ^

Back figures: See the preceding table and the Annual Report for 1949, pp. 142-143, and earlier reports. go

ASSETS AND LIABILITIES OF OPERATING BANKS

Digitized for FRASER 

http://fraser.stlouisfed.org/ 

Federal Reserve Bank of St. Louis
BANKS GROUPED BY DISTRICT AND STATE 

(Amounts in thousands of dollars)

Table 106. A s s e t s a n d L i a b i l i t i e s o f A l l O p e r a t i n g B a n k s in t h e U n i t e d S t a t e s a n d P o s s e s s io n s , D e c e m b e r 30, 1950

Assets Liabilities and capital accounts

District and State Number

Cash and 

due from 

banks

U. S. Government 

obligations

Loans, discounts, and 

overdrafts

Miscellaneous

assets

Total Deposits

Miscellaneous

liabilities

Total

capital

accounts

of banks1 Other

securities Business

and

personal2

Government3Interbank4

United States and possessions ........................ 14,693 41,235,803 73,188,217 14,816,545 60,711,146 2,288,962 192,240,673 149,454,791 12,604,431 14,060,936 2,204,650 13,915,865

United States................. 14,650 41,086,365 72,894,335 14,740,716 60,386,227 2,209,253 191,316,896 148,854,511 12,392,474 14,049,206 2,183,626 13,837,079

Possessions...................... 43 149,438 293,882 75,829 324,919 79,709 923,777 600,280 211,957 11,730 21,024 78,786

FDIG District

District 1........................... 860 2,032,813 6,442,632 1,311,829 4,934,238 177,167 14,898,679 12,316,922 611,956 437,341 132,323 1,400,137

District 25.......................... 1,159 10,994,782 21,143,701 4,226,966 19,490,996 819,690 56,676,135 43,645,100 2,045,400 5,078,159 1,162,254 4,745,222

District 3 ........................... 1,640 4,453,401 8,746,823 2,304,148 6,117,324 258,710 21,880,406 17,655,376 1,283,796 1,049,336 136,753 1,755,145

District 4 ........................... 1,058 2,256,374 3,703,998 614,704 2,822,649 123,515 9,521,240 7,331,249 754,793 684,793 72,570 677,835

District 5........................... 1,022 1,702,827 2,181,789 466,608 1,897,294 74,925 6,323,443 4,687,306 681,075 507,712 41,706 405 644

District 6 ........................... 1,514 2,707,010 3,136,187 599,185 3,258,706

3,440,977

80,743 9,781,831 6,996,168 749,155 1,364,289 53,727 618,492

District 7........................... 1,488 2,824,466 5,781,531 932,566 110,342 13,089,882 10,743,582 1,035,393 489,998 71,525 749,384

District 8........................... 1,554 3,970,704 6,919,388 1,298,145 4,212,580 112,091 16,512,908 12,728,843 1,185,274 1,491,876 102,756 1,004,159

District 9 ........................... 1,110 1,106,321 2,053,746 403,370 1,487,699 37,407 5,088,543 3,899,489 463,604 386,070 29,038 310,342

District 10......................... 1,623 1,873,815 2,444,640 465,707 1,902,971 43,280 6,730,413 4,979,550 763,023 544,012 23,837 419,991

District 11......................... 1,135 3,353,372 3,353,350 602,963 3,345,987 140,969 10,796,641 7,680,996 1,151,270 1,305,353 64,097 594,925

District 12®........................ 530 3,959,918 7,280,432 1,590,354 7,799,725 310,123 20,940,552 16,790,210 1,879,692 721,997 314,064 1,234,589

State

Alabama............................ 225 362,967 447,883 118,182 430,749 15,187 1,374,968 1,046,628 144,713 79,971 10,097 93,559

Arizona.............................. 11 99,122 159,081 33,432 202,782 9,164 503,581 412,181 51,499 7,066 5,686 27,149

Arkansas............................ 232 290,765 336,881 72,931 203,066 5,328 908,971 694,823 82,039 70,231 2,006 59,872

California.......................... 202 2,739,683 5,277,673 1,156,529 5,808,630 210,724 15,193,239 12,162,266 1,321,872 534,140 281,622 893,339

Colorado............................ 154 353,925 515,739 49,844 373,382 7,443 1,300,333 1,037,111 89,280 89,987 6,014 77,941

Connecticut...................... 184 488,610 1,507,220 367,652 966,750 44,502 3,374,734 2,890,429 113,810 43,373 25,216 301,906

Delaware........................... 40 114,454 280,654 101,033 191,984 6,842 694,967 556,711 61,969 4,469 4,071 67,747

District of Columbia........ 19 302,364 524,678 50,822 347,853 20,446 1,246,163 1,057,830 29,545 74,737 7,542 76,509

Florida............................... 199 553,812 946,594 127,842 491,990 27,926 2,148,164 1,595,497 255,946 156,881 10,328 129,512

Georgia.............................. 397 537,950 517,475 98,035 749,780 23,631 1,926,871 1,405,354 166,542 207,650 17,772 129,553

Idaho................................. 43 96,785 178,457 13,404 176,983 3,911 469,540 372,726 62,184 8,075 2,379 24,176

Illinois................................ 891 3,390,627 6,004,034 1,086,466 3,400,936 97,220 13,979,283 10,767,038 917,963 1,352,854 98,961 842,467

Indiana.............................. 490 811,536 1,642,005 200,973 864,313 26,763 3,545,590 2,808,771 382,064 131,438 14,727 208,590

Iowa................................... 663 580,077 915,354 211,679 811,644 14,871 2,533,625 1,961,805 267,311 139,022 3,795 161,692

Kansas............................... 612 471,987 628,308 158,317 535,308 10,052 1,803,972 1,287,409 305,097 94,993 4,195 112,278

FEDERAL DEPOSIT INSURANCE CORPORATION

Digitized for FRASER 

http://fraser.stlouisfed.org/ 

Federal Reserve Bank of St. Louis
Kentucky.......................... 385 468,099 635,928 77,004 555,873 12,252 1,749,156 1,322,221 131,919 163,042 7,995 123,979

Louisiana........................... 165 552,875 713,838 170,404 488,397 24,214 1,949,728 1,303,541 299,843 232,053 12,768 101,523

Maine................................ 95 102,530 343,725 83,067 234,699 7,209 771,230 646,538 31,676 8,170 4,051 80,795

Maryland.......................... 173 424,876 1,126,866 144,108 535,109 34,134 2,265,093 1,810,425 153,058 109,217 14,353 178,040

Massachusetts.................. 371 1,174,601 3,720,520 674,037 2,915,300 100,142 8,584,600 6,954,358 374,199 362,990 84,962 808,091

442 1,309,449 2,692,379 474,525 1,681,495 53,905 6,211,753 5,154,555 470,982 203,717 47,154 335,345

Minnesota......................... 681 737,299

248,098

1,203,082 299,134 1,072,519 26,366 3,338,400 2,525,407 244,633 329,159 22,633 216,568

Mississippi........................ 201 269,837 122,549 224,775 8,181 873,440 639,827 113,874 63,210 3,509 53,020

Missouri............................ 600 1,359,339 1,531,704 306,673 1,673,607 38,795 4,910,118 3,430,395 342,661 810,950 29,830 296,282

Montana............................ 110 152,775 281,179 30,007 142,830 4,250 611,041 489,063 60,053 32,649 2,414 26,862

Nebraska........................... 418 392,317 563,298 98,622 403,858 8,874 1,466,969 1,109,368 97,495 168,167 4,024 87,915

Nevada.............................. 8 33,125 86,015

250,121

10,585 58,631 2,522 190,878 154,310 23,554 715 1,409 10,890

New Hampshire................ 109 72,530 65,225 236,025 4,668 628,569 525,726 22,914 7,309 1,825 70,795

New Jersey........................ 347 942,841 2,612,912 638,210 1,627,651 77,815 5,899,429 4,977,314 416,450 61,172 35,618 408,875

New Mexico...................... 51 119,587 129,044 12,446 118,276 3,344 382,697 286,579 60,620 13,653 893 20,952

New York.......................... 759 9,892,311 18,155,666 3,438,179 17,540,185 697,898 49,724,239 37,923,662 1,463,320 5,005,916 1,103,447 4,227,894

North Carolina................. 225 540,232 603,973 211,071 681,567 23,709 2,060,552 1,461,377 194,199 243,498 27,086 134,392

North Dakota................... 150 103,607 326,055 42,613 126,531 2,843 601,649 445,572 105,607 12,520 2,197 35,753

Ohio................................... 662 1,877,179 3,524,747 671,372 2,504,369 86,743 8,664,410 7,075,597 650,692 356,644 53,882 527,595

Oklahoma.......................... 386 573,165 623,732 145,986 512,721 14,901 1,870,505 1,322,859 235,064 178,267 8,611 125,704

Oregon............................... 71 322,304 536,903 131,914 523,040 22,064 1,536,225 1,257,995 137,341 40,972 10,417 89,500

Pennsylvania.................... 978 2,576,222 5,222,076 1,632,776 3,612,955

384,611

171,967 13,215,996 10,579,779 633,104 692,692 82,871 1,227,550

Rhode Island.................... 24 145,422 514,944 96,304 16,747 1,158,028 974,329 55,843 13,831 14,044 99,981

South Carolina................. 148 200,223 258,008 58,110 198,869 5,923 721,133 572,552 76,496 23,322 4,213 44,550

South Dakota................... 169 112,640 243,430 31,616 145,819 3,948 537,453 439,447 53,311 11,742 1,794 31,159

Tennessee.......................... 297 588,807 631,674 142,577 826,160 24,368 2,213,586 1,548,729 192,536 320,066 13,896 138,359

Texas................................. 908 2,581,788 2,351,387 386,681 2,536,532 104,247 7,960,635 5,678,695 739,308 1,052,581 44,750 445,301

Utah................................... 55 152,748 211,590 28,186 234,380 5,296 632,200 477,533 62,966 49,192 4,206 38,303

V ermont............................ 77 49,120 106,102 25,544 196,853 3,899 381,518 325,542 13,514 1,668 2,225 38,569

Virginia.............................. 313 533,922 755,253 104,049 767,853 27,689 2,188,766 1,636,505 188,019 190,253 15,090 158,899

Washington....................... 121 511,011 790,381 223,451 804,318 23,032 2,352,193 1,952,513 163,479 83,775 12,125 140,301

West Virginia.................... 180 254,757 435,220 46,544 291,398 11,614 1,039,533 792,560 113,476 43,766 4,286 85,445

Wisconsin.......................... 556 703,481 1,447,147 257,068 895,169 29,674 3,332,539 2,780,256 182,347 154,843 9,644 205,449

Wyoming........................... 53 82,421 113,563 12,938 77,702 2,010 288,634 222,803 36,087 12,598 993 16,153

Possession

Alaska................................

American Samoa..............

Guam and Marianas 

Islands7..........................

20

1

25,928

325

1,307

36,033

1,119

3,175 24,686

25

1,433

879

10

17,302

7,370

17,013

37,070

90,701

1,479

20,042

429,126

24,929

352,586

65,097

1,008

12,341

321,239

13,182

184,025

18,321

295

7,680

70,328

11,672

102,612

1,404

37

107

21

5,772

139

Hawaii...............................

Panama Canal Zone7.......

9 73,468

3,234

44,399

158,476

3,785

23,110 166,702

897

3,615

72

6,596

1,775

3

32,169

Puerto Rico7...................... 11 91,901 49,358 129,858 19,080 40,273

Virgin Islands................... 2 777 2,568 186 1,318 65 4,914 3,388 1,049 6 38 433

1 Includes 27 noninsured banks of deposit (1 in Colorado, 16 in Georgia, 3 in Iowa, 3 in Michigan, and 4 in Texas) for which asset, liability, and capital account data are 

not available.

a Demand and time deposits of individuals, partnerships, and corporations, certified and officers’ checks, cash letters of credit, etc.

3 Deposits of the United States Government and of States and political subdivisions.

4 Interbank deposits and postal savings deposits. ^

6 Includes Puerto Rico and the Virgin Islands. Oi

• Includes Alaska, American Samoa, Guam, Hawaii, Marianas Islands, and the Panama Canal Zone.

7 Includes asset, liability, and capital account data for the following noninsured branches of insured banks in the U. S.: 1 each in Guam and Marianas Islands; 4 in the Panama 

Canal Zone; and 7 in Puerto Rico. Data for these branches are not included in the figures for the States in which the parent banks are located.

Back figure*: See the Annual Report for 1949, pp. 144-145, and earlier reports.

ASSETS AND LIABILITIES OF OPERATING BANKS

Digitized for FRASER 

http://fraser.stlouisfed.org/ 

Federal Reserve Bank of St. Louis
Table 107. A s s e t s a n d L i a b i l i t i e s o f O p e r a t in g I n s u r e d B a n k s , D e c e m b e r 30, 1950, J u n e 30, 1950, a n d D e c e m b e r 31, 1949

(Amounts in thousands of dollars)

Assets

All insured banks Insured commercial banks1 Insured mutual savings banks

Dec. 30, 

1950

June 30, 

1950

Dec. 31, 

1949

Dec. 30, 

1950

June 30, 

1950

Dec. 31, 

1949

Dec. 30, 

1950

June 30, 

1950

Dec. 31, 

1949

182,698,421 170,364,182 170,378,776 166,791,755 154,700,864 155,318,889 15,906,666 15,663,318 15,059,887

Gash, balances with other banks, and cash collection items—total.................................................

Currency and coin...........................................................

Reserve with Federal Reserve banks (member banks) 

Demand balances with banks in the United States 

(except private banks and American branches of

foreign banks)................ . ............. .............................

Other balances with banks in the United States........

Balances with banks in foreign countries....................

40,481,286

2,245,253

17,459,016

10,794,765

201,977

142,293

9,637,982

33,564,852

1,878,756

15,864,291

8,666,557

284,373

50,708

6,820,167

35,904,132

2,067,673

16,428,505

9,806,738

254,070

41,713

7,305,433

39,864,505

2,164,712

17,458,039

10,442,367

38,581

142,293

9,618,513

32,905,533

1,814,757

15,863,320

8,339,957

37,694

50,708

6,799,097

35,222,106

1,987,821

16,427,544

9,438,657

37,906

41,713

7,288,465

616,781

80,541

977

352,398

163,396

........19,469

659,319

63,999

971

326,600

246,679

........21,070

682,026

79,852

961

368,081

216,164

........16,968

Obligations of the U. S. Government, direct and

guaranteed—total................................................

Direct:

Treasury certificates of indebtedness........................

United States non-marketable bonds2......................

Other bonds maturing in 5 years or less..................

Other bonds maturing in 5 to 10 years....................

Other bonds maturing in 10 to 20 years..................

Bonds maturing after 20 years..................................

Guaranteed obligations (FHA debentures)..................

68,534,185

4,151,784

1,939,816

16,864,878

2,645,898

22,925,694

7,798,588

7,486,490

4,708,884

12,153

72,553,872

3,872,642

6,143,956

11,705,636

2,196,250

28,027,996

8,185,163

7,457,636

4,956,627

7,966

73,679,157

3,703,170

12,560,194

5,883,832

2,291,309

27,895,168

7,825,481

8,532,235

4,980,649

7,119

61,046,880

4,121,692

1,936,936

16,774,383

2,330,550

22,594,053

7,737,024

2,986,472

2,554,454

11,316

64,609,100

3,849,123

6,116,160

11,598,631

1,907,947

27,509,284

8,107,085

2,995,272

2,518,077

7,521

65,847,210

3,691,818

12,488,302

5,811,425

2,009,216

27,278,311

7,691,960

4,461,014

2,408,949

6,215

7,487,305

30,092

2,880

90,495

315,348

331,641

61,564

4,500,018

2,154,430

837

7,944,772

23,519

27,796

107,005

288,303

518,712

78,078

4,462,364

2,438,550

445

7,831,947

11,352

71,892

72,407

282,093

616,857

133,521

4,071,221

2,571,700

904

Obligations of States and subdivisions........................

Other bonds, notes, and debentures3............................

Corporate stocks:

13,678,717

8,039,590

5,303,150

224,773

111,204

12,582,835

7,336,698

4,918,436

218,869

108,832

11,539,392

6,478,189

4,738,594

210,878

111,731

12,151,070

7,958,929

3,868,699

224,723

98,719

10,988,638

7,262,026

3,408,633

218,821

99,158

9,977,012

6,402,782

3,261,461

210,829

101,940

1,527,647

80,661

1,434,451

50

12,485

1,594,197

74,672

1,509,803

48

9,674

1,562,380

75,407

1,477,133

49

9,791

82,212,902 85,136,707 85,218,519 73,197,950 75,597,738 75,824,222 9,014,952 9,538,969 9,394,327

FEDERAL DEPOSIT INSURANCE CORPORATION

Digitized for FRASER 

http://fraser.stlouisfed.org/ 

Federal Reserve Bank of St. Louis
Loans and discounts, net—total........................... 57,895,004

901,944

58,796,948

21,833,514

366,984

49,667,066

815,356

50,482,422

16,867,743

471,706

47,312,970

766,442

48,079,412

16,959,727

975,832

51,808,684

672 QRfi

44 ^7Q zO 1QQ 6,086,320

228,958

6,315,278

25,252

5,287,763

225,276

5,513,039

25,765

4,814,304

218,408

5,032,712

20,527

Valuation reserves4..................................................... nftn 548,034 Loans and discounts, gross—total............................. i i aja 7Afl UIm jt/OU

52,481,670

21,808,262

366,984

Oi7U,UOU

44,969,383

16,841,978

471,706

Commercial and industrial loans (including open

market paper).............................................................

Loans to farmers directly guaranteed by the Commodity Credit Corporation.......................................

Other loans to farmers (excluding loans on real

estate)..........................................................................

Loans to brokers and dealers in securities.............

16,939,200

975,832

2,467,578

1,788,634

2,357,948

1,856,277

1,988,281

1,748,606

2,466,476

1,788,634

1 O^fi 1Rfi

2,356,895

1,856,277

Q19 7fi9

1,987,280

1,748,606

854,781

885,617 Q K1Q AQQ

1,102 1,053 1,001

Other loans for the purpose of purchasing or carrying 

securities................................................................. 1,036,636

979,315

15,527,738

3,145,352

10,108,373

90,033

913,403

950,707

13,881,966

2,906,192

9,083,943

102,473

1,090,064

855,388

914,354

12,576,193

2,895,101

8,039,973

97,913

1,028,044

A Kf\ 641

30,334

4,538,377

878,471

34,180

607

28,737

4,063,104

880,886

32,919

Real estate loans:

On farm land...........................................................

ijvOUjlOU

Q4.fi 188

«7l£ f 1 \>Lt

Q9H Q7Q

40U

OQ 1 0*7

On residential properties........................................ , xoo

10,250,306

2,219,326

10 061 154

V£t\J jO i O 00,16 I

5,277,432

926,026

47,219

On other properties....................................................

Other loans to individuals.....................................

*7 yO'xO jOO*/

2,027,721

Q 04.Q 7fi^

O,0lD,UOi7

2,014,215 ft fkfi7 CiKA

Loans to banks...................................................... ’ 90’,033

1,448,121

V , 1 Ud

102 473

o,UU i ,U04 

Q7 Q1 Q

All other loans (including overdrafts).......................... 1,452,791 1 OR^ R4.fi

v l ,<7lo 

x f\joo ,OTtu 1 A9Q 1 1 Q 1,U^0,110 ............4,670 ............4,218 ........... 4,931

Total loans and securities................................. 140,107,906 134,803,773 132,531,519 125,006,634 119 977 ft41 llo f^ i,o o o 11ft 7 ftftft 15,101,272 14,826,732 14,208,631

Bank premises, furniture and fixtures, and other 

real estate— tota l................................................... 1,313,131

996,946

196,878

23,123

96,184

1,267,482

970,642

181,397

24,052

91,391

1,225,098

954,554

170,195

21,690

78,659

1,219,007

914. 362

1 177 762 1 1 JX'7K Q/i 1 89,720

78,812

2,107

3,507

5,294

85,723

76,822

1,776

3,376

3,749

Bank premises............................................ QQ1 oon 877,732 1 fift A1 Q

V4,lx4

82,584 Furniture and fixtures......................... 194,561 o Q1 n

20,155

89,929

031 fOOV

179,290

20,545

86 097

Real estate owned other than bank premises.............

iDO,4li7

18,314

n a Qi n

UyOL (

2,968

6,255

Investments and other assets indirectly representing 

bank premises or other real estate............................ (4)t7lU

Miscellaneous assets— tota l..................................... 796,098

217,165

330,515

35,720

212,698

728,075

174,985

330,906

34,504

187,680

718,027

170,705

323,308

32,500

191 514

701,609

217,165

277,022

30 987

640,528

174,985 OQft QQ1

634,520

170,705 97A R9X

94,489

..........53,493

4,733

36,263

87,547

..........49,975

4,033

33,539

83,507

......... 48,683

3,244

31,580

Customers’ liability on acceptances outstanding........

Income accrued but not collected.........................

Prepaid expenses.....................................................

^OU,t/Ul

30 471

u < 4,040 OQ OKfi

Other assets............................................................. 176*435 1 1A1 1 KQ QQ/f ioi7,yo4

RATIOS

Percentages of total assets:

Cash and balances with other banks.......................... 22.2%

37.5

7.5

19.7%

42.6

7.4

29.1

1.2

7.4

21.1%

43.2

6.8

27.8

1.1

7.1

23.9%

36.6

7.3

31.1

1.1

6.8

91 22.7%

42.4 ft A

3.9%

47.1

O £

4.2%

50.7

4.5%

52.0

10.4

32.0 

1.1

9.4

U. S. Government obligations, direct and guaranteed 

Other securities........................................................... 41.7

7 1

Loans and discounts................................ 31.7 28.7

1 2

0*4 97 A

J7.D OQ O 10.2

33.8

1.1 Other assets................................................................... 1.1

7.0

u% A*1 i OO.Z 1 o

Total capital accounts................................................ i.2

1*1 A Q l.Z 

0,%7 Q y .oK 9.4

ASSETS AND LIABILITIES OF OPERATING BANKS 237

Digitized for FRASER 

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Federal Reserve Bank of St. Louis
Table 107. A s s e t s a n d L i a b i l i t i e s o f O p e r a t in g I n s u r e d B a n k s , D e c e m b e r 30, 1950, J u n e 30, 1950, a n d D e c e m b e r 31, 1949—Continued

(Amounts in thousands of dollars)

Liabilities and capital

Ail insured banks Insured commercial banks1 Insured mutual savings banks

Dec. 30, 

1950

June 30, 

1950

Dec. 31, 

1949

Dec. 30, 

1950

June 30, 

1950

Dec. 31, 

1949

Dec. 30, 

1950

June 30, 

1950

Dec. 31, 

1949

Total liabilities and capital accou n ts............................ 182,698,421 170,364,182 170,378,776 166,791,755 154,700,864 155,318,889 15,906,666 15,663,318 15,059,887

Deposits of individuals, partnerships, and corporations—tota l.......................................................

Demand............................................................................

138,881,057

90,004,198

48,876,859

129,802,565

80,715,147

49,087,418

130,172,268

82,138,607

48,033,661

124,575,069

89,992,776

34,582,293

115,687,067

80,704,528

34,982,539

116,590,911

82,128,729

34,462,182

14,305,988

11,422

14,294,566

14,115,498

10,619

14,104,879

13,581,357

9,878

13,571,479

Certified and officers’ checks, cash letters o f credit 

and travelers* checks outstanding, and 

am ounts due to Federal Reserve banks............

Government deposits—to ta l.........................................

United States Government— demand...........................

States and subdivisions—demand................................

States and subdivisions—time......................................

Interbank and postal savings deposits—tota l.........

Banks in the United States—demand..........................

Banks in the United States—time................................

Banks in foreign countries—demand............................

Banks in foreign countries—time..................................

2,908,960 2,154,068 2,341,659 2,904,687 2,149,878 2,338,307 4,273 4,190 3,352

12,271,185

2,795,933

185,507

7,917,149

1,372,596

13,085,762

3,596,643

183,018

7,946,204

1,359,897

11,896,122

3,056,587

178,121

7,425,023

1,236,391

12,261,835

2,794,060

185,282

7,915,894

1,366,599

13,077,827

3,595,216

182,749

7,944,081

1,355,781

11,889,661

3,054,607

177,863

7,423,797

1,233,394

9,350

1,873

225

1,255

5,997

7,935

1,427

269

2,123

4,116

6,461

1,980

258

1,226

2,997

13,756,494

11,956,820

29,164

1,442,851

318,161

9,998

11,077,976

9,579,247

31,317

1,280,965

177,568

8,879

12,375,807

10,884,885

29,539

1,315,270

139,398

6,715

13,756,020

11,956,791

28,719

1,442,351

318,161

9,998

11,077,581

9,579,218

30,951

1,280,965

177,568

8,879

12,375,430

10,884,850

29,197

1,315,270

139,398

6,715

474

29

445

395

29

366

377

35

342

Total deposits........................................................... 167,817,696

117,025,411

50,792,285

156,120,371

105,272,271

50,848,097

156,785,856

107,162,031

49,623,825

153,497,611

117,006,559

36,491,052

141,992,353

105,253,886

36,738,467

143,194,309

107,145,560

36,048,749

14,320,085

18,852

14,301,233

14,128,018

18,388

14,109,630

13,591,547

16,471

13,575,076

Miscellaneous liabilities—tota l..................... .. .........

Bills payable, rediscounts, and other liabilities for

2,086,850

87,072

248,705

72,107

314,630

504,433

859,903

1,698,870

36,778

193,670

67,587

293,068

426,520

681,247

1,524,711

14,154

199,790

70,563

249,130

393,113

597,961

2,013,282

87,072

248,705

65,313

312,810

493,784

805,598

1,630,100

36,778

193,670

56,421

291,287

414,886

637,058

1,475,881

14,154

199,790

66,742

247,437

383,378

564,380

73,568 68,770 48,830

Dividends declared but not yet payable......................

Income collected but not earned...................................

Other liabilities................................................................

6,794

1,820

10,649

54,305

11,166

1,781

11,634

44,189

3,821

1,693

9,735

33,581

Total liabilities (excluding capital accounts) 169,904,546

1

157,819,241 158,310,567 155,510,893 143,622,453 144,670,190 14,393,653 14,196,788 13,640,377

238 FEDERAL DEPOSIT INSURANCE CORPORATION

Digitized for FRASER 

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Federal Reserve Bank of St. Louis
Capital accounts—tota l.................................................

Capital stock, notes, and debentures...........................

Surplus.............................................................................

Undivided profits............................................................

Reserves...........................................................................

MEMORANDA 

Pledged assets and securities loaned.........................

Capital stock, notes, and debentures:

Par or face value—total.............................................

Common stock............................................................

12,793,875

3,523,526

6,323,990

2,415,317

531,042

12,544,941

3,488,509

6,072,132

2,420,682

563,618

12,068.209

3,400,822

5,863,498

2,248,909

554,980

11,280,862

3,518,083

5,200,481

2,093,304

468,994

11,078,411

3,482,963

4,985,564

2,108,111

501,773

10,648,699

3,395,489

4,803,154

1,954,348

495,708

1,513,013

5,443

1,123,509

322,013

62,048

1,466,530

5,546

1,086,568

312,571

61,845

1,419,510

5,333

1,060,344

294,561

59,272

15,464,146 15,732,931 14,659,992 15,464,146 15,732,931 14,659,992

3,525,906

3,436,556

27,391

61,959

3,490,937

3,397,164

27,105

66,668

3,403,769

3,305,479

29,261

69,029

3,518,806

3,436,556

20,291

61,959

3,483,687

3,397,164

19,855

66,668

3,396,239

3,305,479

21,731

69,029

7,100 7,250 7,530

Capital notes and debentures...................................

Preferred stock............................................................ 7,100 7,250 7,530

Retireable value of preferred stock.............................. 118,037 125,431 131,062 118,037 125,431 131,062

Number of banks.................................................................... 13,640 13,641 13,628 13,446 13,449 13,436 194 192 192

1 Includes stock savings banks and nondeposit trust companies.

2 United States savings bonds, Treasury bonds (investment series A-1965), and depositary bonds.

8 Includes obligations of United States Government corporations and agencies, not guaranteed by the United States Government.

4 Reserves for losses on loans authorized by the Bureau of Internal Revenue for income tax purposes and other valuation reserves. 

Back figures: See the Annual Reports for 1949, pp. 146-149, and for 1948, pp. 94-97.

ASSETS AND LIABILITIES OF OPERATING BANKS

Digitized for FRASER 

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Federal Reserve Bank of St. Louis
Table 108 

Table 109

Table 110,

to

E x a m i n e r s ’ E v a l u a t i o n o f I n s u r e d C o m m e r c ia l B a n k s

Examiners’ appraisal of assets, liabilities, and capital of insured commercial banks 

examined in 1941-1950

Examiners’ appraisal of assets, liabilities, and capital of insured commercial banks 

examined in 1950

Banks grouped according to amount of deposits

Examiners’ appraisal of assets, liabilities, and capital of insured commercial banks 

examined in 1950

Banks grouped by Federal Deposit Insurance Corporation district and State

FEDERAL DEPOSIT INSURANCE CORPORATION

Digitized for FRASER 

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Federal Reserve Bank of St. Louis
The tables in this section present a summary of the evaluation of 

bank assets and liabilities made by examiners of the Federal supervisory 

agencies. Since bank examinations are made at various dates during 

the year, these tables differ from those in the previous sections, which 

are based on reports submitted by the banks for specified dates. These 

tables have been prepared from reports of examination available during 

the year and do not cover precisely the banks examined in that year. 

The figures for 1950 include 13,335 insured commercial banks operating 

at the close of the year and 39 banks which ceased operations or were 

taken over by others during the year. Figures for 108 insured banks 

operating at the close of the year were not included in the tabulations: 

6 because they were not engaged in deposit banking, and 102 because 

reports of examination were, for various reasons, not available for 

tabulation. For 469 banks the figures are derived from reports of 

examination made in the last six months of 1949.

Evaluation o f assets

Book value of assets is the net value, after deduction of valuation 

and premium reserves, at which the assets are carried on the books 

of the banks at the time of examination.

Assets not on the books represent the determinable sound value 

of assets which are not included in the bank’s statement of assets or 

are carried at nominal values.

Examiners’ deductions from total assets represent the difference 

between the appraised value and book value of assets shown on the 

books.

Examiners’ deductions (net) from total assets in Table 110 is

the difference between examiners1 deductions and the determinable 

sound values of assets not shown on the books.

Appraised value of total assets represents the value of all assets as 

determined by examiners and is segregated into two groups: (1) not 

criticized, which represents the appraised value of assets regarded as 

suitable for bank investment; and (2) substandard, which represents the 

appraised value of assets believed by the examiners to involve a substantial degree of risk, or to be otherwise undesirable for bank investment. For a description of the procedure followed in examiners’ evaluation of assets, see the following Annual Reports of the Corporation; 1938, 

pages 61-78; and 1949, pages 10-11. Appraised value of other securities 

and of loans and discounts does not include assets not shown on the 

books which are included in the appraised value of fixed and miscellaneous assets.

Evaluation o f liabilities and capital

Adjusted liabilities include all liabilities shown on the books and 

such others as have been determined by the examiners.

Book value o f capital accounts refers to the net worth or equity 

of the stockholders (including holders of capital notes and debentures) 

shown on the books at the time of examination.

Adjusted capital accounts equal book value of total capital accounts plus the value of assets not shown on the books, less examiners’ 

deductions from total assets, and less liabilities not shown on the books. 

The term “adjusted capital accounts” corresponds to the term “net 

sound capital” used in the Annual Reports of the Corporation for the 

years 1939-1943.

e x a m i n e r s ’ e v a l u a t io n of insured co m m er c ia l banks 241

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Federal Reserve Bank of St. Louis
Table 108. E x a m in e r s ’ A p p r a is a l o f A s s e ts , L ia b ilit ie s , and C a p it a l o f I n s u r e d C o m m e r cia l B a n k s E x a m in ed in 1941-1950

(Amounts in thousands of dollars)

Asset, liability, or 

capital account item 1941 1942 1943 1944 1945 1946 1947 1948 1949 1950

Total assets— book value............ 71,697,320 80,449,956 102,021,738 118,843,675 138,032,336 147,828,793 144,531,287 147,679,494 149,150,139 154,799,121

Assets not on the books.............. 19,851 20,089 26,346 20,897 20,283 16,017 15,156 16,056 13,252 10,464

Examiners’ deductions................ 174,037 145,741 97,144 54,193 29,354 25,095 35,596 40,775 34,009 26,699

Appraised value............................ 71,543,134 80,324,304 101,950,940 118,810,379 138,023,265 147,819,715 144,510,847 147,654,775 149,129,382 154,782,886

Not criticized............................. 69,512,512 78,610,078 100,690,843 117,984,985 137,404,382 147,293,671 143,814,520 146,866,522 148,367,106 154,093,855

Substandard............................... 2,030,622 1,714,226 1,260,097 825,394 618,883 526,044 696,327 788,253 762,276 689,031

Gash and due from banks.......... 24,107,119 24,618,882 25,342,868 26,036,187 29,215,660 0) 31,790,001 33,487,233 33,021,350 32,894,750

U. S. Government obligations—

book value............................... (a) 26,799,729 50,067,210 65,089,147 78,783,904 (x) 69,134,182 63,438,109 63,466,989 63,481,873

Appraised value3.......................... (?) 26,807,855 50,073,639 65,096,303 78,794,810 0) (4) (4) (4) (!)

Other securities—book v a lu e .. . 25,759,640 6,682,798 6,055,350 5,805,695 6,215,580 (') 7,890,527 8,435,320 9,047,781 10,642,848

Appraised value........................... 25,722,984 6,651,951 6,040,897 5,800,937 6,213,954

5,954,653 0) 7,888,268 8,432,640 9,045,770 10,641,719

Not criticized............................. 24,970,412 6,034,558 5,578,743 5,499,037 0) 7,657,623 8,221,268

211,372

8,845,376 10,439,625

Substandard............................... 752,572 617,393 462,154 301,900 259,301 0) 230,645 200,394 202,094

Loans and discounts—book

value......................................... 19,544,145 20,136,352 18,290,697 19,562,561 21,436,642 0) 33,100,496 39,416,074 40,778,572 44,934,475

Appraised value........................... 19,467,422 20,071,927 18,251,118 19,539,481 21,424,482 (x) 33,075,357 39,385,909 40,752,947 44,913,063

Not criticized............................. 18,618,309 19,303,969 17,710,001 19,180,144 21,161,567 0) 32,653,390

421,967

38,852,883 40,238,045 44,467,867

Substandard............................... 849,113 767,958 541,117 359,337 262,915 0) 533,026 514,902 445,196

Fixed and miscellaneous assets— book value.................... 2,286,416 2,212,195 2,265,613 2,350,085 2,380,550 « 2,616,081 2,902,758 2,835,447 2,845,175

Appraised value........................... 2,245,609 2,173,689 2,242,418 2,337,471 2,374,359 (x) 2,623,039 2,910,884 2,842,326 2,851,481

Not criticized............................. 1,816,672 1,844,814 1,985,592 2,173,314 2,277,692 (0 2,579,324 2,867,029 2,795,346 2,809,740

Substandard............................... 428,937 328,875 256,826 164,157 96,667 0) 43,715 43,855 46,980 41,741

Totai liabilities—book value---- 65,012,512 73,529,826 94,882,516 111.242.503 129,849,891 139,081,529 135,120,704 137,795,798 138,712,491 143,936,354

Total deposits............................... 64,218,740 72,755,007 94,087,113

795,403

110;i77;295 128,263,849 137,221,546 133,169,657 135,666,637 136,424,272 141,411,203

Other liabilities—book value.. . . 793,772 774,819 1,065,208 1,586,042 1,859,983 1,951,047 2,129,161 2,288,219 2,525,151

Liabilities not on the books........ 6,084 7,362 4,491 7,563 3,731 4,719 2,635 4,083 4,614 3,557

Adjusted total liabilities............. 65,018,596 73,537,188 94,887,007 111,250,066 129,853,622 139,086,248 135,123,339 137,799,881 138,717,105 143,939,911

242 FEDERAL DEPOSIT INSURANCE CORPORATION

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Federal Reserve Bank of St. Louis
Total capital accounts—book

value.........................................

Assets not on the books..............

Examiners’ deductions from total

assets.........................................

Liabilities not on the books........

Adjusted capital accounts..........

6,684,808

19,851

174,037

6,084

6,524,538

6,920,130

20,089

145,741

7,362

6,787,116

7,139,222

26,346

97,144

4,491

7,063,933

7,601,172

20,897

54,193

7,563

7,560,313

8,182,445

20,283

29,354

3,731

8,169,643

8,747,264

16,017

25,095

4,719

8,733,467

9,410,583

15,156

35,596

2,635

9,387,508

9,883,696

16,056

40,775

4,083

9,854,894

10,437,648

13,252

34,009

4,614

10,412,277

10,862,767

10,464

26,699

3,557

10,842,975

Adjusted capital accounts per

$100 of—

Book capital.................................

Appraised value of total assets..

$97.60

9.12

$98.08

8.45

$98.95

6.93

$99.46

6.36

$99.84

5.92

$99.84

5.91

$99.75

6.50

$99.71

6.67

$99.76

6.98

$99.82

7.01

Substandard assets per $100 of—

Appraised value of total assets. . 

Adjusted capital accounts...........

2.84

31.12

2.13

25.26

1.24

17.84

.69

10.92

.45

7.58

.36

6.02

.48

7.42

.53

8.00

.51

7.32

.45

6.35

Substandard loans and discounts per $100 of—

Appraised value of loans and 

discounts................................... 4.36 3.83 2.96 1.84 1.23 (0 1.28 1.35 1.26 .99

Number of banks............................. 13,308 13,303 13,207 12,983 12,473 12,493 12,747 12,927 13,266 13,374

1 Not available separately.

2 U. S. Government obligations not available separately; included under other securities.

3 Appraised value is in excess of book value due to the excess of redemption value of U. S. savings bonds not shown on the books over examiners’ deductions of unamortized 

premiums on U. S. Government obligations purchased above par.

4 Appraised value not available. Redemption value of U. S. savings bonds not shown on the books included under fixed and miscellaneous assets, while examiners’ deductions 

of unamortized premium on U. S. Government obligations purchased above par included under other securities.

EXAMINERS EVALUATION OF INSURED COMMERCIAL BANKS

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Federal Reserve Bank of St. Louis
Table 109. E x a m in e r s ’ A p p r a is a l o f A sse ts, L ia b ilit ie s , and C a p it a l o f In s u r e d C o m m e r cia l B a n k s E x a m in ed in 1950

BANKS GROUPED ACCORDING TO AMOUNT OF DEPOSITS

Asset, liability, or capital account item All

banks

Banks with deposits of—

$500,000 

or less

$500,000

to

$1,000,000

$1,000,000

to

$2,000,000

$2,000,000

to

$5,000,000

$5,000,000

to

$10,000,000

$10,000,000

to

$50,000,000

$50,000,000

to

$100,000,000

More than 

$100,000,000

uAmounts in thesusands of dollars)

Total assets—book value.................................. 154,799,121 264,039 1,637,217 5,257,211 14,139,372 13,358,185 26,708,840 11,669,026 81,765,231

Assets not on the books.................................... 10,464 55 486 1,582 2,653 1,686 1,976 961 1,065

Examiners’ deductions...................................... 26,699 410 1,479 3,787 6,491 4,336 5,913 1,797 2,486

Appraised value................................................. 154,782,886 263,684 1,636,224 5,255,006 14,135,534 13,355,535 26,704,903 11,668,190 81,763,810

Not criticized................................................... 154,093,855 258,192 1,612,013 5,195,244 14,013,017 13,265,282 26,574,842 11,625,588 81,549,677

Substandard..................................................... 689,031 5,492 24,211 59,762 122,517 90,253 130,061 42,602 214,133

Cash and due from banks............................... 32,894,750 69,544 362,977 1,118,808 2,873,258 2,610,674 5,245,265 2,464,915 18,149,309

U. S. Governm ent obligations—book value 63,481,873 86,529 635,156 2,144,643 5,868,741 5,717,309 11,833,480 5,080,507 32,115,508

Other securities—book value.......................... 10,642,848 9,650 82,457 314,739 1,065,127 1,119,137 2,089,842 753,352 5,208,544

Appraised value................................................. 10,641,719 9,645 82,403 314,651 1,064,820 1,119,015 2,089,491 753,305 5,208,389

Not criticized................................................... 10,439,625 9,123 80,777 309,201 1,045,645 1,098,183 2,048,497 737,188 5,111,011

Substandard..................................................... 202,094 522 1,626 5,450 19,175 20,832 40,994 16,117 97,378

Loans and discounts—book value................. 44,934,475 95,684 543,124 1,633,543 4,196,813 3,766,147 7,181,913 3,187,609 24,329,642

Appraised value................................................. 44,913,063 95,315 541,805 1,630,105 4,191,339 3,762,415 7,177,340 3,186,374 24,328,370

Not criticized................................................... 44,467,867 90,466 519,555 1,576,962 4,091,076 3,696,372 7,098,765 3,164,935 24,229,736

Substandard..................................................... 445,196 4,849 22,250 53,148 100,263 66,043 78,575 21,439 98,634

Fixed and miscellaneous assets—book value 2,845,175 2,632 13,503 45,478 135,433 144,918 358,340 182,643 1,962,228

Appraised value................................................. 2,851,481 2,651 13,883 46,799 137,376 146,122 359,327 183,089 1,962,234

Not criticized................................................... 2,809,740 2,530 13,548 45,630 134,297 142,744 348,835 178,043 1,944,113

Substandard..................................................... 41,741 121 335 1,169 3,079 3,378 10,492 5,046 18,121

Total liabilities—book value........................... 143,936,354 232,637 1,484,290 4,827,502 13,086,412 12,424,259 24,960,650 10,927,564 75,993,040

Total deposits....................................................

Other liabilities—book value............................

141,411,203 231,744 1,478,932 4,813,570 13,039,732 12,353,928 24,766,605 10,797,355 73,929,337

2,525,151 893 5,358 13,932 46,680 70,331 194,045 130,209 2,063,703

Liabilities not on the books.............................. 3,557 43 175 308 663 255 629 100 1,384

Adjusted total liabilities................................... 143,939,911 232,680 1,484,465 4,827,810 13,087,075 12,424,514 24,961,279 10,927,664 75,994,424

Total capital accounts—book value............. 10,862,767 31,402 152,927 429,709 1,052,960 933,926 1,748,190 741,462 5,772,191

Assets not on the books.................................... 10,464 55 486 1,582 2,653 1,686 1,976 961 1,065

Examiners’ deductions from total assets........ 26,699 410 1,479 3,787 6,491 4,336 5,913 1,797 2,486

Liabilities not on the books.............................. 3,557 43 175 308 663 255 629 100 1,384

Adjusted capital accounts................................ 10,842,975 31,004 151,759 427,196 1,048,459 931,021 1,743,624 740,526 5,769,386

244 FEDERAL deposit in su r a n c e CORPORATION

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Federal Reserve Bank of St. Louis
Adjusted capital accounts per $100 of—

Book capital.................................................

Appraised value of total assets..................

Substandard assets per $100 of—

Appraised value of total assets..................

Adjusted capital accounts..........................

Substandard loans and discounts per

$100 of—

Appraised value of loans and discounts. 

Number of banks.........................................

$99.82 $98.73

7.01 11.76

.45 2.08

6.35 17.71

.99 5.09

13,374 624

$99.24

9.27

1.48

15.95

4.11

1,958

Back figures: See the Annual Report for 1949, pp. 154-155, and earlier reports.

$99.42 $99.57 $99.69 $99.74 $99.87 $99.95

8.13 7.42 6.97 6.53 6.35 7.06

1.14 .87 .68 .49 .37 .26

13.99 11.69 9.69 7.46 5.75 3.71

3.26 2.39 1.76 1.09 .67 .41

3,286 4,131 1,769 1,245 177 184

EXAMINERS’ EVALUATION OF INSURED COMMERCIAL BANKS 245

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Federal Reserve Bank of St. Louis
Table 110. E x a m in ers* A p p r a is a l o f A sse ts, L ia b ilit ie s , and C a p it a l o f I n s u r e d C o m m e r cia l B a n k s E x a m in e d in 1950

BANKS GROUPED BY FEDERAL DEPOSIT INSURANCE CORPORATION DISTRICT AND STATE

(Amounts in thousands of dollars)

FDIC district 

and State

Number

of

banks

Total assets Total liabilities Total capital 

accounts Adjusted 

capital 

accounts 

per $100 of 

appraised 

value of 

total 

assets

Substandard assets 

per $100 of—

Book

value

JDxaminers'

deductions

(net)1

Appraised value

Book

value

Adjusted

value

uook

value

Adjusted

value

Appraised

total

assets

Adjusted

capitai

accounts

Total Not

criticized

Substandard

United States and

possessions........ 13,374 154,799,121 16,235 154,782,886 154,093,855 689,031 143,936,354 143,939,911 10,862,767 10,842,975 7.01 .45 6.35

United States___ 13,362 154,603,775 15,549 154,588,226 153,905,909 682,317 143,757,741 143,761,270 10,846,034 10,826,956 7.00 .44 6.30

Possessions.......... 12 195,346 686 194,660 187,946 6,714 178,613 178,641 16,733 16,019 8.23 3.45 41.91

FDIC District

District 1............. 462 7,525,266 1,418 7,523,848 7,494,872 28,976 6,912,108 6,912,115 613,158 611,733 8.13 .39 4.74

District 22............ 987 39,398,702 4,021 39,394,681 39,198,447 196,234 36,154,833 36,155,424 3,243,869 3,239,257 8.22 .50 6.06

District 8 ............. 1,592 18,825,759 1,084 18,824,675 18,739,962 84,713 17,256,186 17,257,659 1,569,573 1,567,016 8.32 .45 5.41

District 4 ............. 1,025 8,293,704 2,024 8,291,680 8,234,595 57,085 7,704,605 7,704,722 589,099 586,958 7.08 .69 9.73

District 5............. 943 5,825,846 1,141 5,824,705 5,780,628 44,077 5,436,474 5,436,566 389,372 388,139 6.66 .76 11.36

District 6............. 1,437 8,866,495 1,359 8,865,136 8,816,748 48,388 8,291,659 8,291,828 574,836 573,308 6.47 .55 8.44

District 7............. 1,430 12,025,567 78 12,025,489 11,991,648 33,841 11,321,524 11,321,670 704,043 703,819 5.85 .28 4.81

District 8............. 1,477 15,152,474 780 15,153,254 15,108,968 44,286 14,225,536 14,225,652 926,938 927,602 6.12 .29 4.77

District 9 ............. 1,078 4,577,879 404 4,578,283 4,561,024 17,259 4,305,947 4,305,989 271,932 272,294 5.95 .38 6.34

District 10........... 1,400 6,055,466 1,166 6,054,300 6,024,528 29,772 5,670,553 5,671,271 384,913 383,029 6.33 .49 7.77

District 11........... 1,066 9,482,799 3,552 9,479,247 9,427,442 51,805 8,935,800 8,935,859 546,999 543,388 5.73 .55 9.53

District 123.......... 477 18,769,164 1,576 18,767,588 18,714,993 52,595 17,721,129 17,721,156 1,048,035 1,046,432 5.58 .28 5.03

State

Alabama.............. 225 1,294,222 482 1,293,740 1,284,440 9,300 1,202,848 1,202,868 91,374 90,872 7.02 .72 10.23

Arizona................ 9 469,471 550 468,921 462,876 6,045 446,063 446,064 23,408 22,857 4.87 1.29 26.45

Arkansas.............. 222 814,743 142 814,601 810,694 3,907 757,935 757,947 56,808 56,654 6.95 .48 6.90

California............ 187 14,196,103 1,028 14,195,075 14,164,197 30,878 13,413,308 13,413,323 782,795 781,752 5.51 .22 3.95

Colorado.............. 142 1,225,932 124 1,225,808 1,220,001 5,807 1,151,895 1,152,008 74,037 73,800 6.02 .47 7.87

Connecticut......... 96 1,563,630 151 1,563,479 1,557,957 5,522 1,443,840 1,443,841 119,790 119,638 7.65 .35 4.62

Delaware............. 36 552,312 268 552,044 543,392 8,652 500>706 500,766 51,606 51,278 9.29 1.57 16.87

Dist. of Columbia 19 1,161,106 84 1,161,022 1,157,996 3,026 1,088,657 1,088,657 72,449 72,365 6.23 .26 4.18

Florida................. 190 1,985,813 280 1,985,533 1,972,190 13,343 1,865,647 1,865,659 120,166 119,874 6.04 .67 11.13

Georgia................ 331 1,746,184 299 1,745,885 1,734,547 11,338 1,622,330 1,622,371 123,854 123,514 7.07 .65 9.18

FEDERAL DEPOSIT INSURANCE CORPORATION

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Federal Reserve Bank of St. Louis
Idaho.................... 41 436,893 1 436,894 435,977 917 415,016 415,018 21,877 21,876 5.01 .21 4.19 Illinois.................. 872 12,833,107 63 12,833,044 12,805,420 27,624 12,056,146 12,056,193 776,961 776,851 6.05 .22 3.56 Indiana................ 474 3,276,387 73 3,276,460 3,265,020 11,440 3,079,064 3,079,162 197,323 197,298 6.02 .35 5.80 Iowa..................... 605 2,319,367 843 2,320,210 2,303,548 16,662 2,169,390 2,169,459 149,977 150,751 6.50 .72 11.05 Kansas................. 464 1,547,468 325 1,547,143 1,538,000 9,143 1,453,644 1,453,870 93,824 93,273 6.03 .59 9.80

Kentucky............ 362 1,600,774 358 1,600,416 1,591,971 8,445 1,481,920 1,481,967 118,854 118,449 7.40 .53 7.13 Louisiana............. 160 1,845,133 227 1,844,906 1,835,059 9,847 1,744,881 1,744,903 100,252 100,003 5.42 .53 9.85 Maine...................

Maryland

54 446,563 230 446,333 443,632 2,701 406,900 406,902 39,663 39,431 8.83 .61 6.85

............ 160 1,596,331 154 1,596,177 1,587,326 8,851 1,487,308 1,487,322 109,023 108,855 6.82 .55 8.13 Massachusetts.. . 173 4,318,410 158 4,318,252 4,310,418 7,834 3,966,833 3,966,835 351,577 351,417 8.14 .18 2.23

Michigan............. 414 5,593,346 383 5,592,963 5,580,190 12,773 5,284,169 5,284,188 309,177 308,775 5.52 .23 4.14 Minnesota........... 656 3,005,918 316 3,006,234 2,995,911 10,323 2,815,306 2,815,331 190,612 190,903 6.35 .34 5.41 Mississippi........... 197 799,627 80 799,547 789,451 10,096 745,649 745,668 53,978 53,879 6.74 1.26 18.74 Missouri............... 565 4,430,734 492 4,430,242 4,407,924 22,318 4,162,316 4,162,384 268,418 267,858 6.05 .50 8.33 Montana.............. 111 584,926 67 584,869 581,387 3,482 558,934 558,937 25,992 25,932 4.43 .60 13.43

Nebraska............. 366 1,313,207 24 1,313,183 1,308,650 4,533 1,232,275 1,232,422 80,932 80,761 6.15 .35 5.61 Nevada................ 8 183,893 14 183,879 182,819 1,060 173,427 173,428 10,466 10,451 5.68 .58 10.14 New Hampshire.. 58 236,604 268 236,336 233,794 2,542 212,385 212,385 24,219 23,951 10.13 1.08 10.61 New Jersey.......... 320 4,901,057 699 4,900,358 4,855,212 45,146 4,574,540 4,574,726 326,517 325,632 6.65 .92 13.86 New Mexico........ 50 335,356 298 335,058 332,224 2,834 317,311 317,313 18,045 17,745 5.30 .85 15.97

New York............ 624 33,798,127 2,411 33,795,716 33,658,889 136,827 30,946,795 30,947,112 2,851,332 2,848,604 8.43 .40 4.80 North Carolina. . 226 1,799,121 450 1,798,671 1,781,998 16,673 1,671,294 1,671,354 127,827 127,317 7.08 .93 13.10 North D akota... 145 475,142 44 475,186 473,957 1,229 449,216 449,219 25,926 25,967 5.46 .26 4.73 Ohio...................... 641 7,747,328 447 7,746,881 7,727,138 19,743 7,266,474 7,266,511 480,854 480,370 6.20 .25 4.11 Oklahoma............ 375 1,708,810 598 1,708,212 1,699,048 9,164 1,588,239 1,588,446 120,571 119,766 7.01 .54 7.65

Oregon................. 68 1,375,955 54 1,375,901 1,368,409 7,492 1,293,994 1,293,996 81,961 81,905 5.95 .54 9.15 Pennsylvania. . . . 951 11,078,431 637 11,077,794 11,012,824 64,970 9,989,712 9,991,148 1,088,719 1,086,646 9.81 .59 5.98 Rhode Island. . . . 12 689,237 40 689,197 687,103 2,094 639,288 639,288 49,949 49,909 7.24 .30 4.20 South Carolina... 133 683,612 71 683,541 680,293 3,248 639,982 639,995 43,630 43,546 6.37 .48 7.46 South Dakota.... 166 511,893 101 511,994 509,769 2,225 482,491 482,502 29,402 29,492 5.76 .43 7.54

Tennessee............ 288 2,020,244 367 2,019,877 2,006,159 13,718 1,889,488 1,889,530 130,756 130,347 6.45 .68 10.52 Texas.................... 847 6,832,839 2,477 6,830,362 6,797,283 33,079 6,427,545 6,427,579 405,294 402,783 5.90 .48 8.21 Utah..................... 55 591,962 195 591,767 588,230 3,537 555,294 555,296 36,668 36,471 6.16 .60 9.70 Vermont.............. 69 270,822 571 270,251 261,968 8,283 242,862 242,864 27,960 27,387 10.13 3.06 30.24 Virginia................ 311 2,039,935 890 2,039,045 2,021,730 17,315 1,885,992 1,886,007 153,943 153,038 7.51 .85 11.31

Washington......... 113 1,936,218 243 1,935,975 1,928,369 7,606 1,824,269 1,824,274 111,949 111,701 5.77 .39 6.81 West Virginia.... 176 1,013,599 375 1,013,224 1,005,252 7,972 931,372 931,387 82,227 81,837 8.08 .79 9.74 Wisconsin

Wyoming

............ 542 3,155,834 232 3,156,066 3,146,438 9,628 2,958,291 2,958,320 197,543 197,746 6.27 .31 4.87

............. 53 260,049 95 259,954 258,829 1,125 244,500 244,525 15,549 15,429 5.94 .43 7.29

* Examiners deductions (net) is net of assets not on the books. Figures in italics represent excess of appraised value of assets over book value.

i Includes 7 banks m Puerto Rico not members of the Federal Reserve System.

* Includes 3 national banks and 1 State bank in Alaska, and 1 State bank in Hawaii, not members of the Federal Reserve System.

EXAMINERS’ EVALUATION OF INSURED COMMERCIAL BANKS 247

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Federal Reserve Bank of St. Louis
Table 111. Earnings, expenses, and dividends of insured commercial banks, 1942-1950

Table 112. Ratios of earnings, expenses, and dividends of insured commercial banks, 1942-1950

Table 113. Earnings, expenses, and dividends of insured commercial banks, 1950 

By class of bank

Table 114. Ratios of earnings, expenses, and dividends of insured commercial banks, 1950 

By class of bank

Table 115. Earnings, expenses, and dividends of insured commercial banks operating throughout 1950

Banks grouped according to amount of deposits

Table 116. Ratios of earnings, expenses, and dividends of insured commercial banks operating 

throughout 1950

Banks grouped according to amount of deposits

Table 117. Earnings, expenses, and dividends of insured commercial banks, by State, 1950

Table 118. Earnings, expenses, and dividends of insured mutual savings banks, 1942-1950

Table 119. Ratios of earnings, expenses, and dividends of insured mutual savings banks, 

1942-1950

E a r n in g s, E xpen ses, and D ividends of I nsured B an k s

Digitized for FRASER 

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Federal Reserve Bank of St. Louis
Reports of earnings, expenses, and dividends are submitted to the 

Federal supervisory agencies on either a cash or an accrual basis.

Earnings 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.

On December 8, 1947, the Commissioner of Internal Revenue issued 

Comm. Mimeograph Coll. No. 6209 entitled, “ Reserve Method of 

Accounting for Bad Debts in the Case of Banks.” (See pp. 82-84 in 

the 1947 Annual Report). Under this ruling, banks are permitted to 

accumulate limited amounts of tax-free reserves for bad debt losses on 

loans. As a result, since 1947 unusually large amounts were set aside 

from income to valuation reserves, and net profits were decreased 

accordingly. The uniform report of earnings and dividends for the 

calendar year 1948 was revised to show separately for the first time 

charge-offs and transfers to valuation reserves as well as recoveries 

and transfers from valuation reserves. Also, the actual recoveries and 

losses that are credited and charged to valuation reserves were reported 

as memoranda items.

Averages of assets and liabilities shown in Tables 111-114 and 117-

119 are based upon figures at the beginning, middle, and end of each 

year, as reported by banks operating on those dates. Consequently, the 

asset and liability averages are not strictly comparable with the earnings 

data, but the differences are not large enough to affect the totals significantly. Some further incomparability is also introduced into the 

data by class of bank by shifts between those classes during the vear.

Assets and liabilities shown in Table 115, and utilized for computation 

of ratios shown in Table 116, are for the identical banks to which the 

earnings data pertain. For national banks and State banks members 

of the Federal Reserve System, assets and liabilities are as of December 

30, 1950, and for other banks, are averages of beginning, middle, and 

end of the year.

Sources o f d ata

National banks, and State banks not members of the Federal Reserve 

System in the District of Columbia: Office of the Comptroller of the 

Currency.

State banks members of the Federal Reserve Sj^stem: Board of 

Governors of the Federal Reserve System.

Other insured banks: Federal Deposit Insurance Corporation.

EARNINGS, EXPENSES, AND DIVIDENDS OF INSURED BANKS 249

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Federal Reserve Bank of St. Louis
Table 111. E a r n i n g s , E x p e n s e s , a n d D i v id e n d s o f I n s u r e d C o m m e r c ia l B a n k s , 1942-1950

(Amounts in thousands of dollars)

Earnings or expense item 1942 1943 1944 1945 1946 1947 1948 1949 1950

Current operating earnings— tota l...............

Interest on U. S. Government obligations. . .

Interest and dividends on other securities----

Interest and discount on loans........................

Service charges and fees on bank’s loans.......

Service charges on deposit accounts...............

Other service charges, commissions, fees, and

collection and exchange charges..................

Trust department..............................................

Other current operating earnings....................

1,790,692

} 610,298 

804,717 

12,084 

84,309

55,148

100,652

123,484

1,959,481

861,412

692,305

13,513

95,332

67,533

104,710

124,676

2,214,905

1,090,253

680,708

17,320

107,375

78,485

112,486

128,278

2,482,278 

( 1,132,977 

\ 167,198 

707,738 

18,860 

109,789

90,617

120,317

134,782

2,862,875

1,218,517

176,620

936,554

14,564

124,696

97,995

140,340

153,589

3,097,670

1,079,535

179,408

1,263,788

18,386

147,761

97,264

144,734

166,794

3,403,586

1,008,138

189,559

1,577,633

22,315

173,791

97,456

156,678

178,016

3,606,879

1,013,515

201,691

1,733,690

26,090

194,013

95,420

160,430

182,030

3,930,696

1,015,456

225,425

1,976,100

31,724

212,272

104,602

180,674

184,445

Current operating expenses—total...............

Salaries—officers................................................

Salaries and wages—employees.......................

Fees paid to directors and members of executive, discount, and other committees.........

Interest on time and savings deposits............

Interest and discount on borrowed money. . .

Taxes other than on net income......................

Recurring depreciation on banking house,

furniture and fixtures....................................

Other current operating expenses....................

1,222,157

219,388

333,171

11,541

174,674

336

97,085

39,917

346,045

1,256,025

225,142

356,958

11,775

163,900

502

99,915

40,008

357,825

1,356,680

240,354

386,346

12,907

186,773

1,112

97,307

41,845

390,036

1,522,778

266,018

424,881

14,610

233,321

2,448

98,683

40,329

442,488

1,762,634

309,220

521,709

16,936

268,624

2,364

96,314

40,850

506,617

1,981,787

344,845

602,266

18,954

298,274

2,656

103,516

42,276

569,000

2,163,514

381,756

662,696

20,859

316,570

3,432

106,163

48,271

623,767

2,283,727

410,685

700,065

22,608

328,010

3,582

113,569

53,988

651,219

2,444,534

446,043

755,681

24,745

343,040

4,296

128,101

59,469

683,159

Net current operating earnings..................... 568,535 703,456 858,225 959,500 1,100,241 1,115,883 1,240,072 1,323,153 1,486,164

Recoveries, transfers from reserve accounts, 

and profits—total.......................................

On securities:

Transfers from reserve accounts..................

Profits on securities sold or redeemed.........

On loans:

Recoveries.......................................................

Transfers from reserve accounts..................

All other.............................................................

222,775

} 55,947 

66,457

} 68,546 

31,825

353,015

91,891

103,143

85,664

72,317

361,726

92,778

129,834

84,224

54,890

509,329

122,364

266,764

67,014

53,187

408,608

59,515

208,700

74,499

65,894

262,042

45,360

100,189

67,687

48,806

266,439

( 29,221 

{ 24,161 

60,025

( 39,748 

X 48,934 

64,350

213,187

16,412

26,672

73,196

23,142

28,220

45,546

245,461

14,718

38,639

90,469

28,506

29,971

43,157

Losses, charge-offs, and transfers to reserve 

accounts—total...........................................

On securities:

Losses and charge-offs...................................

Transfers to reserve accounts......................

On loans:

Losses and charge-offs...................................

Transfers to reserve accounts......................

All other.............................................................

271,118 

} 120,614

} 80,647 

69,857

290,645

116,383

75,223

99,039

265,881

110,439

70,090

85,352

264,122

132,870

55,901

75,351

283,175

132,254

71,253

79,668

294,286

118,498

120,370

55,418

485,753

/ 78,590 

\ 40,941

f 32,393 

( 278,666 

55,163

379,824

38,671

33,044

29,064

221,167

57,878

366,932

38,721

54,518

23,030

191,248

59,414

250 FEDERAL DEPOSIT INSURANCE CORPORATION

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Federal Reserve Bank of St. Louis
Net profits before income taxes.....................

Taxes on net income—total............................

Federal................................................................

State....................................................................

Net profits after income taxes........................

Dividends and interest on capital—total.. .

Dividends declared on preferred stock and 

interest on capital notes and debentures... 

Cash dividends declared on common stock...

Net additions to capital from profits...........

520,192 765,826 954,070 1,204,707 1,225,674 1,083,639 1,020,758 1,156,514 1,364,690

79,541

(0

0)

127,865

114,316

13,549

202,821

187,032

15,789

298,795

277,538

21,257

323,328

301,048

22,280

302,242

283,046

19,196

275,422

258,490

16,932

325,148

304,572

20,576

427,776

402,582

25,194

440,651 637,961 751,249 905,912 902,346 781,397 745,336 831,364 936,915

227,608

14,523

213,085

233,490

14,324

219,166

253,193

13,645

239,548

274,438

11,769

262,669

298,983

8,345

290,638

315,215

5,981

309,234

331,833

5,230

326,603

354,144

5,093

349,052

391,249

4,333

386,916

213,043 404,471 498,056 631,474 603,363 466,182 413,503 477,220 545,666

Memoranda

Recoveries credited to reserve accounts (not 

included in recoveries above):

On securities.......................................................

On loans.............................................................

Losses charged to reserve accounts (not included 

in losses above):

On securities.......................................................

On loans..............................................................

8

8

0)

0)

0) C1)

(»)

(l)

(!)

0)

(0

(!)

0)

C1)

C1)

(*)

7,224

10,844

18,031

46,487

2,600

19,645

6,104

72,978

3,565

20,385

6,324

56,250

Average assets and liabilities2

Assets—total........................................................

Cash and due from banks................................

United States Government obligations..........

Other securities..................................................

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......................................

83,666,451

25,922,701

29,231,826

6,802,771

20,030,625

1,678,528

103,370,189

26,774,094

50,315,698

6,321,794

18,380,838

1,577,765

123,168,863

28,042,727

67,231,161

6,088,482

20,310,112

1,496,381

145,217,438

31,236,090

82,417,236

6,623,089

23,500,772

1,440,251

151,896,770

33,286,775

81,835,381

7,556,923

27,768,296

1,449,395

148,170,261

34,279,792

70,229,835

8,315,081

33,863,334

1,482,219

150,726,513

36,247,026

64,291,298

8,872,676

39,650,962

1,664,551

151,566,078

35,683,829

63,080,739

9,387,984

41,670,879

1,742,647

158,986,894

36,006,423

63,846,830

11,043,342

46,250,272

1,840,027

83,666,451

76,134,514

60,2^5,967

15,888,54-7

580,544

6,951,393

103,370,189

95,506,221

77,878,606

17,627,615

617,535

7,246,433

123,168,863

114,682,390 

93,267,11U

21,^15,276

768,280 

7,718,193

145,217,438

135,948,387

108,968,917

26,979,1+70

934,381

8,334,670

151,896,770

141,829,678

109,890,600

31,939,078

1,057,079

9,010,013

148,170,261

137,537,907 

103,159,25A

31+,378,653

1,104,386 

9,527,968

150,726,513

139,517,461 

101+,195,063

35,322,398

1,257,852 

9,951,200

151,566,078

139,764,394

103,862,159

35,902,235

1,380,578

10,421,106

158,986,894

146,269,294

109,822,638

36,1+1+6,656

1,710,204

11,007,396

Number of active officers, December 31............

Number of other employees, December 31........

54,925

216,473

55,309

225,647

56,494

229,377

59,119

245,275

62,697

271,395

65,740

284,072

67,609

292,015

69,439

296,308

71,566

312,324

Number of banks, December 31......................... 13,347 13,274 13,268 13,302 13,359 13,403 13,419 13,436 13,446

Note: Due to rounding, earnings data of State banks for 1949 and 1950 may not add precisely to the indicated totals.

1 N ot available.

2 Asset and liability items are averages of figures reported at beginning, middle, and end of year. fcO 

Back figures: See the Annual Report for 1941, pp. 158-159. £2

EARNINGS, EXPENSES, AND DIVIDENDS OF INSURED BANKS

Digitized for FRASER 

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Federal Reserve Bank of St. Louis
Table 112. R a t io s o f E a r n in g s , E x p e n s e s , a n d D iv id e n d s o f I n s u r e d C o m m e r c ia l B a n k s , 1942-1950

Earnings or expense item 1942 1943 1944 1945 1946 1947 1948 1949 1950

A m ounts per $100 o f current operating 

earnings

Current operating earnings— total............... $100.00 $100.00 $100.00 $100.00 $100.00 $100.00 $100.00 $100.00 $100.00

Interest on U. S. Government obligations. . . 

Interest and dividends on other securities----

} 34.08 43.96 49.22 ( 45.64 

j 6.74

42.56

6.17

34.85

5.79

29.62

5.57

28.10

5.59

25.83

5.74

45.61 36.02 31.52 29.27 33.22 41.39 47.01 48.79 51.08

Service charges on deposit accounts................ 4.71 4.87 4.85 4.42 4.36 4.77 5.11 5.38 5.40

Other service charges, commissions, fees, and

collection and exchange charges..................

Other current operating earnings....................

3.08 3.45 3.54 3.65 3.42 3.14 2.86 2.65 2.66

12.52 11.70 10.87 10.28 10.27 10.06 9.83 9.49 9.29

Current operating expenses— tota l............... 68.25 64.10 61.25 61.35 61.57 63.98 63.57 63.32 62.19

Salaries, wages, and fees.................................. 31.50 30.31 28.88 28.42 29.62 31.19 31.30 31.42 31.20

Interest on time and savings deposits............ 9.76 8.36 8.43 9.40 9.38 9.63 9.30 9.10 8.73

Taxes other than on net income. . . ................ 5.42 5.10 4.39 3.98 3.36 3.34 3.12 3.15 3.26

Recurring depreciation on banking house, 

furniture and fixtures.................................... 2.23 2.04 1.89 1.62 1.43 1.36 1.42 1.50 1.51

Other current operating expenses.................... 19.34 18.29 17.66 17.93 17.78 18.46 18.43 18.15 17.49

Net current operating earnings..................... 31.75 35.90 38.75 38.65 38.43 36.02 36.43 36.68 37.81

Am ounts per $100 o f total assets1 

Current operating earnings—total...................... 2.14 1.90 1.80 1.71 1.88 2.09 2.26 2.38 2.47

Current operating expenses—total...................... 1.46 1.22 1.10 1.05 1.16 1.34 1.44 1.51 1.54

Net current operating earnings............................ .68 .68 .70 .66 .72 .75 .82 .87 .93

Recoveries, transfers from reserve accounts, 

and profits—total.............................................. .26 .34 .29 .35 .27 .18 .18 .14 .16

Losses, charge-offs, and transfers to reserve ac-

.32 .28 .22 .18 .18 .20 .32 .25 .23

Net profits before income taxes........................... .62 .74 .77 .83 .81 .73 .68 .76 .86

Net profits after income taxes............................. .53 .62 .61 .62 .59 .53 .49 .55 .59

Am ounts per $100 o f total capital 

accounts1

Net current operating earnings............................ 8.18 9.71 11.12 11.51 12.21 11.71 12.46 12.70 13.50

Recoveries, transfers from reserve accounts, 

and profits—total ................................ 3.20 4.87 4.69 6.11 4.53 2.75 2.68 2.04 2.23

Losses, charge-offs, and transfers to reserve 

accounts— total.................................................. 3.90 4.01 3.45 3.16 3.14 3.09 4.88 3.64 3.33

Net profits before income taxes........................... 7.48 10.57 12.36 14.46 13.60 11.37 10.26 11.10 12.40

1.14 1.75 2.63 3.59 3.59 3.17 2.77 3.12 3.89

Net profits after income taxes............................. 6.34 8.82 9.73 10.87 10.01 8.20 7.49 7.98 8.51

Cash dividends declared....................................... 3.28 3.23 3.28 3.29 3.32 3.31 3.33 3.40 3.55

Net additions to capital from profits.................. 3.06 5.59 6.45 7.58 6.69 4.89 4.16 4.58 4.96

252 FEDERAL DEPOSIT INSURANCE CORPORATION

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Federal Reserve Bank of St. Louis
Special ratios1

Income on loans per $100 of loans......................

Income on securities per $100 of securities........

Service charges per $100 of demand deposits... 

Interest paid per $100 of time and savings 

deposits...............................................................

4.08

1.69

.14

1.10

3.85

1.52

.12

.93

3.44

1.49

.12

.87

3.09

1.46

.10

.87

3.43

1.56

.11

.84

3.79

1.60

.14

.87

4.04

1.64

.17

.90

4.22

1.68

.19

.91

4.34

1.66

.19

.94

Assets and liabilities per $100 o f total 

assets1

Assets—to ta l........................................................ 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00

Cash and due from banks................................ 30.98 25.91 22.77 21.51 21.91 23.14 24.05 23.55 22.65

United States Government obligations.......... 34.94 48.70 54.59 56.76 53.88 47.40 42.65 41.62 40.16

Other securities.................................................. 8.13 6.11 4.94 4.56 4.98 5.61 5.89 6.19 6.94

Loans and discounts.......................................... 23.94 17.75 16.49 16.18 18.28 22.85 26.31 27.49 29.09

All other assets................................................... 2.01 1.53 1.21 .99 .95 1.00 1.10 1.15 1.16

Liabilities and capital—total.......................... 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00

Total deposits..................................................... 91.00 92.39 93.11 93.62 93.37 92.82 92.56 92.21 92.00

Demand deposits...................................................... 72.01 75.39 75.72 75.0k 72.SU 69.62 69.13 68.52 69.08

Tim e and savings deposits.................................... 18.99 17.00 17.39 18.58 21.08 23.20 23.US 23.69 22.92

Borrowings and other liabilities...................... .69 .60 .62 .64 .70 .75 .84 .91 1.08

Total capital accounts...................................... 8.31 7.01 6.27 5.74 5.93 6.43 6.60 6.88 6.92

Number of banks, December 31.......................... 13,347 13,274 13,268 13,302 13,359 13,403 13,419 13,436 13,446

i Asset and liability items are averages of figures reported at beginning, middle, and end of year.

EARNINGS, EXPENSES, AND DIVIDENDS OF INSURED BANKS 253

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Federal Reserve Bank of St. Louis
Table 113. E a r n in g s , E x p e n se s, a n d D iv id e n d s o f I n s u r e d C o m m e r cia l B a n k s, 1950

BY CLASS OF BANK

(Amounts in thousands of dollars)

Earnings or expense item Total

Members F, 

National

. R. System 

State

Not 

members 

F. R.

System

Operating 

throughout 

the year

Operating 

less than 

full year1

Current operating earnings—tota l...............................................................

Interest on United States Government obligations.......................................

Interest and dividends on other securities......................................................

Interest and discount on loans.........................................................................

Other service charges, commissions, fees, and collection and exchange 

charges.......................................*..................................................................

3,930,696

1,015,456

225,425

1,976,100

31,724

212,272

104,602

180,674

184,445

2,185,946

588,733

132,093

1,099,861

17,749

119,216

45,492

70,078

112,724

1,078,236

276,061

58,049

507,919

8,317

53,273

25,255

100,439

48,924

666,514

150,662

35,283

368,320

5,658

39,783

33,855

10,157

22,797

3,912,166

1,011,315

224,239

1,969,519

31,608

211,444

104,187

176,717

183,137

18,530

4,141

1,186

6,581

116

828

415

3,957

1,308

Current operating expenses—total................................................................

Fees paid to directors and members of executive, discount, and other

2,444,534

446,043

755,681

24,745

343,040

4,296

128,101

59,469

683,159

1,332,609

229,596

420,115

11,760

189,458

1,747

74,265

33,467

372,201

686,715

115,122

234,998

5,687

81,316

2,148

34,577

14,546

198,322

425,210

101,325

100,568

7,298

72,266

401

19,259

11,456

112,636

2,431,565

443,494

751,946

24,622

341,740

4,292

127,589

59,238

678,643

12,969

2,549

3,735

123

1,300

4

512

231

4,516

Interest on time and savings deposits.............................................................

Interest and discount on borrowed money.....................................................

Recurring depreciation on banking house, furniture and fixtures...............

Recoveries, transfers from reserve accounts, and profits—total..........

On securities:

1,486,164 853,337 391,521 241,306 1,480,602 5,562

245,461

14,718

38,639

90,469

28,506

29,971

43,157

153,514

9,670

28,999

60,920

15,220

13,333

25,372

65,056

3,118

7,800

21,228

7,328

13,627

11,955

26,891

1,930

1,840

8,321

5,958

3,011

5,830

241,739

14,109

37,682

89,645

28,369

29,701

42,230

3,722

609

957

824

137

270

927

Profits on securities sold or redeemed............................................

On loans:

Transfers from reserve accounts..................................................................

254 FEDERAL DEPOSIT INSURANCE CORPORATION

Digitized for FRASER 

http://fraser.stlouisfed.org/ 

Federal Reserve Bank of St. Louis
Losses, charge-offs, and transfers to reserve accounts—total.............. 366,932

38,721

54,518

23,030

191,248

59,414

215,646

24,005

41,360

10,842

109,094

30,345

97,985

8,618

9,573

3,426

57,174

19,194

53,301

6,098

3,585

8,762

24,980

9,875

364,815

38,205

54,475

22,865

190,879

58,391

2,117

516

43

165

369

1,023

On securities:

Losses and charge-offs..................................................................................

Transfers to reserve accounts................................................... ..................

On loans:

Losses and charge-offs...................................................................................

Transfers to reserve accounts....................................................................

All other....................................................................................

Net profits before incom e taxes..................................................................... 1,364,690 791,205 358,591 214,894 1,357,525 7,165

Taxes on net incom e—tota l............................................................................ 427,776

402,582

25,194

254,641

241,100

13,541

114,419

105,809

8,610

58,716

55,673

3,043

425,958

400,869

25,089

1,818

1,713

105

Federal...........................................................................................

Net profits after incom e taxes........................................................................ 936,915 536,564 244,172 156,179 931,567 5,348

Dividends and interest on capital—total................................................... 391,249

4,333

386,916

228,991

709

228,282

116,531

2,126

114,405

45,727

1,498

44,229

389,962

4,320

385,644

1,287

13

1,272

Dividends declared on preferred stock and interest on capital notes and 

debentures..................................................................................................

Cash dividends declared on common stock...................................................

Net additions to capital from profits....................................................... 545,666 307,573 127,641 110,452 541,605 4,061

Memoranda

Recoveries credited to reserve accounts (not included in recoveries above): 

On securities..................................................................................................... 3,565

20,385

6,324

56,250

1,839

12,962

2,815

33,543

1,197

4,054

2,993

12,786

529

3,369

516

9,921

3,565

20,237

6,324

56,050

On loans.............................................................................................. 148

Losses charged to reserve accounts (not included in losses above): 

On securities............................................................................

On loans......................................................................................... 200

Average assets and liabilities2 

Assets—total........................................................................................................ 158,986,894

36,006,423

63,846,830

11,043,342

46,250,272

1,840,027

92,219,693

21,557,337

37,098,448

6,611,148

25,875,572

1,077,188

45,373,169

10,514,449

17,893,067

2,753,418

13,651,281

560,954

21,394,032

3,934,637

8,855,315

1,678,776

6,723,419

201,885

Cash and due from banks................................................................................

United States Government obligations..........................................................

Other securities..................................................................................................

Loans and discounts.........................................................................................

All other assets..................................................................................................

Liabilities and capital—total......................................................................... 158,986,894

146,269,294

109,822,638

S6,U 6,656

1,710,204

11,007,396

92,219,693

84,941,214

64,850,449

20,090,765

1,140,553

6,137,926

45,373,169

41,602,291

32,099,662

9,502,629

446,448

3,324,430

21,394,032

19,725,789

12,872,527

6,853,262

123,203

1,545,040

Total deposits....................................................................................................

Demand deposits...............................................................................................................

Tim e and savings deposits.............................................................................................

Borrowings and other liabilities......................................................................

Total capital accounts....................................................................................

Number of active officers, December 30............................................................ 71,566

312,324

34,263

172,089

14,693

91,539

22,610

48,696

71,225

311,211

341

Number of other employees, December 30........................................................ 1,113

Number of banks, December 30............................................................ 13,446 4,958 1,912 6,576 13,370 76

N ote: Due to rounding, earnings data of State banks may not add precisely to the indicated totals.

1 Includes banks operating less than full year and trust companies not engaged in deposit banking.

2 Asset and liability items are averages of figures reported at beginning, middle, and end of year.

Back figures: See Table 111, p. 250. See also the Annual Report for 1949, pp. 160-165, and earlier reports.

EARNINGS, EXPENSES, AND DIVIDENDS OF INSURED BANKS 255

Digitized for FRASER 

http://fraser.stlouisfed.org/ 

Federal Reserve Bank of St. Louis
Table 114. R a t io s o f E a r n in g s , E x p e n se s, and D iv id e n d s o f I n s u r e d C o m m e r cia l B a n k s, 1950

BY CLASS OF BANK

Earnings or expense item Total

Members F. R. System Not

members

National State

F. R.

System

Am ounts per $100 of current operating earnings 

Current operating earnings— total........................................................................................................ $100.00

25.83

$100.00 $100.00 $100.00

Interest on United States Government obligations............................................................................... 26.93 25.61 22.60

Interest and dividends on other securities.............................................................................................. 5.74 6.04 5.38 5.29

Income on loans........................................................................................................................................ 51.08 51.13 47.88 56.11

Service charges on deposit accounts........................................................................................................ 5.40 5.46 4.94 5.97

Other service charges, commissions, fees, and collection and exchange charges................................ 2.66 2.08 2.34 5.08

Other current operating earnings............................................................................................................. 9.29 8.36 13.85 4.95

Current operating expenses—tota l........................................................................................................ 62.19 60.96 63.69 63.80

Salaries, wages, and fees........................................................................................................................... 31.20 30.26 33.00 31.39

Interest on time and savings deposits..................................................................................................... 8.73 8.67 7.54 10.84

Taxes other than on net income............................................................................................................... 3.26 3.40 3.21 2.89

Recurring depreciation on banking house, furniture and fixtures........................................................ 1.51 1.53 1.35 1.72

Other current operating expenses............................................................................................................. 17.49 17.10 18.59 16.96

Net current operating earnings.............................................................................................................. 37.81 39.04 36.31 36.20

Am ounts per $100 of total assets1

Current operating earnings— total. ............................................................................................................. 2.47 2.37 2.37 3.12

Current operating expenses—total............................................................................................................... 1.54 1.45 1.51 1.99

Net current operating earnings.................................................................................................................... .93 .92 .86 1.13

Recoveries, transfers from reserve accounts, and profits—total.............................................................. .16 .17 .14 .12

Losses, charge-offs, and transfers to reserve accounts—total.................................................................. .23 .23 .21 .25

Net profits before income taxes.................................................................................................................. .86 .86 .79 1.00

Net profits after income taxes...................................................................................................................... .59 .58 .54 .73

Memoranda

Recoveries credited to reserve accounts (not included in recoveries above):

On securit.ips........................................................., ..................................................................................... (2)

.01

(2)

.01

(2)

,01

(2)

On loans. . .................................................................................................................................................. .02

Losses charged to reserve accounts (not included in losses above):

On securities............................................................................................................................................... (*)

.04

(2)

.04

.01 (2)

On loans...................................................................................................................................................... .03 .05

256 FEDERAL DEPOSIT INSURANCE CORPORATION

Digitized for FRASER 

http://fraser.stlouisfed.org/ 

Federal Reserve Bank of St. Louis
Amounts per $100 of total capital accounts*

Net current operating earnings.................................................................................................................... 13.50 13.90 11.78 15.62

Recoveries, transfers from reserve accounts, and profits—total.............................................................. 2.23 2.50 1.96 1.74

Losses, charge-offs, and transfers to reserve accounts—total.................................................................. 3.33 3.51 2.95 3.45

Net profits before income taxes................................................................................................................... 12.40 12.89 10.79 13.91

Taxes on net income...................................................................................................................................... 3.89 4.15 3.44 3.80

Net profits after income taxes...................................................................................................................... 8.51 8.74 7.35 10.11

Cash dividends declared................................................................................................................................ 3.55 3.73 3.51 2.96

Net additions to capital from profits.......................................................................................................... 4.96 5.01 3.84 7.15

Memoranda

Recoveries credited to reserve accounts (not included in recoveries above):

On securities............................................................................................................................................... .03 .03 .04 .03

On loans...................................................................................................................................................... .19 .21 .12 .22

.03

Losses charged to reserve accounts (not included in losses above):

On securities............................................................................................................................................... .06 .05 .09

On loans...................................................................................................................................................... .51 .55 .38 .64

Special ratios1

Income on loans per $100 of loans.............................................................................................................. 4.34 4.32 3.78 5.56

Income on securities per $100 of securities................................................................................................ 1.66 1.65 1.62 1.77

Service charges per $100 of demand deposits............................................................................................ .19 .18 .17 .31

Interest paid per $100 of time and savings deposits................................................................................. .94 .94 .86 1.05

Assets and liabilities per $100 of total assets1

Assets—total................................................................................................................................................ 100.00 100.00 100.00 100.00

Cash and due from banks......................................................................................................................... 22.65 23.37 23.17 18.39

United States Government obligations................................................................................................... 40.16 40.23 39.43 41.39

Other securities.......................................................................................................................................... 6.94 7.17 6.07 7.85

Loans and discounts.................................................................................................................................. 29.09 28.06 30.09 31.43

All other assets........................................................................................................................................... 1.16 1.17 1.24 .94

Liabilities and capital—total.................................................................................................................. 100.00 100.00 100.00 100.00

Total deposits...................................................................................................................... 92.00

69.08

92.11 91.69 92.20

Demand deposits................................................................................................................................................................ 70.32 70.75 60.17

Tim e and savings deposits.............................................................................................................................................. 22.92 21.79 20.94

.93

32.03

Borrowings and other liabilities............................................................................................................... 1.08 1.24 .58

Total capital accounts............................................................................................................................... 6.92 6.65 7.33 7.22

Number of banks, December 30.................................................................................................................. 13,446 4,958 1,912 6,576

1 Asset and liability items are averages of figures reported at beginning, middle, and end of year.

2 Less than .005

Back figures: See Table 112, p. 252. See also the Annual Report for 1949, pp. 166-167, and earlier reports.

EARNINGS, EXPENSES, AND DIVIDENDS OF INSURED BANKS 257

Digitized for FRASER 

http://fraser.stlouisfed.org/ 

Federal Reserve Bank of St. Louis
Table 115. E a r n in g s , E x p e n s e s , a n d D iv i d e n d s o f I n s u r e d C o m m e r c ia l B a n k s O p e r a t in g T h r o u g h o u t 1950

BAN KS GROUPED ACCORDING TO AMOUNT OF DEPOSITS

Banks with deposits of—2

Earnings or expense item

All

banks1

$500,000

or

less

$500,000

to

$1,000,000

$1,000,000

to

$2,000,000

$2,000,000

to

$5,000,000

$5,000,000

to

$10,000,000

$10,000,000

to

$50,000,000

$50,000,000

to

$100,000,000

More than 

$100,000,000

Current operating earnings— tota l............................. 3,912,166 8,194 50,029

(Amounts

155,256

in thousands 

403,709

i of dollars) 

376,995 753,877 288,169 1,875,935

Interest on United States Government obligations.. . 1,011,315 1,351 10,878 36,884 100,203 94,911 195,101

42,924

73,101 498,887

Interest and dividends on other securities................... 224,239 264 1,768 6,894 22,097 22,196 13,824 114,274

Interest and discount on loans...................................... 1,969,519 5,220 29,935 89,863 226,714 203,099 379,757 143,275 891,657

Service charges and fees on bank’s loans..................... 31,608 83 295 666 2,077 2,610 5,673 2,534 17,671

Service charges on deposit accounts............................. 211,444 389 2,608 8,484 24,324 26,486 53,230 17,229 78,695

Other service charges, commissions, fees, and collection and exchange charges..................................... 104,187 718 3,639 9,040 16,627 11,851 19,220 6,977 36,115

Trust department............................................................ 176,717 3 15 149 1,484 4,085 22,756 14,108 134,118

Other current operating earnings.................................. 183,137 168 891 3,277 10,183 11,756 35,220 17,123 104,519

Current operating expenses—total............................. 2,431,565 5,363 31,184 94,909 250,829 238,725 489,574 187,565 1,133,416

Salaries— officers.............................................................. 443,494 2,303 12,182 31,811 68,151 52,141 86,487 29,952 160,467

Salaries and wages—employees..................................... 751,946 663 4,231 15,658 51,850 60,000 143,912 61,485 414,148

Fees paid to directors and members of executive, 

discount, and other committees................................ 24,622 119 807 2,464 6,021 4,164 5,393 1,357 4,297

Interest on time and savings deposits.......................... 341,740 424 3,684 13,992 41,895 40,977 77,881 23,557 139,333

Interest and discount on borrowed money.................. 4,292 5 35 79 184 125 427 233 3,204

Taxes other than on net income.................................... 127,589 269 1,448 4,553 12,522 12,008 25,116 9,467 62,207

Recurring depreciation on banking house, furniture 

and fixtures.................................................................. 59,238 111 731 2,493 7,612 7,340 14,312 5,406 21,233

Other current operating expenses.................................. 678,643 1,470 8,067 23,860 62,595 61,969 136,046 56,108 328,527

Net current operating earnings................................... 1,480,602 2,832 18,845 60,347 152,880 138,270 264,305 100,605 742,519

Recoveries, transfers from reserve accounts, and 

profits—total............................................................. 241,739 266 1,563 4,661 11,957 13,167 34,860 13,171 162,094

On securities:

Recoveries.................................................................... 14,109 5 73 416 1,225 1,946 2,814 910 6,721

Transfers from reserve accounts................................ 37,682 1 24 117 464 615 2,531 530 33,400

Profits on securities sold or redeemed...................... 89,645 48 200 680 2,648 3,523 12,106 5,821 64,619

On loans:

Recoveries.................................................................... 28,369 164 888 2,189 3,980 3,100 5,712 2,395 9,943

Transfers from reserve accounts................................ 29,701 8 89 231 1,036 1,265 3,419 1,286 22,366

All other........................................................................... 42,230 41 287 1,028 2,603 2,717 8,279 2,230 25,045

Losses, charge-offs, and transfers to reserve accounts—total............................................................. 364,815 548 3,371 10,456 28,977 30,577 63,933 25,662 201,291

On securities:

Losses and charge-offs................................................. 38,205 46 296 1,170 3,862 4,679 8,211 3,978 15,961

Transfers to reserve accounts.................................... 54,475 2 55 331 706 1,280 3,659 995 47,448

On loans:

Losses and charge-offs................................................ 22,865 348 1,591 3,825 6,181 3,387 3,642 1,316 2,575

Transfers to reserve accounts.................................... 190,879 89 916 3,439 13,168 15,708 36,242 15,656 105,663

Ail other........................................................................... 58,391 64 514 1,692 5,059 5,521 12,179 3.718 29,644

258 FEDERAL DEPOSIT INSURANCE CORPORATION

Digitized for FRASER 

http://fraser.stlouisfed.org/ 

Federal Reserve Bank of St. Louis
Net profits before Incom e taxes...................................

Taxes on net incom e—total.........................................

Federal.............................................................................

State.................................................................................

Net profits after incom e taxes.....................................

Dividends and interest on capital—total.................

Dividends declared on preferred stock and interest on

capital notes and debentures.....................................

Cash dividends declared on common stock.................

Net additions to capital from profits........................

1,357,525 2,549 17,036 54,552 135,861 120,861 235,231 88,114 703,322

425,958

400,869

25,089

522

483

38

3,465

3,224

241

11,447

10,719

729

33,740

32,165

1,575

35,726

34,359

1,368

73,190

70,318

2,873

29,072

27,834

1,238

238,797

221,771

17,026

931,567 2,029 13,571 43,105 102,121 85,135 162,041 59,043 464,525

389,962

4,320

385,644

643

12

631

3,936

60

3,875

12,217

137

12,080

30,510

372

30,138

26,495

555

25,941

55,019

1,038

53,981

21,574

859

20,715

239,570

1,287

238,283

541,605 1,386 9,636 30,888 71,610 58,639 107,023 37,469 224,955

Memoranda

Recoveries credited to reserve accounts (not included in 

recoveries above):

On securities....................................................................

On loans...........................................................................

Losses charged to reserve accounts (not included in 

losses above):

On securities....................................................................

On loans...........................................................................

3,565

20,237

6,324

56,050

1

24

2

53

1

150

17

425

18

484

59

1,547

52

2,059

87

5,241

70

2,204

116

6,194

617

4,060

775

10,954

154

1,427

134

4,300

2,653

9,829

5,134

27,337

Average assets and liabilities3

Assets—tota l.....................................................................

Cash and due from banks..............................................

United States Government obligations........................

Other securities...............................................................

Loans and discounts.......................................................

All other assets................................................................

Liabilities and capital—total.......................................

Total deposits..................................................................

Demand deposits......................................................................

Tim e and savings deposits....................................................

Borrowings and other liabilities....................................

Total capital accounts....................................................

165,765,708

39,398,895

61,097,487

12,010,300

51,349,902

1,909,124

220,194

60,789

73,616

9,024

75,079

1,686

1,511,028

351,043

591,086

75,742

484,479

8,678

5,043,086

1,125,103

2,034,148

300,318

1,551,320

32,197

14,101,155

3,059,271

5,679,074

1,072,546

4,182,413

107,851

13,695,963

2,878,682

5,576,355

1,187,493

3,931,846

121,587

29,021,723

6,280,528

11,782,165

2,373,245

8,253,560

332,225

12,034,538

2,871,231

4,634,451

830,314

3,543,287

155,255

90,138,021

22,772,248

30,726,592

6,161,618

29,327,918

1,149,645

165.765.708

152.566.709 

116,H I ,365

86,U25,8UU

2,001,651

11,197,348

220,194

194,395

158,607

85,788

646

25,153

1,511,028

1,370,572

1,010,558

830,019

3,374

137,082

5,043,086

4,621,965 

8,331,179

1,290,786

11,016 

410,105

14,101,155

13,032,104

8,956,652

U,075,U52

37,727

1,031,324

13,695,963 

12,705,787 

8,U87,725

U,268,062

54,149 

936,027

29,021,723

26,988,463

18,855,587

8,682,926

179,301

1,853,959

12,034,538

11,225,071

8,566,238

2,658,888

97,107

712,360

90,138,021

82,428,352 

67,29k,879

15,188,^78

1,618,331 

6,091,338

Number of active officers, December 30.........................

Number of other employees, December 30.....................

71,225

311,211

1,007

561

4,246

2,987

9,006

9,472

15,358

26,671

9,464

27,941

12,325

63,435

3,604

26,607

16,215

153,537

Number of banks, December 30....................................... 13,370 530 1,850 3,222 4,189 1,847 1,376 161 195J

N ote: Due to rounding, earnings data of State banks may not add precisely to the indicated totals, 

i This group of banks is the same as the group shown in Table 113 under the heading “ Operating throughout the year."

* Deposits are as of December 30, 1950. *

• Asset and liability items are averages of figures reported at beginning, middle, and end of year for banks submitting reports to FDIC and are as of December 30, 1950, 

for banks not submitting reports to FDIC.

Back figures: See the Annual Report for 1949, pp. 168-169, and earlier reports.

EARNINGS, EXPENSES, AND DIVIDENDS OF INSURED BANKS

Digitized for FRASER 

http://fraser.stlouisfed.org/ 

Federal Reserve Bank of St. Louis
Table 116. R atios of E ar nin g s, E xpen ses, and D ividends of Insured C ommercial Ba n ks Operating T hroughout 1950

BANKS GROUPED ACCORDING TO AMOUNT OF DEPOSITS

Banks with deposits of—*

Earnings or expense item

All

banks1

$500,000

or

less

$500,000

to

$1,000,000

$1,000,000

to

$2,000,000

$2,000,000

to

$5,000,000

$5,000,000

to

$10,000,000

$10,000,000

to

$50,000,000

$50,000,000

to

$100,000,000

More than 

$100,000,000

Amounts per $100 of current operating

earnings

Current operating earnings—total............................. $100.00 $100.00 $100.00 $100.00 $100.00 $100.00 $100.00 $100.00 $100.00

Interest on United States Government obligations... 25.85 16.48 21.75 23.76 24.82 25.17 25.88 25.37 26.60

Interest and dividends on other securities................... 5.73 3.22 3.53 4.44 5.47 5.89 5.69 4.80 6.09

Income on loans.............................................................. 51.15 64.72 60.43 58.31 56.67 54.57 51.13 50.60 48.47

Service charges on deposit accounts............................. 5.41 4.74 5.21 5.46 6.03 7.03 7.06 5.98 4.19

Other service charges, commissions, fees, and collection and exchange charges..................................... 2.66 8.76 7.27 5.82 4.12 3.14 2.55 2.42 1.93

Other current operating earnings.................................. 9.20 2.08 1.81 2.21 2.89 4.20 7.69 10.83 12.72

Current operating expenses—total............................. 62.15 65.44 62.33 61.13 62.13 63.32 64.94 65.09 60.42

Salaries, wages, and fees................................................ 31.19 37.64 34.42 32.16 31.22 30.85 31.28 32.20 30.86

Interest on time and savings deposits.......................... 8.73 5.17 7.36 9.01 10.38 10.87 10.33 8.17 7.43

Taxes other than on net income.................................... 3.26 3.28 2.89 2.93 3.10 3.18 3.33 3.29 3.32

Recurring depreciation on banking house, furniture

and fixtures.................................................................. 1.51 1.35 1.46 1.61 1.88 1.90 1.95 1.88 1.13

Other current operating expenses.................................. 17.46 18.00 16.20 15.42 15.55 16.47 18.10 19.55 17.68

Net current operating earnings................................... 37.85 34.56 37.67 38.87 37.87 36.68 35.06 34.91 39.58

Amounts per $100 of total assets3

Current operating earnings—total.................................... 2.36 3.72 3.31 3.08 2.86 2.75 2.60 2.39 2.08

Current operating expenses—total.................................... 1.47 2.43 2.06 1.88 1.78 1.74 1.69 1.56 1.26

Net current operating earnings......................................... .89 1.29 1.25 1.20 1.08 1.01 .91 .83 .82

Recoveries, transfers from reserve accounts, and

profits—total................................................................... .15 .12 .10 .09 .08 .09 .12 .11 .18

Losses, charge-offs, and transfers to reserve accounts—

total.................................................................................. .22 .25 .22 .21 .20 .22 .22 .21 .22

Net profits before income taxes......................................... .82 1.16 1.13 1.08 .96 .88 .81 .73 .78

Net profits after income taxes........................................... .56 .92 .90 .85 .72 .62 .56 .49 .52

Memoranda

Recoveries credited to reserve accounts (not included

in recoveries above):

On securities..................................................................... (4) (4) (4) (4) (4) (4) (4) (4) (4)

On loans........................................................................... .01 .01 .01 .01 .01 .02 .01 .01 .01

Losses charged to reserve accounts (not included in 

losses above):

On securities..................................................................... (4) (4) (4) (4) (4) (4) (4) (4) .01

On loans........................................................................... .03 .02 .03 .03 .04 .05 .04 .04 .03

FEDERAL DEPOSIT INSURANCE CORPORATION

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Federal Reserve Bank of St. Louis
Amounts per $100 of total capital accounts3

Net current operating earnings.........................................

Recoveries, transfers from reserve accounts, and

profits—total...................................................................

Losses, charge-offs, and transfers to reserve accounts—

total..................................................................................

Net profits before income taxes........................................

Taxes on net income..........................................................

Net profits after income taxes..........................................

Cash dividends declared....................................................

Net additions to capita! from profits.. . . .......................

13.22

2.16

3.26

12.12

3.80

8.32

3.48

4.84

11.26

1.06

2.18

10.14

2.07

8.07 

2.56 

5.51

13.75

1.14

2.46

12.43

2.53

9.90

2.87

7.03

14.72

1.13

2.55

13.30

2.79

10.51

2.98

7.53

14.82

1.16

2.81

13.17

3.27

9.90

2.96

6.94

14.77

1.41

3.27 

12.91

3.81

9.10

2.83

6.27

14.26

1.88

3.45

12.69

3.95

8.74

2.97

5.77

14.12

1.85

3.60

12.37

4.08

8.29

3.03

5.26

12.19

2.66

3.30

11.55

3.92

7.63

3.94

3.69

Memoranda

Recoveries creditedgto reserve accounts (not included 

in recoveries above):

On securities.................................................................... .03 (4) (4) (4) .01 .01 .03 .02 .04 On loans........................................................................... .18 .10 .11 .12 .20 .24 .22 .20 .16 Losses charged to reserve accounts (not included in 

losses above):

On securities.................................................................... .06 .01 .01 .01 .01 .01 .04 .02 .08 On loans........................................................................... .50 .21 .31 .38 .51 .66 .59 .60 .45

Special ratios3

Income on loans per $100 of loans................................... 3.90 7.06 6.24 5.84 5.47 5.23 4.67 4.12 3.10 Income on securities per $100 of securities..................... 1.69 1.95 1.90 1.88 1.81 1.73 1.68 1.59 1.66 Service charges per $100 of demand deposits................. .18 .25 .25 .25 .27 .31 .29 .20 .12 Interest paid per $100 of time and savings deposits.... .94 1.18 1.12 1.08 1.03 .96 .90 .89 .92

Assets and liabilities per $100 of total

assets3

Assets—tota l..................................................................... 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 Cash and due from banks.............................................. 23.77 27.61 23.23 22.31 21.70 21.02 21.64 23.86 25.26 United States Government obligations........................ 36.86 33.43 39.12 40.33 40.27 40.71 40.60 38.51 34.09 Other securities............................................................... 7.24 4.10 5.01 5.96 7.61 8.67 8.18 6.90 6.84 Loans and discounts....................................................... 30.98 34.10 32.06 30.76 29.66 28.71 28.44 29.44 32.54 All other assets................................................................ 1.15 .76 .58 .64 .76 .89 1.14 1.29 1.27

Liabilities and capital—total....................................... 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 Total deposits.................................................................. 92.04 88.28 90.71 91.65 92.42 92.77 92.99 93.27 91.45 Demand deposits.......................................................... 70.07 72.03 68.87 66.05 63.52 61.61 63.25 71.18 7U-66 Time and savings deposits........................................... 21.97 16.25 21.8 U 25.60 28.90 31.16 29.7 U 22.09 16.79 Borrowings and other liabilities.................................... 1.21 .30 .22 .22 .27 .40 .62 .81 1.79 Total capital accounts.................................................... 6.75 11.42 9.07 8.13 7.31 6.83 6.39 5.92 6.76

Number of banks, December 30....................................... 13,370 530 1,850 3,222 4,189 1,847 1,376 161 195

1 This group of banks is the same as the group shown in Table 113 under the heading “ Operating throughout the year.” These ratios differ slightly from the ratios for all

insured commercial banks shown in Tables 112 and 114.

3 Deposits are as of December 30, 1950.

8 Asset and liability items are averages of figures reported at beginning, middle, and end of year for banks submitting reports to FDIC and are as of December 30, 1950, for 

banks not submitting reports to FDIC.

4 Less than .005. fcO 

Back figures: See the Annual Report for 1949, pp. 170-171, and earlier reports. £EARNINGS, EXPENSES, AND DIVIDENDS OF INSURED BANKS

Digitized for FRASER 

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Federal Reserve Bank of St. Louis
Table 117. E a r n i n g s , E x p e n s e s , a n d D iv i d e n d s o f I n s u r e d C o m m e r c ia l B a n k s , b y S t a t e , 1950

(Amounts in thousands of dollars)

U. S.and 

possessions

Possessions

United

States Earnings or expense item

Puerto

Rico Other1

Alabama Arizona Arkansas California Colorado Connecticut Delaware

Current operating earnings—tota l............. 3,930,696 5,845 2,180 3,922,671 38,138 15,933 22,891 435,665 30,408 44,656 14,265

Interest on United States Government 

obligations.................................................... 1,015,456 500 456 1,014,500 6,990 2,351 5,285 86,603 7,859 10,193 3,404

Interest and dividends on other securities. .. 225,425 553 51 224,821 2,347 609 1,634 20,001 1,072 2,122 820

Interest and discount on loans...................... 1,976,100 3,520 1,023 1,971,557 22,207 9,637 11,225 256,556 15,916 21,304 6,596

Service charges and fees on bank’s loans___ 31,724 224 62 31,438 359 326 61 7,576 178 181 79

Service charges on deposit accounts............. 212,272 114 60 212,098 2,140 1,234 1,510 27,529 2,778 3,180 269

Other service charges, commissions, fees, and 

collection and exchange charges................ 104,602 782 453 103,367 1,839 318 2,126 7,383 636 659 130

Trust department............................................ 180,674

184,445

2 180,672 822 359 190 12,856

17,162

978 4,599

2,419

2,634

.................. 151 75 184,219 1,434 1,096 862 992 334Other current operating earnings

Current operating expenses—total............. 2,444,534 4,494 1,438 2,438,602 21,321 10,640 13,311 270,060 17,552 30,171 7,532

Salaries—officers.............................................. 446,043 728 275 445,040 5,081 1,789 3,798 37,492 3,925 5,950 1,742

Salaries and wages—employees..................... 755,681 1,360 528 753,793 6,011 3,982 3,295 88,517 5,488 9,346 2,198

Fees paid to directors and members of executive, discount, and other committees....... 24,745 66 33 24,646 263 36 310 705 274 314 148

Interest on time and savings deposits.......... 343,040 521 189 342,330 2,576 857 871 68,301 2,007 3,902 792

Interest and discount on borrowed money. . 

Taxes other than on net income....................

4,296

128,101

121

395 30

4,175

127,676

15

458 350

10

666

92

14,182

20

448

39

1,129

4

223

Recurring depreciation on banking house, 

furniture and fixtures.................................. 59,469 152 51 59,266 678 271 367 5,470 397 920 228

Other current operating expenses.................. 683,159 1,152 333 681,674 6,239 3,356 3,994 55,300 4,993 8,571 2,198

Net current operating earnings................... 1,486,164 1,351 742 1,484,071 16,817 5,292 9,580 165,605 12,857 14,485 6,732

Recoveries, transfers from reserve accounts, and profits— total...................... 245,461 359 66 245,036 1,107 715 831 16,433 1,252 2,098 279

On securities:

Recoveries.................................................... 14,718

38,639

90,469

14 14,704

38,639

90,204

13 5 112 1,440

1,725

3,874

369 179 9

Transfers from reserve accounts................

Profits on securities sold or redeemed. . . . 245 20

6

241

300

273

37

145

15

221

35

616

16

106

On loans:

Recoveries.................................................... 28,506 104 27 28,375 321 29 258 1,363 401 389 114

Transfers from reserve accounts................

All other...........................................................

29,971

43,157 10 4

29,971

43,143

28

499

5

103

17

263

2,051

5,982

35

211

107

772

5

28

Losses, charge-offs, and transfers to reserve accounts—tota l.............................. 366,932 622 285 366,025 3,692 1,871 1,410 26,410 2,343 3,932 553

On securities:

Losses and charge-offs................................. 38,721 22 13 38,686 142 140 329 2,634 463 232 37

Transfers to reserve accounts.................... 54,518

23,030

236 54,282

22,760

9 50 10 5,516

745

3 127 15

On loans:

Losses and charge-offs................................. 250 20 758 1 358 412 49 109

Transfers to reserve accounts.................... 191,248 15 169 191,064 2,144 1,407 434 14,091 1,012 2,352 242

All other........................................................... 59,414 100 83 59,231 638 272 280 3,424 452 1,174 150

Net profits before incom e taxes................... 1,364,690 1,088 523 1,363,079 14,233 4,136 9,001 155,628 11,765 12,649 6,458

262 FEDERAL DEPOSIT INSURANCE CORPORATION

Digitized for FRASER 

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Federal Reserve Bank of St. Louis
Taxes on net income— total..........................

Federal..............................................................

State..................................................................

Net profits after income taxes......................

Dividends and interest on capital—total..

Dividends declared on preferred stock and 

interest on capital notes and debentures.. 

Cash dividends declared on common stock..

Net additions to capital from profits.........

427,776

402,582

25,194

11

18

2 7

177

171

6

427,588

402,393

25,195

5,088

4,390

697

1,409

1,282

128

2,181

2,181

63,417

58,269

5,149

4,159

3,656

503

4,147

3,704

443

2.320

2.320

936,915 1,077 346 935,492 9,145 2,727 6,820 92,212 7,607 8,503 4,137

391,249

4,333

386,916

609

609

95

3

92

390,545

4,330

386,215

3,308

1

3,307

1,010

21

989

2,062

6

2,056

51,183

341

50,843

2,324

4

2,320

4,089

7

4,082

2,323

1

2,322

545,666 468 251 544,947 5,838 1,717 4,758 41,028 5,283 4,414 1,814

Memoranda

Recoveries credited to reserve accounts (not 

included in recoveries above):

3,565

20,385

6,324

56,250

3,565

20,340

6,324

56,200

2

186

2

572

859

3,333

1,359

9,124

1

274

14

678

On loans............................................................

Losses charged to reserve accounts (not included in losses above):

On securities ....................................

45 409

42

1,443

41 171 17

3

On loans............................................................ 50 135 534 101

Average assets and liabilities3

Assets— total.....................................................

Cash and due from banks..............................

United States Government obligations........

Other securities................................................

Loans and discounts........................................

All other assets.................................................

Liabilities and capital—total........................

Total deposits..................................................

Demand deposits....................................................

Tim e and savings deposits.................................

Borrowings and other liabilities....................

Total capital accounts....................................

158,986,894

36,006,423

63,846,830

11,043,342

46,250,272

1,840,027

158,359

27,458

33,830

25,190

63,816

8,065

63,458

14,552

28,899

3,513

15,873

621

158,765,077

35,964,413

63,784,101

11,014,639

46,170,583

1,831,341

1,311,586

327,989

452,672

116,333

400,012

14,580

462,945

82,221

160,080

32,834

180,356

7,454

855,146

252,887

330,828

69,087

197,089

5,255

14,514,711

2,557,213

5,503,264

1,009,389

5,247,527

197,318

1,225,112

322,101

525,803

47,755

322,272

7,181

1,628,876

350,185

658,959

145,304

452,562

21,866

553,463

102,719

248,393

39,474

157,087

5,790

158,986,894

146,269,294

109,822,638

S6,U 6,656

1,710,204

11,007,396

158,359

134,690 

66,1U2

68,518

9,500 

14,169

63,458

59,877 

3 h ,1*37

25 M O

152 

3,429

158,765,077

146,074,727

109,722,059

36,852,668

1,700,552

10,989,798

1,311,586

1,212,272

953,060

259,212

8,588

90,726

462,945

435,230

335,800

99,U30

4,566

23,149

855,146

796,276 

696,U 9

99,827

2,039 

56,831

14,514,711

13,445,497 

7,569,356

5,876,1U1

230,939 

838,275

1,225,112

1,146,315 

925,051

221,26U

5,120 

73,677

1,628,876

1,497,411 

1,125,820

371,591

10,031 

121,434

553,463 

498,460 

U15,917

82,5 US

3,639 

51,364

N um ber of active officers, D ecem ber 3 0 ............

Number of other em ployees, D ecem ber 3 0 .. . .

71,566

312,324

128

955

36

182

71,402

311,187

864

2,813

264

1,738

817

1,654

5,168

30,873

681

2,482

797

4,053

265

962

N um ber of banks, D ecem ber 3 0 ............................ 13,446 7 7 13,432 225 10 222 191 144 92 37

N ote: D ue to rounding, earnings data of State banks m ay not add precisely to the indicated totals.

1 Includes 1 State ban k and 4 national banks in Alaska, 1 State bank in H awaii, and 1 national bank in the Virgin Islands, none of which is a m em ber of the Federal Reserve 

System .

2 Excess of tax refunds over tax paym ents.

* A sset and liability item s are averages of figures reported at beginning, m iddle, and end of year.

Back figures: See the Annual R ep ort for 1949, p p . 172-181, and earlier reports.

EARNINGS. EXPENSES, AND DIVIDENDS OF INSURED BANKS 263

Digitized for FRASER 

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Federal Reserve Bank of St. Louis
Table 117. E a r n i n g s , E x p e n s e s , a n d D iv i d e n d s o f I n s u r e d C o m m e r c ia l B a n k s , b y S t a t e , 1950— Continued

(Amounts in thousands of dollars)

Earnings or expense item District of 

Columbia Florida Georgia Idaho Illinois Indiana Iowa Kansas Kentucky Louisiana

Current operating earnings—total............. 28,610 50,948 56,722 13,858 270,454 80,345 60,834 38,861 42,216 45,013 Interest on United States Government 

obligations.................................................... 8,133 14,713 8,335 3,455 97,213 26,131 16,071 9,755 11,123 11,366 Interest and di videncls on other securities. . . 914 2,622 2,421 275 20,770 3,507 3,163 2,208 1,687 3,585 Interest and discount on loans...................... 13,147 21,049 33,735 8,223 103,163 38,220 32,839 21,074 23,900 21,556 Service charges and fees on bank’s loans___ 170 196 696 203 2,930 451 174 263 243 54 Service charges on deposit accounts............. 2,338 5,217 3,269 983 13,598 4,163 4,338 2,675 1,649 2,647 Other service charges, commissions, fees, and 

collection and exchange charges................ 745 2,389 4,122 264 4,055 2,367 1,931 910 617 2,848 Trust department............................................ 1,834 1,202 1,913 72 16,580 1,953 632 343 1,630 553 Other current operating earnings.................. 1,330 3,561 2,230 383 12,147 3,552 1,687 1,635 1,367 2,403

Current operating expenses—tota l............. 18,189 31,889 35,904 8,558 169,578 51,930 36,681 22,346 23,770 28,986 Salaries—officers.............................................. 3,077 6,074 7,474 1,914 30,066 10,256 10,188 6,821 5,919 5,488 Salaries and wages—employees..................... 6,635 9,466 9,386 2,449 50,147 13,637 8,749 5,263 6,389 8,170 Fees paid to directors and members of executive, discount, and other committees....... 210 341 495 72 1,369 728 406 369 403 426 Interest on time and savings deposits.......... 1,454 3,335 3,444 1,483 26,712 8,567 5,011 1,595 1,822 3,007 Interest and discount on borrowed money. . 6 27 40 8 303 7 5 7 52 18 Taxes other than on net income.................... 1,282 1,125 2,783 204 8,642 4,521 1,278 982 1,886 2,578 Recurring depreciation on banking house, 

furniture and fixtures.................................. 543 1,345 905 281 3,221 1,131 865 457 596 844 Other current operating expenses.................. 4,982 10,176 11,380 2,147 49,119 13,085 10,180 6,852 6,702 8,454

Net current operating earnings................... 10,422 19,059 20,818 5,300 100,877 28,415 24,154 16,516 18,446 16,027

Recoveries, transfers from reserve accounts, and profits— total...................... 1,111 2,226 1,448 355 20,992 4,801 1,666 1,279 1,466 1,753 On securities:

Recoveries.................................................... 2 195 67 90 1,202 161 115 124 135 23 Transfers from reserve accounts................

Profits on securities sold or redeemed. . . .

13

155

126

965

4

520 124

980

6,981

1,300

773

14

396 311

5

428

501

359 On loans:

Recoveries..................................................... 402 267 500 77 2,031 559 356 456 298 495 Transfers from reserve accounts................ 13 6 85 14 3,255 287 98 82 337 72 All other........................................................... 526 667 273 51 6,541 1,722 688 305 263 302

Losses, charge-offs, and transfers to reserve accounts— tota l.............................. 1,707 2,299 3,903 711 30,946 9,008 3,962 2,978 3,838 3,945 On securities:

Losses and charge-offs................................. 169 435 409 59 5,149 765 693 457 340 398 Transfers to reserve accounts....................

On loans:

Losses and charge-offs.................................

6

19

75

250

12

431 63

2,608

996

1,299

389

10

377

15

691

221

378

526

364 Transfers to reserve accounts.................... 792 1,000 2,213 505 16,828 3,156 2,013 1,088 2,270 1,502 All other........................................................... 720 539 838 84 5,364 3,400 869 728 630 1,156

Net profits before incom e taxes................... 9,826 18,985 18,363 4,944 90,923 24,206 21,858 14,816 16,074 13,835

264 FEDERAL DEPOSIT INSURANCE CORPORATION

Digitized for FRASER 

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Federal Reserve Bank of St. Louis
Taxes on net incom e— tota l..........................

Federal..............................................................

State..................................................................

3.465

3.465

5.596

5.596

5.988

5.988

1,813

1,480

334

25.522

25.522

6.893

6.893

5.428

5.428

3.978

3.978

4.648

4.648

4.006

4.006

Net profits after incom e taxes......................

Dividends and interest on capital—to ta l..

Dividends declared on preferred stock and 

interest on capital notes and debentures 

Cash dividends declared on common stock..

Net additions to capital from profits.........

6,361 13,389 12,377 3,131 65,401 17,313 16,431 10,837 11,427 9,830

2.913

2.913

3.055

3.055

4,966

64

4,902

768

2

767

23,182

75

23,106

4,830

72

4,759

4,409

57

4,352

2,806

4

2,802

3,836

26

3,810

2,845

21

2,824

3,448 10,334 7,410 2,363 42,220 12,483 12,022 8,031 7,590 6,985

Memoranda 

Recoveries credited to reserve accounts (not 

included in recoveries above):

On securities..................................................... 1

66

1

434

1

349

5

708

36

915

141

1,681

19

658

24

1,077

8

245

53

635

8

99

15

465

On loans............................................................

Losses charged to reserve accounts (not included in losses above):

On securities.....................................................

138 18 137

19

458

221

On loans............................................................ 364 62 555

Average assets and liabilities1 

Assets—tota l......................................................

Cash and due from banks..............................

United States Government obligations........

Other securities................................................

Loans and discounts........................................

Ail other assets................................................

Liabilities and capital—total........................

Total deposits..................................................

Demand deposits....................................................

Tim e and savings deposits.................................

Borrowings and other liabilities.....................

Total capital accounts....................................

1,176,007

282,278

510,329

47,361

316,006

20,033

2,005,511

505,928

933,773

116,434

424,197

25,179

1,786,739

474,162

525,613

91,631

674,056

21,277

440,643

83,633

185,916

11,484

155,962

3,648

13,326,594

3,077,508

6,206,191

1,003,218

2,954,164

85,513

3,332,130

731,243

1,614,438

186,888

774,395

25,166

2,340,789

494,541

914,524

194,164

723,546

14,014

1,577,743

400,598

598,091

135,020

435,846

8,188

1,643,580

400,554

663,544

71,010

496,701

11,771

1,863,634

501,368

740,319

159,009

438,424

24,514

1,176,007

1,095,565

875,931

219,63b

6,991

73,451

2,005,511

1,875,350

1,526,919

8U8,U81

9,051

121,110

1,786,739

1,647,522

l,330,b86

317,036

16,735

122,482

440,643

416,080

315,526

100,55k

2,069

22,494

13,326,594

12,474,711

9,319,653

3,155,058

66,303

785,580

3,332,130

3,122,556 

2,238,26^

88b,292

13,535 

196,039

2,340,789

2,189,029 

1,676,7U7

512,282

3,322 

148,438

1,577,743

1,480,165 

1,325,382

15 U,7 83

3,610 

93,968

1,643,580

1,518,433 

1,291,97b

226,b59

7,549 

117,598

1,863,634

1,751,806

l,b6b,921

286,885

13,789

98,039

Number of active officers, December 30..........

Number of other employees, December 3 0 ....

361

2,652

1,054

4,322

1,374

4,315

304

1,053

4,361

19,819

2,052

6,526

2,077

4,254

1,540

2,652

1,379

3,364

879

3,643

Number of banks, December 30........................ 19 195 331 42 876 475 606 466 362 164

Note: Due to rounding, earnings data of State banks may not add precisely to the indicated totals.

1 Asset and liability items are averages of figures reported at beginning, middle, and end of year.

Back figures: See the Annual Report for 1949, pp. 172-181, and earlier reports.

EARNINGS, EXPENSES, AND DIVIDENDS OF INSURED BANKS 265

Digitized for FRASER 

http://fraser.stlouisfed.org/ 

Federal Reserve Bank of St. Louis
Table 117. E a r n in g s , E x p e n s e s , a n d D iv id e n d s o f I n s u r e d C o m m e r c ia l B a n k s , b y St a t e , 1950—Continued

(Amounts in thousands of dollars)

Earnings or expense item Maine Maryland Massachusetts Michigan Minnesota Mississippi Missouri Montana Nebraska Nevada New

Hampshire

Current operating earnings—total............. 13,883 38,191 113,668 140,525 82,400 24,042 105,854 14,839 31,402 5,335 7,448

Interest on United States Government 

obligations.................................................... 3,312 12,302 30,272 40,600 20,843 4,652 24,167 4,693 8,744 1,335 1,532

Interest and dividends on other securities. . . 652 1,431 4,897 7,273 4,442 2,679 5,810 546 1,465 179 352

Interest and discount on loans...................... 8,053 18,542 52,061 74,535 40,452 11,393 61,345 7,056 16,071 3,017 4,293

Service charges and fees on bank’s loans.... 48 85 586 1,362 425 59 502 112 76 99 19

Service charges on deposit accounts.............. 855 2,447 7,226 7,115 4,634 1,311 4,312 1,216 2,200 235 682

Other service charges, commissions, fees, and 

collection and exchange charges................ 200 794 2,696 3,551

2,076

6,599 3,089 2,977 545 1,032 82 135

Trust department............................................ 387 1,129 8,693 2,114 117 3,027 62 353 152 121

Other current operating earnings.................. 377 1,461 7,237 4,014 2,892 743 3,715 608 1,463 237 315

Current operating expenses—tota l............. 9,319 24,923 73,317 89,961 53,320 15,159 62,207 9,215 19,097 3,462 5,004

Salaries— officers.............................................. 1,602 4,104 12,529 13,774 12,760 3,939 12,995 2,211 5,494 605 994

Salaries and wages—employees..................... 2,445 7,391 24,039 28,180 14,150 3,725 19,009 2,286 4,685 1,057 1,221

Fees paid to directors and members of executive, discount, and other committees....... 171 420 712 827 677 243 698 67 292 11 97

Interest on time and savings deposits.......... 1,972 3,940 7,014 18,440 8,986 1,169 6,254 762 1,154 776 931

Interest and discount on borrowed money. . 15 59 134 36 99 8 86 17 55 4

Taxes other than on net income.................... 521 1,561 2,977 4,328 1,064 1,090 2,820 955 974 224 215

Recurring depreciation on banking house, 

furniture and fixtures.................................. 165 576 2,130 2,223 1,097 352 1,541 282 439 99 154

Other current operating expenses.................. 2,428 6,872 23,784 22,154 14,490 4,635 18,803 2,637 6,002 690 1,387

Net current operating earnings................... 4,565 13,268 40,351 50,564 29,080 8,883 43,647 5,624 12,305 1,874 2,445

Recoveries, transfers from reserve a ccounts, and profits—total...................... 596 1,897 9,115 4,141 2,261 767 4,271 1,320 2,512 84 321

On securities:

Recoveries................................................... 81 237 231 170 296 116 1,436

206

1,351

386 62 127

Transfers from reserve accounts................

Profits on securities sold or redeemed. . . .

3

181

333

646

1,946

2,861

110

1,283

104

360

42

133

205

53

1,197

738 14 50

On loans:

Recoveries.................................................... 128 250 1,104 410 860 189 634 461 237 14 60

Transfers from reserve accounts................ 88 287 1,859 1,344 61 34 142 103 71 46 27

All other........................................................... 115 143 1,115 824 581 252 504 112 208 9 56

Losses, charge-offs, and transfers to reserve accounts—tota l.............................. 1,121 2,983 14,412 11,309 5,000 2,617 8,072 3,118 2,776 153 776

On securities:

Losses and charge-offs................................. 181 494 1,330 1,060 408 518 1,857 383 466 3 141

Transfers to reserve accounts . . 10 65 2,744

229

656 92 227 664 1,250

603

369 130

On loans:

Losses and charge-offs................................. 164 229 742 1,035 266 914 172 10 135

Transfers to reserve accounts.................... 583 1,239 6,852 7,799 2,408 1,238 3,478 650 1,079 117 288

All other........................................................... 182 956 3,256 1,051 1,058 368 1,159 233 691 24 82

Net profits before incom e taxes................... 4,041 12,181 35,055 43,397 26,341 7,033 39,848 3,826 12,041 1,804 1,989

FEDERAL DEPOSIT INSURANCE CORPORATION

Digitized for FRASER 

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Federal Reserve Bank of St. Louis
Taxes on net income— total..........................

Federal..............................................................

State.................. ...............................................

1.213

1.213

4.100

4.100

12,196

9,530

2,666

13.643

13.643

8,429

6,892

1,537

1.670

1.670

12,483

11,919

563

1,462

1,406

55

2.980

2.980

635

635

599

599

Net profits after income taxes......................

Dividends and interest on capital—total..

Dividends declared on preferred stock and 

interest on capital notes and debentures.. 

Cash dividends declared on common stock..

Net additions to capital from profits.........

2,829 8,081 22,858 29,754 17,912 5,363 27,365 2,365 9,062 1,169 1,389

1,138

9

1,129

3,683

28

3,655

12,942

19

12,923

10,723

186

10,537

6,382

51

6,331

1,597

57

1,540

9,605

58

9,547

1,273

5

1,269

2,553

3

2,550

187

187

570

570

1,690 4,398 9,917 19,031 11,530 3,766 17,760 1,092 6,508 982 820

Memoranda

Recoveries credited to reserve accounts (not 

included in recoveries above):

On securities..................................................... 27

571

18

1,588

46 

459

47 

1,092

1

178

31

364

On loans............................................................

Losses charged to reserve accounts (not included in losses above):

On securities.....................................................

On loans............................................................

194

2

325

198

6

514

1,058

67

1,565

257

13

614

131

29

475

117

199

57

96

75

7

251

Average assets and liabilities1

Assets—total......................................................

Cash and due from banks..............................

United States Government obligations........

Other securities................................................

Loans and discounts........................................

All other assets.................................................

Liabilities and capital—total........................

Total deposits...................................................

Demand deposits...........................................

Time and savings deposits...........................

Borrowings and other liabilities....................

Total capital accounts....................................

448,106

81,139

180,163

30,866

151,523

4,415

1,643,379

358,689

784,254

70,137

409,394

20,905

4,507,456

963,192

1,861,140

254,038

1,352,148

76,938

5,739,443

1,133,606

2,658,876

418,893

1,479,533

48,535

3,046,112

667,797

1,215,989

242,026

895,743

24,557

814,377

213,796

268,842

118,284

206,010

7,445

4,584,724

1,192,740

1,595,569

287,390

1,473,239

35,786

595,934

140,987

298,614

27,745

124,379

4,209

1,334,042

338,730

548,663

88,092

350,210

8,347

182,328

31,316

84,274

9,441

54,945

2,352

236,893

52,544

82,815

15,914

83,571

2,049

448,106

405,131

229,672

175,1+59

3,097

39,878

1,643,379

1,523,447 

1,101,1+56

1+21,991

9,788 

110,144

4,507,456

4,076,162

3,330,991+

71+5,168

63,028

368,266

5,739,443

5,393,814

3,233,361

2,160,1+53

39,278

306,351

3,046,112 

2,832,444 

1,967,961+

861+, U80

20,243 

193,425

814,377

760,559

627,338

133,221

2,506

51,312

4,584,724

4,289,386 

3,588,01+0

701,31+6

24,553 

270,785

595,934

567,827

1+69,512

98,315

2,028

26,079

1,334,042

1,251,781

1,113,932

137,81+9

3,195

79,066

182,328

170,611

109,61+1

60,970

1,326

10,391

236,893 

.211,980 

‘ 11+5,61+6

66,331+

827 

24,086

N um ber of active officers, D ecem ber 30..........

N um ber of other em ployees, D ecem ber 30 ... .

305

1,202

822

3,613

1,600

10,770

1,951

11,247

2,547

6,475

806

1,851

2,488

8,913

415

1,075

1,181

2,316

104

441

206

592

N um ber of banks, D ecem ber 30........................ 53 162 174 414 661 197 576 110 367 8 58

Note: Due to rounding, earnings data of State banks may not add precisely to the indicated totals.

* Asset and liability items are averages of figures reported at beginning, middle, and end of year.

Back figures: See the Annual Report for 1949, pp. 172-181, and earlier reports.

E A R N IN G S , E X P E N S E S , AND D IV ID E N D S OF INSURED B A N K S

Digitized for FRASER 

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Federal Reserve Bank of St. Louis
Table 117. E a r n i n g s , E x p e n s e s , a n d D iv i d e n d s o f I n s u r e d C o m m e r c ia l B a n k s , b y S t a t e , 1950—Continued

(Amounts in thousands of dollars)

Earnings or expense item New

Jersey

New

Mexico

New

York

North

Carolina

North

Dakota Ohio Oklahoma Oregon Pennsylvania Rhode

Island

South

Carolina

Current operating earnings—tota l............. 130,812 10,913 715,367 53,601 13,373 190,149 47,986 39,393 301,269 18,088 18,537

Interest on United States Government 

obligations.................................................... 40,125 1,932 192,224 9,802 4,271 55,456 9,904 9,884 83,445 5,851 4,258

Interest and dividends on other securities.. . 9,716 230 41,699 2,868 490 11,672 2,396 2,681 26,657 458 1,004

Interest and discount on loans...................... 60,457 7,068 321,343 29,334 5,350 90,607 28,197 20,737 136,250 8,952 9,364

Service charges and fees on bank’s loans.... 408 322 5,673 776 105 1,158 157 196 1,087 10 30

Service charges on deposit accounts............. 8,436 597 31,438 2,948 941 9,609 3,349 3,052 10,348 813 1,465

Other service charges, commissions, fees, and 

collection and exchange charges................ 1,625 278 13,887 4,487 1,796 3,633 1,051 801 4,314 186 1,702

Trust department............................................ 4,781 121 63,382 1,711 53 8,561 396 737 22,288 753 377

Other current operating earnings.................. 5,265 366 45,721 1,677 370 9,454 2,539 1,305 16,883 1,065 339

Current operating expenses—tota l............. 90,732 6,376 436,924 32,396 7,814 122,456 26,505 25,508 186,621 12,597 10,722

Salaries—officers.............................................. 13,959 1,481 67,298 7,471 2,190 18,468 7,525 4,828 31,135 1,657 2,754

Salaries and wages—employees..................... 26,092 2,019 168,369 8,698 1,781 33,333 7,395 9,019 57,460 3,430 3,084

Fees paid to directors and members of executive, discount, and other committees....... 1,337 60 3,146 328 97 1,192 268 90 2,810 138 150

Interest on time and savings deposits.......... 17,267 417 30,562 4,136 1,115 22,308 1,152 4,053 27,575 2,702 833

Interest and discount on borrowed money. . 86 4 2,198 77 1 149 24 19 171 4 5

Taxes other than on net income.................... 5,195 263 16,770 1,233 242 14,067 588 593 9,784 923 166

Recurring depreciation on banking house, 

furniture and fixtures.................................. 3,104 208 7,206 928 154 2,982 885 909 5,241 298 357

Other current operating expenses.................. 23,692 1,925 141,377 9,527 2,236 29,957 8,668 5,997 52,446 3,443 3,375

Net current operating earnings................... 40,080 4,539 278,442 21,205 5,560 67,693 21,482 13,886 114,647 5,491 7,815

Recoveries, transfers from reserve accounts, and profits—total...................... 10,048 403 61,846 2,170 232 6,791 1,324 1,357 53,666 1,092 391

On securities:

Recoveries..................................................... 660 1 2,408 60 22 631 122 67 1,499 199 71

Transfers from reserve accounts................

Profits on securities sold or redeemed. . . .

1,104

4,152 11

13,096

20,037

66

1,251

39

40

492

1,697

7

351 1,026

13,673

32,550

19

486

25

69

On loans:

Recoveries..................................................... 1,392 291 5,605 236 63 657 539 152 2,258 36 63

Transfers from reserve accounts................ 1,338 9 14,400 91 5 1,264 64 4 856 163 12

All other........................................................... 1,401 93 6,299 465 63 2,049 241 108 2,831 189 151

Losses, charge-offs, and transfers to reserve accounts—tota l.............................. 10,790 1,149 68,250 4,178 971 14,801 3,055 3,270 57,214 1,293 1,249

On securities:

Losses and charge-offs................................. 1,558 36 3,902 805 98 1,046 333 684 3,779 18 218

Transfers to reserve accounts....................

On loans:

Losses and charge-offs.................................

955

705 317

5,558

1,496

94

219

12

97

661

548

48

776 61

28,017

1,528

4

32

4

136

Transfers to reserve accounts.................... 6,034 620 47,008 2,427 509 10,385 1,290 1,835 18,924 883 720

All other........................................................... 1,538 175 10,287 633 256 2,162 608 690 4,966 356 171

Net profits before incom e taxes................... 39,338 3,792 272,037 19,197 4,821 59,682 19,752 11,974 111,100 5,289 6,957

268 FEDERAL DEPOSIT INSURANCE CORPORATION

Digitized for FRASER 

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Federal Reserve Bank of St. Louis
Taxes on net incom e— tota l..........................

Federal..............................................................

State..................................................................

8,801

8,801

1.059

1.059

86,391

76,146

10,245

6,604

6,394

210

1,415

1,339

76

17.713

17.713

6,226

5,637

590

3,790

2,856

934

29,574

29,572

2

1,845

1,646

198

2,433

2,177

256

Net profits after incom e taxes......................

Dividends and interest on capital—to ta l..

Dividends declared on preferred stock and 

interest on capital notes and debentures.. 

Cash dividends declared on common stock..

Net additions to capital from profits.........

30,538 2,733 185,647 12,594 3,405 41,970 13,526 8,184 81,525 3,445 4,524

8,889

1,117

7,773

706

2

704

104,977

1,346

103,631

3,748

15

3,733

1,112

4

1,108

14,163

143

14,020

4.260

4.260

2,796

1

2,795

34,752

167

34,585

1,688

1,688

1,563

9

1,554

21,649 2,027 80,671 8,846 2,293 27,807 9,266 5,388 46,773 1,757 2,962

Memoranda

Recoveries credited to reserve accounts (not 

included in recoveries above):

On securities..................................................... 229

482

146

1,184

1,732

3,720

1,817

11,869

12

92

32

433

1

100

213

780

190

2,219

213

1,004

603

3,758

On loans............................................................

Losses charged to reserve accounts (not included in losses above):

On securities.....................................................

140 264 103 36

4

262

70

On loans............................................................ 332 158 663 727 234

Average assets and liabilities1

Assets— tota l......................................................

Cash and due from banks..............................

United States Government obligations.........

Other securities................................................

Loans and discounts........................................

All other assets.................................................

Liabilities and capital— total........................

Total deposits..................................................

Demand deposits...........................................

Time and savings deposits............................

Borrowings and other liabilities....................

Total capital accounts....................................

5,011,114

810,075

2,374,837

482,060

1,273,741

70,401

358,586

106,517

125,317

11,513

112,124

3,115

34,433,342

8,335,155

12,894,784

2,096,941

10,607,768

498,694

1,883,659

474,243

606,146

167,857

613,565

21,848

483,012

81,195

265,580

27,748

105,645

2,844

7,957,966

1,625,914

3,521,545

602,415

2,127,495

80,597

1,791,085

540,098

634,166

131,377

472,673

12,771

1,413,938

289,218

556,146

119,365

428,054

21,155

11,481, €92

2,319,800

4,778,187

1,115,108

3,118,129

150,468

703,722

115,864

345,928

19,376

211,547

11,007

688,273

179,344

267,845

54,224

181,399

5,461

5,011,114

4,649,030

2,615,2^8

2,033,782

30,036

332,048

358,586

339,056

293,189

45,867

808

18,722

34,433,342

30,722,160

26,498,865

4,223,295

833,114

2,878,068

1,883,659

1,731,571

1,336,364

395,207

24,034

128,054

483,012

455,573

344,370

111,203

1,540

25,899

7,957,966

7,420,247

4,784,599

2,635,648

43,850

493,869

1,791,085

1,666,289

1,538,800

127,489

5,904

118,892

1,413,938

1,320,061

945,945

374,116

9,026

84,851

11,481,692

10,311,085

7,225,104

3,085,981

74,346

1,096,261

703,722

645,784

430,989

214,795

7,618

50,320

688,273

642,055

553,855

88,200

3,450

42,768

Number of active officers, December 30..........

Number of other employees, December 30 ... .

2,122

11,285

261

899

6,868

61,408

1,291

4,030

479

927

3,125

14,110

1,506

3,524

823

3,699

4,900

23,907

232

1,635

546

1,506

Number of banks, December 30........................ 320 51 622 224 145 650 375 68 954 12 131

Note: Due to rounding, earnings data of State banks may not add precisely to the indicated totals.

1 Asset and liability items are averages of figures reported at beginning, middle, and end of year.

Back figures: See the Annual Report for 1949, pp. 172-181, and earlier reports.

EARNINGS, EXPENSES, AND DIVIDENDS OF INSURED BANKS

Digitized for FRASER 

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Federal Reserve Bank of St. Louis
Table 117. E a r n in g s , E x p e n s e s , a n d D iv id e n d s o f I n s u r e d C o m m e r c ia l B a n k s , b y S t a t e , 1950—Continued

(Amounts in thousands of dollars)

Earnings or expense item South

Dakota Tennessee Texas Utah Vermont Virginia Washington West

Virginia Wisconsin Wyoming

Current operating earnings—to ta l............. 15,192 59,216 183,803 18,500 9,474 60,888 57,425 28,455 75,362 7,465

Interest on United States Government

obligations.................................................... 3,811 11,535 36,262 3,823 1,546 12,617 11,829 7,820 24,965 1,712

Interest and dividends on other securities. . . 625 3,630 8,006 501 496 2,133 4,317 987 4,536 241

Interest and discount on loans...................... 7,485 36,342 111,369 10,953 6,355 37,161 31,376 15,931 35,541 4,225

Service charges and fees on bank’s loans___ 60 406 1,416 498 54 459 419 181 437 79

Service charges on deposit accounts............. 1,154 1,804 9,103 946 467 3,045 4,979 1,106 4,229 526

Other service charges, commissions, fees, and

collection and exchange charges................ 1,523 2,151 4,724 674 128 1,301 1,506 564 1,771 228

Trust department............................................ 49 1,231 2,736 403 168 2,282 1,328 796 1,063 81

Other current operating earnings.................. 487 2,117 10,188 704 260 1,892 1,672 1,072 2,819 374

Current operating expenses—tota l............. 9,074 35,092 108,532 10,935 6,913 37,717 37,235 16,520 50,254 4,285

Salaries— officers.............................................. 2,784 6,846 25,765 2,001 1,045 7,518 7,036 3,378 10,733 1,115

Salaries and wages—employees..................... 2,095 9,289 29,605 2,971 1,359 9,854 12,651 4,208 12,610 1,160

Fees paid to directors and members of executive, discount, and other committees....... 133 318 1,212 195 136 579 207 272 829 69

Interest on time and savings deposits.......... 981 5,356 5,491 2,395 2,574 7,152 5,137 2,970 10,627 394

Interest and discount on borrowed money. . 2 107 34 11 3 26 14 27 45 7

Taxes other than on net income.................... 222 2,523 10,179 200 146 2,006 969 726 1,193 226

Recurring depreciation on banking house,

furniture and fixtures.................................. 216 912 3,416 230 146 1,346 1,167 542 1,286 158

Other current operating expenses.................. 2,640 9,741 32,832 2,931 1,506 9,237 10,056 4,395 12,931 1,156

Net current operating earnings................... 6,119 24,124 75,271 7,565 2,561 23,171 20,191 11,936 25,108 3,181

Recoveries, transfers from reserve accounts, and profits—tota l...................... 256 3,197 7,454 591 526 1,595 1,285 968 2,573 183

On securities:

Recoveries..................................................... 16 578 556 10 36 116 36 33 198 5

Transfers from reserve accounts................ 303 432 5 13 32 110

Profits on securities sold or redeemed. . . . 46 1,255 804 221 144 373 441 228 836 29

On loans:

Recoveries..................................................... 68 355 2,458 180 158 432 157 270 246 98

Transfers from reserve accounts................ 15 30 487 1 108 200 9 80 284

All other........................................................... 110 676 2,716 180 75 462 610 357 900 52

Losses, charge-offs, and transfers to reserve accounts—total.............................. 1,138 6,449 18,265 1,087 789 3,339 5,518 2,030 4,689 664

On securities:

Losses and charge-offs................................. 102 1,917 2,166 100 87 424 437 283 924 78

Transfers to reserve accounts.................... 25 401 292 5 65 1,367 3 68

On loans:

Losses and charge-offs................................. 97 475 3,361 193 187 633 180 313 353 154

Transfers to reserve accounts.................... 776 2,255 9,213 561 453 1,752 2,733 962 2,698 261

All other........................................................... 139 1,402 3,233 233 58 465 802 470 645 171

Net profits before incom e taxes................... 5,236 20,873 64,460 7,070 2,298 21,427 15,958 10,874 22,992 2,700

FEDERAL DEPOSIT INSURANCE CORPORATION

Digitized for FRASER 

http://fraser.stlouisfed.org/ 

Federal Reserve Bank of St. Louis
Taxes on net incom e—to ta l..........................

Federal..............................................................

State..................................................................

1,581

1,448

183

6,032

5,933

99

20.290

20.290

2,691

2,520

171

559

493

66

6.646

6.646

3.988

3.988

3.569

3.569

6,085

5,943

142

834

834

Net profits after incom e taxes...................... 3,654 14,841 44,170 4,380 1,739 14,783 11,970 7,306 16,907 1,866

Dividends and interest on capital—to ta l..

Dividends declared on preferred stock and 

interest on capital notes and debentures.. 

Cash dividends declared on common stock..

1,214

4

1,210

4,533

42

4,491

15,691

19

15,672

1,550

8

1,542

659

130

530

5,294

49

5,245

4,053

2

4,051

2,475

12

2,463

5,355

140

5,216

512

7

506

Net additions to capital from profits......... 2,440 10,307 28,479 2,830 1,080 9,488 7,916 4,832 11,552 1,353

Memoranda

Recoveries credited to reserve accounts (not 

included in recoveries above):

On securities..................................................... 7 129 10

244

Q

10

339

QQ

On loans...........................................................

Losses charged to reserve accounts (not included in losses above):

On securities.....................................................

52 342

1

1,241

133

4,304

80

185

174

129

Q

337 137

1

341

79

On loans............................................................ 107 504 197 773

1,6 DO

817

OO

866

2

175

Average assets and liabilities1

Assets—tota l......................................................

Cash and due from banks..............................

United States Government obligations.........

Other securities................................................

Loans and discounts........................................

Ail other assets.................................................

524,452

105,895

245,299

30,321

139,249

3,688

2,102,093

530,424

681,357

144,326

722,437

23,549

7,294,544

2,290,277

2,291,817

346,652

2,270,839

94,959

605,721

137,828

224,070

25,722

213,008

5,093

276,903

42,508

81,448

22,809

127,272

2,866

2,068,144

475,508

753,155

94,734

717,464

27,283

2,034,910

458,643

733,826

188,097

634,268

20,076

1,005,029

227,051

442,321

45,006

279,332

11,319

3,197,102

623,627

1,496,577

237,825

811,079

27,994

271,787

73,565

111,814

11,942

72,598

1,868

Liabilities and capital—total........................

Total deposits...................................................

Demand deposits...........................................

Time and savings deposits............................

Borrowings and other liabilities.....................

Total capital accounts....................................

524,452

492,973

U08,1U6

89,827

1,591

29,888

2,102,093

1,959,210

1,U99,1>67

U59,7U8

11,779

131,104

7,294,544

6,846,556

6,189,689

656,867

32,537

415,451

605,721

565,544 

383,U6

182,098

3,349 

36,828

276,903

247,404

95,372

152,032

1,559

27,940

2,068,144

1,899,862

1,275,526

62^,836

14,309

153,973

2,034,910

1,907,304

1,879,U97

527,807

9,596

118,010

1,005,029

918,665

660,608

258,057

4,971

81,393

3,197,102

2,993,056

1,758,988

1,289,078

8,492

195,554

271,787

255,422

209,185

46,287

898

15,467

Number of active officers, December 30..........

Number of other employees, December 3 0 ... .

633

1,049

1,374

4,428

4,451

13,304

322

1,290

241

636

1,494

4,779

1,083

5,027

645

1,858

2,027

5,666

217

490

Number of banks, December 30........................ 163 289 861 55 69 313 115 176 543 53'

Note: Due to rounding, earnings data of State banks may not add precisely to the indicated totals,

i Asset and liability items are averages of figures reported at beginning, middle, and end of year.

Back figures: See the Annual Report for 1949, pp. 172-181, and earlier reports.

EARNINGS, EXPENSES, AND DIVIDENDS OF INSURED BANKS

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Federal Reserve Bank of St. Louis
Table 118. E a r n i n g s , E x p e n s e s , a n d D iv id e n d s o f I n s u r e d M u t u a l Sa v in g s B a n k s , 1942-1950

(Amounts in thousands of dollars)

Earnings, expense, asset or liability item 1942 1943 1944 1945 194 6 1947 1948

|

1949 1950

Current operating earnings— tota l............... 76,287 273,479 295,709 322,795 350,951 375,592 403,156 436,869 478,695

Interest, discount, and other income on real 

estate loans..................................................... 31,212 137,950 140,002 141,001 142,538 151,174 166,308 191,372 231,730

Interest, discount, and income on other loans 1,119 1,241 1,260 1,627 1,893 2,114 2,477 2,615 3,198

Interest on U. S. Government obligations, 

direct and guaranteed..................... ............. 17,134 76,510 97,856 135,627 171,139 184,900 184,139 183,106 182,457

Interest and dividends on other securities.... 16,923 24,607 29,694 24,652 22,609 24,386 35,748 45,165 46,134

Collection and exchange charges, commissions, and fees................................................ 154 321 538 1,033 1,301 1,329 1,214 1,450 1,567

Other current operating earnings.................... 9,745 32,850 26,359 18,855 11,471 11,689 13,270 13,161 13,609

Current operating expenses—tota l............... 24,520 87,847 86,575 77,705 85,523 93,613 100,768 104,187 115,470

Salaries—officers................................................ 2,715 9,467 10,093 10,567 11,967 13,271

31,247

14,267 15,181 16,434

Salaries and wages—employees.......................

Directors', trustees’ , and managers’ fees1. . . .

5,915 19,792 20,658 22,179 26,938 34,156 35,809 38,526

389 1,704 1,903 855 1,045 1,142 1,211 1,313 1,620

Taxes other than on net income...................... 5,104 17,015 14,838 8,410 7,243 6,891 6,418 6,411 7,025

Recurring depreciation on banking house, 

furniture and fixtures.................................... 743 3,046 3,359 2,649 2,574 2,550 2,705 3,127 2,887

Other current operating expenses.................... 9,654 36,823 35,724 33,045 35,756 38,512 42,011 42,346 48,978

Net current operating earnings..................... 51,767 185,632 209,134 245,090 265,428 281,979 302,388 332,682 363,225

Dividends (interest) paid on deposits.......... 33,209 117,985 132,430 143,350 160,134 181,225 196,096 235,800 257,770

Net operating earnings after dividends o n 

deposits......................................................... 18,558 67,647 76,704 101,740 105,294 100,754 106,292 96,882 105,455

Profits and recoveries on assets—to ta l........ 19,092 129,160 101,473 181,982 186,720 99,548 59,897 77,797 74,127

Recoveries on securities2................................... 5,164 40,402 31,423 47,560 34,920 32,443 14,514 20,094 21,759

Profits on securities sold or exchanged........... 7,112 31,376 30,677 79,389 89,554 27,770 6,705 33,205 24,344

Recoveries on loans2.......................................... 653 11,094 14,763 4,055 2,097 1,266 411 443 303

All other profits and recoveries3....................... 6,163 46,288 24,610 50,978 60,149 38,069 38,267 24,055 27,721

Losses and charge-offs—tota l......................... 33,486 168,891 113,691 135,783 142,499 111,998 76,792 88,143 83,121

10,379 32,818 17,625 36,635 72,320 58,587 23,872 30,861 23,383

9,211 74,327 68,179 28,825 3,375 4,472 7,233 8,610 8,496

All other3............................................................. 13,896 61,746 27,887 70,323 66,804 48,939 45,687 48,672 51,242

272 FEDERAL DEPOSIT INSURANCE CORPORATION

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Federal Reserve Bank of St. Louis
Net profits before incom e taxes.............

Taxes on net in com e .................................

Net profits after incom e taxes................

Interest o n capital debentures..............

Net profits after interest and dividends

Average assets and liabilities6

Assets— to ta l................................................

Cash and due from banks.........................

U. S. Government obligations.................

Other securities..........................................

Real estate loans........................................

Other loans and discounts........................

All other assets...........................................

Liabilities and capital— tota l..................

Total deposits.............................................

Demand deposits..................................... .

Time and savings deposits......................

Borrowings and other liabilities................

Total surplus and capital accounts.........

Number of active officers, December 31..., 

Number of other employees, December 31.

Number of banks, December 317..................

4,164

4,131

318

3,813

2,089,328

141,377

725,595

416,107

661,599

30,078

114,572

2,089,328

1,900,429

l,900,b29

6,656

182,243

363

2,884

27,916

345

27,571

294

27,277

7,945,687

494,112

3,322,146

663,101

3,104,849

28,145

333,334

7,945,687

7,134,660

7,13 b,660

22,331 

788,696

1,209

9,581

64,486

122

64,364

482

63,882

9,164,873

449,751

4,723,004

628,821

3,085,567

30,372

247,358

9,164,873

8.280.998

8.280.998

23,974

859,901

1,276

9,719

192

147,939

2,034

145,905

271

145,634

10,636,400

416,762

6,345,344

605,362

3,056,494

36,934

175,504

10,636,400

9,648,308

9,6b8,308

27,085

961,007

1,337

10,852

192

149,515

5,759

143,756

264

143,492

12,066,095

530,271

7,588,938

653,589

3,112,879

41,588

138,830

12,066,095

10,923,361

13,198

10,910,163

32,934

1,109,800

1,410

11,414

191

88,304

5,992

82,312

248

82,064

13,128,837

649,906

8,127,449

814,360

3,352,063

48,173

136,886

13,128,837

11,869,717

13,565

11,856,152

42,064

1,217,056

1,494

11,599

194

89,397

4,501

84,896

234

84,662

13,860,655

667,792

8,042,934

1,189,924

3,756,276

56,597

147,132

13,860,655

12,519,862

lb,395

12,505,1+67

44,618 

1,296,175

1,527

11,930

193

4,341

82,195

230

81,965

14,627,136

665,128

7,855,590

1,504,437

4,382,035

58,135

161,811

14,627,136

13,201,208 

U.752

13,186,U56

47,638 

1,378,290

1,567

12,331

192

96,461

5,061

91,400

225

91,175

1 Includes professional fees from 1942 through 1944.

* Jn JSJf2-1944; and for banks not submitting reports to FDIC in 1945-1947, includes reductions in valuation reserves.

? T for banks submitting reports to FDIC and in 1948-1950 for all banks, includes all reductions in valuation reserves.

t r fo^ banks not submitting reports to FDIC in 1945-1947, includes additions to valuation reserves.

« In 1945-1947 for banks submitting reports to FDIC and in 1948-1950 for all banks, includes all additions to valuation reserves.

® Asset and liability items are averages of figures reported at beginning, middle, and end of year.

7 Includes 3 mutual savings banks, members of the Federal Reserve System.

Baek figures: See the Annual Report for 1941, p. 173.

15,543,290

652,709

7,754,675

1,561,408

5,327,950

68,178

178,370

15,543,290

14,013,217

17,90b

13,995,313

63,722

1,466,351

1,650

12,870

194

to

COEXPENSES. AND DIVIDENDS OF INSURED BANKS

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Federal Reserve Bank of St. Louis
to

k£-*

Table 119. R a t io s o f E a r n in g s , E x p e n s e s , a n d D iv id e n d s o f I n s u r e d M u t u a l S a v in g s B a n k s , 1942-1950

Earnings or expense item 1942 1943 1944 1945 1946 1947 1948 1949

j

1950

Amounts per $100 of current operating 

earnings

Current operating earnings—tota l............... $100.00 $100.00 $100.00 $100.00 $100.00 $100.00 $100.00 $100.00 $100.00

Income on real estate loans.............................. 40.91 50.44 47.84 43.68 40.62 40.25 41.25 43.81 48.41

Income on other loans...................................... 1.47 .46 .43 .50 .54 .56 .61 .60 .67

Interest on U. S. Government obligations. . . 22.46 27.97 33.09 42.02 48.76 49.23 45.68 41.91 38.11

Interest and dividends on other securities---- 22.18 9.00 10.04 7.64 6.44 6.49 8.87 10.34 9.64

Collection and exchange charges, commissions, and fees................................................ .20 .12 .18 .32 .37 .36 .30 .33 .33

Other current operating earnings.................... 12.78 12.01 8.92 5.84 3.27 3.11 3.29 3.01 2.84

Current operating expenses—tota l............... 32.14 32.12 29.28 24.07 24.37 24.92 24.99 23.85 24.12

Salaries, wages and fees1................................... 11.82 11.32 11.04 10.41 11.38 12.16 12.31 11.97 11.82

Taxes other than on net income...................... 6.69 6.22 5.02 2.60 2.06 1.83 1.59 1.47 1.47

Recurring depreciation on banking house, 

furniture and fixtures.................................... .97 1.11 1.14 .82 .74 .68 .67 .72 .60

Other current operating expenses.................... 12.66 13.47 12.08 10.24 10.19 10.25 10.42 9.69 10.23

Net current operating earnings..................... 67.86 67.88 70.72 75.93 75.63 75.08 75.01 76.15 75.88

Dividends (interest) paid on deposits.......... 43.53 43.14 44.78 44.41 45.63 48.25 48.64 53.97 53.85

Net operating earnings after dividends on

deposits..................................................... 24.33 24.74 25.94 31.52 30.00 26.83 26.37 22.18 22.03

Amounts per $100 of total assets2

Current operating earnings—total...................... 3.65 3.44 3.23 3.03 2.91 2.86 2.91 2.98 3.08

Current operating expenses—total...................... 1.17 1.10 .95 .73 .71 .71 .73 .71 .74

Net current operating earnings............................ 2.48 2.34 2.28 2.30 2.20 2.15 2.18 2.27 2.34

Dividends (interest) paid on deposits................. 1.59 1.49 1.44 1.35 1.33 1.38 1.41 1.61 1.66

Net operating earnings after dividends on

.89 .85 .84 .95 .87 .77 .77 .66 .68

Recoveries and profits—total.............................. .91 1.63 1.11 1.71 1.55 .76 .43 .53 .47

Losses and charge-offs—total.............................. 1.60 2.13 1.24 1.27 1.18 .86 .55 .60 .53

Net profits before income taxes........................... .20 .35 .71 1.39 1.24 .67 .65 .59 .62

Net additions to surplus and capital accounts. . .18 .34 .70 1.37 1.19 .63 .61 .56 .59

FEDERAL DEPOSIT INSURANCE CORPORATION

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Federal Reserve Bank of St. Louis
Special ratios*

Income on real estate loans per $100 of real

estate loans.........................................................

Income on other loans per $100 of other loans.. 

Interest on U. S. Government obligations per

$100 of U. S. Government obligations...........

Income on other securities per $100 of other

securities.............................................................

Dividends paid on deposits per $100 of time

and savings deposits..........................................

Net additions to surplus and capital accounts per 

$100 of total surplus and capital accounts. ..

4.72

3.72

2.36

4.07

1.75

2.09

4.44

4.41

2.30

3.71

1.65

3.46

4.54

4.15

2.07

4.72

1.60

7.43

4.61

4.41

2.14

4.07

1.49

15.15

4.58

4.55

2.26

3.46

1.47 

12.93

4.51

4.39

2.28

2.99

1.53

6.74

4.43

4.38

2.29

3.00

1.57

6.53

4.37

4.50

2.33

3.00

1.79

5.95

4.35 

4.69

2.35 

2.95 

1.84 

6.22

Assets and liabilities per $100 of total 

assets3

Assets—total........................................................ 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00

Cash and due from banks................................ 6.77 6.22 4.91 3.92 4.40 4.95 4.82 4.55 4.20

U. S. Government obligations......................... 34.73 41.80 51.53 59.66 62.89 61.91 58.03 53.71 49.89

Other securities.................................................. 19.91 8.35 6.86 5.69 5.42 6.20 8.58 10.28 10.04

Loans and discounts......................................... 33.11 39.43 34.00 29.08 26.14 25.90 27.51 30.35 34.72

All other assets.................................................. 5.48 4.20 2.70 1.65 1.15 1.04 1.06 1.11 1.15

Liabilities and capital—total.......................... 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00

Total deposits.................................................... 90.96 89.79 90.36 90.71 90.53 90.41 90.33 90.25 90.16

Demand deposits.............................................

Time and savings deposits..............................

} 90.96 89.79 90.36 90.71 J ) 90.42 ’U .10

90.31

.11

90.22

.10

90.15

.12

90.04

Borrowings and other liabilities...................... .32 .28 .26 .25 .27 .32 .32 .33 .41 Total capital accounts...................................... 8.72 9.93 9.38 9.04 9.20 9.27 9.35 9.42 9.43

Number of banks, December 31*........................ 56 184 192 192 191 194 193 192 194

1 Includes professional fees from 1942 through 1944.

3 Asset and liability items are averages of figures reported at beginning, middle, and end of year.

* Includes 3 mutual savings banks, members of the Federal Reserve System.

EARNINGS, EXPENSES, AND DIVIDENDS OF INSURED BANKS

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Federal Reserve Bank of St. Louis
D eposit I nsurance D isbursem ents

Table 120. Disbursements, deposits, and depositors in insured banks financially aided by the 

Federal Deposit Insurance Corporation, 1934-1950

Banks grouped by class of bank, year of aid, amount of deposits, and State

Table 121. Assets and liabilities of insured banks placed in receivership and of insured banks 

absorbed with the financial aid of the Federal Deposit Insurance Corporation, 

1934-1950

As shown by books of bank at date of closing

Table 122. Name, location, Federal Deposit Insurance Corporation disbursement, and assets 

and liabilities of insured banks absorbed with the financial aid of the Corporation 

during 1950

Table 123. Recoveries and losses by the Federal Deposit Insurance Corporation in connection 

with insured banks financially aided by the Corporation, 1934-1950 

As shown by books of FDIC, December 81, 1950

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Federal Reserve Bank of St. Louis
Disbursements by the Federal Deposit Insurance Corporation

to protect depositors have been made when insured banks because of

financial difficulties are placed in receivership or are absorbed with the

aid of the Corporation. In receiverships the disbursement is the amount

paid by the Corporation on insured deposits. In absorptions the Corporation’s disbursement is the amount loaned to absorbed banks, or the

price paid for assets purchased from them.

The table “Depositors and deposits of insured banks placed in

receivership,” by years, which appeared in previous jroports, has been

omitted since there has been no receivership since 1944. For definitions

of the terms used in that table, and tlie detailed figures as shown by

the books of the Corporation for December 31, 1946, see the Annual

Report of the Corporation for 1946, pages 167 and 171. Totals for all

insured banks placed in receivership are given in Tables 3 and 4 of

this Report, pages 12 and 13.

Deposits of insured banks placed in receivership as given in Table 120

are taken from the books of FDIC at the end of the year and will differ

from the deposits in Table 121 which are taken from books of the

bank at date of closing. This is because the former include deposits

discovered or reclassified after the date of a bank’s closing.

Details of the absorptions during 1950 are given in Table 122. The

disbursements by the Corporation were made to purchase assets from

the selling bank which were not acceptable to the purchasing bank.

Noninsured bank failures

One noninsured bank failed in 1950. The name and location of this

bank and its deposits and date of closing are given below.

Long Banking Company, Ludowici, Georgia, July 1950, deposits

$42,000.

For suspensions of noninsured banks in previous years, see the Annual

Reports of the Corporation as follows: 1943, p. 102; 1946, p. 167;

1947, p. 159; and 1949, p. 187.

Sources of data

Books of bank at date of closing; and books of FDIC, December

31, 1950.

toDEPOSIT INSURANCE DISBURSEMENTS

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Federal Reserve Bank of St. Louis
T a b le 1 2 0 . D is b u r s e m e n ts , D e p o s its , a n d D e p o s it o r s in I n s u r e d B a n k s F i n a n c i a l l y A id e d b y 

t h e F e d e r a l D e p o s it I n s u r a n c e C o r p o r a t io n , 1934-1950

b a n k s g r o u p e d b y class of b a n k , y e a r o f a id , a m o u n t o f d e p o s it s, an d s ta te to

- T

00

Classification

Disbursements by FDIC 

(in thousands of dollars)1

Total Receiverships

Absorptions

Number of banks

Total Receiverships

Absorptions

Deposits 

(in thousands of dollars)2

Total Receiverships

Absorptions

Number of depositors2

Total Receiverships

Absorptions3

All banks.

Class of bank

National banks.......................

State banks members F. R.

System.................................

Banks not members F. R. 

System.................................

Calendar year

193 4 

193 5 

193 6 

193 7 

193 8 

193 9 

1940.

1941.

1942.

1943.

1944.

1945.

1946.

1947.

1948.

1949.

1950.

Banks with deposits of-

$100,000 or less..................

$100,000 to $250,000.........

$250,000 to $500,000.........

$500,000 to $1,000,000___

$1,000,000 to $2,000,000. . 

$2,000,000 to $5,000,000. .

$5,000,000 to $10,000,000. 

$10,000,000 to $50,000,000 

More than $50,000,000___

273,203

50,865

101,275

121,063

941

8,890

14,833

19,202

30,512

67,804

74,456

23,930

11,154

7,250

1,520

1,874

292

1,777

3,027

2,558

3,183

4,955

12,864

15,224

27,050

30,075

44,792

23,680

114,563

87,044

14,808

20,934

51,302

941

6,025

8,056

12,045

9,092

26,196

4,895

12,278

1,612

5,500

404

4,308

11,554

10,223

13,901

8,961

12,421

186,159

36,057

80,341

69,761

25,676

2,865

6.777 

7,157

21,420

41,608

69,561

11,652

9,542

1,750

1,116

1,874

292

1.777 

3,027 

2,558 

3,183

647

1,310

5,001

13,149

21,114

32,371

23,680

88,887

415

72

22

321

9

25

69

75

74

60

43 

15 I 

20 

5 

2

1

1

5

3

4 

4

106

108

60

55

41

27

10

8

245

21

6

218

170

51

16

103

1

27 

25 

24

28

24

7

14

1

1

1

1

5

3

4 

4

533,421

108,828

187,623

236,970

1,968

13,320

27,528

33,345

59,724

157,790

142,389

29,721

19,011

12,535

1,915

5,695

316

6,966

10,455

4,977

5,766

6,358

17,611

21,409

41,374

59,223

82,902

65,407

239,137

109,603

19,474

26,550

63,579

1,968

9,091

11,241

14,960

10,296

32,751

5,657

14,730

1,816

6,637

456

4,947

13,920

12,462

17,590

11,748

16,279

423,818

89,354

161,073

173,391

32,657

4,229

16,287

18,385

49,428

125,039

136,732

14,991

17,195

5,898

1,459

5,695

316

6,966

10,455

4,977

5,766

1,411

3,691

8,947

23,784

47,475

66,623

65,407

206,480

1,354,172

285,173

368,503

700,496

15,767

44,655

89,024

130,409

203,970

392,765

256,373

73,046

60,602

27,372

5,488

12,484

1,404

10,618

18,311

5,660

6,224

38,064

83.012

90,910

144,613

190,022

216,299

170,850

420,402

382,764

65,406

82,860

244,498

15,767

32,331

43,225

74,148

44,288

90,211

20,667

38,594

5,717

16,917

899

29,695

65.512

56,777

63,487

54,324

51,756

971,408

229,767

285,643

455,998

61,213

12,324

45,799

56,261

159,682

302,554

235,706

34,452

54,885

10,455

4,589

12,484

1,404

10,618

18,311

5,660

6,224

8,369

17,500

34,133

81,126

135,698

164,543

170,850

359,189

FEDERAL DEPOSIT INSURANCE CORPORATION

Digitized for FRASER 

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Federal Reserve Bank of St. Louis
State

Alabama............

Arkansas............

California..........

Colorado............

Connecticut.. . .

Florida...............

Georgia..............

Illinois................

Indiana..............

Iowa...................

Kansas...............

Kentucky..........

Louisiana...........

Maryland..........

Massachusetts. .

Michigan...........

Minnesota.........

Mississippi........

Missouri............

Montana............

Nebraska...........

New Hampshire

New Jersey........

New York..........

North Carolina.

North Dakota. .

Ohio...................

Oklahoma..........

Oregon...............

Pennsylvania. . .

South Carolina.. 

South Dakota...

Tennessee..........

Texas..................

Vermont............

Virginia..............

Washington.......

West Virginia...

Wisconsin..........

Wyoming...........

237

841

861

7

1,242

300

863

4,024

6,208

1,462

975

4,614

668

3,132

1,571

6,308

640

257

4,920

639

469

118

80,929

67,828

2,387

2,663

1,874

2.444 

962

48,720

298

2,411

1,279

2,761

3.445

5,053

935

1,458

7,198

202

94

841

7

1.242

203

846

1.242 

3,097

385

482

3,329

668

735

139

640

257

4,335

186

469

25,103

10,835

1,156

1,397

1,610

1,133

10,133

136

2,388

1,164

2,468

3,259

511

1,458

5,096

143 

‘ 861

97

17

2,782

3,111

1,077

493

1,285

2,397

1,571

6,169

585

453

118

55,826

56,993

1,231

1,266

264

1,311

962

38,587

162

23

115

293

186

4,542

935

2,102

202

34

1

22

8

16

2

20

529

1,168

1,078

8

1,526

491

1,027

9,561

13,236

5,516

1,233

7,951

1,652

4,569

3,019

13,530

818

334

7,001

1,007

538

296

192,444

138,826

3,282

3,830

3,087

4,151

1,114

71,385

850

2,988

1,942

3,925

3,725

10,746

1,538

2,006

9,503

1,991

101

1,168

8

1,526

217

998

1,637

3,932

498

539

3,954

1,652

828

160

818

334

5,116

215

538

30,928

13,286

1,421

1,552

2,345

1,659

14,340

136

2,862

1,620

3,239

3,375

629

2,006

5,966

428

'1,078

274

29

7,924

9,304

5.018

694

3,997

’ 3,741

3.019

13,370

1,885

792

296

161,516

125,540

1,861

2,278

742

2,492

1,114

57,045

714

126

322

686

350

10,117

1,538

3,537

1,991

3,231

3,529

3,169

10

5,379

1,642

8,094

20,034

30,011

13,666

5,147

34,623

6,087

22,569

9,062

31,549

2.650

1.651 

34,562

1,488

2,224

1,781

520,426

259,905

10,409

14,109

8,541

10,564

2,105

159,628

1,848

12,516

12,358

19,864

11,058

26,063

4,181

8,346

26,896

3,197

794 

3,529 

.... _

5,379

448

7,773

5,372

12,549

1,676

2,254

18,490

6,087

6,643

928

2.650

1.651 

26,760

849

2,224

101,656

28,440

3,677

6,760

7,585

5,874

’ 43,828

403

11,412

9,993

18,334

8,687

2,964

8,346

18,739

3,169

2,437

1,194

321

14,662

17,462

11,990

2,893

16,133

15,926

9,062

30,621

7,802

639

1,781

418,770

231,465

6,732

7,349

956

4,690

2,105

115,800

1,445

1,104

2,365

1,530

2,371

23,099

4,181

8,157

3,197

* Includes only principal disbursements made through December 31. 1950. Excludes estimated additional disbursements of $17,000 and expenses incident to the transactions.

* Data from books of FDIC, December 31, 1950.

* Number of deposit accounts.

to

CDDEPOSIT INSURANCE DISBURSEMENTS

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Federal Reserve Bank of St. Louis
Table 121. A s s e t s a n d L i a b i l i t i e s o f I n s u r e d B a n k s P la c e d in R e c e iv e r s h ip a n d o f I n s u r e d B a n k s A b s o r b e d w ith 

t h e F in a n c ia l A id o f t h e F e d e r a l D e p o s it I n s u r a n c e C o r p o r a t io n , 1934-1950

as s h o w n b y bo o k s of b a n k a t d a te of clo sin g

Assets Liabilities and capital accounts

Year 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

Total

deposits

Other

liabilities

R. F. C.

capital

Private

capital

stock

Other

capital

accounts1

Total $121,942,751 $80,606,724 $74,367,908 $238,530,556 $22,499,020 $59,563,796 $13,663,690 $611,144,445 $531,192,746 $11,672,568 $25,155,114 $38,316,611 $4,807,406

RECEIl

Total

/ERSHIPS*

$22,620,382 $10,154,078 $15,946,562 $65,569,217 $5,375,616 $12,293,686 $8,330y507 $140,290,048 $107,374,564 $10,122,023 $5,896,246 $12,254,299 $4,642,916

1934

1935

1936

1937

1938

185,056

1,974,181

2,194,712

2,238,648

1,610,297

603,519

698,440

902,215

1,293,683

451,570

273,638

510,479

1,955,104

2,307,696

2,215,638

1,329,865

6,842,116

6,454,624

11,107,699

6,574,061

79,365

459,055

459,700

486,995

412,911

120,319

242,274

734,874

837,966

2,125,022

69,565

1,597,403

273,559

1,010,689

530,408

2,661,327

12,323,948

12,974,788

19,283,376

13,919,907

1,951,992

8,700,485

11,039,098

14,715,286

10,124,255

104,963

2,111,886

93,695

1,132,758

1,213,354

90,000

223.000

788.000 

755,250

1,052,900

432,100

950,000

1,069,350

2,498,815

1,059,200

82,272

338,577

-15,355

181,267

470,198

1939

1940

1941

3,329,557

1,018,215

6,462,157

1,052,424

452,574

3,493,431

4,855,519

1,519,677

1,810,346

21,839,422

3,314,762

5,398,218

1,845,901

694,900

91,311

7,221,558

435,526

106,615

3,781,385

523,899

449,458

43,925,766

7,959,553

17,811,536

32,557,805

5,599,438

14,627,158

4,695,820

455,788

298,526

2,249,996

422,750

195,500

2,775,001

1,045,533

1,582,000

1,647,144

436,044

1,108,352

1942

1943

1944

500,513

2,910,826

196,220

PTIONS

$99,322,369

119,650

968,872

117,700

$70,452,646

52,364

405,011

41,090

$58,421,346

777,953

1,846,467

84,030

$172,961,339

70,685

772,493

2,300

$17,123,404

55,222

414,310

25,030

63,677

5,434

$5,303,183

1,601,417

7,381,656

446,774

1,379,526

6,274,311

405,210

1,520

13,582

131

81,750

32,500

4,600

140.000

675.000 

27,300

-1,379

386,263

9,533

ABSOR

Total $47,270,110 $470,854,397 $423,818,182 $1,550,545 $19,258,868 $26,062,312 $164,490

1935

1936

1937

1938

1939

404,834

3,109,830

4,717,074

8,133,887

27,451,442

233,395

2,071,296

2,495,254

7,018,796

27,929,162

1,403,807

2,080,059

3,520,186

10,377,037

16,266,036

2,256,417

8,917,554

8,678,629

20,896,236

44,289,765

608,467

1,277,605

562,181

2,873,257

5,142,882

10 808 4,917,728

18,966,364

21,086,180

55,592,711

137,588,630

4,228,816

16,287,262

18,384,923

49,428,383

125,038,946

140 315,000 373,772

1,184,658

926,359

3,913,009

15,459,743

325,362

186,497

2,380,489

1,049,600

19,769

262,651

168,674

679,659

310,000

609,200

3,726,463

6,103,500

1.664.000 

1,808,400 

2,697,650

6.381.000

685,333

21,006

-428,459

-614,475

1940

1941

1942 1 CMQ

30,227,874

3,167,243

4,159,617

1,216,987

368,633

2,440,786

126,764

2,769,014

6,864,201

2,616,025

1,548,158

17,183,076

801,273

3,547,766

2,903,771

585,251

1,371,925

114,326

2,201,186

1,013,657

647,349

335,163

17,987,527

2,835,309

2,275,392

555,383

230,282

55,504

30,236

318,322

178,720

217,903

89,643

60,687,428

8,178,623

7,731,137

1,675,734

367,086

2,435,488

77,049 1 AKO Q7A

4,553,388

798,028

759,861

274,331

22,840,095 

1,014,582 

1,824,586 

15,844 

67 428

458,831

197,669

354,362

34,523

32,108

153,938,219

16,992,727

20,652,721

6,676,573

1,650,788

6,391,915

351,169

6,797,738

10,360,196

4,885,620

136,731,549

14,990,768

17,195,146

5,897,691

1,459,091

5,695,202

316,402

6,965,742

10,454,520

4,977,235

157,766

57,508

584

7,186,655

289,000

913,400

96,000

8,666,162

1,111,250

1,748,200

300,000

1,196,087

544,201

795,391

382,882 IJ74o

1944

1945

1946 10/i n

200,000 -8,303

4,609 83,603

425

215

156,808

5,853

331,500 365,213

2 369 10,000 24,767

197,500 -365,504

1 Q/i Q l,40£to lU

2,015,414

1,336,785

1,965,624

Ou,OoU

119 onn 375,000 -469,324

1949

XlAyAUU

61,705

40,500

19,196

5,959 15,000 142,500 -255,074

1950 26,030 4,005,118 *5,766,506 197,835 9,650 114,150 -2,083,023

1 Includes surplus, undivided profits, and reserve funds minus operating deficit, if any, as shown by books. Minus (-) indicates net operating deficit.

2 No insured bank has been placed in receivership since 1944.

8 As of December 31, 1950.

280 FEDERAL DEPOSIT INSURANCE CORPORATION

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Federal Reserve Bank of St. Louis
Table 122. N a m e, L o cation, F ederal D eposit I nsurance C orporation D isbu r sem en t, and A ssets and L ia bilities of

I n sured B a n k s A bsorbed w ith the F in a n c ia l A id of the C orporation D uring 1950

Case Name and location Class of bank Number of

Disbursement

number accounts1 Absorbing bank

Date Amount*

167 The Westphalia State Bank, 

Westphalia, Michigan

State bank, not 

member F. R. System

1,039 April 3, 1950 $967,959 Maynard-Allen State Bank, 

Portland, Michigan

168 The Bank of Aurora, 

Aurora, North Carolina

State bank, not 

member F. R. System

2,447 July 24, 1950 938,698 Guaranty Bank and Trust Company, 

Greenville, North Carolina

169 The Farmers First National 

Bank of Minooka, 

Minooka, Illinois

National bank 953 August 14, 1950 245,368 The First National Bank of Joliet, 

Joliet, Illinois

170 First National Bank in Cecil, 

Cecil, Pennsylvania

National bank 1,785 October 9, 1950 1,030,114 The First National Bank of McDonald, 

McDonald, Pennsylvania

Case

number

Assets

Total

Liabilities and capital accounts

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

deposits3

Other

liabilities

R. F. C.

capital

Private

capital

stock

Other

capital

accounts4

Total

167

168

169

170

$1,548,158

108,786

120,680

1,154,008

164,684

$335,163

115,990

100,173

25.000

94.000

$89,643

52,692

32,001

2,250

2,700

$1,965,624

461,246

992,095

146,281

366,002

$40,500

5.000 

22,501

4.000 

8,999

$26,030

707

23,955

1,368

$4,005,118

744,421

1,291,405

1,331,539

637,753

$5,766,506

1,126,402

991,329

1,403,375

2,245,400

$197,835

197,835

$9,650

9,650

$114,150

25.000 

14,150

25.000

50.000

$-2,083,023

-406,981

78,441

-96,836

-1,657,647

1 Number of accounts as of December 31, 1950, from books of FDIC.

2 As of December 31, 1950; does not include preliminary and field liquidation expenses or advances for the protection of assets incident to the transaction.

* As determined by FDIC agents after adjustment of books of bank for liabilities discovered subsequent to closing.

4 Includes surplus, undivided profits, and reserve funds minus operating deficit, if any, after adjustment for liabilities discovered subsequent to closing. Minus (-) indicates net 

operating deficit.

DEPOSIT INSURANCE DISBURSEMENTS

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Federal Reserve Bank of St. Louis
Table 123. R e c o v e r i e s a n d L o s s e s b y t h e F e d e r a l D e p o s it I n s u r a n c e C o r p o r a t io n in C o n n e c t io n w it h 

I n s u r e d B a n k s F in a n c ia lly A id e d b y t h e C o r p o r a t io n , 1934-1950 

AS SHOWN BY BOOKS OF FDIC, DECEMBER 31, 1950 

(Amounts in thousands of dollars)

Liquidation status 

and year of 

receivership or 

absorption

All.banks, total.

Status

Active..............

Terminated

Year

193 4 

193 5 

193 6 

193 7 

193 8 

193 9 

194 0 

194 1 

194 2 

194 3 

194 4 

194 5 

194 6 .

194 7 

194 8 

194 9 

195 0 

All banks

umber

of

anks

Estimated

FDIC

disbursement1

Re- 3

coveries

to

December 

30, 1950

415 273,220 244,225

20 88,984 77,496

395 184,236 166,729 .

9 941 734

25 8,890 6,158 .

69 14,833 12,418

75 19,202 15,633

74 30,512 28,080

60 67,816 60,225

43 74,456 69,525

15 23,930 23,320 .

20 11,154 10,471

5 7,255 7,126

2 1,520 1,479

1 1,874 1,874 .

1 292 292

5 1,777 1,346

3 3,027 2,314

4 2,558 2,143

4 3,183 1,087

additional

recoveries

2,065

2,065

169

786

307

16

41

736

Estimated

26,930

9,423

17,507

207

2,732

2,415

3,564

2,432

7,422

4,145

610

683

124

41

124

697

374

1,360

Receiverships

Number

of

banks

245

5

240

Estimated

FDIC

disbursement1

87,061

18,282

68,779

941

6,025

8,056

12,045

9,092

26,208

4,895

12,278

1,612

5,505

404

Recoveries

to

December 

30, 1950

72,489

13,711

58,778

734

4,273

6,596

9,503

7,908

20,038

4,313

12,065

1,320

5,376

363

Estimated

additional

recoveries

171

171

166

Estimated

losses'2

14,401

4,400

10,001

207

1,752

1,460

2,542

1,184

6,004

582

213

292

124

41

Absorptions

Number

of

banks

Estimated

FDIC

disbursement

Recoveries

to

December 

31, 1950

Estimated

additional

recoveries

Estimated

losses2

170 186,159 171,736 1,894 12,529

15 70,702 63,785 1,894 5,023

155 115,457 107,951 7,506

1 2,865 1,885 980

27 6,777 5,822 955

25 7,157 6,130 5 1,022

24 21,420 20,172 1,248

28 41,608 40,187 3 1,418

24 69,561 65,212 786 3,563

7 11,652 11,255 397

14 9,542 9,151 391

1 1,750 1,750

1 1,116 1,116

1 1,874 1,874

1 292 292

5 1,777 1,346 307 124

3 3,027 2,314 16 697

4 2,558 2,143 41 374

4 3,183 1,087 736 1,360

1 Differs from amount of principal disbursements as given in Table 120 by including unpaid insured deposits, expected to result in additional FDIC disbursement of $17 thousand 

($12 thousand in 1939 and $5 thousand in 1943). ^ u u *- 2 Sum of losses in the cases in which the disbursement by the Corporation to protect depositors was not repaid in full. Excludes interest or gains in cases m which the disbursement 

by the Corporation was fully recovered and gains or losses on assets purchased by the Corporation from receivers of closed banks. For the net loss to the Corporation ($514 thousand 

less than here shown), see the item, “ Losses’ in Table 16, p. 28.

282 FEDERAL DEPOSIT INSURANCE CORPORATION

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Federal Reserve Bank of St. Louis
INDEXES

Digitized for FRASER 

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Federal Reserve Bank of St. Louis
Digitized for FRASER 

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Federal Reserve Bank of St. Louis
I n d e x T o F e d e r a l D e p o s it I n s u r a n c e A c t

Actions, power to maintain and defend..............................

Administration of Corporation’s affairs...............................

Admission to insurance, factors considered.........................

Advertising by insured banks, regulated.............................

Annual report.........................................................................

Agents for service of process................................................

Application for admission to insurance...............................

Assessment:

Assessment net income defined.....................................

Assessment base:

Assumed deposits of newly insured bank............

Computation..........................................................

Days........................................................................

Deductions and exclusions:

Advices of deposit charge for cash letters...

Cash collateral................................................

Cash items, methods of deduction................

Drafts on bank accounts...............................

Reciprocal insured bank balances.................

Record o f.........................................................

Redeposited trust funds.................................

Assumed deposits..........................................................

Cash items.....................................................................

Certified statement, (this index)

Credit to insured banks................................................

Default, dividend payment or asset distribution

prohibited...................................................................

Duty of bank to pay.....................................................

Limitation of actions:

Amount due and excess payments.......................

Effect of fraud................... ....................................

Newly insured bank’s computation.............................

Overpayment.................................................................

Penalty, national bank’s failure to pay.......................

Process of collection, Board may define......................

Rate................................................................................

Suit to recover...............................................................

Time of payment...........................................................

Trust funds in other insured banks.............................

Uncollected items, Board may define..........................

Assumption, consolidation and merger transactions:

Approval of Corporation...............................................

Assessment.....................................................................

Loans to facilitate..........................................................

Notice to depositors......................................................

Termination of insured status......................................

With diminished capital or surplus..............................

With noninsured bank or institution...........................

Attachment against Corporation.............. .........................

Audit of financial transactions of Corporation...................

Bank directors, officers and employees convicted of

certain crimes, eligibility..................................................

Banking or checking accounts of Corporation....................

Board of Directors of Corporation:

Appointment..................................................................

Appointive members.....................................................

Bipartisan.......................................................................

Certificate of member...................................................

Citizenship requirement................................................

Chairman........................................................................

Comptroller of Currency...............................................

2 8 5

Section Page

9 ............. ....... 115-116

2,9,10(a) . . 105, 116-117

6.............. ............ 109

18(a) 128-129

17(a)........ ............ 127

9 .............. ............ 116

5 .............. ............ 109

7(d)........ ............ I ll

7(c),8(d) . . . . Ill, 115

7(a)........ ............ 109

7 (a )........ . 109-110

7 (a)(2)... ........... 110

7(a)(2)... ........... 110

7(a )(1 )..,. . 109-110

7(a)(2)... ........... 110

7(a)(1)... ........ 109

7(a)........ ............ 110

7(a) (l)(i). ........... 109

7(c),8(d)..........111,115

7 (a)(1)... .......... 109

7(d)........ ............ I ll

18(b)........ ............ 129

7(b)........ ........ 110-111

7(g)....... ............ 112

7(g)....... ......... 112

7(c)....... ......... Ill

7(e) (g )... .... I l l , 112

7(h)...... ......... 112

7(a)(1)... .......... 110

7(a)....... ............ 109

7(g)........ ............ 112

7(a)........ ............ 110

7(a) (l)(i)............ 109

7(a)(1)... ........... 110

18(c)........ ............ 129

7(c),8(d) . . . .. Ill, 115

13(e)......... ............ 126

8(a) (d )... . . . 113-115

8(d)...... ......... 115

18(c)....... ............ 129

18(c)....... ......... 129

9 ........... ............ 115

17(b) (c )... 127-128

19.............. ............ 131

13(b) ......... ........124-125

2 .............. ............ 105

2 .............. ............ 105

2 .............. ............ 105

2 .............. , , , 105-106

2 .............. ............ 105

2 .............. ............ 105

2........... ......... 105

Digitized for FRASER 

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

Section Page

Board of Directors of Corporation:—Continued

Employment by insured bank or Federal Reserve

bank prohibited..........................................................

Hearings before..............................................................

Number of members......................................................

Ownership of insured bank stock prohibited..............

Powers:

Adopt bylaws.........................................................

Appoint agents for service of process...................

Appoint claim agents.............................................

Appoint examiners.................................................

Appoint officers and employees............................

Bond, requiring from employees..........................

Branch bank, approve establishing or moving of 

Define cash items, process of collection and

uncollected items................................................

Define time and savings deposits.........................

Fix interest rates on deposits................................

Fix period for deducting items from assessment

base.....................................................................

Fix time for assessment payments.......................

Main office of insured bank, approve moving of

Prescribe form of certified statement...................

Prescribe manner of reporting and depositing

trust funds......................................................

Prescribe for payment of deposits before maturity

Subpena..................................................................

Qualifications..........................................................

Senate confirmation...............................................

Term of office.........................................................

Vacanc}^ in office of Chairman..............................

Vacanc3r or absence of Comptroller......................

Bonds, notes, debentures and obligations:

Exemption from taxation..............................................

Preparation of forms.....................................................

Borrowing power of Corporation from Treasury................

Branch bank, approval of Corporation to establish or move

Burglary, bank indemnity insurance against......................

Bylaws....................................................................................

Capacity to sue and be sued................................................

Capital stock, reduction by insured bank...........................

Certified statement:

Form o f...........................................................................

Injunction to compel filing...........................................

Newly insured bank’s first statement..........................

Penalty for failure to file:

General.................................................................

National and insured national nonmember..........

Time for filing................................................................

Verification.....................................................................

Change in location of branch or main office, approval of

Corporation........................................................................

Claim agent, powers o f.............,...........................................

Closed banks, loans to or purchase of assets......................

Closed banks, rights of depositors and creditors................

Comptroller of Currency......................................................

Congress, annual report to ...................................................

Consolidation (see Assumption), continuance of insured

status..................................................................................

Continuation of insured status.............................................

Contracts, power to make....................................................

Conversion:

Approval of Corporation...............................................

Continuance of insured status......................................

Creation of Corporation........................................................

2............... .

8(a), 10(c) (d)

.. 105

113-114,117-118

2 ....................... . . 105

2 ....................... . 105-106

9 ....................... . . 116

9 ....................... . . 116

10(b).................. . . 117

10(b) .................. .. 116

9 ....................... . . 116

9....................... . . 116

18(d).................. . . 130

7(a)(1)............. . , 110

18(g).................. . . 130

18(g).................. .. 130

7(a)(1) ............. .. 110

7(a).................. . . 110

18(d).................. . . 130

7(a).................. .. 110

7(i)................... ,. 113

18(g).................. .. 131

10(c) (d )............. 117-118

2....................... . . 105

2 ....................... . . 105

2 ....................... . . 105

2 ....................... . . 105

2....................... . . 105

15....................... . . 127

16....................... . . 127

14....................... . . 126

18(d).................. , . 130

18(e)................... , . 130

9 ....................... , 116

9 ....................... . 115

18(c).................. 129-130

7(a).................. . . 110

7(f)................... . 112

7(c).................. . I ll

18(h).................. .. 131

7(h).................. . . 112

7(b).................. . 110

7 (b ).................. 110-111

18(d).................. , 130

10(b).................. 117

13(c)(6).............. 125-126

11(g)..................

, . 121

2....................... 105

17(a).................. , . 127

4(b).................. , 108

4(a) (b)............. ■ 108

9 ....................... . . 115

18(c).................. . 129

4(b).................. , 108

1................... .. 105

Digitized for FRASER 

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Federal Reserve Bank of St. Louis
IN D E X TO FEDERAL DEPOSIT INSURANCE ACT

Definitions:

Board of Directors.........................................................

Branch............................................................... ............

Closed for inability to meet demands of depositors...

Deposit............................................................................

District bank..................................................................

Insured bank..................................................................

Insured deposit...............................................................

Mutual savings bank.....................................................

National member bank..................................................

National nonmember bank...........................................

Net assessment income..................................................

New bank........................................................................

Noninsured bank............................................................

Public funds....................................................................

Receiver..........................................................................

Savings bank..................................................................

State bank......................................................................

State member bank........................................................

State nonmember bank.................................................

Transferred deposit........................................................

Trust funds.....................................................................

Deposit of public funds.........................................................

Depositary and financial agent, Corporation’s status as.. 

Depositors’ rights:

State laws.......................................................................

Subrogation of Corporation..........................................

Deposits (see Insurance of deposits)

Deposits by Corporation subordinated to rights of depositors and creditors........................................................

Deposits in insured banks:

Deferred or restricted....................................................

Defined............................................................................

Interest on demand deposits prohibited......................

Interest rate....................................................................

Payment before maturity..............................................

Directors (see Board of Directors)

Discharge from liability for insured deposits......................

Discrimination against nonmember bank prohibited.........

Dividends:

On bank stock or distribution of assets, when prohibited .........................................................................

Payment on deposits subject to limitation.................

Employees, officers and directors of insured banks, convicted 01 crimes, eligibility................................................

Examination of banks:

District, national, and State member...........................

Examiners’ powers........................................................

Failure to comply with recommendations, penalty. . .

State nonmember. . . .............. .....................................

State nonmember, initial examination.........................

Examination reports, exchanged with certain Federal and

State agencies.....................................................................

Examiners, appointment and duties....................................

Execution against Corporation.............................................

Exemption from taxation.....................................................

Facilities of Federal Government, use by Corporation___

Factors considered in admission to insurance, new branches

and moving branch or main office....................................

Federal Reserve System, effect of termination of membership on insured status.......................................................

Financial agent for Government..........................................

Financial transactions, commercial audit by General

Accounting Office of..........................................................

Forfeiture of rights, national bank......................................

LNCE ACT 287

Section Page

3(k)............ ........ 107

3(o)............ ........ 108

11(b)............ ........ 119

3(1)............ ........ 107

3(c)............ ....... 106

3(h)............ ........ 107

3(m)........... ........ 107

3(f)............. ........ 106

3(d)............ ........ 106

3(e)............ 106

7(d)............ 111

3 0 )............. ........ 107

3(h)............ , , ,. 107

3(m )........... . . . 107-108

3(j).......... , 107

3(g)............ ........ 106

3(a)............ 106

3(b)............ ....... 106

3(b)............ 106

3(n)............ ........ 108

3(p)............ ....... 108

3(m)......... 107

13(b).......... 124-125

11( g ).......... ...... 121

11( g )............... , , 121

13(c).......... ...... 125

11( a ).......... ...... 119

3(1).......... , 107

18(g).......... ...... 130

18(g).......... .,. 130

18(g)............ ........ 131

12(b)............ . . . 123-124

20.................. ........ 131

18(b)............ ........ 129

18(g)............ ...... 130

19.............. ... 131

10(b).......... 116-117

10(b).......... . . . 116-117

18(f)............. ...... 130

10(b).......... . . . 116-117

5 .............. , .,. 109

10(f)............. ., . 118

10(b)............ 116

9.................. 116

1 5 ...................... 127

10(a)............ 116

6,18(d) , , ... 109, 130

8(b)............ ........ 114

13(b)............ ...... 125

17(b)(c)(d)..,... 127-128

7(h)......... ... 112-113

Digitized for FRASER 

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

Funds of Corporation, deposit o f.........................................

General Accounting Office, commercial audit of Corporation’s financial transactions..............................................

Guarantee by Corporation of assumption and assets purchased by insured banks...................................................

Hearing before Board of Directors and hearing officers. ..

Indemnity insurance, requiring from insured banks..........

Insurance of deposits:

Admission to insurance..................................................

Bank closed for inability to meet demands of depositors .......... .............................................................

Banks closing prior to effective date............................

Banks insured................................................................

Capacity in which deposits maintained.......................

Certificate of Comptroller of Currency and Board of

Governors of Federal Reserve System.....................

Consolidation, merger or conversion, insurance

continued....................................................................

Deposits payable outside U.S., D.C. and any U.S.

Territory.....................................................................

Discharge of Corporation’s liability to pay.................

Deposits covered............................................................

Deposit of public funds.................................................

Factors considered.........................................................

Insurance fund...............................................................

Liability of depositor to closed bank...........................

Maximum amount.........................................................

New national bank to assume insured deposits in

closed bank.................................................................

Owner of insured deposit, recognition o f.....................

Payment of insured deposits in closed insured bank..

Proof of claim for insured deposit................................

Public funds....................................................................

Right in which deposit maintained..............................

Rights of depositors and creditors, State laws............

Separability of provisions relating to...........................

Subrogation of Corporation upon payment of insured

deposit . .................... . . . ..........................................

Termination (see Termination of insured status).......

Time for filing claim for insured deposit.....................

Transferred insured deposits in new national bank or

another insured bank.................................................

Trust funds.....................................................................

Withholding payment of insured deposit....................

Insured status, continuation on termination......................

Interest by Corporation on its repaid capital.....................

Interest on deposits (see Deposits in banks).......................

Investment of Corporation’s moneys...................................

Jurisdiction of Federal courts...............................................

Limitation of actions.............................................................

Loans and purchases of assets, guarantees and deposits by 

Corporation:

Agreements diminishing Corporation’s rights in assets

acquired by.................................................................

Closed insured banks, to reopen...................................

Closing, to prevent........................................................

Court approval, when required....................................

Prevent loss to Corporation and facilitate merger,

consolidation or assumption. .. . . ...........................

Receivers and liquidators of closed insured banks.. . .

Mails, free use o f..................................................................

Main office, approval of Corporation to move....................

Management of the Corporation..........................................

Section Page 

13(b)...................... 124

17(b)(c)(d)........127-128

13(e)...................... 126

8(a), 10(c) (d)

.. .113-114,117-118 

18(e)...................... 130

4(a),5........108-109,122

11(b)...................... 119

11(a)...................... 119

4,5,11 (i) . . 108-109, 122 

3(m),7(i).. 107-108, 113

4(b)...................... 108

4 (b)..................108-109

3(1)...................... 107

12(b)...................... 123

3(1),11(a).........107,119

3(m ).................107-108

6 ........................... 109

11(a)...................... 119

3 (m), 12(d)___ 107,124

3(m),11(a)----- 107,119

11(h)...................... 121

3(m), 12(c). 107-108,124

11(f)...................... 120

11(f),12(e).. 120-121,124

3(m ).................107-108

3(m)..................... 107

11(g)...................... 121

21........................... 131

11(g)...................... 121

12(e)...................... 124

11(f), 12(b).........120, 123

7(i)....................... 113

ll(f)(g)» 12(d)

120-121, 124

4(b),8 ___ 108,113-114

13(f)....................... 126

18(g).......... ........... 130

13(a)...................... 124

9,10(c),(d)........115-118

7(g),11(g),12(e)

. . . 112, 121, 124

13(e)...................... 126

13(c)...................... 125

13(c)...................... 125

13(d)..................125-126

13(e)...................... 126

13(d) (e ).............125-126

10(a)...................... 116

18(d)...................... 130

2,9,10(a).. 105,115, 116

Digitized for FRASER 

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Federal Reserve Bank of St. Louis
IN D E X TO FEDERAL DEPOSIT INSURANCE ACT 289

Merger (see Assumption) continuance of insured status... 

National banks:

Insurance of deposits....................... ............................

Special examination of by Corporation.......................

New national bank:

Assumption of insured deposits in closed bank..........

Assumption of liabilities by insured bank...................

Exempt from taxation...................................................

Funds from Corporation...............................................

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

Organization...................................................................

Sale of stock in...............................................................

Termination of status as new bank..............................

Winding up affairs o f.....................................................

Nondiscriminatory provision................................................

Notice to depositors of:

Assumption of deposits.................................................

Insured deposits in closed bank....................................

Termination of insurance..............................................

Oaths, power to administer..................................................

Obligations and expenses of Corporation............................

Officers, directors and employees of insured banks, convicted of certain crimes, eligibility...................................

Official sign:

Display by insured bank...............................................

Penalty for failure to display........................................

Payment of interest on deposits by banks, regulated........

Payment of insured deposits:

Discharge of Corporation..............................................

Dividends, Corporation’s right to receive...................

Liability of depositor to bank.......................................

Limitation on time for claiming...................................

Method of payment.......................................................

New national bank to assume deposits........................

Notice to depositor........................................................

Proof of claim.................................................................

Recognition of owner whose name or interest undisclosed on bank’s records............................................

Rights of depositors and creditors, State law.............

Subrogation of Corporation to depositor’s rights........

Powers of Corporation (see Board of Directors also)........

Private banks.........................................................................

Process, agents for service o f................................................

Public funds, deposit o f........................................................

Purchase of assets (see Loans, etc.)

Receivers:

National banks:

Assets as security for loan from Corporation-----

Bond not required for national or District bank.

Corporation to be appointed as receiver of..........

Duties, rights and powers of Corporation as. . . .

Fees, compensation and expenses.........................

Payment of dividends............................................

Power of Corporation to act as....................................

Sale of assets to Corporation by..................................

State banks:

Appointment of Corporation as receiver of.........

Rights and powers of Corporation.......................

Records of Corporation, reproduction, use as evidence and

destruction.........................................................................

Report to Congress................................................................

Reports of condition:

Access of Corporation to reports of certain Federal

and State agencies......................................................

Banks must make..........................................................

Section Page 

4 (b )..................108-109

4(b),5 ............... 108-109

10(b)...................... 117

11(f) (h)(j)..........120-122

11(1)...................... 123

11 (i)....................... 122

l l ( j ) ....................... 122

l l ( i)...................121-122

l l ( i)....................... 121

11 (k)..................122-123

ll(k )...................... 123

11(1)...................... 123

20........................... 131

8(d).........................115

12(e)...................... ...124

8(a).........................113

10(b) (c )....................117

10(a).........................116

19........................... 131

18(a).................. 128-129

18(a)...................... 129

18(g).................. 130-131

12(b)..................123-124

11(d) (g ).............120-121

3(m),12(d) ....107, 124

12(e)...................... 124

11(f)...................120-121

11(f) (h)(j).. 120,121,122

12(e)...................... 124

11(f),12(e).........120, 124

3(m),12(c). 107-108,124

11(g)...................... 121

11(g)...................... 121

9........................115-116

3(a)....................... 106

9........................... 116

3(m )..................... 108

13(c) (e)..............125, 126

12(a)...................... 123

8(b),11(c)........114,119

ll(d)(g),12(a), 13(d)

.119-121,123,125

12(a)...................... 123

11(d)...................... 120

9........................... 116

13(c) (e)..............125, 126

11(e)...................... 120

11(e)...................... 120

10(e) (g)..............118-119

17(a)...................... 127

10(f)...................... 118

10(e)...................... 118

Digitized for FRASER 

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

Section

Reports of condition:—Continued

Furnished to certain Federal and State agencies........

Penalty for failure to make or publish........................

Publication.....................................................................

Reports of examination:

Access of Corporation to reports of certain Federal

and State agencies.....................................................

Furnished to certain Federal and State agencies........

Reduction of capital or surplus in conversion, merger,

consolidation and assumption transactions.....................

Retirement of capital, Corporation’s approval...................

Rules and Regulations, Board may prescribe.....................

Sale of assets by insured banks............................................

Seal..........................................................................................

Separability provision...........................................................

Signs, display of official signs...............................................

State banks:

Insurance of deposits.....................................................

Examination of...............................................................

Subpena:

Books and records may be subpenaed.........................

Powers.............................................................................

Refusal to obey..............................................................

Witness fees....................... .............................. ............

Subrogation, rights of Corporation on payment of insured

deposits...............................................................................

Suits:

By or against Corporation............................................

Corporation as receiver.................................................

Surety bonds, Corporation may require..............................

Surplus, reduction by insured banks.......... .........................

Stockholder’s liability, waiver by Corporation...................

Tax exemption of Corporation.............................................

Termination of insured status :

Advertising deposits are insured after.........................

Basis for........ . ..............................................................

Ceasing to receive deposits...........................................

Continuation of insurance of old insured deposits.. ..

Duties and obligations of bank after...........................

Effect on membership in Federal Reserve System___

Effect on national bank, Corporation as receiver___

Hearing on......................................................................

Involuntary....................................................................

Liabilities assumed by another bank...........................

Notice of assumption of liabilities................................

Notice of termination by Corporation and bank........

Notice to bank of intention to terminate....................

Order of Board terminating insured status.................

Powers of Corporation over bank after. . ...............

Statement to Federal or State supervising authority

of basis for..................................................................

Termination of membership in Federal Reserve System

Voluntary.......................................................................

Transfer of assets to noninsured bank or institution.........

Trust companies not receiving deposits..............................

Trust funds, insurance o f......................................................

Unclaimed insured deposits..................................................

Use of information, services and facilities of Federal

Government........................................................................

Witness fees............................................................................

10(f)....................... 118

10(e)...................... 118

10(e)...................... 118

10(f)...................... 118

10(f)....................... 118

18(c).............. 129-130

18(c).................. 129-130

9 ........................... 116

13(c)(d),18(c). ..125, 129

9 ................. ......... 115

21................. 131

18(a)..................128-129

4(b),5 ...............108-109

10(b)..................116-117

10(c) (d )............. 117-118

10(b) (c) (d )........ 116-118

10(c) (d ).............117-118

10(c)...................117-118

11(g)...................... 121

9 ................. ...115-116

9 ........................... 116

9,18(e)..............116,130

18(c)...................... 129

11(g)...................... 121

15........................... 127

8(a)...................... 114

8(a)(c)(d). 113-114, 115

8(c)...................... 115

8(a) (c)(d)____ 114, 115

8(a) (c)(d)........114,115

8(b)..................114-115

8(b)...................... 114

8(a)...................... 114

8 (a )(c).... 113-114,115

8(d)...................... 115

8(d)...................... 115

8(a).................. 113-114

8(a).................. 113-114

8(a).................. 113-114

8(a) (c)(d)........114, 115

8(a)..................113-114

8(b)..................114-115

8(a) (b)(d)........113-115

18(c)...................... 129

3(a),4(b),5,8(c)

106, 108, 109, 115

7(i)....................... 113

12(e)...................... 124

10(a).......... ........... 116

10(c).................. 117-118

Digitized for FRASER 

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Federal Reserve Bank of St. Louis
IN D EX TO RELATED LAW S 291

I n d e x T o L a w s A p p l ic a b l e T o F e d e r a l D e p o s it

I n s u r a n c e C o r p o r a t io n a n d I n s u r e d B a n k s

Source

Advertising; false use of words Federal and Deposit

Insurance..................................................................... 18 U.S.C.

Acknowledgments or oaths, false..................................18 U.S.C.

Bank officers or employees, embezzlement or theft... 18 U.S.C.

Bank robbery and incidental crimes.............................18 U.S.C.

Bankruptcy funds, deposit of........................................11 U.S.C.

Bribery:

Acceptance of loan or gratuity by bank examiner 18 U.S.C.

Offer of loan or gratuity to bank examiner..........18 U.S.C.

Claims against Government:

False.........................................................................18 U.S.C.

Officers or employees interest in............................18 U.S.C.

Confidential information:

Disclosure by bank examiner................................ 18 U.S.C.

Disclosure generally................................................18 U.S.C.

Congress, Member of

Compensation for services..................................... 18 U.S.C.

Contracts b y .......................................... .................18 U.S.C.

Contracts of Government employees with...........18 U.S.C.

Counterfeiting bonds or obligations of Federal

Deposit Insurance Corporation.................................18 U.S.C.

Default in payment of circulating notes, national

bank............................................................................. 12 U.S.C.

Depositaries of public money, insured banks as..........12 U.S.C.

Deposit of bankruptcy funds........................................ 12 U.S.C.

Deposit of Indian funds.................................................25 U.S.C.

Deposit of Postal Savings funds................................... 39 U.S.C.

Embezzlement or misapplication of funds by

officers or employees.................................................. 18 U.S.C.

Examiners:

Disclosure of confidential information..................18 U.S.C.

Loans or gratuities:

Offer to examiners...........................................18 U.S.C.

Acceptance by examiners............................... 18 U.S.C.

Gifts for procuring.......................................... 18 U.S.C.

Performing other services.......................................18 U.S.C.

Theft b y .................................................................. 18 U.S.C.

False and fraudulent acts:

Acknowledgment of oaths......................................18 U.S.C.

Advertising.............................................................. 18 U.S.C.

Certificates...............................................................18 U.S.C.

Certification of checks............................................18 U.S.C.

Entries by Corporation employees........................18 U.S.C.

Entries or statements generally.............................18 U.S.C.

Entries, reports, and transactions by bank

employees.............................................................18 U.S.C.

Impersonation of officer of Government.............. 18 U.S.C.

Papers, possession of to defraud Government . . . 18 U.S.C.

Statements to Corporation.................................... 18 U.S.C.

Use of official seal, fraudulent. ............................. 18 U.S.C.

Foreign banks; insured banks receiving property o f . . 12 U.S.C. 

Forgery of bonds or obligations of Federal Deposit

Insurance Corporation...............................................18 U.S.C.

Indian tribe community funds, deposit of................... 25 U.S.C.

Insured banks, depositaries of public money...............12 U.S.C.

Mail, use of to defraud or swindle..............................18 U.S.C.

National banks, default in payment of circulating

notes.............................................................................12 U.S.C.

Officers or employees:

Claims against Government, interested in...........18 U.S.C.

False certificates......................................................18 U.S.C.

709 

1016

656 

2113

101

218

217

287

283

1906

1905

281

431

432

493

192

265

101

162(a)

759

657

1906

217

218 

220

1909 

655

1016 

709 

1018

1004 

1006 

1001

1005 

912

1002

1007

1017 

632

493

162(a)

265

1341

192

283

1018

131-132, 140 

143 

138-139 

146 

151

134

134

136

135

145

145

135

136 

136-137

137

150-151

149-150

151 

152-153

152

139 

145

134

134

132, 134-135 

145-146 

138

143

131-132, 140 

143

141

142 

141

141-142

140

141

142-143

143

149

137 

152-153 

149-150

144

150

135 

143

Digitized for FRASER 

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

Officers or employees:—Continued

False entries................................... ......................

Matters connected with former duties...............

Official insignia, identification cards, etc., misuse o f.

Official seal, fraudulent use o f. ..................................

Overvaluation of securities to influence action..........

Perjury...........................................................................

Postal savings funds, deposit o f..................................

Principals in crim es.....................................................

Public money:

Depositaries of, insured banks as........................

Theft o f..................................................................

Public property or records, theft o f ............................

Robbery. . ....................................................................

Secret Service, powers o f .............................................

Securities:

Defined..................................................................

Receipt of stolen..................................................

Transportation of stolen......................................

Subornation of perjury................................................

Theft:

Source Page

18 u.s.c. 1006 142

18 u.s.c. 284 136

18 u.s.c. 701 139

,18 u.s.c. 1017 143

18 U.S.C. 1007 143

18 u.s.c. 1621 144

39 u.s.c. 759 152

18 u.s.c. 2 133

12 u.s.c. 265 149-150

18 u.s.c. 641 137

18 u.s.c. 641 137

18 u.s.c. 2113 146

18 u.s.c. 3056 148-149

18 u.s.c. 2311 147

18 u.s.c. 2315 148

18 u.s.c. 2314 147-148

18 u.s.c. 1622 145

18 u.s.c. 655 138

18 u.s.c. 656 138-139

18 u.s.c. 657 139

18 u.s.c. 657 139

18 u.s.c. 654 137-138

18 u.s.c. 641 137

18 u.s.c. 1505 143-144

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G e n e r a l I n d e x

Page

Absorptions of insured banks with financial aid of the Corporation {See also

Banks in financial difficulties):

Assets and liabilities at date of absorption, 1934-1950................................. 280-281

Banks cited for unsafe and unsound practices................................................ 18-20

Deposits protected............................................................................... 10-13, 278-281

Disbursements by Corporation.......................................10-12, 14, 278-279, 281, 282

Legislation. See Index to Federal Deposit Insurance Act, pages 285-290.

Loans made and assets purchased by Corporation....................6, 10-11, 14, 28, 31

Losses incurred by Corporation......................................................11-15, 26, 28, 282

Name and location of banks absorbed, 1950.................................................... 281

Number of banks absorbed.............................................10-11, 14, 20, 278-279, 282

Number of depositors affected b y ...............................................10-12, 278-279, 281

Recoveries bv the Corporation on assets purchased or held as collateral

...............................................................................................14-15, 28, 31, 282

Sources of data.................................................................................................... 277

Absorptions of operating banks, 1950.................................................................. 216-217

Admission to insurance:

Applications approved......................................................................... ....... 20-21, 216

By class of bank, 1950..................................................................................... 216-217

Applications from banks:

For admission to insurance......................................................................... 20-21, 216

For approval of establishment of branches...................................................... 21

Appraised value of assets. See Assets and liabilities of insured commercial 

banks, examiners’ appraisal.

Assessment on insured banks for deposit insurance:

Computation of assessment (See Index to Federal Deposit Insurance 

Act, pages 285-290).

Income of the Federal Deposit Insurance Corporation..................23-24, 26, 30-31

Summary of change in assessment provision................................................... 5-6

Assets and liabilities of closed banks. See Receivership, insured banks placed in.

Assets and liabilities of insured commercial banks, examiners’ appraisal (See

also Substandard assets of insured commercial banks):

Banks examined in 1941-1950.........................................................................242-243

Banks examined in 1950, grouped by amount of deposits............................244-245

Banks examined in 1950, grouped by FDIC district and State...................246-247

Change in recent years....................................................................................... 39-40

Definitions of terms: adjusted liabilities; appraised value; book value;

examiners’ deductions; assets not criticized; substandard assets... . 241 

Sources of data.................................................................................................... 241

Assets and liabilities of operating banks (See also Assets and liabilities of 

insured commercial banks, examiners’ appraisal; Capital of banks; 

Deposits; Loans by banks; Securities):

All banks:

Amount, by type, December, 1945-1950.................................................... 35-36

By FDIC district and State, December 30, 1950....................................234-235

Changes during 1950.................................................................................... 35

Grouped according to insurance status and type of bank, June 30 and

December 30, 1950............................................................................... 230-233

Percentage composition, December, 1950, 1949, and 1945....................... 35

Commercial banks, June 30 and December 30, 1950....................................230-233

Insured banks, December 31, 1949, June 30 and December 30, 1950.........236-239

Insured commercial banks:

Amount, December 31, 1949, June 30 and December 30,1950.230-233, 236-239 

Averages, by State, class of bank and deposit size of banks, 1950

.......................................................................255, 259, 263, 265, 267, 269, 271

Averages of principal components, 1942-1950............................................ 251

Reports of...................................................................................................... 21-22

293

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294 FEDERAL DEPOSIT INSURANCE CORPORATION

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Assets and liabilities of operating banks:—Continued 

Insured mutual savings banks:

Amount, December 31, 1949, June 30 and December 30, 1950............. 236-239

Amount, June 30 and December 30, 1950................................................230-233

Averages of principal components, 1942-1950............................................ 273

Mutual savings banks:

Amount, by type and percentage change, December, 1950,1949, and 1945 55

Amount, June 30 and December 30, 1950................................................230-233

Noninsured banks, June 30 and December 30, 1950.....................................230-233

Sources of data.................................................................................................... 229

Assets and liabilities of the Federal Deposit Insurance Corporation.................. 25-29

Assets of insured banks, quality of. See Assets and liabilities of insured commercial banks, examiners’ appraisal; Substandard assets of insured 

commercial banks.

Assets pledged to secure bank obligations............................................................. 239

Assets purchased by the Federal Deposit Insurance Corporation:

From banks absorbed with financial aid of the Corporation. See Absorptions 

of insured banks with financial aid of the Corporation.

From banks in receivership............................................................................... 12-14

Liquidation of..................................................................................................... 14, 28

Bank supervision (See also Examinations of banks):

Activities of the Federal Deposit Insurance Corporation..................... 10, 16-22

State legislation, 1950..................................................................................... 209-211

Banking offices, establishment of:

Banks, beginning operations, 1950.................................................................... 216

Branches, establishment approved by Corporation......................................... 21

Branches opened, 1950....................................................................................... 217

Banking offices, number of. See Number of operating banks and branches.

Banking practices. See Unsafe and unsound banking practices.

Banks and branches ceasing operations:

All banks and branches, 1950..........................................................................216-217

Branches of insured banks, 1950....................................................................... 217

Insured banks, 1950......................................................................................... 216, 281

Noninsured banks, 1950................................................................................... 216, 277

Banks in financial difficulties (See also Absorptions of insured banks with 

financial aid of the Corporation; Receiverships, insured banks 

placed in):

Depositors protected by the Corporation in closed banks......................... 10-12

Depositors sustaining loss in closed insured banks, number o f...................... 11-12

Insured banks closed:

Deposits of.......................................................................................10-13, 278-281

Disbursements by the Corporation in connection with.. 10-15, 278 -279,281-282

Loss to depositors......................................................................................... 11-14

Loss to Federal Deposit Insurance Corporation............................11-15, 28, 282

Number, 1934-1950.......................................................... 11-12, 14, 278-279, 282

Methods of handling under existing law.......................................................... 6, 10

Noninsured bank suspensions, 1950............................................................... 216, 277

Banks, number of. See Number of operating banks and branches.

Banks operating branches. See Banking offices, establishment of; Number 

of operating banks and branches.

Blanket bond coverage. See Fidelity bond coverage.

Board of Directors of the Federal Deposit Insurance Corporation..................iv, v, 23

Board of Governors of the Federal Reserve System, data obtained from.. 229, 249

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GENERAL INDEX 295

Page

Book value of bank assets and liabilities. See Assets and liabilities of insured 

commercial banks, examiners’ appraisal; Assets and liabilities of 

operating banks; Capital of banks.

Branches. See Banking offices, establishment of; Classification of banks and 

banking offices; Number of operating banks and branches.

Bureau of Internal Revenue, Commissioner’s ruling. See U. S. Treasury 

Department.

Capital of banks {See also Assets and liabilities of operating banks; Earnings 

and expenses of insured commercial banks; Earnings and expenses of 

insured mutual savings bank):

Examiners’ appraisal, insured commercial banks:

1941-1950....................................................................................................... 243

Banks grouped by amount of deposits, 1950.........................................244-245

Banks grouped by FDIC district and State, 1950...................................246-247

Definition of terms used............................................................................... 241

Ratio of substandard assets to adjusted capital accounts, 1950.... 243, 245-247

Growth................................................................................................................ 43-44

Insured banks placed in receivership or absorbed with financial aid of the

Corporation........................................................................................... 280-281

Net additions as a proportion of net profits, insured commercial banks.. 46, 52 

Ratios to total assets:

Insured commercial banks, 1950 ............................. 237, 243, 245-247, 257, 261

Insured commercial banks, 1934-1950........................................................ 43

Insured commercial banks, by State, December 30, 1950........................ 45

Insured commercial banks, distributed by, December 30, 1950.............. 44

Ratios to assets other than cash and U. S. Government obligations, insured 

commercial banks:

1934-1950....................................................................................................... 43

December 30, 1950, by State..................................................................... 45

Retirement of capital invested in banks by the Reconstruction Finance

Corporation.........................................................................................16-17, 46

Total capital accounts:

Commercial and mutual savings banks, insured and noninsured, June 30

and December 30, 1950........................................................................231, 233

Composition of, insured commercial banks, December 1934-1950........... 43

Insured banks, December 31, 1949, June 30 and December 30, 1950.... 239

Charge-offs by banks. See Earnings and expenses of insured commercial banks; 

Earnings and expenses of insured mutual savings banks.

Class of bank, banking data presented by:

Admissions to and terminations of insurance............... ............................... 216-217

Banks absorbed with financial aid of the Corporation, 1950......................... 281

Earnings of insured commercial banks, 1950.................................................254-257

Insured banks financially aided by the Corporation, 1934-1950................... 278

Number of banks and banking offices, 1950.................................................. 216-225

Ratios of earnings of insured commercial banks, 1950................................. 256-257

Reserve method of accounting for bad-debt losses on loans, used by insured

commercial banks, 1948-1950..................................... .......................... 51

Classification of banks and banking offices..........................................................214-215

Closed banks. See Banks and branches ceasing operations; Banks in financial 

difficulties; Receivership, insured banks placed in.

Commercial banks. See Assets and liabilities of insured commercial banks, 

examiners’ appraisal; Assets and liabilities of operating banks; 

Capital of banks; Deposits; Earnings and expenses of insured commercial banks; Number of operating banks and branches.

Commissioner of Internal Revenue, ruling on reserve for bad-debt losses on 

loans. See U. S. Treasury Department.

Comptroller of the Currency:

Data obtained from..........................................................................................229, 249

Director of Corporation...................................................................................iv, v, 23

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296 FEDERAL DEPOSIT INSURANCE CORPORATION

Consolidations. See Absorptions of insured banks with financial aid of the Corporation; Absorptions of operating banks.

Credit, bank, expansion of during 1950. See Deposits; Loans by banks.

Criticized assets. See Assets and liabilities of insured commercial banks, examiners’ appraisal.

Defalcation in banks...................................................................................................... 10

Demand deposits. See Assets and liabilities of operating banks; Deposits, 

classified by type of deposit.

Depositors:

Claims against closed insured banks. See Receivership, insured banks 

placed in.

Losses. See Banks in financial difficulties; Receivership, insured banks 

placed in.

Protected in insolvent or hazardous banks suspended or absorbed. See

Banks in financial difficulties.

Deposits:

Amount of, banks grouped by:

Assets and liabilities of insured commercial banks examined in 1950... 244 

Banks receiving financial aid from the Corporation, 1 9 3 4 -1 9 5 0 ........ 278

Disbursements for protection of depositors, 1934-1950............................. 278

Earnings data of insured commercial banks, 1950.................................. 258-259

Earnings ratios of insured commercial banks, 1950 ................ 48-50, 260-261

Business and personal. See Deposits, classified by type of deposit.

Changes in deposits, 1945 to 1950................................................................35, 42-43

Classified by type of deposit:

All banks, grouped by FDIC district and State, December 30, 1950.. .234-235

All banks, June 30 and December 30, 1950. ...........................................231, 233

All banks, semiannually, 1945-1950.................................................. ......... 42

Commercial banks, June 30 and December 30, 1950............................. 231, 233

Insured banks, by type of bank, December 31, 1949, June 30 and

December 30, 1950................................................................................. 238

Mutual savings banks, June 30 and December 30, 1950....................... 231, 233

Noninsured banks, by type of bank, June 30 and December 30, 1950. .231, 233 

Demand. See Deposits, classified by type of deposit.

Government. See Deposits, classified by type of deposit.

Individuals, partnerships, and corporations. See Deposits, classified by 

type of deposit.

Insured and otherwise protected:

In banks absorbed with financial aid of the Corporation......................... 10-12

In banks placed in receivership................................................................... 12-13

Increase in coverage to $10,000 for each depositor................................... 4, 29

Interbank. See Deposits, classified by type of deposit.

Interest on time and savings deposits.................................... 46, 49-50, 58, 250-270

Postal savings deposits. See Deposits, classified by type of deposit.

Preferred. See Deposits, secured and preferred.

Savings and time. See Deposits, classified by type of deposit.

Secured and preferred, in insured banks placed in receivership, 1934-1950.. 13

Sources of data................................. #..............................................................229, 241

Subject to offset. See Receivership, insured banks placed in.

Uninsured deposits of insured banks placed in receivership......................... 13

Deposits in:

Banks grouped by FDIC district and State, December 30,1950.226-227, 234-235 

Banks grouped by insurance status, June 30 and December 30, 1950.. 231, 233

By type of deposit, semiannually, 1945-1950............................................ 42

June 30 and December 30, 1950...............................................................231, 233

Banks receiving financial aid from the Corporation......................... 10-14, 278-281

Commercial banks:

Banks grouped by insurance status and by FDIC district and State,

December 30, 1950............................................................................... 226-227

June 30 and December 30, 1950............................................................... 231, 233

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Deposits in:—Continued 

Insured banks:

As percentage of deposits of all banks........................................................ 7-9

As percentage of deposits of all banks, by State, December 31, 1950.. 9 

Placed in receivership or absorbed with financial aid of the Corporation

............... ................................................................................... 10-14, 278-281

Insured commercial banks:

At time of examination..............................................................................242, 244

By FDIC district and State, December 30, 1950....................................226-227

December 31, 1949, June 30 and December 30, 1950............................... 238

Insured mutual savings banks:

By FDIC district and State, December 30, 1950....................................226-227

By State, December 30, 1950..............................................................57, 226-227

December 31, 1949, June 30 and December 30, 1950............................... 238

Mutual savings banks:

By FDIC district and State, December 30, 1950....................................226-227

By State, December 30, 1950........................................................54, 57, 226-227

June 30 and December 30, 1950............................................................... 231, 233

Noninsured banks:

By FDIC district and State, December 30, 1950....................................226-227

June 30 and December 30, 1950...............................................................231, 233

Mutual savings banks, by State, December 30, 1950............................... 57

Dividends:

To depositors in insured mutual savings banks.........................58-59, 272, 274-275

To stockholders of operating insured commercial banks. See Earnings and 

expenses of insured commercial banks.

Earnings and expenses of insured commercial banks:

Amounts of principal components:

Annually, 1934-1950..................................................................................... 48

Annually, 1942-1950...................................................................................250-251

By class of bank, 1950............................................................................... 254-255

By deposit size of bank, 1950....................................................................258-259

By State, 1950............................................................................................262-271

Charge-offs and recoveries:

Amounts, 1934-1950..................................................................................... 48

Banks using reserve method of accounting for bad debt-losses on loans,

by class of bank, 1948-1950................................................................... 51

• Recoveries and profits on sale of assets...................................................... 51

~ Current operating earnings and expenses, 1950.............................................. 47-50

Income, sources and disposition of total, 1945-1950....................................... 46-47

Net profits after taxes:

Amounts........................................................... 46, 48, 52, 251, 255, 259, 263-271

Disposition of, 1934-1950............................................................................. 48, 52

Ratios of earnings items:

Rates of income on loans and securities...............................48-49, 253, 257, 261

--"" Rate of interest on time and savings deposits.................... 49-50, 253, 257, 261

Rate of net profit on total capital accounts, by State, 1950.................... 53

Rate of service charges on demand deposits............................. 49, 253, 257, 261

To current operating earnings, total assets, and total capital accounts,

1942-1950................................................................................................. 252

To current operating earnings, total assets, and total capital accounts,

by class and deposit size of bank, 1950...............................256-257, 260-261

Salaries and wages, 1950................................................................................... 50

Taxes, 1950...............................................................................................48, 49, 50, 52

Valuation reserves, transfers to and from. 51, 249-250,254-255,258-259,262-270

Earnings and expenses of insured mutual savings banks:

Amounts of principal components, 1942-1950................................................272-273

Dividends to depositors, 1943-1950..................................................................59, 272

Income from loans and securities, 1943-1950.................................................. 59, 272

Income, sources and disposition of total, 1950................................................ 58

Rates of income on loans and securities and dividends on deposits..........59,275

Ratios of earnings and expense items to current operating earnings and

total assets, 1942-1950............................................................................ 274

Salaries and wages, 1950.................................................................................... 58

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2 9 8 FEDERAL DEPOSIT INSURANCE CORPORATION

Employees:

Federal Deposit Insurance Corporation....................................................... 17-18, 23

Insured commercial banks:

Average salary, 1950............................................................................... 50

Number and compensation, 1942-1950................................................. .250-251

Number and compensation, by State, class of bank, and deposit size

of bank, December 30, 1950.................................254-255, 258-259, 262-271

Insured mutual savings banks:

Average salary, 1950..................................................................................... 58

Number and compensation, 1942-1950................................................. .272-273

Examination of insured banks (See also Assets and liabilities of insured commercial banks, examiners’ appraisal; Capital of banks):

Banks examined by the Federal Deposit Insurance Corporation, 1950 16

Changes in examination authority.................................................................... 6

Data from reports of examination...................................................... 39-41, 242-247

Definition of terms............................................................................................. 241

Powers of Federal Deposit Insurance Corporation. See Index to Federal 

Deposit Insurance Act, pages 285-290.

Expenses of banks. See Earnings and expenses of insured commercial banks; 

Earnings and expenses of insured mutual savings banks.

Expenses of the Corporation. See Federal Deposit Insurance Corporation.

Failures. See Banks and branches ceasing operations; Receivership, insured 

banks placed in.

Federal bank supervisory authorities............................ ......................................6, 15-16

Federal Deposit Insurance Act, 1950. (See also Index to Federal Deposit 

Insurance Act, pages 285-290):

Summary of provisions....................................................................................... 3-7

Text of Act........................................................................................................105-132

Federal Deposit Insurance Corporation (See also Index to Federal Deposit 

Insurance Act, pages 285-290):

Actions on applications from banks. See Applications from banks.

Assessments on insured banks............................................................ 5, 23-24, 26, 30

Assets and liabilities........................................................................................... 25-31

Audits.................................................................................................................7, 29-32

Banks examined by, and submitting reports to.......................................... 16, 21-22

Bank supervisory activities............................................................................... 15-22

Board of Directors........................................................................................... iv, v, 23

Borrowing power................................................................................................ 31

Deposit insurance fund..................... .............; • • •;....................5, 25, 26, 27, 29-30

Depositors protected by. See Banks in financial difficulties.

Disbursements for protection of depositors........................10-14, 278-279, 281-282

Districts............................................................................................................... vi, vii

Divisions............................................ ................................................................. iv, 23

Educational program for bank examiners........................................................ 17-18

Employees, number of....................................................................................... 23

Examination of banks. See Examinations of banks.

Income and expenses............................................................................... 23-26, 30-31

Insured banks receiving financial aid from. See Absorptions of insured 

banks with financial aid of the Corporation; Banks in financial 

difficulties; Receivership, insured banks placed in.

Insured deposits. See Deposits, insured and otherwise protected.

Loans to and purchase of assets from insured banks. See Absorptions of 

insured banks with financial aid of the Corporation.

Losses incurred, 1934-1950.............................. ...........••••..........11-15, 26, 28, 282

Methods of protecting depositors. See Banks in financial difficulties.

Organization and staff..................................................................................... iv, v, 23

Payments to insured depositors.......................................^..........................11-14, 278

Protection of depositors. See Banks in financial difficulties.

Purchase of assets of banks in receivership.......................................... ........... 12-14

Receiver for insured banks...................................................................... .. 12-13, 31

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Federal Deposit Insurance Corporation—Continued.

Recoveries.........................................................................................14-15, 28, 31, 282

Reports from banks......................................................................................... 5, 21-22

Reserves for losses on assets acquired.............................................................. 28

Retirement of capital stock of the Corporation.......................................... 27-28, 31

Rules and regulations. See Rules and regulations of the Federal Deposit 

Insurance Corporation.

Supervisory activities......................................................................................... 15-22

Surplus (deposit insurance fund)..................................................5, 24-25, 27, 29-30

Federal Deposit Insurance Corporation districts, banking data classified by:

Assets and liabilities of all banks, December 30, 1950......................................... 234

Assets and liabilities, examiners' appraisal, 1950............................................ ..... 246

Number and deposits of banks, by type of bank, December 30, 1950............... 226

Federal Reserve System. See Board of Governors of the Federal Reserve 

System.

Fidelity bond coverage............................................................................................. 10,17

Fixed and miscellaneous assets. See Assets and liabilities of insured commercial 

banks, examiners’ appraisal; Assets and liabilities of operating banks; 

Receivership, insured banks placed in.

History of legislation for guaranty or insurance of bank deposits:

Congressional proposals for guaranty or insurance of bank deposits:

Administrative authority for guaranty or insurance systems................... 70-72

Assessment rates for deposit insurance....................................................... 75

Assessments and other sources of funds..................................................... 73-76

Digest of bills for bank deposit guaranty or insurance, 1886-1933..........80-101

Methods of protection for depositors.......................................................... 69

Number of bills for deposit guaranty or insurance, each Congress,

1886-1933................................................................................................. 69

Participant banks......................................................................................... 70

Protection of deposits and other liabilities................................................. 71-73

Regulation and supervision of banks.......................................................... 76-78

Sponsors of bills introduced in Congress.............................................. 69, 80-101

Deposit insurance legislation, 1933-1950:

Federal legislation......................................................................................... 66

State legislation............................................................................................ 66-67

Predecessors of the Federal deposit insurance law:

Federal deposit insurance proposals, 1913-1932......................................... 65-66

Proposals for guaranty of deposits in national banks, 1886-1912.................. 65

State systems for guaranty of bank obligations................................... 63-64, 65, 67

United States Government guaranty of circulating banknotes...................... 64

Income of insured banks. See Earnings and expenses of insured banks.

Income of the Federal Deposit Insurance Corporation. See Federal Deposit 

Insurance Corporation.

Index to Federal Deposit Insurance Act..............................................................285-290

Index to laws applicable to Federal Deposit Insurance Corporation and insured

banks...................................................................................................... 291-292

Insolvent banks. See Banks in financial difficulties.

Insurance, defalcation and fidelity......................................................................... 10,17

Insured commercial banks not members of the Federal Reserve System. See

Class of bank, banking data presented by.

Insured commercial banks submitting reports to the Corporation..................... 21-22

Insured deposits. See Deposits, insured and otherwise protected.

Insured mutual savings banks. See Mutual savings banks.

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Insured State banks members of the Federal Reserve System. See Class of bank, 

banking data presented by.

Insured status, banks classified by:

Assets and liabilities of, June 30 and December 30, 1950................. ....... 230-233

Changes in number of, 1950............................................................................216-217

Deposits of, December 30, 1950......................................................................226-227

In each State, December 30, 1950.................................................................. 218-227

Mutual savings banks, number and deposits, by State, December 30, 1950.. 57

Number of, December 30, 1950......................................................................... 9

Percentage of banks insured, by State, December 31, 1950........................... 8

Interbank deposits. See Deposits, classified by type of deposit.

Interest. See Earnings and expenses of insured commercial banks; Earnings 

and expenses of insured mutual savings banks.

Interest on capital advanced to the Federal Deposit Insurance Corporation

...................................................................................................7, 25, 27-29, 31

Investments of banks. See Assets and liabilities of insured commercial banks, 

examiners’ appraisal; Assets and liabilities of operating banks; 

Securities.

Law, violations of by insured banks* See Unsafe and unsound banking practices.

Legislation relating to deposit insurance and banking:

Federal Deposit Insurance Act, 1950. See Index to Federal Deposit Insurance Act, pages 285-290.

Federal, enacted in 1950................................................................................... 22

History of deposit insurance legislation. See History of legislation for 

guaranty or insurance of bank deposits.

Laws applicable to Federal Deposit Insurance Corporation and insured 

banks. See Index to laws applicable to Federal Deposit Insurance 

Corporation and insured banks, pages 291-292.

National Bank Conversion Act. See National Bank Conversion Act.

State, enacted in 1950......................................................................................209-211

Liquidation, banks placed in, 1950......................................................................... 216

Loans by banks (See also Assets and liabilities of operating banks):

Amount and percentage distribution in all banks, by type, 1945-1950.... 38-39

Expansion, all banks, by State, 1945-1950...................................................... 38

Income and charge-offs on.............................................................................47-48, 51

Provision for losses..............................................................................41, 51, 229, 249

Rate of income on................................................... 48-49, 57, 59, 253, 257, 261, 275

Substandard:

Amounts and ratio to total loans, 1941-1950.....................................40, 242-245

Ratio to total loans, by State, 1950............................................................ 41

Loans to insolvent or hazardous insured banks by Federal Deposit Insurance 

Corporation. See Absorption of insured banks with financial aid of 

the Corporation.

Losses:

Of banks charged off. See Earnings and expenses of insured commercial 

banks; Earnings and expenses of insured mutual savings banks.

Of depositors. See Banks in financial difficulties; Receivership, insured banks 

placed in.

Of the Federal Deposit Insurance Corporation. See Federal Deposit Insurance Corporation.

Of the Reconstruction Finance Corporation on preferred stock investments

in banks................................................................................................... 15

Provision for, in banks.................................................................. 41, 51, 59, 249-275

Mergers. See Absorptions of insured banks with financial aid of the Corporation,

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Methods of tabulating bank data:

Assets and liabilities of operating banks.......................................................... 229

Deposit insurance disbursements...................................................................... 277

Earnings, expenses, profits, and dividends of insured banks.......................... 249

Examiners’ evaluation of insured commercial banks....................................... 241

Number, offices, and deposits of operating banks.........................................214-215

Mutual savings banks:

Insured:

Assets and liabilities, December 31, 1949, June 30 and December 30,

1950........................................................................................................238-239

Earnings, expenses, profits, and dividends...................................56-59, 272-275

Number and deposits, December 31, 1949, June 30 and December 30,

1950........................................................................................................238-239

Insured and noninsured:

Assets and liabilities, June 30 and December 30, 1950...........................230-233

Number and deposits, by State, December 30, 1950........................57, 226-227

Total:

Assets and liabilities, December 1950, 1949, and 1945............................. 55

Number and deposits, by State, December 30, 1950................................ 54

United States Government obligations held by, distribution by maturity,

December, 1948-1950............................................................................. 56

National Bank Conversion Act:

Consent of Federal agencies required............................................................. 155-156

Conversion in contravention with State law prohibited................................. 155

Definitions under conversion act:

State bank...................................................................................................153-154

National banking association....................................................................... 154

Insurance of deposits in conversion, merger, or consolidation:

Continuation of deposit insurance.............................................................. 156

Termination of deposit insurance of banks members of the Federal

Reserve System.....................................................................................156-157

Procedure for national bank conversion, merger, or consolidation with

State bank........................#....................................................................154-155

Separability provision of conversion act.......................................................... 157

Termination of national banking association franchise.................................. 155

National banks. See Class of bank, banking data presented by.

Net earnings of insured commercial banks. See Earnings and expenses of insured 

commercial banks.

Net profits of insured commercial banks. See Earnings and expenses of insured 

commercial banks.

Net sound capital of insured commercial banks. See Capital of banks.

New banks. See Banking offices, establishment of.

Noninsured banks. See Absorptions of operating banks; Admission to insurance; Assets and liabilities of operating banks; Capital of banks;

Class of bank, banking data presented by; Deposits; Number of 

operating banks and branches.

Number of operating banks and branches:

A.11 banks and branches *

By class of bank, FDIC district and State, December 30,1950.218-227, 234-235

By type and insurance status, December 30, 1950................................... 9

June 30, 1950................................................................................................ 231

Branches, by class of bank and State, December 30, 1950.......................... 218-225

Changes by type of change and class of bank during 1950..........................216-217

Insured banks:

Admissions to insurance................................................................. 20-21, 216-217

Branches, approval of, by Corporation...................................................... 21

December 31, 1949, June 30 and December 30, 1950............................... 239

Termination of insurance.............................................................................20,216

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Number of operating banks and branches:—Continued 

Insured commercial banks:

By FDIC district and State, December 30, 1950.............................. .. .226-227

By ratio of total capital accounts to total assets, December 30, 1950.. 44

Examined in 1941-1950................................................................................ 243

Examined in 1950, by amount of deposits................................................. 245

Examined in 1950, by FDIC district and State...................................... 246-247

Operating throughout 1950, by amount of deposits................................259, 261

Using reserve method of accounting for bad-debt losses on loans, by

class of bank, 1948-1950......................................................................... 51

Mutual savings banks. See Mutual savings banks.

Noninsured banks:

By class of bank, FDIC district and State, December 30, 1950............226-227

Failures during 1950..................................................................................... 277

Unit banks, by class of bank and State, December 30, 1950.......................218-225

Officers and employees of the Federal Deposit Insurance Corporation......17-18, 23

Officers of insured banks. See Employees.

Operating banks. See Number of operating banks and branches.

Payments to depositors in closed insured banks. See Receivership, insured 

banks placed in; and Index to Federal Deposit Insurance Act, 

pages 285-290.

Possessions, banks and branches located in:

Assets and liabilities, December 30, 1950...................................................... 234-235

Deposits of, December 30, 1950......................................................................226-227

Earnings, expenses, profits, and dividends, 1950...........................................262-263

Number of, December 30, 1950......................................................................... 225

Postal savings deposits. See Deposits, classified by type of deposit.

Preferred deposits. See Deposits, secured and preferred.

Profits. See Earnings and expenses of insured commercial banks.

Protection of depositors. See Absorptions of insured banks with financial aid of 

the Corporation; Banks in financial difficulties; Deposits, insured 

and otherwise protected.

Public funds. See Deposits, classified by type of deposit.

Publications of the Corporation.............................................................................. 21-22

Purchase of bank assets by Corporation. See Assets purchased by the Federal 

Deposit Insurance Corporation.

Receivership, insured banks placed in (See also Banks in financial difficulties):

Activities of the Corporation as receiver of.................................................... 13

Assets and liabilities of, at dates of suspension, cumulative, 1934-1950.... 280

Depositors’ losses................................................................................................ 11-14

Deposits:

Amounts, 1934-1950..............................................................................12-13, 278

Insured, paid and unpaid by December 30, 1950...................................... 13

Secured, preferred, and subject to offset.................................................... 13

Disbursements by the Corporation.....................................11-15, 278-279, 281-282

Losses by the Corporation on disbursements.......................................12-15, 28, 282

Number of banks..........................................................................11-12, 278-279, 282

Payments to depositors...................................................................................... 11-14

Recoveries by the Corporation on disbursements...............................13-15, 28, 282

Sources of data.................................................................................................... 277

Reconstruction Finance Corporation, capital of insured banks held by:

Amount outstanding........................................................................................... 17

Decreases in RFC and other preferred capital.................................... 16-17, 46

Losses on.............................................................................................................. 15

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Recoveries:

By banks on assets charged off. See Earnings and expenses of insured commercial banks; Earnings and expenses of insured mutual savings

GENERAL IN D EX 303

banks.

By the Corporation on disbursements...........................................14-15, 28, 31, 282

Reports from banks.................................................................................................. 21-22

Reserves:

For bad-debt losses on loans, ruling of Commissioner of Internal Revenue

.............................................................................................. .....5 1 , 229, 249

In bank assets and liabilities. See Assets and liabilities of operating banks.

Of Federal Deposit Insurance Corporation, for losses on assets acquired.. 28 

Surplus (deposit insurance fund) of the Corporation..................24-25, 27, 29-30

Rules and regulations of the Federal Deposit Insurance Corporation:

Advertising of insurance of deposits............................................................... 193-197

Applications from banks for changes in situation......................................... 159-163

Assessment deductions and payments............................................................190-193

Authority of the Corporation to issue rules and regulations....................... 158, 189

Confidential information concerning operations and records of banks... .185-188

Deposit obligations defined...............................................................189-190,197-198

Extension of corporate powers of banks........................................................ 207-208

Forms, instructions, and reports..................................................................... 164-169

Formulation and promulgation of rules and regulations...............................158-159

Insurance of trust funds..................................................................................... 206

Ownership of deposits not on bank records....................................................204-206

Payment of insured deposits........................................................................... 169-170

Payment of interest on deposits......................................................................197-204

Powers not consistent with purposes of Federal Deposit Insurance Act. . . . 207

Receiverships and liquidations........................................................................ 170-173

Termination of insured status of banks by the Corporation.. ..................... 178-185

Voluntary termination of insured status by an insured bank....................... 173-177

Salaries and wages:

Federal Deposit Insurance Corporation........................................................... 25

Insured banks. See Earnings and expenses of insured commercial banks; 

Earnings and expenses of insured mutual savings banks.

Savings and time deposits. See Deposits, classified by type of deposit.

Secured and preferred deposits. See Deposits, secured and preferred; Receivership, insured banks placed in.

Securities (See also Assets and liabilities of operating banks):

Charge-offs on securities held by insured banks.............................................51, 59

Held by Federal Deposit Insurance Corporation....................................... 25, 27, 30

Held by insured banks placed in receivership or absorbed with financial aid

of the Corporation, 1934-1950............................................................... 280

Held by insured commercial banks. See Assets and liabilities of insured 

commercial banks, examiners’ appraisal.

Held by operating banks. See Assets and liabilities of operating banks.

Interest on securities held by banks. See Earnings and expenses of insured 

commercial banks; Earnings and expenses of insured mutual savings 

banks.

Profits on securities sold by insured banks. See Earnings and expenses of 

insured commercial banks; Earnings and expenses of insured mutual 

savings banks.

United States Government obligations, held by:

Federal Deposit Insurance Corporation................................................ 25, 27, 30

Insured banks placed in receivership or absorbed with financial aid of

the Corporation, 1934-1950.................................................................... 280

Insured commercial banks, amounts and percentage distribution by

maturities, December, 1941-1950.......................................................... 37

Mutual savings banks, amounts and percentage distribution by maturities, December, 1948-1950................................................................ 56

Size of banks, banks classified by. See Deposits, amount of, banks grouped by.

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304 FEDERAL DEPOSIT INSURANCE CORPORATION

Sources of data........................................................................... 21-22, 229, 241, 249, 277

State and local government obligations. See Assets and liabilities of operating 

banks.

State bank supervisory authorities:

Data obtained from............................................................................................ 22, 229

State legislation regarding................................................................................ 209

State, banking data classified by:

Assets and liabilities of insured commercial banks examined in 1950... .246-247

Assets and liabilities of operating banks, December 30, 1950......................234-235

Capital, ratio to total assets, insured commercial banks, December 30, 1950 45 

Capital, ratio to assets other than cash and U. S. Government obligations,

insured commercial banks, December 30, 1950................................... 45

Deposits, December 30, 1950:

Commercial banks, insured and noninsured.............................................226-227

Mutual savings banks, December 30, 1950............. ................................. 54, 57

Mutual savings banks, insured and noninsured, December 30,1950.. 57, 226-227

Disbursements by the Corporation, cumulative, 1934-1950.........................278-279

Earnings and expenses of insured commercial banks, 1950..........................262-271

Loans of all banks, expansion of, 1945-1950.................................................... 38

Net earnings and net profits of insured commercial banks, rates of, 1950. .262-271 

Net profits after taxes as a proportion of total capital accounts, 1950.... 53

Number and deposits of mutual savings banks, December 30, 1950. ........... 54, 57

Number of operating banks or offices, December 30, 1950:

All banking offices, by class of bank and type of office......................... 218-225

Commercial banks, insured and noninsured............................................ 218-227

Mutual savings banks, insured and noninsured.................................57, 218-227

Proportion of banks insured, December 31, 1950...............................8, 57, 218-225

Proportion of deposits in all banks held by insured banks, December 31, 1950 9 

Ratio of substandard loans to total loans, insured commercial banks, 1950.. 41 

Ratio of valuation reserves to total loans, insured commercial banks,

December 30, 1950.................................................................................. 41

State banking legislation enacted in 1950............................................................ 209-211

State banks members of the Federal Reserve System. See Class of bank, banking 

data presented by.

State banks not members of the Federal Reserve System. See Class of bank, 

banking data presented by.

Stockholders of banks, net profits available for. See Earnings and expenses of 

insured commercial banks.

Substandard assets of insured commercial banks. (See also Assets and liabilities 

of insured commercial banks, examiners’ appraisal):

Amounts and percentage, by type of asset, 1939-1950................................... 40

Changes in recent years..................................................................................... 39-40

Fixed and miscellaneous............................................................................40, 242, 244

Loans...........................................................................................................40, 242, 244

Ratio of substandard loans to total loans, by State, 1950............................. 41

Ratios to capital accounts, by State, 1950.................................................... 246-247

Relative to total assets........................................................................39-40, 243, 245

Securities.................................................................................................... 40, 242, 244

Supervision. See Bank supervision.

Suspensions. See Banks and branches ceasing operations; Receivership, insured 

banks placed in.

Taxes paid by insured banks. See Earnings and expenses of insured commercial 

banks; Earnings and expenses of insured mutual savings banks.

Terminations of insurance for unsafe and unsound practices.............................. 20

Time and savings deposits. See Deposits, classified by type of deposit.

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Trust companies:

Classification o f................................................................................................ 214-215

Noninsured, not engaged in deposit banking.................................216-227, 230-233

Type of bank, banking data distributed by:

Assets and liabilities......................................................................... 230-233, 236-239

Number of banks and total deposits, by FDIC district and State, December

30, 1950..................................................................................................226-227

Unit banks. See Number of operating banks and branches.

United States Government obligations. See Assets and liabilities of insured 

commercial banks, examiners’ appraisal; Assets and liabilities of 

operating banks; Securities.

United States Treasury Department, Commissioner of Internal Revenue,

Ruling on reserves for bad-debt losses on loans..........................51, 229, 249

Unsafe and unsound banking practices:

Actions of the Corporation................................................................................ 18-20

Number of banks cited...................................................................................... 19-20

Tj^pe of practice or violation............................................................................. 19

Unsecured deposits. See Receivership, insured banks placed in.

Valuation reserves...........................................................................51, 229, 232, 237, 249

Violations of law or regulations, banks charged with. See Unsafe and unsound 

banking practices.

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